Document:

Exhibit 4.3B

                             SUPPLEMENTAL INDENTURE

            This  Supplemental  Indenture,  dated as of  March  25,  2004  (this
"Supplemental  Indenture"),  is made by and  among  The  Old  Evangeline  Downs,
L.L.C.,  a  Louisiana  limited  liability  company  (the  "Company"),   The  Old
Evangeline  Downs Capital Corp., a Delaware  corporation and a subsidiary of the
Company ("OED Corp." and together  with the Company,  the  "Issuers"),  and U.S.
Bank National  Association,  as trustee  under the Indenture  referred to herein
(the "Trustee").

                             W I T N E S S E T H:

            WHEREAS,  the Issuers have heretofore  executed and delivered to the
Trustee an indenture, dated as of February 25, 2003 (the "Indenture"), providing
for the  issuance  of an  aggregate  principal  amount of $123.2  million of 13%
Senior Secured Notes due 2010 with Contingent Interest (the "Notes");

            WHEREAS,  the  Issuers  desire to amend  certain  provisions  of the
Indenture as set forth herein, and they have received the consent of the Holders
of a majority in principal  amount of the Notes  currently  outstanding  to such
amendments;

            WHEREAS,  Section 9.2 of the  Indenture  permits the Indenture to be
amended by a supplemental  indenture with the consent of the Holders of at least
a majority  in  principal  amount of the Notes  outstanding,  subject to certain
enumerated exceptions;

            WHEREAS,  the parties  hereto are  entering  into this  Supplemental
Indenture to amend or, as the case may be, delete certain  provisions  contained
in Articles 4, 5, 6 and 10 of the Indenture (the "Amendments");

            WHEREAS, in addition,  the Amendments will (i) delete all "Events of
Default"  other than the  failure to pay  principal,  premium or interest on the
Notes,  (ii) delete those  definitions  from the Indenture that are used only in
provisions  that are  eliminated as a result of the  Amendments and (iii) revise
cross-references  to  provisions  in the  Indenture  that have been deleted as a
result of the Amendments;

            WHEREAS,  pursuant to Section 9.2 of the  Indenture,  the Trustee is
authorized to execute and deliver this Supplemental Indenture; and

            WHEREAS, all conditions set forth in the Indenture for the execution
and delivery of this Supplemental Indenture have been complied with.

            NOW THEREFORE,  in consideration of the foregoing and for other good
and valuable  consideration,  the receipt of which is hereby  acknowledged,  the
Issuers  and the  Trustee  mutually  covenant  and agree for the  benefit of the
Holders of the Notes as follows:

      SECTION 1.  Capitalized Terms.  Capitalized terms used herein without
definition shall have the respective meanings ascribed to them in the
Indenture.

      SECTION 2. Removal of Certain  Provisions and Defined Terms.  The texts of
Article V, Sections 4.3 - 4.23,  4.25,  4.26, and 10.1 - 10.7,  and  subsections
6.1(c)-(l) of the Indenture are

<PAGE>

hereby deleted in their entireties  together with any references  thereto in the
Indenture and are replaced in each case with the phrase "Intentionally Omitted."
The  definitions  of any and all terms that are  defined  in Section  1.1 of the
Indenture but used only in one or more of the Articles or Section  referenced in
the  immediately  preceding  sentence  of this  paragraph  are  deleted in their
entireties.

      SECTION 3.  Operation of  Amendments.  Upon the  execution and delivery of
this Supplemental  Indenture by the parties hereto, this Supplemental  Indenture
will become  operative  but the  Amendments  will not become  effective  until a
majority in outstanding  principal  amount of the Notes are validly tendered and
accepted  pursuant to and in  accordance  with the terms and  conditions  of the
tender offer and consent  solicitation as set forth in the Offer to Purchase and
Consent Solicitation Statement dated March 9, 2004 (the "Statement").

      SECTION 4.  Miscellaneous.

                  Section 4.1 Incorporation of the Indenture. All the provisions
of this Supplemental Indenture shall be deemed to be incorporated in, and made a
part of, the Indenture;  and the Indenture,  as supplemented and amended by this
Supplemental  Indenture,  shall be read, taken and construed as one and the same
instrument.

                  Section  4.2  Application  of  Supplemental   Indenture.   The
provisions and benefits of this  Supplemental  Indenture shall be effective with
respect to the Notes.

                  Section 4.3  Counterparts.  The Supplemental  Indenture may be
executed  in any  number of  counterparts,  each of which so  executed  shall be
deemed to be an original,  but all such counterparts  shall together  constitute
but one and the same instrument.

                  Section 4.4  Successors  and Assigns.  All  agreements in this
Supplemental  Indenture  by each of the Issuers  shall bind its  successors  and
assigns, whether so expressed or not.

                  Section 4.5 Severability Clause. In case any provision in this
Supplemental Indenture shall be declared invalid,  illegal or unenforceable by a
court of competent  jurisdiction,  the validity,  legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

                  Section 4.6  Benefits of  Supplemental  Indenture.  Nothing in
this Supplemental Indenture, express or implied, shall give to any person, other
than the parties  hereto and their  successors  hereunder  and the Holders,  any
benefit or any legal or equitable right, remedy or claim under this Supplemental
Indenture.

                  Section 4.7  Regarding  the Trustee.  The Trustee shall not be
responsible  for  the  correctness  of  the  recitals   herein,   and  makes  no
representation  as to the  validity  or the  sufficiency  of  this  Supplemental
Indenture. The Trustee shall, in connection with this Supplemental Indenture, be
entitled to all of the benefits of all of the rights, privileges, immunities and
indemnities of the Trustee provided for in the Indenture.

                                       2
<PAGE>

      SECTION 5. NEW YORK LAW TO GOVERN.  THE  INTERNAL  LAW OF THE STATE OF NEW
YORK  SHALL  GOVERN  AND  BE  USED  TO  CONSTRUE  THIS  SUPPLEMENTAL  INDENTURE,
INCLUDING,  WITHOUT  LIMITATION,  SECTIONS  5-1401  AND  5-1402  OF THE NEW YORK
GENERAL OBLIGATIONS LAW AND NEW YORK CIVIL PRACTICE LAWS AND RULES 327(B).

      SECTION  6.  Effect of  Headings.  The  Section  headings  herein  are for
convenience only and shall not affect the construction hereof.

                                       3
<PAGE>

      IN WITNESS  WHEREOF,  the parties  hereto  have  caused this  Supplemental
Indenture to be duly executed as of the day first written above.

                                    THE OLD EVANGELINE DOWNS, L.L.C.

                                    By:/s/NATALIE A. SCHRAMM
                                       ------------------------------
                                    Name:  Natalie A. Schramm
                                    Title: Chief Financial Officer

                                    THE OLD EVANGELINE DOWNS CAPITAL CORP.

                                    By:/s/NATALIE A. SCHRAMM
                                       -----------------------------------
                                    Name:  Natalie A. Schramm
                                    Title: Chief Financial Officer

<PAGE>

                                    U.S. BANK NATIONAL ASSOCIATION, AS TRUSTEE

                                    By:/s/BENJAMIN J. KRUEGER
                                       ---------------------------------------
                                       Name:  Benjamin J. Krueger
                                       Title: Trust OfficerEXHIBIT 4.4A

================================================================================

                                 DIAMOND JO, LLC

                                       AND

                     THE OLD EVANGELINE DOWNS CAPITAL CORP.

                                  (as Issuers)

                                  $233,000,000
                      8 3/4% Senior Secured Notes due 2012

                                  -------------

                                    INDENTURE

                           Dated as of April 16, 2004

                                  -------------

                         U.S. BANK NATIONAL ASSOCIATION

                                  (as Trustee)

================================================================================

<PAGE>

                                TABLE OF CONTENTS

                                                                            PAGE
                                                                            ----

ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE...........................1
   SECTION 1.1    DEFINITIONS..................................................1
   SECTION 1.2    OTHER DEFINITIONS...........................................33
   SECTION 1.3    INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT...........34
   SECTION 1.4    RULES OF CONSTRUCTION.......................................35

ARTICLE II THE NOTES..........................................................35
   SECTION 2.1    FORM AND DATING.............................................35
   SECTION 2.2    EXECUTION AND AUTHENTICATION................................36
   SECTION 2.3    REGISTRAR, PAYING AGENT AND DEPOSITARY......................36
   SECTION 2.4    PAYING AGENT TO HOLD MONEY IN TRUST.........................37
   SECTION 2.5    HOLDER LISTS................................................37
   SECTION 2.6    TRANSFER AND EXCHANGE.......................................37
   SECTION 2.7    REPLACEMENT NOTES...........................................52
   SECTION 2.8    OUTSTANDING NOTES...........................................52
   SECTION 2.9    TREASURY NOTES..............................................53
   SECTION 2.10   TEMPORARY NOTES.............................................53
   SECTION 2.11   CANCELLATION................................................53
   SECTION 2.12   DEFAULTED INTEREST..........................................53
   SECTION 2.13   CUSIP NUMBERS...............................................54
   SECTION 2.14   ISSUANCE OF ADDITIONAL NOTES................................55

ARTICLE III REDEMPTION........................................................55
   SECTION 3.1    NOTICES TO TRUSTEE..........................................55
   SECTION 3.2    SELECTION OF NOTES TO BE REDEEMED...........................55
   SECTION 3.3    NOTICE OF REDEMPTION........................................55
   SECTION 3.4    EFFECT OF NOTICE OF REDEMPTION..............................56
   SECTION 3.5    DEPOSIT OF REDEMPTION PRICE.................................57
   SECTION 3.6    NOTES REDEEMED IN PART......................................57
   SECTION 3.7    OPTIONAL REDEMPTION.........................................57
   SECTION 3.8    REGULATORY REDEMPTION.......................................58
   SECTION 3.9    NO MANDATORY REDEMPTION.....................................58

ARTICLE IV COVENANTS..........................................................59
   SECTION 4.1    PAYMENT OF NOTES............................................59
   SECTION 4.2    MAINTENANCE OF OFFICE OR AGENCY.............................59
   SECTION 4.3    SEC REPORTS AND REPORTS TO HOLDERS..........................60
   SECTION 4.4    COMPLIANCE CERTIFICATE......................................60
   SECTION 4.5    TAXES.......................................................60
   SECTION 4.6    STAY, EXTENSION AND USURY LAWS..............................61
   SECTION 4.7    LIMITATION ON INCURRENCE OF ADDITIONAL INDEBTEDNESS
                  AND DISQUALIFIED EQUITY INTERESTS...........................61
   SECTION 4.8    LIMITATION ON LIENS.........................................64

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                                                                            PAGE
                                                                            ----

   SECTION 4.9    LIMITATION ON RESTRICTED PAYMENTS...........................64
   SECTION 4.10   LIMITATION ON RESTRICTIONS ON SUBSIDIARY DIVIDENDS..........67
   SECTION 4.11   ADDITIONAL COLLATERAL.......................................69
   SECTION 4.12   LIMITATION ON TRANSACTIONS WITH AFFILIATES..................69
   SECTION 4.13   LIMITATION ON ASSET SALES...................................70
   SECTION 4.14   RESTRICTION ON SALE AND ISSUANCE OF SUBSIDIARY STOCK........72
   SECTION 4.15   REPURCHASE UPON A CHANGE OF CONTROL.........................73
   SECTION 4.16   SUBSIDIARY GUARANTORS.......................................74
   SECTION 4.17   LIMITATION ON STATUS AS INVESTMENT COMPANY..................74
   SECTION 4.18   MAINTENANCE OF PROPERTIES AND INSURANCE.....................74
   SECTION 4.19   CORPORATE EXISTENCE.........................................75
   SECTION 4.20   RESTRICTIONS ON ACTIVITIES OF CAPITAL.......................75
   SECTION 4.21   ENTITY CLASSIFICATION.......................................75
   SECTION 4.22   RULE 144A INFORMATION.......................................75
   SECTION 4.23   REORGANIZATION TRANSACTIONS.................................76

ARTICLE V SUCCESSORS..........................................................76
   SECTION 5.1    MERGER, CONSOLIDATION OR SALE OF ASSETS.....................76
   SECTION 5.2    SUCCESSOR CORPORATION SUBSTITUTED...........................77

ARTICLE VI DEFAULTS AND REMEDIES..............................................77
   SECTION 6.1    EVENTS OF DEFAULT...........................................77
   SECTION 6.2    ACCELERATION................................................80
   SECTION 6.3    OTHER REMEDIES..............................................80
   SECTION 6.4    WAIVER OF DEFAULTS..........................................81
   SECTION 6.5    CONTROL BY MAJORITY.........................................81
   SECTION 6.6    LIMITATION ON SUITS.........................................81
   SECTION 6.7    RIGHTS OF HOLDERS OF NOTES TO RECEIVE PAYMENT...............82
   SECTION 6.8    COLLECTION SUIT BY TRUSTEE..................................82
   SECTION 6.9    TRUSTEE MAY FILE PROOFS OF CLAIM............................82
   SECTION 6.10   PRIORITIES..................................................83
   SECTION 6.11   UNDERTAKING FOR COSTS.......................................83

ARTICLE VII TRUSTEE...........................................................84
   SECTION 7.1    DUTIES OF TRUSTEE...........................................84
   SECTION 7.2    RIGHTS OF TRUSTEE...........................................85
   SECTION 7.3    INDIVIDUAL RIGHTS OF TRUSTEE................................86
   SECTION 7.4    TRUSTEE'S DISCLAIMER........................................86
   SECTION 7.5    NOTICE OF DEFAULTS..........................................86
   SECTION 7.6    REPORTS BY TRUSTEE TO HOLDERS OF THE NOTES..................87
   SECTION 7.7    COMPENSATION AND INDEMNITY..................................88
   SECTION 7.8    REPLACEMENT OF TRUSTEE......................................89
   SECTION 7.9    SUCCESSOR TRUSTEE BY MERGER, ETC............................90
   SECTION 7.10   ELIGIBILITY; DISQUALIFICATION...............................90
   SECTION 7.11   PREFERENTIAL COLLECTION OF CLAIMS AGAINST ISSUERS...........90

                                       ii
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                                                                            PAGE
                                                                            ----

ARTICLE VIII LEGAL DEFEASANCE AND COVENANT DEFEASANCE.........................90
   SECTION 8.1    OPTION TO EFFECT LEGAL DEFEASANCE OR COVENANT DEFEASANCE....90
   SECTION 8.2    LEGAL DEFEASANCE AND DISCHARGE..............................90
   SECTION 8.3    COVENANT DEFEASANCE.........................................91
   SECTION 8.4    CONDITIONS TO LEGAL OR COVENANT DEFEASANCE..................92
   SECTION 8.5    DEPOSITED MONEY AND GOVERNMENT SECURITIES TO BE HELD IN
                  TRUST; OTHER MISCELLANEOUS PROVISIONS.......................93
   SECTION 8.6    REPAYMENT TO ISSUERS........................................93
   SECTION 8.7    REINSTATEMENT...............................................94
   SECTION 8.8    SATISFACTION AND DISCHARGE..................................94

ARTICLE IX AMENDMENT, SUPPLEMENT AND WAIVER...................................95
   SECTION 9.1    WITHOUT CONSENT OF HOLDERS OF NOTES.........................95
   SECTION 9.2    WITH CONSENT OF HOLDERS OF NOTES............................96
   SECTION 9.3    COMPLIANCE WITH TRUST INDENTURE ACT.........................98
   SECTION 9.4    REVOCATION AND EFFECT OF CONSENTS...........................98
   SECTION 9.5    NOTATION ON OR EXCHANGE OF NOTES............................99
   SECTION 9.6    TRUSTEE TO SIGN AMENDMENTS, ETC.............................99

ARTICLE X COLLATERAL AND SECURITY............................................100
   SECTION 10.1   SECURITY DOCUMENTS; SECURITY INTERESTS.....................100
   SECTION 10.2   FURTHER ASSURANCES AND SECURITY............................102
   SECTION 10.3   OPINIONS...................................................102
   SECTION 10.4   RELEASE OF COLLATERAL......................................103
   SECTION 10.5   CERTIFICATES OF THE ISSUERS................................104
   SECTION 10.6   AUTHORIZATION OF ACTIONS TO BE TAKEN BY THE TRUSTEE UNDER
                  THE SECURITY DOCUMENTS AND THE INTERCREDITOR AGREEMENT.....104
   SECTION 10.7   AUTHORIZATION OF RECEIPT OF FUNDS BY THE TRUSTEE UNDER
                  THE SECURITY DOCUMENTS AND THE INTERCREDITOR AGREEMENT.....104
   SECTION 10.8   INTERCREDITOR AGREEMENT....................................105

ARTICLE XI SUBSIDIARY GUARANTIES.............................................105
   SECTION 11.1   SUBSIDIARY GUARANTIES......................................105
   SECTION 11.2   EXECUTION AND DELIVERY OF SUBSIDIARY GUARANTIES............107
   SECTION 11.3   SUBSIDIARY GUARANTORS MAY CONSOLIDATE, ETC., ON CERTAIN
                  TERMS......................................................107
   SECTION 11.4   SUBSIDIARY GUARANTY BY FUTURE RESTRICTED SUBSIDIARIES......108
   SECTION 11.5   RELEASE OF SUBSIDIARY GUARANTORS...........................109
   SECTION 11.6   LIMITATION OF SUBSIDIARY GUARANTOR'S LIABILITY; CERTAIN
                  BANKRUPTCY EVENTS..........................................109
   SECTION 11.7   APPLICATION OF CERTAIN TERMS AND PROVISIONS TO THE
                  SUBSIDIARY GUARANTORS......................................110

                                      iii
<PAGE>

                                                                            PAGE
                                                                            ----

ARTICLE XII MISCELLANEOUS....................................................111
   SECTION 12.1   TRUST INDENTURE ACT CONTROLS...............................111
   SECTION 12.2   NOTICES....................................................111
   SECTION 12.3   COMMUNICATION BY HOLDERS OF NOTES WITH OTHER HOLDERS OF
                  NOTES......................................................112
   SECTION 12.4   CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT.........112
   SECTION 12.5   STATEMENTS REQUIRED IN CERTIFICATE OR OPINION..............113
   SECTION 12.6   RULES BY TRUSTEE AND AGENTS................................113
   SECTION 12.7   LEGAL HOLIDAYS.............................................113
   SECTION 12.8   NO PERSONAL LIABILITY OF DIRECTORS, OFFICERS, EMPLOYEES
                  AND STOCKHOLDERS...........................................113
   SECTION 12.9   GOVERNING LAW AND SUBMISSION TO JURISDICTION...............114
   SECTION 12.10  NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS..............114
   SECTION 12.11  SUCCESSORS.................................................115
   SECTION 12.12  SEVERABILITY...............................................115
   SECTION 12.13  COUNTERPART ORIGINALS......................................115
   SECTION 12.14  TABLE OF CONTENTS, HEADINGS, ETC...........................115

                                       iv
<PAGE>

                             CROSS-REFERENCE TABLE*

TIA SECTION                                              INDENTURE SECTION
-----------                                              -----------------
310(a)(1)........................................................7.10
(a)(2)...........................................................7.10
(a)(3)...........................................................N.A.
(a)(4)...........................................................N.A.
(a)(5)...........................................................7.8; 7.10
(b)..............................................................7.8; 7.10; 12.2
(c)..............................................................N.A.
311(a)...........................................................7.11
(b)..............................................................7.11
(c)..............................................................N.A.
312(a)...........................................................2.5
(b)..............................................................12.3
(c)..............................................................12.3
313(a)...........................................................7.6
(b)(1)...........................................................N.A.
(b)(2)...........................................................7.6, 7.7
(c)..............................................................7.5, 7.6; 12.2
(d)..............................................................7.6
314(a)...........................................................4.3; 4.4; 12.2
(b)..............................................................N.A.
(c)(1)...........................................................12.4
(c)(2)...........................................................12.4
(c)(3)...........................................................N.A.
(d)..............................................................10.5
(e)..............................................................12.5
(f)..............................................................N.A.
315(a)...........................................................7.1(b)
(b)..............................................................7.5; 12.2
(c)..............................................................7.1(a)
(d)..............................................................7.1(c)
(e)..............................................................6.11
316(a)(last sentence)............................................2.9
(a)(1)(A)........................................................6.5
(a)(1)(B)........................................................6.4
(a)(2)...........................................................N.A.
(b)..............................................................6.7
(c)..............................................................6.3
317(a)(1)........................................................6.8
(a)(2)...........................................................6.9
(b)..............................................................2.4
318(a)...........................................................12.1
(c)..............................................................12.1

-------------
N.A. means not applicable

------------------------
*     This  Cross-Reference  table shall not, for any  purpose,  be deemed to be
      part of this Indenture.

                                       v
<PAGE>

      INDENTURE,  dated as of April 16,  2004,  by and among  Diamond Jo, LLC, a
Delaware limited  liability  company,  The Old Evangeline Downs Capital Corp., a
Delaware  corporation,  the Subsidiary  Guarantors (as defined herein), and U.S.
Bank National Association, as trustee.

      Each  party  agrees as follows  for the  benefit of each other and for the
equal and ratable  benefit of the Holders of the 8 3/4% Series A Senior  Secured
Notes due 2012 (the  "Series A Notes")  and the 8 3/4%  Series B Senior  Secured
Notes due 2012 (the "Series B Notes" and,  together with the Series A Notes, the
"Notes"):

                                    ARTICLE I
                          DEFINITIONS AND INCORPORATION
                                  BY REFERENCE

SECTION 1.1  DEFINITIONS

      "2010  Referendum"  means  a  gaming  reauthorization   referendum  to  be
submitted to the Dubuque County,  Iowa electorate in the general  election to be
held in 2010.

      "144A  Global  Note"  means one or more Global  Notes  bearing the Private
Placement  Legend,  that shall be issued in an aggregate amount of denominations
equal in total to the outstanding principal amount of the Notes sold in reliance
on Rule 144A.

      "501  Global  Note"  means one or more  Global  Notes  bearing the Private
Placement  Legend that shall be issued in an aggregate  amount of  denominations
equal  in  total  to the  outstanding  principal  amount  of the  Notes  sold to
institutional  "accredited investors" within the meaning of Rule 501(a)(1), (2),
(3), or (7) of the Securities Act.

      "Accrued Bankruptcy Interest" means, with respect to any Indebtedness, all
interest  accruing  thereon  after the  filing of a petition  by or against  the
Issuers or any of the Restricted Subsidiaries or any parent under any Bankruptcy
Law, in accordance  with and at the rate (including any rate applicable upon any
default or event of default,  to the extent  lawful)  specified in the documents
evidencing  or governing  such  Indebtedness,  whether or not the claim for such
interest is allowed as a claim after such  filing in any  proceeding  under such
Bankruptcy Law.

      "Acquired Debt" means  Indebtedness of a Person or any of its subsidiaries
existing  at the time  such  Person  is  merged  with or into the  Company  or a
Restricted  Subsidiary,  becomes a Restricted Subsidiary or Indebtedness assumed
in  connection  with the  acquisition  of assets  from such  Person  other  than
Indebtedness  incurred in connection with, or in  contemplation  of, such Person
merging  with or into the  Company  or a  Restricted  Subsidiary  or  becoming a
Restricted Subsidiary or such acquisition of assets.

      "Additional  Notes" means  additional  Notes which may be issued after the
Issue Date pursuant to this Indenture  (other than pursuant to an Exchange Offer
or  otherwise in exchange  for or in  replacement  of  outstanding  Notes).  All
references herein to "Notes" shall be deemed to include Additional Notes.

<PAGE>

      "Affiliate"  of any  specified  Person means any other Person  directly or
indirectly  controlling  or  controlled  by or under  direct or indirect  common
control with such specified Person.  For purposes of this definition,  "control"
(including,  with correlative meanings, the terms "controlling," "controlled by"
and "under common control with"), as used with respect to any Person, shall mean
(a) the possession,  directly or indirectly, of the power to direct or cause the
direction  of the  management  or policies of such Person,  whether  through the
ownership of voting  securities,  by  agreement  or otherwise or (b)  beneficial
ownership   of  10%  or  more  of  the  voting   securities   of  such   Person.
Notwithstanding  the foregoing,  the Initial Purchaser shall be deemed not to be
an Affiliate of PGP, the Company or any Restricted Subsidiary.

      "Agent" means any Registrar, Paying Agent or co-registrar.

      "Applicable Procedures" means, with respect to any transfer or exchange of
or for beneficial  interests in any Global Note, the rules and procedures of the
Depositary, Euroclear and Clearstream that apply to such transfer or exchange at
the relevant time.

      "Applicable Capital Gain Tax Rate" means a rate equal to the sum of:

      (a) the highest marginal Federal income tax rate applicable to net capital
gain of an individual who is a citizen of the United States, plus

      (b) (x) the  greatest  of (i) an  amount  equal to the sum of the  highest
marginal  state and local income tax rates  applicable to net capital gain of an
individual who is a resident of the State of California, (ii) an amount equal to
the sum of the highest  marginal state and local income tax rates  applicable to
net capital gain of an  individual  who is a resident of the State of Louisiana,
and (iii) an amount  equal to the sum of the  highest  marginal  state and local
income  tax rates  applicable  to net  capital  gain of an  individual  who is a
resident of the State of Iowa,  multiplied  by (y) a factor equal to 1 minus the
highest marginal Federal income tax rate described in clause (a) above.

      "Applicable Income Tax Rate" means a rate equal to the sum of:

      (a) the highest marginal Federal ordinary income tax rate applicable to an
individual who is a citizen of the United States, plus

      (b) (x) the  greatest  of (i) an  amount  equal to the sum of the  highest
marginal state and local ordinary  income tax rates  applicable to an individual
who is a resident of the State of California, (ii) an amount equal to the sum of
the highest  marginal state and local ordinary income tax rates applicable to an
individual  who is a  resident  of the State of  Louisiana,  and (iii) an amount
equal to the sum of the  highest  marginal  state  and  local  income  tax rates
applicable to net capital gain of an  individual  who is a resident of the State
of Iowa,  multiplied  by (y) a  factor  equal to 1 minus  the  highest  marginal
Federal income tax rate described in clause (a) above.

                                       2
<PAGE>

      "Asset Sale" means:

      (i) any direct or indirect sale, assignment,  transfer, lease, conveyance,
or  other  disposition  (including,  without  limitation,  by way of  merger  or
consolidation) (collectively,  a "transfer"),  other than in the ordinary course
of business, of any assets of the Company or any Restricted Subsidiary; or

      (ii) direct or indirect  issuance or sale of any Equity  Interests  of any
Restricted Subsidiary (other than directors' qualifying shares), in each case to
any Person (other than the Company or a Restricted Subsidiary).

      For purposes of this definition,  (a) any series of transactions  that are
part of a common  plan  shall be  deemed  a single  Asset  Sale and (b) the term
"Asset Sale" shall not include:

      (1) any  exchange  of gaming  equipment  or  furniture,  fixtures or other
equipment for replacement items in the ordinary course of business,

      (2) any  transaction  or series of  transactions  that have a fair  market
value (or result in gross proceeds) of less than $1,000,000,

      (3) any  disposition  of all or  substantially  all of the  assets  of the
Company that is governed  under and complies  with the terms of Section 4.15 and
Article V,

      (4) any Investments that are not prohibited by Section 4.9,

      (5) (A) any transfer of inventory, equipment,  receivables or other assets
acquired  and held for  resale in the  ordinary  course of  business  or (B) any
transfer or liquidation of Cash Equivalents,

      (6) any transfer of damaged,  worn out or other obsolete personal property
so long as such property is no longer  necessary  for the proper  conduct of the
business of the Company or such Restricted Subsidiary, as applicable,

      (7) any grant of any Liens not otherwise prohibited by this Indenture, or

      (8) any  transfer of  properties  or assets by the Company or a Restricted
Subsidiary to the Company or any other Restricted Subsidiary.

      "Bankruptcy Code" means the United States Bankruptcy Code,  codified at 11
U.S.C. Sections 101-1330, as amended.

      "Bankruptcy Law" means Title 11, U.S. Code, or any similar Federal,  state
or foreign law for the relief of debtors.

                                       3
<PAGE>

      "beneficial  owner" has the  meaning  attributed  to it in Rules 13d-3 and
13d-5 under the Exchange  Act (as in effect on the Issue  Date),  whether or not
otherwise applicable, except that a "person" shall be deemed to have "beneficial
ownership" of all shares that any such person has the right to acquire,  whether
such right is exercisable immediately or only after the passage of time.

      "Broker-Dealer"  means any broker-dealer  that receives Exchange Notes for
its own account in the Exchange  Offer in exchange for Notes that were  acquired
by such broker-dealer as a result of market-making or other trading activities.

      "Business Day" means any day other than a Legal Holiday.

      "Capital  Corp." means The Old Evangeline  Downs Capital Corp., a Delaware
corporation,  and its successors in accordance with the terms of this Indenture,
and not any of its subsidiaries.

      "Capital Lease  Obligation"  means,  as to any Person,  the obligations of
such Person under a lease that are required to be  classified  and accounted for
as capital lease  obligations  under GAAP and the amount of such  obligations at
any date  shall be the  capitalized  amount of such  obligations  at such  date,
determined in accordance with GAAP.

      "Capital  Stock"  means,  (i)  with  respect  to  any  Person  that  is  a
corporation,  any and all  shares,  interests,  participations,  rights or other
equivalents  (however  designated)  of corporate  stock,  (ii) with respect to a
limited liability company, any and all membership interests,  (iii) with respect
to any other Person,  any and all partnership or other equity  interests of such
Person.

      "Cash  Equivalent"  means  (i)  securities  issued or  directly  and fully
guaranteed  or  insured  by the  United  States  of  America  or any  agency  or
instrumentality  thereof  (provided that the full faith and credit of the United
States of  America  is  pledged in  support  thereof);  (ii) time  deposits  and
certificates of deposit and commercial paper issued by the parent corporation of
any domestic  commercial bank of recognized  standing having capital and surplus
in excess of $250,000,000  and commercial  paper issued by others rated at least
A-2 or the equivalent  thereof by Standard & Poor's  Corporation or at least P-2
or the equivalent  thereof by Moody's Investors  Service,  Inc. and in each case
maturing  within one year after the date of  acquisition;  (iii)  investments in
money market funds  substantially all of whose assets comprise securities of the
type described in clauses (i) and (ii) above and (iv) repurchase obligations for
underlying securities of the types and with the maturities described above.

      "Change of Control" means the occurrence of any of the following events:

      (i) any  merger or  consolidation  of the  Company or PGP with or into any
Person or any sale, transfer or other conveyance, whether direct or indirect, of
all or substantially  all of the assets of the Company or PGP, on a consolidated
basis, in one transaction or a series of related  transactions,  if, immediately
after giving effect to such

                                       4
<PAGE>

transaction(s),  any "person" or "group" (as such terms are used for purposes of
Sections 13(d) and 14(d) of the Exchange Act, whether or not applicable)  (other
than an  Excluded  Person) is or becomes  the  "beneficial  owner,"  directly or
indirectly,  of more than 50% of the total voting power in the  aggregate of the
Voting Stock of the transferee(s) or surviving entity or entities;

      (ii) any  "person"  or  "group"  (as such terms are used for  purposes  of
Sections 13(d) and 14(d) of the Exchange Act, whether or not applicable)  (other
than an  Excluded  Person) is or becomes  the  "beneficial  owner,"  directly or
indirectly,  of more than 50% of the total voting power in the  aggregate of the
Voting Stock of the Company or PGP;

      (iii)  after any bona fide  underwritten  registered  public  offering  of
Capital Stock of the Company,  during any period of 24 consecutive  months after
the Issue Date,  individuals  who at the beginning of any such  24-month  period
constituted  the Managers of the Company  (together  with any new Managers whose
election by such  Managers or whose  nomination  for election by the Members was
approved by a vote of a majority of the  Managers  then still in office who were
either  Managers at the beginning of such period or whose election or nomination
for election was previously so approved, including new Managers designated in or
provided  for in an  agreement  regarding  the  merger,  consolidation  or sale,
transfer or other  conveyance,  of all or substantially all of the assets of the
Company,  if such agreement was approved by a vote of such majority of Managers)
cease for any reason to  constitute  a majority  of the  Managers of the Company
then in office,  provided,  however,  that  there  shall be no Change of Control
pursuant to this clause (iii) if during such 24-month period any of the Excluded
Persons continues to control or manage,  directly or indirectly,  the day-to-day
operations of the Company;

      (iv) the Company adopts a plan of liquidation or dissolution; or

      (v) the first day on which the Company  fails to own 99% of the issued and
outstanding Equity Interests of Capital Corp.;

provided,  that a "Change  of  Control"  shall  not occur  solely by reason of a
Permitted C-Corp Conversion.

      "Clearstream" means Clearstream  Banking  Luxembourg,  Societe Anonyme, or
any successors securities clearing agency.

      "Code" means the Internal Revenue Code of 1986, as amended.

      "Collateral" means all "collateral" referred to in the Security Documents,
which for the avoidance of doubt, shall not include any Excluded Assets.

      "Company"  means  (i)  if  the   Reorganization   Transactions  have  been
consummated,  Peninsula Gaming,  and its successors in accordance with the terms
of  this  Indenture,  and  not  any  of  its  subsidiaries,   and  (ii)  if  the
Reorganization Transactions have

                                       5
<PAGE>

not been  consummated,  DJL and its  successors in accordance  with the terms of
this Indenture, and not any of its subsidiaries.

      "consolidated"  means,  with respect to the Company,  the consolidation of
the accounts of the Restricted  Subsidiaries  with those of the Company,  all in
accordance  with  GAAP;   provided,   that  "consolidated"   shall  not  include
consolidation of the accounts of any  Unrestricted  Subsidiary with the accounts
of the Company.

      "Consolidated  EBITDA"  means,  with  respect to any Person (the  referent
Person) for any period,  the sum of  Consolidated  Net Income of such Person and
the Restricted Subsidiaries for such period, without duplication;

      plus (i) consolidated income tax expense of such Person and the Restricted
Subsidiaries  paid or accrued in  accordance  with GAAP for such  period and the
amount  of  Permitted  Tax  Distributions  subtracted  from  Net  Income  in the
determination of the Consolidated Net Income of such Person for such period;

      plus  (ii)  Consolidated   Interest  Expense,  to  the  extent  that  such
Consolidated  Interest  Expense was deducted in computing such  Consolidated Net
Income;

      plus  (iii)  Consolidated  Non-Cash  Charges,  to the extent  deducted  in
computing such Consolidated Net Income;

      plus (iv)  pre-opening  costs and  expenses,  to the  extent  deducted  in
computing such Consolidated Net Income, with respect to any Gaming Property that
was, or is under, construction;

      minus (v) (x) extraordinary  non-cash charges increasing such Consolidated
Net Income and (y) the amount of all cash payments made by such Person or any of
the  Restricted  Subsidiaries  during such  period to the extent  such  payments
relate to  non-cash  charges  that were added back in  determining  Consolidated
EBITDA for such period or any prior period;

provided,  however, that in determining  Consolidated EBITDA with respect to OED
for any period ending on or about:  (A) March 31, 2004,  Consolidated  EBITDA of
OED  for  such  period  shall  be  deemed  to be  equal  to the  product  of (x)
Consolidated  EBITDA of OED for the period from  January 1, 2004 to the last day
of such period and (y) 4, (B) June 30, 2004, Consolidated EBITDA of OED for such
period shall be deemed to be equal to the product of (x) Consolidated  EBITDA of
OED for the period  from  January 1, 2004 to the last day of such period and (y)
2, and (C) September 30, 2004,  Consolidated EBITDA of OED for such period shall
be deemed to be equal to the product of (x)  Consolidated  EBITDA of OED for the
period from January 1, 2004 to the last day of such period and (y) 1.333.

      "Consolidated  Interest Expense" means, with respect to any Person for any
period, (a) the consolidated  interest expense of such Person and the Restricted

                                       6
<PAGE>

Subsidiaries for such period, net of interest income, whether capitalized, paid,
accrued or scheduled to be paid or accrued  (including  amortization of original
issue discount,  noncash  interest  payment,  the interest  component of Capital
Lease Obligations and all commissions, discounts and other fees and charges owed
with respect to bankers'  acceptances and letters of credit financings),  to the
extent such expense was deducted in  computing  Consolidated  Net Income of such
Person for such  period less (b)  amortization  expense,  write-off  of deferred
financing  costs and any charge  related to any premium or penalty paid, in each
case accrued  during such period in  connection  with  redeeming or retiring any
Indebtedness before its stated maturity,  as determined in accordance with GAAP,
to the extent such expense,  cost or charge was included in the calculation made
pursuant to clause (a) above,  provided,  that any  premiums,  fees and expenses
(including the amortization  thereof) payable in connection with the offering of
the  Notes  and the  application  of the net  proceeds  therefrom  or any  other
refinancing of Indebtedness shall be excluded.

      "Consolidated  Net Income" means, with respect to any Person (the referent
Person) for any period,  the sum of (a) the  aggregate of the Net Income of such
Person  and  the  Restricted  Subsidiaries  for  such  period,  determined  on a
consolidated basis in accordance with GAAP; provided, that (i) the Net Income of
any other Person  (other than a Restricted  Subsidiary  of the referent  Person)
shall be included only to the extent of the amount of dividends or distributions
paid to the referent Person or a Wholly Owned Subsidiary of the referent Person,
and (ii) the Net Income of any  Restricted  Subsidiary  shall not be included to
the extent that  declarations  of  dividends  or similar  distributions  by that
Restricted Subsidiary are not at the time permitted,  directly or indirectly, by
operation  of  the  terms  of its  organizational  documents  or any  agreement,
instrument,  judgment,  decree, order, statute, rule or governmental  regulation
applicable to that  Restricted  Subsidiary or its owners,  and (b)  Consolidated
Non-Cash  Charges  described  in  clauses  (ii)  and (iv) of the  definition  of
"Consolidated Non-Cash Charges," of such Person and the Restricted  Subsidiaries
to the extent deducted in computing such Net Income.

      "Consolidated  Net Worth"  means,  with  respect to any Person,  the total
stockholders'  (or members') equity of such Person  determined on a consolidated
basis in accordance  with GAAP,  adjusted to exclude (to the extent  included in
calculating such stockholders' (or members') equity), (i) the amount of any such
stockholders' (or members') equity attributable to Disqualified Capital Stock or
treasury stock of such Person and its  consolidated  subsidiaries,  and (ii) all
upward  revaluations  and other write-ups in the book value of any asset of such
Person or a consolidated subsidiary of such Person subsequent to the Issue Date,
and  (iii)  all  Investments  in  subsidiaries  of  such  Person  that  are  not
consolidated  subsidiaries  and in  Persons  that are not  subsidiaries  of such
Person.

      "Consolidated  Non-Cash Charges" means, with respect to any Person for any
period, (a) the aggregate  depreciation and amortization expense for such Person
and the  Restricted  Subsidiaries  for such period  determined on a consolidated
basis in accordance with GAAP and (b) all other non-cash  charges of such Person
and the Restricted  Subsidiaries for such period, in each case,  determined on a
consolidated basis

                                       7
<PAGE>

in accordance with GAAP, including, without limitation, non-cash charges related
to (i)  Management  Arrangements  or the pricing or  repricing  or  issuances of
Equity  Interests  of the Company or PGP to  employees  of the Company  (whether
accruing at or  subsequent  to the time of such  repricing  or  issuance),  (ii)
impairment of goodwill,  intangibles or fixed assets,  (iii) purchase accounting
adjustments,  and (iv) restructuring charges,  non-capitalized transaction costs
and other  non-cash  charges  incurred  in  connection  with  actual or proposed
financings,  acquisitions or divestitures  (including,  without limitation,  the
issuance of the Notes, borrowings under the Senior Credit Facility,  refinancing
of the  Company's 12 1/4% Senior  Secured  Notes due 2006 and the OED 13% Senior
Secured Notes due 2010 with Contingent Interest or otherwise) of such Person and
the Restricted  Subsidiaries for such period;  but, in each case,  excluding (x)
any such charges  constituting an  extraordinary  item or loss, and (y) any such
charge which requires an accrual of or a reserve for cash charges for any future
period.

      "contractually  subordinate" means subordinated in right of payment by its
terms or the terms of any document or instrument or instrument relating thereto.

      "Default"  means any event that is, or after notice or the passage of time
or both would be, an Event of Default.

      "Definitive Note" means one or more  certificated  Notes registered in the
name of the Holder  thereof and issued in  accordance  with  Section 2.6 hereof,
substantially,  in the form of Exhibit A hereto  except that such Note shall not
include the information called for by footnotes 3 and 4 thereof.

      "Depositary"  means, with respect to the Notes issuable or issued in whole
or in part in global  form,  the Person  specified  in Section 2.3 hereof as the
Depositary  with  respect  to the  Notes,  until a  successor  shall  have  been
appointed  and  become  such  pursuant  to the  applicable  provisions  of  this
Indenture, and thereafter "Depositary" shall mean or include such successor.

      "Disqualified  Capital Stock" means any Equity Interest that (i) either by
its terms (or by the terms of any security into which it is  convertible  or for
which it is exchangeable) is or upon the happening of an event would be required
to be redeemed or repurchased prior to the final stated maturity of the Notes or
is  redeemable  at the  option of the  holder  thereof at any time prior to such
final stated maturity, or (ii) is convertible into or exchangeable at the option
of the issuer  thereof or any other  Person  for debt  securities  that are pari
passu or  senior  in  respect  of  payment  to the  Notes.  Notwithstanding  the
foregoing, any Equity Interests that would constitute Disqualified Capital Stock
solely because such Equity Interests mature or become mandatorily redeemable, or
give the holders  thereof the right to require  the Company to  repurchase  such
Equity Interests, in each case, upon the occurrence of a change of control or an
asset sale shall not constitute  Disqualified Capital Stock if the terms of such
Equity Interests  provide that the Company may not repurchase or redeem any such
Equity Interests  pursuant to such provisions prior to the Company's purchase of
the Notes as are required to be purchased  pursuant to the provisions of Section
4.15 and Section 4.13.

                                       8
<PAGE>

      "Distribution  Compliance  Period" means the 40-day  restricted  period as
defined in Regulation S.

      "DJL" means  Diamond Jo, LLC (formerly  named  Peninsula  Gaming  Company,
LLC), a Delaware limited liability company.

      "DJL Notes" means the $71,000,000  aggregate  principal  amount of 12 1/4%
Senior Secured Notes due 2006 issued by DJL and PGC Corp.

      "Domestic  Restricted  Subsidiary"  means any Restricted  Subsidiary other
than a Foreign Subsidiary.

      "Equity  Holder" means (a) with respect to a  corporation,  each holder of
stock of such  corporation,  (b) with respect to a limited  liability company or
similar entity, each member of such limited liability company or similar entity,
(c) with respect to a partnership,  each partner of such  partnership,  (d) with
respect to any entity  described in clause  (a)(iv) of the  definition  of "Flow
Through  Entity,"  the owner of such  entity,  and (e) with  respect  to a trust
described in clause (a)(v) of the definition of "Flow Through  Entity," an owner
thereof.

      "Equity  Interests"  means  Capital  Stock or  warrants,  options or other
rights to  acquire  Capital  Stock  (but  excluding  any debt  security  that is
convertible into, or exchangeable for, Capital Stock).

      "Equity Offering" means (i) an underwritten  offering of Qualified Capital
Stock  of the  Company  pursuant  to a  registration  statement  filed  with and
declared  effective by the  Commission in accordance  with the Securities Act or
(ii) an  offering  of  Qualified  Capital  Stock of the  Company  pursuant to an
exemption from the registration requirements of the Securities Act.

      "Euroclear"  means Euroclear Bank S.A./N.V.,  as operator of the Euroclear
system, or any successor securities clearing agency.

      "Event of Loss"  means,  with  respect to any  property or asset,  any (i)
loss,  destruction or damage of such property or asset or (ii) any condemnation,
seizure or taking,  by exercise of the power of eminent domain or otherwise,  of
such  property  or asset,  or  confiscation  or  requisition  of the use of such
property or asset.

      "Excess  Cash  Distribution  Amount for Taxes" means the excess of (x) the
aggregate  actual cash  distributions  received  by the Company or a  Restricted
Subsidiary from all Flow Through  Entities that are not Restricted  Subsidiaries
of the Company during the period  commencing  with the Issue Date and continuing
to and including the date on which a proposed  Permitted Tax  Distribution is to
be made under clause (iii) Section 4.9(b) over (y) the aggregate  amount of such
cash distributions  described in the immediately  preceding clause (x) that have
already  been taken into  account  for  purposes  of making  (I)  Permitted  Tax
Distributions  previously  made and which  was  attributable  to a Flow  Through
Entity that was not a Restricted Subsidiary at the time such Permitted

                                       9
<PAGE>

Tax Distribution was made plus (II) Restricted  Payments permitted by clause (1)
or (4) of (iii)  (treating  such cash  distributions  described  in this  clause
(y)(II) as used to make a  Restricted  Payment in during such period only to the
extent that in such period,  the total amount of  Restricted  Payments  actually
made  during  such  period  exceeded  the  excess  of (m) the  total  amount  of
Restricted  Payments  permitted to be made in such period over (n) the amount of
such cash distributions  described in the immediately  preceding clause (x) that
were  actually  received by the Company or a Restricted  Subsidiary  during such
period and that were not previously used to make a Permitted Tax Distribution.

      "Exchange Act" means the  Securities  Exchange Act of 1934, as amended and
the rules and regulations of the SEC promulgated thereunder.

      "Exchange  Notes"  means the Series B Notes,  identical in all respects to
the Series A Notes (including with respect to the Subsidiary Guaranties endorsed
thereon,  except  for  references  to series  and  restrictive  legends,  issued
pursuant to an Exchange Offer.

      "Exchange  Offer" means an offer that may be made by the Issuers  pursuant
to the  Registration  Rights  Agreement to exchange  Exchange Notes for Series A
Notes.

      "Exchange Offer Registration  Statement " shall have the meaning set forth
in the Registration Rights Agreement.

      "Excluded  Assets"  means (i) cash,  other than cash  deposited in deposit
accounts;  (ii)assets  securing FF&E  Financing,  Purchase Money  Obligations or
Capital Lease  Obligations  permitted to be incurred under this Indenture to the
extent acquired or refinanced with the proceeds of such FF&E Financing, Purchase
Money Obligations and Capital Lease Obligations; (iii) all Gaming Licenses; (iv)
any of the parcels of the Warner Land that are subject to the  mortgage  granted
by OED to the seller of such land,  unless OED or the Company has  obtained  the
consent of such  seller to  subject  such  parcels to a Lien under the  Security
Documents; (v) any motor vehicles; (vi) any agreements, permits, licenses or the
like that cannot be subject to a Lien under the Security  Documents  without the
consent of third parties (including any Governmental  Authority),  which consent
is not  obtained  by  the  Issuers;  (vii)  Equity  Interests  of  each  Foreign
Restricted  Subsidiary  directly  owned by the  Company  or any of the  Domestic
Restricted  Subsidiaries  to the extent that such Equity  Interests  held by the
Company or such Domestic Restricted  Subsidiary,  as the case may be, exceed 65%
of the total combined voting power of all classes of voting Equity  Interests of
such Foreign Restricted Subsidiary,  provided, however, such excess of any class
of Capital Stock of such Foreign  Subsidiary  shall not be an Excluded  Asset to
the  extent the  Company  is able to  receive  an opinion of counsel  nationally
recognized  in tax matters to the effect that the pledge of such excess will not
result in an income inclusion under section 951 et. seq. of the Code; and (viii)
OEDA's  rights  under or in respect of the  Management  Services  Agreement  and
proceeds thereof (including fees paid to OEDA pursuant thereto);  provided, that
Excluded  Assets does not include the  proceeds  of assets  under  clause  (ii),
(iii), (iv), (v), (vi), (vii) or (viii) or of any other Collateral to the extent
such proceeds do not constitute Excluded Assets.

                                       10
<PAGE>

      "Excluded  Person" means (i) PGP, (ii) PGP Investors,  LLC, (iii) M. Brent
Stevens, (iv) Michael S. Luzich, (v) OEDA, (vi) any Affiliate or Manager of PGP,
PGP Investors,  LLC, OEDA, M. Brent Stevens or Michael S. Luzich  (collectively,
the "Existing  Holders"),  (vii) any trust,  corporation,  partnership  or other
entity (a)  controlled  by the  Existing  Holders and  members of the  immediate
family of the Existing  Holders or (b) 80% of the  beneficiaries,  stockholders,
partners or owners of which consist  solely of the Existing  Holders and members
of the immediate  family of the Existing  Holders or (viii) any  partnership the
sole  general  partners  of which  consist  solely of the  Existing  Holders and
members of the immediate family of the Existing Holders.

      "fair market value" means the price that would be paid in an  arm's-length
transaction  between an informed and willing  seller under no compulsion to sell
and an informed and willing  buyer under no  compulsion to buy, as determined in
good faith by the Issuers.

      "FF&E"  means  furniture,   fixtures  and  equipment   (including   Gaming
Equipment)  acquired  by the  Issuers  and the  Restricted  Subsidiaries  in the
ordinary course of business for use in the construction and business  operations
of the Company or the Restricted Subsidiaries.

      "FF&E Financing" means Indebtedness, the proceeds of which are used solely
by the  Issuers  and the  Restricted  Subsidiaries  (and  concurrently  with the
incurrence  of such  Indebtedness)  to acquire or lease or improve or refinance,
respectively,  FF&E;  provided,  that  (x) the  principal  amount  of such  FF&E
Financing  does  not  exceed  the  cost  (including   sales  and  excise  taxes,
installation and delivery charges,  capitalized  interest and other direct fees,
costs and expenses) of the FF&E purchased or leased with the proceeds thereof or
the cost of such  improvements,  as the case may be, and (y) such FF&E Financing
is secured only by the assets so financed and assets which, immediately prior to
the incurrence of such FF&E Financing, secured other Indebtedness of the Issuers
and the Restricted  Subsidiaries (to the extent such other  Indebtedness and the
Liens securing such other  Indebtedness  are permitted  under this Indenture) to
the lender of such FF&E Financing.

      "Flow  Through  Entity"  means an entity that (a) for  Federal  income tax
purposes  constitutes (i) an "S  corporation"  (as defined in Section 1361(a) of
the Code),  (ii) a "qualified  subchapter S  subsidiary"  (as defined in Section
1361(b)(3)(B) of the Code), (iii) a "partnership" (within the meaning of Section
7701(a)(2) of the Code) other than a "publicly  traded  partnership" (as defined
in Section 7704 of the Code),  (iv) an entity that is  disregarded  as an entity
separate  from its  owner  under  the  Code,  the  Treasury  regulations  or any
published  administrative  guidance of the Internal  Revenue  Service,  or (v) a
trust, the income of which is includible in the taxable income of the grantor or
another  person  under  sections  671  through  679 of the  Code  (the  entities
described in the immediately preceding clauses (i), (ii), (iii), (iv) and (v), a
"Federal  Flow  Through  Entity") and (b) for state and local  jurisdictions  in
respect of which  Permitted  Tax  Distributions  are being  made,  is subject to
treatment  on  a  basis  under   applicable   state  or  local  income  tax  law
substantially similar to a Federal Flow Through Entity.

                                       11
<PAGE>

      "Foreign  Restricted  Subsidiary" means any Restricted  Subsidiary that is
also a Foreign Subsidiary.

      "Foreign Subsidiary" means any Subsidiary which (i) is not organized under
the laws of the United States, any state thereof or the District of Columbia and
(ii) conducts substantially all of its business operations outside of the United
States of America.

      "GAAP" means generally accepted accounting  principles,  as in effect from
time to time,  set forth in the opinions and  pronouncements  of the  Accounting
Principles Board of the American  Institute of Certified Public  Accountants and
statements and pronouncements of the Financial  Accounting Standards Board or in
such other statements by such other entity as approved by a significant  segment
of  the  accounting  profession,  and  in  the  rules  and  regulations  of  the
Commission.

      "Gaming   Authorities"  means  any  agency,   authority,   board,  bureau,
commission,  department,  office or  instrumentality of any nature whatsoever of
the  United  States  Federal  government,  any  foreign  government,  any state,
province or city or other  political  subdivision  or otherwise,  whether now or
hereafter  existing,  or any officer or  official  thereof,  including,  without
limitation,  the Iowa Gaming Commission, the Louisiana Gaming Control Board, the
Louisiana  State Racing  Commission  and any other  agency,  in each case,  with
authority to regulate  any gaming or racing  operation  (or  proposed  gaming or
racing  operation)  owned,  managed  or  operated  by the  Company or any of the
Subsidiaries.

      "Gaming  Equipment"  means slot machines,  video poker  machines,  and all
other  gaming  equipment  and  related,  signage,   accessories  and  peripheral
equipment.

      "Gaming FF&E Financing"  means FF&E  Financing,  the proceeds of which are
used solely by the Issuers and the Restricted  Subsidiaries  to acquire or lease
FF&E that constitutes Gaming Equipment.

      "Gaming  Licenses"  means  every  material  license,  material  franchise,
material registration, material qualification,  findings of suitability or other
material approval or authorization  required to own, lease, operate or otherwise
conduct or manage riverboat,  dockside or land-based gaming or racing activities
in any state or  jurisdiction  in which  the  Company  or any of the  Restricted
Subsidiaries conducts business (including, without limitation, all such licenses
granted by the  Gaming  Authorities),  and all  applicable  liquor  and  tobacco
licenses.

      "Gaming Property" means: (i) the Diamond Jo and the Evangeline Downs horse
racetrack  and casino,  in each case, so long as it is owned by the Company or a
Restricted  Subsidiary  and (ii) any other gaming  facility or gaming  operation
owned and controlled or to be owned and  controlled  after the Issue Date by the
Company or a Restricted  Subsidiary and that contains, or that based upon a plan
approved by the  Company's  Managers  shall  contain upon the  completion of the
construction or development  thereof, an aggregate of at least 500 slot machines
or other gaming  devices;

                                       12
<PAGE>

provided,  in each case,  that the  property  and assets  (other  than  Excluded
Assets) of such Gaming Property constitute Collateral.

      "Gaming Property Financing" means a financing, in whole or in part, of (x)
the  acquisition  of any Gaming  Property,  (y) the  construction  of any Gaming
Property (but only to the extent that the proceeds of such Indebtedness are used
to  acquire  land,  furniture,  fixtures  and  equipment,  prepare  the  site or
construct improvements thereon) or (z) an investment in any Gaming Property.

      "Gaming  Vessel"  means a  riverboat  casino  (i)  which is  substantially
similar in size and space to the Diamond Jo, (ii) with at least the same overall
qualities  and  amenities  as the  Diamond  Jo,  and  (iii)  that is  developed,
constructed and equipped to be in compliance  with all federal,  state and local
laws, including, without limitation, the cruising requirements of Chapter 99F of
the Iowa Code.  In the event the laws of the State of Iowa  change to permit the
development  and operation of additional  land-based  casinos,  the term "Gaming
Vessel" shall be deemed to include a land-based  casino meeting the requirements
of clauses (i), (ii) and (iii) above.

