Document:

Exhibit 10.59

   Document AIOVtm-1997

Standard Form of Agreement Between Owner
and Contractor

where the basis of payment
is a STIPULATED SUM

AGREEMENT made as of the 18th day of
August in the year of 2006

(In words, indicate day,
month and year)

BETWEEN the Owner:

(Name, address and other information)

	
  Diamond
  Jo Worth, LLC

  777
  Diamond Jo Lane

  Northwood,
  IA 50459

   

   

  and the
  Contractor:

  (Name,
  address and other information)

   

  Henkel
  Construction Company

  208
  East State Street

  Mason
  City, IA 50401

   

   

  The Project
  is:

  (Name and location)

   

   

  Diamond
  Jo Worth, Expansion Project

  East
  Addition

  Worth
  County, IA

   

   

  The
  Architect is:

  (Name,
  address and other information)

   

  YWS
  Architects

  5005
  West Patrick Lane

  Las
  Vegas, NV 89118

  	
   

  	
  This
  document has important legal consequences. Consultation with an attorney is
  encouraged with respect to its completion or modification.

   

  AIA
  Document A201-1997, General Conditions of the Contract for Construction, is adopted in this document by
  reference. Do not use with other general conditions unless this document is
  modified.

   

  This
  document has been approved and endorsed by The Associated General Contractors of America.

  

 

The Owner and Contractor agree as follows.

 1
 

ARTICLE 1 THE CONTRACT DOCUMENTS

The
Contract Documents consist of this Agreement, Conditions of the Contract
(General, Supplementary and other Conditions), Drawings, Specifications,
Addenda issued prior to execution of this Agreement, other documents listed in
this Agreement and Modifications issued after execution of this Agreement;
these form the Contract, and are as fully a part of the Contract as if attached
to this Agreement or repeated herein. The Contract represents the entire and
integrated agreement between the parties hereto and supersedes prior
negotiations, representations or agreements, either written or oral. An
enumeration of the Contract Documents, other than Modifications, appears in
Article 8.

ARTICLE 2 THE WORK OF THIS
CONTRACT

The
Contractor shall fully execute the Work described in the Contract Documents,
except to the extent specifically indicated in the Contract Documents to be the
responsibility of others.

ARTICLE 3 DATE OF COMMENCEMENT
AND SUBSTANTIAL COMPLETION

§3.1 The date of commencement
of the Work shall be the date of this Agreement unless a different date is
stated below or provision is made for the date to be fixed in a notice to
proceed issued by the Owner.

Date of commencement is
August 21, 2006

If, prior
to the commencement of the Work, the Owner requires time to file mortgages,
mechanic’s liens and other security interests, the Owner’s time requirement shall
be as follows:

§  3.2 The Contract Time shall be
measured from the date of commencement.

§ 3.3 The Contractor shall
achieve substantial Completion of the entire Work not later than 228 days from
the date: Per Article 3.1;

(Insert number  of calendar  days.
Alternatively, a calendar date may be used when coordinated with the date of commencement.
Unless stated elsewhere in the Contract Documents, insert any, requirements for earlier Substantial Completion
of certain portions  of the Work.)

“Substantial Completion” (or similar words such as
“Substantially Complete” and any derivation there of) means that the following
has occurred: The construction of the Project (other than exterior items if
same cannot be completed due to adverse weather conditions) has been completed
in accordance with this contract and the Contract Documents and in substantial
compliance with all legal requirements pertaining  to Contractor’s Work so as to allow the
Project to be utilized for its intended purpose, in each case, as reasonably
determined by the Architect after consultation with the Contractor and the
Owner (but without giving effect to any work to be completed by the Owner or
any other person and/or any work for which the Contractor has no legal
obligation to control, direct contractual relationship with, or responsibility
to complete under the Contract.)

 

§3.3.1 The Contractor shall
achieve Substantial Completion on or before the date which is 228 calender days
after all items in Article 3.1, Paragraph 2 above have been satisfied. The
Contractor acknowledges and agrees that time is of the essence as to such date
of Substantial Completion and the Contractor and the Owner each agree that the
damages to be suffered by the Owner for the Contractor’s failure to achieve
Substantial Completion by said date are not susceptible to calculation.
Accordingly, the Contractor and the Owner agree that the Stipulated Sum shall
be reduced by an amount equal to $10,000 for each day that Substantial
Completion extends beyond said date and the Owner acknowledges such liquidated
damages shall be the only damages to be recovered by the Owner with respect to
failure to achieve Substantial Completion by said date.  Adjustments to the Stipulated Sum as set
forth in this section shall be by change order which shall be prepared by the
Architect for signature by the Owner, the Contractor, and the Architect within
10 days after Substantial Completion.

Portion of Work                                                      Substantial
Completion Date

 2
 

, subject to adjustments
of this Contract Time as provided in the Contract Documents.

(Insert provisions, if any, for liquidated damages
relating to failure to complete on time or for bonus payments for early
completion of the Work.)

ARTICLE 4 CONTRACT SUM

§4.1
The Owner shall pay the Contractor the Contract Sum in current funds for the
Contractor’s performance of the Contract. 
The Contract Sum shall be Twelve-Million-Nine-Hundred-Eighty-Eight
Thousand-Seven Hundred Twenty-Five and no/100 Dollars  ($12,988,725.00), subject to additions and
deductions as provided in the Contract Documents.

 

§4.2
The Contract Sum is based upon the following alternates, if any, which are
described in the Contract Documents and are hereby accepted by the Owner:

 

 

 

None

 

§4.3
Unit prices, if any, are as follows:

                

                Description                                           Units                      Price ($0.00)

 

ARTICLE 5 PAYMENTS                                                                                                                                                  

§5.1 PROGRESS PAYMENTS

§5.1.1
Based upon Applications for Payment submitted to the Architect by the
Contractor and Certificates for Payment issued by  the Architect, the Owner shall make progress
payments on account of the Contract Sum to Contractor as provided below and elsewhere
in the Contract Documents.

 

§5.1.2
The period covered by each Application for Payment shall be one calendar month
ending on the last day of the month, or as follows:

 

 

§5.1.3
Provided that an Application for Payment is received by the Architect not later
than the Tenth day of a month, the Owner shall make payment to the Contractor
not later than the Thirtieth day of the same 
month.  If an Application for
Payment is received by the Architect after the application date fixed above,
payment shall be made by the Owner not later than Twenty (20) days after
approval by the Owner’s project representative or project representative’s
designee.

 

§5.1.4
Each Application for Payment shall be based on the most recent schedule of
values approved by the Contractor, the Architecture, the Owner and the Owner’s
Representative in accordance with the Contract Documents.  The schedule of values shall allocate the entire
Contract Sum among the various portions of the Work.  The schedule of values shall be prepared in
such form and supported by such data to substantiate its accuracy as the
Architect and the Owner’s Representative may require.  This schedule, unless objected to by the
Architect or Owner, shall be used as a basis for reviewing the Contractor’s
Applications for Payment.

 

§5.1.5
Applications for Payment shall indicate the percentage of completion of each
portion of the Work as of the period covered by the Application for Payment.

 

 

 

 

 3
 

§5.1.6 Subject to the other provisions of the
Contract Documents, the amount of each progress payment shall be computed as
follows:

 

.1               Take that poriton of the Contract Sum properly
allocable to completed Work as determined by multiplying the percentage
completion of each portion of the Work by the share of the Contract Sum
allocated to that portion of the Work in the schedule of values, less retainage
of See 5.1.6.5 And 5.1.6.6 Below. 
Pending final determination of cost to the Owner of changes in the Work,
amounts not in dispute shall be included as provided in Section 7.3.8 of AIA
Document A201-1997;

.2               Add that portion of the Contract Sum properly
allocate to materials and equipment delivered and suitably stored at the site
for subsequent incorporation in the completed construction (or, if approved in
advance by the Owner, suitably stored off the site at a location agreed upon in
writing), less retainage of     See
5.1.6.5 And 5.1.6.6 Below;

.3               Subtract the aggregate of previous payments
made by the Owner; and

.4               Subtract amounts, if any, for which the
Architect has withheld or nullified a Certificate for Payment as provided in
Section 9.5 of AIA Document A201-1997.

.5               Retainage withheld on all individual
Subcontractors shall be Ten Percent (10%) until their Subcontracts are
Fifty-Percent (50%) complete after which no further retainage will be held,

.6               Retainage shall be (0%) on all labor,
materials, and equipment, for portions of work performed by Contractor.

.7               Retainage on Contractors fee amount only as
set forth in Schedule of Values shall be 10% of Contractor fee until project is
50% complete after which no further retainage will be held.