      "Global  Notes"  means one or more  Notes in the form of  Exhibit A hereto
that  includes the  information  referred to in footnotes 3 and 4 to the form of
Note,  attached  hereto as  Exhibit A,  issued  under  this  Indenture,  that is
deposited  with or on behalf of and  registered in the name of the Depositary or
its nominee.

      "Global  Note  Legend"  means the legend  set forth in Section  2.6(g)(ii)
hereof,  which is required to be placed on all Global  Notes  issued  under this
Indenture.

      "Government  Securities" means (i) direct obligations of the United States
of America for the timely  payment of which its full faith and credit is pledged
or (ii)  obligations  of a Person  controlled  or supervised by and acting as an
agency or  instrumentality of the United States of America the timely payment of
which is unconditionally guaranteed as a full faith and credit obligation by the
United States of America,  which, in either case, are not callable or redeemable
at the option of the issuer thereof, and shall also include a depository receipt
issued by a bank (as  defined in  Section  3(a)(2) of the  Securities  Act),  as
custodian with respect to any such Government  Security or a specific payment of
principal of or interest on any such Government  Security held by such custodian
for the account of the holder of such depository receipt; provided, that (except
as required by law) such  custodian is not authorized to make any deduction from
the  amount  payable to the holder of such  depository  receipt  from any amount
received by the custodian in respect of the Government  Security or the specific
payment of principal of or interest on the Government Security evidenced by such
depository receipt.

      "Governmental  Authority"  means any  agency,  authority,  board,  bureau,
commission,  department,  office or  instrumentality of any nature whatsoever of
the United  States or foreign  government,  any state,  province  or any city or
other  political  subdivision  or  otherwise  and  whether now or  hereafter  in
existence, or any officer or official thereof, and any maritime authority.

                                       13
<PAGE>

      "guaranty" or "guaranty,"  used as a noun,  means any guaranty (other than
by endorsement of negotiable  instruments  for collection in the ordinary course
of business), direct or indirect, in any manner (including,  without limitation,
letters of credit and reimbursement  agreements in respect  thereof),  of all or
any part of any Indebtedness or other Obligation.  "guaranty" or "guaranty" used
as a verb, has a correlative meaning.

      "Hedging  Obligations"  means, with respect to any Person, the Obligations
of such  Person  under (i)  interest  rate swap  agreements,  interest  rate cap
agreements,   interest  rate  exchange   agreements  and  interest  rate  collar
agreements and (ii) other  agreements or  arrangements  designed to protect such
Person  against  fluctuations  in  interest  rates,  including  any  arrangement
whereby, directly or indirectly, such Person is entitled to receive from time to
time periodic payments calculated by applying either a fixed or floating rate of
interest on a stated notional  amount in exchange for periodic  payments made by
such Person  calculated  by applying a fixed or floating rate of interest on the
same notional amount.

      "Holder"  means  the  Person  in whose  name a Note is  registered  in the
register of the Notes.

      "Indebtedness"   of  any  Person  means  (without   duplication)  (i)  all
liabilities  and  obligations,  contingent or  otherwise,  of such Person (a) in
respect of borrowed  money  (regardless of whether the recourse of the lender is
to the whole of the  assets of such  Person or only to a portion  thereof),  (b)
evidenced  by  bonds,  debentures,  notes  or  other  similar  instruments,  (c)
representing  the deferred  purchase  price of property or services  (other than
trade payables on customary  terms incurred in the ordinary course of business),
(d)  created or arising  under any  conditional  sale or other  title  retention
agreement  with  respect to property  acquired by such Person  (even  though the
rights and remedies of the seller or lender under such agreement in the event of
default are limited to repossession or sale of such property),  (e) representing
Capital Lease  Obligations,  (f) under bankers'  acceptance and letter of credit
facilities,  (g) to purchase,  redeem,  retire, defease or otherwise acquire for
value any Disqualified  Capital Stock, or (h) in respect of Hedging Obligations;
(ii) all Indebtedness of others that is guaranteed by such Person; and (iii) all
Indebtedness  of others  that is  secured  by (or for  which the  holder of such
Indebtedness has an existing right,  contingent or otherwise,  to be secured by)
any Lien on property  (including,  without  limitation,  accounts  and  contract
rights) owned by such Person,  even though such Person has not assumed or become
liable for the payment of such Indebtedness;  provided,  that the amount of such
Indebtedness  shall (to the extent such Person has not assumed or become  liable
for the payment of such Indebtedness) be the lesser of (1) the fair market value
of such  property  at the  time of  determination  and  (2) the  amount  of such
Indebtedness.  The amount of Indebtedness of any Person at any date shall be the
outstanding  balance at such date of all unconditional  obligations as described
above and the maximum  liability,  upon the occurrence of the contingency giving
rise  to the  obligation,  of any  contingent  obligations  at  such  date.  The
principal  amount  outstanding  of any  Indebtedness  issued with original issue
discount is the accreted value of such Indebtedness.

                                       14
<PAGE>

      "Indenture" means this Indenture,  as amended or supplemented from time to
time in accordance with the terms hereof.

      "Indirect  Participant"  means an entity that, with respect to DTC, clears
through  or  maintains  a direct  or  indirect,  custodial  relationship  with a
Participant.

      "Initial Purchaser" mean the initial purchaser of the Series A Notes under
the  Purchase  Agreement,  dated March 25,  2004,  with  respect to the Series A
Notes.

      "Institutional  Accredited  Investor"  means  an  institution  that  is an
"accredited  investor" as defined in Rule  501(a)(1),  (2), (3) or (7) under the
Securities Act, who is not also a QIB.

      "Intercreditor  Agreement"  means that  Intercreditor  Agreement among the
Trustee,  Wells  Fargo  Foothill,  Inc.  and  acknowledgd  by one or more of the
Issuers and the  Subsidiary  Guarantors,  including any amended or  supplemented
agreement or any  replacement  or substitute  agreement in accordance  with this
Indenture, in each case substantially in the form of Exhibit F attached hereto.

      "Interest" means the interest payable on the Notes.

      "Interest  Coverage  Ratio"  means,  for  any  period,  the  ratio  of (i)
Consolidated  EBITDA  of the  Company  for  such  period,  to (ii)  Consolidated
Interest  Expense  of the  Company  for such  period.  In  calculating  Interest
Coverage  Ratio  for any  period,  (a) pro  forma  effect  shall be given to the
incurrence,  repayment  or  retirement  by the Company or any of the  Restricted
Subsidiaries  of any  Indebtedness  (other  than  Indebtedness  incurred  in the
ordinary course of business for general  corporate  purposes pursuant to working
capital  facilities)  subsequent to the commencement of the period for which the
Interest Coverage Ratio is being calculated,  as if the same had occurred at the
beginning of the applicable  period; (b) acquisitions that have been made by the
Company  or  any of the  Restricted  Subsidiaries,  including  all  mergers  and
consolidations,   subsequent  to  the  commencement  of  such  period  shall  be
calculated on a pro forma basis,  assuming that all such  acquisitions,  mergers
and  consolidations  had  occurred  on the first day of such  period,  including
giving  effect  to  reductions  in costs  for  such  period  that  are  directly
attributable   to  the   elimination  of  duplicative   functions  and  expenses
(regardless  of whether such cost  savings  could then be reflected in pro forma
financial  statements  under GAAP,  Regulation S X promulgated by the SEC or any
other regulation or policy of the SEC) as a result of such  acquisition,  merger
or  consolidation,  provided  that (x) such cost  savings  were  identified  and
quantified in an Officers'  Certificate  delivered to the Trustee at the time of
the consummation of such acquisition, merger or consolidation and such Officers'
Certificate  states that such officers  believe in good faith that actions shall
be  commenced  or  initiated   within  90  days  of  the  consummation  of  such
acquisition,  merger or consolidation to effect such cost savings and sets forth
the specific steps to be taken within the 90 days after such acquisition, merger
or consolidation  to accomplish such cost savings,  and (y) with respect to each
acquisition,  merger or consolidation  completed prior to the 90th day preceding
such date of  determination,  actions were commenced or initiated by the Company
or any of its Restricted Subsidiaries within 90

                                       15
<PAGE>

days of such  acquisition,  merger or  consolidation  to effect the cost savings
identified in such Officers'  Certificate  (regardless,  however, of whether the
corresponding cost savings have been achieved).  Without limiting the foregoing,
the  financial  information  of the Company  with respect to any portion of such
period  that falls  before the Issue  Date shall be  adjusted  to give pro forma
effect  to the  issuance  of the  Notes  and  the  application  of the  proceeds
therefrom as if they had occurred at the beginning of such period.

      "Interest  Payment  Date" means the stated due date of an  installment  of
Interest on the Notes.

      "Interest  Record  Date"  means a Interest  Record Date  specified  in the
Notes, whether or not such date is a Business Day.

      "Investments"  means, with respect to any Person,  all investments by such
Person  in  other  Persons  (including   Affiliates)  in  the  forms  of  loans,
guarantees,   advances  or  capital   contributions   (excluding  (i),   payroll
commission, travel and similar advances to officers and employees of such Person
made in the ordinary  course of business and (ii) bona fide accounts  receivable
arising  from the sale of goods or services in the  ordinary  course of business
consistent   with  past   practice),   purchases  or  other   acquisitions   for
consideration of Indebtedness,  Equity  Interests or other  securities,  and any
other items that are or would be  classified as  investments  on a balance sheet
prepared in accordance with GAAP.

      "Iowa Code" means the Code of Iowa (2003), as amended from time to time.

      "Iowa Gaming Commission" means the Iowa Racing and Gaming  Commission,  or
any successor Gaming Authority.

      "Issue  Date"  means the date of first  issuance  of the Notes  under this
Indenture.

      "Issuers"  means  (i)  if  the   Reorganization   Transactions  have  been
consummated,  Peninsula  Gaming,  DJL and  Capital  Corp.  and their  respective
successors in accordance with the terms of this Indenture,  and not any of their
respective  subsidiaries and (ii) if the  Reorganization  Transactions  have not
been  consummated,  DJL and Capital  Corp.  and their  respective  successors in
accordance  with the terms of this  Indenture,  and not any of their  respective
subsidiaries.

      "Legal  Holiday"  means  a  Saturday,  Sunday  or a day on  which  banking
institutions  in the City of New York or at a place of payment are authorized by
law, regulation or executive order to remain closed.

      "Letter of Transmittal"  means the letter of transmittal to be prepared by
the  Issuers  and sent to all  Holders  of the Notes for use by such  Holders in
connection with the Exchange Offer.

                                       16
<PAGE>

      "Lien"  means,  with respect to any asset,  any  mortgage,  lien,  pledge,
charge,  security  interest or  encumbrance  of any kind,  regardless of whether
filed,  recorded or otherwise  perfected  under  applicable  law  (including any
conditional  sale or other title  retention  agreement,  any lease in the nature
thereof,  any option or other  agreement to sell or give a security  interest in
and any filing of or agreement to give any financing statement under the Uniform
Commercial Code (or equivalent statutes) of any jurisdiction).

      "Liquidated  Damages" means all liquidated  damages then owing pursuant to
the Registration Rights Agreement.

      "Management Arrangements" means profits interests grants or similar equity
interest arrangements,  employment agreements, consulting agreements, management
agreements  and other  similar  arrangements  between  the Company or any of its
Affiliates and any manager,  officer,  member or employee  thereof or consultant
thereto  and  such  or  similar  agreements  as may be  modified,  supplemented,
amended,  entered into or restated  from time to time  consistent  with industry
practice and approved by the Managers of PGP or the Company,  provided  that the
aggregate  amount of payments made to an Excluded Person (other than the Company
or any of the  Restricted  Subsidiaries)  pursuant to any such equity  interest,
employment, consulting, management or similar agreements or arrangements for any
fiscal year shall not exceed 4.0% of the Consolidated  EBITDA of the Company for
the immediately preceding fiscal year.

      "Management  Services Agreement" means the Amended and Restated Management
Services  Agreement,  dated as of February 25, 2003,  by and among DJL, OEDA and
OED, as in effect on the Issue Date,  without  giving effect to any amendment or
supplement  thereto or  modification  thereof,  except to the  extent  that such
amendment,  supplement or modification would otherwise have been permitted under
Section 4.12 if OEDA were not a Restricted Subsidiary.

      "Managers"  means,  with  respect to any  Person  (i) if such  Person is a
limited liability company, the board member, board members,  manager or managers
appointed  pursuant to the operating  agreement of such Person as then in effect
or (ii) otherwise, the members of the board of directors or other governing body
of such Person.

      "Members" means the holders of all of the Voting Stock of the Company.

      "Moody's" means Moody's Investors Service, Inc. and its successors.

      "Mortgages"  means those  mortgages  dated the dated  hereof  granting the
Trustee an interest in all of the Issuers' real property Collateral.

      "Net Income" means, with respect to any Person for any period, (a) the net
income (or loss) of such Person for such period,  determined in accordance  with
GAAP,  excluding (to the extent included in calculating such net income) (i) any
gain or loss,  together  with any related  taxes paid or accrued on such gain or
loss,  realized in

                                       17
<PAGE>

connection  with any Asset Sales and  dispositions  pursuant  to  sale-leaseback
transactions and (ii) any  extraordinary  gain or loss,  together with any taxes
paid or  accrued  on such gain or loss,  reduced  by (b) the  maximum  amount of
Permitted Tax Distributions attributable to such net income for such period.

      "Net Proceeds" means the aggregate  proceeds  received in the form of cash
or Cash  Equivalents in respect of any Asset Sale  (including  issuance or other
payments  in an  Event of Loss and  payments  in  respect  of  deferred  payment
obligations  and  any  cash  or  Cash  Equivalents  received  upon  the  sale or
disposition  of any non-cash  consideration  received in any Asset Sale, in each
case when received), net of:

      (i) the reasonable and customary  direct  out-of-pocket  costs relating to
such Asset Sale (including, without limitation, legal, accounting and investment
banking  fees and sales  commissions),  other than any such costs  payable to an
Affiliate of the Company,

      (ii) taxes required to be paid by the Company, any of the Subsidiaries, or
any Equity  Holder of the Company (or, in the case of any Company  Equity Holder
that is a Flow Through Entity, the Upper Tier Equity Holder of such Flow Through
Entity) in connection with such Asset Sale in the taxable year that such sale is
consummated or in the  immediately  succeeding  taxable year, the computation of
which shall take into account the reduction in tax liability  resulting from any
available  operating losses and net operating loss  carryovers,  tax credits and
tax credit carryforwards, and similar tax attributes,

      (iii)  amounts  required  to be  applied  to the  permanent  repayment  of
Indebtedness in connection with such Asset Sale, and

      (iv)  appropriate  amounts  provided  as a reserve  by the  Company or any
Restricted  Subsidiary,   in  accordance  with  GAAP,  against  any  liabilities
associated  with such Asset Sale and retained by the Company or such  Restricted
Subsidiary,  as the case may be,  after  such  Asset  Sale  (including,  without
limitation,   as   applicable,   pension  and  other   post-employment   benefit
liabilities,  liabilities related to environmental matters and liabilities under
any indemnification obligations arising from such Asset Sale).

      "Non-U.S. Person" means any Person other than a U.S. Person.

      "Notes  Custodian"  means the Trustee,  as  custodian  with respect to the
Notes in global form, or any successor entity thereto.

      "Obligation"  means  any  principal,   premium,  interest,  penalty,  fee,
indemnification,   reimbursement,   damage   (including,   without   limitation,
liquidated  damages)  and  other  obligation  and  liability  payable  under the
documentation governing any liability.

      "OED"  means  The  Old  Evangeline  Downs,  L.L.C.,  a  Louisiana  limited
liability company.

                                       18
<PAGE>

      "OED 13% Senior Secured Notes due 2010" means the 13% Senior Secured Notes
due 2010 with Contingent Interest issued under the OED Indenture.

      "OED  Indenture"  means that certain  Indenture,  dated as of February 25,
2003,  among OED,  Capital Corp.,  the Guarantors (as defined  therein) and U.S.
Bank National Association, as trustee.

      "OEDA" means OED Acquisition, LLC, a Delaware limited liability company.

      "Offering" means the offering of the Notes by the Issuers.

      "Offering  Circular"  means that offering  circular of the Issuers,  dated
March 31, 2004,  without giving effect to any amendment or supplement thereto or
modification thereof.

      "Officer"  means,  with respect to any Person,  the Chairman of the Board,
the Chief Executive Officer,  the President,  the Chief Operating  Officer,  the
Chief Financial Officer, the Treasurer, any Assistant Treasurer, the Controller,
the Secretary,  any Assistant  Secretary or any Vice President of such Person or
any other  Person  designated  by the  Managers  of such Person and serving in a
similar capacity.

      "Officers'  Certificate"  means a  certificate  signed  on  behalf  of the
Company and Capital by two Officers of each of the Company and Capital,  in each
case, one of whom must be the Manager,  Chairman of the Board, President,  Chief
Executive Officer, Chief Financial Officer, Treasurer, Controller or a Senior or
Executive Vice President of the Company and Capital, respectively.

      "Opinion of Counsel" means an opinion from legal counsel who is reasonably
acceptable to the Trustee.  Such counsel may be an employee of or counsel to any
of the Issuers, any Subsidiary of any of the Issuers or the Trustee.

      "OTB Operations" means all of the assets and properties of the Company and
its subsidiaries (including, but not limited to, all Gaming Licenses) related to
the  business  operation of any  off-track  betting  parlor or similar  facility
operated or owned by the Company or such subsidiary.

      "Participant"  means,  with  respect  to  the  Depositary,   Euroclear  or
Clearstream,  a Person  who has an account  with the  Depositary,  Euroclear  or
Clearstream, respectively (and, with respect to DTC, shall include Euroclear and
Clearstream).

      "Peninsula  Gaming"  means  Peninsula  Gaming,  LLC,  a  Delaware  limited
liability company.

      "Permitted C-Corp Conversion" means a transaction resulting in the Company
becoming  subject to tax under the Code as a  corporation  (a "C  Corporation");
provided, that:

                                       19
<PAGE>

      (1) the C Corporation  resulting from such transaction,  if a successor to
Peninsula Gaming, LLC, (a) is a corporation,  limited liability company or other
entity  organized and existing  under the laws of any state of the United States
or the District of Columbia,  (b) assumes all of the  obligations of the Company
under the  Notes,  the  Security  Documents  and this  Indenture  pursuant  to a
supplemental  indenture in form  reasonably  satisfactory to the Trustee and (c)
shall have  Consolidated Net Worth immediately after the transaction equal to or
greater than the Consolidated Net Worth of the Company immediately preceding the
transaction;

      (2) after giving effect to such transaction no Default or Event of Default
exists;

      (3) prior to the consummation of such transaction,  the Company shall have
delivered  to the  Trustee  (a) an Opinion  of  Counsel  to the effect  that the
Holders shall not recognize  income gain or loss for Federal income tax purposes
as a result of such Permitted C-Corp  Conversion and shall be subject to Federal
income tax on the same  amounts,  in the same  manner,  and at the same times as
would have been the case if such  Permitted  C-Corp  Conversion had not occurred
and (b) an Officers' Certificate as to compliance with all of the conditions set
forth in clauses (1), (2) and (3)(a) above; and

      (4) such  transaction  would not (a) result in the loss or  suspension  or
material impairment of any Gaming License unless a comparable replacement Gaming
License is effective prior to or  simultaneously  with such loss,  suspension or
material  impairment or (b) require any Holder or  beneficial  owner of Notes to
obtain a Gaming  License or be qualified or found  suitable under any applicable
gaming or racing laws.

      "Permitted Investments" means:

      (i) Investments in the Company or in any Wholly Owned Subsidiary;

      (ii) Investments in Cash Equivalents;

      (iii)  Investments in a Person,  if, as a result of such Investment,  such
Person (a) becomes a Wholly Owned Subsidiary, or (b) is merged,  consolidated or
amalgamated  with or into,  or  transfers  or conveys  substantially  all of its
assets to, or is liquidated into, the Company or a Wholly Owned Subsidiary;

      (iv) Hedging Obligations;

      (v) Investments as a result of  consideration  received in connection with
an Asset Sale made in compliance with Section 4.13;

      (vi) Investments existing on the Issue Date;

      (vii)   Investments  paid  for  solely  with  Capital  Stock  (other  than
Disqualified Capital Stock) of the Company;

                                       20
<PAGE>

      (viii)  credit  extensions to gaming  customers in the ordinary  course of
business, consistent with industry practice;

      (ix) stock,  obligations  or  securities  received in  settlement of debts
created in the  ordinary  course of  business  and owing to the  Company  (a) in
satisfaction  of  judgments  or (b)  pursuant to any plan of  reorganization  or
similar  arrangement  upon the  bankruptcy or  insolvency of trade  creditors or
customers; and

      (x)  loans  or  other  advances  to  employees  of  the  Company  and  the
Subsidiaries  made in the ordinary course of business in an aggregate amount not
to exceed $500,000 at any one time outstanding;

      (xi) intercompany  Indebtedness incurred pursuant to clause (v) of Section
4.7(b);

      (xii) Investments in the Notes or any Additional Notes;

      (xiii)  Investments  not otherwise  permitted by clauses (i) through (xii)
above, not to exceed $10,000,000.

      "Permitted Liens" means:

      (i) Liens  securing  Indebtedness  of the Company or any of the Restricted
Subsidiaries incurred pursuant to clause (i) of Section 4.7(b);

      (ii) Liens arising by reason of any judgment, decree or order of any court
for an amount and for a period not resulting in an event of default with respect
thereto, so long as such Lien is being contested in good faith and is adequately
bonded,  and any appropriate legal proceedings that may have been duly initiated
for the review of such  judgment,  decree or order  shall not have been  finally
adversely  terminated  or  the  period  within  which  such  proceedings  may be
initiated shall not have expired;

      (iii) security for the  performance  of bids,  tenders,  trade,  contracts
(other than contracts for the payment of borrowed  money) or leases,  surety and
appeal bonds,  performance and return-of-money  bonds and other obligations of a
like  nature  incurred  in the  ordinary  course of  business,  consistent  with
industry practice;

      (iv) Liens for taxes, assessments or other governmental charges either (a)
not yet  delinquent  or (b)  that  are  being  contested  in good  faith  and by
appropriate proceedings if adequate reserves with respect thereto are maintained
on the books of the Company or the Restricted  Subsidiaries  in accordance  with
GAAP;

      (v) Liens of carriers,  warehousemen,  mechanics, landlords,  materialmen,
suppliers,  repairmen  or other like Liens  arising by  operation  of law in the
ordinary  course of business  consistent  with  industry  practices and Liens on
deposits  made to  obtain  the  release  of  such  Liens  if (a) the  underlying
obligations  are not overdue for a period of more than 30 days or (b) such Liens
are being  contested in good faith and by

                                       21
<PAGE>

appropriate   proceedings  and  adequate   reserves  with  respect  thereto  are
maintained  on the  books  of the  Company  or the  Restricted  Subsidiaries  in
accordance with GAAP;

      (vi) easements,  rights of way, zoning and similar  restrictions and other
similar  encumbrances  or title  defects  incurred  in the  ordinary  course  of
business,  and that do not  materially  detract  from the value of the  property
subject  thereto  (as  such  property  is used by the  Company  or a  Restricted
Subsidiary) or materially interfere with the ordinary conduct of the business of
the Company or any of the Restricted Subsidiaries;

      (vii) Liens  incurred or deposits made in the ordinary  course of business
in connection with workers' compensation, unemployment insurance and other types
of social security legislation or otherwise arising from statutory or regulatory
requirements of the Company or any of the Restricted Subsidiaries;

      (viii) Liens securing Refinancing Indebtedness incurred in compliance with
this Indenture to refinance  Indebtedness secured by Liens;  provided,  (a) such
Liens do not  extend to any  additional  property  or  assets;  (b) if the Liens
securing the Indebtedness  being  refinanced were  subordinated to or pari passu
with the Liens securing the Notes, the Subsidiary Guaranties or any intercompany
loan, as applicable,  such new Liens are subordinated to or pari passu with such
Liens  to the  same  extent,  and any  related  subordination  or  intercreditor
agreement is confirmed;  and (c) such Liens are no more adverse to the interests
of Holders than the Liens replaced or extended thereby;

      (ix) Liens that  secure  Acquired  Debt or Liens on  property  of a Person
existing at the time such Person is merged into or  consolidated  with,  or such
property was acquired by, the Company or any  Restricted  Subsidiary;  provided,
that such Liens do not extend to or cover any other  property or assets and were
not put in place in anticipation of such acquisition, merger or consolidation;

      (x) any interest or title of a lessor under any Capital  Lease  Obligation
or operating  lease;  provided  that such Liens do not extend to any property or
assets which are not leased property subject to such Capital Lease Obligation or
operating lease;

      (xi)  Liens  that  secure  Purchase  Money   Obligations,   Capital  Lease
Obligations  or FF&E Financing  permitted to be incurred  under this  Indenture;
provided  that such Liens do not extend to or cover any property or assets other
than those being  acquired,  leased or developed  and property and assets which,
immediately prior to the incurrence of such Purchase Money Obligations,  Capital
Lease Obligations or FF&E Financing,  secured other  Indebtedness of the Issuers
and the Restricted  Subsidiaries (to the extent such other  Indebtedness and the
Liens securing such other  Indebtedness  are permitted  under this Indenture) to
the lender of such Purchase Money Obligations, Capital Lease Obligations or FF&E
Financing;

      (xii)  whether  or  not  existing  on  the  Issue  Date,   Liens  securing
Obligations  under this Indenture,  the Notes, the Subsidiary  Guaranties or the
Security Documents;

                                       22
<PAGE>

      (xiii)  with  respect to any vessel  included in the  Collateral,  certain
maritime liens, including liens for crew's wages and salvage;

      (xiv) Liens in favor of the Company or any Subsidiary Guarantor,  in which
a security interest has been granted to the Trustee to secure the payment of the
Notes or a Subsidiary Guaranty, respectively;

      (xv) Liens arising from  precautionary  Uniform  Commercial Code financing
statement filings regarding  operating leases entered into by the Company or any
of the Subsidiaries in the ordinary course of business;

      (xvi) Liens incurred in the ordinary course of business  securing  Hedging
Obligations,  which Hedging Obligations relate to Indebtedness that is otherwise
permitted under this Indenture;

      (xvii)  Liens  existing  on the Issue Date to the extent and in the manner
such Liens are in effect on the Issue Date;

      (xviii)  Liens  on a  pledge  of the  Capital  Stock  of any  Unrestricted
Subsidiary securing any Indebtedness of such Unrestricted Subsidiary;

      (xix)  leases or  subleases  granted  to  others  not  interfering  in any
material  respect  with the  business  of the  Company or any of the  Restricted
Subsidiaries  or materially  detracting from the value of the relative assets of
the Company or any Restricted Subsidiary;

      (xx) Liens securing  reimbursement  obligations with respect to commercial
letters of credit that encumber  documents and other  property  relating to such
letters of credit and the products and proceeds thereof;

      (xxi) Liens securing intercompany Indebtedness incurred pursuant to clause
(v) of Section 4.7(b);

      (xxii) Liens securing guarantees by Subsidiary  Guarantors of Indebtedness
issued by the Company if such guarantees are permitted by Section 4.7;

      (xxiii) Liens upon specific items of inventory or other goods and proceeds
of any  Person  securing  such  Person's  obligations  in  respect  of  bankers'
acceptances  issued or created for the account of such Person to facilitate  the
purchase, shipment or storage of such inventory or other goods; and

      (xxiv) Liens securing Indebtedness of the Company or any of the Restricted
Subsidiaries incurred pursuant to clause (xiii) of Section 4.7(b); provided that
(a) such Liens do not extend to or cover any property or assets other than those
of the Gaming  Property  being  acquired  and (b) such  Liens are  contractually
subordinated to the Liens securing the Senior Credit Facility, the Notes and the
Subsidiary Guaranties.

                                       23
<PAGE>

      "Permitted  Tax  Distributions"  in respect  of the  Company  means,  with
respect to any  taxable  year or portion  thereof in which the Company is a Flow
Through  Entity,  the sum of: (i) the product of (a) the excess of (1) all items
of taxable income or gain (other than capital gain) of the Company for such year
or portion  thereof over (2) all items of taxable  deduction or loss (other than
capital  loss) of the  Company  for such  year or  portion  thereof  and (b) the
Applicable  Income Tax Rate,  plus (ii) the product of (a) the net capital  gain
(i.e., net long-term capital gain over net short-term  capital loss), if any, of
the Company for such year or portion thereof and (b) the Applicable Capital Gain
Tax Rate,  plus (iii) the product of (a) the net short-term  capital gain (i.e.,
net short-term capital gain in excess of net long-term capital loss), if any, of
the Company for such year or portion  thereof and (b) the Applicable  Income Tax
Rate,  minus (iv) the aggregate Tax Loss Benefit Amount for the Company for such
year or portion thereof;  provided, that in no event shall the Applicable Income
Tax Rate or the  Applicable  Capital Gain Tax Rate exceed the greater of (i) the
greater of (a) the  highest  aggregate  applicable  effective  marginal  rate of
Federal,  state,  and local income tax to which a corporation  doing business in
the state of  California  and (b) the  highest  aggregate  applicable  effective
marginal  rate of Federal,  state,  and local income tax to which a  corporation
doing  business in the state of  Louisiana,  would be subject to in the relevant
year of  determination  (as certified to the Trustee by a nationally  recognized
tax  accounting  firm) plus 5% and (ii) 60%.  For  purposes of  calculating  the
amount of the Permitted Tax  Distributions  the items of taxable  income,  gain,
deduction or loss (including capital gain or loss) of any Flow Through Entity of
which the Company is treated for  Federal  income tax  purposes as a member (but
only for periods for which such Flow Through Entity is treated as a Flow Through
Entity),  which items of income,  gain,  deduction  or loss are  allocated to or
otherwise treated as items of income, gain, deduction or loss of the Company for
Federal  income tax  purposes,  shall be  included  in  determining  the taxable
income, gain, deduction or loss (including capital gain or loss) of the Company.

      Estimated tax distributions may be made within thirty days following March
15, May 15,  August 15, and  December 15 based upon an estimate of the excess of
(x) the tax  distributions  that would be payable  for the period  beginning  on
January 1 of such year and ending on March 31, May 31,  August 31, and  December
31 if such  period were a taxable  year  (computed  as provided  above) over (y)
distributions attributable to all prior periods during such taxable year.

      The amount of the Permitted Tax  Distribution  for a taxable year shall be
re-computed  promptly after (i) the filing by the Company and each subsidiary of
the Company that is treated as a Flow Through Entity of their respective  annual
income tax returns and (ii) an  appropriate  Federal or state  taxing  authority
finally  determines  that the  amount  of the  items of  taxable  income,  gain,
deduction,  or loss of the Company or any such  subsidiary  that is treated as a
Flow  Through  Entity for such taxable  year or the  aggregate  Tax Loss Benefit
Amount carried  forward to such taxable year should be adjusted (each of clauses
(i) and (ii) a "Tax  Calculation  Event").  To the extent that the Permitted Tax
Distributions  previously  distributed in respect of any taxable year are either
greater than (a "Tax  Distribution  Overage") or less than (a "Tax  Distribution
Shortfall") the Permitted Tax  Distributions  with respect to such taxable year,
as

                                       24
<PAGE>

determined by reference to the computation of the amount of the items of income,
gain,  deduction,  or loss of the Company and each such subsidiary in connection
with a Tax  Calculation  Event,  the  amount  of  the  estimated  Permitted  Tax
Distributions   that  may  be  made  on  the  estimated  tax  distribution  date
immediately  following such Tax Calculation  Event shall be reduced or increased
as  appropriate  to the  extent  of the  Tax  Distribution  Overage  or the  Tax
Distribution  Shortfall.  To the extent that a Tax Distribution  Overage remains
after  the  estimated  tax  distribution  date  immediately  following  such Tax
Calculation  Event, the amount of the estimated  Permitted Tax Distribution that
may be made on the subsequent  estimated tax distribution  date shall be reduced
to the extent of such Tax Distribution Overage.

      Prior to making any Permitted Tax Distributions, the Company shall require
each  Equity  Holder to agree  that  promptly  after the  second  estimated  tax
distribution  date following a Tax Calculation  Event,  such Equity Holder shall
reimburse  the Company to the extent of its pro rata share (based on the portion
of Permitted Tax Distributions distributed to such Equity Holder for the taxable
year) of any remaining Tax Distribution Overage.

      "Person" means any individual,  corporation,  limited  liability  company,
partnership,   joint  venture,   association,   joint  stock   company,   trust,
unincorporated  organization,  government or any agency or political subdivision
thereof, or any other entity.

      "PGC Corp." means Peninsula Gaming Corporation, a Delaware corporation and
a co-obligor of the DJL Notes.

      "PGP" means Peninsula Gaming Partners,  LLC, a Delaware limited  liability
company,  the direct  parent and sole manager of the  Company,  and the indirect
parent of Capital Corp.

      "Private   Placement  Legend"  means  the  legend  set  forth  in  Section
2.6(g)(i)(A) hereof to be placed on all Notes issued under this Indenture except
where specifically stated otherwise by the provisions of this Indenture.

      "Pro Forma" or "pro forma" shall have the meaning set forth in  Regulation
S-X of the Securities Act, unless otherwise specifically stated herein.

      "Purchase Money Obligations" means Indebtedness representing,  or incurred
to finance (or to Refinance  Indebtedness incurred to finance),  the cost (i) of
acquiring any assets  (including  FF&E) and (ii) of construction or build-out of
facilities (including Purchase Money Obligations of any other Person at the time
such  other  Person  is  merged  with or into or is  otherwise  acquired  by the
Issuers);  provided, that (a) the principal amount of such Indebtedness does not
exceed 75% of such cost, including  construction  charges, (b) any Lien securing
such  Indebtedness does not extend to or cover any other asset or property other
than the asset or property  being so acquired,  constructed  or built and assets
which,  immediately prior to the incurrence of such Purchase Money  Obligations,
secured other  Indebtedness of the Issuers and the Restricted  Subsidiaries  (to
the  extent  such  other   Indebtedness   and  the  Liens  securing  such  other
Indebtedness are

                                       25
<PAGE>

permitted   under  this   Indenture)  to  the  lender  of  such  Purchase  Money
Obligations,  and (c) such Indebtedness is (or the Indebtedness being Refinanced
was) incurred,  and any Liens with respect thereto are granted,  within 180 days
of the acquisition or commencement of construction or build-out of such property
or asset.

      "QIB" means a "qualified institutional buyer" as defined in Rule 144A.

      "Qualified Capital Stock" means, with respect to any Person, Capital Stock
of such Person other than Disqualified Capital Stock.

      "Reg S Permanent  Global  Note" means one or more  permanent  Global Notes
bearing  the  Private  Placement  Legend,  that shall be issued in an  aggregate
amount of  denominations  equal in total to the outstanding  principal amount of
the Reg S Temporary Global Note upon expiration of the  Distribution  Compliance
Period.

      "Reg S Temporary  Global  Note" means one or more  temporary  Global Notes
bearing the Private Placement Legend and the Reg S Temporary Global Note Legend,
issued in an aggregate amount of denominations equal in total to the outstanding
principal  amount  of the  Notes  initially  sold in  reliance  on  Rule  903 of
Regulation S.

      "Reg S Temporary Global Note Legend" means the legend set forth in Section
2.6(g)(iii) hereof, which is required to be placed on all Reg S Temporary Global
Notes issued under this Indenture.

      "Registration  Rights Agreement" means the Registration  Rights Agreement,
dated as of the Issue Date, by and among the Issuers and the other parties named
on the signature  pages thereof,  as such agreement may be amended,  modified or
supplemented from time to time.

      "Regulation S" means Regulation S promulgated under the Securities Act, as
it may be amended from time to time, and any successor provision thereto.

      "Regulation S Global Note" means a Reg S Temporary  Global Note or a Reg S
Permanent Global Note, as the case may be.

      "Related  Business"  means any  business in which PGP,  the Company or any
Subsidiary  of the  Company  was engaged on the Issue Date and any and all other
businesses  that in the good faith  judgment of the  Managers of the Company are
similar,  related,  ancillary or complementary to such business,  including, but
not limited to, the  entertainment  and hotel  businesses  and food and beverage
distribution operations.

      "Related  Person"  means any Person who  controls,  is controlled by or is
under common  control with an Excluded  Person;  provided,  that for purposes of
this definition "control" means the beneficial ownership of more than 50% of the
total voting power of the Voting Stock of a Person.

      "Reorganization Transactions" means the following transactions, satisfying
all of the following requirements:

                                       26
<PAGE>

      (a) the transfer or contribution by PGP of all of the Equity  Interests of
DJL to Peninsula Gaming, provided that:

            (1) immediately  prior to such transfer or  contribution,  Peninsula
Gaming is a wholly owned subsidiary of PGP and does not hold any assets,  is not
liable  for any  obligations  and has not  previously  engaged  in any  business
activities;

            (2)  concurrently  with such  transfer  or  contribution,  Peninsula
Gaming executes (w) a supplemental indenture, in substantially the form attached
as Exhibit G to this  Indenture,  pursuant to which  Peninsula  Gaming becomes a
party to this Indenture and an "Issuer" for all purposes  under the Notes,  this
Indenture,   the  Security  Documents,   the  Intercreditor  Agreement  and  the
Registration  Rights  Agreement  and liable for all  Obligations  of an "Issuer"
thereunder,  (x) a joinder to each of the Purchase  Agreement,  the Registration
Rights Agreement and the  Intercreditor  Agreement,  in  substantially  the form
attached as an exhibit  thereto,  (y) a supplement  to the  applicable  Security
Documents,  in substantially  the form attached as an exhibit  thereto,  and (z)
such other  documents  as may be  necessary  to  reflect  the  Peninsula  Gaming
becoming an "Issuer" of the Notes; and

            (3)   immediately   after   giving   effect  to  such   transfer  or
contribution,  DJL is a direct,  Wholly Owned Subsidiary of Peninsula  Gaming, a
Restricted Subsidiary and a co-Issuer of the Notes;

      (b)  following  the transfer or  contribution  described in paragraph  (a)
above,  Peninsula  Gaming  causing  each of its  Wholly  Owned  Subsidiaries  to
transfer or  distribute  all of the Equity  Interests of OED Corp.  to Peninsula
Gaming, with the result that immediately after giving effect to such transfer or
distribution, OED Corp. is a direct, wholly owned subsidiary of Peninsula Gaming
and remains a co-Issuer of the Notes;

      (c)  following  the transfer or  distribution  described in paragraph  (b)
above,  Peninsula  Gaming  causing  each of its  Wholly  Owned  Subsidiaries  to
transfer or distribute all of the Equity  Interests of OED to Peninsula  Gaming,
with the result that:

            (1) OED shall remain a  Subsidiary  Guarantor,  notwithstanding  the
provisions of this Indenture governing the release of Subsidiary Guarantors upon
their sale or disposition; and

            (2)   immediately   after   giving   effect  to  such   transfer  or
distribution,  OED is a direct,  wholly owned subsidiary of Peninsula  Gaming, a
Subsidiary Guarantor and a Restricted Subsidiary;

      (d)  following  the transfer or  distribution  described in paragraph  (c)
above,  the  designation of OEDA as an  Unrestricted  Subsidiary,  and Peninsula
Gaming causing its Wholly Owned Subsidiary DJL, to transfer or distribute all of
the Equity  Interests  of OEDA to PGP with the result that OEDA becomes a sister
entity to Peninsula Gaming;  provided,  however, that the transactions described
in this paragraph (d) shall be excluded from the definition of an Asset Sale, an
Affiliate  Transaction  or a Restricted

                                       27
<PAGE>

Payment  and shall not be  subject  to any  covenant  in this  Indenture  to the
extent,  and  only  to the  extent,  that  such  transactions  could  have  been
consummated on the Issue Date prior to issuance of the Notes,  assuming that the
requisite  regulatory  approvals had been obtained  prior to the Issue Date, and
assuming that the transfer or distribution  described in paragraph (c) above had
occurred  prior to the  transactions  described in this  paragraph (d) (it being
understood and agreed, for the avoidance of doubt, that no such transaction that
could have been  consummated  on the Issue Date could have  included  any assets
acquired  by OEDA  subsequent  to the Issue Date  (other than as a result of the
Management Services Agreement)); and

      (e) the liquidation or dissolution of PGC Corp.;  provided,  that (i) none
of the DJL Notes are outstanding and (ii) PGC Corp. does not hold any assets, is
not liable for any  obligations  and has not engaged in any business  activities
other than being a co-obligor of the DJL Notes;

provided further that (i) immediately  prior to the foregoing  transactions,  no
Event of Default exists, and (ii) the foregoing transactions would not result in
the loss or suspension or material  impairment  of any Gaming  License  unless a
comparable  replacement  Gaming License is effective prior to or  simultaneously
with such loss, suspension or material impairment.

      For the avoidance of doubt, an agreement or arrangement shall not cease to
constitute an agreement or  arrangement  "as in effect on the Issue Date" solely
because Peninsula Gaming has been substituted for DJL or OED as a party thereto,
or has otherwise  become a party thereto,  in each case solely as a result of or
in connection with the Reorganization Transactions.

      "Requisite  Regulatory  Approvals"  means the  approvals by the  Louisiana
Gaming  Control  Board,  the  Louisiana  Racing  Commission  and the Iowa Gaming
Control Board.

      "Required Regulatory  Redemption" means a redemption by the Issuers of any
Holder's  Notes  pursuant  to,  and  in  accordance   with,  any  order  of  any
Governmental Authority with appropriate jurisdiction and authority relating to a
Gaming  License,  or to the  extent  necessary  in the  reasonable,  good  faith
judgment of the  Managers of the Company to prevent the loss,  failure to obtain
or material  impairment or to secure the  reinstatement  of, any Gaming License,
where  such  redemption  or  acquisition  is  required  because  the  Holder  or
beneficial  owner of Notes is  required  to be found  suitable  or to  otherwise
qualify  under  any  gaming or  similar  laws and is not  found  suitable  or so
qualified  within 30 days after being  requested to do so (or such lesser period
that may be required by any Governmental Authority).

      "Responsible  Officer" shall mean,  when used with respect to the Trustee,
any officer within the corporate trust department of the Trustee,  including any
vice president,  assistant vice president, assistant treasurer, trust officer or
any other officer of the Trustee who customarily  performs  functions similar to
those  performed  by the  persons  who at  the  time  shall  be  such  officers,
respectively, or to whom any corporate

                                       28
<PAGE>

trust matter is referred  because of such person's  knowledge of and familiarity
with the particular subject.

      "Restricted  Definitive  Note" means one or more Definitive  Notes bearing
the Private Placement Legend, issued under this Indenture.

      "Restricted  Global  Note"  means one or more  Global  Notes  bearing  the
Private Placement Legend, issued under this Indenture; provided, that in no case
shall an Exchange Note issued in accordance with this Indenture and the terms of
the Registration Rights Agreement be a Restricted Global Note.

      "Restricted  Investment"  means  an  Investment  other  than  a  Permitted
Investment.

      "Restricted Payments" means:

      (i) any dividend or other distribution  declared or paid on account of any
Equity  Interests of the Company or any of the  Restricted  Subsidiaries  or any
other payment to any Excluded  Person of Affiliate  thereof (other than, in each
case, (a) dividends or  distributions  payable in Equity  Interests  (other than
Disqualified Capital Stock) of the Company or (b) amounts payable to the Company
or any Restricted Subsidiary);

      (ii) any payment to purchase,  redeem or  otherwise  acquire or retire for
value any Equity Interest of the Company, any Restricted Subsidiary or any other
Affiliate  of the  Company  (other than any such  Equity  Interest  owned by the
Company or any Restricted Subsidiary);

      (iii) any  principal  payment on, or purchase,  redemption,  defeasance or
other acquisition or retirement for value of, any Indebtedness of the Company or
any Subsidiary Guarantor that is contractually  subordinated in right of payment
to the Notes or such Subsidiary  Guarantor's Subsidiary Guaranty thereof, as the
case may be, prior to any scheduled  principal payment,  sinking fund payment or
other payment at the stated maturity thereof; or

      (iv) any Restricted Investment.

      "Restricted  Subsidiary"  means  any  Subsidiary  which  at  the  time  of
determination is not an Unrestricted Subsidiary.

      "Return from Unrestricted  Subsidiaries" means (a) 50% of any dividends or
distributions  received  by the  Company  or a  Restricted  Subsidiary  from  an
Unrestricted Subsidiary, to the extent that such dividends or distributions were
not otherwise  included in Consolidated  Net Income of the Company,  plus (b) to
the extent not otherwise included in Consolidated Net Income of the Company,  an
amount equal to the net reduction in  Investments in  Unrestricted  Subsidiaries
resulting  from (i)  repayments  of the  principal of loans or advances or other
transfers  of  assets  to  the  Company  or  any  Restricted   Subsidiary   from
Unrestricted  Subsidiaries  or (ii) the sale or liquidation of any

                                       29
<PAGE>

Unrestricted  Subsidiaries,  plus  (c)  to  the  extent  that  any  Unrestricted
Subsidiary of the Company is designated to be a Restricted Subsidiary,  the fair
market value of the Company's  Investment in such Subsidiary on the date of such
designation.

      "Rule 144" means Rule 144 promulgated  under the Securities Act, as it may
be amended from time to time, and any successor provision thereto.

      "Rule 144A" means Rule 144A  promulgated  under the Securities  Act, as it
may be amended from time to time, and any successor provision thereto.

      "SEC" means the United States Securities and Exchange  Commission,  or any
successor agency.

      "Secured  Party" means the Trustee,  acting as collateral  agent under the
Security Documents.

      "Securities  Act" means the  Securities  Act of 1933, as amended,  and the
rules and regulations of the SEC promulgated thereunder.

      "Security Agreement" means that agreement dated the date hereof granting a
security  interest in the Collateral from the Issuers (and any future Subsidiary
Guarantors) in favor of the Trustee.

      "Security  Documents" means,  collectively,  the Security  Agreement,  the
Mortgages  and all  mortgages,  deeds  of  trust,  security  agreements,  pledge
agreements,  control  agreements,  collateral  assignment  agreements  and other
agreements,  instruments,  financing statements and other documents  evidencing,
creating,  setting  forth or  limiting  any Lien on  Collateral  in favor of the
Trustee (or, in the case of mortgages,  deeds of trust or similar agreements, in
favor of the  Trustee or another  trustee  thereunder),  for the  benefit of the
Holders.

      "Seller  Preferred"  means  $4,000,000  face  amount  of DJL's  redeemable
preferred membership  interests held by Greater Dubuque Riverboat  Entertainment
Company,  L.C. on the Issue Date  (without  giving  effect to any  amendment  or
supplement  thereto or  modification  thereof,  except  for any such  amendment,
supplement or modification  that is not more  disadvantageous  to the Holders in
any material  respect than the original  terms thereof as in effect on the Issue
Date).

      "Senior Credit Facility" means any one or more revolving credit agreements
or  similar  instruments,   including,  without  limitation,   working  capital,
construction  financing or equipment  purchase lines of credit,  entered into by
the Company or any of the Restricted  Subsidiaries governing the terms of a bona
fide borrowing from (i) a third party  financial  institution  that is primarily
engaged in the business of commercial lending or (ii) a vendor or other provider
of financial  accommodations  in connection  with the purchase of equipment,  in
either  case  for  valid  business   purposes,   including  any  related  notes,
guarantees,   collateral  documents,  instruments  and  agreements  executed  in
connection therewith and, in each case, as

                                       30
<PAGE>

amended, renewed, refunded, replaced or refinanced from time to time, whether in
whole or in part;  provided,  that such  agreements or instruments do not permit
the  Company  and the  Restricted  Subsidiaries,  taken  as a  whole,  to  incur
Indebtedness under all such agreements or instruments in an aggregate  principal
amount at any time  outstanding  in excess of the  maximum  aggregate  principal
amount of  Indebtedness  permitted  to be  incurred  pursuant  to clause  (i) of
Section 4.7(b).

      "Shelf  Registration  Statement"  shall have the  meaning set forth in the
Registration Rights Agreement.

      "Significant  Subsidiary" shall have the meaning provided under Regulation
S-X of the Securities Act, as in effect on the Issue Date.

      "Special Record Date" means, for payment of any Defaulted Interest, a date
fixed by the Paying Agent pursuant to Section 2.12 hereof.

      "S&P"  means  Standard  &  Poor's  Ratings  Services,  a  division  of The
McGraw-Hill Companies, and its successors.

      "Stated  Maturity,"  when used with  respect to any Note,  means April 15,
2012.

      "subsidiary"  means,  with  respect to any  Person,  (i) any  corporation,
association or other business entity (including a limited liability  company) of
which more than 50% of the total voting power of shares of Voting Stock  thereof
is at the time owned or controlled,  directly or  indirectly,  by such Person or
one or more of the other  subsidiaries  of that Person or a combination  thereof
and (ii) any  partnership in which such Person or any of its  subsidiaries  is a
general partner.

      "Subsidiary" means any subsidiary of the Company.

      "Subsidiary Guaranty" means an unconditional and irrevocable guaranty by a
Subsidiary  Guarantor of the Obligations of the Issuers under the Notes and this
Indenture,  on a senior  unsecured  basis,  as set forth in this  Indenture,  as
amended from time to time in accordance with the terms thereof.

      "Subsidiary  Guarantor"  means  each of the  Issuers'  present  and future
Restricted  Subsidiaries  other  than  Foreign  Subsidiaries  and other than any
Restricted Subsidiary that is a co-Issuer of the Notes.

      "Tax Loss  Benefit  Amount"  means with respect to any taxable  year,  the
amount by which the  Permitted  Tax  Distributions  would be reduced  were a net
operating  loss or net  capital  loss from a prior  taxable  year of the Company
ending  subsequent to the Issue Date carried  forward to the applicable  taxable
year; provided,  that for such purpose the amount of any such net operating loss
or net  capital  loss  shall be used only once and in each case shall be carried
forward to the next  succeeding  taxable  year until so used.  For  purposes  of
calculating the Tax Loss Benefit Amount,  the proportionate part of the items of
taxable income, gain, deduction, or loss (including capital gain or loss) of any

                                       31
<PAGE>

Subsidiary  that is a Flow Through Entity for a taxable year of such  Subsidiary
ending  subsequent to the Issue Date shall be included in determining the amount
of net operating loss or net capital loss of the Company.

      "TIA"  means  the  Trust   Indenture   Act  of  1939  (15  U.S.C.   ss.ss.
77aaa-77bbbb)  as in effect on the date on which  this  Indenture  is  qualified
under the TIA.

      "Transactions"  means the transactions  described in the Offering Circular
under the section "Transactions."

      "Transfer  Restricted  Notes" means Global Notes and Definitive Notes that
bear or are  required to bear the Private  Placement  Legend,  issued under this
Indenture.

      "Trustee"  means U.S.  Bank  National  Association,  as trustee under this
Indenture,  until a successor  replaces  it in  accordance  with the  applicable
provisions  of this  Indenture  and  thereafter  means  such  successor  serving
hereunder.

      "Unrestricted  Definitive Note" means one or more Definitive Notes that do
not bear and are not required to bear the Private Placement Legend, issued under
this Indenture.

      "Unrestricted  Global  Note"  means  one or more  permanent  Global  Notes
representing  a series of Notes that does not bear and is not  required  to bear
the Private Placement Legend, issued under this Indenture.

      "Unrestricted  Subsidiary"  means any Subsidiary  that, at or prior to the
time of determination, shall have been designated by the Managers of the Company
as an Unrestricted Subsidiary and each subsidiary of such Subsidiary;  provided,
that such Subsidiary or any of its  subsidiaries  does not hold any Indebtedness
or Capital Stock of, or any Lien on any assets of, the Company or any Restricted
Subsidiary.  If, at any time, any Unrestricted Subsidiary would fail to meet the
foregoing requirements as an Unrestricted Subsidiary,  it shall thereafter cease
to be an  Unrestricted  Subsidiary  for  purposes  of  this  Indenture  and  any
Indebtedness of such  Subsidiary  shall be deemed to be incurred by a Restricted
Subsidiary  as of  such  date.  The  Managers  of the  Company  may at any  time
designate any Unrestricted  Subsidiary to be a Restricted Subsidiary;  provided,
that such  designation  shall be deemed to be an incurrence of Indebtedness by a
Restricted  Subsidiary  of any  outstanding  Indebtedness  of such  Unrestricted
Subsidiary and such designation shall only be permitted if (i) such Indebtedness
is permitted under the Interest  Coverage Ratio test set forth in Section 4.7(a)
calculated  on a pro forma  basis as if such  designation  had  occurred  at the
beginning of the four-quarter  reference period, and (ii) no Default or Event of
Default would be in existence  following such designation.  The Company shall be
deemed to make an Investment in each  Subsidiary  designated as an  Unrestricted
Subsidiary  immediately  following  such  designation  in an amount equal to the
Investment in such  Subsidiary and its  subsidiaries  immediately  prior to such
designation.  Any such  designation  by the  Managers  of the  Company  shall be
evidenced  to the Trustee by filing  with the  Trustee a  certified  copy of the
resolution of the Managers

                                       32
<PAGE>

giving effect to such designation and an Officers'  Certificate  certifying that
such  designation  complies  with the foregoing  conditions  and is permitted by
Section 4.7(a).

      "Upper Tier Equity Holder"  means,  in the case of any Flow Through Entity
the Equity Holder of which is, in turn, a Flow Through  Entity,  the person that
is  ultimately  subject  to tax on a net  income  basis on the items of  taxable
income, gain,  deduction,  and loss of the Company and the Subsidiaries that are
Flow Through Entities.

      "U.S.  Person"  means a U.S.  person as defined in Rule  902(o)  under the
Securities Act.

      "Voting Stock" means, with respect to any Person,  (i) one or more classes
of the Capital  Stock of such Person  having  general  voting  power to elect at
least a majority of the Board of Directors,  managers or trustees of such Person
(regardless  of whether at the time Capital  Stock of any other class or classes
have or might have voting power by reason of the  happening of any  contingency)
and (ii) any Capital Stock of such Person  convertible or  exchangeable  without
restriction  at the  option of the holder  thereof  into  Capital  Stock of such
Person described in clause (i) above.

      "Warner Land" means the 93-acres of land  adjacent to the racino  acquired
by OED from Bart C. Warner pursuant to the Sale with Mortgage, dated October 24,
2003.

      "Weighted   Average  Life  to  Maturity"   means,   when  applied  to  any
Indebtedness  at  any  date,  the  number  of  years  (rounded  to  the  nearest
one-twelfth)  obtained by dividing (i) the then outstanding  principal amount of
such Indebtedness into (ii) the total of the product obtained by multiplying (a)
the amount of each then remaining installment,  sinking fund, serial maturity or
other required payments of principal,  including  payment at final maturity,  in
respect  thereof,  by (b)  the  number  of  years  (calculated  to  the  nearest
one-twelfth) that shall elapse between such date and the making of such payment.