§5.1.7 The progress
payment amount determined in accordance with Section 5.1.6 shall be further
modified under the following circumstances:

.1               Add, upon Substantial Completion of the Work,
a sum sufficient to increase the total payments to the full amount of the
Contract Sum, less such amounts as the Architect shall determine for incomplete
Work, retainage applicable to such work and unsettled claims; and  (Section 9.8.5 of AIA
Document A201-1997 requires release of applicable retainage upon Substantial
Completion of Work with consent of surety, if any.)

.2               Add, if final completion of the Work is
thereafter materialy delayed through no fault of the Contractor, any additional
amounts payable in accordance with Section 9.10.3 or AIA Document A201-1997.

§5.1.8 Reduction or
limitation of retainage, if any, shall be as follows:

§5.1.9 Except with the
Owner’s prior approval, the Contractor shall not make advance payments to
suppliers for materials or equipment which have not been delivered and stored
at the site.

§5.2  FINAL PAYMENT

§5.2.1 Final payment,
constituting the entire unpaid balance of the Contract Sum, shall be made by
the Owner to the Contractor when:

 4
 

.1               the Contractor has fully performed the
Contract except for the contractor’s responsibillity to correct Work as
provided in Section 12.2.2 or AIA Document A201-1997, and to satisfy other requirements,
if any, which extend beyond final poayment; and

.2               a final Certificate for Payment has been
issued by the Architect.

§5.2.2 The Owner’s
final payment to the Contractor shall be made no later than 30 dyas after the
issuance of the Architect’s final Certificate for Payment, or as follows:

ARTICLE 6  TERMINATION SUSPENSION

§6.1 The Contract may
be terminated by the Owner or the Contractor as provided in Article 14 or AIA
Document A201-1997.

§6.2 The Work may be
suspended by the Owner as provided in Article 14 or AIA Document A201-1997.

ARTICLE 7 MISCELLANEOUS
PROVISIONS

§7.1 Where reference is made in this Agreement to
a provision of AIA Document A201-1997 or another Contract Document, the
reference refers to that provision as amended or supplemented by other
provisions of the Contract Documents.

 

§7.2 Payments due and unpaid under the Contract
shall bear interest from the date payment is due at the rate stated below, or
in the absence thereof, at the legal rate prevailing from time to time at the place
where the Project is located.

(Insert rate of interest
agreed upon, if any.)

Twelve
percent (12.00%) APR

 

(Usury laws and requirements under the Federal Truth in Lending Act,
similar state and local consumer credit laws and other regulations at the Owner’s
and Contractor’s principal places of business, the location of the Project and
elsewhere may affect the validity of this provision. Legal advice should be
obtained with respect to deletions or modifications, and also regarding requirements
such as written disclosures or waivers.)

 

§7.3 the Owner’s representative is:

(Name, address and other information)

 

Kevin
Fontenot-Executive Director Construction and Development

Diamond
Jo Worth, LLC

777
Diamond Jo Lane

Northwood,
IA 50459

 

§7.4 The Contractor’s representative is:

(Name, address and other information)

 

Alan
Kittleson, Project Manager

Henkel
Construction Company

208
East State Street

Mason
City, IA 50401

 

§7.5 Neither the Owner’s nor the Contractor’s
representative shall be changed without ten days written notice to the other
party.

 

§7.6 Other provisions:

 5
 

See
Attachment “A”-Diamond Jo Worth Expansion Project-East Addition Executed
Stipulated Sum Proposal (the “Proposal”) Dated August 8, 2006. Conflicts among
such Proposal and the other Contract Documents shall be resolved in favor of
the Proposal.

 

See
Exhibit “A”-Insurance, Indemnification, Bonding, and Waiver of Subrogation

 

ARTICLE 8 ENUMERATION OF CONTRACT
DOCUMENTS

§8.1 The Contract Documents, except for
Modifications issued after execution of this Agreement, are enumerated as
follows:

 

§8.1.1 The Agreement is this executed 1997 edition
of the Standard Form of Agreement Between Owner and Contractor, AIA Document
A101-1997.

 

§8.1.2 The General Conditions are the 1997 edition
of the General Conditions of the Contract for Construction, AIA Document
A201-1997.

 

§8.1.3 The Supplementary and other Conditions of the
Contract are those contained in the Project Manual dated           ,
and are as follows

 

Document                                                              Title                                       Pages

None

 

§8.1.4 The Specifications are those contained in the
Project Manual dated as in Section 8.1.3, and are as follows:

(Either list the Specifications here or refer to an exhibit attached to
this Agreement.)

Title
of specifications exhibit:  None

 

§8.1.5 The Drawings are as follows, and are dated               
unless a different date is shown below:

(Either list the Drawings here or refer to an exhibit attached to this
Agreement.)

Title
of Drawings exhibit: See Attachment “A”-Diamond Jo Worth Expansion Project-East
Addition Executed Stipulated Sum Proposal dated August 8, 2006.

 

§8.1.6 The Addenda, if
any, are as follows:

Number                                                 Date                                        Pages

None

 

Portions
of Addenda relating to bidding requirements are not part of the Contract
Documents unless the bidding requirements are also enumerated in this Article
8.

 

§8.1.7 Other documents, if any, forming part of the
Contract Documents are as follows:

 

See
Attachment “A”-Diamond Jo Worth Expansion Project-East Addition Executed
Stipulated Sum Proposal Dated August 8, 2006.

 

See
Exhibit “A”-Insurance, Idemnification, Bonding, and Waiver of Subrogation

 6
 

This
Agreement is entered of the day and year first written above and is executed in
at least three origional copies, or which one is to be delivered to the
Contractor, one to the Architect for use in the administration of the Contract,
and the remainder to the Owner.

 

	
  /s/ Kevin B Fontenot

  	
   

  	
   

  	
  /s/ Thomas R. Schaefer

  
	
  OWNER (Signature)

  	
   

  	
   

  	
  CONTRACTOR (Signature)

  
	
   

  	
   

  	
   

  
	
  Kevin B. Fontenot

  	
   

  	
   

  	
  Thomas R. Schaefer, President

  
	
  (Printed
  name and title)

  	
   

  	
  (Printed name and title)

  
	
  Ex. Dir.
  Dev./Const.

  	
   

  	
   

  

 

 7

	
  

  	
  208 East State Street, P.O. Box 920

  
	
   

  	
  Mason City, Iowa 50402-0920

  
	
   

  	
  641-423-5674 641-423-9244 fax

  
	
   

  	
  www.henkelconstruction.com

  
	
   

  	
   

  

Attachment “A”

Diamond Jo Worth Expansion Project

East Addition

Executed Stipulated Sum Proposal

August 8, 2006

 

August 8, 2006

Mr. Michael Luzich

Diamond Jo Worth, LLC

777 Diamond Jo Lane

Northwood, IA 50459

 

	
  SUBJECT:

  	
  Stipulated Sum Price Proposal

  
	
   

  	
  Diamond Jo Worth Casino East Expansion

  
	
   

  	
  Worth County, IA

  

 

Dear Michael:

 

Our stipulated sum price
for the East Expansion to the Diamond Jo Worth Casino in Worth County, IA is
$12,988,725.00.  In addition, we propose
that Henkel Construction Company’s Substantial Completion for the project’s
east addition phase will be achieved 228 calendar days after August 21, 2006,
based upon authorization of this letter by August 8, 2006 and receiving
completed design information as detailed below. 
Liquidated Damages shall be at the rate of $10,000.00 per day.  The west addition will start after the east
addition with individual construction sequences flowing from east to west
sequentially.  Substantial Completion of
the west addition will follow Substantial completion of the east and will occur
248 calendar days from August 21, 2006 based upon Owner’s authorization to
proceed by August 21, 2006 and the scheduled design delivery dates listed
below:

·                                          Structural
steel frame and metal deck- East Shell Space Area (long lead times and on
critical path) - July 31, 2006.

·                                          Structural
steel frame and metal deck- West Addition (long lead times and on critical
path) - July 31, 2006.

·                                          Bar
joists and roof trusses- East Shell Space Area - July 31, 2006.

·                                          Bar
joists and roof trusses- West Addition - July 31, 2006.

·                                          Completed
envelope design (including steel studs, wall siding, details for connection to
existing Casino and roofing) - East Finished Area and Shell Space - August 14,
2006.

·                                          Completed
envelope design (including steel studs, wall siding, details for connection to
existing Casino and roofing) - West Addition - August 14, 2006.

·                                          Electrical
switchgear (long lead time after approval) - July 25, 2006.

·                                          Specialty
light fixture schedule and quantities- August 7, 2006 - Specialty light
fixtures are to be the same as those used in the original Casino, with the
exception of : (1) wagon wheel chandeliers that will be fitted with upper
shields and (2) Spot lights at casino floor that will be AD-10 Domes by Ark
Lighting.

·                                          Long
lead interiors such as Formglas and any specialty millwork.  Contractor will submit shop drawings similar
to those approved for the Formglas materials used in the original project by
August 12, 2006.  Architect will complete
review and return approved with comments within 14 calendar days from date of
receipt.

·                                          The
Stage Bar and Poker Room Bar- Design August 4, 2006, rough in requirements
August 15, 2006.

 

·              Complete sitework drawings - East
Addition - August 7, 2006.

·              Complete sitework drawings - West
Addition - August 14, 2006.

·              80% Construction Documents
- East and West Additions - August
21, 2006.

·              100% Construction Documents - East
and West Additions - September 15, 2006.

 

PLEASE NOTE:  Substantial
Completion of the west addition may vary from the above if food service lead
times are not consistent with our assumptions. 
Scheduling for the west side does not include actual subcontractor
vendor input so far.

 

The following items or notes are included as
part of our Stipulated Sum proposal.

 

·                                          Documents
used to determine the stipulated sum include the “Floor Plan” (dated July 28,
2006) and “Elevations” (dated July 28, 2006) as prepard by YWS Architects.

·                                          The
form of agreement for this project will be an AIA A101 Stipulated Sum
contract.  All terms and conditions will
be consistent with those negotiated in our previous agreement for the original
Diamond Jo Worth Casino project except as clarified below.

·                                          Progress
payments and retainage shall be consistent with the terms of our previous
agreement for construction of the original Diamond Jo Worth project.

·                                          Contractor’s
Fee for all additive Change Orders shall be three and one half percent (3.5%)
and minus three and one half percent (3.5%) for all deductive Change Orders.

·                                          Self
performed labor on Change Orders will be invoiced at the hourly rates listed
below.  Overtime (hours worked over forty
per individual in a single week) will be invoiced at 1-1/2 times the hourly
rates listed below.

 

                ·              Superintendent - $62.00 per hour.

                ·              Finish Carpenter - $50.00 per
hour.

                ·              Carpenter - $47.00 per hour.

                ·              Steel Erector - $62.00 per hour.

                ·              pre-cast Erector - $50.00 per
hour.

                ·              Certified Welder - $62.00 per
hour.

                ·              Concrete Finisher - $50.00 per hour.

                ·              Laborer - $38.00 per hour.

                ·              Operator - $56.00 per hour.

                ·              Project Engineer - $75.00 per
hour.

                ·              Administrative Assistant - $42.00
per hour.

 

·                                          Equipment
owned by Henkel Construction Company on Change Orders will be invoiced at Green
Book rates.

·                                          Equipment
rented by Henkel Construction Company on Change Orders will be invoiced at the
rental cost plus three and one half percent (3.5%) fee.

·                                          Proof
of financing acceptable to Contractor will be provided to Contractor prior to
project commencement.

·                                          Duplicate
records and partial lien releases shall not be required as a condition of
payment.

·                                          Owner
shall be responsible for establishing inspection authority and criteria for
managing inspections required to obtain Certificate of Occupancy.  Contractor will aid in coordination and
ordering of inspections as directed by Owner’s Inspecting Authority.

·                                          Contractor
will assist in acquiring appropriate Department of Natural Resources (DNR)
approvals and permits required to begin construction activities, but Owner will
be responsible for

acquisition of same and construction commencement
shall not occur until all required financing and permits are in place.

·                                          Insurances
consistent with those provided for the original Diamond Jo Worth Casino
project. They will include underline coverage of $2,000,000.00 per project and
aggregate excess/umbrella liability per project of $8,000,000.00.

·                                          Performance
and Payment Bonds.

·                                          Separate
office trailers for Contractor and Owner/Architect use located per Attachment
“A” - Site Utilization Plan.

·                                          Temporary
utility services for electricity, water, and gas as well as construction
utility consumption costs for electricity, water and heat.  Temporary utilities will not be supplied from
existing Casino switchgear, propane service lines, etc.  We include payment for utilities and
Substantial Completion.

·                                          The
Owner’s Representative will be on site every week and Architect’s authorized Representative
will be on site and available for Contractor questions, expediting shop drawing
review and approval, and coordination a minimum of one full day every 2 weeks
for the first 120 calendar days of the project.

·                                          It
is assumed that the east exterior wall of the existing Casino will remain until
the addition shell is completed and weather tight before any openings in that
wall or partial removal will take place.

·                                          Security
associated with the construction site as required per Contractor’s discretion.

·                                          Emergency
exiting and employee entering will be achieved by Hall 128, which will be
constructed in advance of the surrounding structure.  We do not include any other provisions for
exiting or entering the existing Casino during construction.

·                                          Relocating
existing 8” drain tile under east parking lot.

·                                          GPS
surveying as part of the earthwork. 
Earthwork scope of work shall be established with points and grades
established by Owner.  Survey and/or
layout service is excluded.  This service
will be completed by Yaggy Colby Associates or others in a contract direct with
the Owner.

·                                          Excavation
to a depth of 6’-3” below Casino finished floor at the low foundation (a.k.a.
Wet Basement).  Any additional excavation
or backfill required due to wet soil, unforeseen subsoil conditions, or for any
other reason is excluded.

·                                          Hauling
of excavation spoils and stockpiling only (leveled, drained and seeded) to the
Owner controlled site south of County Road 105 via temporary haul road located
on the new property to the north (see Attachment “A” - Site Utilization Plan).

·                                          Chain
link fence with gates at the Electrical Yard for generators and
transformers.  We include relocating and
painting existing pipe bollards (18 each) if deemed re-useable in owner’s
discretion for the transformer and relocated generators and providing new
bollards (6 each) for the new generator.

·                                          Pre-cast
concrete systems consistent with design for existing Casino.  We have not included provisions for pre-cast
to support cranes or other heavy loads and will require the work and staging
areas etc. as indicated on Attachment “A” - Site Utilization Plan.

·                                          Painted
steel pipe handrail at exterior steps and handicap ramps.  We do not include architectural handrail or
handrail with integral lights.

·                                          Relocating
existing Poker Room wall panels.  We
include purchase of new panels only as required to accommodate the 1’-0”
adjustment in ceiling height.

·                                          Roofing
materials as follows.

                                                ·              EPDM at main East Expansion.  We do not include EPDM or other roofing or
insulation under the Barn Element.

                                                ·              Corrugated metal at East Vestibule
and “Porch”.

 

·                                          Relocating
existing (4 pair) and providing new (4 pair) aluminum doors/operators at East
Vestibule.  All relocated and new
aluminum doors to receive tinted glass. 
Relocate the automatic accessible door openers and controls at East
Vestibule.

·                                          Relocating
components of existing pony walls and bollards at East Vestibule.

·                                          Fire-rated
drywall enclosures around steel columns (in lieu of sprayed-on fireproofing)
for main east expansion.

·                                          Sprayed
fireproofing for East Vestibule and tube steel for brace frames.

·                                          Interior
floor finishes as follows.

·                                          Non-slip
quarry tile at Entertainment Bar Expansion (employee side), New Entertainment Service
Bar, New Bar (employee side), New Service Bar and New Restrooms.

·                                          Wood
at New Dance Floor, New East Entrance, Entertainment Bar Expansion (public
side) and New Bar (public side).

·                                          VCT
at IT Room, Electrical Room and Equipment Room Expansion. 

·                                          Linoleum
at Card Storage and Stage Access.

·                                          Rubber
at Entertainment Stage Expansion.

·                                          Installation
of Casino carpet, pad and base furnished by Owner at New Slot Area, New Live
Gaming Area, New Poker Room, New High Limit Gaming and Hallway in Shell
Space.  All carpet base shall be delivered
with a factory hemmed edge.

·                                          Purchase
and Installation of carpet (matching existing Back of House) at Conference
Room.

·                                          Floor
mat at East Vestibule.

·                                          Stained
concrete at East Vestibule.

·                                          Interior
ceiling finishes as follows.

·                                          Painted
roof deck at New Slot Area, New Live Gaming Area, Entertainment Bar Expansion,
New East Entrance and Hallway in Shell Space. 
Underside of roof deck in main Shell Space area shall be prime painted
only.

·                                          Flat
gypsum board at East Vestibule and New Restrooms.