      "Wholly Owned  Subsidiary" of any Person means a subsidiary of such Person
all the Capital Stock of which (other than directors'  qualifying shares and, in
the  case of DJL,  other  than  the  Seller  Preferred)  is  owned  directly  or
indirectly by such Person;  provided, that with respect to the Company, the term
Wholly Owned Subsidiary shall exclude Unrestricted Subsidiaries.

SECTION 1.2   OTHER DEFINITIONS

           Term                                        Defined in Section
           ----                                        ------------------
           "Affiliate Transaction"                     4.12
           "Authentication Order"                      2.2
           "Benefited Party"                           11.1
           "C Corporation"           Definition of Permitted C-Corp Conversion
           "Change of Control Offer"                   4.15
           "Change of Control Payment"                 4.15

                                       33
<PAGE>

           "Change of Control Payment Date"            4.15
           "Covenant Defeasance"                       8.3
           "Defaulted Interest"                        2.12
           "DTC"                                       2.3
           "Event of Default"                          6.1
           "Excess Proceeds"                           4.13
           "Excess Proceeds Offer"                     4.13
           "Excess Proceeds Offer Period"              4.13
           "Existing Holders"                 Definition of Excluded Person
           "Federal Flow Through Entity"      Definition of Flow Through Entity
           "Four Quarter Reference Period"             4.7
           "incur"                                     4.7
           "Investment Company Act"                    4.17
           "Legal Defeasance"                          8.2
           "Notes"                                    Preamble
           "Paying Agent"                              2.3
           "Purchase Amount"                           4.13
           "Refinance"                                 4.7
           "Refinancing Indebtedness"                  4.7
           "Registrar"                                 2.3
           "Replacement Vessel"                        4.13
           "Series A Notes"                           Preamble
           "Series B Notes"                           Preamble
           "Subsidiary Guaranty Obligations"           11.1
           "Tax Calculation Event"            Definition of Permitted Tax
                                                     Distributions
           "Tax Distribution Overage"         Definition of Permitted Tax
                                                     Distributions
           "Tax Distribution Shortfall"       Definition of Permitted Tax
                                                     Distributions

SECTION 1.3   INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT

      Whenever this  Indenture  refers to a provision of the TIA, such provision
is incorporated by reference in and made a part of this Indenture.

      The  following  TIA  terms  used  in this  Indenture  have  the  following
meanings:

      "Commission" means the SEC; and

      "obligor"  on the  Notes  means  each  of  the  Issuers,  each  Subsidiary
Guarantor and any successor obligor upon the Notes.

      All  other  terms  used in this  Indenture  that are  defined  by the TIA,
defined by TIA reference to another statute or defined by SEC rule under the TIA
have the meanings so assigned to them.

                                       34
<PAGE>

SECTION 1.4   RULES OF CONSTRUCTION

      Unless the context otherwise requires:

            (1) a term has the meaning assigned to it;

            (2) an  accounting  term  not  otherwise  defined  has  the  meaning
assigned to it in accordance with GAAP;

            (3) "or" is not exclusive;

            (4) words in the  singular  include  the  plural,  and in the plural
include the singular;

            (5) provisions apply to successive events and transactions;

            (6)  "herein,"  "hereof" and other words of similar  import refer to
this  Indenture as a whole and not to any particular  Article,  Section or other
subdivision;

            (7)  references to sections of or rules under the Securities Act and
the Exchange Act shall be deemed to include substitute, replacement of successor
sections or rules adopted by the SEC from time to time; and

            (8) references to the  "Intercreditor  Agreement"  shall mean if the
Intercreditor Agreement is then in effect.

                                   ARTICLE II
                                    THE NOTES

SECTION 2.1   FORM AND DATING

      (a) General.  The Notes and the Trustee's  certificate  of  authentication
shall be substantially in the form of Exhibit A hereto;  provided, that the form
of the Exchange Notes shall include such variations as are permitted or required
by the Registration Rights Agreement.

      The Notes may have  notations,  legends or  endorsements  required by law,
stock exchange rule, depository rule or usage. Each Note shall be dated the date
of its issuance and shall show the date of its  authentication.  The Notes shall
be in denominations of $1,000 and integral multiples thereof.

      The terms and provisions contained in the Notes shall constitute,  and are
hereby  expressly  made, a part of this  Indenture and each of the Issuers,  the
Subsidiary  Guarantors and the Trustee,  by their execution and delivery of this
Indenture, expressly agree to such terms and provisions and to be bound thereby.
However,  to the extent any  provision  of any Note  conflicts  with the express
provisions of this Indenture,  the provisions of this Indenture shall govern and
be controlling.

                                       35
<PAGE>

      (b) Global Notes.  Notes issued in global form shall be  substantially  in
the form of Exhibit A attached hereto  (including the Global Note Legend thereon
and the  "Schedule  of  Exchanges  of  Interests  in the Global  Note"  attached
thereto).  Notes issued in definitive form shall be substantially in the form of
Exhibit A attached  hereto  (but  without  the Global  Note  Legend  thereon and
without the  "Schedule of  Exchanges  of Interests in the Global Note"  attached
thereto).  Each Global Note shall  represent  such of the  outstanding  Notes as
shall be specified  therein and each shall  provide that it shall  represent the
aggregate  principal  amount of  outstanding  Notes  from time to time  endorsed
thereon and that the aggregate principal amount of outstanding Notes represented
thereby  may from time to time be  reduced  or  increased,  as  appropriate,  to
reflect  exchanges and redemptions.  Any endorsement of a Global Note to reflect
the amount of any  increase  or decrease in the  aggregate  principal  amount of
outstanding Notes represented  thereby shall be made by the Trustee or the Notes
Custodian,  at the  direction of the Trustee,  in accordance  with  instructions
given by the Holder thereof as required by Section 2.6 hereof.

      (c) Euroclear and Clearstream Procedures Applicable. The provisions of the
"Operating  Procedures  of the  Euroclear  System"  and  "Terms  and  Conditions
Governing Use of Euroclear" and the "General Terms and Conditions of Clearstream
Banking Luxembourg" and "Customer Handbook" of Clearstream Banking Luxembourg in
effect at the relevant  time shall be  applicable  to  transfers  of  beneficial
interests in the Regulation S Global Notes that are held by Participants through
Euroclear or Clearstream Banking Luxembourg.

SECTION 2.2   EXECUTION AND AUTHENTICATION

      Two  Officers  shall  sign the Notes for each of the  Issuers by manual or
facsimile  signature.  In the case of Definitive  Notes,  such signatures may be
imprinted or otherwise  reproduced on such Notes.  If an Officer whose signature
is on a Note no longer  holds that  office at the time a Note is  authenticated,
the  Note  shall  nevertheless  be  valid.  A  Note  shall  not be  valid  until
authenticated  by the manual  signature of the Trustee.  The signature  shall be
conclusive  evidence that the Note has been authenticated  under this Indenture.
The Trustee shall,  upon a written order of the Issuers signed by an Officer (an
"Authentication  Order"),  authenticate  Notes for issuance up to the  aggregate
principal  amount  stated in such  Authentication  Order;  provided  that  Notes
authenticated  for issuance on the Issue Date shall not exceed  $233,000,000  in
aggregate  principal  amount.  The Trustee may appoint an  authenticating  agent
acceptable to the Issuers to  authenticate  Notes. An  authenticating  agent may
authenticate  Notes  whenever  the  Trustee may do so.  Each  reference  in this
Indenture  to  authentication  by the Trustee  includes  authentication  by such
agent.  An  authenticating  agent  has the same  rights as an Agent to deal with
Holders or an Affiliate of the Issuers.

SECTION 2.3   REGISTRAR, PAYING AGENT AND DEPOSITARY

      The  Issuers  shall  maintain  an  office  or  agency  in the  Borough  of
Manhattan,  The City of New York,  which shall  initially be U.S.  Bank National
Association,  where (i) Notes may be presented for  registration  of transfer or
for exchange

                                       36
<PAGE>

("Registrar") and (ii) Notes may be presented for payment ("Paying Agent").  The
Registrar shall keep a register of the Notes and of their transfer and exchange.
The Issuers may appoint  one or more  co-registrars  and one or more  additional
paying  agents.  The term  "Registrar"  includes any  co-registrar  and the term
"Paying Agent" includes any additional  paying agent. The Issuers may change any
Paying Agent or Registrar without notice to any Holder. The Issuers shall notify
the  Trustee in writing of the name and address of any Agent not a party to this
Indenture.  If the  Issuers  fail to  appoint  or  maintain  another  entity  as
Registrar or Paying Agent,  the Trustee shall act as such. The Company or any of
its  subsidiaries  may act as Paying Agent or Registrar.  The Issuers  initially
appoint The Depository  Trust Company  ("DTC") to act as Depositary with respect
to the Global  Notes.  The Issuers  initially  appoint the Trustee to act as the
Registrar  and Paying  Agent and to act as Notes  Custodian  with respect to the
Global Notes.

SECTION 2.4   PAYING AGENT TO HOLD MONEY IN TRUST

      The Issuers  shall  require  each  Paying  Agent other than the Trustee to
agree in writing  that the Paying  Agent  shall hold in trust for the benefit of
Holders or the  Trustee  all money held by the Paying  Agent for the  payment of
principal,  premium or Liquidated Damages, if any, or Interest on the Notes, and
shall  notify  the  Trustee  of any  default  by the  Issuers in making any such
payment.  While any such  default  continues,  the  Trustee may require a Paying
Agent to pay all money held by it to the  Trustee.  The  Issuers at any time may
require a Paying Agent to pay all money held by it to the Trustee.  Upon payment
over to the  Trustee,  the Paying Agent (if other than the Company or one of its
subsidiaries)  shall have no further  liability for the money. If the Company or
one of its  subsidiaries  acts as Paying Agent, it shall segregate and hold in a
separate  trust  fund for the  benefit  of the  Holders  all money held by it as
Paying Agent. Upon any bankruptcy or reorganization  proceedings relating to the
Issuers, the Trustee shall serve as Paying Agent for the Notes.

SECTION 2.5   HOLDER LISTS

     The  Trustee  shall  preserve  in  as  current  a  form  as  is  reasonably
practicable  the most recent list  available to it of the names and addresses of
all Holders and shall otherwise  comply with TIA Section 312(a).  If the Trustee
is not the Registrar,  the Issuers shall  furnish,  or shall cause the Registrar
(if other  than the  Company  or one of its  subsidiaries)  to  furnish,  to the
Trustee at least seven  Business Days before each  Interest  Payment Date and at
such other times as the Trustee may request in writing,  a list in such form and
as of such date as the Trustee may reasonably require of the names and addresses
of the Holders of Notes and the Issuers shall otherwise  comply with TIA Section
312(a).

SECTION 2.6   TRANSFER AND EXCHANGE

      (a)  Transfer  and  Exchange  of Global  Notes.  A Global  Note may not be
transferred  except as a whole by the Depositary to a nominee of the Depositary,
by a nominee of the  Depositary to the  Depositary or to another  nominee of the
Depositary,  or by the Depositary or any such nominee to a successor  Depositary
or a nominee of such

                                       37
<PAGE>

successor  Depositary.  All Global  Notes shall be  exchanged by the Issuers for
Definitive  Notes if (i) the  Issuers  deliver to the  Trustee  notice  from the
Depositary  that (x) the Depositary is unwilling or unable to continue to act as
Depositary  for the Global Notes or (y) the  Depositary  is no longer a clearing
agency  registered  under the Exchange Act, and in either case, the Issuers fail
to  appoint  a  successor  Depositary  within  90 days of such  notice  from the
Depositary,  (ii) the  Issuers,  in their sole  discretion,  determine  that the
Global Notes (in whole but not in part) should be exchanged for Definitive Notes
and  delivers  a written  notice to such  effect to the  Trustee  or (iii)  upon
request of the  Trustee or Holders  of a  majority  of the  aggregate  principal
amount of  outstanding  Notes if there shall have  occurred and be  continuing a
Default or Event of Default  with  respect  to the Notes;  provided,  that in no
event shall the Reg S  Temporary  Global  Note be  exchanged  by the Issuers for
Definitive  Notes prior to (x) the  expiration  of the  Distribution  Compliance
Period and (y) the receipt by the Registrar of any certificate identified by the
Issuers and their counsel to be required  pursuant to Rule 903 or Rule 904 under
the Securities  Act. Upon the occurrence of any of the preceding  events in (i),
(ii) or (iii)  above,  Definitive  Notes  shall be issued  in such  names as the
Depositary  shall  instruct the  Trustee.  Global Notes also may be exchanged or
replaced,  in whole or in part,  as provided in  Sections  2.7 and 2.10  hereof.
Every Note  authenticated and delivered in exchange for, or in lieu of, a Global
Note or any portion thereof, pursuant to this Section 2.6 or Section 2.7 or 2.10
hereof,  shall be  authenticated  and  delivered in the form of, and shall be, a
Global Note.  A Global Note may not be exchanged  for another Note other than as
provided in this Section 2.6(a), however,  beneficial interests in a Global Note
may be  transferred  and  exchanged  as provided in Section  2.6(b),  (c) or (f)
hereof.

      (b) Transfer and Exchange of Beneficial Interests in the Global Notes. The
transfer  and  exchange of  beneficial  interests  in the Global  Notes shall be
effected  through the  Depositary,  in  accordance  with the  provisions of this
Indenture and the Applicable Procedures.  Beneficial interests in the Restricted
Global Notes shall be subject to  restrictions  on transfer  comparable to those
set forth  herein to the extent  required by the  Securities  Act.  Transfers of
beneficial  interests in the Global  Notes also shall  require  compliance  with
either  subparagraph (1) or (2) below, as applicable,  as well as one or more of
the other following subparagraphs, as applicable:

            (1)  Transfer  of  Beneficial  Interests  in the Same  Global  Note.
Beneficial interests in any Restricted Global Note may be transferred to Persons
who take  delivery  thereof  in the form of a  beneficial  interest  in the same
Restricted Global Note in accordance with the transfer restrictions set forth in
the Private Placement Legend; provided, however, that prior to the expiration of
the Distribution Compliance Period, transfers of beneficial interests in the Reg
S Temporary  Global Note may not be made to a U.S.  Person or for the account or
benefit of a U.S. Person (other than an Initial Purchaser). Beneficial interests
in any Unrestricted  Global Note may be transferred to Persons who take delivery
thereof in the form of a beneficial  interest in an Unrestricted Global Note. No
written  orders  or  instructions  shall  be  required  to be  delivered  to the
Registrar to effect the transfers  described in this Section 2.6(b)(1),  but the
Issuers or the Trustee may request an Opinion of Counsel.

                                       38
<PAGE>

            (2) All Other  Transfers and  Exchanges of  Beneficial  Interests in
Global Notes (including for Definitive  Notes). In connection with all transfers
and exchanges of beneficial  interests that are not subject to Section 2.6(b)(1)
above, the transferor of such beneficial  interest must deliver to the Registrar
either (A) (1) an order from a Participant or an Indirect  Participant  given to
the  Depositary  in  accordance  with the  Applicable  Procedures  directing the
Depositary  to credit or cause to be credited a  beneficial  interest in another
Global Note in an amount equal to the  beneficial  interest to be transferred or
exchanged  and  (2)  instructions   given  in  accordance  with  the  Applicable
Procedures  containing  information  regarding  the  Participant  account  to be
credited  with  such  increase  or (B) (1) an  order  from a  Participant  or an
Indirect  Participant  given to the Depositary in accordance with the Applicable
Procedures  directing the Depositary to cause to be issued a Definitive  Note in
an amount equal to the  beneficial  interest to be  transferred or exchanged and
(2) instructions given by the Depositary to the Registrar containing information
regarding the Person in whose name such  Definitive  Note shall be registered to
effect the transfer or exchange referred to in (B)(1) above;  provided,  that in
no event  shall  Definitive  Notes be issued  upon the  transfer  or exchange of
beneficial  interests  in the  Reg S  Temporary  Global  Note  prior  to (x) the
expiration  of the  Distribution  Compliance  Period and (y) the  receipt by the
Registrar of any  certificates  identified by the Issuers or their counsel to be
required  pursuant  to Rule 903 and Rule 904  under  the  Securities  Act.  Upon
consummation  of an Exchange  Offer by the Issuers in  accordance  with  Section
2.6(f) hereof,  the  requirements  of this Section  2.6(b)(2) shall be deemed to
have been satisfied upon receipt by the Registrar of the instructions  contained
in the  Letter  of  Transmittal  delivered  by the  Holder  of  such  beneficial
interests  in the  Restricted  Global  Notes.  Upon  satisfaction  of all of the
requirements  for transfer or exchange of  beneficial  interests in Global Notes
contained  in this  Indenture  and the Notes or otherwise  applicable  under the
Securities  Act, the Trustee shall adjust the  principal  amount of the relevant
Global Note(s) pursuant to Section 2.6(h) hereof.

            (3) Transfer of Beneficial  Interests to Another  Restricted  Global
Note. A beneficial  interest in any Restricted Global Note may be transferred to
a Person who takes  delivery  thereof in the form of a  beneficial  interest  in
another Restricted Global Note if the transfer complies with the requirements of
Section 2.6(b)(2) above and the Registrar receives the following:

                  (A) if the  transferee  shall take  delivery  in the form of a
beneficial  interest in the 144A Global Note, then the transferor must deliver a
certificate  in the form of Exhibit B hereto,  including the  certifications  in
item (1) thereof;

                  (B) if the  transferee  shall take  delivery  in the form of a
beneficial  interest in the 501 Global Note,  then the transferor must deliver a
certificate  in the form of Exhibit B hereto,  including the  certifications  in
item (3)(d) thereof; or

                  (C) if the  transferee  shall take  delivery  in the form of a
beneficial  interest in the Reg S  Temporary  Global Note or the Reg S Permanent
Global  Note,  then the  transferor  must deliver a  certificate  in the form of
Exhibit B hereto, including the certifications in item (2) thereof.

                                       39
<PAGE>

            (4) Transfer and  Exchange of  Beneficial  Interests in a Restricted
Global  Note  for  Beneficial  Interests  in  an  Unrestricted  Global  Note.  A
beneficial interest in any Restricted Global Note may be exchanged by any holder
thereof for a beneficial  interest in an Unrestricted Global Note or transferred
to a Person who takes delivery  thereof in the form of a beneficial  interest in
an  Unrestricted  Global  Note if the  exchange or  transfer  complies  with the
requirements of Section 2.6(b)(2) above and:

                  (A) such  exchange or  transfer  is  effected  pursuant to the
Exchange Offer in accordance with the Registration  Rights Agreement and Section
2.6(f) hereof, and the holder of the beneficial  interest to be transferred,  in
the case of an exchange, or the transferee, in the case of a transfer, certifies
in the applicable Letter of Transmittal that it is not (1) a Broker-Dealer,  (2)
a Person participating in the distribution of the Exchange Notes or (3) a Person
who is an affiliate (as defined in Rule 144) of the Issuers;

                  (B)  such   transfer  is   effected   pursuant  to  the  Shelf
Registration  Statement in accordance with the Registration Rights Agreement and
a  certificate  to the  effect  set forth in  Exhibit B  hereto,  including  the
certifications in item (3)(c) thereof, is delivered by the transferor;

                  (C) such transfer is effected by a  Broker-Dealer  pursuant to
the Exchange Offer  Registration  Statement in accordance with the  Registration
Rights  Agreement and a certificate to the effect set forth in Exhibit B hereto,
including  the  certifications  in item  (3)(c)  thereof,  is  delivered  by the
transferor; or

                  (D) the Registrar receives the following: (1) if the holder of
such beneficial  interest in a Restricted  Global Note proposes to exchange such
beneficial  interest for a beneficial interest in an Unrestricted Global Note, a
certificate  from such  holder in the form of  Exhibit C hereto,  including  the
certifications  in item (1)(a) thereof;  or (2) if the holder of such beneficial
interest in a  Restricted  Global Note  proposes  to  transfer  such  beneficial
interest to a Person who shall take delivery thereof in the form of a beneficial
interest in an Unrestricted  Global Note, a certificate  from such holder in the
form of Exhibit B hereto, including the certifications in item (4) thereof; and,
in each such case set forth in this  subparagraph  (D), an Opinion of Counsel in
form,  and from legal  counsel,  reasonably  acceptable to the Registrar and the
Issuers to the effect that such exchange or transfer is in  compliance  with the
Securities Act and that the restrictions on transfer contained herein and in the
Private Placement Legend are no longer required in order to maintain  compliance
with the Securities Act.

      If any such transfer is effected pursuant to subparagraph (B) or (D) above
at a time when an Unrestricted  Global Note has not yet been issued, the Issuers
shall issue and,  upon receipt of an  Authentication  Order in  accordance  with
Section 2.2 hereof,  the Trustee  shall  authenticate  one or more  Unrestricted
Global Notes in an aggregate  principal amount equal to the aggregate  principal
amount of beneficial  interests  transferred pursuant to subparagraph (B) or (D)
above.  Beneficial  interests in an Unrestricted Global Note cannot be exchanged
for,  or  transferred  to Persons  who take  delivery  thereof in the form of, a
beneficial interest in a Restricted Global Note.

                                       40
<PAGE>

      (c) Transfer and Exchange of Beneficial  Interests for  Definitive  Notes.
Transfer and exchange of beneficial interests in the Global Notes for Definitive
Notes shall be made  subject to  compliance  with this Section  2.6(c),  and the
requesting Holder shall provide any  certifications,  documents and information,
as  applicable,  required  pursuant to the following  provisions of this Section
2.6(c). Upon receipt of such applicable  documentation,  the Trustee shall cause
the  aggregate  principal  amount of the  applicable  Restricted  Global Note or
Unrestricted Global Note, as applicable,  to be reduced accordingly  pursuant to
Section  2.6(h)  hereof,  and the Issuers  shall execute and, upon receipt of an
Authentication Order pursuant to Section 2.2, the Trustee shall authenticate and
deliver to the Person  designated in the  instructions  a Restricted  Definitive
Note or an  Unrestricted  Definitive  Note, as  applicable,  in the  appropriate
principal  amount.  Any  Definitive  Note  issued in exchange  for a  beneficial
interest in a Global Note pursuant to this Section 2.6(c) shall be registered in
such name or names and in such authorized  denomination or  denominations as the
Holder  of  such  beneficial  interest  shall  instruct  the  Registrar  through
instructions  from the Depositary and the  Participant or Indirect  Participant.
The Trustee  shall deliver such  Definitive  Notes to the Persons in whose names
such Definitive Notes are so registered.

            (1)  Beneficial  Interests in Restricted  Global Notes to Restricted
Definitive Notes. If any holder of a beneficial  interest in a Restricted Global
Note proposes to exchange such beneficial  interest for a Restricted  Definitive
Note or to transfer  such  beneficial  interest  to a Person who takes  delivery
thereof in the form of a Restricted  Definitive  Note, then, upon receipt by the
Registrar of the following documentation:

                  (A) if the holder of such beneficial  interest in a Restricted
Global Note  proposes to exchange  such  beneficial  interest  for a  Restricted
Definitive Note, a certificate from such holder in the form of Exhibit C hereto,
including the certifications in item (2)(a) thereof;

                  (B) if such beneficial  interest is being transferred to a QIB
in accordance with Rule 144A, a certificate to the effect set forth in Exhibit B
hereto, including the certifications in item (1) thereof;

                  (C) if such  beneficial  interest  is being  transferred  to a
Non-U.S.  Person in an offshore  transaction in accordance with Rule 903 or Rule
904 under the Securities Act, a certificate to the effect set forth in Exhibit B
hereto, including the certifications in item (2) thereof;

                  (D) if such  beneficial  interest is being  transferred  to an
Institutional   Accredited  Investor  in  reliance  on  an  exemption  from  the
registration  requirements  of the  Securities  Act other than  those  listed in
subparagraphs  (B) and (C)  above,  a  certificate  to the  effect  set forth in
Exhibit B hereto,  including  the  certifications,  certificates  and Opinion of
Counsel required by item (3)(d) thereof, if applicable; or

                                       41
<PAGE>

                  (E) if such  beneficial  interest is being  transferred to the
Issuers or any of their respective subsidiaries, a certificate to the effect set
forth in Exhibit B hereto, including the certifications in item (3)(b) thereof.

Any Restricted Definitive Note issued in exchange for a beneficial interest in a
Restricted Global Note pursuant to this Section 2.6(c)(1) shall bear the Private
Placement Legend and shall be subject to all restrictions on transfer  contained
therein.

            (2) Beneficial  Interests in Restricted Global Notes to Unrestricted
Definitive Notes. A holder of a beneficial  interest in a Restricted Global Note
may exchange such beneficial interest for an Unrestricted Definitive Note or may
transfer such beneficial  interest to a Person who takes delivery thereof in the
form of an Unrestricted Definitive Note only if:

                  (A) such  exchange or  transfer  is  effected  pursuant to the
Exchange Offer in accordance with the Registration  Rights Agreement and Section
2.6(f) hereof,  and the holder of such  beneficial  interest,  in the case of an
exchange,  or the  transferee,  in the  case  of a  transfer,  certifies  in the
applicable  Letter  of  Transmittal  that it is not (1) a  Broker-Dealer,  (2) a
Person  participating  in the distribution of the Exchange Notes or (3) a Person
who is an affiliate (as defined in Rule 144) of the Issuers;

                  (B)  such   transfer  is   effected   pursuant  to  the  Shelf
Registration  Statement in accordance with the Registration Rights Agreement and
a  certificate  to the  effect  set forth in  Exhibit B  hereto,  including  the
certifications in item (3)(c) thereof, is delivered by the transferor;

                  (C) such transfer is effected by a  Broker-Dealer  pursuant to
the Exchange Offer  Registration  Statement in accordance with the  Registration
Rights  Agreement and a certificate to the effect set forth in Exhibit B hereto,
including  the  certifications  in item  (3)(c)  thereof,  is  delivered  by the
transferor; or

                  (D) the Registrar receives the following: (1) if the holder of
such beneficial  interest in a Restricted  Global Note proposes to exchange such
beneficial interest for an Unrestricted Definitive Note, a certificate from such
holder in the form of Exhibit C hereto,  including  the  certifications  in item
(1)(b) thereof; or (2) if the holder of such beneficial interest in a Restricted
Global Note proposes to transfer such beneficial  interest to a Person who shall
take  delivery  thereof  in the  form  of an  Unrestricted  Definitive  Note,  a
certificate  from such  holder in the form of  Exhibit B hereto,  including  the
certifications  in item (4)  thereof;  and,  in each such case set forth in this
subparagraph  (D),  an  Opinion of  Counsel  in form,  and from  legal  counsel,
reasonably  acceptable  to the Registrar and the Issuers to the effect that such
exchange or  transfer  is in  compliance  with the  Securities  Act and that the
restrictions on transfer  contained  herein and in the Private  Placement Legend
are no longer required in order to maintain compliance with the Securities Act.

                                       42
<PAGE>

      Beneficial  interests in an  Unrestricted  Global Note cannot be exchanged
for,  or  transferred  to Persons  who take  delivery  thereof in the form of, a
Restricted Definitive Note.

            (3)   Beneficial   Interests   in   Unrestricted   Global  Notes  to
Unrestricted  Definitive  Notes.  If any holder of a  beneficial  interest in an
Unrestricted  Global Note proposes to exchange such  beneficial  interest for an
Unrestricted Definitive Note or to transfer such beneficial interest to a Person
who takes delivery thereof in the form of an Unrestricted  Definitive Note, then
such  holder  shall  satisfy  the  applicable  conditions  set forth in  Section
2.6(b)(2)  hereof.  Any  Unrestricted  Definitive  Note issued in exchange for a
beneficial  interest  pursuant  to this  Section  2.6(c)(3)  shall  not bear the
Private Placement Legend.

            (4)  Transfer  or  Exchange  of  Reg  S  Temporary   Global   Notes.
Notwithstanding  the other provisions of this Section 2.6, a beneficial interest
in the Reg S Temporary  Global Note may not be (A)  exchanged  for a  Definitive
Note prior to (x) the expiration of the Distribution  Compliance  Period (unless
such  exchange  is  approved  by the  Issuers,  does not  require an  investment
decision on the part of the Holder  thereof and does not violate the  provisions
of  Regulation  S) and (y) the  receipt  by the  Registrar  of any  certificates
identified  by the  Issuers or their  counsel to be  required  pursuant  to Rule
903(b)(3)(ii)(B)  under the  Securities  Act or (B)  transferred to a Person who
takes delivery  thereof in the form of a Definitive Note prior to the events set
forth in clause (A) above or unless the  transfer is  pursuant  to an  exemption
from the registration  requirements of the Securities Act other than Rule 903 or
Rule 904.

      (d) Transfer and Exchange of Definitive  Notes for  Beneficial  Interests.
Transfer and exchange of Definitive Notes for beneficial interests in the Global
Notes shall be made  subject to  compliance  with this Section  2.6(d),  and the
requesting Holder shall provide any  certifications,  documents and information,
as  applicable,  required  pursuant to the following  provisions of this Section
2.6(d).  Upon receipt from such Holder of such applicable  documentation and the
surrender to the Registrar of the Definitive  Notes duly endorsed or accompanied
by a written instruction of transfer in form satisfactory to the Registrar, duly
executed by such Holder or by its  attorney,  duly  authorized  in writing,  the
Registrar shall register the transfer or exchange of the Definitive  Notes.  The
Trustee  shall  cancel  such  Definitive  Notes so  surrendered  and  cause  the
aggregate  principal  amount  of  the  applicable   Restricted  Global  Note  or
Unrestricted Global Note, as applicable, to be increased accordingly pursuant to
Section 2.6(h) hereof.

            (1)  Restricted   Definitive   Notes  to  Beneficial   Interests  in
Restricted Global Notes. If any Holder of a Restricted  Definitive Note proposes
to exchange such Note for a beneficial  interest in a Restricted  Global Note or
to transfer  such  Restricted  Definitive  Notes to a Person who takes  delivery
thereof in the form of a beneficial  interest in a Restricted Global Note, then,
upon receipt by the Registrar of the following documentation:

                                       43
<PAGE>

                  (A) if the Holder of such Restricted  Definitive Note proposes
to exchange such Note for a beneficial  interest in a Restricted  Global Note, a
certificate  from such  Holder in the form of  Exhibit C hereto,  including  the
certifications in item (2)(b) thereof;

                  (B) if such Restricted Definitive Note is being transferred to
a QIB in accordance  with Rule 144A under the  Securities  Act, a certificate to
the effect set forth in Exhibit B hereto,  including the  certifications in item
(1) thereof;

                  (C) if such Restricted Definitive Note is being transferred to
a Non-U.S. Person in an offshore transaction in accordance with Rule 903 or Rule
904 under the Securities Act, a certificate to the effect set forth in Exhibit B
hereto, including the certifications in item (2) thereof; or

                  (D) if such Restricted Definitive Note is being transferred to
an Institutional  Accredited  Investor in accordance with Regulation D under the
Securities  Act,  a  certificate  to the  effect  set forth in Exhibit B hereto,
including the certifications in item (3)(d) thereof;

the Trustee shall cancel the Restricted Definitive Note and increase or cause to
be increased the aggregate principal amount of, in the case of clause (A) above,
the  appropriate  Restricted  Global Note, in the case of clause (B) above,  the
144A Global Note, in the case of clause (C) above,  the Regulation S Global Note
and in the case of clause (D) above, the 501 Global Note.

            (2)  Restricted   Definitive   Notes  to  Beneficial   Interests  in
Unrestricted Global Notes. A Holder of a Restricted Definitive Note may exchange
such Note for a beneficial  interest in an Unrestricted  Global Note or transfer
such Restricted  Definitive  Note to a Person who takes delivery  thereof in the
form of a beneficial interest in an Unrestricted Global Note only if:

                  (A) such  exchange or  transfer  is  effected  pursuant to the
Exchange Offer in accordance with the Registration  Rights Agreement and Section
2.6(f) hereof, and the Holder, in the case of an exchange, or the transferee, in
the case of a transfer,  certifies in the applicable  Letter of Transmittal that
it is not (1) a Broker-Dealer, (2) a Person participating in the distribution of
the Exchange  Notes or (3) a Person who is an affiliate (as defined in Rule 144)
of the Issuers;

                  (B)  such   transfer  is   effected   pursuant  to  the  Shelf
Registration  Statement in accordance with the Registration Rights Agreement and
a  certificate  to the  effect  set forth in  Exhibit B  hereto,  including  the
certifications in item (3)(c) thereof, is delivered by the transferor;

                  (C) such transfer is effected by a  Broker-Dealer  pursuant to
the Exchange Offer  Registration  Statement in accordance with the  Registration
Rights  Agreement and a certificate to the effect set forth in Exhibit B hereto,
including  the  certifications  in item  (3)(c)  thereof,  is  delivered  by the
transferor; or

                                       44
<PAGE>

                  (D) the Registrar receives the following: (1) if the Holder of
such  Restricted  Definitive  Notes  proposes  to  exchange  such  Notes  for  a
beneficial  interest in the  Unrestricted  Global Note, a certificate  from such
Holder in the form of Exhibit C hereto,  including  the  certifications  in item
(1)(c)  thereof;  or (2) if the  Holder  of  such  Restricted  Definitive  Notes
proposes to transfer such Notes to a Person who shall take  delivery  thereof in
the form of a beneficial interest in the Unrestricted Global Note, a certificate
from such Holder in the form of Exhibit B hereto,  including the  certifications
in item (4) thereof;  and, in each such case set forth in this subparagraph (D),
an Opinion of Counsel in form, and from legal counsel,  reasonably acceptable to
the Registrar and the Issuers to the effect that such exchange or transfer is in
compliance  with  the  Securities  Act and  that the  restrictions  on  transfer
contained  herein and in the Private  Placement Legend are no longer required in
order to maintain compliance with the Securities Act.

            (3)  Unrestricted   Definitive  Notes  to  Beneficial  Interests  in
Unrestricted  Global  Notes.  A Holder of an  Unrestricted  Definitive  Note may
exchange such Note for a beneficial  interest in an Unrestricted  Global Note or
transfer such  Definitive  Notes to a Person who takes  delivery  thereof in the
form of a beneficial interest in an Unrestricted Global Note at any time.

      If any such  exchange or transfer  from a Definitive  Note to a beneficial
interest is effected  pursuant to  subparagraphs  (2)(B),  (2)(D) or (3) of this
Section  2.6(d)  at a time  when an  Unrestricted  Global  Note has not yet been
issued, the Issuers shall issue and, upon receipt of an Authentication  Order in
accordance with Section 2.2 hereof,  the Trustee shall  authenticate one or more
Unrestricted  Global  Notes  in an  aggregate  principal  amount  equal  to  the
principal amount of Definitive Notes so transferred.

      (e) Transfer and Exchange of Definitive Notes for Definitive  Notes.  Upon
request by a Holder of Definitive  Notes and such Holder's  compliance  with the
provisions of this Section 2.6(e),  the Registrar shall register the transfer or
exchange  of  Definitive  Notes.  Prior  to such  registration  of  transfer  or
exchange,  the requesting Holder shall present or surrender to the Registrar the
Definitive  Notes duly  endorsed  or  accompanied  by a written  instruction  of
transfer in form  satisfactory  to the Registrar duly executed by such Holder or
by its attorney,  duly authorized in writing.  The Trustee shall cancel any such
Definitive Notes so surrendered, and the Issuers shall execute and, upon receipt
of  an  Authentication   Order  pursuant  to  Section  2.2,  the  Trustee  shall
authenticate  and  deliver  to  the  Person  designated  in the  instructions  a
Restricted Definitive Note or an Unrestricted Definitive Note, as applicable, in
the appropriate  principal  amount.  Any Definitive Note issued pursuant to this
Section 2.6(c) shall be registered in such name or names and in such  authorized
denomination or  denominations  as the Holder of such beneficial  interest shall
instruct  the  Registrar  through  instructions  from  the  Depositary  and  the
Participant or Indirect  Participant.  The Trustee shall deliver such Definitive
Notes to the Persons in whose names such Definitive Notes are so registered.  In
addition,  the requesting  Holder shall provide any  additional  certifications,
documents and  information,  as applicable,  required  pursuant to the following
provisions of this Section 2.6(e).

                                       45
<PAGE>

            (1) Restricted  Definitive Notes to Restricted Definitive Notes. Any
Restricted  Definitive  Note may be transferred to and registered in the name of
Persons who take delivery thereof in the form of a Restricted Definitive Note if
the Registrar receives the following:

                  (A) if the  transfer  shall be made to a QIB  pursuant to Rule
144A,  then the  transferor  must deliver a certificate in the form of Exhibit B
hereto, including the certifications in item (1) thereof;

                  (B) if the transfer shall be made pursuant to Rule 903 or Rule
904, then the  transferor  must deliver a  certificate  in the form of Exhibit B
hereto, including the certifications in item (2) thereof;

                  (C) if such  beneficial  interest is being  transferred  to an
Institutional   Accredited  Investor  in  reliance  on  an  exemption  from  the
registration  requirements  of the  Securities  Act other than  those  listed in
subparagraphs  (A) and (B) above, then the transferor must deliver a certificate
to the  effect  set forth in  Exhibit B hereto,  including  the  certifications,
certificates  and  Opinion  of  Counsel  required  by item  (3)(d)  thereof,  if
applicable; or

                  (D) if such  beneficial  interest is being  transferred to the
Issuers or any of their  subsidiaries,  a certificate to the effect set forth in
Exhibit B hereto,  including the certifications in item (3)(b) thereof,  must be
delivered by the transferor.

            (2) Restricted  Definitive Notes to Unrestricted  Definitive  Notes.
Any  Restricted  Definitive  Note may be exchanged by the Holder  thereof for an
Unrestricted  Definitive  Note or  transferred  to a Person or Persons  who take
delivery thereof in the form of an Unrestricted Definitive Note if:

                  (A) such  exchange or  transfer  is  effected  pursuant to the
Exchange Offer in accordance with the Registration  Rights Agreement and Section
2.6(f) hereof, and the Holder, in the case of an exchange, or the transferee, in
the case of a transfer,  certifies in the applicable  Letter of Transmittal that
it is not (1) a Broker-Dealer, (2) a Person participating in the distribution of
the Exchange  Notes or (3) a Person who is an affiliate (as defined in Rule 144)
of the Issuers;

                  (B) any  such  transfer  is  effected  pursuant  to the  Shelf
Registration  Statement in accordance with the Registration Rights Agreement and
a  certificate  to the  effect  set forth in  Exhibit B  hereto,  including  the
certifications in item (3)(c) thereof, is delivered by the transferor;

                  (C) any such transfer is effected by a Broker-Dealer  pursuant
to the Exchange Offer Registration Statement in accordance with the Registration
Rights  Agreement and a certificate to the effect set forth in Exhibit B hereto,
including  the  certifications  in item  (3)(c)  thereof,  is  delivered  by the
transferor; or

                                       46
<PAGE>

                  (D) the Registrar receives the following: (1) if the Holder of
such  Restricted  Definitive  Notes  proposes  to  exchange  such  Notes  for an
Unrestricted  Definitive  Note,  a  certificate  from such Holder in the form of
Exhibit D hereto, including the certifications in item (1)(d) thereof; or (2) if
the Holder of such Restricted  Definitive  Notes proposes to transfer such Notes
to a Person  who shall  take  delivery  thereof  in the form of an  Unrestricted
Definitive Note, a certificate from such Holder in the form of Exhibit B hereto,
including  the  certifications  in item (4) thereof;  and, in each such case set
forth in this  subparagraph  (D), an Opinion of Counsel in form,  and from legal
counsel,  reasonably  acceptable  to the Registrar and the Issuers to the effect
that such exchange or transfer is in compliance with the Securities Act and that
the  restrictions  on transfer  contained  herein and in the  Private  Placement
Legend  are no  longer  required  in  order  to  maintain  compliance  with  the
Securities Act.

            (3) Unrestricted  Definitive Notes to Unrestricted Definitive Notes.
A Holder of  Unrestricted  Definitive  Notes may transfer such Notes to a Person
who takes delivery thereof in the form of an Unrestricted  Definitive Note. Upon
receipt of a request to register such a transfer,  the Registrar  shall register
the Unrestricted  Definitive Notes pursuant to the instructions  from the Holder
thereof.

      (f)  Exchange  Offer.  Upon  the  occurrence  of  the  Exchange  Offer  in
accordance with the Registration Rights Agreement,  the Issuers shall issue and,
upon receipt of an  Authentication  Order in accordance  with Section 2.2 and an
Opinion of Counsel  for the  Issuers as to  certain  matters  discussed  in this
Section  2.6(f),  the Trustee shall  authenticate  (i) one or more  Unrestricted
Global  Notes  in an  aggregate  principal  amount  equal  to the sum of (A) the
principal  amount of the  beneficial  interests in the  Restricted  Global Notes
exchanged or transferred for beneficial  interests in Unrestricted  Global Notes
in connection with the Exchange Offer pursuant to Section  2.6(b)(4) and (B) the
principal  amount of Restricted  Definitive  Notes  exchanged or transferred for
beneficial  interests  in  Unrestricted  Global  Notes  in  connection  with the
Exchange  Offer  pursuant  to  Section  2.6(d)(2),  in each  case  tendered  for
acceptance by Persons that certify in the applicable Letters of Transmittal that
(x)  they  are  not  Broker-Dealers,   (y)  they  are  not  participating  in  a
distribution  of the Exchange  Notes and (z) they are not affiliates (as defined
in Rule 144) of the Issuers,  and  accepted for exchange in the Exchange  Offer,
and (ii) Unrestricted Definitive Notes in an aggregate principal amount equal to
the sum of (A) the principal amount of the Restricted Definitive Notes exchanged
or transferred for Unrestricted Definitive Notes in connection with the Exchange
Offer pursuant to Section 2.6(e)(2) and (B) Restricted Global Notes exchanged or
transferred for  Unrestricted  Definitive  Notes in connection with the Exchange
Offer  pursuant to Section  2.6(c)(2),  in each case tendered for  acceptance by
Persons that certify in the applicable  Letters of Transmittal that (x) they are
not  Broker-Dealers,  (y) they are not  participating  in a distribution  of the
Exchange  Notes and (z) they are not  affiliates (as defined in Rule 144) of the
Issuers, and accepted for exchange in the Exchange Offer.  Concurrently with the
issuance  of such  Notes,  the  Trustee  shall  cancel any  Definitive  Notes so
surrendered  and shall cause the aggregate  principal  amount of the  applicable
Restricted Global Notes to be reduced accordingly, and the Issuers shall execute
and,  upon  receipt of an  Authentication  Order  pursuant to Section  2.2,  the
Trustee shall  authenticate and deliver to

                                       47
<PAGE>

the Persons designated by the Holders of Definitive Notes so accepted Definitive
Notes in the appropriate principal amount.

      The Opinion of Counsel for the Issuers referenced above shall state that:

            (1) the issuance  and sale of the Exchange  Notes by the Issuers has
been duly authorized and, when executed by the Issuers and  authenticated by the
Trustee in accordance  with the  provisions  of this  Indenture and delivered in
exchange for Series A Notes in accordance  with this  Indenture and the Exchange
Offer,  the Exchange  Notes shall be entitled to the benefits of this  Indenture
and shall be valid and binding  obligations of the Issuers,  enforceable against
the Issuers in accordance with their terms, subject to customary  qualifications
including   exceptions  for  bankruptcy,   fraudulent   transfer  and  equitable
principles; and

            (2) when the  Exchange  Notes are issued and executed by the Issuers
and  authenticated  by the Trustee in  accordance  with the  provisions  of this
Indenture and  delivered in exchange for Series A Notes in accordance  with this
Indenture and the Exchange  Offer,  the Subsidiary  Guaranties by the Subsidiary
Guarantors  endorsed thereon shall be entitled to the benefits of this Indenture
and shall be the valid and binding  obligations  of the  Subsidiary  Guarantors,
enforceable  against the Subsidiary  Guarantors in accordance  with their terms,
subject  to  customary   qualifications  including  exceptions  for  bankruptcy,
fraudulent transfer and equitable principles.

      (g) Legends.  The following legends shall appear on the face of all Global
Notes and  Definitive  Notes issued  under this  Indenture  unless  specifically
stated otherwise in the applicable provisions of this Indenture.

            (i) Private Placement Legend.

            (1) Except as permitted by subparagraph (2) below,  each Global Note
and  each  Definitive  Note  (and all  Notes  issued  in  exchange  therefor  or
substitution thereof) shall bear the legend in substantially the following form:

"THIS  SECURITY HAS NOT BEEN  REGISTERED  UNDER THE  SECURITIES  ACT OF 1933, AS
AMENDED (THE  "SECURITIES  ACT"),  OR ANY STATE  SECURITIES  LAWS.  NEITHER THIS
SECURITY  NOR ANY  INTEREST  OR  PARTICIPATION  HEREIN MAY BE  REOFFERED,  SOLD,
ASSIGNED,  TRANSFERRED,  PLEDGED,  ENCUMBERED  OR  OTHERWISE  DISPOSED OF IN THE
ABSENCE OF SUCH  REGISTRATION OR UNLESS SUCH  TRANSACTION IS EXEMPT FROM, OR NOT
SUBJECT TO, REGISTRATION.

THE HOLDER OF THIS SECURITY BY ITS  ACCEPTANCE  HEREOF AGREES TO OFFER,  SELL OR
OTHERWISE TRANSFER THIS SECURITY,  PRIOR TO THE DATE WHICH IS TWO YEARS (OR SUCH
OTHER  PERIOD  THAT MAY  HEREAFTER  BE  PROVIDED  UNDER  RULE  144(k)  UNDER THE
SECURITIES ACT AS PERMITTING RESALES OF RESTRICTED  SECURITIES BY NON-AFFILIATES
WITHOUT  RESTRICTION)  AFTER THE LATER OF THE ORIGINAL

                                       48
<PAGE>

ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE ISSUERS OR ANY AFFILIATE OF THE
ISSUERS WAS THE OWNER OF THIS  SECURITY (OR ANY  PREDECESSOR  OF THIS  SECURITY)
(THE  "RESALE  RESTRICTION  TERMINATION  DATE")  ONLY  (A) TO THE  ISSUERS,  (B)
PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE
SECURITIES ACT, (C) FOR SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT
TO RULE 144A UNDER THE SECURITIES  ACT, TO A PERSON IT REASONABLY  BELIEVES IS A
"QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT
THAT  PURCHASES  FOR  ITS  OWN  ACCOUNT  OR  FOR  THE  ACCOUNT  OF  A  QUALIFIED
INSTITUTIONAL  BUYER TO WHOM NOTICE IS GIVEN THAT THE  TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A UNDER THE SECURITIES ACT, (D) PURSUANT TO OFFERS AND SALES
TO NON-U.S.  PURCHASERS  THAT OCCUR OUTSIDE THE UNITED STATES IN ACCORDANCE WITH
REGULATION  S UNDER THE  SECURITIES  ACT,  (E) TO AN  INSTITUTIONAL  "ACCREDITED
INVESTOR"  WITHIN THE MEANING OF  SUBPARAGRAPH  (a) (1), (2), (3) OR (7) OF RULE
501  UNDER  THE  SECURITIES  ACT THAT IS  ACQUIRING  THIS  SECURITY  FOR ITS OWN
ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL  "ACCREDITED INVESTOR," FOR
INVESTMENT  PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN  CONNECTION
WITH,  ANY  DISTRIBUTION  IN VIOLATION OF THE  SECURITIES ACT OR (F) PURSUANT TO
ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT,  SUBJECT TO THE ISSUERS' AND THE  TRUSTEE'S  RIGHT PRIOR TO ANY SUCH OFFER,
SALE OR TRANSFER  PURSUANT TO CLAUSE (D),  (E) OR (F) TO REQUIRE THE DELIVERY OF
AN OPINION OF COUNSEL,  CERTIFICATIONS AND/OR OTHER INFORMATION  SATISFACTORY TO
EACH OF THEM,  AND IN EACH OF THE FOREGOING  CASES, A CERTIFICATE OF TRANSFER IN
THE FORM APPEARING ON THIS SECURITY IS COMPLETED AND DELIVERED BY THE TRANSFEROR
TO THE TRUSTEE AND IN EACH CASE IN ACCORDANCE WITH APPLICABLE SECURITIES LAWS OF
ANY U.S. STATE OR ANY OTHER APPLICABLE JURISDICTION."

            (2)  Notwithstanding  the  foregoing,  any Global Note or Definitive
Note issued pursuant to subparagraphs (b)(4),  (c)(2),  (c)(3),  (d)(2), (d)(3),
(e)(2),  (e)(3) or (f) to this  Section  2.6 (and all Notes  issued in  exchange
therefor or substitution thereof) shall not bear the Private Placement Legend.

            (ii) Global Note Legend.  To the extent  required by the Depositary,
each Global Note shall bear legends in substantially the following forms:

"THIS  GLOBAL  NOTE IS HELD  BY THE  DEPOSITARY  (AS  DEFINED  IN THE  INDENTURE
GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL
OWNERS HEREOF,  AND IS NOT  TRANSFERABLE  TO ANY PERSON UNDER ANY  CIRCUMSTANCES
EXCEPT THAT (I) THE TRUSTEE  MAY MAKE SUCH  NOTATIONS  HEREON AS MAY BE REQUIRED
PURSUANT TO SECTION 2.6 OF THE INDENTURE, (II) THIS

                                       49
<PAGE>

GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.6(a)
OF THE  INDENTURE,  (III) THIS GLOBAL NOTE MAY BE  DELIVERED  TO THE TRUSTEE FOR
CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE
MAY BE TRANSFERRED TO A SUCCESSOR  DEPOSITARY  WITH THE PRIOR WRITTEN CONSENT OF
THE ISSUERS."

"UNLESS AND UNTIL IT IS  EXCHANGED  IN WHOLE OR IN PART FOR NOTES IN  DEFINITIVE
FORM, THIS NOTE MAY NOT BE TRANSFERRED  EXCEPT AS A WHOLE BY THE DEPOSITARY TO A
NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR
ANOTHER  NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR  DEPOSITARY  OR A NOMINEE OF SUCH  SUCCESSOR  DEPOSITARY.  UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (55 WATER STREET,  NEW YORK, NEW YORK) ("DTC"),  TO THE ISSUERS OR THEIR
AGENT FOR  REGISTRATION  OF TRANSFER,  EXCHANGE OR PAYMENT,  AND ANY CERTIFICATE
ISSUED  IS  REGISTERED  IN THE NAME OF CEDE & CO. OR SUCH  OTHER  NAME AS MAY BE
REQUESTED  BY AN  AUTHORIZED  REPRESENTATIVE  OF DTC (AND ANY PAYMENT IS MADE TO
CEDE  & CO.  OR  SUCH  OTHER  ENTITY  AS  MAY  BE  REQUESTED  BY  AN  AUTHORIZED
REPRESENTATIVE  OF DTC),  ANY TRANSFER,  PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN."

            (iii) Reg S Temporary Global Note Legend.  To the extent required by
the  Depositary,  each Reg S  Temporary  Global  Note  shall  bear a  legend  in
substantially the following form:

"THE RIGHTS  ATTACHING  TO THIS  REGULATION  S TEMPORARY  GLOBAL  NOTE,  AND THE
CONDITIONS AND PROCEDURES  GOVERNING ITS EXCHANGE FOR DEFINITIVE  NOTES,  ARE AS
SPECIFIED  IN THE  INDENTURE  (AS  DEFINED  HEREIN).  NEITHER THE HOLDER NOR THE
BENEFICIAL  OWNERS OF THIS REGULATION S TEMPORARY  GLOBAL NOTE SHALL BE ENTITLED
TO RECEIVE CASH  PAYMENTS OF INTEREST  DURING THE PERIOD WHICH SUCH HOLDER HOLDS
THIS NOTE.  NOTHING IN THIS  LEGEND  SHALL BE DEEMED TO  PREVENT  INTEREST  FROM
ACCRUING ON THIS NOTE."

      (h)  Cancellation  and/or  Adjustment of Global Notes. At such time as all
beneficial  interests  in a  particular  Global  Note  have been  exchanged  for
Definitive Notes or a particular  Global Note has been redeemed,  repurchased or
cancelled  in whole and not in part,  each such Global Note shall be returned to
or retained and cancelled by the Trustee in accordance with Section 2.11 hereof.
At any time prior to such cancellation,  if any beneficial  interest in a Global
Note is exchanged for or transferred to a Person who shall take delivery thereof
in the form of a beneficial interest in another

                                       50
<PAGE>

Global Note or for Definitive  Notes, the principal amount of Notes  represented
by such Global Note shall be reduced  accordingly and an endorsement may be made
on such Global Note by the Trustee or by the  Depositary at the direction of the
Trustee to reflect  such  reduction;  and if the  beneficial  interest  is being
exchanged for or transferred to a Person who shall take delivery  thereof in the
form of a beneficial  interest in another  Global  Note,  such other Global Note
shall be increased  accordingly  and an  endorsement  may be made on such Global
Note by the  Trustee or by the  Depositary  at the  direction  of the Trustee to
reflect such increase.

      (i) General Provisions Relating to Transfers and Exchanges.

            (i) To permit registrations of transfers and exchanges,  the Issuers
shall execute and the Trustee  shall  authenticate  Global Notes and  Definitive
Notes upon receipt of an Authentication Order.

            (ii) No  service  charge  shall be made to a holder of a  beneficial
interest  in a  Global  Note  or  to a  Holder  of a  Definitive  Note  for  any
registration  of transfer or exchange,  but the Issuers may require payment of a
sum sufficient to cover any transfer tax or similar  governmental charge payable
in  connection  therewith  (other  than  any  such  transfer  taxes  or  similar
governmental  charge payable upon exchange or transfer pursuant to Section 2.10,
3.6, 4.13 or 4.15 hereof).

            (iii) The  Registrar  shall not be required to register the transfer
of or exchange any Note selected for redemption in whole or in part,  except the
unredeemed portion of any Note being redeemed in part.

            (iv)  All  Global  Notes  and  Definitive   Notes  issued  upon  any
registration  of transfer or exchange of Global Notes or Definitive  Notes shall
be the valid obligations of the Issuers,  evidencing the same Indebtedness,  and
entitled  to the same  benefits  under this  Indenture,  as the Global  Notes or
Definitive Notes surrendered upon such registration of transfer or exchange.

            (v) The Issuers shall not be required (A) to issue,  to register the
transfer of or to exchange any Notes during a period beginning at the opening of
business 15 days before the day of any selection of Notes for  redemption  under
Section 3.2 hereof and ending at the close of business on the day of  selection,
(B) to  register  the  transfer  of or to  exchange  any  Note so  selected  for
redemption in whole or in part, except the unredeemed  portion of any Note being
redeemed  in part or (C) to  register  the  transfer  of or to  exchange  a Note
between an Interest Record Date and the next succeeding Interest Payment Date.