·                                          Coffered
gypsum board at New Poker Room and New High Limit Gaming.

·                                          Double-fascia
gypsum board soffit at a portion of the perimeter of Gaming Area.  We have included approximately 260 linear
feet of this type of soffit.

·                                          Acoustical
ceiling tile at Card Storage, Stage Access, IT Toom, Electrical Room, Equipment
Room Expansion and Conference Room.

·                                          Washable
acoustical ceiling tile at New Entertainment Service Bar and New Service Bar.

·                                          Open
grid at New Slot Area (four at 42’-0” x 24’-0” and one at 32’-0” x 24’-0”).

·                                          Formglas
at Entertainment Bar Expansion and New Live Gaming Area.

·                                          Exterior
wall finishes per “Elevations” from YWS dated July 28, 2006.

·                                          It
is assumed that all interior finishes, light fixtures (other than wagon wheel
chandeliers and spot lights at Casino floor), restroom fixtures, column wraps,
faux finishes, bollards, pony walls, wall coverings, etc. and their associated
vendors and suppliers shall be the same as those utilized in the original
Diamond Jo Worth Casino.

·                                          Finishes
at new Gaming Areas to be consistent with existing Casino.

·                                          Fire
extinguishers with cabinets (6 each).

·                                          Signage
as follows.

·                                          Exit
signs.

·                                          Handicap
parking signs.

·                                          ADA
compliant restroom signs.

·                                          Occupancy
placards.

 

·                                          All
Formglas components to be dimensioned same as the existing Casino so that the
manufacturer can re-use the previous forms.

·                                          Five
(5) coat stain finish for Formglas.

·                                          Construction
of the Silo per Request for Proposal #02 (dated September 9, 2005) from KGA
Architecture.  We have included a
pre-manufactured roof dome as manufactured by Hanson Silo in lieu of the roof
structure shown in the RFP.

·                                          Permanent
propane supply for the new addition shall be accomplished by extending service
from the system in the existing Casino.

·                                          Wet
fire sprinkler system.  We do not include
a dry chemical system.

·                                          Snow-melt
system sidewalk outside of East Vestibule including the stoop, steps and
handicap ramps.  The existing manifold
will be relocated from the current East Vestibule.  We do not include snow-melt at any other
exterior doors.

·                                          Roof-Top
HVAC Units as follows.

·                                          Four
(4) each at 50 tons (includes 1 unit for Shell Space).  The East Vestibule, Restrooms in Shell Space
and Conference Room in Shell Space will be served from a combination of these
50 ton units.

·                                          Roof
curbs only for two (2) 50 ton units at Shell Space.

·                                          Fresh-Air
HVAC Units as follows.  The New Poker
Room and New High Limit Gaming will be served by Fresh-Air Units only and are
not also served by Roof-Top Units.  We do
not include the three (3) proposed Fresh-Air Units (including installation,
controls, gas piping ductwork, painting of ductwork, roof curbs and electrical)
that will serve the existing Casino.

·                                          Two
(2) each at 6,600 CFM.

·                                          Relocating
the two (2) existing 600-kW generators to the Electrical Yard contiguous to the
propane tank farm and providing one (1) new 1,000-kW generator (includes 2
sections of automatic paralleling switchgear with 1 generator breaker and 4
feeder breakers) at the electrical Yard (see Attachment “A” - Site Utilization
Plan).

·                                          Relocating
the existing transformer to the Electrical Yard contiguous to the propane tank
farm (see Attachment “A” - Site Utilization Plan).

·                                          Specialty
(track) and Interior Design (columns sconces) light fixtures to match gaming
floor at existing Casino.

·                                          Relocating
existing chasing lights for the East Vestibule and “Porch”. We do not include
providing any new chasing lights other than for Barn Element (included in
Allowance for Barn Element) unless existing lights in the relocating process
are damaged.

·                                          Relocating
existing exterior mural lighting at east elevation.

·                                          Telephone/Data
(Wiring by Design), Audio/Visual (Alpha Video; includes digital signage
extension for progressive slots and two projection screens at Entertainment
Stage Expansion) and Security/surveillance (C13) cabling and equipment.

·                                          Automatic
card readers (6 each) with electric door strikes.

·                                          Please
note the following clarifications regarding the shell space (shaded area on
July 7 “Floor Plan”).

·                                          At
the Basement areas, we include the topping slab directly on top of the precast
only without any rigid insulation (except at wall framing see item below).

·                                          We
include insulation and vapor barrier at exterior walls. We do not
include sheetrock.

·                                          We
do not include any floor (including VCT, carpet or tile), wall
(including paint, wall coverings or tile) or ceiling (including paint, drywall
or ACT) finishes other than for New Restrooms, Hallway, Conference Room, and
priming of the Shell Space roof deck and structure.

 

                                                ·              The New Conference room will also
have HVAC (served by 50 ton roof-top unit for Shell Space), electrical and
telecommunications wiring (2 jacks are included) and lighting.

                                                ·              New stage area previously shown at
east end of Meeting Room area (now Shell Space) is excluded.

                                                ·              We include a 12” wide strip of
topping slab under the exterior/separation wall framing only. These walls bear
on the slab.

                                                ·              We include one (1) motorized over
head door and one (1) manual exterior sliding barn door.

                                                ·              We include the New Restrooms and
adjacent Hallway in the Shell Space. We include plumbing rough-in only for the
Future Restroom Expansion.

                                                ·              We include a Conference Room
(approximately 400 square feet).

                                                ·              We include a sprinkler system and
fire alarm.

                                                ·              We do not include Walker duct.

                                                ·              We include construction grade
temporary lighting.

 

The following Allowances are included as part of
our Stipulated Sum proposal. These Allowances include all materials,
sales tax, freight, unloading and handling, and labor and equipment required
for installation.

 

	
  

  	
  Barn Element (including structural and secondary
  framing, concrete topping slabs,

  	
   

  
	
  

  	
  roof deck on sloped surface, roof insulation on
  sloped surface, wall insulation,

  	
   

  
	
  

  	
  wall sheathing, wall siding, roofing, gutters and
  downspouts, soffits, doors,

  	
   

  
	
  

  	
  painting, louvers, ventilation, interior/exterior
  power or lights, and chasing

  	
   

  
	
  

  	
  lights as may be required for construction of the
  Barn Element)

  	
  $

  	
  200,000.00

  
	
  ·

  	
  Landscaping (including trees, shrubs and other
  plantings, seed and sod, rocks

  	
   

  
	
   

  	
  and boulders, mulch, lawn irrigation, etc.)

  	
  $

  	
  75,000.00

  
	
  ·

  	
  Faux Painting (including Veri-Tex, Murals, Exterior
  Billboards & Water Tower)

  	
  $

  	
  350,000.00

  
	
  ·

  	
  Food Service Equipment

  	
  $

  	
  400,000.00

  
	
  ·

  	
  Conduit for Soda and Liquor Lines

  	
  $

  	
  15,000.00

  
	
  ·

  	
  Silo Power and Lighting

  	
  $

  	
  100,000.00

  

 

The following items or notes are excluded as
part of our Stipulated Sum proposal.

 

·                                          The
following items will not be completed prior to the Substantial Completion and
the project shall not be subject to Liquidated Damages as a result.
Construction of these items will commence as soon as practically possible and
shall be completed as soon as reasonably possible after Substantial Completion.

·                                          Landscaping.

·                                          Faux
or other painting of the building exterior.

·                                          Parking
lot striping.

·                                          Silo.

·                                          Any
and all work inside of and/or west of the original Diamond Jo Worth Casino
project including but not necessarily limited to the proposed west addition for
New Food Service and Buffet, Casino-Hotel link, as well as miscellaneous
renovations and modifications in the existing Casino such as the existing Back
of House, the New Cage Station, Reworked Coffee Shop Entrance, Reworked Coat
Check and Relocated Starbucks Storage area, with the exception that the old
conference room will be converted to an electrical room expansion,
administrative area modifications and the new conference room accessible from
the Administration Area.

 

·                                          Security
associated with the existing Casino, Owner’s employees, and Owner’s customers,
vendors, and subcontractors shall be provided by Owner.

·                                          Builder’s
Risk Insurance shall be provided by Owner in the same form as the original
Diamond Jo Worth Casino project.

·                                          Any
and all professional engineering and/or design services, including any required
for exterior walls, ceiling systems, Barn Element and Silo,

·                                          Special
provisions to allow for east customer entry.

·                                          Any
and all work associated with modifications or upgrade to existing water and
waste water treament systems if required.

·                                          Any
and all work associated with additional traffic signalization, lighting, road
work, etc. if required on or around Wheelerwood Road, County Road 105, the
Owner controlled site south of County Road 105, etc., if required.

·                                          Removal,
replacement, relocation or widening of drive north of Casino.

·                                          Sidewalks
north of Column Line C/A.

·                                          New
sanitary sewer service or lift stations for the East Expansion.

·                                          Provision
of utility extensions of any kind for other future projects.

·                                          Well
construction.

·                                          Base
line staking services.

·                                          Soil
borings err geotechnical analysis.

·                                          All
testing services (including soil compaction, concrete strength and structural
steel).

·                                          AISC
certification for structural steel fabricator.

·                                          Millwork
in Service Bars. If required, any shelving or countertops will be provided as
part of the Allowance for Food Service Equipment.

·                                          EPDM
or other roofing or insulation on the metal deck under Barn Element.

·                                          Providing
a pump for the fire sprinkler system.

·                                          Fresh-Air
Units (or other provisions for humidity control) serving existing Casino.

 

Please sign in the space provided below indicating your authorization
and agreement and return one (1) originally signed copy for our files. We will
provide insurance certificates immediately and follow with the AIA A101
Stipulated Sum contract as quickly as possible.

 

	
  Sincerely,

  	
  Authorization and Agreement:

  
	
   

  	
   

  
	
  HENKEL CONSTRUCTION COMPANY

  	
  Diamond Jo Worth, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
  By: 

  	
  /s/ Scott A Sheller

  	
  By: 

  	
  /s/ [Illegible]

  
	
   

  	
   

  
	
  Scott A Sheller, Director of Business Development

  	
  Date:     August 8, 2006

  
	
   

  	
   

  
	
  ljw

  	
   

  
	
  encl.

  	
   

  
	
   

  	
   

  
	
  cc:      Mr. Kevin
  Fontenot

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
				

 

 

 

	
  

  	
   

  	
   

  
	
   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

  

  	
  

  

 

 

EXHIBIT
“A”

INSURANCE,
INDEMNIFICATION, BONDING & WAIVER OF SUBROGATION

	
  OWNER:

  	
  DIAMOND JO WORTH, LLC

  
	
   

  	
   

  
	
  PROJECT:

  	
  Diamond Jo Worth Expansion Project - East
  Addition

  
	
   

  	
   

  
	
  CONTRACTOR:

  	
  Henkel Construction Company

  
	
   

  	
   

  
	
  CONTRACT DATE:

  	
  August 18, 2006

  

 

A.            CONTRACTOR’S LIABILITY
INSURANCE:  The Contractor shall
purchase and maintain such insurance as will protect itself and the Owner from
claims set forth below, which may arise out of, or result from its operations
under the Contract or its operations in connection with the Work, whether such
operations be by itself or by any Subcontractor, Sub-subcontractor, or by
anyone directly or indirectly employed by any of them, or by anyone for whose
acts any of them may be liable.

1.               Claims under Worker’s
or Workman’s Compensation Disability Benefit, and other Employee Benefits Acts;

2.               Claims for damages
because of bodily injury, occupational sickness or disease, or death of its
employees;

3.               Claims for damages
because of bodily injury, sickness disease, or death of any person other than
its employees;

4.               Claims for damages
insured by usual Personal Injury Liability Coverage, which are sustained (1) by
any person, as a result of an offense directly or indirectly related to the
employment of such person by the Contractor, or (2) any other person.

5.               Claims for damages,
other than to the Work, because of injury to, or destruction of tangible
property.

6.               Claims for damages
because of bodily injury or death of any person, or property damage arising out
of ownership, maintenance, or use of any motor vehicle.

7.               Claims which could
arise from the so-called “X, C & U” hazards.

8.               Claims which
include the foregoing 1-7, but not limited thereto, which may occur while
operations are being performed, and claims which may occur after operations are
completed. The completed operations coverage shall remain in effect for a
minimum of two (2) years after the date of the final completion of the Project.

B.             The Limits of
Liability shall not be less than the following:

	
  WORKER’S COMPENSATION

  	
   

  	
  Statutory

  
	
  Employer’s Liability — Each Coverage

  	
   

  	
  $  1,000,000.00

  
	
  (A Waiver of Subrogation Endorsement is Required)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  PRIMARY COMMERCIAL GENERAL LIABILITY

  	
   

  	
   

  
	
  (A “Per Job” Aggregate Endorsement will be required)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Bodily Injury & Property Damage

  	
   

  	
   

  
	
  - Each Occurrence

  	
   

  	
  $  1,000,000.00

  
	
  - General Aggregate — This Job Only

  	
   

  	
  $  2,000,000.00

  
	
   

  	
   

  	
   

  
	
  AUTOMOBILE

  	
   

  	
   

  
	
  Including Owned, Non-Owned & Hired

  	
   

  	
   

  
	
  Combined Single Limit or its Equivalent

  	
   

  	
  $  1,000,000.00

  
	
   

  	
   

  	
   

  
	
  EXCESS/UMBRELLA LIABILITY

  	
   

  	
   

  
	
  - Aggregate - This Job Only

  	
   

  	
  $  8,000,000.00

  

 

C.             The Contractor shall
add the Owner and any of its affiliated entities, as Additional Insureds on all
policies required above, except Workers Compensation which requires a Waiver of
Subrogation. The Contractor shall be solely responsible for paying the cost of
such insurance premiums. If requested by Owner, any Lender or other interested
party shall also be included as an additional insured.

D.            The insurance required
by this Exhibit “A” shall include Contractual Liability Insurance, applicable
to the Contractor’s obligations hereunder.

E.              Prior to the
commencement of any Work under this Agreement, the Contractor, at its sole cost
and expense, shall furnish the Owner with certificates of insurance providing
the Owner with evidence of the insurance coverages enumerated herein, pursuant
to policies which shall be kept in full force and effect throughout the period
specified with respect to each such policy. All insurance coverage required of
the Contractor shall provide primary coverage and be non-contributory with any
similar insurance maintained by the Owner.

F.              The Contractor shall
make the original policies themselves available for inspection by authorized
representatives of the Owner, Lender, and their agents, representatives,
consultants and contractors at all reasonable times. The certificates required
under this Subparagraph shall contain a provision that coverage afforded under
the policies will not be canceled, altered, or amended, or not renewed until at
least thirty (30) days prior written notice has been given to the Owner. This thirty
(30) day notice requirement must also appear by endorsement to all Contractor’s
and Subcontractor’s policies. The Contractor may also be required to submit
copies of its insurance policies, complete, certified if requested, evidencing
coverages required by this Agreement within thirty (30) days from the date of
the Agreement. This is in addition to the requirement that the Contractor
supply certificates of insurance. Insurance coverages must be provided in an
acceptable format by insurance companies acceptable to the Owner.

G.            The following
Conditions are to be noted:

1.               The Contractor
shall require, or provide on behalf of its subcontractors and
sub-subcontractors, insurance similar as to  type of coverage to that required of the Contractor by the
Owner but with lower limits as the Contractor deems
appropriate. Failure of the Contractor to obtain evidence of
coverage from its subcontractors and sub-subcontractors, consistent with that
which is required, shall not relieve the Contractor of any of its
responsibilities under this Exhibit “A”.

2.               The Owner makes no
representations or warranties with respect to the extent or adequacy of the
insurance protection required to be provided by the Contractor, and the
Contractor and his Subcontractors shall satisfy themselves as to the coverage
afforded by such policies. The furnishings of the insurance policies by the
Contractor shall not limit, reduce or otherwise amend any of the obligations or
liabilities of the Contractor expressed herein and elsewhere in the Contract
Documents.

3.               In the event of any
failure by the Contractor to comply with any of the provisions of this Exhibit
“A”, the Owner may, at its option and without any obligation to do so, upon
written notice to the Contractor, exercise all of its rights and remedies in
the event of a default by the Contractor hereunder, including without
limitation terminating this Agreement or suspending it until there is full
compliance by the Contractor with this Exhibit “A”. Alternatively, but subject
to the limitations contained herein below, the Owner may, but shall not be
obligated to, contract for such insurance and the cost or premium of such
insurance shall constitute a credit to the Contract Sum and the Contractor and
Owner shall execute a Change Order pursuant to the appropriate section of the
Contractor between Owner and Contractor for the purpose of deducting and
excluding such cost or premium from the Contract Sum. If the Owner shall
contract for such insurance, the Contractor shall nevertheless not be relieved
of or excused from its obligation to obtain and maintain insurance coverage as
set forth in the Exhibit “A”.