            (vi) Prior to due presentment for the  registration of a transfer of
any Note,  the Trustee,  any Agent and the Issuers may deem and treat the Person
in whose name any Note is registered as the absolute  owner of such Note for the
purpose of receiving  payment of principal of and interest on such Notes and for
all other purposes,  and none of the Trustee,  any Agent or the Issuers shall be
affected by notice to the contrary.

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<PAGE>

            (vii) The Trustee  shall  authenticate  Global Notes and  Definitive
Notes in accordance with the provisions of Section 2.2 hereof.

            (viii) All  certifications,  certificates  and  Opinions  of Counsel
required to be submitted to the Registrar pursuant to this Section 2.6 to effect
a registration of transfer or exchange may be submitted by facsimile.

      Notwithstanding  anything herein to the contrary, as to any certifications
and  certificates  delivered to the Registrar  pursuant to this Section 2.6, the
Registrar's  duties shall be limited to confirming that any such  certifications
and  certificates  delivered  to it are in the form of Exhibits A, B, C, D and E
attached hereto. The Registrar shall not be responsible for confirming the truth
or accuracy of representations made in any such certifications or certificates.

SECTION 2.7   REPLACEMENT NOTES

      If any mutilated Note is surrendered to the Trustee or the Issuers,  or if
the Trustee or the Issuers  receive  evidence  (which  evidence  may be from the
Trustee) to their  satisfaction of the  destruction,  loss or theft of any Note,
the  Issuers  shall issue and the  Trustee,  upon  receipt of an  Authentication
Order, shall  authenticate a replacement Note if the Trustee's  requirements are
met. If required by the Trustee or the Issuers, an affidavit of lost certificate
and/or an indemnity  bond or other  indemnity must be supplied by the requesting
Holder  that is  sufficient  in the  judgment  of the Trustee and the Issuers to
protect the Issuers,  the Trustee,  any Agent and any authenticating  agent from
any loss that any of them may  suffer if a Note is  replaced.  The  Issuers  may
charge for its  expenses in  replacing  a Note,  including  reasonable  fees and
expenses of their counsel and of the Trustee and its counsel.  Every replacement
Note is an additional  obligation of the Issuers and shall be entitled to all of
the benefits of this Indenture equally and proportionately  with all other Notes
duly issued hereunder.

SECTION 2.8   OUTSTANDING NOTES

      The Notes  outstanding at any time are all the Notes  authenticated by the
Trustee  (including  any Note  represented  by a Global  Note)  except for those
cancelled by it or at its  direction,  those  delivered to it for  cancellation,
those  reductions  in the  interest in a Global Note  effected by the Trustee in
accordance with the provisions  hereof,  and those described in this Section 2.8
as not  outstanding.  Except as set forth in Section 2.9 hereof, a Note does not
cease to be  outstanding  because the Issuers or an  Affiliate  of either of the
Issuers  holds the Note.  If a Note is replaced  pursuant to Section 2.7 hereof,
such  Note,  together  with the  Subsidiary  Guaranty  of that  particular  Note
endorsed  thereon,  ceases to be outstanding  unless the Trustee  receives proof
satisfactory to it that the replaced Note is held by a bona fide  purchaser.  If
the principal amount of any Note is considered paid under Section 4.1 hereof, it
ceases to be  outstanding  and  Interest  on it ceases to accrue.  If the Paying
Agent  (other than the  Company,  a  subsidiary  or an Affiliate of any thereof)
holds, on a redemption date or the maturity date,  money sufficient to pay Notes
payable on that date,  then on and after that date such Notes shall be deemed to
be no longer outstanding and shall cease to accrue Interest.

                                       52
<PAGE>

SECTION 2.9   TREASURY NOTES

      In  determining  whether the Holders of the required  principal  amount of
Notes have  concurred in any  direction,  waiver or consent,  Notes owned by the
Issuers, or by any Person directly or indirectly controlling or controlled by or
under direct or indirect common control with the Issuers, shall be considered as
though not outstanding,  except that for the purposes of determining whether the
Trustee shall be protected in relying on any such direction,  waiver or consent,
only Notes that the Trustee knows are so owned shall be so disregarded.

SECTION 2.10   TEMPORARY NOTES

      Until certificates  representing Notes are ready for delivery, the Issuers
may prepare and the Trustee,  upon  receipt of an  Authentication  Order,  shall
authenticate temporary Notes. Temporary Notes shall be substantially in the form
of  Definitive  Notes  but  may  have  variations  that  the  Issuers  considers
appropriate  for temporary  Notes and as shall be  reasonably  acceptable to the
Trustee.  Without  unreasonable delay, the Issuers shall prepare and the Trustee
shall authenticate  Definitive Notes in exchange for temporary Notes. Until such
exchange, holders of temporary Notes shall be entitled to all of the benefits of
this Indenture.

SECTION 2.11   CANCELLATION

      The Issuers at any time may deliver Notes to the Trustee for cancellation.
The  Registrar  and  Paying  Agent  shall  forward  to  the  Trustee  any  Notes
surrendered  to them for  registration  of  transfer,  exchange or payment.  The
Trustee,  or at the direction of the Trustee,  the Registrar or the Paying Agent
(other than the Company or an Affiliate of the  Company),  and no one else shall
cancel all Notes  surrendered for registration of transfer,  exchange,  payment,
replacement or  cancellation  and shall destroy  cancelled Notes (subject to the
record  retention  requirement  of  the  Exchange  Act).  Certification  of  the
destruction  of all  cancelled  Notes shall be  delivered  to the  Issuers.  The
Issuers  may not issue new Notes to replace  Notes that it has paid or that have
been delivered to the Trustee for cancellation.

SECTION 2.12   DEFAULTED INTEREST

      Any Interest on any Note which is payable,  but is not punctually  paid or
duly provided for, on any Interest Payment Date plus, to the extent lawful,  any
interest  payable  on the  defaulted  Interest  at the  rate  and in the  manner
provided  in  Section  4.1  hereof  and in the Note  (herein  called  "Defaulted
Interest")  shall forthwith cease to be payable to the registered  Holder on the
relevant  Interest  Record Date, and such Defaulted  Interest may be paid by the
Issuers, at their election in each case, as provided in clause (1) or (2) below:

            (1) The Issuers may elect to make payment of any Defaulted  Interest
to the Persons in whose names the Notes are  registered at the close of business
on a Special Record Date for the payment of such Defaulted Interest, which shall
be fixed in

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<PAGE>

the following manner.  The Issuers shall notify the Trustee and the Paying Agent
in writing of the amount of Defaulted  Interest proposed to be paid on each Note
and the date of the  proposed  payment,  and at the same time the Issuers  shall
deposit  with the Paying Agent an amount of cash equal to the  aggregate  amount
proposed  to be paid in  respect  of  such  Defaulted  Interest  or  shall  make
arrangements  reasonably satisfactory to the Paying Agent for such deposit prior
to the date of the  proposed  payment,  such cash when  deposited  to be held in
trust for the benefit of the  Persons  entitled  to such  Defaulted  Interest as
provided  in this clause (1).  Thereupon  the Paying  Agent shall fix a "Special
Record Date" for the payment of such Defaulted  Interest which shall be not more
than 15 days and not less than 10 days prior to the date of the proposed payment
and not less than 10 days after the receipt by the Paying Agent of the notice of
the proposed payment. The Paying Agent shall promptly notify the Issuers and the
Trustee of such  Special  Record Date and, in the name and at the expense of the
Issuers,  shall cause notice of the proposed payment of such Defaulted  Interest
and the Special Record Date therefor to be mailed,  first-class postage prepaid,
to each Holder at its address as it appears in the Note  register  maintained by
the Registrar not less than 10 days prior to such Special Record Date. Notice of
the proposed  payment of such  Defaulted  Interest  and the Special  Record Date
therefor having been mailed as aforesaid,  such Defaulted Interest shall be paid
to the persons in whose names the Notes (or their respective  predecessor Notes)
are  registered  on such  Special  Record  Date and shall no  longer be  payable
pursuant to the following clause (2).

            (2) The Issuers may make  payment of any  Defaulted  Interest in any
other lawful manner not  inconsistent  with the  requirements  of any securities
exchange  on which  the  Notes may be  listed,  and upon  such  notice as may be
required by such exchange,  if, after notice given by the Issuers to the Trustee
and the Paying  Agent of the  proposed  payment  pursuant to this  clause,  such
manner shall be deemed practicable by the Trustee and the Paying Agent.

      Subject  to the  foregoing  provisions  of this  Section  2.12,  each Note
delivered  under this Indenture upon  registration of transfer of or in exchange
for or in lieu of any other Note shall carry the rights to Interest  accrued and
unpaid, and to accrue, which were carried by such other Note.

SECTION 2.13   CUSIP NUMBERS

      The  Issuers  in  issuing  the  Notes  may use  "CUSIP"  numbers  (if then
generally in use),  and, if so, the Trustee shall use "CUSIP" numbers in notices
of  redemption as a  convenience  to Holders;  provided that any such notice may
state  that no  representation  is made as to the  correctness  of such  numbers
either as printed on the Notes or as contained in any notice of a redemption and
that reliance may be placed only on the other identification  numbers printed on
the Notes,  and any such  redemption  shall not be  affected by any defect in or
omission of such numbers.  The Issuers shall promptly  notify the Trustee of any
change in the "CUSIP" numbers.

                                       54
<PAGE>

SECTION 2.14   ISSUANCE OF ADDITIONAL NOTES

      The Issuers may,  subject to Section 4.7 hereof and applicable  law, issue
Additional Notes in an unlimited  amount under this Indenture.  The Notes issued
on the Issue Date and any Additional Notes subsequently  issued shall be treated
as a single class for all purposes under this Indenture.

                                  ARTICLE III
                                   REDEMPTION

SECTION 3.1   NOTICES TO TRUSTEE

      If the Issuers elect to redeem Notes  pursuant to the optional  redemption
provisions of Section 3.7 hereof,  it shall furnish to the Trustee,  at least 30
days (unless a shorter period is acceptable to the Trustee) but not more than 60
days (unless a longer period is  acceptable to the Trustee)  before a redemption
date,  an  Officers'  Certificate  stating  that such  redemption  is being made
pursuant to Section  3.7 and setting  forth (i) the  redemption  date,  (ii) the
principal amount of Notes to be redeemed and (iii) the redemption price.

SECTION 3.2   SELECTION OF NOTES TO BE REDEEMED

      If less than all of the Notes are to be redeemed at any time,  the Trustee
shall select the Notes or portions  thereof to be redeemed  among the Holders of
the  Notes  in  compliance  with  the  requirements  of the  principal  national
securities exchange,  if any, on which the Notes are listed or, if the Notes are
not so  listed,  on a pro rata  basis,  by lot or in  accordance  with any other
method  the  Trustee  considers  fair and  appropriate,  provided  that Notes in
denomination  of $1,000  or less may not be  redeemed  in part.  In the event of
partial  redemption  by lot,  the  particular  Notes  to be  redeemed  shall  be
selected,  unless otherwise  provided herein,  not less than 30 nor more than 60
days prior to the redemption date by the Trustee from the outstanding  Notes not
previously called for redemption.

      The  Trustee  shall  promptly  notify the  Issuers in writing of the Notes
selected  for  redemption  and,  in the case of any Note  selected  for  partial
redemption,  the principal amount thereof to be redeemed.  Notes and portions of
Notes in  denominations  of larger than $1,000  selected  shall be in amounts of
$1,000 or  integral  multiples  of $1,000;  except that if all of the Notes of a
Holder are to be redeemed,  the entire  outstanding amount of Notes held by such
Holder, even if not an integral multiple of $1,000, shall be redeemed. Except as
provided in the preceding  sentence,  provisions of this Indenture that apply to
Notes  called  for  redemption  also  apply  to  portions  of Notes  called  for
redemption.

SECTION 3.3   NOTICE OF REDEMPTION

      Subject to the provisions of Section 3.7 hereof,  at least 30 days but not
more than 60 days before a  redemption  date (except in the case of a Regulatory

                                       55
<PAGE>

Redemption requiring less notice), the Issuers shall mail or cause to be mailed,
by first class mail, a notice of redemption to each Holder whose Notes are to be
redeemed at its registered address.

      The notice shall identify the Notes to be redeemed and shall state:

      (a) the redemption date;

      (b) the redemption price;

      (c) if any Note is being  redeemed in part,  the portion of the  principal
amount of such Note to be redeemed  and that,  on or after the  redemption  date
upon  surrender of such Note,  a new Note or Notes in principal  amount equal to
the unredeemed portion shall be issued upon cancellation of the original Note;

      (d) the name and address of the Paying Agent;

      (e) that Notes called for  redemption  must be  surrendered  to the Paying
Agent to collect the redemption price;

      (f) that,  unless the Issuers default in making such  redemption  payment,
Interest (and Liquidated  Damages,  if any) on Notes or portions  thereof called
for redemption ceases to accrue on and after the redemption date;

      (g) the paragraph of the Notes and/or Section of this  Indenture  pursuant
to which the Notes called for redemption are being redeemed; and

      (h) that no  representation  is made as to the  correctness or accuracy of
the CUSIP number, if any, listed in such notice or printed on the Notes.

      At the Issuers'  request,  the Trustee shall give the notice of redemption
in the Issuers'  name and at its expense;  provided,  however,  that the Issuers
shall have  delivered to the Trustee,  at least 35 days prior to the  redemption
date (unless a shorter  period shall be acceptable to the Trustee or is required
pursuant to a Regulatory  Redemption),  an Officers' Certificate requesting that
the Trustee give such notice and setting forth the  information  to be stated in
such notice as provided in the preceding paragraph.

SECTION 3.4   EFFECT OF NOTICE OF REDEMPTION

      Once notice of redemption is mailed in accordance with Section 3.3 hereof,
Notes called for redemption become irrevocably due and payable on the redemption
date at the  redemption  price.  At any time prior to the mailing of a notice of
redemption  to the Holders  pursuant to Section 3.3,  the Issuers may  withdraw,
revoke or rescind any notice of redemption  delivered to the Trustee without any
continuing  obligation  to redeem the Notes as  contemplated  by such  notice of
redemption.

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<PAGE>

SECTION 3.5   DEPOSIT OF REDEMPTION PRICE

      At or before 10:00 a.m. on the redemption  date, the Issuers shall deposit
with the Trustee or with the Paying Agent immediately available funds sufficient
to pay the redemption  price of and accrued and unpaid  Interest (and Liquidated
Damages,  if any) on all Notes to be redeemed  on that date.  The Trustee or the
Paying Agent shall promptly  return to the Issuers any money  deposited with the
Trustee or the Paying Agent by the Issuers in excess of the amounts necessary to
pay the  redemption  price of, and accrued and unpaid  Interest (and  Liquidated
Damages, if any) on, all Notes to be redeemed.

      If the Issuers comply with the provisions of the preceding  paragraph,  on
and after the redemption date,  Interest (and Liquidated  Damages, if any) shall
cease to accrue on the Notes or the  portions  of Notes  called for  redemption,
regardless  of  whether  such  Notes are  presented  for  payment.  If a Note is
redeemed  on or after an  Interest  Record  Date but on or prior to the  related
Interest  Payment Date,  then any accrued and unpaid  Interest  (and  Liquidated
Damages,  if any)  shall be paid to the  Person  in  whose  name  such  Note was
registered  at the close of business on such  Interest  Record Date. If any Note
called for redemption shall not be so paid upon surrender for redemption because
of the failure of the Issuers to comply with the preceding  paragraph,  Interest
shall be paid on the  unpaid  principal,  from the  redemption  date  until such
principal  is paid,  and to the extent  lawful on any  Interest not paid on such
unpaid principal,  in each case at the rate provided in the Notes and in Section
4.1 hereof.

      If the redemption date hereunder is on or after an Interest Record Date on
which the Holders of record have a right to receive the  corresponding  Interest
due and Liquidated  Damages,  if any, and on or before the  associated  Interest
Payment Date, any accrued and unpaid Interest (and Liquidated  Damages, if any),
due on such  Interest  Payment  Date shall be paid to the Person in whose name a
Note is registered at the close of business on such Interest Record Date.

SECTION 3.6   NOTES REDEEMED IN PART

      Upon surrender of a Note that is redeemed in part, the Issuers shall issue
and, upon receipt of an Authentication Order, the Trustee shall authenticate for
the Holder at the expense of the Issuers a new Note equal in principal amount to
the unredeemed portion of the Note surrendered.

SECTION 3.7   OPTIONAL REDEMPTION

      (a) Except as set forth in Section 3.7(b), the Notes are not redeemable at
the  Issuers'  option prior to April 15,  2008.  Thereafter,  the Notes shall be
subject to redemption,  in whole or in part, at the option of the Issuers at the
redemption  prices  (expressed  as  percentages  of principal  amount) set forth
below,  plus  accrued  and unpaid  Interest  (and  Liquidated  Damages,  if any)
thereon,  to the  applicable  redemption  date, if redeemed  during the 12-month
period beginning on April 15 of the years indicated below:

                                       57
<PAGE>

            YEAR                            PERCENTAGE
            ----                            ----------
            2008                              104.375%
            2009                              102.917%
            2010                              101.458%
            2011 and thereafter               100.000%

      (b) Notwithstanding Section 3.7(a), at any time or from time to time prior
to April 15, 2007,  the Issuers may redeem,  at their  option,  up to 35% of the
aggregate principal amount of the Notes then outstanding,  at a redemption price
of 108.75% of the principal  amount thereof,  plus accrued and unpaid  Interest,
plus  Liquidated  Damages,  if any,  thereon,  if any,  through  the  applicable
redemption  date,  with the net cash  proceeds of one or more Equity  Offerings;
provided,  that (i) such  redemption  shall occur  within 60 days of the date of
closing of such Equity Offering and (ii) at least 65% of the aggregate principal
amount of Notes  issued under this  Indenture  remains  outstanding  immediately
after giving effect to each such redemption.

      The restrictions on the optional redemption  contained herein do not limit
the right of the  Issuers or any of the  Subsidiaries  to  separately  make open
market, privately negotiated or other purchases of the Notes from time to time.

      (c) Any redemption  pursuant to this Section 3.7 shall be made pursuant to
the provisions of Sections 3.1 through 3.6 hereof.

SECTION 3.8   REGULATORY REDEMPTION

      Notwithstanding any other provisions hereof, Notes to be redeemed pursuant
to a Required Regulatory Redemption shall be redeemable by the Issuers, in whole
or in part,  at any time  upon not less than 20  Business  Days nor more than 60
days  notice  (or  such  earlier  date  as may  be  ordered  by  any  applicable
Governmental  Authority) at a price equal to the lesser of (a) the Holder's cost
thereof  and (b) 100% of the  principal  amount  thereof,  plus in  either  case
accrued and unpaid Interest,  plus Liquidated  Damages, if any, thereon, if any,
to the  redemption  date (or such  earlier  period as ordered by a  Governmental
Authority).  The Issuers  are not  required  to pay or  reimburse  any Holder or
beneficial  owner of the Notes for the expenses of any such Holder or beneficial
owner  related to the  application  for any  Gaming  License,  qualification  or
finding of suitability in connection with a Required Regulatory Redemption. Such
expenses  of any such  Holder  or  beneficial  owner  shall,  therefore,  be the
obligation  of  such  Holder  or  beneficial  owner.  Any  Required   Regulatory
Redemption  shall be made in accordance with the provisions of Sections 3.3, 3.4
and 3.5 unless other procedures are required by any Governmental Authority.

SECTION 3.9   NO MANDATORY REDEMPTION

      The Issuers shall not be required to make  mandatory  redemption  payments
with respect to the Notes (except for a Required  Regulatory  Redemption and any
offer to  repurchase  Notes that the Issuers are required to make in  accordance
with the  provisions of Sections 4.13 and 4.15 below).  The Notes shall not have
the benefit of any sinking fund.

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                                   ARTICLE IV
                                    COVENANTS

SECTION 4.1   PAYMENT OF NOTES

      The Issuers shall pay or cause to be paid the principal  of,  premium,  if
any,  and  Interest on the Notes on the dates and in the manner  provided in the
Notes. Principal,  premium, if any, and Interest shall be considered paid on the
date due if the Paying Agent (if other than the Company or a subsidiary thereof)
holds as of 12:00  noon  Eastern  time on the due date  money  deposited  by the
Issuers in immediately  available funds and designated for and sufficient to pay
all principal, premium, if any, and Interest then due. The Issuers shall pay all
Liquidated  Damages,  if any, in the same manner on the dates and in the amounts
set forth in the Registration Rights Agreement and herein.

      The Issuers shall pay interest  (including Accrued Bankruptcy  Interest in
any  proceeding  under any  Bankruptcy  Law) on  overdue  principal  at the then
applicable  interest  rate on the  Notes to the  extent  lawful;  it  shall  pay
interest  (including  Accrued  Bankruptcy  Interest in any proceeding  under any
Bankruptcy Law) on overdue  installments of Interest and Liquidated  Damages, if
any,  (without  regard to any  applicable  grace period) at the same rate to the
extent lawful.

SECTION 4.2   MAINTENANCE OF OFFICE OR AGENCY

      The Issuers shall  maintain in the Borough of  Manhattan,  The City of New
York, an office or agency (which may be an office of the Trustee or an affiliate
of the Trustee,  Registrar or  co-registrar)  where Notes may be surrendered for
registration  of transfer or for  exchange  and where  notices and demands to or
upon the Issuers in respect of the Notes and this  Indenture may be served.  The
Issuers shall give prompt written notice to the Trustee of the location, and any
change in the  location,  of such  office or agency.  If at any time the Issuers
shall  fail to  maintain  any such  required  office or agency or shall  fail to
furnish the Trustee with the address thereof,  such  presentations,  surrenders,
notices and demands may be made or served at the Corporate Trust Office.

      The Issuers may also from time to time designate one or more other offices
or agencies where the Notes may be presented or surrendered  for any or all such
purposes  and may  from  time  to time  rescind  such  additional  designations;
provided, that no such designation or rescission shall in any manner relieve the
Issuers of their  obligation  to  maintain an office or agency in the Borough of
Manhattan, The City of New York. The Issuers shall give prompt written notice to
the  Trustee  of any such  designation  or  rescission  and of any change in the
location of any such other office or agency.

      The Issuers hereby  designate the Corporate Trust Office of the Trustee as
one such office or agency of the Issuers in accordance with Section 2.3 hereof.

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SECTION 4.3   SEC REPORTS AND REPORTS TO HOLDERS

      Regardless of whether required by the rules and regulations of the SEC, so
long as any Notes are outstanding,  the Company shall furnish to the Trustee and
Holders, within 15 days after the Company is or would have been required to file
such with the SEC, (i) all quarterly and annual financial information that would
be required to be  contained  in a filing with the SEC on Forms 10-Q and 10-K if
the Company were required to file such Forms, including for each a "Management's
Discussion and Analysis of Financial  Condition and Results of Operations"  and,
with respect to the annual  information  only, a report thereon by the Company's
independent  certified public accountants and (ii) all information that would be
required  to be  contained  in a filing  with the SEC on Form 8-K if the Company
were required to file such reports.  From and after the time the Company files a
registration  statement  with the SEC with  respect  to the Notes,  the  Company
shall,  in lieu of providing  such  information  to the Trustee and the Holders,
file such information with the SEC so long as the SEC shall accept such filings.

SECTION 4.4   COMPLIANCE CERTIFICATE

      (a) The Issuers  shall  deliver to the Trustee,  within 120 days after the
end of each fiscal year, an Officers'  Certificate  stating that a review of the
activities of the Issuers and the Restricted  Subsidiaries  during the preceding
fiscal year has been made under the  supervision of the signing  Officers with a
view to  determining  whether the Issuers and the Restricted  Subsidiaries  have
kept, observed,  performed and fulfilled their obligations under this Indenture,
and further stating,  as to each such Officer signing such certificate,  that to
his or her  knowledge  the Issuers and the  Restricted  Subsidiaries  are not in
default in the  performance  or observance of any of the terms,  provisions  and
conditions  of this  Indenture  (or, if a Default or Event of Default shall have
occurred and be continuing, describing all such Defaults or Events of Default of
which he or she may have  knowledge  and what  action the  Issuers are taking or
proposes to take with respect  thereto).  Each of the Issuers  shall provide the
Trustee with timely  written  notice of any change in its fiscal year end, which
is currently December 31.

      (b)  The  Issuers  shall,  so long as any of the  Notes  are  outstanding,
deliver to the Trustee,  within five Business Days of any Officer becoming aware
of any Default or Event of Default,  an Officers'  Certificate  specifying  such
Default or Event of Default and what action the Issuers are taking or propose to
take with respect thereto.

SECTION 4.5   TAXES

      The Issuers shall pay, and shall cause each of the Restricted Subsidiaries
to pay, prior to delinquency,  all material taxes, assessments, and governmental
levies except such as are contested in good faith and by appropriate proceedings
or where the failure to effect such  payment  would not have a material  adverse
effect on the ability of the Issuers and the  Subsidiary  Guarantors  to satisfy
their obligations under the Notes, the Subsidiary Guaranties and this Indenture.

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SECTION 4.6   STAY, EXTENSION AND USURY LAWS

      Each of the Issuers  covenants  (to the extent that it may lawfully do so)
that it shall not at any time insist upon,  plead,  or in any manner  whatsoever
claim or take the  benefit or  advantage  of, any stay,  extension  or usury law
wherever  enacted,  now or at any time  hereafter in force,  that may affect the
covenants or the performance of this Indenture;  and each of the Issuers (to the
extent  that it may  lawfully  do so) hereby  expressly  waives  all  benefit or
advantage  of any such law,  and  covenants  that it shall not, by resort to any
such law,  hinder,  delay or impede the execution of any power herein granted to
the Trustee,  but shall  suffer and permit the  execution of every such power as
though no such law has been enacted.

SECTION 4.7   LIMITATION ON INCURRENCE OF ADDITIONAL INDEBTEDNESS AND
              DISQUALIFIED EQUITY INTERESTS

      (a) The  Issuers  shall not,  and shall not  permit any of the  Restricted
Subsidiaries  to,  directly or indirectly,  (x) create,  incur,  issue,  assume,
guaranty or  otherwise  become  directly or  indirectly  liable with respect to,
contingently or otherwise (collectively,  "incur"), any Indebtedness (including,
without limitation,  Acquired Debt) or (y) issue any Disqualified Capital Stock;
provided,   that  the  Company  and  the  Restricted   Subsidiaries   may  incur
Indebtedness (including, without limitation,  Acquired Debt) and issue shares of
Disqualified  Capital  Stock if (a) no Default  or Event of  Default  shall have
occurred and be continuing at the time of, or would occur after giving effect on
a pro forma basis to such incurrence or issuance,  and (b) the Interest Coverage
Ratio for the Company's most recently ended four full fiscal  quarters for which
internal financial  statements are available  immediately  preceding the date on
which such  additional  Indebtedness  is incurred or such  Disqualified  Capital
Stock is issued  would  have been not less than 2.0 to 1.0  determined  on a pro
forma basis (including a pro forma  application of the net proceeds  therefrom),
as set forth in the definition of Interest  Coverage Ratio, as if the additional
Indebtedness  had been  incurred,  or the  Disqualified  Capital  Stock had been
issued, as the case may be, at the beginning of such four-quarter period.

      (b)  Notwithstanding  the foregoing,  the foregoing  limitations shall not
prohibit the incurrence of:

            (i) Indebtedness under a Senior Credit Facility;  provided, that the
aggregate  principal  amount of Indebtedness  so incurred on any date,  together
with all other Indebtedness incurred pursuant to this clause (i) and outstanding
on such  date,  shall  not  exceed  $35,000,000,  less the  aggregate  amount of
commitment  reductions  contemplated  by clause  (iii)(C)  of  Section  4.13(a);
provided,  however, that Indebtedness  permitted to be incurred pursuant to this
clause (i) shall be increased by  $15,000,000  (A) upon the  acquisition  of any
Gaming  Property or (B) to  effectuate  a Gaming  Property  Financing,  provided
further,  that any increase pursuant to this proviso shall be reduced dollar for
dollar by the amount of  Acquired  Debt  secured  by the  assets of such  Gaming
Property  (unless such Acquired Debt could have been incurred under, and reduces
the amount available under Section 4.7(b)(ii) below);

            (ii) FF&E  Financing and  Indebtedness  represented by Capital Lease
Obligations, mortgage financings or other Purchase Money Obligations;  provided,

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that (1) no  Indebtedness  incurred under the Notes is utilized for the purchase
or lease of FF&E financed with such FF&E  Financing or such other  Indebtedness,
and (2) the  aggregate  principal  amount of such  Indebtedness  (including  any
Acquired Debt referred to in the  parenthetical  in Section  4.7(b)(i) above and
including any Refinancing  Indebtedness and any other  Indebtedness  incurred to
repay, redeem,  discharge,  retire,  defease,  refund,  refinance or replace any
Indebtedness  pursuant to this clause (ii))  outstanding at any time  (excluding
any Gaming FF&E Financing incurred pursuant to this clause (ii)) does not exceed
the product of (x) $7,500,000  times (y) the number of Gaming  Properties  owned
and  controlled  after the Issue Date by any of the Company  and the  Restricted
Subsidiaries on the date of such incurrence;

            (iii) Indebtedness solely in respect of bankers acceptances, letters
of credit  payment  obligations  in connection  with  self-insurance  or similar
requirements,  security for workers'  compensation claims,  appeal bonds, surety
bonds,  insurance obligations or bonds, and performance bonds, and similar bonds
or  obligations,  all  incurred in the ordinary  course of business  (including,
without  limitation,  to maintain  any license or  permits) in  accordance  with
customary industry practices;

            (iv) Hedging Obligations incurred to fix or hedge interest rate risk
with respect to any fixed or variable rate Indebtedness  otherwise  permitted by
this  Indenture;  provided,  that the  notional  principal  amount  of each such
Hedging  Obligation does not exceed the principal  amount of the Indebtedness to
which such Hedging Obligation relates;

            (v)  Indebtedness  of any Issuer,  any  Subsidiary  Guarantor or any
Restricted  Subsidiary owed to and held by a Subsidiary  Guarantor or an Issuer,
as the case may be, that is unsecured  and  subordinated  in right of payment to
the Notes and the Subsidiary Guaranties,  as the case may be; provided, that any
subsequent  issuance or transfer of any Capital  Stock that  results in any such
Subsidiary Guarantor or Restricted Subsidiary, as the case may be, ceasing to be
a  Subsidiary  Guarantor  or a  Restricted  Subsidiary,  or any transfer of such
Indebtedness  (other  than to an  Issuer  or a  Subsidiary  Guarantor)  shall be
deemed,  in each case, to constitute the incurrence of such Indebtedness by such
Issuer, such Subsidiary Guarantor or such Restricted Subsidiary, as the case may
be;

            (vi) Indebtedness outstanding on the Issue Date, including the Notes
outstanding  on the Issue  Date,  but  excluding  Indebtedness  under any Senior
Credit  Facility  (other than the OED FF&E  Facility)  outstanding  on the Issue
Date;

            (vii)  Indebtedness  arising  from the  honoring  by a bank or other
financial  institution  of a check,  draft or similar  instrument  inadvertently
(except in the case of daylight  overdrafts) drawn against insufficient funds in
the ordinary course of business;

            (viii) the accrual of interest,  the  accretion or  amortization  of
original issue discount and the payment of interest on any  Indebtedness  in the
form of additional Indebtedness with the same terms;

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<PAGE>

            (ix)  Indebtedness  arising  from  agreements  for  indemnification,
adjustment of purchase price or similar  obligations,  in each case, incurred in
connection with the disposition of any business or assets of the Company, any of
the Subsidiary Guarantors or any of the Restricted  Subsidiaries;  provided that
the maximum aggregate  liability in respect of all such Indebtedness shall at no
time  exceed  the  gross  proceeds  actually  received  by  the  Company  or the
applicable Subsidiary Guarantor or Restricted Subsidiary in connection with such
disposition;

            (x) any Subsidiary Guaranty of the Notes;

            (xi)  Indebtedness  issued in exchange for, or the proceeds of which
are substantially  contemporaneously  used to extend, repay, redeem,  discharge,
refinance, renew, replace, or refund (collectively,  "Refinance"),  Indebtedness
incurred  pursuant  to  the  Interest  Coverage  Ratio  test  set  forth  in the
immediately  preceding paragraph,  Section 4.7(b)(vi) above, this clause (xi) or
Section 4.7(b)(xiii) below (the "Refinancing Indebtedness");  provided, that (a)
the  principal  amount of such  Refinancing  Indebtedness  does not  exceed  the
principal amount of Indebtedness so Refinanced  (plus any required  premiums and
out-of-pocket  expenses  reasonably incurred in connection  therewith),  (b) the
Refinancing  Indebtedness has a final scheduled  maturity that equals or exceeds
the final stated maturity, and a Weighted Average Life to Maturity that is equal
to or greater than the Weighted  Average Life to Maturity,  of the  Indebtedness
being  Refinanced  and (c) the  Refinancing  Indebtedness  ranks,  in  right  of
payment, no more favorable to the Notes or applicable  Subsidiary  Guaranty,  as
the case may be, than the Indebtedness being Refinanced;

            (xii)  guarantees by Restricted  Subsidiaries of Indebtedness of any
Restricted   Subsidiary   or  the  Company  or  guarantees  by  the  Company  of
Indebtedness of any Restricted Subsidiaries if the Indebtedness so guaranteed is
permitted  under  another  provision  of  this  Section  4.7 and so long as such
guarantee otherwise complies with this Indenture;

            (xiii) Indebtedness (including,  without limitation,  Acquired Debt)
to acquire one or more Gaming  Properties if: (a) no Default or Event of Default
shall have  occurred  and be  continuing  at the time of, or would  occur  after
giving  effect on a pro forma  basis to such  incurrence,  and (b) the  Interest
Coverage Ratio for the Company's  most recently ended four full fiscal  quarters
for which internal financial statements are available  immediately preceding the
date on which such additional  Indebtedness is to be incurred (the "Four Quarter
Reference  Period")  would  have  been  greater  than (x) 1.5 to 1.0 if the last
fiscal  quarter  in the Four  Quarter  Reference  Period is either  the first or
second fiscal quarter of 2004, (y) 1.75 to 1.0 if the last fiscal quarter in the
Four Quarter Reference Period is either in the third or fourth fiscal quarter of
2004 and (z) 2.0 to 1.0 otherwise,  in each case determined on a pro forma basis
(including a pro forma application of the net proceeds therefrom),  as set forth
in the definition of Interest Coverage Ratio, as if such additional Indebtedness
had been incurred at the beginning of such four-quarter period; and

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            (xiv)  Indebtedness  not otherwise  permitted by clauses (i) through
(xiii) of this  Section  4.7(b) in an  aggregate  principal  amount (or accreted
value,  as  applicable) at any time  outstanding  pursuant to this clause (xiv),
including all Refinancing  Indebtedness  incurred to repay,  redeem,  discharge,
retire, defease, refund, refinance or replace any Indebtedness incurred pursuant
to this clause (xiv), not to exceed $10,000,000.

      (c) Upon each incurrence of Indebtedness,  if such Indebtedness could have
been incurred under more than one provision of this Section 4.7, (i) the Company
may designate  pursuant to which provision of this Section 4.7 such Indebtedness
is being incurred,  (ii) the Company may subdivide an amount of Indebtedness and
designate more than one provision  pursuant to which such amount of Indebtedness
is being  incurred and shall be permitted to classify such item of  Indebtedness
on the date of its  incurrence,  or later  reclassify,  all or a portion of such
item of  Indebtedness,  in any manner that  complies  with this Section 4.7, and
(iii) such Indebtedness shall not be deemed to have been incurred or outstanding
under any other provision of this Section 4.7 except that all incurrences  under
the Notes, the Subsidiary  Guaranties and this Indenture shall be deemed to have
been incurred pursuant to Section 4.7(b)(vi) above.

SECTION 4.8   LIMITATION ON LIENS

      The Issuers shall not, and shall not permit any Restricted  Subsidiary to,
directly or indirectly, create, incur, assume or suffer to exist any Lien on any
asset (including, without limitation, all real, tangible or intangible property)
of the Company or any  Restricted  Subsidiary,  whether  now owned or  hereafter
acquired,  or on any income or profits therefrom,  or assign or convey any right
to receive income therefrom, except Permitted Liens.

SECTION 4.9   LIMITATION ON RESTRICTED PAYMENTS

      (a) The  Issuers  shall not,  and shall not  permit any of the  Restricted
Subsidiaries to, directly or indirectly make a Restricted Payment unless, at the
time of such Restricted Payment:

            (i) no Default or Event of Default has occurred and is continuing or
would occur as a consequence thereof, and

            (ii) immediately after giving effect to such Restricted Payment on a
pro  forma  basis,  the  Company  could  incur  at  least  $1.00  of  additional
Indebtedness under the Interest Coverage Ratio test set forth in Section 4.7(a),
and

            (iii) such  Restricted  Payment (the value of any such  payment,  if
other than cash,  being  determined in good faith by the Managers of the Company
and evidenced by a resolution set forth in an Officers' Certificate delivered to
the Trustee),  together with the aggregate of all other Restricted Payments made
after the Issue Date (including  Restricted  Payments  permitted by clauses (i),
(ii), (ix) and (x) of Section 4.9(b)

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<PAGE>

hereof  and  excluding  Restricted  Payments  permitted  by  the  other  clauses
therein), is less than the sum of:

            (1) 50% of the Consolidated Net Income of the Company for the period
(taken as one  accounting  period)  from the  beginning of the first full fiscal
quarter  immediately  following the Issue Date to the end of the Company's  most
recently  ended  fiscal  quarter for which  internal  financial  statements  are
available at the time of such Restricted  Payment (or, if such  Consolidated Net
Income for such period is a deficit, 100% of such deficit), plus

            (2)  100% of the  aggregate  net cash  proceeds  (or of the net cash
proceeds  received upon the conversion of non-cash  proceeds into cash) received
by the Company from (x) the  issuance or sale,  other than to a  Subsidiary,  of
Equity Interests of the Company (other than Disqualified  Capital Stock) and (y)
any equity contribution from a holder of the Company's Capital Stock (other than
a Subsidiary), in each case, after the Issue Date and on or prior to the time of
such Restricted Payment, plus

            (3)  100% of the  aggregate  net cash  proceeds  (or of the net cash
proceeds  received upon the conversion of non-cash  proceeds into cash) received
by the Company from the  issuance or sale,  other than to a  Subsidiary,  of any
convertible or exchangeable debt security of the Company that has been converted
or  exchanged  into Equity  Interests  of the Company  (other than  Disqualified
Capital  Stock)  pursuant  to the terms  thereof  after the Issue Date and on or
prior to the time of such Restricted  Payment (including any additional net cash
proceeds received by the Company upon such conversion or exchange), plus

            (4) the aggregate Return from  Unrestricted  Subsidiaries  after the
Issue Date and on or prior to the time of such Restricted Payment.

      (b) The foregoing provisions shall not prohibit:

            (i) the  payment  of any  dividend  within 60 days after the date of
declaration  thereof, if at said date of declaration such payment would not have
been prohibited by the provisions of this Indenture;

            (ii) the redemption,  purchase,  retirement or other  acquisition of
any Equity  Interests  of the  Company  or  Indebtedness  of the  Company or any
Restricted  Subsidiary  in  exchange  for,  or  out  of  the  proceeds  of,  the
substantially  concurrent  sale (other than to a  Subsidiary)  of,  other Equity
Interests of the Company (other than Disqualified Capital Stock);

            (iii)  with  respect to each tax year or  portion  thereof  that the
Company  qualifies  as a Flow  Through  Entity and so long as Section  4.9(a)(i)
above is satisfied,  the payment of Permitted Tax Distributions (whether paid in
such tax year or portion thereof,  or any subsequent tax year);  provided,  that
(A) prior to the  first  payment  of  Permitted  Tax  Distributions  during  any
particular  calendar year the Company  provides an Officers'  Certificate and an
Opinion of Counsel to the effect that the Company and

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<PAGE>

each other Flow Through Entity in respect of which such  distributions are being
made  qualify as Flow Through  Entities for Federal  income tax purposes and for
the states in respect  of which such  distributions  are being made for such tax
year or portion thereof,  (B) at the time of such distribution,  the most recent
audited financial  statements of the Company for periods including such tax year
or portion thereof  provided to the Trustee pursuant to Section 4.3 provide that
the  Company  and each  subsidiary  of the  Company  in  respect  of which  such
distributions are being made was treated as a Flow Through Entity for the period
of such financial statements, and (C) in the case of the portion, if any, of any
Permitted Tax  Distribution  that is proposed to be distributed for a particular
taxable  period  or  portion  thereof,  which  portion  of  such  Permitted  Tax
Distribution  is  attributable to a Flow Through Entity that is not a Restricted
Subsidiary,  such portion of such proposed  Permitted Tax Distribution  shall be
limited to the Excess Cash Distribution Amount for Taxes;

            (iv) the redemption, repurchase or payoff of any Indebtedness of the
Company or a Restricted Subsidiary with proceeds of any Refinancing Indebtedness
permitted to be incurred pursuant to clause (xi) of Section 4.7(b);

            (v)  distributions  or  payments to PGP for or in respect of (A) tax
preparation,  accounting, licensure, legal and administrative fees and expenses,
including  travel and  similar  reasonable  expenses,  incurred on behalf of the
Issuers or their  respective  Subsidiaries or in connection with PGP's ownership
of the  Issuers  or their  respective  Subsidiaries,  consistent  with  industry
practice,  (B) so long as Section  4.9(a)(i)  above is satisfied,  distributions
pursuant to, and in accordance with, Management  Arrangements and (C) so long as
Section  4.9(a)(i)  above is satisfied,  reasonable and customary  directors' or
managers' fees to, and indemnity  provided on behalf of, the Managers of PGP and
the Company,  and  reimbursement of customary and reasonable  travel and similar
expenses incurred in the ordinary course of business;

            (vi)  (A)  the  repurchase,   redemption  or  other   retirement  or
acquisition of Equity Interests of the Company or any Restricted Subsidiary from
its  employees,  members or managers  (or their heirs or estates) or  employees,
members or managers (or their heirs or estates) of the  Restricted  Subsidiaries
or (B) any  dividend,  distribution  or other  payment  to PGP to enable  PGP to
repurchase,  redeem, or otherwise retire or acquire Equity Interests of PGP from
any of its  employees,  members  or  managers  (or their  heirs or  estates)  or
employees,  members or  managers  (or their  heirs or  estates)  of any of their
respective  subsidiaries,  in the case of each of the preceding  clauses (A) and
(B) upon the death,  disability or  termination of employment or pursuant to the
terms of any subscription,  stock option, stockholder or other agreement or plan
in effect on the Issue Date in an aggregate  amount pursuant to this clause (vi)
to all such  employees,  members or managers  (or their heirs or estates) not to
exceed  $750,000  in any  twelve  month  period  on and  after  the  Issue  Date
(provided,  however,  that any amounts not used in any such twelve  month period
may be carried forward to the next succeeding twelve month period until used);

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            (vii) the  redemption  and  repurchase  of any Equity  Interests  or
Indebtedness  of PGP, the Company or any of the Restricted  Subsidiaries  to the
extent required by any Gaming Authority;

            (viii) the  payment of (x)  accrued  distributions  under the Seller
Preferred  in  accordance  with its terms and (y) an amount not in excess of the
face amount of the Seller Preferred  outstanding on the Issue Date, plus accrued
and unpaid distributions thereon as of the redemption date;

            (ix)  any  dividend,  distribution  or other  payment  by any of the
Restricted  Subsidiaries  on its Equity  Interests  that is paid pro rata to all
holders of such Equity  Interests;

            (x) the declaration and payment of dividends  and  distributions  to
holders of Disqualified Equity Interests of the Company or any of the Restricted
Subsidiaries issued or incurred in accordance with Section 4.7;

            (xi) consummation on the Issue Date of the Transactions; and

            (xii) so long as Section  4.9(a)(i)  above is satisfied,  Restricted
Payments not  otherwise  permitted  by this  Section 4.9 in an aggregate  amount
pursuant to this clause (xii) not to exceed $15,000,000.

      Promptly  following  the end of  each  fiscal  quarter  during  which  any
Restricted  Payment was made  pursuant to clause  (iii) of Section  4.9(a),  the
Company shall deliver to the Trustee an Officers'  Certificate stating that each
such Restricted Payment was permitted and setting forth the basis upon which the
calculations required by this Section 4.9 were computed,  which calculations may
be based upon the Company's latest available internal financial statements.  For
purposes of this  Section  4.9,  the amount of any  Restricted  Payment  made or
returned,  if other than in cash,  shall be the fair market  value  thereof,  as
determined in the reasonable good faith judgment of the Managers of the Company,
unless stated otherwise, at the time made or returned, as applicable.

      For  purposes  of  determining  compliance  with this  Section  4.9,  if a
Restricted  Payment  meets  the  criteria  of more  than  one of the  exceptions
described  in clauses (i) through  (x) and (xii) of Section  4.9(b)  above or is
entitled to be made  according to Section  4.9(a),  the Company may, in its sole
discretion,  classify the  Restricted  Payment in any manner that  complies with
this Section 4.9.

SECTION 4.10   LIMITATION ON RESTRICTIONS ON SUBSIDIARY DIVIDENDS

      The Issuers shall not, and shall not permit any Restricted  Subsidiary to,
directly or indirectly,  create or otherwise  cause or suffer to exist or become
effective  any  encumbrance  or  restriction  on the  ability of any  Restricted
Subsidiary to:

            (a) pay dividends or make any other  distributions to the Company or
any of the Restricted  Subsidiaries (i) on such Restricted  Subsidiary's Capital
Stock or (ii)

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with  respect to any other  interest or  participation  in, or measured by, such
Restricted Subsidiary's profits, or

      (b) pay any  Indebtedness  owed to the  Company  or any of the  Restricted
Subsidiaries, or

      (c)  make  loans  or  advances  to the  Company  or any of the  Restricted
Subsidiaries, or

      (d)  transfer  any of its assets to the  Company or any of the  Restricted
Subsidiaries,

except,  with respect to clauses (a) through (d) above, for such encumbrances or
restrictions existing under or by reason of:

            (1) a Senior Credit  Facility  containing  dividend or other payment
restrictions  that are not more  restrictive in any material  respect than those
contained in this Indenture on the Issue Date;

            (2) this Indenture, the Security Documents and the Notes;

            (3)  applicable  law  or  any  applicable   rule  or  order  of  any
Governmental Authority;

            (4) Acquired Debt; provided, that such encumbrances and restrictions
are not  applicable  to any Person,  or the  properties or assets of any Person,
other than the Person, or the property or assets of the Person, so acquired;

            (5)  customary  non-assignment  and  net  worth  provisions  of  any
contract, lease or license entered into in the ordinary course of business;

            (6) customary  restrictions  on the transfer of assets  subject to a
Permitted Lien imposed by the holder of such Lien;

            (7) the agreements  governing  Refinancing  Indebtedness;  provided,
that such  restrictions  contained in any agreement  governing such  Refinancing
Indebtedness  are  no  more  restrictive  in any  material  respect  than  those
contained in any agreements governing the Indebtedness being refinanced;

            (8) the provisions of any Indebtedness or other agreements  existing
on the Issue Date, as such  agreements are in effect on the Issue Date,  without
giving effect to any amendment or supplement thereto or modification thereof, in
each case, to the extent not more  restrictive in any material respect than such
provisions as in effect on the Issue Date;

            (9) any restrictions with respect to a Restricted Subsidiary imposed
pursuant  to a  binding  agreement  that has been  entered  into for the sale or
disposition  of all or  substantially  all of the Equity  Interests or assets of
such Restricted

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Subsidiary;  provided, that such restrictions only apply to the Equity Interests
or assets of such Restricted Subsidiary being sold; and

            (10) customary  restrictions imposed on the transfer of copyrighted,
trademarked or patented materials.

SECTION 4.11   ADDITIONAL COLLATERAL

      The Issuers shall,  and shall cause each of the Subsidiary  Guarantors to,
grant to the  Trustee a first  priority  security  interest  in all  Collateral,
whether  owned on the Issue Date or  thereafter  acquired,  and to  execute  and
deliver all documents and to take all action reasonably necessary to perfect and
protect such a security interest in favor of the Trustee,  in each case, subject
to the terms of the Intercreditor Agreement.

SECTION 4.12   LIMITATION ON TRANSACTIONS WITH AFFILIATES

      (a) The  Issuers  shall not,  and shall not  permit any of the  Restricted
Subsidiaries  to,  directly or indirectly,  sell,  lease,  transfer or otherwise
dispose of any of its  properties  or assets to, or  purchase  any  property  or
assets from, or enter into any contract, agreement, understanding, loan, advance
or guaranty  with, or for the benefit of, any Affiliate of the Issuers or any of
the Restricted Subsidiaries (each of the foregoing, an "Affiliate Transaction"),
except for:

            (i) Affiliate Transactions that, together with all related Affiliate
Transactions,  have an aggregate  value of not more than  $1,000,000;  provided,
that such transactions are conducted in good faith and on terms that are no less
favorable to such Issuer or the relevant  Restricted  Subsidiary than those that
would have been obtained in a comparable transaction at such time by such Issuer
or such Restricted Subsidiary on an arm's length basis from a Person that is not
an Affiliate of such Issuer or such Restricted Subsidiary;

            (ii)  Affiliate   Transactions  that,   together  with  all  related
Affiliate  Transactions,  have an aggregate  value of not more than  $5,000,000;
provided,  that (a) a majority of the disinterested  Managers of the Company or,
if none, a disinterested  committee appointed by the Managers of the Company for
such purpose,  determine that such  transactions are conducted in good faith and
on terms that are no less  favorable to such Issuer or the  relevant  Restricted
Subsidiary than those that would have been obtained in a comparable  transaction
at such time by such Issuer or such  Restricted  Subsidiary  on an arm's  length
basis from a Person that is not an Affiliate  of such Issuer or such  Restricted
Subsidiary  and (b) prior to entering  into such  transaction  the Company shall
have  delivered  to the  Trustee an  Officers'  Certificate  certifying  to such
effect; or

            (iii) Affiliate  Transactions  for which the Company delivers to the
Trustee an opinion issued by an accounting, appraisal or investment banking firm
of  national  standing  (other  than  Jefferies  & Company,  Inc.  or any of its
Affiliates)  as to the  fairness  of such  transaction  to such  Issuer  or such
Restricted Subsidiary from a financial point of view.

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<PAGE>

      (b) Notwithstanding the foregoing, the following shall be deemed not to be
Affiliate Transactions:

            (i)  transactions  between or among the Issuers and/or any or all of
the Restricted Subsidiaries;

            (ii)  Restricted  Payments  permitted  by  the  provisions  of  this
Indenture described above under Section 4.9;

            (iii) reasonable and customary  compensation  (including  directors'
fees)  paid to,  and  indemnity  and  customary  employee  benefit  arrangements
(including  directors'  and  officer's  liability  insurance)  provided  for the
benefit of, any director,  officer, employee or consultant of the Company or any
Restricted  Subsidiary,  or Manager  of PGP,  in each case  entered  into in the
ordinary  course of business  and for  services  provided to the  Company,  such
Restricted Subsidiary or PGP,  respectively,  as determined in good faith by the
Managers of the Company;

            (iv) any  agreement  or  arrangement  as in effect on the Issue Date
among the Issuers and/or one or more Restricted  Subsidiaries,  on the one hand,
and any officers or Managers  thereof and/or any  Affiliates of the Company,  on
the other hand (without giving effect to any amendment or supplement  thereto or
modification thereof, except for any such amendment, supplement, modification or
replacement  agreement  that is not more  disadvantageous  to the Holders in any
material respect than the original  agreement  thereof as in effect on the Issue
Date), and any transactions contemplated thereby;

            (v) Permitted Investments (other than Permitted Investments pursuant
to clause (xiii) of the definition thereof); and

            (vi)  transactions  with  a  joint  venture  engaged  in  a  Related
Business;  provided,  that all the outstanding ownership interests of such joint
venture are  controlled  only by the Company,  the Restricted  Subsidiaries  and
Persons who are not Affiliates of the Company.

SECTION 4.13   LIMITATION ON ASSET SALES

      (a) The Issuers shall not, and shall not permit any Restricted  Subsidiary
to, make any Asset Sale unless:

            (i) such Issuer or such Restricted Subsidiary receives consideration
at the time of such Asset Sale not less than the fair market value of the assets
subject to such Asset Sale (as  determined  by the  Company's  Managers  in good
faith);

            (ii) at least 75% of the consideration for such Asset Sale is in the
form of either (a) cash or Cash Equivalents or liabilities of the Company or any
Restricted   Subsidiary   (other  than  liabilities  that  are  by  their  terms
subordinated  to the Notes or any  Subsidiary  Guaranty) that are assumed by the
transferee of such assets

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<PAGE>

(provided,  that following such Asset Sale,  there is no further recourse to the
Company  or the  Restricted  Subsidiaries  or the  Company  and  the  Restricted
Subsidiaries are fully indemnified with respect to such  liabilities;  provided,
further,  that the 75%  limitation set forth in this clause (ii) of this Section
4.13(a)  shall not apply to any  proposed  Asset  Sale for which an  independent
certified  accounting  firm has certified to the Managers of the Company and the
Trustee that the after-tax cash portion of the  consideration  to be received by
the Company or such  Restricted  Subsidiary in such proposed Asset Sale is equal
to or greater than what the net after-tax cash proceeds would have been had such
proposed  Asset Sale complied with the 75%  limitation  set forth in this clause
(ii) of this paragraph),  or (b) assets of the type described in clause (iii)(A)
of this Section 4.13(a) below; and

            (iii) within 360 days of such Asset Sale,  the Net Proceeds  thereof
are (A)  invested  in assets  related  to the  business  of the  Company  or the
Restricted  Subsidiaries  (which, in the case of an Asset Sale of the Diamond Jo
or any  replacement  Gaming Vessel (a  "Replacement  Vessel"),  must be a Gaming
Vessel having a fair market value, as determined by an independent appraisal, at
least  equal to the fair  market  value of the  Diamond  Jo or such  Replacement
Vessel immediately preceding such Asset Sale), (B) applied to repay Indebtedness
under Purchase Money Obligations incurred in connection with the assets so sold,
(C)  applied  to  repay  Indebtedness  under  the  Senior  Credit  Facility  and
permanently  reduce the commitment  thereunder in the amount of the Indebtedness
so repaid or (D) to the extent not used as provided in clauses (A),  (B), or (C)
of this Section  4.13(a)(iii)  or any  combination  thereof,  applied to make an
offer to  purchase  Notes as  described  below  (an  "Excess  Proceeds  Offer");
provided,  that the Company  shall not be  required  to make an Excess  Proceeds
Offer until the amount of Excess Proceeds is greater than $10,000,000.