H.            BUILDERS RISK/COURSE
OF CONSTRUCTION INSURANCE

1.               The Owner will
purchase and maintain Builder’s Risk insurance to one hundred percent (100%) of
the insurable value thereof. The policy will provide the standard coverage of
Fire and Extended Coverage perils for physical loss or damage to the Project or
materials delivered to the Site or in transit for installation into the
structure. Theft coverage is not included nor is coverage for Contractor’s
tools or equipment. The Contractors and Subcontractors shall be an insured on
the Policy, as their interest may appear, and only to the extent. Contractor,
Subcontractors and/or Sub-subcontractors shall be responsible for their proportionate share of any deductible amount assessed
on any covered property loss. The deductible on the policy shall not excess the
sum of five thousand and no/100 dollars ($5,000.00)
per loss. The full loss, if any, will be adjusted with, and made payable to the
Owner, as trustee for all insureds, as their interest may appear, subject to
any rights of any Lender involved with the Project.

2.               If required in
writing by a party in interest, the Owner, as trustee, shall upon the
occurrence of any Builder’s Risk insured loss, give bond for the proper
performance

of its duties. It shall deposit in a separate account
any money so received, and it shall distribute it in accordance with such
agreement as the parties in interest may reach. If after such loss no other
special agreement is made, replacement of damaged work shall be covered by an
appropriate change order. The party in interest that requires the Owner, as
trustee, to give bond for the proper performance of its duties, shall pay for
such bond and associated costs.

3.               Any Contractor
and/or Subcontractor or supplier who supplies materials for the Work shall be
solely responsible for and pay for insuring the materials while stored off the
Site and while the materials are in transit to the Site, until located at the
Site. If material and equipment is to be paid for prior to being located at the
Site, the Contractor and/or all subcontractors shall purchase and maintain
insurance coverage on the materials in a format protecting the property
regardless of its location for the “All Risks or Risk of Physical Loss” type
perils which are to include Theft, Vandalism & Malicious Mischief. Any
deductible clause chosen shall be the sole responsibility of the Contract and/or
Subcontractor or supplier and be subject to the written approval of the Owner.
This insurance shall be in a format acceptable to the Owner, and shall insure
for the “Replacement Cost” of the materials, with no coinsurance applicable.
The Owner shall be the Loss Payee on the policy, if so requested. Evidence of
coverage acceptable to the Owner shall be provided by the Contractor or
Subcontractor prior to payment being made by the Owner for the materials.

4.               Each Contractor and
Subcontractor(s) is/are solely responsible for any and all equipment, tools,
materials, and the like, which is/are used in performing the Work whether
owned, leased, rented, borrowed or otherwise at all times and under all
conditions.

5.               If the Owner finds
it necessary to occupy or use a portion or portions of the Work prior to
Substantial Completion, Owner shall provide proof
of insurance for Owner’s operations acceptable to Contractor and
such occupancy shall not be opposed by the Contractor or any Subcontractor and
Sub-subcontractors nor any of their respective insurance company or companies
providing any coverage on the job.

6.               Unless otherwise
provided, the Builder’s Risk Insurance provided by the Owner shall remain in
effect, without conditional restrictions, until final acceptance of the
Contractor’s Work by the Owner, or until the Owner has placed the permanent
insurance on the Work.

I.                 OWNER’S RIGHT TO
OBTAIN INSURANCE

The Owner shall have the option, but not the
obligation, to obtain and maintain any additional insurance in the types,
coverages and/or amounts as they deem appropriate, at their own cost and
expense. However, Contractor’s insurance as required by this Exhibit “A” shall
at all times be primary and non-contributory to any coverage(s) purchased or
maintained by the Owner.

J.              NO COVERAGE CHANGE

Any and all insurance policies required herein to be
obtained by the Contractor shall provide that there shall be no modification,
termination, expiration or non-renewal of such policies of insurance without at
least thirty (30) day’s prior written notice to the Owner.

K.            WAIVER OF SUBROGATION

The Contractor hereby releases and waives any and all
rights of subrogation against the Owner which, in the absence of this Exhibit
“A”, would arise in favor of any insurance company insuring the Contractor
against loss by fire, extended coverage, casualty and loss of any other type
resulting from damage to or destruction of property and the Work or any portion
thereof, or damage to or destruction of the property of the Contractor located
on the Site, and the Contractor hereby releases and waives its right of
recovery against the Owner for loss or damage to or destruction of the property
the Work or any portion thereof, or in damage to or destruction of the property
of the Contractor located on the Site, caused by fire or other hazards insured
against by extended coverage or casualty insurance. The Contractor shall
require of each Subcontractor, agreements written where legally required for
validity, providing for similar waivers, each against each other.

L.             INDEMNIFICATION

1.               To the fullest
extent permitted by law, the Contractor shall protect, indemnify, hold harmless
and defend the Owner, and its agents, directors and employees, from and against
all claims, damages, losses, and expenses, including, but not limited to,
attorney’s fees, arising out of or which are alleged to arise out of or be
connected with or resulting from the Work, including, without limiting the
generality of the foregoing, all claims for Contractor’s
breach of this Agreement, any claims brought by any party out of the actions
arising by  through or under
the Contractor, its subcontractors, agents and employees, any claims, damages,
loss or expense, which are attributable to bodily injury, sickness, disease or
death, or for injury to, or destruction of tangible property, (other than to
the Work), whether based upon or claimed to be based upon statutory, contractual,
tort or other liability. Such obligations shall not be construed to negate,
abridge, or otherwise reduce any right or obligation or indemnity, which could
otherwise exist as to any party or person described in this Section “L” -
Exhibit “A”. If any part of this provision is adjudged to be contrary to law,
the remaining parts of this provision shall in all other  respects be and remain legally effective and
binding. Moreover, this provision shall not be construed to eliminate or in any
way reduce any other indemnification or right which the Owner has by law.

2.               The parties
acknowledge that the Contractor shall control all construction means and
methods and all safety procedures, and compliance with OSHA and/or any other
laws and ordinances. The Contractor’s indemnity shall cover any matters arising
as a result of construction means or methods or safety procedures since the
Owner shall have no involvement with or responsibility therefore except for Work performed by Owner or Owner’s Contractors.
This indemnity shall survive the termination of the 

                        Agreement
with respect to matters occurring on or before the date of such termination.

3.               In any and all
claims against the Owner, and/or any of their agents or employees, by any
employee of the Contractor, or any sub-subcontractor, anyone directly or
indirectly employed by any of them, or anyone for whose acts any of them may be
liable, the indemnification obligation under this Section “L” - Exhibit “A”
shall not be limited in any way by any limitation or the amount or type damage,
compensation, or benefits payable by, or for the Contractor, or any
sub-subcontractor, under Worker’s Compensation Acts, Disability Benefits Acts,
or other Employee Benefit Acts.

4.               The obligations of
the Contractor under this Section “L” - Exhibit “A” shall not extend to the
liability of the Architect, his agents or employees, arising out of (1) the
preparation or approval of Maps, Drawings, Opinion, Reports, Surveys, Change
Order, Designs, or Specifications, or (2) the giving of or failure to give
directions or instruction by the Architect, his agents or employees, provided
such giving, or failure to give, is the primary cause of the injury or damage.

M.          RIGHTS OF LIEN

1.               The Contractor
hereby agrees that all of its rights of lien, whether conferred by statute or
otherwise, with respect to all or any portion of the Work are subordinate to
the lien of any mortgage and to the rights of any beneficiary under a deed of
trust (and all advances secured thereby), now or hereafter encumbering all or
any portion of the Work, given by the Owner to the Lender to secure
construction or permanent financing for the Work, and the Contractor shall
execute such documents effectuating such subordination as the Owner may
require. The Contractor also agrees to obtain, for the benefit of Lender,
similar subordination agreements, in form and substance satisfactory to the
Owner and Lender, from all Subcontractors, Sub-subcontractors, material and
equipment suppliers and other persons supplying labor and materials in
connection with the Work.

2.               The Contractor is
obligated to notify the Owner immediately if he becomes aware of the existence
of any lien upon the Site or Work which is the result of Contractor’s
Work (including Work performed by Contractor, Subcontractors, and Sub-subcontractors). Provided Contractor has been paid currently
per the Contract Documents, Contractor shall remove such lien within
ten (10) days of the attachment thereof, (unless the Owner otherwise consents
in writing).

3.               The Contractor
further agrees to indemnify and hold harmless the Owner and Lender, for, from
and against any claim of lien, or liens, or both, for labor or service performed
or materials supplied, or both, furnished or to be used on the Site.

N.            BONDING

Contractor shall furnish Bonds in the form required by the owner,
covering the faithful performance of the Contract, and the payment of all
obligations arising thereunder. These shall be in
form of a 100% Performance, 100% Labor and Material Payment.Exhibit 10.60

PENINSULA GAMING, LLC

DIAMOND JO, LLC

PENINSULA
GAMING CORP.

$12,000,000 8 3/4% Senior Secured
Notes due 2012

$10,000,000
8 3/4% Senior Secured
Notes due 2012

PURCHASE
AGREEMENT

December 22, 2006

JEFFERIES & COMPANY, INC.

11100 Santa Monica Boulevard

10th Floor

Los Angeles, California
90025

Ladies and Gentlemen:

Each of Peninsula Gaming,
LLC, a Delaware limited liability company ("PGL"),
Diamond Jo, LLC, a Delaware limited liability company ("DJL"), and Peninsula Gaming Corp., a Delaware corporation
("PGC" and, collectively with PGL
and DJL, the "Issuers"),
and each of the entities listed on the signature pages hereto under the heading
"Subsidiary Guarantors" (the "Subsidiary
Guarantors") hereby agrees with you as follows:

I.  Issuance of Securities.
The Issuers propose to issue and sell to Jefferies & Company, Inc. (the
"Purchaser"), and the Purchaser
proposes to purchase, $12,000,000 aggregate principal amount of the Issuers' 8 3/4% Senior Secured Notes due 2012, Series A
(together with the Guarantees (as defined below) endorsed thereon, the "Tranche 1 Notes"). The Issuers also propose to issue
and sell to the Purchaser, and the Purchaser proposes to purchase $10,000,000
aggregate principal amount of the Issuers' 8 3/4%
Senior Secured Notes due 2012, Series A (together with the Guarantees endorsed
thereon, the "Tranche 2 Notes"
and, together with the Tranche 1 Notes, the "New Notes").

The New Notes will be
issued pursuant to an indenture, dated as of April 16, 2004, by and among the
Issuers, the "Subsidiary Guarantors" (as defined in the indenture)
and U.S. Bank National Association, as trustee (the "Trustee"),
as supplemented and amended (the "Indenture").
Pursuant to the Indenture and a Purchase Agreement, dated as of March 25, 2004,
by and among the Issuers, the Subsidiary Guarantors and the Purchaser (the
"Note Purchase Agreement"), the
Issuers issued on April 16, 2004, $233,000,000 aggregate principal amount at
maturity of 8 3/4% Senior Secured Notes due
2012, Series A (the "Original Notes",
and together with the New Notes, the "Notes").

Pursuant to the
Indenture, each of the Subsidiary Guarantors and any future subsidiary
guarantor which becomes a party to the Indenture will, jointly and severally,
fully and unconditionally guarantee, on a senior secured basis, to each holder
of New Notes and the Trustee, the payment and performance of the Issuers'
obligations under the Indenture, the New Notes and the Security Documents (as
defined below), including the payment of principal, interest and premium, if
any, and, if applicable, Liquidated Damages (as defined in the Indenture) on
the New Notes (the "Guarantees").

 

Pursuant to the
terns of the Security Documents, all of the respective obligations of the
Issuers and the Subsidiary Guarantors under the Indenture, the New Notes and
the Guarantees will be secured by security interests in, or pledges of (the
"Security Interests"), the same
collateral securing the Original Notes (the "Collateral").

In connection with the
issuance of the New Notes, DJL and The Old Evangeline Downs, L.L.C. ("OED") have entered into a Fourth Amendment, dated as of
December 22, 2006 (the "Credit Agreement Amendment"),
to that certain Loan and Security Agreement, dated as of June 16, 2004, by and
among DJL, OED, the lenders that are signatories thereto and Wells Fargo
Foothill, Inc., as the Arranger and Agent, as amended by a First Amendment,
dated November 10, 2004, a Second Amendment dated as of July 12, 2005, and a
Third Amendment, dated as of December 6, 2006.

The New Notes will be
offered and sold to the Purchaser pursuant to an exemption from the
registration requirements under the Securities Act of 1933, as amended (the
"Act").

Upon original issuance
thereof, and until such time as the same is no longer required under the
Indenture or the applicable requirements of the Act, the New Notes shall bear
the following legend:

"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 THEREOF 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 REGULATIONS UNDER THE SECURITIES ACT, (E) TO AN INSTITUTIONAL
"ACCREDITED INVESTOR" WITHIN THE MEANING OF

 

 2
 

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.  Agreements to Sell and
Purchase; Delivery and Payment. On the basis of
the representations, warranties and agreements contained herein, and subject to
the terms and conditions hereof, the Issuers shall issue and sell to the
Purchaser, and the Purchaser agrees to purchase from the Issuers, $12,000,000
aggregate principal amount at maturity of Tranche I Notes and, following the
issuance, sale and purchase of the Tranche 1 Notes, $10,000,000 aggregate
principal amount at maturity of Tranche 2 Notes. The purchase price for the
Tranche 1 Notes and the Tranche 2 Notes shall be 99.0% of the principal amount
at maturity thereof (the "Purchase Price").

In connection with the
issuance of the Original Notes, the Issuers and the Subsidiary Guarantors entered
into certain security and pledge agreements, mortgages and certain other
collateral documents (collectively, the "Original
Security Documents"), that provided for the grant of the
Security Interests in the Collateral to U.S, Bank National Association, as
collateral agent for the Trustee and the holders of the Notes (in such
capacity, the "Secured Party").
On the Closing Date, in connection with the issuance of the New Notes, the
Issuers and the Subsidiary Guarantors will enter into certain amendments to the
mortgages and certain other documents (each as may be amended from time to
time, collectively, the "New Security Documents")
to reflect the issuance of the New Notes. The Original Security Documents, as
amended and supplemented by the New Security Documents, are collectively
referred to herein as the "Security Documents."
The Security Interests secure the payment and performance when due of all of
the respective obligations of the Issuers and the Guarantors under the
Indenture, the Notes and the Guarantees.

The following documents
are referred to herein as the "New Note Documents":
(i) this Agreement, (ii) the New Notes (including the Guarantees), (iii) the
New Security Documents and (iv) the Credit Agreement Amendment. The following
documents are referred to herein as the "Original
Note Documents": (i) the Original Notes (including the
Guarantees), (ii) the Indenture and (iii) the Original Security Documents. The
New Note Documents, together with the Original Note Documents and the Security
Documents, are referred to herein as the "Note
Documents." The Company is party to a senior secured credit
facility (the "Senior Credit Facility"),
and in connection with the Senior Credit Facility, the Trustee, as Secured
Party, and the lenders thereunder or their agent entered into (and the Issuers
acknowledged) an intercreditor agreement substantially in the form attached as
an exhibit to the Indenture

 

 3
 

(the "Intercreditor Agreement"). The transactions
contemplated by the Note Documents, including, without limitation, the issuance
and sale of the New Notes in accordance with this Agreement, collectively are
referred to herein as the "Transactions."

Delivery to the Purchaser
of and payment for the Tranche 1 Notes shall be made at 9:00 a.m., New York
City time, on December 22, 2006 (the "Closing Date"),
and, following the issuance, sale and purchase of the Tranche I Notes, delivery
to the Purchaser of and payment for the Tranche 2 Notes shall be made at 10:00
a.m., New York City time, on the Closing Date, in each case at the offices of
Mayer, Brown, Rowe & Maw, LLP, 1675 Broadway, New York, New York 10019. The
Closing Date and the location of delivery of and the form of payment for the
New Notes may be varied by agreement between the Purchaser and the Issuers.

On the Closing Date, the Issuers
shall deliver to the Purchaser a certificate representing the Tranche 1 Notes
and a certificate representing the Tranche 2 Notes, each registered in the name
of the Purchaser, in an amount corresponding to the aggregate principal amount
of each of the Tranche 1 Notes and the Tranche 2 Notes, against payment by the
Purchaser of the Purchase Price therefor by immediately available Federal funds
bank wire transfer to such bank account as the Issuers shall designate to the
Purchaser.