      (b) All Net Proceeds  from an Event of Loss shall be used as follows:  (1)
first,  the Company shall use such net cash proceeds to the extent  necessary to
rebuild,  repair,  replace or restore  the assets  subject to such Event of Loss
with  comparable  assets and (2) then,  to the extent any Net  Proceeds  from an
Event of Loss are not used as  described in the  preceding  clause (1), all such
remaining  Net  Proceeds  shall  be  reinvested  or  used  as  provided  in  the
immediately preceding Section 4.13(a)(iii).

      (c) Pending the final  application  of any Net  Proceeds,  the Company may
temporarily reduce  Indebtedness under the Senior Credit Facility or temporarily
invest such Net Proceeds in Cash Equivalents.

      (d) Net  Proceeds  not  invested  or  applied  as set  forth in any of the
preceding  subclause (A), (B) or (C) of Section  4.13(a)(iii)  above  constitute
"Excess Proceeds." If the Company elects, or becomes obligated to make an Excess
Proceeds  Offer,  the Issuers shall offer to purchase  Notes having an aggregate
principal  amount equal to the Excess  Proceeds (the  "Purchase  Amount"),  at a
purchase price equal to 100% of the aggregate  principal  amount  thereof,  plus
accrued and unpaid  Interest  (and  Liquidated  Damages) if any, to the purchase
date.  The Issuers must  commence such Excess  Proceeds  Offer not later than 30
days after the  expiration  of the 360 day period  following the Asset Sale that
produced such Excess Proceeds. If the aggregate purchase

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<PAGE>

price for the Notes tendered  pursuant to the Excess Proceeds Offer is less than
the Excess  Proceeds,  the Company and the Restricted  Subsidiaries  may use the
portion of the Excess  Proceeds  remaining  after payment of such purchase price
for general corporate purposes.

      Each Excess  Proceeds  Offer shall remain open for a period of 20 Business
Days and no  longer,  unless a longer  period is  required  by law (the  "Excess
Proceeds Offer  Period").  Promptly after the termination of the Excess Proceeds
Offer  Period,  the Issuers shall  purchase and mail or deliver  payment for the
Purchase Amount for the Notes or portions thereof tendered,  pro rata or by such
other method as may be required by law, or, if less than the Purchase Amount has
been tendered,  all Notes tendered  pursuant to the Excess Proceeds  Offer.  The
principal  amount of Notes to be purchased  pursuant to an Excess Proceeds Offer
may be reduced by the principal  amount of Notes acquired by the Issuers through
purchase  or  redemption  (other  than  pursuant  to a Change of Control  Offer)
subsequent  to the date of the Asset Sale and  surrendered  to the  Trustee  for
cancellation.

      If the Purchase  Amount for the Excess Proceeds Offer hereunder is made on
or after an Interest  Record Date on which the Holders of record have a right to
receive the corresponding Interest due and Liquidated Damages, if any, and on or
before the associated  Interest  Payment Date,  any accrued and unpaid  Interest
(and  Liquidated  Damages,  if any), due on such Interest  Payment Date shall be
paid to the Person in whose name a Note is  registered  at the close of business
on such Interest Record Date.

      Each  Excess   Proceeds  Offer  shall  be  conducted  in  compliance  with
applicable regulations under the Federal securities laws, including Exchange Act
Rule  14e-1.  To the  extent  that  the  provisions  of any  securities  laws or
regulations  conflict with this Section 4.13,  the Issuers shall comply with the
applicable  securities  laws and  regulations  and  shall  not be deemed to have
breached their obligations under this Section 4.13 by virtue thereof.

      The  Issuers  shall  not,  and  shall  not  permit  any of the  Restricted
Subsidiaries  to, create or suffer to exist or become  effective any restriction
that would  impair the ability of the Issuers to make an Excess  Proceeds  Offer
upon an Asset Sale or, if such  Excess  Proceeds  Offer is made,  to pay for the
Notes tendered for purchase.

SECTION 4.14   RESTRICTION ON SALE AND ISSUANCE OF SUBSIDIARY STOCK

      The Issuers shall not, and shall not permit any Restricted  Subsidiary to,
issue or sell any Equity Interests (other than directors'  qualifying shares) of
any Restricted Subsidiary to any Person other than the Company or a Wholly Owned
Subsidiary  of the  Company;  provided,  that  the  Company  and the  Restricted
Subsidiaries  may sell all (but not less  than  all) of the  Capital  Stock of a
Restricted  Subsidiary  owned by the Company and the Restricted  Subsidiaries if
the Net Proceeds from such Asset Sale are used in  accordance  with the terms of
Section 4.13.

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<PAGE>

SECTION 4.15   REPURCHASE UPON A CHANGE OF CONTROL

      (a) Upon the occurrence of a Change of Control, the Issuers shall offer to
repurchase all of the Notes then  outstanding (the "Change of Control Offer") at
a purchase price equal to 101% of the principal amount thereof, plus accrued and
unpaid Interest (and Liquidated Damages, if any), to the date of repurchase (the
"Change of Control  Payment").  Within 30 days  following any Change of Control,
the  Issuers  must mail or cause to be mailed a notice to each  Holder  stating,
among other things:

            (i) the  purchase  price and the  purchase  date,  which shall be no
earlier  than 30 days nor later than 45 days from the date such notice is mailed
(the "Change of Control Payment Date");

            (ii) that any Holder electing to have Notes purchased  pursuant to a
Change of Control Offer shall be required to surrender the Notes,  with the form
entitled  "Option  of  Holder to Elect  Purchase"  on the  reverse  of the Notes
completed,  to the Paying Agent at the address  specified in the notice prior to
the close of business on the third  Business Day preceding the Change of Control
Payment Date; and

            (iii) that the Holder shall be entitled to withdraw such election if
the Paying  Agent  receives,  not later than the close of business on the second
Business Day  preceding the Change of Control  Payment Date, a telegram,  telex,
facsimile  transmission  or letter  setting  forth the name of the  Holder,  the
principal  amount of Notes  delivered  for purchase,  and a statement  that such
Holder is withdrawing his election to have such Notes purchased.

      (b) The Issuers shall comply with the requirements of Rule 14e-1 under the
Exchange Act and any other  securities  laws and  regulations  thereunder to the
extent  such  laws  and  regulations  are  applicable  in  connection  with  the
repurchase  of the Notes in connection  with a Change of Control.  To the extent
that the  provisions of any securities  laws or  regulations  conflict with this
Section 4.15, the Issuers shall comply with the applicable  securities  laws and
regulations  and shall not be deemed to have breached  their  obligations  under
this Section 4.15 by virtue thereof.

      (c) On the Change of Control  Payment  Date,  the  Issuers  shall,  to the
extent  lawful,  (i) accept for payment the Notes or portions  thereof  tendered
pursuant to the Change of Control  Offer,  (ii) deposit with the Paying Agent an
amount  equal to the  Change  of  Control  Payment  in  respect  of all Notes or
portions thereof so tendered and not withdrawn, and (iii) deliver or cause to be
delivered  to the  Trustee the Notes so  accepted,  together  with an  Officers'
Certificate  stating that the Notes or portions  thereof tendered to the Issuers
are accepted for payment. The Paying Agent shall promptly mail to each Holder of
Notes so  accepted  payment in an amount  equal to the  purchase  price for such
Notes,  and the Trustee shall  authenticate and mail (or cause to be transferred
by book  entry)  to each  Holder a new Note  equal in  principal  amount  to any
unpurchased portion of the Notes surrendered,  if any; provided,  that each such
new Note  shall be in the  principal  amount of $1,000 or an  integral  multiple
thereof.  The Issuers shall  announce the results of the Change of Control Offer
on or as soon as practicable after the Change of Control Payment Date.

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<PAGE>

      (d) The Issuers  shall not be  required to make a Change of Control  Offer
upon a Change of Control if a third party  makes the Change of Control  Offer in
the manner,  at the times and otherwise in compliance with the  requirements set
forth in this  Indenture  applicable  to a Change of  Control  Offer made by the
Issuers,  and purchases all Notes validly  tendered and not withdrawn under such
Change of Control Offer.

      (e) If the  Change of Control  Payment  Date  hereunder  is on or after an
Interest  Record Date on which the Holders of record have a right to receive the
corresponding  Interest due and Liquidated Damages, if any, and on or before the
associated   Interest  Payment  Date,  any  accrued  and  unpaid  Interest  (and
Liquidated  Damages,  if any), due on such Interest Payment Date will be paid to
the Person in whose name a Note is  registered  at the close of business on such
Interest Record Date.

SECTION 4.16   SUBSIDIARY GUARANTORS

      All of the Issuers' present and future Restricted Subsidiaries (other than
Foreign Subsidiaries and other than a Restricted  Subsidiary that is a co-Issuer
of the Notes) jointly and severally shall guarantee all principal,  premium,  if
any, Interest and Liquidated  Damages,  if any, on the Notes on a senior secured
basis.

SECTION 4.17   LIMITATION ON STATUS AS INVESTMENT COMPANY

      The Issuers,  the Subsidiary  Guarantors  and the Restricted  Subsidiaries
shall be prohibited  from being required to register as an "investment  company"
(as that term is defined in the Investment  Company Act of 1940, as amended (the
"Investment  Company Act")),  or from otherwise  becoming  subject to regulation
under the Investment Company Act.

SECTION 4.18   MAINTENANCE OF PROPERTIES AND INSURANCE

      The  Issuers  and the  Subsidiary  Guarantors  shall  cause  all  material
properties  used or useful to the conduct of their  business and the business of
each of the Restricted Subsidiaries to be maintained and kept in good condition,
repair and working  order  (reasonable  wear and tear  excepted) in all material
respects and supplied  with all  necessary  equipment and shall cause to be made
all necessary  repairs,  renewals,  replacements,  betterments and  improvements
thereof,  all as in their  reasonable  judgment  may be  necessary,  so that the
business  carried on in connection  therewith  may be properly  conducted at all
times;  provided,  however,  that nothing in this Section 4.18 shall prevent the
Issuers,   any   Subsidiary   Guarantor  or  any  Restricted   Subsidiary   from
discontinuing  any  operation  or  maintenance  of any of  such  properties,  or
disposing of any of them, if such  discontinuance or disposal is (a) in the good
faith judgment of the Managers of each of the Issuers,  desirable in the conduct
of the  business  of  such  entity  and  (b) not  otherwise  prohibited  by this
Indenture or the Security Documents.

      The  Issuers  and  Subsidiary  Guarantors  shall  provide,  or cause to be
provided,  for  themselves and each of the  Restricted  Subsidiaries,  insurance
(including appropriate self-insurance) against loss or damage of the kinds that,
in the reasonable,

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<PAGE>

good faith  opinion of the  Managers  of each of the  Issuers  is  adequate  and
appropriate  for the conduct of the  business  of the  Issuers,  the  Subsidiary
Guarantors and such Restricted Subsidiaries.

SECTION 4.19   CORPORATE EXISTENCE

      Subject to Article V hereof,  the Issuers shall do or cause to be done all
things necessary to preserve and keep in full force and effect (i) their limited
liability  company and corporate  existence,  as applicable,  and the corporate,
partnership  or  other  existence  of each of the  Restricted  Subsidiaries,  in
accordance  with the  respective  organizational  documents  (as the same may be
amended from time to time) of the Issuers or any such Restricted  Subsidiary and
(ii) the rights (charter and statutory),  licenses and franchises of the Issuers
and each of the Restricted  Subsidiaries;  provided,  however,  that the Issuers
shall not be required to preserve any such right,  license or franchise,  or the
corporate, partnership or other existence of any of the Restricted Subsidiaries,
if the Company's  Managers shall  determine in good faith that the  preservation
thereof is no longer desirable in the conduct of the business of the Issuers and
each of the Restricted Subsidiaries, taken as a whole, and that the loss thereof
would not have a material  adverse  effect on the ability of the Issuers and the
Subsidiary  Guarantors  to  satisfy  their  obligations  under  the  Notes,  the
Subsidiary Guaranties and this Indenture.

SECTION 4.20   RESTRICTIONS ON ACTIVITIES OF CAPITAL

      Capital shall not hold any assets,  become liable for any  obligations  or
engage in any business activities; provided, that Capital may be a co-obligor of
the Notes  (including  any Additional  Notes  incurred  pursuant to Section 4.7)
pursuant  to the terms of this  Indenture,  may be a  co-obligor  of the OED 13%
Senior Secured Notes due 2010 pursuant to the terms of the OED Indenture, may be
a co-obligor  under the OED Credit  Facility and the OED FF&E  Facility,  to the
extent  they  remain  outstanding  after the Issue  Date,  and may engage in any
activities directly related or necessary in connection therewith.

SECTION 4.21   ENTITY CLASSIFICATION

      The Company is classified as a Flow Through  Entity and shall not take, or
fail to take,  any action  which  would  result in the  Company no longer  being
classified as a Flow Through  Entity  except (i) pursuant to a Permitted  C-Corp
Conversion or (ii) any transaction permitted under Article V hereof.

SECTION 4.22  RULE 144A INFORMATION

      The Issuers shall,  and the Subsidiary  Guarantors  shall,  furnish to the
Holders or  beneficial  holders of Notes,  upon their  written  request,  and to
prospective  purchasers thereof designated by such Holders or beneficial holders
of Notes, the information  required to be delivered  pursuant to Rule 144A(d)(4)
under the  Securities Act for so long as is required for an offer or sale of the
Notes to qualify for an exemption under Rule 144A.

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<PAGE>

SECTION 4.23  REORGANIZATION TRANSACTIONS

      Notwithstanding  anything  in  this  Indenture  to  the  contrary,  if the
Requisite  Regulatory  Approvals  shall have been  received  the  Reorganization
Transactions  may be consummated  without the consent of any Holder and, for the
avoidance of doubt,  the  Reorganization  Transactions  shall not  constitute an
Asset Sale, an Affiliate  Transaction  or a Restricted  Payment or be subject to
Section 4.14 or Article V.

                                    ARTICLE V
                                   SUCCESSORS

SECTION 5.1   MERGER, CONSOLIDATION OR SALE OF ASSETS

      No Issuer may  consolidate  or merge with or into  (regardless  of whether
such Issuer is the surviving  corporation),  or sell, assign,  transfer,  lease,
convey or otherwise  dispose of all or  substantially  all of its  properties or
assets  (determined on a  consolidated  basis for such Issuer and its Restricted
Subsidiaries) in one or more related transactions to, any other Person, unless:

      (a)  either  (A) such  Issuer is the  surviving  Person or (B) the  Person
formed by or  surviving  any such  consolidation  or merger  (if other than such
Issuer) or to which such sale, assignment,  transfer, lease, conveyance or other
disposition  has been made is either (x) a  corporation  organized  and existing
under  the laws of the  United  States of  America,  any  state  thereof  or the
District  of  Columbia  or  (y)  if at  least  one  Issuer  following  any  such
consolidation,  merger, sale, assignment,  transfer,  lease, conveyance or other
disposition is a corporation organized and existing under the laws of the United
States of America,  any state  thereof or the  District of  Columbia,  a limited
liability  company  formed and existing  under the laws of the United  States of
America, any state thereof or the District of Columbia;

      (b) the Person formed by or surviving any such consolidation or merger (if
other than such Issuer) or the Person to which such sale, assignment,  transfer,
lease, conveyance or other disposition has been made assumes all the Obligations
of such Issuer under the Notes,  this  Indenture,  the Security  Documents,  the
Intercreditor  Agreement and the Registration  Rights  Agreement,  pursuant to a
supplemental  indenture to this Indenture and joinders,  as  applicable,  to the
Security  Documents,  the  Intercreditor  Agreement and the Registration  Rights
Agreement, each in a form reasonably satisfactory to the Trustee,

      (c)  immediately  after giving effect to such  transaction  on a pro forma
basis, no Default or Event of Default exists;

      (d)  such  transaction  would  not  result  in the loss or  suspension  or
material impairment of any Gaming License unless a comparable replacement Gaming
License is effective prior to or  simultaneously  with such loss,  suspension or
material impairment; and

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      (e)  such  Issuer,   or  any  Person  formed  by  or  surviving  any  such
consolidation or merger,  or to which such sale,  assignment,  transfer,  lease,
conveyance or other  disposition has been made, shall be permitted,  at the time
of such  transaction  and after  giving  pro  forma  effect  thereto  as if such
transaction had occurred at the beginning of the applicable four-quarter period,
to incur at least $1.00 of additional  Indebtedness  pursuant to the  applicable
Interest   Coverage   Ratio  test  set  forth  in  Section   4.7(a)  or  Section
4.7(b)(xiii).

SECTION 5.2   SUCCESSOR CORPORATION SUBSTITUTED

      In the event of any transaction  (other than a lease or a transfer of less
than all of the Issuers' assets)  described in and complying with the conditions
listed in Section 5.1 in which such  Issuer is not the  surviving  Person,  such
surviving Person or transferee shall succeed to, and be substituted for, and may
exercise  every right and power of, such Issuer under,  and such Issuer shall be
discharged from its Obligations  under, this Indenture,  the Notes, the Security
Documents and the Registration Rights Agreement, with the same effect as if such
successor Person had been named as such Issuer herein or therein.

                                   ARTICLE VI
                              DEFAULTS AND REMEDIES

SECTION 6.1   EVENTS OF DEFAULT

      (a)  Each of the following  shall  constitute an "Event of Default"  under
this Indenture:

            (i) the Issuers  default in the payment of Interest on any Note when
the same  becomes due and payable and the Default  continues  for a period of 30
days;

            (ii)  the  Issuers  default  in the  payment  of the  principal  (or
premium,  if any) on any Note when the same becomes due and payable at maturity,
upon redemption, by acceleration, in connection with an Excess Proceeds Offer or
a Change of Control Offer or otherwise;

            (iii)  either  of  the  Issuers  default  in the  performance  of or
breaches the provisions of Section 4.13, Section 4.15 or Article V;

            (iv)  either of the  Issuers or any  Subsidiary  Guarantor  fails to
comply with any of its other  agreements or covenants in, or provisions  of, the
Notes or this  Indenture  and the Default  continues  for 60 days after  written
notice  thereof  has been given to the  Issuers by the Trustee or to the Issuers
and the Trustee by the Holders of at least 25% in aggregate  principal amount of
the then  outstanding  Notes,  such  notice  to state  that it is a  "Notice  of
Default";

            (v) an event of default  occurs  under (after  giving  effect to any
waivers,  amendments,  applicable grace periods or any extension of any maturity

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date) any mortgage,  indenture or instrument  under which there may be issued or
by which there may be secured or evidenced any  Indebtedness  for money borrowed
by the  Issuers  or any  Restricted  Subsidiary  (or the  payment  of  which  is
guaranteed  by  the  Issuers  or  any  Restricted   Subsidiary),   whether  such
Indebtedness  or guaranty now exists or is created  after the Issue Date, if (a)
either (1) such default results from the failure to pay principal of or interest
on such Indebtedness or (2) as a result of such event of default the maturity of
such  Indebtedness  has been  accelerated,  and (b) the principal amount of such
Indebtedness,  together with the principal amount of any other such Indebtedness
with respect to which such a payment event of default  (after the  expiration of
any applicable grace period or any extension of the maturity date) has occurred,
or the  maturity of which has been so  accelerated,  exceeds  $5,000,000  in the
aggregate;

            (vi) a final non-appealable judgment or judgments for the payment of
money  (other  than to the  extent  of any  judgment  as to  which  a  reputable
insurance company has accepted liability) is or are entered by a court or courts
of competent  jurisdiction  against  either of the Issuers or any Subsidiary and
such judgment or judgments are not  discharged,  bonded or stayed within 60 days
after  entry,  provided  that  the  aggregate  of  all  such  judgments  exceeds
$5,000,000;

            (vii) the cessation of  substantially  all gaming  operations of the
Company  and the  Restricted  Subsidiaries,  taken as a whole,  for more than 90
days, except as a result of an Event of Loss;

            (viii) any revocation,  suspension,  expiration (without previous or
concurrent  renewal)  or  loss  of any  Gaming  License  of the  Company  or any
Restricted Subsidiary for more than 90 days;

            (ix) any Subsidiary  Guaranty of a Subsidiary  Guarantor  which is a
Significant Subsidiary ceases to be in full force and effect or shall be held in
any judicial  proceeding to be  unenforceable or invalid or is declared null and
void (other than in  accordance  with the terms of the  Subsidiary  Guaranty and
this Indenture) or any Subsidiary  Guarantor  which is a Significant  Subsidiary
denies or  disaffirms  its  Obligations  under its  Subsidiary  Guaranty  or the
Security  Documents (in each case,  other than by reason of the  termination  of
this Indenture or the release of any such Subsidiary Guaranty in accordance with
this Indenture);

            (x) (A) any event of default under a Security Document (after giving
effect to any applicable grace periods,  applicable  notice periods,  waivers or
amendments)  or (B) the failure of the Issuers or any  Restricted  Subsidiary to
comply with any material agreement or covenant in, or material provision of, any
of the Security Documents, or any breach in any material respect of any material
representation  or warranty made by the Issuers or any Restricted  Subsidiary in
any  Security  Document,  and the  continuance  of such  failure or breach for a
period of 30 days after written notice is given to the Issuers by the Trustee or
to the  Issuers  and the  Trustee by the  Holders  of at least 25% in  aggregate
principal amount of the Notes outstanding;

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<PAGE>

            (xi) any of the  Security  Documents  ceases to be in full force and
effect or any of the Security  Documents  ceases to give the Trustee (or, in the
case of a mortgage,  ceases to give the Trustee or any other  trustee under such
mortgage) any of the Liens, rights, powers or privileges purported to be created
thereby,  or any of the Security  Documents is declared null and void, or any of
the Issuers or any Subsidiary Guarantor denies that it has any further liability
under  any  Security  Document  to which it is a party or gives  notice  of such
effect (in each case other than by reason of the  termination  of this Indenture
or any such Security Document in accordance with its terms or the release of any
Subsidiary  Guarantor in accordance  with this Indenture) and the continuance of
such  failure  for a period  of 30 days  after  written  notice  is given to the
Issuers by the  Trustee or to the  Issuers  and the Trustee by the Holders of at
least 25% in aggregate principal amount of the Notes outstanding;

            (xii) either of the Issuers or any Subsidiary  Guarantor pursuant to
or within the meaning of any Bankruptcy Law:

                  (1)   commences a voluntary case,

                  (2)   consents to the entry of an order for relief  against it
                        in an involuntary case,

                  (3)   consents to the  appointment of a custodian of it or for
                        all or substantially all of its property,

                  (4)   makes  a  general  assignment  for  the  benefit  of its
                        creditors, or

                  (5)   admits in writing its inability to pay debts as the same
                        become due; and

            (xiii) a court of competent  jurisdiction  enters an order or decree
under any Bankruptcy Law that:

                  (1)   is for  relief  against  either  of the  Issuers  or any
                        Subsidiary Guarantor in an involuntary case,

                  (2)   appoints  a  custodian  of either of the  Issuers or any
                        Subsidiary  Guarantor or for all or substantially all of
                        their property, or

                  (3)   orders the liquidation of either of the Issuers,  or any
                        Subsidiary Guarantor,

and the order or decree remains unstayed and in effect for 60 days.

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      (b) The Issuers are required,  upon becoming aware of any Default or Event
of Default,  to deliver to the Trustee a statement  specifying  such  Default or
Event of Default  and what action the Issuers are taking or propose to take with
respect thereto.

SECTION 6.2   ACCELERATION

      Subject  to the  terms  of the  Intercreditor  Agreement,  if an  Event of
Default  (other than an Event of Default  specified in clause (xii) or (xiii) of
Section  6.1(a)) occurs and is continuing,  the Trustee by written notice to the
Issuers,  or the  Holders  of at  least  25% in  principal  amount  of the  then
outstanding Notes by written notice to the Issuers and the Trustee,  may declare
the unpaid  principal of and any accrued  Interest (and Liquidated  Damages,  if
any)  on all  the  Notes  to be due  and  payable.  Upon  such  declaration  the
principal,  premium,  if any, Interest (and Liquidated Damages, if any) shall be
due and payable immediately. If an Event of Default specified in clause (xii) or
(xiii) of Section 6.1(a) occurs,  all outstanding  Notes shall ipso facto become
and be immediately  due and payable  without any declaration or other act on the
part  of the  Trustee  or any  Holder.  At  any  time  after  a  declaration  of
acceleration,  but before a judgment  or decree for payment of the money due has
been obtained by the Trustee,  the Holders of a majority in aggregate  principal
amount of the Notes  outstanding,  by  written  notice  to the  Issuers  and the
Trustee,  may rescind and annul such declaration and its consequences if (a) the
Issuers have paid or deposited  with the Trustee a sum sufficient to pay (i) all
sums paid or advanced by the Trustee and the reasonable compensation,  expenses,
disbursements  and  advances of the Trustee,  its agents and  counsel,  (ii) all
overdue  Interest  (including  any Interest  accrued  subsequent  to an Event of
Default  specified  in clause (xii) or (xiii) of Section  6.1(a) and  Liquidated
Damages,  if any, on all Notes,  (iii) the principal of and premium,  if any, on
any Notes that have become due otherwise than by such  declaration or occurrence
of acceleration and Interest thereon at the rate borne by the Notes, and (iv) to
the extent  that  payment of such  Interest  is lawful,  Interest  upon  overdue
Interest at the rate borne by the Notes;  (b) all Events of Default,  other than
the  non-payment  of principal of and Interest on the Notes that have become due
solely by such  declaration  or occurrence of  acceleration,  have been cured or
waived;  and (c) the rescission  would not conflict with any judgment,  order or
decree of any court of competent jurisdiction.

SECTION 6.3   OTHER REMEDIES

      If an Event of Default occurs and is  continuing,  subject to the terms of
the  Intercreditor  Agreement,  the Trustee may pursue any  available  remedy to
collect the payment of principal,  premium,  if any, Liquidated Damages, if any,
and Interest on the Notes or to enforce the  performance of any provision of the
Notes or this Indenture.

      The Trustee may maintain a  proceeding  even if it does not possess any of
the Notes or does not produce any of them in the proceeding. A delay or omission
by the Trustee or any Holder in exercising any right or remedy  accruing upon an
Event of Default  shall not impair the right or remedy or constitute a waiver of
or  acquiescence  in the Event of Default.  All remedies are  cumulative  to the
extent permitted by law.

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SECTION 6.4   WAIVER OF DEFAULTS

      Subject to Section  6.7  hereof,  Holders of a majority  of the  aggregate
principal amount of the then outstanding  Notes by written notice to the Trustee
may on behalf of the Holders of all of the Notes (a) waive any  existing or past
Default or Event of Default and its consequences under this Indenture (x) except
a  continuing  Default or Event of Default in the payment of the  principal  of,
premium, if any, or Interest (and Liquidated Damages, if any) on any Note or (y)
a Default or an Event of Default with respect to any covenant or provision which
cannot  be  modified  or  amended  without  the  consent  of the  Holder of each
outstanding Note affected or supermajority  approval,  which Default or Event of
Default may be waived only with the consent of each outstanding Note affected or
such supermajority  approval,  respectively,  and/or (b) rescind an acceleration
and its  consequences if the rescission  would not conflict with any judgment or
decree and if all existing Events of Default (except  nonpayment of principal or
Interest that has become due solely because of the acceleration) have been cured
or waived.  Upon any such  waiver,  such Default  shall cease to exist,  and any
Event of Default arising  therefrom shall be deemed to have been cured for every
purpose of this Indenture;  but no such waiver shall extend to any subsequent or
other Default or impair any right consequent thereon.

SECTION 6.5   CONTROL BY MAJORITY

      Subject to all provisions of the Indenture and applicable law, the Holders
of a majority in aggregate  principal amount of the then  outstanding  Notes may
direct the time,  method and place of conducting  any  proceeding for exercising
any remedy  available to the Trustee or exercising any trust or power  conferred
on the Trustee.  However,  the Trustee may refuse to follow any  direction  that
conflicts with law or this Indenture,  that the Trustee determines in good faith
may be unduly  prejudicial  to the rights of other  Holders  not  joining in the
giving of such  direction or that may involve the Trustee in personal  liability
and  the  Trustee  may  take  any  other  action  it  deems  proper  that is not
inconsistent with any such direction received from Holders.

SECTION 6.6   LIMITATION ON SUITS

      A Holder may pursue a remedy with  respect to this  Indenture or the Notes
only if:

      (a) the Holder gives to the Trustee  written notice of a continuing  Event
of Default;

      (b) the Holders of at least 25% in aggregate  principal amount of the then
outstanding Notes make a written request to the Trustee to pursue the remedy;

      (c) such Holder or Holders offer and, if requested, provide to the Trustee
indemnity satisfactory to the Trustee against any costs, liability or expense;

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<PAGE>

      (d) the  Trustee  does not comply  with the  request  within 60 days after
receipt of the  request  and the offer  and,  if  requested,  the  provision  of
indemnity; and

      (e) during  such  60-day  period the  Holders of a majority  in  principal
amount  of the  then  outstanding  Notes do not give  the  Trustee  a  direction
inconsistent with the request.

A Holder may not use this Indenture to prejudice the rights of another Holder or
to obtain a preference or priority over another Holder.

SECTION 6.7   RIGHTS OF HOLDERS OF NOTES TO RECEIVE PAYMENT

      Notwithstanding any other provision of this Indenture, except as permitted
by  Section  9.2  hereof,  the right of any  Holder to  receive  payment  of the
principal of, premium and Interest (and Liquidated  Damages,  if any) on a Note,
on or after  the  respective  due  dates  expressed  in the Note  (including  in
connection  with an offer to purchase) or to bring suit for the  enforcement  of
any such  payment on or after such  respective  dates,  shall not be impaired or
affected without the consent of such Holder.

SECTION 6.8   COLLECTION SUIT BY TRUSTEE

      If an Event of Default specified in Section 6.1(a)(i) or 6.1(a)(ii) hereof
occurs and is continuing,  the Trustee is authorized to recover  judgment in its
own name and as trustee of an express  trust  against  the Issuers for the whole
amount of principal of, premium and Interest (and  Liquidated  Damages,  if any)
remaining  unpaid on the Notes and  interest  on overdue  principal  and, to the
extent lawful,  interest and such further amount as shall be sufficient to cover
the costs and expenses of  collection,  including the  reasonable  compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.

SECTION 6.9   TRUSTEE MAY FILE PROOFS OF CLAIM

      The Trustee is authorized to file such proofs of claim and other papers or
documents  as may be  necessary  or advisable in order to have the claims of the
Trustee  (including  any  claim  for  the  reasonable  compensation,   expenses,
disbursements  and  advances of the  Trustee,  its agents and  counsel)  and the
Holders  allowed in any  judicial  proceedings  relative  to the Issuers (or any
other obligor upon the Notes),  their  creditors or their  property and shall be
entitled and  empowered to collect,  receive and  distribute  any money or other
property payable or deliverable on any such claims and any custodian in any such
judicial proceeding is hereby authorized by each Holder to make such payments to
the Trustee,  and in the event that the Trustee  shall  consent to the making of
such payments  directly to the Holders,  to pay to the Trustee any amount due to
it for the reasonable compensation,  expenses, disbursements and advances of the
Trustee,  its agents and counsel,  and any other  amounts due the Trustee  under
Section  7.7 hereof.  To the extent  that the payment of any such  compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, and
any other  amounts due the Trustee under Section 7.7 hereof out of the estate in
any such proceeding,  shall be denied for any

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reason, payment of the same shall be secured by a Lien on, and shall be paid out
of, any and all distributions, dividends, money, securities and other properties
that the  Holders  may be  entitled  to  receive in such  proceeding  whether in
liquidation  or under any plan of  reorganization  or  arrangement or otherwise.
Nothing herein  contained  shall be deemed to authorize the Trustee to authorize
or  consent  to or  accept  or  adopt  on  behalf  of any  Holder  any  plan  of
reorganization,  arrangement,  adjustment or composition  affecting the Notes or
the rights of any Holder,  or to authorize the Trustee to vote in respect of the
claim of any Holder in any such proceeding;  provided,  however that the Trustee
may, on behalf of the Holders,  vote for the election of a trustee in bankruptcy
or similar official and may be a member of the creditor's committee.

SECTION 6.10   PRIORITIES

      Subject  to the  terms  of the  Intercreditor  Agreement,  if the  Trustee
collects any money  pursuant to this Article,  it shall pay out the money in the
following order:

      First:  to the  Trustee,  its agents and  attorneys  for amounts due under
Section  7.7  hereof,  including  payment  of  all  compensation,   expense  and
liabilities  incurred,  and all advances  made, by the Trustee and the costs and
expenses  of  collection  (including  the  reasonable  compensation,   expenses,
disbursements and advances of the Trustee, its agents and counsel);

      Second:  to Holders for amounts due and unpaid on the Notes for principal,
Interest and Liquidated Damages, if any, ratably, without preference or priority
of any  kind,  according  to the  amounts  due  and  payable  on the  Notes  for
principal, premium Interest, and Liquidated Damages, if any, respectively;

      Third: without duplication, to the Holders for any other Obligations owing
to the Holders under the Notes or this Indenture; and

      Fourth:  to the  applicable  Issuers or  Subsidiary  Guarantors or to such
other party as a court of competent jurisdiction shall direct.

      The  Trustee  may fix a Record  Date and  payment  date for any payment to
Holders pursuant to this Section 6.10.

SECTION 6.11   UNDERTAKING FOR COSTS

      In any  suit  for the  enforcement  of any  right  or  remedy  under  this
Indenture  or in any suit against the Trustee for any action taken or omitted by
it as a Trustee,  a court in its  discretion may require the filing by any party
litigant  in the suit of an  undertaking  to pay the costs of the suit,  and the
court in its  discretion  may  assess  reasonable  costs,  including  reasonable
attorneys'  fees,  against any party litigant in the suit,  having due regard to
the merits and good faith of the claims or defenses made by the party  litigant.
This Section  6.11 does not apply to a suit by the  Trustee,  a suit by a Holder
pursuant  to  Section  6.7  hereof,  or a suit by  Holders  of more  than 10% in
principal amount of the then outstanding Notes.

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                                   ARTICLE VII
                                     TRUSTEE

SECTION 7.1   DUTIES OF TRUSTEE

      (a) If an Event of Default of which the Trustee has knowledge has occurred
and is  continuing,  the Trustee  shall  exercise  such of the rights and powers
vested in it by this Indenture, and use the same degree of care and skill in its
exercise,  as a prudent person would exercise or use under the  circumstances in
the conduct of such person's own affairs.

      (b)  Except  during  the  continuance  of an Event of Default of which the
Trustee has knowledge:

            (i) the  duties of the  Trustee  shall be  determined  solely by the
express  provisions  of this  Indenture  and the Trustee need perform only those
duties that are specifically  set forth in this Indenture and no others,  and no
implied  covenants or obligations  shall be read into this Indenture against the
Trustee; and

            (ii) in the  absence  of bad  faith on its  part,  the  Trustee  may
conclusively  rely, as to the truth of the statements and the correctness of the
opinions  expressed  therein,  upon  certificates  or opinions  furnished to the
Trustee and  conforming to the  requirements  of this  Indenture;  however,  the
Trustee shall examine the certificates and opinions to determine  whether or not
they conform to the requirements of this Indenture.

      (c) The Trustee may not be relieved from liabilities for its own negligent
action, its own negligent failure to act, or its own willful misconduct,  except
that:

            (i) this paragraph (c) does not limit the effect of paragraph (b) of
this Section 7.1;

            (ii) the Trustee  shall not be liable for any error of judgment made
in good faith by an Officer of the Trustee, unless it is proved that the Trustee
was negligent in ascertaining the pertinent facts; and

            (iii) the Trustee  shall not be liable with respect to any action it
takes or omits to take in good faith in accordance with a direction  received by
it pursuant to Section 6.5 hereof.

      (d) Whether or not therein expressly so provided,  every provision of this
Indenture  that in any way relates to the Trustee is subject to Sections 7.1 and
7.2 hereof.

      (e) No provision of this Indenture  shall require the Trustee to expend or
risk  its own  funds or  incur  any  liability.  The  Trustee  shall be under no
obligation to exercise any of its rights and powers under this  Indenture at the
request of any  Holders,

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<PAGE>

unless such Holder  shall have  offered to the Trustee  security  and  indemnity
satisfactory to it against any loss, liability or expense.

      (f) Upon request from the Issuers,  the Trustee is hereby  authorized  and
directed to and shall enter into the Intercreditor  Agreement in connection with
the Senior Credit Facility and any amendment, restatement,  supplement, renewal,
replacement or other modification  thereof,  entered into in accordance with the
terms of this Indenture, including Section 4.7 hereof.

      (g) The Trustee shall not be liable for interest on any money  received by
it except as the Trustee may agree in writing  with the  Issuers.  Money held in
trust by the  Trustee  need not be  segregated  from other  funds  except to the
extent required by law.

SECTION 7.2   RIGHTS OF TRUSTEE

      (a) In  connection  with  the  Trustee's  rights  and  duties  under  this
Indenture, the Trustee may conclusively rely upon any document believed by it to
be  genuine  and to have been  signed or  presented  by the proper  Person.  The
Trustee need not investigate any fact or matter stated in the document.

      (b) Before the Trustee acts or refrains from acting under this  Indenture,
it may require an Officers'  Certificate  or an Opinion of Counsel or both.  The
Trustee  shall  not be liable  for any  action it takes or omits to take in good
faith in  reliance on such  Officers'  Certificate  or Opinion of  Counsel.  The
Trustee may consult with  counsel and the written  advice of such counsel or any
Opinion of Counsel shall be full and complete  authorization and protection from
liability in respect of any action taken, suffered or omitted by it hereunder in
good faith and in reliance thereon.

      (c) The Trustee may act through its  attorneys and agents and shall not be
responsible  for the  misconduct or negligence of any agent  appointed  with due
care.

      (d) The  Trustee  shall not be liable  for any action it takes or omits to
take in good faith that it  believes  to be  authorized  or within the rights or
powers conferred upon it by this Indenture.

      (e) Unless otherwise specifically provided in this Indenture,  any demand,
request,  direction or notice from the Issuers  shall be sufficient if signed by
an Officer of the Issuers.

      (f) The Trustee shall be under no obligation to exercise any of the rights
or powers  vested in it by this  Indenture at the request or direction of any of
the Holders  unless such Holders  shall have  offered to the Trustee  reasonable
security or indemnity against the costs,  expenses and liabilities that might be
incurred by it in compliance with such request or direction.

      (g) Except with respect to Section 4.1 hereof,  the Trustee  shall have no
duty to inquire as to the  performance  of the Issuers'  covenants in Article IV
hereof.  In addition,  the Trustee shall not be deemed to have  knowledge of any
Default or Event of

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Default  except  (i)  any  Event  of  Default  occurring  pursuant  to  Sections
6.1(a)(i),  6.1(a)(ii) and 4.1 hereof or (ii) any Default or Event of Default of
which the Trustee shall have  received  written  notification  in the manner set
forth in this  Indenture or of which a Responsible  Officer of the Trustee shall
have actual knowledge  thereof or unless written notice of any event which is in
fact a Default or Event of Default is received  by the Trustee at the  Corporate
Trust Office, and such notice references this Indenture and the Notes.  Delivery
of reports,  information  and  documents to the Trustee under Section 4.3 is for
informational purposes only and the Trustee's receipt of the foregoing shall not
constitute   constructive  notice  of  any  information   contained  therein  or
determinable  from  information   contained  therein,   including  the  Issuers'
compliance  with any of their  covenants  thereunder (as to which the Trustee is
entitled to rely exclusively on an Officers' Certificate).

      (h) The  Trustee  shall  not be bound to make any  investigation  into the
facts or matters stated in any resolution,  certificate,  statement, instrument,
opinion,  report, notice, request,  direction,  consent, order, bond, debenture,
note, other evidence of indebtedness or other paper or document, but the Trustee
may, in its  discretion,  make such further inquiry or  investigation  into such
facts or matters as it may see fit.

SECTION 7.3   INDIVIDUAL RIGHTS OF TRUSTEE

      The Trustee in its  individual or any other  capacity may become the owner
or pledgee of Notes and may otherwise  deal with the Issuers or any Affiliate of
the Issuers with the same rights it would have if it were not Trustee.  However,
in the event that the Trustee  acquires any conflicting  interest (as defined in
the TIA) it must  eliminate such conflict  within 90 days,  apply to the SEC for
permission to continue as trustee or resign. Any Agent may do the same with like
rights and duties. The Trustee is also subject to Sections 7.10 and 7.11 hereof.

SECTION 7.4   TRUSTEE'S DISCLAIMER

      The Trustee shall not be responsible for and makes no representation as to
the  validity  or  adequacy  of this  Indenture  or the  Notes,  it shall not be
accountable  for the Issuers'  use of the  proceeds  from the Notes or any money
paid to the Issuers or upon the Issuers'  direction  under any provision of this
Indenture,  it shall not be responsible  for the use or application of any money
received  by any  Paying  Agent  other  than the  Trustee,  and it shall  not be
responsible for any statement or recital herein or any statement in the Notes or
any other document in connection  with the sale of the Notes or pursuant to this
Indenture other than its certificate of authentication.

SECTION 7.5   NOTICE OF DEFAULTS

      If a Default or Event of Default  occurs  and is  continuing  and if it is
known to the Trustee,  the Trustee  shall mail to Holders a notice in the manner
and to the extent  provided by Section 313(c) of the TIA of the Default or Event
of Default  within 90 days  after it occurs.  Except in the case of a Default or
Event of Default  in  payment  of  principal  of,  premium,  if any,  Liquidated
Damages, if any, or Interest on any Note, the

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Trustee may withhold the notice if and so long as a committee of its Responsible
Officers  in  good  faith  determines  that  withholding  the  notice  is in the
interests of the Holders.

SECTION 7.6   REPORTS BY TRUSTEE TO HOLDERS OF THE NOTES

     Within 60 days after each May 15 beginning  with the May 15  following  the
date of this Indenture, and for so long as Notes remain outstanding, the Trustee
shall mail to the Holders a brief  report dated as of such  reporting  date that
complies  with TIA  Section  313(a)  (but if no event  described  in TIA Section
313(a) has occurred within the 12 months preceding the reporting date, no report
need be transmitted).  The Trustee also shall comply with TIA Section 313(b)(2).
The Trustee  shall also  transmit by mail all reports as required by TIA Section
313(c).

     A copy of each  report at the time of its  mailing to the  Holders of Notes
shall be mailed by the Trustee to the Issuers and filed by the Trustee  with the
SEC and each stock exchange on which the Notes are listed in accordance with TIA
Section 313(d). The Issuers shall promptly notify the Trustee when the Notes are
listed on any stock exchange.

      To the extent requested by the Company and at the Company's  expense,  the
Trustee shall provide any Gaming Authority with:

      (a) copies of all notices,  reports and other written  communications that
the Trustee gives to the Holders;

      (b) a list of all of the Holders  promptly after the original  issuance of
the Notes and periodically thereafter if the Company so directs;

      (c) notice of any Default or Event of Default  under this  Indenture,  any
acceleration of the  Indebtedness  evidenced by the Notes, or the institution of
any legal actions or proceedings  before any court or governmental  authority in
respect of a Default or Event of Default;

      (d) notice of the  removal  or  resignation  of the  Trustee  within  five
Business Days of the effectiveness thereof;

      (e) notice of any transfer or  assignment  of rights under this  Indenture
known to the Trustee within five Business Days of the effectiveness thereof;

      (f) a copy of any  amendment  to the Notes or this  Indenture  within five
Business Days of the effectiveness thereof; and

      (g) such other information and documentation  that may be requested by any
Gaming Authority or as otherwise required by applicable law.

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SECTION 7.7   COMPENSATION AND INDEMNITY

      The  Issuers  shall  pay to the  Trustee  from  time  to  time  reasonable
compensation as shall be agreed to in writing by the Issuers and the Trustee for
its acceptance of this  Indenture and services  hereunder and under the Security
Documents.  The  Trustee's  compensation  shall  not be  limited  by any  law on
compensation  of a trustee of an express trust.  The Issuers shall reimburse the
Trustee  promptly upon request for all  reasonable  disbursements,  advances and
expenses  incurred  or  made  by it in  addition  to the  compensation  for  its
services. Such expenses shall include the reasonable compensation, disbursements
and expenses of the Trustee's agents and counsel,  except such disbursements and
expenses as may be attributable to its negligence or bad faith.

      The Issuers and the Subsidiary  Guarantors,  jointly and severally,  shall
indemnify  the  Trustee  against  any and all  losses,  liabilities  or expenses
(including  reasonable  attorneys'  fees)  incurred  by it arising  out of or in
connection  with the  acceptance  or  administration  of its  duties  under this
Indenture and under the Security Documents,  including the costs and expenses of
enforcing  this Indenture and under the Security  Documents  against the Issuers
(including  this Section 7.7) and defending  itself  against any claim  (whether
asserted  by the  Issuers or any Holder or any other  Person)  or  liability  in
connection  with the  exercise  or  performance  of any of its  powers or duties
hereunder,  except,  in each case,  to the extent  any such loss,  liability  or
expense may be attributable to its negligence,  bad faith or willful misconduct.
The Trustee shall notify the Issuers promptly of any claim for which it may seek
indemnity. Failure by the Trustee to so notify the Issuers shall not relieve the
Issuers of their obligations  hereunder.  The Issuers shall defend the claim and
the Trustee  shall  cooperate  in the  defense.  In the event that a conflict of
interest  or   conflicting   defenses   would  arise  in  connection   with  the
representation  of the Issuers and the Trustee by the same counsel,  the Trustee
may have  separate  counsel and the Issuers  shall pay the  reasonable  fees and
expenses of such  counsel.  The  Issuers  need not pay for any  settlement  made
without their consent, which consent shall not be unreasonably withheld.

      The  obligations  of the Issuers  under this Section 7.7 shall survive the
satisfaction and discharge of this Indenture.

      To secure the  Issuers'  payment  obligations  in this  Section  7.7,  the
Trustee  shall have a Lien prior to the Notes on all money or  property  held or
collected  by the  Trustee,  except  that  held in  trust to pay  principal  and
interest on  particular  Notes.  Such Lien shall  survive the  satisfaction  and
discharge of this  Indenture  until such payment  obligations  have been paid in
full.

      When the Trustee  incurs  expenses or renders  services  after an Event of
Default  specified in Sections  6.1(a)(xii) or 6.1(a)(xiii)  hereof occurs,  the
expenses and the compensation for the services  (including the fees and expenses
of its agents and counsel) are intended to constitute expenses of administration
under any Bankruptcy Law.

     The Trustee shall comply with the  provisions  of TIA Section  313(b)(2) to
the extent applicable.

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SECTION 7.8   REPLACEMENT OF TRUSTEE

      A  resignation  or removal of the Trustee and  appointment  of a successor
Trustee shall become effective only upon the successor  Trustee's  acceptance of
appointment  as provided in this  Section 7.8 and upon the  Issuers'  receipt of
notice from the successor Trustee of such appointment.

      The Trustee may resign in writing at any time and be  discharged  from the
trust hereby  created by so notifying the Issuers.  The Holders of a majority in
principal  amount of the then  outstanding  Notes may remove  the  Trustee by so
notifying  the Trustee  and the  Issuers in writing.  The Issuers may remove the
Trustee if:

      (a) the Trustee fails to comply with Section 7.10 hereof;

      (b) the  Trustee is adjudged a bankrupt  or an  insolvent  or an order for
relief is entered with respect to the Trustee under any Bankruptcy Law;

      (c) a  custodian  or public  officer  takes  charge of the  Trustee or its
property; or

      (d) the Trustee becomes incapable of acting.

      If the Trustee  resigns or is removed or if a vacancy exists in the office
of the Trustee for any reason,  the Issuers shall  promptly  appoint a successor
Trustee.  Within one year after the successor Trustee takes office,  the Holders
of a majority in principal  amount of the then  outstanding  Notes may appoint a
successor Trustee to replace the successor Trustee appointed by the Issuers.

      If a  successor  Trustee  does not take  office  within 60 days  after the
retiring Trustee resigns or is removed,  the retiring Trustee,  the Issuers,  or
the Holders of at least 10% in principal  amount of the then  outstanding  Notes
may  petition  any court of  competent  jurisdiction  for the  appointment  of a
successor Trustee.

      If the Trustee,  after written request by any Holder who has been a Holder
for at least six months,  fails to comply with Section 7.10 hereof,  such Holder
may petition any court of competent  jurisdiction for the removal of the Trustee
and the appointment of a successor Trustee.

      A successor Trustee shall deliver a written  acceptance of its appointment
to the  retiring  Trustee and to the  Issuers.  Thereupon,  the  resignation  or
removal of the  retiring  Trustee  shall  become  effective,  and the  successor
Trustee  shall have all the rights,  powers and duties of the Trustee under this
Indenture and the  Intercreditor  Agreement.  The successor Trustee shall mail a
notice of its  succession  to  Holders.  The  retiring  Trustee  shall  promptly
transfer all property held by it as Trustee to the successor  Trustee;  provided
all sums owing to the Trustee  hereunder  have been paid and subject to the Lien
provided for in Section 7.7 hereof.  Notwithstanding  replacement of the Trustee
pursuant to this Section 7.8, the Issuers'  obligations under Section 7.7 hereof
shall continue for the benefit of the retiring Trustee.

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SECTION 7.9   SUCCESSOR TRUSTEE BY MERGER, ETC.

      If the Trustee consolidates,  merges or converts into, or transfers all or
substantially all of its corporate trust business to, another  corporation,  the
successor corporation without any further act shall be the successor Trustee.

SECTION 7.10   ELIGIBILITY; DISQUALIFICATION

      There shall at all times be a Trustee  hereunder  that is a corporation or
trust  company  (or a member  of a bank  holding  company)  organized  and doing
business  under the laws of the United States of America or of any state thereof
that is authorized under such laws to exercise  corporate trustee power, that is
subject to supervision or examination by federal or state  authorities  and that
has (or the bank holding company of which it is a member has) a combined capital
and surplus of at least  $50,000,000  as set forth in its most recent  published
annual report of condition.

     This Indenture  shall always have a Trustee who satisfies the  requirements
of TIA  Section  310(a)(1),  (2) and (5).  The Trustee is subject to TIA Section
310(b).

SECTION 7.11   PREFERENTIAL COLLECTION OF CLAIMS AGAINST ISSUERS

      The  Trustee  is  subject  to  TIA  ss.  311(a),  excluding  any  creditor
relationship  listed in TIA ss.  311(b).  A  Trustee  who has  resigned  or been
removed shall be subject to TIA ss. 311(a) to the extent indicated therein.

                                  ARTICLE VIII
                    LEGAL DEFEASANCE AND COVENANT DEFEASANCE

SECTION 8.1   OPTION TO EFFECT LEGAL DEFEASANCE OR COVENANT DEFEASANCE

      The Issuers may, at the option of their Managers evidenced by a resolution
set forth in an Officers'  Certificate,  elect to have either Section 8.2 or 8.3
hereof be  applied  to all  outstanding  Notes and  Subsidiary  Guaranties  upon
compliance with the conditions set forth below in this Article VIII.

SECTION 8.2   LEGAL DEFEASANCE AND DISCHARGE

      Upon  the  Issuers'  exercise  under  Section  8.1  hereof  of the  option
applicable  to  this  Section  8.2,  each  of the  Issuers  and  the  Subsidiary
Guarantors, as applicable,  shall, subject to the satisfaction of the applicable
conditions  set forth in Section 8.4 hereof,  be deemed to have been  discharged
from its  obligations  with  respect  to all  outstanding  Notes and  Subsidiary
Guaranties,  as  applicable,  on the date the  conditions  set  forth  below are
satisfied (hereinafter,  "Legal Defeasance"). For this purpose, Legal Defeasance
means that the Issuers shall be deemed to have paid and  discharged  all amounts
owed under the outstanding  Notes and the Subsidiary  Guarantors shall be deemed
to  have  paid  and  discharged  the  entire  Indebtedness  represented  by  the
outstanding  Subsidiary  Guaranties,  which  shall  thereafter  be  deemed to be
"outstanding" only for the purposes of Section 8.5 hereof and the other Sections
of this Indenture

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referred  to in  clauses  (a) and (b) of this  Section  8.2  below,  and to have
satisfied all its other obligations under such Notes, such Subsidiary Guaranties
and this  Indenture  (and the  Trustee,  on demand of and at the  expense of the
Issuers,  shall execute proper  instruments  acknowledging  the same,  including
instruments  releasing  the  Collateral  as  security  for  the  Notes  and  the
Subsidiary Guaranties),  except for the following provisions which shall survive
until otherwise terminated or discharged hereunder: (a) the rights of Holders to
receive solely from the trust fund described in Section 8.4 hereof,  and as more
fully set forth in  Section  8.4,  payments  in  respect  of the  principal  of,
premium, if any, and Interest and Liquidated Damages, if any, on such Notes when
such payments are due, (b) the Issuers'  obligations  with respect to such Notes
under  Sections 2.2, 2.3, 2.4, 2.5, 2.6, 2.7, 2.8, 2.10,  4.2, 4.6, 4.17,  4.19,
8.5,  8.6 and  8.7  hereof,  and (c) the  rights,  powers,  trusts,  duties  and
immunities  of the  Trustee  hereunder  and  the  Issuers'  and  the  Subsidiary
Guarantors' obligations in connection therewith.

SECTION 8.3   COVENANT DEFEASANCE

      Upon  the  Issuers'  exercise  under  Section  8.1  hereof  of the  option
applicable to this Section 8.3,  subject to the  satisfaction  of the applicable
conditions  set forth in Section  8.4 hereof,  the  Issuers  and the  Subsidiary
Guarantors  shall be released from their respective  obligations  under Sections
4.3, 4.4, 4.5, 4.7, 4.8, 4.9, 4.10,  4.11,  4.12,  4.13, 4.14, 4.15, 4.16, 4.18,
4.20,  4.21 and 4.22 and  Article V hereof on and after the date the  conditions
set forth below are  satisfied  (hereinafter,  "Covenant  Defeasance"),  and the
Notes and the Subsidiary Guaranties shall thereafter be deemed not "outstanding"
for the purposes of any  direction,  waiver,  consent or  declaration  or act of
Holders (and the consequences of any thereof) in connection with such covenants,
but shall continue to be deemed  "outstanding" for all other purposes  hereunder
(it being  understood  that such  Notes  shall  not be  deemed  outstanding  for
accounting  purposes).  For this purpose,  Covenant  Defeasance means that, with
respect to the outstanding Notes and the Subsidiary Guaranties,  the Issuers and
the Subsidiary Guarantors may omit to comply with and shall have no liability in
respect of any term,  condition or  limitation  set forth in any such  covenant,
whether directly or indirectly,  by reason of any reference  elsewhere herein to
any such  covenant  or by reason of any  reference  in any such  covenant to any
other  provision  herein or in any other  document  and such  omission to comply
shall not  constitute a Default or an Event of Default under Section 6.1 hereof,
but, except as specified  above,  the remainder of this Indenture and such Notes
and Subsidiary  Guaranties shall be unaffected  thereby.  In addition,  upon the
Issuers'  exercise  under  Section 8.1 hereof of the option  applicable  to this
Section 8.3, subject to the satisfaction of the applicable  conditions set forth
in Section 8.4 hereof, (x) Sections  6.1(a)(iii) through 6.1(a)(xi) hereof shall
not constitute  Events of Default to the extent such events occur thereafter and
(y) Sections  6.1(xii) and  6.1(xiii)  hereof shall not  constitute  an Event of
Default to the extent they occur after the 91st day following the  occurrence of
the Issuers'  exercise of Covenant  Defeasance;  provided,  however that for all
other purposes as set forth herein, such Covenant Defeasance provisions shall be
effective.

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SECTION 8.4   CONDITIONS TO LEGAL OR COVENANT DEFEASANCE

      The following shall be the conditions to the application of either Section
8.2 or 8.3 hereof to the outstanding Notes:

      (a) in the  case of an  election  under  Section  8.2 or 8.3  hereof,  the
Issuers must irrevocably deposit, or cause to be irrevocably deposited, with the
Trustee,  in trust, for the benefit of the Holders,  cash in United States legal
tender,  non-callable  Government Securities,  or a combination thereof, in such
amounts as shall be sufficient,  in the opinion of a nationally  recognized firm
of independent public accountants, to pay the principal of, premium, if any, and
Interest (and Liquidated Damages, if any) on the outstanding Notes on the Stated
Maturity  or on the  applicable  redemption  date,  as the  case may be (and the
Issuers must specify  whether the Notes are being defeased to Stated Maturity or
a particular  redemption  date),  and the Trustee must have,  for the benefit of
Holders, a valid, perfected exclusive security interest in such trust;

      (b) in the case of an election under Section 8.2 hereof,  the Issuers must
deliver to the  Trustee an Opinion  of Counsel  reasonably  satisfactory  to the
Trustee  confirming  that: (i) the Issuers have received from, or there has been
published  by,  the  Internal  Revenue  Service a ruling or (ii) since the Issue
Date,  there has been a change in the  applicable  Federal  income  tax law,  in
either case to the effect that,  and based thereon such Opinion of Counsel shall
confirm that, the Holders shall not recognize  income,  gain or loss for Federal
income tax purposes as a result of such Legal Defeasance and shall be subject to
Federal income tax on the same amounts, in the same manner and at the same times
as would have been the case if such Legal Defeasance had not occurred;

      (c) in the case of an election under Section 8.3 hereof,  the Issuers must
deliver to the  Trustee an Opinion  of Counsel  reasonably  satisfactory  to the
Trustee  from United  States legal  counsel  confirming  that Holders  shall not
recognize  income,  gain or loss for Federal  income tax purposes as a result of
such Covenant  Defeasance and shall be subject to Federal income tax on the same
amounts, in the same manner and at the same times as would have been the case if
such Covenant Defeasance had not occurred;

      (d) in the case of an election under Section 8.2 or 8.3 hereof, no Default
or Event of Default  shall have  occurred and be  continuing  on the date of the
deposit  (other than a Default or Event of Default  resulting from the borrowing
of funds to be applied to such deposit);

      (e) in the case of an election under Section 8.2 or 8.3 hereof,  the Legal
Defeasance or Covenant Defeasance, as applicable,  may not result in a breach or
violation  of, or  constitute a default  under any other  material  agreement or
instrument  (other  than  this  Indenture)  to  which  the  Issuers,  any of the
Subsidiary  Guarantors or any of the  Restricted  Subsidiaries  is a party or by
which the Issuers or any of the Restricted Subsidiaries are bound;

      (f) in the  case of an  election  under  Section  8.2 or 8.3  hereof,  the
Issuers must deliver to the Trustee an  Officers'  Certificate  stating that the
deposit was not made by the Issuers  with the intent of  preferring  the Holders
over the other creditors of

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<PAGE>

the Issuers  with the intent of  defeating,  hindering,  delaying or  defrauding
creditors of the Issuers or others;

      (g) in the  case of an  election  under  Section  8.2 or 8.3  hereof,  the
Issuers  must  deliver to the Trustee an Officers'  Certificate  confirming  the
satisfaction of the applicable  conditions in clauses (a) through (f) above, and
an Opinion of Counsel,  confirming the satisfaction of the applicable conditions
in clauses (a) (with  respect to the  validity  and  perfection  of the security
interest) (b), (c) and (e) above.

      Legal  Defeasance and Covenant  Defeasance shall be deemed to occur on the
date  all of the  applicable  conditions  set  forth  in  this  Section  8.4 are
satisfied.

SECTION 8.5   DEPOSITED MONEY AND GOVERNMENT SECURITIES TO BE HELD IN TRUST;
              OTHER MISCELLANEOUS PROVISIONS

      Subject  to  Section  8.6  hereof,  all  money and  Government  Securities
(including the proceeds thereof) deposited with the Trustee (or other qualifying
trustee,  collectively for purposes of this Section 8.5, the "Trustee") pursuant
to Section 8.4 hereof in respect of the outstanding Notes shall be held in trust
and applied by the Trustee,  in accordance with the provisions of such Notes and
this  Indenture,  to the  payment,  either  directly or through any Paying Agent
(including the Company or one of its subsidiaries acting as Paying Agent) as the
Trustee  may  determine,  to the  Holders  of such  Notes of all sums due and to
become due thereon in respect of principal,  premium,  if any, and Interest (and
Liquidated  Damages,  if any), but such money need not be segregated  from other
funds except to the extent required by law.

      The Issuers and the Subsidiary Guarantor, jointly and severally, shall pay
and  indemnify  the Trustee  against any tax, fee or other charge  imposed on or
assessed against the cash or Government Securities deposited pursuant to Section
8.4 hereof or the principal and interest received in respect thereof, other than
any  such  tax,  fee or other  charge  which  by law is for the  account  of the
Holders.

      Anything in this Article VIII to the contrary notwithstanding, the Trustee
shall  deliver or pay to the  Issuers  from time to time upon the request of the
Issuers any money or Government Securities held by it as provided in Section 8.4
hereof  which,  in the  opinion  of a firm  of  independent  public  accountants
nationally  recognized in the United States expressed in a written certification
thereof  delivered  to the  Trustee  (which may be the opinion  delivered  under
Section 8.4(a)  hereof),  are in excess of the amount thereof that would then be
required to be deposited to effect an  equivalent  Legal  Defeasance or Covenant
Defeasance.

SECTION 8.6   REPAYMENT TO ISSUERS

      Any money  deposited with the Trustee or any Paying Agent, or then held by
the Issuers,  in trust for the payment of the  principal  of,  premium,  if any,
Liquidated  Damages, if any, or Interest on any Note and remaining unclaimed for
two years after such principal, and premium, if any, Liquidated Damages, if any,
or  Interest  has become

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<PAGE>

due and  payable  shall be paid to the Issuers on their  written  request or (if
then held by the Company) shall be discharged from such trust; and the Holder of
such Note shall thereafter,  as a creditor, look only to the Issuers for payment
thereof,  and all  liability of the Trustee or such Paying Agent with respect to
such trust money,  and all  liability of the Issuers as trustee  thereof,  shall
thereupon  cease;  provided,  however,  that the Trustee or such  Paying  Agent,
before  being  required  to make any such  repayment,  may at the expense of the
Issuers  cause to be published  once,  in the New York Times and The Wall Street
Journal (national  edition),  notice that such money remains unclaimed and that,
after a date  specified  therein,  which shall not be less than 30 days from the
date of such  notification or publication,  any unclaimed  balance of such money
then remaining shall be repaid to the Issuers.

SECTION 8.7   REINSTATEMENT

      If the Trustee or Paying Agent is unable to apply any United  States legal
tender or Government Securities in accordance with Section 8.2 or 8.3 hereof, as
the case may be, by reason of any order directing the repayment of the deposited
money to the  Issuers  or  otherwise  making  the  deposit  unavailable  to make
payments  under the Notes when due, or if any court enters an order avoiding the
deposit of money with the  Trustee or Paying  Agent or  otherwise  requires  the
payment of the money so deposited to the Issuers or to a fund for the benefit of
its creditors, then (so long as the insufficiency exists or the order remains in
effect) the  Issuers'  and the  Subsidiary  Guarantors'  obligations  under this
Indenture, the Notes, the Subsidiary Guaranties and the Security Documents shall
be revived and reinstated as though no deposit had occurred  pursuant to Section
8.3 or 8.4 hereof until such time as the Trustee or Paying Agent is permitted to
apply all such money in accordance  with Section 8.3 or 8.4 hereof,  as the case
may be;  provided,  however,  that, if the Issuers make any payment of principal
of, premium,  if any, and Interest (and Liquidated  Damages, if any) on any Note
following the reinstatement of its obligations,  the Issuers shall be subrogated
to the rights of the  Holders of such Notes to  receive  such  payment  from the
money held by the Trustee or Paying Agent.

SECTION 8.8   SATISFACTION AND DISCHARGE

      The Issuers may terminate  their  obligations  and the  obligations of the
Subsidiary Guarantors under this Indenture, the Notes, the Subsidiary Guaranties
and the Security  Documents  (except as described below)  (whereupon the Trustee
shall release the Collateral from the Lien created by the Security  Documents as
provided under Section 10.4(b)(3)) when:

      (1) either:

      (a) all the Notes  previously  authenticated  and delivered  (except lost,
stolen or destroyed  Notes which have been  replaced and Notes for whose payment
money has  theretofore  been  deposited  with the Trustee or the paying agent in
trust or segregated  and held in trust by the Issuers and  thereafter  repaid to
the Issuers or a Subsidiary  Guarantor or discharged  from such trust) have been
delivered to the Trustee for cancellation, or

                                       94
<PAGE>

      (b)  (i) all  Notes  have  been  called  for  redemption  pursuant  to the
provisions of Section 3.7 hereof by mailing to Holders a notice of redemption or
all Notes otherwise have become due and payable;

            (ii)  the  Issuers  have  irrevocably  deposited  or  caused  to  be
irrevocably deposited with the Trustee, in trust for the benefit of the Holders,
cash in U.S.  dollars,  non-callable  Government  Securities,  or a  combination
thereof, in an amount sufficient to pay and discharge the entire Indebtedness on
the Notes  not  theretofore  delivered  to the  Trustee  for  cancellation,  for
principal of, and Interest and Liquidated  Damages,  if any, on the Notes to the
date of redemption or maturity,  as the case may be,  together with  irrevocable
instructions  from the Issuers  directing the Trustee to apply such funds to the
payment thereof at maturity or redemption, as the case may be;

            (iii) no  Default or Event of Default  shall  have  occurred  and be
continuing on the date of such deposit (other than a Default or Event of Default
resulting from the borrowing of funds to be applied to such deposit);

            (iv) such deposit  shall not result in a breach or violation  of, or
constitute a default  under,  any material  agreement or instrument  (other than
this Indenture) to which the Issuers, any of the Subsidiary Guarantors or any of
the  Restricted  Subsidiaries  are a party or by which the  Issuers,  any of the
Subsidiary Guarantors or any of the Restricted Subsidiaries are bound; and

      (2) each of the Issuers and the  Subsidiary  Guarantors has paid all other
sums payable by it under this Indenture,  the Notes, the Subsidiary  Guarantors,
the Intercreditor Agreement and the Security Documents, and

      (3)  the  Issuers  shall  have   delivered  to  the  Trustee  an  Officers
Certificate  and an  Opinion  of  Counsel  confirming  the  satisfaction  of all
conditions set forth in clauses (1) and (2) above.

                                   ARTICLE IX
                        AMENDMENT, SUPPLEMENT AND WAIVER

SECTION 9.1   WITHOUT CONSENT OF HOLDERS OF NOTES

      Notwithstanding Section 9.2 hereof, the Issuers, the Subsidiary Guarantors
and the  Trustee  may  amend  or  supplement  this  Indenture,  the  Notes,  the
Subsidiary  Guaranties,  the Registration  Rights Agreement,  or, subject to the
Intercreditor  Agreement,  the  Security  Documents,  without the consent of any
Holder:

      (a) to cure any ambiguity, defect or inconsistency;

      (b) to provide  for  uncertificated  Notes in  addition  to or in place of
certificated Notes;

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<PAGE>

      (c) to  provide  for the  assumption  of the  Issuers'  or the  Subsidiary
Guarantors'  obligations to the Holders in the case of a merger or consolidation
or sale of all or  substantially  all of its  assets  in  accordance  with  this
Indenture;

      (d) to evidence  the release of any  Subsidiary  Guaranty  permitted to be
released  under the terms of this  Indenture  and the  Security  Documents or to
evidence the addition of any new Subsidiary Guarantor;

      (e) to make any  change  that  would  provide  any  additional  rights  or
benefits to the Holders (including the addition of any Subsidiary  Guarantor) or
that does not  adversely  affect the rights  hereunder  of any Holder under this
Indenture,  the  Notes,  the  Subsidiary  Guaranties,  the  Registration  Rights
Agreement, the Security Documents or the Intercreditor Agreement;

      (f) to  comply  with  the  provisions  of  the  Depositary,  Euroclear  or
Clearstream  or the Trustee with respect to the  provisions of this Indenture or
the Notes  relating to transfers and exchanges of Notes or beneficial  interests
therein;

      (g) to comply with  requirements of the SEC in order to effect or maintain
the qualification of this Indenture under the TIA;

      (h) to provide for the issuance of Additional Notes in accordance with the
limitations set forth in this Indenture as of the date hereof;

      (i) to comply with applicable gaming laws and racing laws; or

      (j) to enter into additional or supplemental Security Documents.

      Upon  the  request  of the  Issuers  accompanied  by a  resolution  of the
Managers  of each  Issuer  authorizing  the  execution  of any such  amended  or
supplemental  Indenture,  and  upon  receipt  by the  Trustee  of the  documents
described in Section 9.6 hereof,  the Trustee shall join with the Issuers in the
execution of any amended or  supplemental  Indenture  authorized or permitted by
the terms of this Indenture and to make any further  appropriate  agreements and
stipulations  that  may be  therein  contained,  but the  Trustee  shall  not be
obligated to enter into such amended or  supplemental  Indenture  that adversely
affects its own rights, duties or immunities under this Indenture or otherwise.

SECTION 9.2   WITH CONSENT OF HOLDERS OF NOTES

      (a) Except as expressly  stated otherwise in this Section 9.2, and subject
to Sections 6.4 and 6.7 hereof, the Issuers,  the Subsidiary  Guarantors and the
Trustee may amend, supplement or otherwise modify this Indenture, the Notes, the
Subsidiary Guaranties,  or, subject to the Intercreditor Agreement, the Security
Documents,  with the consent of the Holders of a majority in aggregate principal
amount of the Notes then outstanding  (including,  without limitation,  consents
obtained in  connection  with a purchase of, or tender  offer or exchange  offer
for,  the Notes),  and,  subject to Sections  6.4 and 6.7 hereof,  any  existing
Default or Event of Default (other

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<PAGE>

than a Default or Event of Default in the payment of the principal of,  premium,
if any, or Interest on the Notes,  except a payment  default  resulting  from an
acceleration  that has been  rescinded) or compliance with any provision of this
Indenture,   the  Notes,  the  Subsidiary   Guaranties,   and,  subject  to  the
Intercreditor  Agreement,  the Security Documents may be waived with the consent
of the  Holders  of a  majority  in  aggregate  principal  amount  of  the  then
outstanding Notes (including consents obtained in connection with a purchase of,
or tender offer or exchange offer for, the Notes).

      (b) Subject to Sections 6.4 and 6.7 hereof, and except as stated otherwise
in this Section 9.2, the Holders of a majority in aggregate  principal amount of
the Notes then outstanding may waive compliance in a particular  instance by the
Issuers or any Restricted Subsidiary with any provision of this Indenture or the
Notes.

      It being understood that,  except as expressly stated otherwise in Section
9.2(c),  Sections  4.13 and 4.15  hereof may be  amended,  waived or modified in
accordance with Section 9.2(a).

      (c) Without the consent of each Holder  affected,  an  amendment or waiver
may not with respect to any Notes held by a non-consenting Holder:

            (1) reduce the principal  amount of Notes whose Holders must consent
to an amendment, supplement or waiver;

            (2) reduce the  principal  of, or the  premium  (including,  without
limitation,  redemption premium but not including, except as described in clause
(3) below,  any  redemption  premium  relating to Sections 4.13 and 4.15) on, or
change the fixed maturity of, any Note;

            (3) alter the  price at which  repurchases  of the Notes may be made
pursuant  to an  Excess  Proceeds  Offer or Change of  Control  Offer  after the
corresponding Asset Sale or Change of Control has occurred;

            (4) reduce the rate of or change  the time for  payment of  Interest
(or Liquidated Damages, if any), including default interest,  on any Note (other
than any  advance  notice  requirement  with  respect to any  redemption  of the
Notes);

            (5) waive a Default or Event of Default in the payment of  principal
of, or premium, if any, Interest or Liquidated Damages, if any, on or redemption
payment with respect to, any Note (except a rescission  of  acceleration  of the
Notes by the Holders of at least a majority in aggregate principal amount of the
Notes and a waiver of the payment default that resulted from such acceleration);

            (6) make any Note  payable in money  other  than that  stated in the
Notes;

            (7) make any change in the provisions of this Indenture  relating to
waivers of past  Defaults  with respect to, or the rights of Holders to receive,
payments of Interest on the Notes;

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<PAGE>

            (8) waive a redemption payment with respect to any Note (other than,
except as described  in Section  9.2(b)(3),  provisions  relating to or payments
required by Section 4.13 and Section 4.15;

            (9)  adversely  affect  the  contractual  ranking  of the  Notes  or
Subsidiary Guarantors; or

            (10)  make  any  changes  in  the  foregoing  amendment  and  waiver
provisions.

      (d) Notwithstanding the foregoing Sections 9.2(a), (b) and (c) and subject
to the  Intercreditor  Agreement,  no portion of the  Collateral may be released
from  the  Lien  of the  Security  Documents  (except  in  accordance  with  the
provisions  of this  Indenture  and the  Security  Documents),  and  none of the
Security  Documents  or  the  provisions  of  this  Indenture  relating  to  the
Collateral  may be  amended  or  supplemented,  and the  rights  of any  Holders
thereunder may not be waived or modified,  without, in each case, the consent of
the  Holders  of at  least  75%  in  aggregate  principal  amount  of  the  then
outstanding Notes.

      (e) In  connection  with any  amendment,  supplement  or waiver under this
Article IX, the Issuers may, but shall not be obligated  to, offer to any Holder
who  consents  to such  amendment,  supplement  or  waiver,  or to all  Holders,
consideration for such Holder's consent to such amendment, supplement or waiver.

      (f) It  shall  not be  necessary  for the  consent  of the  Holders  under
Sections 9.2(a),  (b), (c) or (d) to approve the particular form of any proposed
amendment or waiver,  but it shall be  sufficient  if such consent  approves the
substance thereof.

      (g) After an  amendment,  supplement  or waiver  under  this  Section  9.2
becomes  effective,  the Trustee  shall mail to the Holders  affected  thereby a
notice briefly  describing the amendment,  supplement or waiver.  Any failure of
the Trustee to mail such notice, or any defect therein,  shall not, however,  in
any way  impair or affect  the  validity  of any such  amended  or  supplemental
Indenture or waiver.

SECTION 9.3   COMPLIANCE WITH TRUST INDENTURE ACT

      Every  amendment or supplement to this Indenture or the Notes shall be set
forth in an amended or supplemental Indenture that complies with the TIA as then
in effect.

SECTION 9.4   REVOCATION AND EFFECT OF CONSENTS

      Until an amendment,  supplement or waiver becomes effective (as determined
by the  Issuers  and which  may be prior to any such  amendment,  supplement  or
waiver becoming operative),  a consent to it by a Holder is a continuing consent
by the Holder and every subsequent  Holder that evidences the same  Indebtedness
as the consenting  Holder's Note, even if notation of the consent is not made on
any Note.  However,  any such Holder or subsequent Holder may revoke the consent
as to its Note if

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<PAGE>

such consent by its terms is not  irrevocable and the Trustee  receives  written
notice of revocation before the date the waiver, supplement or amendment becomes
effective  (as  determined  by the  Issuers  and  which may be prior to any such
amendment, supplement or waiver becoming operative).

      The Issuers may, but shall not be obligated  to, fix a record date for the
purpose of  determining  the  Holders  entitled  to  consent  to any  amendment,
supplement  or  waiver,  which  record  date  shall  be the date so fixed by the
Issuers  notwithstanding  the  provisions of the TIA. If a record date is fixed,
then  notwithstanding the last sentence of the immediately  preceding paragraph,
those  Persons who were Holders at such record date,  and only those Persons (or
their  duly  designated  proxies),  shall be  entitled  to  revoke  any  consent
previously given,  whether or not such Persons continue to be Holders after such
record date.

      After an amendment,  supplement or waiver becomes effective, it shall bind
every Holder unless it makes a change described in any of paragraphs (1) through
(10) of Section  9.2(c)  hereof,  in which case,  the  amendment,  supplement or
waiver shall bind only each Holder who has consented to it and every  subsequent
Holder that evidences the same debt as the consenting  Holder's Note;  provided,
that any such  waiver  shall not  impair or  affect  the right of any  Holder to
receive  payment of  principal  and  premium  of and  Interest  (and  Liquidated
Damages,  if any) on a Note,  on or  after  the  respective  dates  set for such
amounts to become due and payable  expressed in such Note,  or to bring suit for
the enforcement of any such payment on or after such respective dates.

SECTION 9.5   NOTATION ON OR EXCHANGE OF NOTES

      The  Trustee  may  place  an  appropriate  notation  about  an  amendment,
supplement  or waiver  on any Note  thereafter  authenticated.  The  Issuers  in
exchange for all Notes may issue and the Trustee  shall  authenticate  new Notes
that reflect the amendment, supplement or waiver.

      Failure  to make the  appropriate  notation  or issue a new Note shall not
affect the validity and effect of such amendment, supplement or waiver.

SECTION 9.6   TRUSTEE TO SIGN AMENDMENTS, ETC.

      The Trustee shall sign any amendment or supplemental  indenture authorized
pursuant to this Article IX if the  amendment or  supplement  does not adversely
affect the rights,  duties,  liabilities or immunities of the Trustee.  Upon the
request of the Issuers  accompanied  by a resolution  of the Managers of each of
Issuer authorizing the execution of any such amended or supplemental  Indenture,
and upon the filing with the Trustee of evidence  satisfactory to the Trustee of
the consent of the Holders as aforesaid,  and upon receipt by the Trustee of the
documents  described  in Section  9.6 hereof,  the  Trustee  shall join with the
Issuers in the execution of such amended or supplemental  Indenture  unless such
amended or supplemental  Indenture  adversely  affects the Trustee's own rights,
duties or  immunities  under  this  Indenture  or  otherwise,  in which case the
Trustee may in its  discretion,  but shall not be obligated  to, enter into such
amended or

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<PAGE>

supplemental  Indenture.  If such amendment or supplement does adversely  affect
the rights,  duties,  liabilities or immunities of the Trustee, the Trustee may,
but need not,  sign it. The Issuers may not sign an  amendment  or  supplemental
indenture  until the  Managers  of each  Issuer  approve  it. In  executing  any
amendment or  supplemental  Indenture,  the Trustee shall be entitled to receive
indemnity  reasonably  satisfactory to it and to receive and (subject to Section
7.1 hereof) shall be fully  protected in relying upon, an Officers'  Certificate
and an  Opinion of Counsel  stating  that the  execution  of such  amendment  or
supplemental indenture is authorized or permitted by this Indenture.

                                   ARTICLE X
                             COLLATERAL AND SECURITY

SECTION 10.1   SECURITY DOCUMENTS; SECURITY INTERESTS.

      (a) The due and punctual payment of the principal and premium, if any, of,
and Interest (and Liquidated Damages, if any) on, the Notes when and as the same
shall be due and payable,  whether on an Interest Payment Date, at maturity,  by
acceleration,  repurchase,  redemption  or  otherwise,  Interest  on the overdue
principal of and Interest (to the extent permitted by law), if any, on the Notes
and performance of all other  Obligations  under this Indenture,  the Notes, the
Security  Documents and the Registration  Rights Agreement,  shall be secured as
provided in the Security Documents.

      (b) After the Issue Date, the Issuers  shall,  and shall cause each of the
Domestic Restricted  Subsidiaries to, use commercially reasonable efforts (which
shall be deemed not to include any  obligation to pay money to any third parties
other than filing fees, reasonable fees and expenses of the third party or other
de  minimis  payments)  to grant a  perfected  security  interest  in all of the
Issuers' and the Domestic  Restricted  Subsidiaries'  assets,  including  assets
acquired after the Issue Date in accordance with the Security Documents,  but in
any event excluding the Excluded Assets.

      (c)  Notwithstanding  any  provision  in this  Indenture  or the  Security
Documents to the contrary,  in the event that the Issuers or any of the Domestic
Restricted  Subsidiaries  grant  a Lien  on any  of the  Issuers'  or any of the
Domestic  Restricted  Subsidiaries'  assets in connection with the Senior Credit
Facility,  the Issuers  shall be required to, and shall be required to cause the
Domestic Restricted Subsidiaries to, secure the Notes with a Lien on such assets
(other than Excluded  Assets) that is subordinated to the obligations  under the
Senior Credit Facility in accordance with the Intercreditor Agreement, except in
circumstances where the Trustee cannot perfect such a Lien by means other than a
Lien filing.

      (d) The Issuers  shall,  and shall cause each of the  Domestic  Restricted
Subsidiaries  to,  do or cause to be done all  such  acts and  things  as may be
necessary  or proper,  or as may be required by the  provisions  of the Security
Documents,  to assure and confirm to the Trustee  the  security  interest in the
Collateral  contemplated hereby and by the Security  Documents,  as from time to
time  constituted,  so as to render  the same  available  for the  security  and
benefit of this  Indenture  and of the Notes  secured  hereby,  according to the
intent  and  purposes  herein and  therein  expressed,  including  (1) using all

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commercially  reasonable  efforts to obtain customary  consents and waivers from
landlords of premises where any of the Collateral is located, and (2) taking all
commercially  reasonable  efforts to grant a perfected Lien on all real property
(other than real property constituting Excluded Assets) owned by the Issuers and
the Domestic  Restricted  Subsidiaries and to provide  customary title insurance
for  the  benefit  of the  Trustee  with  respect  thereto;  including,  without
limitation,  commercially  reasonable  efforts to cause the removal of record of
all  existing  monetary  encumbrances  such that the  Security  Documents  shall
constitute a first priority Lien on all such real property, subject to Permitted
Liens.  The  Issuers  shall,  and shall  cause each of the  Domestic  Restricted
Subsidiaries to, take, upon request of the Trustee, any and all actions required
to cause the  Security  Documents  to create and  maintain,  as security for the
Obligations  under this  Indenture,  the Notes,  the Security  Documents and the
Registration  Rights  Agreement,  valid and  enforceable,  perfected  (except as
expressly  provided  herein or therein) Liens in and on all the  Collateral,  in
favor of the Trustee,  superior to and prior to the rights of all third  Persons
(other than holders of Permitted  Liens),  and subject to no other Liens,  other
than as provided herein and therein;  provided, that the Trustee's Lien securing
the Collateral may be  subordinated  pursuant to the terms of the  Intercreditor
Agreement to a Lien securing  Indebtedness  outstanding  pursuant to Section 4.7
hereof, but only to the extent provided in the Intercreditor Agreement.

      (e) Each of the Issuers  represents and warrants and covenants that it (or
the Domestic  Restricted  Subsidiaries)  has executed and  delivered,  filed and
recorded and/or shall execute and deliver,  file and record, all instruments and
documents,  and has done or shall do or cause to be done all such acts and other
things as are  necessary to subject the  Collateral  to the Lien of the Security
Documents.  The Issuers (or the Domestic Restricted  Subsidiaries) shall execute
and deliver, file and record all instruments and do all acts and other things as
may be  reasonably  necessary or advisable to perfect,  maintain and protect the
security  interests created by the Security  Documents and shall pay all filing,
recording, mortgage or other taxes or fees incidental thereto.

      (f) The  security  interests  in the  Collateral  created by the  Security
Documents  as now or  hereafter  in effect  shall be held by the Trustee for the
equal and ratable benefit and security of the Notes without preference, priority
or distinction  of any thereof over any other by reason,  or difference in time,
of  issuance,  sale or  otherwise,  and for the  enforcement  of the  payment of
principal of, premium,  if any, and Interest (and Liquidated Damages, if any) on
the Notes in accordance with their terms.

      (g) Each Holder,  by its acceptance of a Note,  consents and agrees to the
terms of the Security  Documents  and the  Intercreditor  Agreement  (including,
without limitation,  the provisions providing for foreclosure and release of the
Collateral)  as the same may be in effect or may be amended from time to time in
accordance  with their terms and  authorizes  and  directs the Secured  Party to
enter into the Security Documents and the Intercreditor Agreement and to perform
its obligations and exercise its rights thereunder in accordance therewith.  The
Issuers  initially appoint the Trustee as Secured Party and/or Trustee under the
Security Documents and the Intercreditor  Agreement. Any successor Trustee shall
act as Secured  Party and/or  Trustee  under the  Security  Documents or appoint
another Person to act in such capacity.

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SECTION 10.2   FURTHER ASSURANCES AND SECURITY.

      Each of the Issuers  represents and warrants that at the time the Security
Documents  and this  Indenture  are  executed,  the Issuers  (or the  Restricted
Subsidiaries)  (a) shall have full right,  power and lawful  authority to grant,
bargain, sell, release, convey, hypothecate,  assign, mortgage, pledge, transfer
and  confirm,  absolutely,  the  Collateral,  in the manner  and form  done,  or
intended to be done,  in the  Security  Documents,  free and clear of all Liens,
except for Permitted  Liens,  and shall forever  warrant and defend the title to
the same against the claims of all Persons  whatsoever,  subject to the terms of
the Intercreditor Agreement;  (b) shall execute,  acknowledge and deliver to the
Trustee, at the Issuers' expense, at any time and from time to time such further
assignments, transfer, assurances or other instruments as may be required by the
Trustee to  effectuate  the terms of this  Indenture or the Security  Documents,
subject to the terms of the Intercreditor  Agreement;  and (c) shall at any time
and from time to time do or cause to be done all such acts and  things as may be
necessary or proper, or as may be required by the Trustee, to assure and confirm
to the Trustee the security interest in the Collateral  contemplated  hereby and
by the Security Documents, subject to the terms of the Intercreditor Agreement.

SECTION 10.3   OPINIONS.

      (a) The Issuers shall,  to the extent  required under the TIA,  furnish to
the Trustee (i) promptly  after the  recording  or filing,  or  re-recording  or
re-filing of the Security  Documents and other security  filings,  an Opinion of
Counsel (who may be counsel for the Issuers) stating that in the opinion of such
counsel the Security  Documents  and other  security  filings have been properly
recorded, filed, re-recorded or re-filed so as to make effective and perfect the
security  interest  intended to be created  thereby and  reciting the details of
such action.

      (b) The Issuers shall,  to the extent  required under the TIA,  furnish to
the Trustee  within three months after each  anniversary  of the Issue Date,  an
Opinion  of  Counsel,  dated as of such  date,  stating  either  that (i) in the
opinion  of such  counsel,  all  action  has  been  taken  with  respect  to the
recording, registering, filing, re-recording, re-registering and refiling of all
supplemental indentures, financing statements,  continuation statements or other
instruments  of further  assurance  as is necessary to maintain the Liens of the
Security  Documents,  subject to the terms of the Intercreditor  Agreement,  and
reciting the details of such action or (ii) in the opinion of such  Counsel,  no
such action is necessary to maintain  such Liens,  which Opinion of Counsel also
shall  state  what  actions it then  believes  are  necessary  to  maintain  the
effectiveness of such Liens during the next year.

      (c) All Opinions of Counsel  required by this Section 10.3,  12.4 or 12.5,
may contain  qualifications,  assumptions,  exceptions  and  limitations  as are
customary  or  appropriate  for similar  opinions  relating to the nature of the
Collateral and as are reasonably acceptable to the Trustee.

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SECTION 10.4   RELEASE OF COLLATERAL.

      (a) Upon the full and final  payment and  performance  of all the Issuers'
and the Subsidiary Guarantors' Obligations under this Indenture,  the Notes, the
Subsidiary Guaranties and the Security Documents will terminate,  and all of the
Liens on the Collateral created hereunder and under the Security Documents shall
be released.

      (b) In addition, the Secured Party shall release from the Liens created by
this  Indenture  and the Security  Documents at the sole cost and expense of the
Issuers:

            (1)  Collateral  that is sold,  transferred,  disbursed or otherwise
disposed of in accordance with the provisions of this Indenture and the Security
Documents;  provided, that the Secured Party shall not release such Liens in the
event that the transaction is subject to Article V hereof;

            (2)  Collateral  that is released with the consent of the Holders of
not less than 75% in  aggregate  principal  amount of the  outstanding  Notes as
provided under Section 9.2(d) hereof;

            (3) all Collateral  upon  defeasance of this Indenture in accordance
with the  provisions  of Article VIII hereof or  discharge of this  Indenture in
accordance  with the  provisions of Section 8.8 hereof;  provided that the funds
deposited with the Trustee, in trust, for the benefit of the Holders as required
by such provisions shall not be released; and

            (4) Collateral of a Subsidiary  Guarantor whose Subsidiary  Guaranty
is released in accordance with this Indenture and the Security Documents;

provided,  that the Secured Party has received all documentation required by the
TIA in connection  therewith.  Upon  compliance with the above  provisions,  the
Trustee  shall  execute,   deliver  or  acknowledge   any  necessary  or  proper
instruments of  termination,  satisfaction or release to evidence the release of
any  Collateral  permitted  to be  released  pursuant to this  Indenture  or the
Security Documents.

      (c) The release of any Collateral from the terms of the Security Documents
shall not be deemed to impair the security under this Indenture in contravention
of the provisions hereof and of the Security  Documents if and to the extent the
Collateral is released  pursuant to the terms of this Indenture and the Security
Documents.

      (d) For the avoidance of doubt (i) any Collateral  owned by any subsidiary
that is not a Foreign  Subsidiary  that is  designated  by the  Managers  of the
Company  as an  Unrestricted  Subsidiary  in  accordance  with the terms of this
Indenture  shall be released  from the Lien of this  Indenture  and the Security
Documents at the time of such  designation  and (ii) any  Collateral  that shall
constitute an Excluded  Asset at any time, or from time to time,  after the date
of this  Indenture,  shall be released  from the Lien

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of this Indenture and the Security  Documents at the time such Collateral  shall
constitute an Excluded Asset.

SECTION 10.5   CERTIFICATES OF THE ISSUERS.

      The Issuers shall furnish to the Trustee,  prior to each proposed  release
of Collateral, all documents required by TIA ss. 314(d). The Trustee may, to the
extent permitted by Sections 7.1 and 7.2 hereof,  accept as conclusive  evidence
of compliance with the foregoing provisions the appropriate statements contained
in such  instruments.  Any certificate or opinion required by TIA ss. 314(d) may
be made by an  Officer  of the  Issuers,  except in cases  where TIA ss.  314(d)
requires that such  certificate or opinion be made by an  independent  engineer,
appraiser or other expert within the meaning of TIA ss. 314(d).

SECTION 10.6   AUTHORIZATION OF ACTIONS TO BE TAKEN BY THE TRUSTEE UNDER
               THE SECURITY DOCUMENTS AND THE INTERCREDITOR AGREEMENT.

      Subject to the terms of the Intercreditor  Agreement,  the Trustee may, in
its sole  discretion  and without the consent of the  Holders,  on behalf of the
Holders,  take all actions it deems  necessary  or  appropriate  in order to (a)
enforce  any of  the  terms  of  the  Security  Documents  or the  Intercreditor
Agreement and (b) collect and receive any and all amounts  payable in respect of
the Obligations of the Issuers and the Subsidiary Guarantors hereunder and under
the Notes, the Security Documents and the Registration Rights Agreement. Subject
to the terms of the Intercreditor Agreement, and to the extent permitted by this
Indenture  or the  Security  Documents,  the  Trustee  shall  have the  power to
institute and to maintain such suits and proceedings as it may deem expedient to
prevent any  impairment of the Collateral by any acts that may be unlawful or in
violation  of the  Security  Documents  or this  Indenture,  and such  suits and
proceedings  as the  Trustee  may deem  expedient  to  preserve  or protect  its
interest and the interests of the Holders in the Collateral  (including power to
institute and maintain suits or  proceedings  to restrain the  enforcement of or
compliance with any legislative or other governmental  enactment,  rule or order
that may be  unconstitutional  or otherwise  invalid if the  enforcement  of, or
compliance  with,  such  enactment,  rule or order  would  impair  the  security
interest  hereunder  or be  prejudicial  to the  interests of the Holders or the
Trustee).

SECTION 10.7   AUTHORIZATION OF RECEIPT OF FUNDS BY THE TRUSTEE
               UNDER THE SECURITY  DOCUMENTS  AND THE  INTERCREDITOR
               AGREEMENT.

      The  Trustee is  authorized  to receive  any funds for the  benefit of the
Holders distributed under the Security Documents or the Intercreditor Agreement,
and to make further  distributions of such funds to the Holders according to the
provisions of this Indenture and the Security Documents, subject to the terms of
the Intermediary Agreement.

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SECTION 10.8   INTERCREDITOR AGREEMENT.

      Notwithstanding  anything  herein  or in  any  Security  Document  to  the
contrary, the relative rights and remedies of the Trustee hereunder or under any
Security  Documents and of the agent or any other Person acting on behalf of and
for the  benefit of the  lender(s)  under the Senior  Credit  Facility  shall be
subject to and governed by the terms of the Intercreditor  Agreement at any time
the  Intercreditor  Agreement  is in effect.  In the event of any  inconsistency
between the terms  hereof or of any  Security  Documents  and the  Intercreditor
Agreement,   the   Intercreditor   Agreement  shall  control  at  any  time  the
Intercreditor Agreement is in effect.

                                   ARTICLE XI
                              SUBSIDIARY GUARANTIES

SECTION 11.1   SUBSIDIARY GUARANTIES

      By its execution hereof,  each of the Subsidiary  Guarantors  acknowledges
and agrees that it receives  substantial benefits from the Issuers and that such
party is providing its Subsidiary Guaranty for good and valuable  consideration,
including,   without  limitation,   such  substantial   benefits  and  services.
Accordingly,  subject to the  provisions  of this  Article XI,  each  Subsidiary
Guarantor,  jointly and severally, hereby unconditionally guarantees on a senior
secured  basis to each  Holder  of a Note  authenticated  and  delivered  by the
Trustee and its successors and assigns that: (i) the principal of,  premium,  if
any, and Interest and Liquidated Damages, if any, on the Notes shall be duly and
punctually paid in full when due, whether at maturity, by acceleration, call for
redemption,  upon a Change of Control Offer,  an Asset Sale Offer, or otherwise,
and Interest on overdue principal,  premium, if any, Liquidated Damages, if any,
and (to the extent  permitted by law) interest on any  Interest,  if any, on the
Notes and all other  obligations  of the  Issuers to the  Holders or the Trustee
under the Notes,  this Indenture,  the Security  Documents and the  Registration
Rights Agreement  (including fees,  expenses or other) shall be promptly paid in
full or performed,  all in accordance with the terms hereof; and (ii) in case of
any  extension  of time of  payment or renewal of any Notes or any of such other
obligations  under  the  Notes,  this  Indenture,   the  Security  Documents  or
Registration Rights Agreement,  the same shall be promptly paid in full when due
or performed in accordance  with the terms of the extension or renewal,  whether
at stated  maturity,  by  acceleration,  call for  redemption,  upon a Change of
Control,  an Asset Sale Offer, or otherwise,  subject,  however,  in the case of
clauses (i) and (ii) above,  to the limitations set forth in Section 11.6 hereof
(collectively, the "Subsidiary Guaranty Obligations").

      Subject to the  provisions of this Article XI, each  Subsidiary  Guarantor
hereby agrees that its Subsidiary  Guaranty  hereunder  shall be  unconditional,
irrespective of the validity,  regularity or  enforceability  of the Notes, this
Indenture,  the Security  Documents,  the  Registration  Rights Agreement or the
absence of any action to enforce  the same,  any waiver or consent by any Holder
with respect to any thereof,  any releases of the  Collateral,  the entry of any
judgment  against  the  Issuers,  any  action to  enforce  the same or any other
circumstance which might otherwise  constitute a legal or equitable discharge or
defense of a Subsidiary  Guarantor.  Each Subsidiary Guarantor hereby waives and
relinquishes:  (a) any right to require the Trustee,  the Holders or the Issuers

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(each,  a  "Benefited  Party") to proceed  against the Issuers,  the  Restricted
Subsidiaries  or any other Person or to proceed  against or exhaust any security
held by a  Benefited  Party at any time or to  pursue  any  other  remedy in any
Secured Party's power before proceeding against the Subsidiary  Guarantors;  (b)
any defense that may arise by reason of the incapacity, lack of authority, death
or disability of any other Person or Persons or the failure of a Benefited Party
to file or enforce a claim against the estate (in administration,  bankruptcy or
any other  proceeding) of any other Person or Persons;  (c) demand,  protest and
notice of any kind (except as expressly  required by this Indenture),  including
but not limited to notice of the existence,  creation or incurring of any new or
additional Indebtedness or obligation or of any action or non-action on the part
of the Subsidiary  Guarantors,  the Issuers,  the Restricted  Subsidiaries,  any
Benefited Party, any creditor of the Subsidiary  Guarantors,  the Issuers or the
Restricted  Subsidiaries  or on the  part  of any  other  Person  whomsoever  in
connection with any obligations the performance of which are hereby  guaranteed;
(d) any  defense  based upon an  election  of  remedies  by a  Benefited  Party,
including  but not  limited to an election  to proceed  against  the  Subsidiary
Guarantors for reimbursement;  (e) any defense based upon any statute or rule of
law which  provides that the  obligation  of a surety must be neither  larger in
amount nor in other respects more burdensome than that of the principal; (f) any
defense  arising  because of a Benefited  Party's  election,  in any  proceeding
instituted under the Bankruptcy Law, of the application of Section 1111(b)(2) of
the  Bankruptcy  Code;  and (g) any defense based on any borrowing or grant of a
security  interest  under Section 364 of the  Bankruptcy  Code.  The  Subsidiary
Guarantors  hereby  covenant that,  except as otherwise  provided  therein,  the
Subsidiary  Guaranties shall not be discharged  except by payment in full of all
Subsidiary Guaranty Obligations,  including the principal,  premium, if any, and
Interest  (and LD, if any) on the Notes and all other costs  provided  for under
this Indenture or as provided in Article VIII.

      If any Holder or the  Trustee is  required  by any court or  otherwise  to
return to either the  Issuers or the  Subsidiary  Guarantors,  or any trustee or
similar  official  acting in relation  to either the  Issuers or the  Subsidiary
Guarantors,  any amount paid by the Issuers or the Subsidiary  Guarantors to the
Trustee or such Holder,  the Subsidiary  Guaranties,  to the extent  theretofore
discharged, shall be reinstated in full force and effect. Each of the Subsidiary
Guarantors  agrees that it shall not be entitled to any right of  subrogation in
relation to the Holders in respect of any Subsidiary Guaranty Obligations hereby
until payment in full of all such obligations guaranteed hereby. Each Subsidiary
Guarantor  agrees that, as between it, on the one hand,  and the Holders and the
Trustee,  on the other  hand,  (x) the  maturity of the  obligations  guaranteed
hereby may be  accelerated  as  provided  in Article VI hereof for the  purposes
hereof,  notwithstanding  any stay,  injunction or other prohibition  preventing
such acceleration in respect of the Subsidiary Guaranty Obligations,  and (y) in
the event of any  acceleration  of such  obligations  as  provided in Article VI
hereof,  such Subsidiary Guaranty  Obligations  (whether or not due and payable)
shall  forthwith  become due and payable by such  Subsidiary  Guarantor  for the
purpose of the Subsidiary Guaranty.

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SECTION 11.2   EXECUTION AND DELIVERY OF SUBSIDIARY GUARANTIES

      To evidence the  Subsidiary  Guaranties  set forth in Section 11.1 hereof,
each of the  Subsidiary  Guarantors  agrees  that a notation  of the  Subsidiary
Guaranties  substantially  in the form  included  in  Exhibit A hereto  shall be
endorsed on each Note  authenticated  and delivered by the Trustee and that this
Indenture (with respect to Subsidiary Guarantors as of the Issue Date) and, with
respect to Subsidiary Guarantors after the Issue Date, a Supplemental  Indenture
substantially  in the form of  Exhibit  E hereto  executed  in  accordance  with
Section  11.4  hereof,  shall be  executed  on behalf of each of the  Subsidiary
Guarantors by an Officer of each of the Subsidiary Guarantors.

      Each of the Subsidiary Guarantors agree that the Subsidiary Guaranties set
forth in this  Article XI shall remain in full force and effect and apply to all
the Notes  notwithstanding any failure to endorse on each Note a notation of the
Subsidiary Guaranties.

      If an Officer  whose  signature  is on a Note or a notation of  Subsidiary
Guaranty no longer holds that office at the time the Trustee  authenticates  the
Note on which the Subsidiary Guaranties are endorsed,  the Subsidiary Guaranties
shall be valid nevertheless.

      The delivery of any Note by the Trustee,  after the authentication thereof
hereunder,  shall constitute due delivery of the Subsidiary Guaranties set forth
in this Indenture on behalf of the Subsidiary Guarantors.

SECTION 11.3   SUBSIDIARY GUARANTORS MAY CONSOLIDATE, ETC., ON CERTAIN TERMS

      (a) Nothing  contained in this Indenture or in the Notes shall prevent any
consolidation  or merger of any Subsidiary  Guarantor with or into each other or
with or into the Company;  provided,  however, that such consolidation or merger
shall  otherwise  comply with this  Indenture.  Upon any such  consolidation  or
merger,  the  Subsidiary  Guaranty  of the  Subsidiary  Guarantor  that does not
survive the consolidation or merger shall no longer be of any force or effect.

      (b) Except for a merger or consolidation  in which a Subsidiary  Guarantor
is  sold  and its  Subsidiary  Guaranty  is  released  in  compliance  with  the
provisions of Section 11.5 hereof, no Subsidiary  Guarantor shall consolidate or
merge with or into  (whether or not such  Subsidiary  Guarantor is the surviving
Person)  another  Person  unless,  subject to the  provisions  of the  following
paragraph and the other provisions of this Indenture and the Security Documents,
(i) the Person formed by, resulting from or surviving any such  consolidation or
merger (if other than such Subsidiary  Guarantor) (A) expressly  assumes all the
obligations of such Subsidiary Guarantor pursuant to a supplemental indenture in
form reasonably satisfactory to the Trustee, pursuant to which such Person shall
unconditionally  guaranty,  on a senior  secured basis,  all of such  Subsidiary
Guarantor's obligations under such Subsidiary Guarantor's Subsidiary Guaranty on
the terms set forth in this  Indenture,  (B) executes a secondary  agreement and
other  Security  Documents  necessary or reasonably  requested by the Trustee to
grant, and grants, a valid, enforceable,  perfected Lien on the Collateral

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<PAGE>

owned by such  Person to secure such  Obligations  on the terms set forth in the
Security  Documents,  and (C) delivers to the Trustee an Opinion of Counsel that
such supplemental  indenture and such guaranty and Security  Documents have been
duly  authorized,  executed and  delivered  and that each such document and this
Indenture constitutes a legal, valid, binding and enforceable obligation of such
Person, in each case, subject to customary qualifications;  and (ii) immediately
before and  immediately  after giving effect to such  transaction on a pro forma
basis, no Default or Event of Default shall have occurred or be continuing.  The
provisions  of this  Section  11.3(b)  shall  not  apply  to the  merger  of any
Subsidiary  Guarantors  with or into each other or with or into the Company.  In
case of any  such  consolidation  or  merger  and  upon  the  assumption  by the
successor corporation, by supplemental indenture,  executed and delivered to the
Trustee and reasonably  satisfactory  in form to the Trustee,  of the Subsidiary
Guaranties  endorsed upon the Notes and the due and punctual  performance of all
of the  covenants  and  conditions  of this  Indenture  to be  performed by such
Subsidiary  Guarantor,  such  successor  corporation  shall  succeed  to  and be
substituted for such Subsidiary Guarantor with the same effect as if it had been
named herein as a Subsidiary Guarantor. Such successor corporation thereupon may
cause to be signed any or all of the  Subsidiary  Guaranties to be endorsed upon
all of the Notes issuable hereunder which theretofore shall not have been signed
by the Issuers and delivered to the Trustee.  All the  Subsidiary  Guaranties so
issued  shall in all  respects  have the same legal rank and benefit  under this
Indenture as the Subsidiary  Guaranties  theretofore  and  thereafter  issued in
accordance  with the terms of this  Indenture  as though all of such  Subsidiary
Guaranties had been issued at the date of the execution hereof.

      (c) The Trustee,  subject to the provisions of Section 11.2 hereof,  shall
be entitled to receive an Officers'  Certificate as conclusive evidence that any
such  consolidation  or merger,  and any such assumption of Subsidiary  Guaranty
Obligations,  comply with the  provisions of this Section 11.3.  Such  Officers'
Certificate shall comply with the provisions of Section 11.2 hereof.

SECTION 11.4   SUBSIDIARY GUARANTY BY FUTURE RESTRICTED SUBSIDIARIES

      The  Issuers  shall  cause  each of the  existing  and  future  Restricted
Subsidiaries  (other  than  Foreign  Subsidiaries  and other  than a  Restricted
Subsidiary  that is a co-Issuer  of the Notes) to (i) execute and deliver to the
Trustee a supplemental  indenture  substantially in the form of Exhibit E hereto
and a guaranty substantially in the form included in Exhibit A hereto,  pursuant
to which such Restricted Subsidiary shall  unconditionally  guaranty on a senior
secured  basis,  all of the  Issuers'  Obligations  under  the  Notes  and  this
Indenture  on the terms set forth in this  Indenture,  (ii)  execute a  security
agreement and other Security Documents necessary or reasonably  requested by the
Trustee to grant, and grant, the Trustee a valid, enforceable, perfected Lien on
the Collateral described therein, and (iii) deliver to the Trustee an Opinion of
Counsel that such supplemental indenture, guaranty and Collateral Documents have
been duly authorized,  executed and delivered by such Restricted  Subsidiary and
that  each of  such  documents  and  this  Indenture,  guaranty  and  Collateral
Documents have constitutes a legal, valid, binding and enforceable obligation of
such  Restricted  Subsidiary,  in each case subject to customary  qualifications
including exceptions for bankruptcy, fraudulent

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<PAGE>

transfer and equitable principles.  Thereafter, such Restricted Subsidiary shall
be a Subsidiary Guarantor for all purposes of this Indenture.

SECTION 11.5   RELEASE OF SUBSIDIARY GUARANTORS

      Notwithstanding   Section  11.3  hereof,  upon  the  sale  or  disposition
(including  by merger or sale or transfer of all of the Equity  Interests)  of a
Subsidiary  Guarantor  (as an  entirety)  to a  Person  which  is not and is not
required  to  become a  Subsidiary  Guarantor,  the  designation  of a  Domestic
Restricted  Subsidiary  as an  Unrestricted  Subsidiary or the  liquidation,  or
dissolution  of a  Subsidiary  Guarantor,  which  transaction  is  otherwise  in
compliance with this Indenture (including, without limitation, Sections 4.13 and
4.14),  such Subsidiary  Guarantor shall be deemed released from its Obligations
under its Subsidiary  Guaranty and the Security  Documents;  provided,  however,
that any such termination shall occur only to the extent that all obligations of
such  Subsidiary  Guarantor under all of its guarantees of, and under all of its
pledges of assets or other security  interests which secure, any Indebtedness of
the  Issuers or any  Indebtedness  of any other of the  Restricted  Subsidiaries
shall also terminate upon such release,  sale or transfer and none of its Equity
Interests are pledged for the benefit of any holder of any  Indebtedness  of the
Issuers or any Indebtedness of any of the Restricted Subsidiaries.

      The Trustee,  subject to the  provisions of Section 12.4 hereof,  shall be
entitled to receive an Officers'  Certificate  as conclusive  evidence that such
sale or other  disposition or that such  designation  was made by the Issuers in
accordance with the provisions of this Indenture.  Except as provided in Section
11.3 hereof,  any Subsidiary  Guarantor not released from its obligations  under
its Subsidiary  Guaranty shall remain liable for the full amount of principal of
and  Interest  on the  Notes  and for the other  obligations  of any  Subsidiary
Guarantor under this Indenture as provided in this Article XI.

      Notwithstanding  the  foregoing  provisions  of this  Article  XI, (i) any
Subsidiary  Guarantor  whose  Subsidiary  Guaranty  would  otherwise be released
pursuant  to the  provisions  of  this  Section  11.5  may  elect,  at its  sole
discretion,  by written  notice to the  Trustee,  to  maintain  such  Subsidiary
Guaranty  in effect  notwithstanding  the event or events that  otherwise  would
cause the release of such  Subsidiary  Guaranty (which election to maintain such
Subsidiary  Guaranty  in effect may be  conditional  or for a limited  period of
time),  and  (ii)  any  subsidiary  of the  Issuers  which  is not a  Subsidiary
Guarantor may elect, at its sole  discretion,  by written notice to the Trustee,
to become a Subsidiary  Guarantor  (which  election may be  conditional or for a
limited period of time).

SECTION 11.6   LIMITATION OF SUBSIDIARY GUARANTOR'S LIABILITY; CERTAIN
               BANKRUPTCY EVENTS

      (a) Each Subsidiary Guarantor, and by its acceptance of Notes each Holder,
hereby confirms that it is the intention of all such parties that the Subsidiary
Guaranty  Obligation of such  Subsidiary  Guarantor  pursuant to its  Subsidiary
Guaranty not constitute a fraudulent  transfer or conveyance for purposes of any
Bankruptcy Law,

                                      109
<PAGE>

the Uniform Fraudulent  Conveyance Act, the Uniform  Fraudulent  Transfer Act or
any similar  federal or state law. To effectuate  the foregoing  intention,  the
Holders  and  such  Subsidiary  Guarantor  hereby  irrevocably  agree  that  the
Subsidiary Guaranty  Obligations of such Subsidiary Guarantor under this Article
XI shall be limited to the maximum  amount as shall,  after giving effect to all
other  contingent and fixed  liabilities of such Subsidiary  Guarantor and after
giving  effect to any  collections  from or payments made by or on behalf of any
other Subsidiary  Guarantor in respect of the Subsidiary Guaranty Obligations of
such other Subsidiary  Guarantor under this Article XI, result in the Subsidiary
Guaranty  Obligations of such Subsidiary Guarantor under the Subsidiary Guaranty
of  such  Subsidiary   Guarantor  not  constituting  a  fraudulent  transfer  or
conveyance.

      (b) Each Subsidiary  Guarantor hereby covenants and agrees, to the fullest
extent  that  it may do so  under  applicable  law,  that  in the  event  of the
insolvency, bankruptcy, dissolution,  liquidation or reorganization of either of
the Issuers,  such  Subsidiary  Guarantor  shall not file (or join in any filing
of), or otherwise  seek to  participate  in the filing of, any motion or request
seeking to stay or to prohibit  (even  temporarily)  execution on the Subsidiary
Guaranty  and hereby  waives and agrees not to take the benefit of any such stay
of  execution,  whether  under  Section  362 or 105  of  the  Bankruptcy  Law or
otherwise.

SECTION 11.7   APPLICATION OF CERTAIN TERMS AND PROVISIONS TO THE
               SUBSIDIARY GUARANTORS

      (a) For purposes of any provision of this Indenture which provides for the
delivery by any  Subsidiary  Guarantor  of an  Officers'  Certificate  and/or an
Opinion of Counsel,  the  definitions  of such terms in Section 1.1 hereof shall
apply to such Subsidiary  Guarantor as if references therein to the Issuers were
references to such Subsidiary Guarantor.

      (b) Any request, direction, order or demand which by any provision of this
Indenture is to be made by any  Subsidiary  Guarantor,  shall be  sufficient  if
evidenced as described  in Section 12.2 hereof as if  references  therein to the
Issuers were references to such Subsidiary Guarantor.

      (c) Any  notice or demand  which by any  provision  of this  Indenture  is
required or  permitted to be given or served by the Trustee or by the Holders to
or on any  Subsidiary  Guarantor  may be given or served as described in Section
12.2 hereof as if  references  therein to the Issuers  were  references  to such
Subsidiary Guarantor.

      (d) Upon any demand, request or application by any Subsidiary Guarantor to
the Trustee to take any action under this Indenture,  such Subsidiary  Guarantor
shall furnish to the Trustee such  certificates  and opinions as are required in
Section 12.4 hereof as if all references  therein to the Issuers were references
to such Subsidiary Guarantor.

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<PAGE>

                                  ARTICLE XII
                                  MISCELLANEOUS

SECTION 12.1   TRUST INDENTURE ACT CONTROLS

      If any provision of this Indenture limits, qualifies or conflicts with the
duties imposed by the TIA ss. 318(c), the imposed duties shall control.

SECTION 12.2   NOTICES

      Any notice or  communication by the Issuers or the Trustee to the other is
duly given if in writing and  delivered  in Person or mailed by first class mail
(registered or certified, return receipt requested), telecopier or overnight air
courier guaranteeing next day delivery, to the others' address:

If to the Issuers
or the Subsidiary Guarantors:

                           Diamond Jo, LLC
                           The Old Evangeline Downs Capital Corp.
                           400 East Third Street
                           P.O. Box 1750
                           Dubuque, Iowa  52004-1750
                           Attention:  Michael S. Luzich
                           Telecopier No.:  (563) 557-0549

with copies (which
shall not constitute
notice) to:

                           Mayer, Brown, Rowe & Maw LLP
                           1675 Broadway
                           New York, NY  10019
                           Attn:  Nazim Zilkha, Esq.
                           Telecopier No.: (212) 262-1910

with a copy (which
shall not constitute
notice) to:
                           Diamond Jo, LLC
                           The Old Evangeline Downs Capital Corp.
                           7137 Mission Hills Drive
                           Las Vegas, Nevada 89113
                           Attention:  Michael S. Luzich
                           Telecopier No.: 702-247-6822

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<PAGE>
If to the Trustee:
                           U.S. Bank National Association
                           60 Livingston Avenue
                           St. Paul, MN 55107-2292
                           Attention: Corporate Trust Department
                           Telecopier No.: (651) 495-8097

      The  Issuers  or the  Trustee,  by  notice  to the  others  may  designate
additional or different addresses for subsequent notices or communications.

      All notices and communications (other than those sent to Holders) shall be
deemed to have been duly given: (i) at the time delivered by hand, if personally
delivered;  (ii) five Business Days after being  deposited in the mail,  postage
prepaid;  (iii) when  receipt  acknowledged,  if  telecopied;  and (iv) the next
Business Day after  timely  delivery to the  courier,  if sent by overnight  air
courier guaranteeing next day delivery.

      Any notice or  communication  to a Holder  shall be mailed by first  class
mail,  certified or registered,  return receipt  requested,  or by overnight air
courier guaranteeing next day delivery to its address shown on the register kept
by the  Registrar.  Any notice or  communication  shall also be so mailed to any
Person  described  in TIA  Section  313(c),  to the extent  required by the TIA.
Failure to mail a notice or  communication to a Holder or any defect in it shall
not affect its sufficiency with respect to other Holders.

      If a notice or communication is mailed in the manner provided above within
the time prescribed, it is duly given, whether or not the addressee receives it.

      If the Issuers mail a notice or communication to Holders,  they shall mail
a copy to the Trustee and each Agent at the same time.

SECTION 12.3   COMMUNICATION BY HOLDERS OF NOTES WITH OTHER HOLDERS OF NOTES

      Holders may communicate  pursuant to TIA Section 312(b) with other Holders
with respect to their rights under this Indenture or the Notes. The Issuers, the
Trustee,  the Registrar and anyone else shall have the protection of TIA Section
312(c).

SECTION 12.4   CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT

      Upon any request or  application by the Issuers to the Trustee to take any
action under this Indenture, the Issuers shall furnish to the Trustee:

      (a) an Officers' Certificate in form and substance reasonably satisfactory
to the Trustee  (which shall  include the  statements  set forth in Section 12.5
hereof)  stating that, in the opinion of the signers,  all conditions  precedent
and covenants,  if any, provided for in this Indenture  relating to the proposed
action have been satisfied; and

                                      112
<PAGE>

      (b) an Opinion of Counsel in form and substance reasonably satisfactory to
the Trustee  (which  shall  include  the  statements  set forth in Section  12.5
hereof)  stating  that,  in the  opinion of such  counsel,  all such  conditions
precedent and covenants have been satisfied.

SECTION 12.5   STATEMENTS REQUIRED IN CERTIFICATE OR OPINION

      Each certificate or opinion with respect to compliance with a condition or
covenant  provided  for in this  Indenture  (other than a  certificate  provided
pursuant to TIA Section 314(a)(4)) shall include:

      (a) a statement  that the Person  making such  certificate  or opinion has
read such covenant or condition;

      (b) a brief  statement  as to the nature and scope of the  examination  or
investigation   upon  which  the  statements  or  opinions   contained  in  such
certificate or opinion are based;

      (c) a statement  that,  in the opinion of such Person,  he or she has made
such  examination or  investigation  as is necessary to enable him to express an
informed  opinion as to  whether  or not such  covenant  or  condition  has been
satisfied; and

      (d) a statement as to whether or not, in the opinion of such Person,  such
condition or covenant has been satisfied;

provided,  however,  that with respect to matters of fact, an Opinion of Counsel
may rely on an Officers' Certificate or certificate of public officials.

SECTION 12.6   RULES BY TRUSTEE AND AGENTS

      The  Trustee  may make  reasonable  rules for action by or at a meeting of
Holders.  The  Registrar  or  Paying  Agent  may make  reasonable  rules and set
reasonable requirements for its functions.

SECTION 12.7   LEGAL HOLIDAYS

      If any payment date is a Legal  Holiday,  payment may be made at the place
of  payment  on the  next  succeeding  day that is not a Legal  Holiday,  and no
Interest shall accrue for the intervening period.

SECTION 12.8   NO PERSONAL LIABILITY OF DIRECTORS, OFFICERS, EMPLOYEES AND
               STOCKHOLDERS

      No  director,  officer,  employee,  incorporator,  stockholder,  member or
controlling person of any of the Issuers or any Subsidiary  Guarantor,  as such,
will  have  any  liability  for any  Obligations  of any of the  Issuers  or any
Subsidiary  Guarantor under the Notes, the Indenture,  the Security Documents or
the  Registration  Rights Agreement or for any claim based on, in respect of, or
by reason of, such Obligations or their

                                      113
<PAGE>

creation.  Each  Holder  by  accepting  a Note  waives  and  releases  all  such
liability. The waiver and release will be part of the consideration for issuance
of the Notes and the Subsidiary Guaranties.

SECTION 12.9   GOVERNING LAW AND SUBMISSION TO JURISDICTION

      THIS  INDENTURE  AND THE NOTES  SHALL BE  GOVERNED  BY, AND  CONSTRUED  IN
ACCORDANCE  WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE
AND TO BE PERFORMED  IN THE STATE OF NEW YORK,  INCLUDING,  WITHOUT  LIMITATION,
SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL  OBLIGATIONS LAW AND NEW YORK
CIVIL  PRACTICE  LAWS AND  RULES  327(b);  PROVIDED,  THAT WITH  RESPECT  TO THE
CREATION, ATTACHMENT, PERFECTION, PRIORITY, ENFORCEMENT OF AND REMEDIES RELATING
TO THE SECURITY INTEREST IN ANY REAL PROPERTY COLLATERAL,  THE GOVERNING LAW MAY
BE THE LAWS OF THE JURISDICTIONS WHERE SUCH COLLATERAL IS LOCATED WITHOUT REGARD
TO THE CONFLICT OF LAW PROVISIONS THEREOF.

      ALL JUDICIAL  PROCEEDINGS BROUGHT AGAINST ANY OF THE ISSUERS OR GUARANTORS
ARISING OUT OF OR RELATING  HERETO OR ANY OF THE SECURITY  DOCUMENTS,  OR ANY OF
THE  OBLIGATIONS,  MAY BE  BROUGHT IN ANY STATE OR  FEDERAL  COURT OF  COMPETENT
JURISDICTION  IN THE  STATE,  COUNTY  AND CITY OF NEW  YORK.  BY  EXECUTING  AND
DELIVERING  THIS  AGREEMENT,  EACH  ISSUER  OR  GUARANTOR,  FOR  ITSELF  AND  IN
CONNECTION WITH ITS PROPERTIES, IRREVOCABLY SUBMITS TO AND ACCEPTS GENERALLY AND
UNCONDITIONALLY THE NONEXCLUSIVE  JURISDICTION AND VENUE OF SUCH COURTS;  WAIVES
ANY DEFENSE OF FORUM NON  CONVENIENS;  AGREES THAT SERVICE OF ALL PROCESS IN ANY
SUCH  PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED  MAIL,
RETURN RECEIPT  REQUESTED,  TO THE APPLICABLE ISSUER OR GUARANTOR AT ITS ADDRESS
PROVIDED IN ACCORDANCE  WITH SECTION 12.3 OF THE INDENTURE;  AGREES THAT SERVICE
AS  PROVIDED  ABOVE IS  SUFFICIENT  TO  CONFER  PERSONAL  JURISDICTION  OVER THE
APPLICABLE  ISSUER OR GUARANTOR IN ANY SUCH  PROCEEDING  IN ANY SUCH COURT,  AND
OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT; AND AGREES
THE TRUSTEE RETAINS THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER  PERMITTED BY
LAW OR TO BRING  PROCEEDINGS  AGAINST  ANY OF THE ISSUERS OR  GUARANTORS  IN THE
COURTS  OF ANY  OTHER  JURISDICTION  HAVING  JURISDICTION  OVER  SUCH  ISSUER OR
GUARANTOR.

SECTION 12.10   NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS

      This Indenture may not be used to interpret any other  indenture,  loan or
debt  agreement of the Issuers or the  Restricted  Subsidiaries  or of any other
Person. Any such indenture,  loan or debt agreement may not be used to interpret
this Indenture.

                                      114
<PAGE>

SECTION 12.11   SUCCESSORS

      All  agreements  of the  Issuers  and the  Subsidiary  Guarantors  in this
Indenture  and the Notes  shall bind their  successors.  All  agreements  of the
Trustee in this Indenture shall bind its successors.

SECTION 12.12   SEVERABILITY

      In case  any one or more of the  provisions  of this  Indenture  or in the
Notes  or in the  Subsidiary  Guaranties  shall  be  held  invalid,  illegal  or
unenforceable,  in any  respect  for any  reason,  the  validity,  legality  and
enforceability of any such provision in every other respect and of the remaining
provisions  shall  not in any way be  affected  or  impaired  thereby,  it being
intended  that all of the  provisions  hereof shall be  enforceable  to the full
extent permitted by law.

SECTION 12.13   COUNTERPART ORIGINALS

      The parties may sign any number of copies of this  Indenture.  Each signed
copy  shall  be an  original,  but  all of  them  together  represent  the  same
agreement.

SECTION 12.14   TABLE OF CONTENTS, HEADINGS, ETC.

      The Table of Contents  and  headings of the  Articles and Sections of this
Indenture have been inserted for  convenience  of reference  only, are not to be
considered a part of this  Indenture  and shall in no way modify or restrict any
of the terms or provisions hereof.

                         [Signatures on following page]

                                      115
<PAGE>

                                   SIGNATURES

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

                                      THE ISSUERS:

                                      DIAMOND JO, LLC

                                      By:  /s/M. BRENT STEVENS
                                          -------------------------------------
                                           Name:  M. Brent Stevens
                                           Title: Chief Executive Officer

                                      By:  /s/NATALIE A. SCHRAMM
                                          -------------------------------------
                                           Name:  Natalie A. Schramm
                                           Title: Chief Financial Officer

                                      THE OLD EVANGELINE DOWNS CAPITAL CORP.

                                      By:  /s/M. BRENT STEVENS
                                           ------------------------------------
                                           Name:  M. Brent Stevens
                                           Title: Chief Executive Officer

                                      By:  /s/NATALIE A. SCHRAMM
                                          -------------------------------------
                                           Name:  Natalie A. Schramm
                                           Title: Chief Financial Officer

                                      THE GUARANTORS:

                                      THE OLD EVANGELINE DOWNS, L.L.C.

                                      By:  /s/M. BRENT STEVENS
                                           ------------------------------------
                                           Name:  M. Brent Stevens
                                           Title: Chief Executive Officer

                                      By:  /s/NATALIE A. SCHRAMM
                                          -------------------------------------
                                           Name:  Natalie A. Schramm
                                           Title: Chief Financial Officer

                                      OED ACQUISITION, LLC

                                      By:  /s/M. BRENT STEVENS
                                           ------------------------------------
                                           Name:  M. Brent Stevens
                                           Title: Chief Executive Officer

<PAGE>

                                      PENINSULA GAMING CORP.

                                      By:  /s/M. BRENT STEVENS
                                          -------------------------------------
                                           Name:  M. Brent Stevens
                                           Title: Chief Executive Officer

                                      THE TRUSTEE:

                                      U.S. BANK NATIONAL ASSOCIATION

                                      By:  /s/FRANK P. LESLIE III
                                           ------------------------------------
                                           Name:  Frank P. Leslie III
                                           Title: Vice President

<PAGE>
                                                                     EXHIBIT 4.8

                                    EXHIBIT A

                                 [FORM OF NOTE]

                                 DIAMOND JO, LLC

                     THE OLD EVANGELINE DOWNS CAPITAL CORP.

               8 3/4% [SERIES A] [SERIES B](1) SENIOR SECURED NOTE
                                    DUE 2012

                                                               CUSIP: __________
No.                                                           $_________________

      Diamond Jo, LLC, a Delaware limited  liability company (the "Company") and
The Old Evangeline Downs Capital Corp., a Delaware  corporation  ("Capital" and,
together with the Company,  the  "Issuers,"  which term includes any  successors
under,  and any  additional  "Issuers"  that may become a party to the Indenture
hereinafter  referred to), for value  received,  hereby promise to pay to Cede &
Co, or registered assigns, the principal sum of __________ Dollars, on April 15,
2012.

      Interest Payment Dates:  April 15 and October 15,  commencing  October 15,
2004.

      Interest Record Dates: April 1 and October 1

      Reference  is made to the further  provisions  of this Note on the reverse
side,  which shall,  for all  purposes,  have the same effect as if set forth at
this place.

      Upon  request,  the Issuers shall  promptly make  available to a holder of
this Note  information  regarding the issue price,  the amount of original issue
discount, the issue date, and the yield to maturity of this Note. Holders should
contact  Diamond Jo, LLC, 400 East Third Street,  P.O. Box 1750,  Dubuque,  Iowa
52004-1750, Attention: Michael S. Luzich.

----------
(1)   Series A should be replaced with Series B in the Exchange Notes.

                                      A-1
<PAGE>

      IN WITNESS  WHEREOF,  the Issuers have caused this  instrument  to be duly
executed.

                                    Diamond Jo, LLC,
                                    a Delaware limited liability company

                                    By:   ___________________________
                                          Name:
                                          Title:

                                    By:   ___________________________
                                          Name:
                                          Title:

                                    The Old Evangeline Downs Capital Corp.,
                                    a Delaware corporation

                                    By:   ___________________________
                                          Name:
                                          Title:

                                    By:   ___________________________
                                          Name:
                                          Title:

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

      This is one of the Notes described in the within-mentioned Indenture.

                                    U.S. Bank National Association

                                    By:   ___________________________
                                          Authorized Signatory

Dated: _______________

<PAGE>

                                (Reverse of Note)

          8 3/4% [Series A] [Series B](2) Senior Secured Note due 2012

[THIS  GLOBAL  NOTE IS HELD  BY THE  DEPOSITARY  (AS  DEFINED  IN THE  INDENTURE
GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL
OWNERS HEREOF,  AND IS NOT  TRANSFERABLE  TO ANY PERSON UNDER ANY  CIRCUMSTANCES
EXCEPT THAT (I) THE TRUSTEE  MAY MAKE SUCH  NOTATIONS  HEREON AS MAY BE REQUIRED
PURSUANT TO SECTION 2.6 OF THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED
IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.6(a) OF THE INDENTURE, (III) THIS
GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION
2.11 OF THE  INDENTURE  AND  (IV)  THIS  GLOBAL  NOTE  MAY BE  TRANSFERRED  TO A
SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE ISSUERS.](3)

[UNLESS AND UNTIL IT IS  EXCHANGED  IN WHOLE OR IN PART FOR NOTES IN  DEFINITIVE
FORM, THIS NOTE MAY NOT BE TRANSFERRED  EXCEPT AS A WHOLE BY THE DEPOSITARY TO A
NOMINEE OF THE DEPOSITARY,  OR BY A NOMINEE OF THE DEPOSITARY, TO THE DEPOSITARY
OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO
A SUCCESSOR  DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR  DEPOSITARY.  UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (55 WATER STREET,  NEW YORK, NEW YORK) ("DTC"),  TO THE ISSUERS OR THEIR
AGENT FOR  REGISTRATION  OF TRANSFER,  EXCHANGE OR PAYMENT,  AND ANY CERTIFICATE
ISSUED  IS  REGISTERED  IN THE NAME OF CEDE & CO. OR SUCH  OTHER  NAME AS MAY BE
REQUESTED  BY AN  AUTHORIZED  REPRESENTATIVE  OF DTC (AND ANY PAYMENT IS MADE TO
CEDE  & CO.  OR  SUCH  OTHER  ENTITY  AS  MAY  BE  REQUESTED  BY  AN  AUTHORIZED
REPRESENTATIVE  OF DTC),  ANY TRANSFER,  PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.](4)

[THE  RIGHTS  ATTACHING  TO THIS  REGULATION  S  TEMPORARY  GLOBAL  NOTE AND THE
CONDITIONS AND PROCEDURES  GOVERNING ITS EXCHANGE FOR DEFINITIVE  NOTES,  ARE AS
SPECIFIED  IN THE  INDENTURE  (AS  DEFINED  HEREIN).  NEITHER THE HOLDER NOR THE
BENEFICIAL OWNERS OF THIS REGULATION S TEMPORARY GLOBAL NOTE SHALL BE

----------
(2)   Series A should be replaced with Series B in the Exchange Notes.

(3)   To be included only on Global Notes deposited with DTC as Depositary.

(4)   To be included only on Global Notes deposited with DTC as Depositary.

                                      A-3
<PAGE>

ENTITLED  TO RECEIVE  CASH  PAYMENTS OF  INTEREST  DURING THE PERIOD  WHICH SUCH
HOLDER  HOLDS  THIS  NOTE.  NOTHING  IN THIS  LEGEND  SHALL BE DEEMED TO PREVENT
INTEREST FROM ACCRUING ON THIS NOTE.](5)

[THIS  SECURITY HAS NOT BEEN  REGISTERED  UNDER THE  SECURITIES  ACT OF 1933, AS
AMENDED (THE  "SECURITIES  ACT"),  OR ANY STATE  SECURITIES  LAWS.  NEITHER THIS
SECURITY  NOR ANY  INTEREST  OR  PARTICIPATION  HEREIN MAY BE  REOFFERED,  SOLD,
ASSIGNED,  TRANSFERRED,  PLEDGED,  ENCUMBERED  OR  OTHERWISE  DISPOSED OF IN THE
ABSENCE OF SUCH  REGISTRATION OR UNLESS SUCH  TRANSACTION IS EXEMPT FROM, OR NOT
SUBJECT TO, REGISTRATION.

THE HOLDER OF THIS SECURITY BY ITS  ACCEPTANCE  HEREOF AGREES TO OFFER,  SELL OR
OTHERWISE TRANSFER THIS SECURITY,  PRIOR TO THE DATE WHICH IS TWO YEARS (OR SUCH
OTHER  PERIOD  THAT MAY  HEREAFTER  BE  PROVIDED  UNDER  RULE  144(k)  UNDER THE
SECURITIES ACT AS PERMITTING RESALES OF RESTRICTED  SECURITIES BY NON-AFFILIATES
WITHOUT  RESTRICTION)  AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE
LAST DATE ON WHICH THE ISSUERS OR ANY  AFFILIATE OF THE ISSUERS WAS THE OWNER OF
THIS SECURITY (OR ANY  PREDECESSOR OF THIS  SECURITY)  (THE "RESALE  RESTRICTION
TERMINATION  DATE") ONLY (A) TO THE  ISSUERS,  (B)  PURSUANT  TO A  REGISTRATION
STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO
LONG AS THIS  SECURITY  IS ELIGIBLE  FOR RESALE  PURSUANT TO RULE 144A UNDER THE
SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL
BUYER" AS DEFINED IN RULE 144A UNDER THE  SECURITIES  ACT THAT PURCHASES FOR ITS
OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE
IS GIVEN  THAT THE  TRANSFER  IS BEING MADE IN  RELIANCE  ON RULE 144A UNDER THE
SECURITIES  ACT,  (D) PURSUANT TO OFFERS AND SALES TO NON-U.S.  PURCHASERS  THAT
OCCUR  OUTSIDE  THE UNITED  STATES IN  ACCORDANCE  WITH  REGULATION  S UNDER THE
SECURITIES ACT, (E) TO AN INSTITUTIONAL "ACCREDITED INVESTOR" WITHIN THE MEANING
OF  SUBPARAGRAPH  (a) (1), (2), (3) OR (7) OF RULE 501 UNDER THE  SECURITIES ACT
THAT IS ACQUIRING THIS SECURITY FOR ITS OWN ACCOUNT,  OR FOR THE ACCOUNT OF SUCH
AN INSTITUTIONAL  "ACCREDITED  INVESTOR," FOR INVESTMENT PURPOSES AND NOT WITH A
VIEW TO, OR FOR OFFER OR SALE IN CONNECTION  WITH, ANY DISTRIBUTION IN VIOLATION
OF THE  SECURITIES ACT OR (F) PURSUANT TO ANOTHER  AVAILABLE  EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE ISSUERS' AND THE
TRUSTEE'S  RIGHT  PRIOR TO ANY SUCH OFFER,  SALE OR TRANSFER  PURSUANT TO CLAUSE
(D), (E) OR (F) TO

----------
(5)   To be included only on Reg S Temporary Global Notes.

                                      A-4
<PAGE>

REQUIRE  THE  DELIVERY  OF AN OPINION OF COUNSEL,  CERTIFICATIONS  AND/OR  OTHER
INFORMATION  SATISFACTORY TO EACH OF THEM, AND IN EACH OF THE FOREGOING CASES, A
CERTIFICATE  OF TRANSFER IN THE FORM APPEARING ON THIS SECURITY IS COMPLETED AND
DELIVERED BY THE  TRANSFEROR TO THE TRUSTEE AND IN EACH CASE IN ACCORDANCE  WITH
APPLICABLE   SECURITIES  LAWS  OF  ANY  U.S.  STATE  OR  ANY  OTHER   APPLICABLE
JURISDICTION.](6)

      Capitalized  terms used herein shall have the meanings assigned to them in
the Indenture referred to below unless otherwise indicated.

      1. Interest.  The Issuers promise to pay Interest on the principal  amount
of this Note at 8 3/4% per annum from the Issue Date  until  maturity  and shall
pay the  Liquidated  Damages,  if any,  payable  pursuant  to  Section  4 of the
Registration  Rights Agreement referred to below. The Issuers shall pay Interest
and Liquidated Damages, if any, semi-annually on April 15 and October 15 of each
year, or if any such day is not a Business Day, on the next succeeding  Business
Day (each an "Interest Payment Date").  The first Interest Payment Date shall be
October 15,  2004.  Interest on the Notes shall accrue from the most recent date
to which Interest has been paid or, if no Interest has been paid, from the Issue
Date;  provided that if there is no existing Default in the payment of Interest,
and if this Note is  authenticated  between an  Interest  Record  Date  (defined
below) referred to on the face hereof and the next succeeding  Interest  Payment
Date, Interest shall accrue from such next succeeding Interest Payment Date. The
Issuers  shall  pay  Interest  (including  Accrued  Bankruptcy  Interest  in any
proceeding under any Bankruptcy Law) on overdue  principal and premium,  if any,
from time to time on demand at the rate then in  effect;  it shall pay  Interest
(including  Accrued  Bankruptcy  Interest in any proceeding under any Bankruptcy
Law) on  overdue  installments  of  Interest  and  Liquidated  Damages,  if any,
(without regard to any applicable  grace periods) from time to time on demand at
the same rate to the extent lawful. Interest shall be calculated on the basis of
a 360-day year consisting of twelve 30-day months.

      2. Method of  Payment.  The  Issuers  shall pay  Interest on the Notes and
Liquidated  Damages,  if any, to the Persons who are registered Holders of Notes
at the close of business on the April 1 or October 1 next preceding the Interest
Payment Date (each an "Interest Record Date"),  even if such Notes are cancelled
after such  Interest  Record Date and on or before such  Interest  Payment Date,
except as  provided in Section  2.12 of the  Indenture  (as defined  below) with
respect to  defaulted  interest.  The Notes  shall be  payable as to  principal,
Interest,  premium,  if any, and  Liquidated  Damages,  if any, at the office or
agency of the Issuers  maintained within the City and State of New York for such
purpose,  or, at the option of the Issuers,  payment of Interest and  Liquidated
Damages,  if any, may be made by check mailed to the Holders at their  addresses
set forth in the register of Holders, and provided that payment by wire transfer
of immediately  available  funds to an account within the United States shall be
required  with  respect to  principal  of and  Interest,  premium,  if any,  and
Liquidated  Damages,  if any, on all Global

----------
(6)   To be included only on Transfer Restricted Notes.

                                      A-5
<PAGE>

Notes.  Such payment  shall be in such coin or currency of the United  States of
America  as at the time of payment  is legal  tender  for  payment of public and
private debts.

      3. Paying Agent and Registrar.  Initially, U.S. Bank National Association,
the Trustee under the Indenture,  shall act as Paying Agent and  Registrar.  The
Issuers may change any Paying Agent or Registrar  without  notice to any Holder.
The Company or any of its subsidiaries may act in any such capacity.

      4. Indenture. The Issuers issued the Notes under an Indenture, dated as of
the  Issue  Date  ("Indenture"),  by  and  among  the  Issuers,  the  Subsidiary
Guarantors  party thereto and the Trustee.  The terms of the Notes include those
stated in the Indenture and those made part of the Indenture by reference to the
Trust Indenture Act of 1939, as amended (15 U.S. Code ss.ss. 77aaa-77bbbb).  The
Notes are subject to all such terms,  and Holders are referred to the  Indenture
and such Act for a statement of such terms.

      The Obligations  under the Indenture,  the  Intercreditor  Agreement,  the
Notes and the  Subsidiary  Guaranties  thereof  are  secured  by the  Collateral
described  in  the  Security  Documents,  subject  to  the  provisions  of  such
agreements and the Intercreditor Agreement. Holders are referred to the Security
Documents and the Intercreditor Agreement for a statement of such terms.

      5. Optional Redemption.

      (a) Except as set forth in Section 5(b),  the Notes are not  redeemable at
the  Issuers'  option prior to April 15,  2008.  Thereafter,  the Notes shall be
subject to redemption,  in whole or in part, at the option of the Issuers at the
redemption  prices  (expressed  as  percentages  of principal  amount) set forth
below,  plus  accrued  and unpaid  Interest  (and  Liquidated  Damages,  if any)
thereon,  to the  applicable  redemption  date, if redeemed  during the 12-month
period beginning on April 15 of the years indicated below:

          YEAR                               PERCENTAGE
          ----                               ----------
          2008                                 104.375%
          2009                                 102.917%
          2010                                 101.458%
          2011 and thereafter                  100.000%

      (b)  Notwithstanding  Section 5(a), at any time or from time to time prior
to April 15, 2007,  the Issuers may redeem,  at their  option,  up to 35% of the
aggregate principal amount of the Notes then outstanding,  at a redemption price
of 108.75% of the principal  amount  thereof,  plus accrued and unpaid  Interest
(and  Liquidated  Damages,  if any) thereon,  through the applicable  redemption
date, with the net cash proceeds of one or more Equity Offerings; provided, that
(i) such  redemption  shall occur  within 60 days of the date of closing of such
Equity Offering and (ii) at least 65% of the aggregate principal amount of Notes
issued under the Indenture remains  outstanding  immediately after giving effect
to each such redemption.

                                      A-6
<PAGE>

      (c) Notice of  redemption  shall be mailed by first class mail at least 30
days but not more than 60 days before the  redemption  date to each Holder whose
Notes are to be  redeemed  at its  registered  address.  Notes in  denominations
larger than $1,000 may be  redeemed  in part but only in integral  multiples  of
$1,000,  unless  all of the Notes held by a Holder  are to be  redeemed.  On and
after the  redemption  date,  Interest  ceases  to  accrue on Notes or  portions
thereof called for redemption unless the Issuers default in such payments due on
the redemption date.

      6. Regulatory  Redemption.  Notwithstanding  any other provisions  hereof,
Notes to be  redeemed  pursuant  to a Required  Regulatory  Redemption  shall be
redeemable  by the Issuers,  in whole or in part, at any time upon not less than
20 Business  Days nor more than 60 days notice (or such  earlier  date as may be
ordered by any applicable Governmental Authority) at a price equal to the lesser
of (a) the Holder's cost thereof and (b) 100% of the principal  amount  thereof,
plus in either case accrued and unpaid  Interest,  plus Liquidated  Damages,  if
any,  thereon,  if any, to the date of  redemption  (or such  earlier  period as
ordered by a  Governmental  Authority).  The Issuers are not  required to pay or
reimburse  any Holder or  beneficial  owner of the Notes for the expenses of any
such  Holder or  beneficial  owner  related  to the  application  for any Gaming
License,  qualification  or finding of suitability in connection with a Required
Regulatory  Redemption.  Such  expenses of any such Holder or  beneficial  owner
shall,  therefore,  be the  obligation of such Holder or beneficial  owner.  Any
Required  Regulatory  Redemption shall be made in accordance with the provisions
of  Section  3.3,  3.4 and 3.5 of the  Indenture  unless  other  procedures  are
required by any Governmental Authority.

      7.  Mandatory  Redemption.  The  Issuers  shall  not be  required  to make
mandatory  redemption  payments with respect to the Notes (except for a Required
Regulatory  Redemption  and any offer to  repurchase  Notes that the Issuers are
required to make in accordance  with  Sections 4.13 and 4.15 of the  Indenture).
The Notes shall not have the benefit of any sinking fund.

      8. Offers to Purchase.

            (a) Change of Control.  Upon the  occurrence of a Change of Control,
the Issuers shall offer to  repurchase  all of the Notes then  outstanding  (the
"Change of Control  Offer") at a purchase  price equal to 101% of the  principal
amount  thereof,  plus  accrued  and  unpaid  interest,  if any,  to the date of
repurchase  (the  "Change of Control  Payment").  Within 30 days  following  any
Change of Control,  the Issuers must mail or cause to be mailed a notice to each
Holder  stating,  among other  things:  (i) the purchase  price and the purchase
date,  which  shall be no  earlier  than 30 days nor later than 45 days from the
date such notice is mailed (the "Change of Control Payment Date"); (ii) that any
Holder  electing to have Notes  purchased  pursuant to a Change of Control Offer
shall be required to  surrender  the Notes,  with the form  entitled  "Option of
Holder to Elect Purchase" on the reverse of the Notes  completed,  to the Paying
Agent at the address  specified  in the notice prior to the close of business on
the third  Business Day preceding the Change of Control  Payment Date; and (iii)
that the Holder shall be entitled to withdraw  such election if the Paying Agent
receives, not later than the close of business

                                      A-7
<PAGE>

on the second  Business  Day  preceding  the Change of Control  Payment  Date, a
telegram,  telex, facsimile transmission or letter setting forth the name of the
Holder,  the principal  amount of Notes delivered for purchase,  and a statement
that such Holder is withdrawing his election to have such Notes purchased.

      (b) Asset Sale.  Subject to certain exceptions set forth in the Indenture,
the Issuers shall not, and shall not permit any  Restricted  Subsidiary to, make
any Asset Sale unless:  (i) such Issuer or such Restricted  Subsidiary  receives
consideration at the time of such Asset Sale not less than the fair market value
of the  assets  subject  to such  Asset  Sale (as  determined  by the  Company's
Managers in good faith);  (ii) at least 75% of the  consideration for such Asset
Sale is in the form of either (a) cash or Cash Equivalents or liabilities of the
Company or any Restricted  Subsidiary  (other than liabilities that are by their
terms subordinated to the Notes or any Subsidiary  Guaranty) that are assumed by
the transferee of such assets  (provided,  that following such Asset Sale, there
is no further  recourse to the  Company or the  Restricted  Subsidiaries  or the
Company and the Restricted  Subsidiaries  are fully  indemnified with respect to
such liabilities;  provided,  further, that the 75% limitation set forth in this
clause (ii) of this  paragraph  shall not apply to any  proposed  Asset Sale for
which an independent  certified accounting firm has certified to the Managers of
the Company and the Trustee that the after-tax cash portion of the consideration
to be received by the Company or such  Restricted  Subsidiary  in such  proposed
Asset  Sale is equal to or greater  than what the net  after-tax  cash  proceeds
would have been had such proposed  Asset Sale  complied with the 75%  limitation
set forth in this  clause  (ii) of this  paragraph),  or (b)  assets of the type
described  in clause  (iii)(a)  below;  and (iii)  within 360 days of such Asset
Sale,  the Net  Proceeds  thereof  are (a)  invested  in assets  related  to the
business of the Company or the Restricted Subsidiaries (which, in the case of an
Asset Sale of the Diamond Jo or any  replacement  Gaming Vessel (a  "Replacement
Vessel"),  must be a Gaming Vessel having a fair market value,  as determined by
an independent appraisal, at least equal to the fair market value of the Diamond
Jo or such  Replacement  Vessel  immediately  preceding  such Asset  Sale),  (b)
applied to repay  Indebtedness  under  Purchase  Money  Obligations  incurred in
connection with the assets so sold, (c) applied to repay  Indebtedness under the
Senior Credit Facility and permanently  reduce the commitment  thereunder in the
amount of the  Indebtedness  so repaid or (d) to the extent not used as provided
in clauses  (a),  (b),  or (c) or this  paragraph  or any  combination  thereof,
applied  to make an offer to  purchase  Notes as  described  below  (an  "Excess
Proceeds  Offer");  provided,  that the Company shall not be required to make an
Excess  Proceeds  Offer  until the amount of Excess  Proceeds  is  greater  than
$10,000,000.

      9.  Denominations,  Transfer,  Exchange.  The Notes are in registered form
without coupons in denominations of $1,000 and integral multiples of $1,000. The
transfer of Notes may be  registered  and Notes may be  exchanged as provided in
the Indenture.  The Registrar and the Trustee may require a Holder,  among other
things,  to furnish  appropriate  endorsements and transfer  documents,  and the
Issuers  may  require  a Holder to pay any  taxes  and fees  required  by law or
permitted  by the  Indenture.  The Issuers  need not  exchange  or register  the
transfer of any Note or portion of a Note  selected for  redemption,  except for
the unredeemed portion of any Note being redeemed

                                      A-8
<PAGE>

in part.  Also, it need not exchange or register the transfer of any Notes for a
period of 15 days  before a  selection  of Notes to be  redeemed  or during  the
period between an Interest Record Date and the  corresponding  Interest  Payment
Date.

      10. Persons Deemed Owners.  The registered Holder of a Note may be treated
as its owner for all purposes.

      11. Amendment,  Supplement and Waiver. Subject to certain exceptions,  the
Indenture,  the  Notes  or  the  Subsidiary  Guaranties,   or,  subject  to  the
Intercreditor  Agreement, the Security Documents, may be amended or supplemented
with the consent of the Holders of a majority  in  principal  amount of the then
outstanding  Notes, and any existing Default or compliance with any provision of
the  Indenture,  the Notes or the  Subsidiary  Guaranties may be waived with the
consent of the Holders of a majority in principal amount of the then outstanding
Notes.  Without the consent of any Holder of a Note, the  Indenture,  the Notes,
the Subsidiary Guaranties,  the Registration Rights Agreement or, subject to the
Intercreditor  Agreement,  the Security Documents may be amended or supplemented
to cure any ambiguity,  defect or inconsistency,  to provide for  uncertificated
Notes in  addition  to or in place of  certificated  Notes,  to provide  for the
assumption of the Issuers' or the Subsidiary Guarantors'  obligations to Holders
of  the  Notes  in  case  of a  merger  or  consolidation  or  sale  of  all  or
substantially  all of its assets in accordance  with the Indenture,  to evidence
the release of any Subsidiary  Guaranty permitted to be released under the terms
of the Indenture  and the Security  Documents or to evidence the addition of any
new Subsidiary  Guarantor,  to make any change that would provide any additional
rights or benefits to the Holders of the Notes  (including  the  addition of any
Subsidiary  Guarantor)  or that does not  adversely  affect the rights under the
Indenture,  the  Notes,  the  Subsidiary  Guaranties,  the  Registration  Rights
Agreement,  the Security  Documents or the  Intercreditor  Agreement of any such
Holder,  to  comply  with  the  provisions  of  the  Depositary,   Euroclear  or
Clearstream  or the Trustee with respect to the  provisions  of the Indenture or
the Notes  relating to transfers and exchanges of Notes or beneficial  interests
therein,  to  comply  with the  requirements  of the SEC in order to  effect  or
maintain the  qualification  of the Indenture  under the TIA, to provide for the
issuance of Additional Notes in accordance with the limitations set forth in the
Indenture,  to comply with  applicable  gaming laws and racing laws, or to enter
into additional or supplemental  Security  Documents.  Notwithstanding  Sections
9.2(a), (b) and (c) of the Indenture and subject to the Intercreditor Agreement,
no portion  of the  Collateral  may be  released  from the Lien of the  Security
Documents  (except in accordance  with the  provisions of this Indenture and the
Security Documents), and none of the Security Documents or the provisions of the
Indenture  relating to the  Collateral may be amended or  supplemented,  and the
rights of any Holders thereunder may not be waived or modified, without, in each
case, the consent of the Holders of at least 75% in aggregate  principal  amount
of the then outstanding Notes.

      12.  Defaults  and  Remedies.  The  Indenture  provides  that  each of the
following  constitutes  an Event of  Default:  (i) the  Issuers  default  in the
payment of  Interest  on any Note when the same  becomes due and payable and the
Default  continues  for a period of 30 days;  (ii) the  Issuers  default  in the
payment of the principal (or premium,  if any) on any Note when the same becomes
due and payable at maturity, upon redemption, by

                                      A-9
<PAGE>

acceleration, in connection with an Excess Proceeds Offer or a Change of Control
Offer or otherwise; (iii) either of the Issuers default in the performance of or
breaches  the  provisions  of  Section  4.13,  Section  4.15 or Article V of the
Indenture;  (iv)  either of the  Issuers or any  Subsidiary  Guarantor  fails to
comply with any of its other  agreements or covenants in, or provisions  of, the
Notes or this  Indenture  and the Default  continues  for 60 days after  written
notice  thereof  has been given to the  Issuers by the Trustee or to the Issuers
and the Trustee by the Holders of at least 25% in aggregate  principal amount of
the then  outstanding  Notes,  such  notice  to state  that it is a  "Notice  of
Default";  (v) an event of default  occurs  under  (after  giving  effect to any
waivers,  amendments,  applicable grace periods or any extension of any maturity
date) any mortgage,  indenture or instrument  under which there may be issued or
by which there may be secured or evidenced any  Indebtedness  for money borrowed
by the  Issuers  or any  Restricted  Subsidiary  (or the  payment  of  which  is
guaranteed  by  the  Issuers  or  any  Restricted   Subsidiary),   whether  such
Indebtedness  or guaranty now exists or is created  after the Issue Date, if (a)
either (1) such default results from the failure to pay principal of or interest
on such Indebtedness or (2) as a result of such event of default the maturity of
such  Indebtedness  has been  accelerated,  and (b) the principal amount of such
Indebtedness,  together with the principal amount of any other such Indebtedness
with respect to which such a payment event of default  (after the  expiration of
any applicable grace period or any extension of the maturity date) has occurred,
or the  maturity of which has been so  accelerated,  exceeds  $5,000,000  in the
aggregate;  (vi) a final non-appealable judgment or judgments for the payment of
money  (other  than to the  extent  of any  judgment  as to  which  a  reputable
insurance company has accepted liability) is or are entered by a court or courts
of competent  jurisdiction  against  either of the Issuers or any Subsidiary and
such judgment or judgments are not  discharged,  bonded or stayed within 60 days
after  entry,  provided  that  the  aggregate  of  all  such  judgments  exceeds
$5,000,000;;  (vii) the cessation of substantially  all gaming operations of the
Company  and the  Restricted  Subsidiaries,  taken as a whole,  for more than 90
days, except as a result of an Event of Loss; (viii) any revocation, suspension,
expiration  (without  previous  or  concurrent  renewal)  or loss of any  Gaming
License of the Company or any Restricted  Subsidiary for more than 90 days; (ix)
any  Subsidiary  Guaranty  of a  Subsidiary  Guarantor  which  is a  Significant
Subsidiary  ceases  to be in full  force  and  effect  or  shall  be held in any
judicial  proceeding to be unenforceable or invalid or is declared null and void
(other than in  accordance  with the terms of the  Subsidiary  Guaranty  and the
Indenture) or any Subsidiary Guarantor which is a Significant  Subsidiary denies
or disaffirms  its  Obligations  under its  Subsidiary  Guaranty or the Security
Documents  (in  each  case,  other  than by  reason  of the  termination  of the
Indenture or the release of any such Subsidiary  Guaranty in accordance with the
Indenture); (x) (A) any event of default under a Security Document (after giving
effect to any applicable grace periods,  applicable  notice periods,  waivers or
amendments)  or (B) the failure of the Issuers or any  Restricted  Subsidiary to
comply with any material agreement or covenant in, or material provision of, any
of the Security Documents, or any breach in any material respect of any material
representation  or warranty made by the Issuers or any Restricted  Subsidiary in
any  Security  Document,  and the  continuance  of such  failure or breach for a
period of 30 days after written notice is given to the Issuers by the Trustee or
to the  Issuers  and the  Trustee by the  Holders  of at least 25% in  aggregate
principal amount of the Notes

                                      A-10
<PAGE>

outstanding;  (xi) any of the Security  Documents ceases to be in full force and
effect or any of the Security  Documents  ceases to give the Trustee (or, in the
case of a mortgage,  ceases to give the Trustee or any other  trustee under such
mortgage) any of the Liens, rights, powers or privileges purported to be created
thereby,  or any of the Security  Documents is declared null and void, or any of
the Issuers or any Subsidiary Guarantor denies that it has any further liability
under  any  Security  Document  to which it is a party or gives  notice  of such
effect (in each case other than by reason of the termination of the Indenture or
any such Security  Document in  accordance  with its terms or the release of any
Subsidiary  Guarantor in accordance  with the Indenture) and the  continuance of
such  failure  for a period  of 30 days  after  written  notice  is given to the
Issuers by the  Trustee or to the  Issuers  and the Trustee by the Holders of at
least 25% in aggregate  principal amount of the Notes outstanding;  (xii) either
of the Issuers or any Subsidiary  Guarantor pursuant to or within the meaning of
any Bankruptcy Law: (1) commences a voluntary case, (2) consents to the entry of
an order for relief  against it in an  involuntary  case,  (3)  consents  to the
appointment  of a  custodian  of it or  for  all  or  substantially  all  of its
property,  (4) makes a general  assignment for the benefit of its creditors,  or
(5) admits in writing its  inability  to pay debts as the same  become due;  and
(xi) a court of  competent  jurisdiction  enters  an order or  decree  under any
Bankruptcy  Law that:  (1) is for relief  against  either of the  Issuers or any
Subsidiary  Guarantor in an involuntary case, (2) appoints a custodian of either
of the Issuers or any Subsidiary  Guarantor or for all or  substantially  all of
their property,  or (3) orders the liquidation of either of the Issuers,  or any
Subsidiary Guarantor, and the order or decree remains unstayed and in effect for
60 days.

      14. Trustee Dealings with Issuers.  The Trustee,  in its individual or any
other capacity,  may make loans to, accept  deposits from, and perform  services
for the Issuers or their Affiliates,  and may otherwise deal with the Issuers or
their Affiliates, as if it were not the Trustee.

      15.  No  Recourse  Against  Others.   No  director,   officer,   employee,
incorporator, stockholder, member or controlling person of any of the Issuers or
any Subsidiary  Guarantor,  as such, will have any liability for any Obligations
of any  of the  Issuers  or  any  Subsidiary  Guarantor  under  the  Notes,  the
Indenture,  the Security  Documents or the Registration  Rights Agreement or for
any claim based on, in respect of, or by reason of,  such  Obligations  or their
creation.  Each  Holder  by  accepting  a Note  waives  and  releases  all  such
liability. The waiver and release will be part of the consideration for issuance
of the Notes and the Subsidiary Guaranties.

      16.  Authentication.  This Note shall not be valid until  authenticated by
the manual signature of the Trustee or an authenticating agent.

      17.  Abbreviations.  Customary  abbreviations may be used in the name of a
Holder or an  assignee,  such as:  TEN COM (=  tenants  in  common),  TEN ENT (=
tenants by the  entireties),  JT TEN (= joint tenants with right of survivorship
and not as tenants in common), CUST (= Custodian),  and U/G/M/A (= Uniform Gifts
to Minors Act).

                                      A-11
<PAGE>

      18.  Additional  Rights of Holders of  Transfer  Restricted  Notes.(7)  In
addition to the rights provided to Holders of Notes under the Indenture, Holders
of  Transfer  Restricted  Notes  shall  have  all the  rights  set  forth in the
Registration  Rights  Agreement  dated as of the date of the  Indenture,  by and
among the Issuers,  the  Subsidiary  Guarantors  and the Initial  Purchaser (the
"Registration Rights Agreement").

      19.  CUSIP  Numbers.  Pursuant  to a  recommendation  promulgated  by  the
Committee on Uniform Security Identification Procedures, the Issuers have caused
CUSIP  numbers to be printed on the Notes and the Trustee may use CUSIP  numbers
in notices of redemption as a convenience to Holders.  No representation is made
as to the  accuracy  of such  numbers  either  as  printed  on the  Notes  or as
contained  in any notice of  redemption  and  reliance may be placed only on the
other  identification  numbers placed thereon, and any such redemption shall not
be affected by any defect in or omission of such numbers.

      20.  Notation  of  Subsidiary  Guaranty.  As more  fully  set forth in the
Indenture,  to the extent  permitted by law, each of the  Subsidiary  Guarantors
from  time  to  time,   in  accordance   with  Article  XI  of  the   Indenture,
unconditionally and jointly and severally  guarantees,  to each Holder of a Note
authenticated and delivered by the Trustee and to the Trustee and its successors
and assigns, that:

      By its  execution  of its  Subsidiary  Guaranty,  each  of the  Subsidiary
Guarantors  acknowledges and agrees that it receives  substantial  benefits from
the Issuers and that such party is providing  its  Subsidiary  Guaranty for good
and valuable  consideration,  including,  without  limitation,  such substantial
benefits and services.  Accordingly,  subject to the provisions of Article XI of
the Indenture, each Subsidiary Guarantor, jointly and severally, unconditionally
guarantees on a senior secured basis to each Holder of a Note  authenticated and
delivered by the Trustee and its  successors and assigns that: (i) the principal
of, premium,  if any,  Interest,  and Liquidated  Damages,  if any, on the Notes
shall be duly and  punctually  paid in full when due,  whether at  maturity,  by
acceleration, call for redemption, upon a Change of Control Offer, an Asset Sale
Offer,  or  otherwise,  and  Interest  on overdue  principal,  premium,  if any,
Liquidated Damages, if any, and (to the extent permitted by law) interest on any
Interest,  if any, on the Notes and all other  obligations of the Issuers to the
Holders or the Trustee under the Notes, the Indenture, the Security Documents or
the Registration  Rights Agreement  (including fees, expenses or other) shall be
promptly  paid in full or  performed,  all in  accordance  with the terms of the
Indenture;  and (ii) in case of any  extension  of time of payment or renewal of
any Notes or any of such other obligations  under the Notes, the Indenture,  the
Security Documents, or Registration Rights Agreement, the same shall be promptly
paid in full when due or performed in accordance with the terms of the extension
or renewal,  whether at stated maturity,  by acceleration,  call for redemption,
upon a Change of Control, an Asset Sale Offer, or otherwise,  subject,  however,
in the case of  clauses  (i) and (ii)  above,  to the  limitations  set forth in
Section 11.6 of the Indenture.

----------
(7)   To be included only on Transfer Restricted Notes.

                                      A-12
<PAGE>

      When a successor  assumes all the obligations of its predecessor under the
Notes and the Indenture, the predecessor may be released from those obligations.

      21.  Governing  Law and Consent to  Jurisdiction.  THIS  INDENTURE AND THE
NOTES SHALL BE GOVERNED BY, AND  CONSTRUED IN ACCORDANCE  WITH,  THE LAWS OF THE
STATE OF NEW YORK  APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN THE STATE
OF NEW YORK,  INCLUDING,  WITHOUT LIMITATION,  SECTIONS 5-1401 AND 5-1402 OF THE
NEW YORK  GENERAL  OBLIGATIONS  LAW AND NEW YORK CIVIL  PRACTICE  LAWS AND RULES
327(b);  PROVIDED,  THAT WITH RESPECT TO THE CREATION,  ATTACHMENT,  PERFECTION,
PRIORITY,  ENFORCEMENT OF AND REMEDIES  RELATING TO THE SECURITY INTEREST IN ANY
REAL PROPERTY COLLATERAL, THE GOVERNING LAW MAY BE THE LAWS OF THE JURISDICTIONS
WHERE  SUCH  COLLATERAL  IS  LOCATED  WITHOUT  REGARD  TO  THE  CONFLICT  OF LAW
PROVISIONS THEREOF.

      ALL JUDICIAL  PROCEEDINGS BROUGHT AGAINST ANY OF THE ISSUERS OR GUARANTORS
ARISING OUT OF OR RELATING  HERETO OR ANY OF THE SECURITY  DOCUMENTS,  OR ANY OF
THE  OBLIGATIONS,  MAY BE  BROUGHT IN ANY STATE OR  FEDERAL  COURT OF  COMPETENT
JURISDICTION  IN THE  STATE,  COUNTY  AND CITY OF NEW  YORK.  BY  EXECUTING  AND
DELIVERING  THIS  AGREEMENT,  EACH  ISSUER  OR  GUARANTOR,  FOR  ITSELF  AND  IN
CONNECTION WITH ITS PROPERTIES, IRREVOCABLY SUBMITS TO AND ACCEPTS GENERALLY AND
UNCONDITIONALLY THE NONEXCLUSIVE  JURISDICTION AND VENUE OF SUCH COURTS;  WAIVES
ANY DEFENSE OF FORUM NON  CONVENIENS;  AGREES THAT SERVICE OF ALL PROCESS IN ANY
SUCH  PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED  MAIL,
RETURN RECEIPT  REQUESTED,  TO THE APPLICABLE ISSUER OR GUARANTOR AT ITS ADDRESS
PROVIDED IN ACCORDANCE  WITH SECTION 12.3 OF THE INDENTURE;  AGREES THAT SERVICE
AS  PROVIDED  ABOVE IS  SUFFICIENT  TO  CONFER  PERSONAL  JURISDICTION  OVER THE
APPLICABLE  ISSUER OR GUARANTOR IN ANY SUCH  PROCEEDING  IN ANY SUCH COURT,  AND
OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT; AND AGREES
THE TRUSTEE RETAINS THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER  PERMITTED BY
LAW OR TO BRING  PROCEEDINGS  AGAINST  ANY OF THE ISSUERS OR  GUARANTORS  IN THE
COURTS  OF ANY  OTHER  JURISDICTION  HAVING  JURISDICTION  OVER  SUCH  ISSUER OR
GUARANTOR.

      20. Security.  This Note is Guaranteed and secured by substantially all of
the assets of the Issuer and the  Subsidiary  Guarantors  (other  than  Excluded
Assets),  subject to certain  exceptions and limitations more fully set forth in
the Indenture and Security Documents.

                                      A-13
<PAGE>

      The Issuers shall  furnish to any Holder upon written  request and without
charge  a copy  of the  Indenture  and/or  the  Registration  Rights  Agreement.
Requests may be made to:

                     DIAMOND JO, LLC
                     THE OLD EVANGELINE DOWNS CAPITAL CORP.
                     400 East Third Street
                     P.O. Box 1750
                     Dubuque, Iowa 52004-1750
                     Attention: Michael S. Luzich

                                      A-14
<PAGE>

                                 ASSIGNMENT FORM

To assign  this Note,  fill in the form below:  (I) or (We) assign and  transfer
this Note to

________________________________________________________________________________
                  (Insert assignee's soc. sec. or tax I.D. no.)

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________
              (Print or type assignee's name, address and zip code)

and irrevocably appoint
                        ________________________________________________________

to  transfer  this Note on the books of the  Issuers.  The agent may  substitute
another to act for it.

Date: _____________________________

                                         Your Signature:________________________
                                       (Sign exactly as your name appears on the
                                       face of this Note)
Signature Subsidiary Guaranty*

________________________________________________________________________________

*NOTICE: The Signature must be guaranteed by an Institution which is a member of
one of the following recognized signature Subsidiary Guaranty Programs:  (i) The
Securities  Transfer Agent Medallion  Program  (STAMP);  (ii) The New York Stock
Exchange  Medallion Program (MNSP);  (iii) The Stock Exchange  Medallion Program
(SEMP); or (iv) such other guaranty program acceptable to the Trustee.

                                      A-15
<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

      If you want to elect to have this Note  purchased by the Issuers  pursuant
to Section 4.13 or Section 4.15 of the Indenture, check the box below:

             Section 4.13 [ ]                      Section 4.15 [ ]

      If you want to  elect  to have  only  part of the  Note  purchased  by the
Issuers pursuant to Section 4.13 or 4.15 of the Indenture,  state the amount you
elect to have  purchased (in  denominations  of $1,000 only,  except if you have
elected to have all of your Notes purchased): $_____________

Date:________________________________      Your Signature:______________________
                                           (Sign exactly as your name appears on
                                            the Note)

                        Social Security or Tax Identification No.:______________

Signature Subsidiary Guaranty*

________________________________________________________________________________

*NOTICE: The Signature must be guaranteed by an Institution which is a member of
one of the following recognized signature Subsidiary Guaranty Programs:  (i) The
Securities  Transfer Agent Medallion  Program  (STAMP);  (ii) The New York Stock
Exchange  Medallion Program (MNSP);  (iii) The Stock Exchange  Medallion Program
(SEMP); or (iv) such other guaranty program acceptable to the Trustee.

                                      A-16
<PAGE>

            SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE(8)

      The following exchanges of an interest in this Global Note for an interest
in another Global Notes or for a Definitive Note, or exchanges of an interest in
another  Global Note or a  Definitive  Note for an interest in this Global Note,
have been made:

<TABLE>
<CAPTION>
                                                Amount of
                           Amount of           Increase in                                   Signature of
                          Decrease in           Principal        Principal Amount of      Authorized Officer
                        Principal Amount        Amount of          this Global Note               of
                        of this Global         this Global          Following Such         Trustee or Note
 Date of Exchange             Note                 Note          Decrease or Increase         Custodian
 ----------------       ----------------       ------------      --------------------     ------------------
<S>                    <C>                    <C>               <C>                      <C>

</TABLE>

----------
(8)   This should be included only if the Note is issued in global form.

                                      A-17

<PAGE>

                                    GUARANTEE

      Each of the  entities  listed on the  signature  page hereto  (hereinafter
referred to as the "Subsidiary  Guarantors,"  which term includes any successors
or assigns  under the  Indenture,  dated the date hereof,  among the  Subsidiary
Guarantors  (as defined  therein),  the Issuers  (defined  below) and U.S.  Bank
National  Association,  as trustee  (the  "Indenture")  as  supplemented  by any
supplemental   indenture  thereto,  has  executed  either  the  Indenture  or  a
supplemental  indenture in  substantially  the form attached on Exhibit E to the
Indenture and has irrevocably and unconditionally guaranteed on a senior secured
basis the  Subsidiary  Guaranty  Obligations  (as defined in Section 11.1 of the
Indenture),  which include (i) the due and punctual payment of the principal of,
premium,  if any,  and Interest and  Liquidated  Damages,  if any, on the 8 3/4%
Senior  Secured  Notes due 2012 (the  "Notes")  of Diamond  Jo,  LLC, a Delaware
limited  liability  company (the "Company") and The Old Evangeline Downs Capital
Corp., a Delaware  corporation  ("Capital" and,  together with the Company,  the
"Issuers,"  which  term  includes  any  successors  under,  and  any  additional
"Issuers"  that may become a party to the  Indenture  hereinafter  referred to),
whether at maturity,  by  acceleration,  call for  redemption,  upon a Change of
Control  Offer,  an Asset Sale Offer,  or  otherwise,  and the due and  punctual
payment of Interest on the overdue  principal  and premium,  if any,  Liquidated
Damages,  if any, and (to the extent permitted by law) interest on any Interest,
if  any,  on the  Notes,  and  the due and  punctual  performance  of all  other
obligations  of the Issuers to the Holders or the Trustee  under the Notes,  the
Indenture,   the  Security  Documents  and  the  Registration  Rights  Agreement
(including  fees,  expenses or other) all in accordance with the terms set forth
in Article XI of the  Indenture,  and (ii) in case of any  extension  of time of
payment or renewal of any Notes or any such other  obligations  under the Noets,
the Indenture, the Security Documents or Registration Rights Agreement, that the
same shall be promptly paid in full when due or performed in accordance with the
terms of the extension or renewal,  whether at stated maturity, by acceleration,
call for  redemption,  upon a Change of Control Offer,  an Asset Sale Offer,  or
otherwise.

      The  obligations  of each  Subsidiary  Guarantor to the Holders and to the
Trustee pursuant to this Subsidiary Guaranty and the Indenture are expressly set
forth in  Article  XI of the  Indenture  and  reference  is hereby  made to such
Indenture for the precise terms of this Subsidiary Guaranty.

      No  director,  officer,  employee,  incorporator,  stockholder,  member or
controlling person of any of the Issuers or any Subsidiary  Guarantor,  as such,
will  have  any  liability  for any  Obligations  of any of the  Issuers  or any
Subsidiary  Guarantor under the Notes, the Indenture,  the Security Documents or
the  Registration  Rights Agreement or for any claim based on, in respect of, or
by reason of, such  Obligations  or their  creation.  Each Holder by accepting a
Note waives and releases all such liability. The waiver and release will be part
of the consideration for issuance of the Notes and the Subsidiary Guaranties.

      This is a  continuing  Subsidiary  Guaranty and shall remain in full force
and  effect  and  shall  be  binding  upon  each  Subsidiary  Guarantor  and its
successors and assigns

                                      A-18
<PAGE>

      until full and final payment of all of the Issuers'  obligations under the
Notes and Indenture or until released or legally defeased in accordance with the
Indenture  and shall inure to the benefit of the  successors  and assigns of the
Trustee and the  Holders,  and, in the event of any  transfer or  assignment  of
rights by any Holder or the Trustee,  the rights and privileges herein conferred
upon that party shall  automatically  extend to and be vested in such transferee
or  assignee,  all  subject  to the  terms  and  conditions  hereof.  This  is a
Subsidiary Guaranty of payment and performance and not of collectibility.

      This Subsidiary  Guaranty shall not be valid or obligatory for any purpose
until the certificate of  authentication  on the Note upon which this Subsidiary
Guaranty is noted shall have been executed by the Trustee under the Indenture by
the manual signature of one of its authorized officers.

      The  obligations  of  each  Subsidiary  Guarantor  under  this  Subsidiary
Guaranty  shall be limited to the extent  necessary  to insure  that it does not
constitute a fraudulent conveyance under applicable law.

      THE  TERMS OF  ARTICLE  XI OF THE  INDENTURE  ARE  INCORPORATED  HEREIN BY
REFERENCE.

      Capitalized  terms  used  herein  have  the  same  meanings  given  in the
Indenture unless otherwise indicated.

                            [signature page follows]

                                      A-19
<PAGE>

      IN WITNESS WHEREOF,  each Subsidiary  Guarantor has caused this instrument
to be duly executed.

Dated: _____________

                                        [NAME OF SUBSIDIARY GUARANTOR]

                                        By: _________________________________
                                             Name:
                                             Title:

                                        [NAME OF SUBSIDIARY GUARANTOR]

                                        By: _________________________________
                                             Name:
                                             Title:

                                        [NAME OF SUBSIDIARY GUARANTOR]

                                        By: _________________________________
                                             Name:
                                             Title:

<PAGE>

                                    EXHIBIT B

                         FORM OF CERTIFICATE OF TRANSFER

Diamond Jo, LLC
The Old Evangeline Downs Capital Corp.
400 East Third Street
P.O. Box 1750
Dubuque, Iowa 52004-1750

U.S. Bank National Association
60 Livingston Avenue
St. Paul, MN 55107-2292

      Re: 8 3/4% Senior Secured Notes due 2012

Dear Sirs:

      Reference is hereby made to the Indenture, dated as of April 16, 2004 (the
"Indenture"),  among Diamond Jo, LLC, a Delaware limited  liability company (the
"Company")  and The Old Evangeline  Downs Capital Corp., a Delaware  corporation
("Capital" and,  together with the Company,  the "Issuers,"  which term includes
any successors  under,  and any additional  "Issuers" that may become a party to
the Indenture),  the Subsidiary  Guarantors party thereto and U.S. Bank National
Association,  as trustee.  Capitalized  terms used but not defined  herein shall
have  the  meanings  given  to  them  in  the  Indenture.  ______________,  (the
"Transferor")  owns and  proposes  to  transfer  the Note[s] or interest in such
Note[s]  specified in Annex A hereto, in the principal amount of $___________ in
such Note[s] or interests (the "Transfer"), to __________ (the "Transferee"), as
further  specified  in Annex A hereto.  In  connection  with the  Transfer,  the
Transferor hereby certifies that:

[CHECK ALL THAT APPLY]

1. [ ] CHECK IF TRANSFEREE  SHALL TAKE DELIVERY OF A BENEFICIAL  INTEREST IN THE
144A GLOBAL NOTE OR OF A DEFINITIVE  NOTE PURSUANT TO RULE 144A. The Transfer is
being  effected  pursuant to and in  accordance  with Rule 144A under the United
States  Securities  Act  of  1933,  as  amended  (the  "Securities  Act"),  and,
accordingly,  the  Transferor  hereby  further  certifies  that  the  beneficial
interest or Definitive Note is being transferred to a Person that the Transferor
reasonably  believed  and  believes is  purchasing  the  beneficial  interest or
Definitive Note for its own account, or for one or more accounts with respect to
which such Person exercises sole investment discretion, and such Person and each
such account is a  "qualified  institutional  buyer"  within the meaning of Rule
144A in a transaction meeting the requirements of Rule 144A and such Transfer is
in compliance  with any applicable  blue sky securities laws of any State of the
United States. Upon consummation of the proposed Transfer in accordance with the
terms of the Indenture,  the transferred  beneficial interest or Definitive Note
shall be subject to the restrictions on

                                      B-1
<PAGE>

transfer  enumerated in the Private  Placement Legend printed on the 144A Global
Note and/or the Definitive Note and in the Indenture and the Securities Act.

2. [ ] CHECK IF TRANSFEREE SHALL TAKE  DELIVERY OF A BENEFICIAL  INTEREST IN THE
REGULATION S GLOBAL NOTE OR OF A DEFINITIVE  NOTE  PURSUANT TO REGULATION S. The
Transfer is being effected  pursuant to and in accordance  with Rule 903 or Rule
904 under the Securities  Act and,  accordingly,  the Transferor  hereby further
certifies  that (i) the  Transfer  is not being  made to a person in the  United
States  and (x) at the time the buy order was  originated,  the  Transferee  was
outside the United States or such Transferor and any Person acting on its behalf
reasonably  believed and  believes  that the  Transferee  was outside the United
States or (y) the transaction was executed in, on or through the facilities of a
designated offshore securities market and neither such Transferor nor any Person
acting on its behalf knows that the transaction was prearranged  with a buyer in
the  United  States,  (ii)  no  directed  selling  efforts  have  been  made  in
contravention  of the requirements of Rule 903(b) or Rule 904(b) of Regulation S
under the Securities  Act, (iii) the transaction is not part of a plan or scheme
to evade the  registration  requirements  of the  Securities Act and (iv) if the
proposed  transfer  is being made prior to the  expiration  of the  Distribution
Compliance  Period,  the transfer is not being made to a U.S.  Person or for the
account or benefit of a U.S.  Person (other than an Initial  Purchaser)  and the
interest  transferred shall be held immediately  thereafter through Euroclear or
Clearstream.  Upon  consummation of the proposed transfer in accordance with the
terms of the Indenture,  the transferred  beneficial interest or Definitive Note
shall be subject to the  restrictions  on  Transfer  enumerated  in the  Private
Placement  Legend  printed on the Regulation S Global Note and/or the Definitive
Note and in the Indenture and the Securities Act.

3. [ ] CHECK IF  TRANSFEREE  SHALL TAKE  DELIVERY OF A BENEFICIAL  INTEREST IN A
GLOBAL NOTE OR OF A DEFINITIVE  NOTE PURSUANT TO ANY PROVISION OF THE SECURITIES
ACT OTHER THAN RULE 144A OR  REGULATION  S. The  Transfer  is being  effected in
compliance with the transfer restrictions  applicable to beneficial interests in
Restricted  Global Notes and Restricted  Definitive Notes and pursuant to and in
accordance  with the Securities Act and any applicable  blue sky securities laws
of any State of the United States, and accordingly the Transferor hereby further
certifies that (check one):

      (a) [ ] Such Transfer is being effected pursuant to and in accordance with
      Rule 144 under the Securities Act; or

      (b) [ ] Such  Transfer is being  effected  to the Issuers or a  subsidiary
      thereof; or

      (c)  [ ]  Such  Transfer  is  being  effected  pursuant  to  an  effective
      registration statement under the Securities Act and in compliance with the
      prospectus delivery requirements of the Securities Act; or

      (d) [ ] such  Transfer is being  effected to an  Institutional  Accredited
      Investor and pursuant to an exemption from the  registration  requirements
      of the Securities Act other than Rule 144A,  Rule 144 or Rule 904, and the
      Transferor hereby further certifies that it has not engaged in any general
      solicitation within the

                                      B-2
<PAGE>

      meaning of Regulation D under the Securities Act and the Transfer complies
      with the transfer  restrictions  applicable to  beneficial  interests in a
      Restricted Global Note or Restricted Definitive Notes and the requirements
      of the  exemption  claimed,  which  certification  is  supported  by (1) a
      certificate  executed  by the  Transferee  in a form of  Exhibit  D to the
      Indenture and (2) if such Transfer is in respect of a principal  amount of
      Notes at the time of transfer of less than $250,000, an Opinion of Counsel
      provided  by the  Transferor  or the  Transferee  (a  copy  of  which  the
      Transferor has attached to this certification and provided to the Issuers,
      which has confirmed its  acceptability),  to the effect that such Transfer
      is in compliance with the Securities Act.

      Upon consummation of the proposed transfer in accordance with the terms of
the Indenture,  the transferred  beneficial interest or Definitive Note shall be
subject to the  restrictions  on transfer  enumerated  in the Private  Placement
Legend printed on the  Definitive  Notes and in the Indenture and the Securities
Act.

4. [ ] CHECK IF TRANSFEREE  SHALL TAKE  DELIVERY OF A BENEFICIAL  INTEREST IN AN
UNRESTRICTED GLOBAL NOTE OR OF AN UNRESTRICTED DEFINITIVE NOTE.

      (a) [ ] CHECK IF TRANSFER IS  PURSUANT  TO RULE 144.  (i) The  Transfer is
being effected  pursuant to and in accordance with Rule 144 under the Securities
Act and in compliance with the transfer restrictions  contained in the Indenture
and any applicable  blue sky  securities  laws of any State of the United States
and (ii) the restrictions on transfer contained in the Indenture and the Private
Placement  Legend are not  required  in order to  maintain  compliance  with the
Securities Act. Upon  consummation  of the proposed  Transfer in accordance with
the terms of the Indenture,  the transferred  beneficial  interest or Definitive
Note shall no longer be subject to the  restrictions  on transfer  enumerated in
the  Private  Placement  Legend  printed  on the  Restricted  Global  Notes,  on
Restricted Definitive Notes and in the Indenture and the Securities Act.

      (b) [ ] CHECK IF TRANSFER IS PURSUANT TO REGULATION S. (i) The Transfer is
being effected pursuant to and in accordance with Rule 903 or Rule 904 under the
Securities Act and in compliance with the transfer restrictions contained in the
Indenture and any applicable blue sky securities laws of any State of the United
States and (ii) the restrictions on transfer  contained in the Indenture and the
Private  Placement Legend are not required in order to maintain  compliance with
the Securities  Act. Upon  consummation  of the proposed  Transfer in accordance
with  the  terms  of the  Indenture,  the  transferred  beneficial  interest  or
Definitive  Note  shall no longer be  subject to the  restrictions  on  transfer
enumerated in the Private  Placement  Legend  printed on the  Restricted  Global
Notes,  on Restricted  Definitive  Notes and in the Indenture and the Securities
Act.

      (c) [ ] CHECK IF TRANSFER IS PURSUANT TO OTHER EXEMPTION. (i) The Transfer
is being  effected  pursuant to and in  compliance  with an  exemption  from the
registration requirements of the Securities Act other than Rule 144, Rule 903 or
Rule 904 and in  compliance  with the  transfer  restrictions  contained  in the
Indenture and any applicable blue sky securities laws of any State of the United
States and (ii) the

                                      B-3
<PAGE>

restrictions  on transfer  contained in the Indenture and the Private  Placement
Legend are not required in order to maintain compliance with the Securities Act.
Upon  consummation of the proposed  Transfer in accordance with the terms of the
Indenture,  the transferred  beneficial interest or Definitive Note shall not be
subject to the  restrictions  on transfer  enumerated  in the Private  Placement
Legend printed on the Restricted Global Notes or Restricted Definitive Notes and
in the Indenture.

                            [signature page follows]

                                      B-4
<PAGE>

This  certificate and the statements  contained herein are made for your benefit
and the benefit of the Issuers.

_______________________________             Dated: ____________________________
[Insert Name of Transferor]

By: ____________________________
  Name:
  Title:

                                      B-5
<PAGE>

                       ANNEX A TO CERTIFICATE OF TRANSFER

1. The Transferor owns and proposes to transfer the following:

[[CHECK ONE OF (a) OR (b)]

     (a)       [ ]   a beneficial interest in

        (i)    [ ]   144A Global Note, or

        (ii)   [ ]   501 Global Note, or

        (iii)  [ ]   Reg S Global Note; or

     (b)       [ ]   a Restricted Definitive Note.

2. After the Transfer the Transferee shall hold:

[CHECK ONE]

     (a)       [ ]   a beneficial interest in the:

        (i)    [ ]   144A Global Note, or

        (ii)   [ ]   501 Global Note, or

        (iii)  [ ]   Reg S Global Note,

        (iv)   [ ]   Unrestricted Global Note; or

     (b)       [ ]   a Restricted Definitive Note; or

     (c)       [ ]   an Unrestricted Definitive Note,

in accordance with the terms of the Indenture.

                                      B-6
<PAGE>

                                    EXHIBIT C

                         FORM OF CERTIFICATE OF EXCHANGE

Diamond Jo, LLC
The Old Evangeline Downs Capital Corp.
400 East Third Street
P.O. Box 1750
Dubuque, Iowa 52004-1750

U.S. Bank National Association
60 Livingston Avenue
St. Paul, MN 55107-2292

      Re: 8 3/4% Senior Secured Notes due 2012

Dear Sirs:

      Reference is hereby made to the Indenture, dated as of April 16, 2004 (the
"Indenture"), between Diamond Jo, LLC, a Delaware limited liability company (the
"Company")  and The Old Evangeline  Downs Capital Corp., a Delaware  corporation
("Capital" and,  together with the Company,  the "Issuers,"  which term includes
any successors  under,  and any additional  "Issuers" that may become a party to
the Indenture),  the Subsidiary  Guarantors party thereto and U.S. Bank National
Association,  as trustee.  Capitalized  terms used but not defined  herein shall
have the meanings given to them in the Indenture.

      ____________,  (the  "Owner") owns and proposes to exchange the Note[s] or
interest  in  such  Note[s]   specified  herein,  in  the  principal  amount  of
$____________ in such Note[s] or interests (the "Exchange").  In connection with
the Exchange, the Owner hereby certifies that:

EXCHANGE OF RESTRICTED  DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN A RESTRICTED
GLOBAL NOTE FOR  UNRESTRICTED  DEFINITIVE  NOTES OR  BENEFICIAL  INTERESTS IN AN
UNRESTRICTED GLOBAL NOTE.

      (a) [ ] CHECK IF EXCHANGE  IS FROM  BENEFICIAL  INTEREST  IN A  RESTRICTED
GLOBAL NOTE TO BENEFICIAL INTEREST IN AN UNRESTRICTED GLOBAL NOTE. In connection
with the Exchange of the Owner's beneficial interest in a Restricted Global Note
for a beneficial  interest in an Unrestricted  Global Note in an equal principal
amount, the Owner hereby certifies (i) the beneficial interest is being acquired
for the  Owner's own  account  without  transfer,  (ii) such  Exchange  has been
effected  in  compliance  with  the  transfer  restrictions  applicable  to  the
Restricted Global Notes and pursuant to and in accordance with the United States
Securities  Act  of  1933,  as  amended  (the  "Securities   Act"),   (iii)  the
restrictions  on transfer  contained in the Indenture and the Private  Placement
Legend are not required in order to maintain  compliance with the Securities

                                      C-1
<PAGE>

Act and (iv) the  beneficial  interest in an  Unrestricted  Global Note is being
acquired in compliance with any applicable blue sky securities laws of any State
of the United States.

      (b) [ ] CHECK IF EXCHANGE  IS FROM  BENEFICIAL  INTEREST  IN A  RESTRICTED
GLOBAL NOTE TO UNRESTRICTED  DEFINITIVE NOTE. In connection with the Exchange of
the Owner's beneficial  interest in a Restricted Global Note for an Unrestricted
Definitive  Note, the Owner hereby  certifies (i) the  Definitive  Note is being
acquired for the Owner's own account  without  transfer,  (ii) such Exchange has
been effected in  compliance  with the transfer  restrictions  applicable to the
Restricted  Global Notes and pursuant to and in accordance  with the  Securities
Act,  (iii) the  restrictions  on transfer  contained in the  Indenture  and the
Private  Placement Legend are not required in order to maintain  compliance with
the Securities Act and (iv) the  Unrestricted  Definitive Note is being acquired
in compliance  with any applicable  blue sky securities laws of any State of the
United States.

      (c) [ ] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO BENEFICIAL
INTEREST IN AN UNRESTRICTED GLOBAL NOTE. In connection with the Owner's Exchange
of a Restricted  Definitive  Note for a beneficial  interest in an  Unrestricted
Global Note,  the Owner hereby  certifies (i) the  beneficial  interest is being
acquired for the Owner's own account  without  transfer,  (ii) such Exchange has
been  effected  in  compliance  with the  transfer  restrictions  applicable  to
Restricted  Definitive  Notes  and  pursuant  to  and  in  accordance  with  the
Securities Act, (iii) the  restrictions  on transfer  contained in the Indenture
and the  Private  Placement  Legend  are  not  required  in  order  to  maintain
compliance  with the Securities  Act and (iv) the  beneficial  interest is being
acquired in compliance with any applicable blue sky securities laws of any State
of the United States.

      (d)  [  ]  CHECK  IF  EXCHANGE  IS  FROM  RESTRICTED  DEFINITIVE  NOTE  TO
UNRESTRICTED  DEFINITIVE  NOTE.  In  connection  with the Owner's  Exchange of a
Restricted Definitive Note for an Unrestricted Definitive Note, the Owner hereby
certifies (i) the Unrestricted Definitive Note is being acquired for the Owner's
own account without transfer, (ii) such Exchange has been effected in compliance
with the transfer  restrictions  applicable to Restricted  Definitive  Notes and
pursuant to and in accordance with the Securities Act, (iii) the restrictions on
transfer  contained in the  Indenture and the Private  Placement  Legend are not
required in order to maintain  compliance  with the  Securities Act and (iv) the
Unrestricted Definitive Note is being acquired in compliance with any applicable
blue sky securities laws of any State of the United States.

      2. EXCHANGE OF  RESTRICTED  DEFINITIVE  NOTES OR  BENEFICIAL  INTERESTS IN
RESTRICTED GLOBAL NOTES FOR RESTRICTED  DEFINITIVE NOTES OR BENEFICIAL INTERESTS
IN RESTRICTED GLOBAL NOTES.

      (a) [ ] CHECK IF EXCHANGE  IS FROM  BENEFICIAL  INTEREST  IN A  RESTRICTED
GLOBAL NOTE TO RESTRICTED  DEFINITIVE  NOTE. In connection  with the Exchange of
the Owner's  beneficial  interest in a  Restricted  Global Note for a Restricted
Definitive Note with an equal principal amount,  the Owner hereby certifies that
(i) the Restricted Definitive Note is being acquired for the Owner's own account
without transfer and (ii)

                                      C-2
<PAGE>

such  Exchange has been effected in  compliance  with the transfer  restrictions
applicable to the Restricted Global Notes and pursuant to and in accordance with
the Securities  Act, and in compliance  with any applicable  blue sky securities
laws of any  State of the  United  States.  Upon  consummation  of the  proposed
Exchange  in  accordance  with  the  terms  of  the  Indenture,  the  Restricted
Definitive  Note  issued  shall  continue to be subject to the  restrictions  on
transfer  enumerated in the Private  Placement  Legend printed on the Restricted
Definitive Note and in the Indenture and the Securities Act.

      (b) [ ] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO BENEFICIAL
INTEREST IN A RESTRICTED  GLOBAL NOTE.  In  connection  with the Exchange of the
Owner's Restricted Definitive Note for a beneficial interest in the: [CHECK ONE]
[ ] 144A  Global  Note,  [ ] Reg S Global  Note,  or [ ] 501 Global Note with an
equal principal amount,  the Owner hereby certifies (i) the beneficial  interest
is being  acquired  for the Owner's own account  without  transfer and (ii) such
Exchange  has  been  effected  in  compliance  with  the  transfer  restrictions
applicable to the Restricted Global Notes and pursuant to and in accordance with
the Securities  Act, and in compliance  with any applicable  blue sky securities
laws of any  State of the  United  States.  Upon  consummation  of the  proposed
Exchange in accordance with the terms of the Indenture,  the beneficial interest
issued  shall be subject  to the  restrictions  on  transfer  enumerated  in the
Private  Placement Legend printed on the relevant  Restricted Global Note and in
the Indenture and the Securities Act.

                            [signature page follows]

                                      C-3
<PAGE>

This  certificate and the statements  contained herein are made for your benefit
and the benefit of the Issuers.

______________________________
[Insert Name of Owner]

By:___________________________
  Name:
  Title:

Dated:__________________

                                      C-4
<PAGE>

                                    EXHIBIT D

                       FORM OF CERTIFICATE FROM ACQUIRING
                        INSTITUTIONAL ACCREDITED INVESTOR

Diamond Jo, LLC
The Old Evangeline Downs Capital Corp.
400 East Third Street
P.O. Box 1750
Dubuque, Iowa 52004-1750

U.S. Bank National Association
60 Livingston Avenue
St. Paul, MN 55107-2292

      Re: 8 3/4% Senior Secured Notes due 2012

Dear Sirs:

      Reference is hereby made to the Indenture, dated as of April 16, 2004 (the
"Indenture"), between Diamond Jo, LLC, a Delaware limited liability company (the
"Company")  and The Old Evangeline  Downs Capital Corp., a Delaware  corporation
("Capital" and,  together with the Company,  the "Issuers,"  which term includes
any successors  under,  and any additional  "Issuers" that may become a party to
the Indenture),  the Subsidiary  Guarantors party thereto and U.S. Bank National
Association,  as trustee.  Capitalized  terms used but not defined  herein shall
have the meanings given to them in the Indenture.

      In  connection  with our  proposed  purchase  of  $____________  aggregate
principal  amount of:  (a) a  beneficial  interest  in a Global  Note,  or (b) a
Definitive Note, we confirm that:

1.    We  understand  and  acknowledge  that the Notes have not been  registered
      under the Securities Act of 1933, as amended (the  "Securities  Act"),  or
      any other  applicable  securities  law,  are being  offered  for resale in
      transactions  not requiring  registration  under the Securities Act or any
      other  securities law,  including  resales pursuant to Rule 144A under the
      Securities  Act ("Rule 144A"),  and may not be offered,  sold or otherwise
      transferred except in compliance with the registration requirements of the
      Securities  Act or any other  applicable  securities  law,  pursuant to an
      exemption  therefrom and in each case in compliance  with the transfer set
      forth below.

2.    We are an  institutional  "accredited  investor"  under the Securities Act
      within the meaning of  subparagraph  (a) (1),  (2), (3) or (7) of Rule 501
      under the Securities Act (an "Accredited  Investor") and, if the Notes are
      to be purchased for one or more accounts  ("investor  accounts") for which
      we are acting as  fiduciary  or agent,  each such  investor  account is an
      Accredited Investor on a like basis. We have such knowledge and

                                      D-1
<PAGE>

      experience  in  financial  and  business  matters  as  to  be  capable  of
      evaluating  the merits and risks of purchasing  the Notes and invest in or
      purchase  securities  similar  to the  Notes in the  normal  course of our
      business.  We and any  investor  accounts for which we are acting are each
      aware that we may be  required,  and are each able,  to bear the  economic
      risk of our or its  investment  in the Notes for an  indefinite  period of
      time,  including  the  risk of an  entire  loss  of our or  such  investor
      account's investment in the Notes.

3.    We are  purchasing  the  Notes  for  our own  account,  or for one or more
      investor accounts for which we are acting as a fiduciary or agent, in each
      case  for  investment,  and not with a view  to,  or for  offer or sale in
      connection with, any  distribution  thereof in violation of the Securities
      Act,  subject  to any  requirement  of law  that  the  disposition  of our
      property or the  property of such  investor  account or accounts be at all
      times within our or their  control and subject to our or their  ability to
      resell such Notes pursuant to Rule 144A or any exemption from registration
      available under the Securities Act.

4.    We agree on our own behalf and on behalf of any investor account for which
      we are purchasing  Notes to offer,  sell or otherwise  transfer such Notes
      prior to the date  which is two  years  (or  such  other  period  that may
      hereafter  be  provided  under Rule  144(k)  under the  Securities  Act as
      permitting  resales of  restricted  securities by  non-affiliates  without
      restriction)  after the later of the date of  original  issue and the last
      date on which  either of the Issuers or any  affiliate  of the Issuers was
      the  owner  of  such  Notes  (or any  predecessor  thereof)  (the  "Resale
      Restriction  Termination  Date")  only (a) to either of the  Issuers,  (b)
      pursuant to a  registration  statement  which has been declared  effective
      under the  Securities  Act,  (c) for so long as the Notes are eligible for
      resale  pursuant  to Rule  144A to a person  we  reasonably  believe  is a
      "qualified  institutional  buyer" as defined  in Rule 144A (a "QIB")  that
      purchases  for its own  account  or for the  account  of a QIB and to whom
      notice is given that the  transfer is being made in reliance on Rule 144A,
      (d) pursuant to offers and sales to Non-U.S. purchasers that occur outside
      the United States in  accordance  with  Regulation S under the  securities
      act, (e) to an Accredited Investor that is acquiring the Notes for its own
      account, or for the account of such an Accredited Investor, for investment
      purposes, and not with a view to, or for offer or sale in connection with,
      any  distribution  in violation of the Securities  Act, or (f) pursuant to
      another  available  exemption from the  registration  requirements  of the
      Securities Act,  subject in each of the foregoing cases to any requirement
      of law  that the  disposition  of our  property  or the  property  of such
      investor  account or accounts be at all times within our or their  control
      and in each case in compliance with any applicable  securities laws of any
      U.S.   state  or  any  other   applicable   jurisdiction.   The  foregoing
      restrictions on resale will not apply subsequent to the Resale Restriction
      Termination Date. If any resale or other transfer of the Notes is proposed
      to be made  pursuant to clause (d) above  prior to the Resale  Restriction
      Termination   Date,  the  transferor  shall  deliver  a  letter  from  the
      transferee substantially in the form of this letter to the Issuers and the
      Trustee,  which shall provide,  among other things, that the transferee is
      an Accredited  Investor and that it is acquiring such Notes for investment
      purposes and not for distribution in violation of the Securities Act. Each
      purchaser  acknowledges that the Issuers and the Trustee reserve the right
      prior to the offer, sale or other transfer made

                                      D-2
<PAGE>

      prior to the Resale  Termination  Date pursuant to clause (e) or (f) above
      to require the  delivery of an opinion of counsel,  certifications  and/or
      other information satisfactory to each of them.

5.    We understand that the Notes will be delivered in registered form only and
      that the certificates delivered to us in respect of the Notes will contain
      a legend substantially to the following effect:

      THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS. NEITHER THIS
      SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED,  SOLD,
      ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE
      ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR
      NOT SUBJECT TO, REGISTRATION.

      THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL
      OR OTHERWISE TRANSFER THIS SECURITY,  PRIOR TO THE DATE WHICH IS TWO YEARS
      (OR SUCH OTHER  PERIOD THAT MAY  HEREAFTER  BE PROVIDED  UNDER RULE 144(k)
      UNDER THE SECURITIES ACT AS PERMITTING RESALES OF RESTRICTED SECURITIES BY
      NON-AFFILIATES  WITHOUT RESTRICTION) AFTER THE LATER OF THE ORIGINAL ISSUE
      DATE HEREOF AND THE LAST DATE ON WHICH THE ISSUERS OR ANY AFFILIATE OF THE
      ISSUERS  WAS THE  OWNER  OF THIS  SECURITY  (OR  ANY  PREDECESSOR  OF THIS
      SECURITY)  (THE  "RESALE  RESTRICTION  TERMINATION  DATE") ONLY (A) TO THE
      ISSUERS, (B) PURSUANT TO A REGISTRATION  STATEMENT WHICH HAS BEEN DECLARED
      EFFECTIVE  UNDER THE  SECURITIES  ACT, (C) FOR SO LONG AS THIS SECURITY IS
      ELIGIBLE FOR RESALE  PURSUANT TO RULE 144A UNDER THE SECURITIES  ACT, TO A
      PERSON IT  REASONABLY  BELIEVES IS A  "QUALIFIED  INSTITUTIONAL  BUYER" AS
      DEFINED IN RULE 144A UNDER THE  SECURITIES  ACT THAT PURCHASES FOR ITS OWN
      ACCOUNT OR FOR THE  ACCOUNT  OF A  QUALIFIED  INSTITUTIONAL  BUYER TO WHOM
      NOTICE IS GIVEN THAT THE  TRANSFER  IS BEING MADE IN RELIANCE ON RULE 144A
      UNDER THE  SECURITIES  ACT,  (D)  PURSUANT TO OFFERS AND SALES TO NON-U.S.
      PURCHASERS  THAT  OCCUR  OUTSIDE  THE  UNITED  STATES IN  ACCORDANCE  WITH
      REGULATION S UNDER THE SECURITIES ACT, (E) TO AN INSTITUTIONAL "ACCREDITED
      INVESTOR"  WITHIN THE MEANING OF SUBPARAGRAPH  (a) (1), (2), (3) OR (7) OF
      RULE 501 UNDER THE  SECURITIES ACT THAT IS ACQUIRING THIS SECURITY FOR ITS
      OWN  ACCOUNT,  OR FOR THE  ACCOUNT  OF SUCH AN  INSTITUTIONAL  "ACCREDITED
      INVESTOR," FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR
      SALE IN CONNECTION  WITH, ANY  DISTRIBUTION IN VIOLATION OF THE SECURITIES
      ACT OR (F) PURSUANT TO ANOTHER  AVAILABLE  EXEMPTION FROM THE REGISTRATION
      REQUIREMENTS  OF THE  SECURITIES  ACT,  SUBJECT  TO THE  ISSUERS'  AND THE
      TRUSTEE'S RIGHT

                                      D-3
<PAGE>

      PRIOR TO ANY SUCH OFFER,  SALE OR TRANSFER  PURSUANT TO CLAUSE (D), (E) OR
      (F) TO REQUIRE  THE  DELIVERY  OF AN OPINION  OF  COUNSEL,  CERTIFICATIONS
      AND/OR OTHER INFORMATION  SATISFACTORY TO EACH OF THEM, AND IN EACH OF THE
      FOREGOING  CASES,  A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THIS
      SECURITY IS COMPLETED AND  DELIVERED BY THE  TRANSFEROR TO THE TRUSTEE AND
      IN EACH CASE IN ACCORDANCE  WITH  APPLICABLE  SECURITIES  LAWS OF ANY U.S.
      STATE OR ANY OTHER APPLICABLE JURISDICTION.

6.    If we are  acquiring  any of the Notes as a fiduciary  or agent for one or
      more  investor  accounts,  we  represent  that  we  have  sole  investment
      discretion  with  respect to each such  account  and we have full power to
      make  the  foregoing  representations,   warranties,  acknowledgments  and
      agreements on behalf of each such investor account.

      THIS LETTER SHALL BE GOVERNED BY, AND  CONSTRUED IN ACCORDANCE  WITH,  THE
LAWS OF THE STATE OF NEW YORK  APPLICABLE TO CONTRACTS  MADE AND TO BE PERFORMED
IN NEW  YORK,  INCLUDING,  WITHOUT  LIMITATION,  SECTION  5-1401 OF THE NEW YORK
GENERAL OBLIGATIONS LAW.

                            [signature page follows]

                                      D-4
<PAGE>

      You and  the  Issuers  are  entitled  to rely  upon  this  letter  and are
irrevocably authorized to produce this letter or a copy hereof to any interested
party in any  administrative  or legal  proceedings  or  official  inquiry  with
respect to the matters covered hereby.

_______________________________           Dated: __________________, ____
[Insert Name of Accredited Investor]

By:________________________________
Name:
Title:

                                      D-5
<PAGE>

                                    EXHIBIT E
                         FORM OF SUPPLEMENTAL INDENTURE
                          TO BE DELIVERED BY SUBSEQUENT
                              SUBSIDIARY GUARANTORS

      Supplemental Indenture (this "Supplemental Indenture"),  dated as of ____,
among  ___________________ (the "Guaranteeing  Subsidiary"),  Diamond Jo, LLC, a
Delaware limited  liability company (the "Company") and The Old Evangeline Downs
Capital Corp., a Delaware corporation ("Capital" and, together with the Company,
the  "Issuers,"  which term includes any  successors  under,  and any additional
"Issuers" that may become a party to the Indenture hereinafter referred to), and
U.S. Bank National Association, as trustee under the Indenture referred to below
(the "Trustee").

                               W I T N E S S E T H

      WHEREAS,  the Issuers and the Subsidiary  Guarantors (as defined  therein)
have  heretofore  executed  and  delivered  to the  Trustee  an  indenture  (the
"Indenture"),  dated as of April 16, 2004,  providing for the issuance of 8 3/4%
Senior Secured Notes due 2012 (the "Notes");

      WHEREAS,  the  Indenture  provides that under  certain  circumstances  the
Guaranteeing  Subsidiary shall execute and deliver to the Trustee a supplemental
indenture  and a  Subsidiary  Guaranty  in the form of Annex A to the  Indenture
endorsed on the Notes pursuant to which it shall unconditionally guaranty all of
the  Issuers'  obligations  under the Notes and the  Indenture  on the terms and
conditions set forth herein (the "Subsidiary Guaranty"); and

      WHEREAS,  pursuant  to  Section  9.1  of the  Indenture,  the  Trustee  is
authorized to execute and deliver this Supplemental Indenture.

      NOW THEREFORE,  in  consideration  of the foregoing and for other good and
valuable  consideration,  the  receipt  of which  is  hereby  acknowledged,  the
Guaranteeing  Subsidiary  and the Trustee  mutually  covenant  and agree for the
equal and ratable benefit of the Holders of the Notes as follows:

      1. Capitalized  Terms.  Capitalized  terms used herein without  definition
shall have the meanings assigned to them in the Indenture.

      2.  Joinder to  Indenture.  Each of the parties  hereto  hereby  agrees to
become bound by the terms, conditions and other provisions of the Indenture with
all attendant rights, duties and obligations stated therein, with the same force
and effect as if originally  named as a Subsidiary  Guarantor  therein and as if
such party executed the Indenture on the date thereof.

      3.  Agreement  to  Subsidiary   Guaranty.   The  Guaranteeing   Subsidiary
irrevocably and unconditionally  guarantees the Subsidiary Guaranty Obligations,
which include (i) the due and punctual payment of the principal of, premium,  if
any, and interest

                                      E-1
<PAGE>

and  Liquidated  Damages,  if  any,  on  the  Notes,  whether  at  maturity,  by
acceleration, call for redemption, upon a Change of Control Offer, an Asset Sale
Offer,  or  otherwise,  the due and punctual  payment of interest on the overdue
principal and premium,  if any, and (to the extent permitted by law) interest on
any  interest on the Notes,  and payment of  expenses,  and the due and punctual
performance  of all other  obligations  of the  Issuers,  to the  Holders or the
Trustee  under  the  Notes,  the  Indenture,  the  Security  Documents  and  the
Registration  Rights  Agreement  (including  fees and  expenses or other) all in
accordance with the terms set forth in Article XI of the Indenture,  and (ii) in
case of any  extension  of time of  payment  or renewal of any Notes or any such
other obligations under the Notes, the Indenture, the Security Documents and the
Registration Rights Agreement, that the same shall be promptly paid in full when
due or  performed  in  accordance  with the terms of the  extension  or renewal,
whether at stated maturity, by acceleration,  call for redemption, upon a Change
of Control Offer, an Asset Sale Offer, or otherwise.

      The  obligations  of  Guaranteeing  Subsidiary  to the  Holders and to the
Trustee pursuant to this Subsidiary Guaranty and the Indenture are expressly set
forth in  Article  X of the  Indenture  and  reference  is  hereby  made to such
Indenture for the precise terms of this Subsidiary Guaranty.

      No  director,  officer,  employee,  incorporator,  stockholder,  member or
controlling person of any of the Issuers or any Subsidiary  Guarantor,  as such,
will  have  any  liability  for any  Obligations  of any of the  Issuers  or any
Subsidiary  Guarantor under the Notes, the Indenture,  the Security Documents or
the  Registration  Rights Agreement or for any claim based on, in respect of, or
by reason of, such  Obligations  or their  creation.  Each Holder by accepting a
Note waives and releases all such liability. The waiver and release will be part
of the consideration for issuance of the Notes and the Subsidiary Guaranties.

      This is a  continuing  Subsidiary  Guaranty and shall remain in full force
and  effect  and  shall be  binding  upon the  Guaranteeing  Subsidiary  and its
successors  and  assigns  until full and final  payment  of all of the  Issuers'
obligations  under the Notes and Indenture or until released in accordance  with
the  Indenture and shall inure to the benefit of the  successors  and assigns of
the Trustee and the Holders,  and, in the event of any transfer or assignment of
rights by any Holder or the Trustee,  the rights and privileges herein conferred
upon that party shall  automatically  extend to and be vested in such transferee
or  assignee,  all  subject  to the  terms  and  conditions  hereof.  This  is a
Subsidiary Guaranty of payment and performance and not of collectibility.

      The  obligations  of the  Guaranteeing  Subsidiary  under  its  Subsidiary
Guaranty  shall be limited to the extent  necessary  to insure  that it does not
constitute a fraudulent conveyance under applicable law.

      THE  TERMS OF  ARTICLE  XI OF THE  INDENTURE  ARE  INCORPORATED  HEREIN BY
REFERENCE.

      4. NEW YORK LAW TO GOVERN AND CONSENT TO JURISDICTION.  THIS INDENTURE AND
THE NOTES SHALL BE GOVERNED BY, AND  CONSTRUED IN ACCORDANCE  WITH,  THE LAWS OF
THE STATE OF NEW

                                      E-2
<PAGE>

YORK  APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN THE STATE OF NEW YORK,
INCLUDING,  WITHOUT  LIMITATION,  SECTIONS  5-1401  AND  5-1402  OF THE NEW YORK
GENERAL  OBLIGATIONS  LAW AND NEW YORK  CIVIL  PRACTICE  LAWS AND RULES  327(B);
PROVIDED, THAT WITH RESPECT TO THE CREATION, ATTACHMENT,  PERFECTION,  PRIORITY,
ENFORCEMENT  OF AND  REMEDIES  RELATING  TO THE  SECURITY  INTEREST  IN ANY REAL
PROPERTY  COLLATERAL,  THE  GOVERNING  LAW MAY BE THE LAWS OF THE  JURISDICTIONS
WHERE  SUCH  COLLATERAL  IS  LOCATED  WITHOUT  REGARD  TO  THE  CONFLICT  OF LAW
PROVISIONS THEREOF.

      JUDICIAL  PROCEEDINGS  BROUGHT  AGAINST ANY OF THE  ISSUERS OR  GUARANTORS
ARISING OUT OF OR RELATING  HERETO OR ANY OF THE SECURITY  DOCUMENTS,  OR ANY OF
THE  OBLIGATIONS,  MAY BE  BROUGHT IN ANY STATE OR  FEDERAL  COURT OF  COMPETENT
JURISDICTION  IN THE  STATE,  COUNTY  AND CITY OF NEW  YORK.  BY  EXECUTING  AND
DELIVERING  THIS  AGREEMENT,  EACH  ISSUER  OR  GUARANTOR,  FOR  ITSELF  AND  IN
CONNECTION WITH ITS PROPERTIES, IRREVOCABLY SUBMITS TO AND ACCEPTS GENERALLY AND
UNCONDITIONALLY THE NONEXCLUSIVE  JURISDICTION AND VENUE OF SUCH COURTS;  WAIVES
ANY DEFENSE OF FORUM NON  CONVENIENS;  AGREES THAT SERVICE OF ALL PROCESS IN ANY
SUCH  PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED  MAIL,
RETURN RECEIPT  REQUESTED,  TO THE APPLICABLE ISSUER OR GUARANTOR AT ITS ADDRESS
PROVIDED IN ACCORDANCE  WITH SECTION 12.3 OF THE INDENTURE;  AGREES THAT SERVICE
AS  PROVIDED  ABOVE IS  SUFFICIENT  TO  CONFER  PERSONAL  JURISDICTION  OVER THE
APPLICABLE  ISSUER OR GUARNATOR IN ANY SUCH  PROCEEDING  IN ANY SUCH COURT,  AND
OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT; AND AGREES
THE TRUSTEE RETAINS THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER  PERMITTED BY
LAW OR TO BRING  PROCEEDINGS  AGAINST  ANY OF THE ISSUERS OR  GUARANTORS  IN THE
COURTS  OF ANY  OTHER  JURISDICTION  HAVING  JURISDICTION  OVER  SUCH  ISSUER OR
GUARANTOR.

      5.  Counterparts.  The  parties  may sign any  number  of  copies  of this
Supplemental  Indenture.  Each signed copy shall be an original, but all of them
together represent the same agreement.

      6. Effect of Headings.  The Section  headings  herein are for  convenience
only and shall not affect the construction hereof.

                            [signature page follows]

                                      E-3
<PAGE>

      IN WITNESS  WHEREOF,  the parties  hereto  have  caused this  Supplemental
Indenture  to be duly  executed  and  attested,  all as of the date first  above
written.

                                        THE ISSUERS:
                                        Diamond Jo, LLC

                                        By: _________________________________
                                             Name:
                                             Title:

                                        The Old Evangeline Downs Capital Corp.

                                        By: _________________________________
                                             Name:
                                             Title:

                                        GUARANTEEING SUBSIDIARY:
                                        NAME:

                                        By: _________________________________
                                             Name:
                                             Title:

                                        THE TRUSTEE:
                                        U.S. Bank National Association

                                        By: _________________________________
                                             Name:
                                             Title:

                                      E-4
<PAGE>

                                    EXHIBIT F

                         FORM OF INTERCREDITOR AGREEMENT

                                   [attached]

                                      F-1
<PAGE>

                                    EXHIBIT G
                         FORM OF SUPPLEMENTAL INDENTURE
                    TO BE DELIVERED BY PENINSULA GAMING, LLC

      Supplemental Indenture (this "Supplemental Indenture"),  dated as of ____,
among Peninsula  Gaming,  LLC, a Delaware limited liability company (the "Parent
Issuer"),  the direct  parent of Diamond Jo, LLC, a Delaware  limited  liability
company (the "Company"), the Company and The Old Evangeline Downs Capital Corp.,
a Delaware corporation  ("Capital" and, together with the Company, the "Original
Issuers"),  and U.S. Bank National  Association,  as trustee under the Indenture
referred to below (the "Trustee").

                               W I T N E S S E T H

      WHEREAS,  the Original  Issuers and the Subsidiary  Guarantors (as defined
therein) have heretofore executed and delivered to the Trustee an indenture (the
"Indenture"),  dated as of April 16, 2004,  providing for the issuance of 8 3/4%
Senior Secured Notes due 2012 (the "Notes");

      WHEREAS,  on the date hereof,  the Parent Issuer, the Original Issuers and
the Guarantors are effecting the  Reorganization  Tranactions (as defined in the
Indenture);

      WHEREAS,  the  Indenture  requires  that  as  part  of the  Reorganization
Transactions  the  Parent  Issuer  execute  and  deliver  to  the  Trustee  this
Supplemental  Indenture pursuant to which the Parent Issuer shall become a party
to the  Indenture  and an  "Issuer"  for  all  purposes  under  the  Notes,  the
Indenture,   the  Security  Documents,   the  Intercreditor  Agreement  and  the
Registration  Rights  Agreement  and liable for all  Obligations  of an "Issuer"
thereunder; and

      WHEREAS,  pursuant  to  Section  9.1  of the  Indenture,  the  Trustee  is
authorized to execute and deliver this Supplemental Indenture.

      NOW THEREFORE,  in  consideration  of the foregoing and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the parties
hereto  mutually  covenant  and agree for the equal and  ratable  benefit of the
Holders of the Notes as follows:

      1. Capitalized  Terms.  Capitalized  terms used herein without  definition
shall have the meanings assigned to them in the Indenture.

      2. Parent Issuer as Additional  "Issuer." The Parent Issuer hereby becomes
a party to and bound by all of the terms, conditions and other provisions of the
Indenture with all attendant rights,  duties and obligations stated therein, and
hereby becomes an "Issuer" for all purposes under the Notes, the Indenture,  the
Security  Documents,  the  Intercreditor  Agreement and the Registration  Rights
Agreement and liable for all  Obligations  of an "Issuer"  thereunder,  with the
same  force and  effect  as if the  Parent  Issuer  was  originally  named as an
"Issuer" in the Indenture and as if the Parent Issuer  executed the Indenture on
the date thereof.

                                      G-1
<PAGE>

      3. Original  Issuers Remain Issuers.  For the avoidance of doubt,  nothing
herein shall or shall be deemed to modify or otherwise affect the Obligations of
the  Original  Issuers or the  Subsidiary  Guarantors  under the the Notes,  the
Indenture,   the  Security  Documents,   the  Intercreditor   Agreement  or  the
Registration  Rights  Agreement,  and the  Original  Issuers  each shall  remain
liable,  jointly and severally with the Parent Issuer, for all Obligations of an
"Issuer" thereunder.

      4. NEW YORK LAW TO GOVERN AND CONSENT TO JURISDICTION.  THIS INDENTURE AND
THE NOTES SHALL BE GOVERNED BY, AND  CONSTRUED IN ACCORDANCE  WITH,  THE LAWS OF
THE STATE OF NEW YORK  APPLICABLE  TO CONTRACTS  MADE AND TO BE PERFORMED IN THE
STATE OF NEW YORK, INCLUDING, WITHOUT LIMITATION,  SECTIONS 5-1401 AND 5-1402 OF
THE NEW YORK GENERAL  OBLIGATIONS LAW AND NEW YORK CIVIL PRACTICE LAWS AND RULES
327(B);  PROVIDED,  THAT WITH RESPECT TO THE CREATION,  ATTACHMENT,  PERFECTION,
PRIORITY,  ENFORCEMENT OF AND REMEDIES  RELATING TO THE SECURITY INTEREST IN ANY
REAL PROPERTY COLLATERAL, THE GOVERNING LAW MAY BE THE LAWS OF THE JURISDICTIONS
WHERE  SUCH  COLLATERAL  IS  LOCATED  WITHOUT  REGARD  TO  THE  CONFLICT  OF LAW
PROVISIONS THEREOF.

      JUDICIAL  PROCEEDINGS  BROUGHT  AGAINST ANY OF THE  ISSUERS OR  GUARANTORS
ARISING OUT OF OR RELATING  HERETO OR ANY OF THE SECURITY  DOCUMENTS,  OR ANY OF
THE  OBLIGATIONS,  MAY BE  BROUGHT IN ANY STATE OR  FEDERAL  COURT OF  COMPETENT
JURISDICTION  IN THE  STATE,  COUNTY  AND CITY OF NEW  YORK.  BY  EXECUTING  AND
DELIVERING  THIS  AGREEMENT,  EACH  ISSUER  OR  GUARANTOR,  FOR  ITSELF  AND  IN
CONNECTION WITH ITS PROPERTIES, IRREVOCABLY SUBMITS TO AND ACCEPTS GENERALLY AND
UNCONDITIONALLY THE NONEXCLUSIVE  JURISDICTION AND VENUE OF SUCH COURTS;  WAIVES
ANY DEFENSE OF FORUM NON  CONVENIENS;  AGREES THAT SERVICE OF ALL PROCESS IN ANY
SUCH  PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED  MAIL,
RETURN RECEIPT  REQUESTED,  TO THE APPLICABLE ISSUER OR GUARANTOR AT ITS ADDRESS
PROVIDED IN ACCORDANCE  WITH SECTION 12.3 OF  INDENTURE;  AGREES THAT SERVICE AS
PROVIDED ABOVE IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER THE APPLICABLE
ISSUER OR  GUARNATOR IN ANY SUCH  PROCEEDING  IN ANY SUCH COURT,  AND  OTHERWISE
CONSTITUTES  EFFECTIVE  AND  BINDING  SERVICE IN EVERY  RESPECT;  AND AGREES THE
TRUSTEE RETAINS THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER  PERMITTED BY LAW
OR TO BRING  PROCEEDINGS  AGAINST ANY OF THE ISSUERS OR GUARANTORS IN THE COURTS
OF ANY OTHER JURISDICTION HAVING JURISDICTION OVER SUCH ISSUER OR GUARANTOR.

      5.  Counterparts.  The  parties  may sign any  number  of  copies  of this
Supplemental  Indenture.  Each signed copy shall be an original, but all of them
together represent the same agreement.

                                      G-2
<PAGE>

6. Effect of Headings.  The Section headings herein are for convenience only and
shall not affect the construction hereof.
                            [signature page follows]

                                      G-3
<PAGE>

      IN WITNESS  WHEREOF,  the parties  hereto  have  caused this  Supplemental
Indenture  to be duly  executed  and  attested,  all as of the date first  above
written.

                                       THE ORIGINAL ISSUERS:
                                       Diamond Jo, LLC

                                       By:_________________________________
                                            Name:
                                            Title:

                                       The Old Evangeline Downs Capital Corp.

                                       By:_________________________________
                                            Name:
                                            Title:

                                       THE PARENT ISSUER:
                                       Peninsula Gaming, LLC

                                       By:_________________________________
                                            Name:
                                            Title:

                                       THE TRUSTEE:
                                       U.S. Bank National Association

                                       By: _________________________________
                                            Name:
                                            Title:

                                      G-4

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