On the Closing Date, in
connection with the Tranche 1 Notes, the Purchaser will pay to the Issuers, by
immediately available Federal funds bank wire transfer to such bank account as
the Issuers shall designate to the Purchaser, $192,500.00, representing the
amount of the interest payment to be made with respect to the Tranche 1 Notes
by the Issuers on April 15, 2007 (the first interest payment date on the New
Notes pursuant to the Indenture) less the amount of interest accruing from the
date hereof to April 15, 2007 (the "Tranche 1 Interest Set-off
Amount"). On the Closing Date, in connection with the Tranche 2
Notes, the Purchaser will pay to the Issuers, by immediately available Federal
funds bank wire transfer to such bank account as the Issuers shall designate to
the Purchaser, $160,416.67, representing the amount of the interest payment to
be made with respect to the Tranche 2 Notes by the Issuers on April 15, 2007
(the first interest payment date on the New Notes pursuant to the Indenture)
less the amount of interest accruing from the date hereof to April 15, 2007
(the "Tranche 2 Interest Set-off Amount").
As used in this Agreement, the term "Purchase Price" shall not
include the Tranche 1 Interest Set-off Amount of the Tranche 2 Interest Set-off
Amount.

3.  Agreements of the Issuer
and the Subsidiary Guarantors. Each of the Issuers
and the Subsidiary Guarantors, jointly and severally, hereby agrees:

(a)  Certain Events.
To (i) advise the Purchaser promptly after obtaining knowledge (and, if
requested by the Purchaser, confirm such advice in writing) of the issuance by
any state securities commission of any stop order suspending the qualification
or exemption from qualification of any of the New Notes for offer or sale in
any jurisdiction, or the initiation of any proceeding for such purpose by any
state securities commission or other regulatory authority, (ii) use its
reasonable best efforts to prevent the issuance of any stop order or order
suspending the qualification or exemption from qualification of any of the New
Notes under any state securities or Blue Sky laws, and (iii) if at any time any
state securities commission or other regulatory authority shall issue an order
suspending the qualification or exemption from qualification of any

 

 4
 

of the New Notes under any such laws, use its reasonable best efforts
to obtain the withdrawal or lifting of such order at the earliest practicable
time.

(b)  Costs and Expenses.
Whether or not the offer and sale of New Notes contemplated hereby is
consummated or this Agreement is terminated, to pay (i) all costs, expenses,
fees and taxes incident to and in connection with the performance of the
obligations of the Issuers and the Subsidiary Guarantors under this Agreement,
including the preparation, issuance and delivery of the New Notes, including
the fees and expenses of the Trustee and the Secured Party (including fees and
expenses of their respective counsel) and the cost of their respective
personnel, and all costs and expenses related to the delivery of the New Notes
to the Purchaser, including any transfer or other taxes payable thereon; (ii)
all fees and expenses of the counsel and accountants of the Issuers and their
respective direct and indirect parents and subsidiaries; (iii) the costs and
charges of any transfer agent, registrar and or depositary (including DTC),
(iv) all costs and expenses in connection with the continuation of the
perfection, priority, effectiveness and enforceability of the Security
Interests; and (v) all fees and expenses (including reasonable fees and expenses
of counsel) incurred by the Purchaser in connection with the preparation,
negotiation and execution, as applicable, of the New Note Documents and any
other agreements or documents in connection with the Transactions and the
consummation of the Transactions.

(c)  Waiver of Certain Laws.
To the extent it may lawfully do so, not to insist upon, plead, or in any
manner whatsoever claim or take the benefit or advantage of, any stay,
extension usury or other law, wherever enacted, now or at any time hereafter in
force, that would prohibit or forgive the payment of all or any portion of the
principal of or interest on the New Notes, or that may affect the covenants or
the performance of the Indenture or any of the Security Documents (and, to the
extent it may lawfully do so, each Issuer and each Subsidiary Guarantor 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 granted to the Trustee in the Indenture or to the Secured Party in
the Security Documents but shall suffer and permit the execution of every such
power as though no such law had been enacted),

(d)  Security Interests.
To do and perform all things required to be done and performed under the
Security Documents prior to, on and after the Closing Date, including, without
limitation, all things that are required to be done and performed under the
Security Documents that are necessary or reasonably advisable to continue the
perfection, priority, effectiveness and enforceability of the Security
Interests.

(e)  Integration.
Not to, and to ensure that no affiliate (as defined in Rule 501(b) under the
Act) of any of the Issuers or the Subsidiary Guarantors will, sell, offer for
sale or solicit offers to buy or otherwise negotiate in respect of any
"security" (as defined in the Act) that would be integrated with the
sale of the New Notes in a manner that would require the registration under the
Act of the sale to the Purchaser.

(f)  Rule 144A Information.
For so long as any of the Notes remain outstanding, during any period in which
any of the Issuers is not subject to Section 13 or 15(d) of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"),
to make available, upon

 

 5
 

request,
to any holder of the New Notes in connection with any sale thereof and any
prospective Eligible Purchaser (as defined below) of such New Notes from such
holder, the information required by Rule 144A(d)(4) under the Act. "Eligible Purchaser" for purposes of this Agreement
shall mean any of the following: (i) persons whom the Purchaser reasonably
believes to be "qualified institutional buyers," as defined in Rule
144A under the Act ("QIBs"),
(ii) non-U.S. persons to which New Notes are sold in reliance upon Regulation S
under the Act ("Regulation S Purchasers"),
and (iii) a limited number of institutional "accredited investors,"
as defined in Rule 501(a)(1), (2), (3) or (7) under the Act that make certain
representations and warranties to the Purchaser.

(g)  DTC. To comply
with the representation letter of the Issuers to DTC relating to the approval
of the Notes by DTC for "book entry" transfer,

(h)  No Selling Efforts or
General Solicitation. Not to, and not to authorize or permit any
person acting on its behalf to, (i) distribute any offering material in
connection with the offer and sale of the New Notes in violation of the Act or
(ii) solicit any offer to buy or offer to sell the New Notes by means of any
form of general solicitation or general advertising (including, without
limitation, as such terms are used in Regulation D under the Act) or in any
manner involving a public offering within the meaning of Section 4(2) of the
Act.

(i)  Performance of this
Agreement. To do and perform in all material respects all things
required or necessary to be done and performed on its part under this Agreement
on or prior to the Closing Date and to satisfy in all material respects all
conditions precedent to the delivery of the New Notes.

(j)  Further Assurances.
Following the Closing Date, the Issuers and the Subsidiary Guarantors shall
cooperate with the Purchaser and shall take such actions as are reasonably
requested by the Purchaser to permit the Purchaser to offer, market and sell
the New Notes to Eligible Purchasers (the "Resale"),
including, without limitation, (i) providing the Purchaser and its advisors
with such documents, information and access to properties and employees as is
reasonably necessary to conduct a due diligence investigation customary in a
registered offering, (ii) delivering such documents and certificates as may be
reasonably requested by the Purchaser, including customary opinions of counsel,
"cold comfort" letters, a registration rights agreement and other
documents and agreements (including indemnification for disclosure in the
offering document) comparable to those provided pursuant to the Note Purchase
Agreement (taking into account changes in securities laws), (iii) preparing
with the Purchaser's assistance an offering document for use in connection with
the Resale and such other documents as the Purchaser reasonably determines are
appropriate for the Resale, (iv) obtaining any governmental, gaming, racing,
Iiquor or other regulatory approvals necessary or advisable in connection with
the Resale (including quotation of the New Notes in The Portal Market and
qualification of the Resale under applicable state securities laws), (v)
participating in customary efforts to offer, market and sell the New Notes,
including, without limitation, "road shows" or other investor
meetings, and securing the reasonable participation of its senior management
for such purposes, (vi) cooperating with the Purchaser, the Trustee and DTC to
prepare certificates evidencing the New Notes so resold and making the New Notes
so resold eligible for book-entry at DTC and taking such actions as are
necessary so that the New Notes will have the same CUSIP

 

 6
 

number
as, and will be fungible with, the 8 3/4%
Senior Secured Notes due 2012, Series B, once the Notes issued in exchange for
the New Notes have been registered under the Act, and (vii) using commercially
reasonable efforts to take all other steps necessary to effect the Resale.

The provisions of
this Section 3 shall survive delivery of and payment for the New Notes.

4.  Representations and
Warranties of the Issuers and the Subsidiary Guarantors.
Each of the Issuers and the Subsidiary Guarantors, jointly and severally,
represents and warrants to the Purchaser that:

(a)  144A Eligibility.
There are no securities of the same class (within the meaning of Rule 144A) as
the New Notes of any of the Issuers or any of the Subsidiary Guarantors
registered under the Exchange Act or listed on a national securities exchange
registered under Section 6 of the Exchange Act or quoted in a United States
automated inter-dealer quotation system. The New Notes are eligible for resale
pursuant to Rule 144A under the Act.

(b)  Due Organization; Good
Standing. Each of the Issuers and the Subsidiary Guarantors (i) has
been duly organized, is validly existing and is in good standing under the laws
of its jurisdiction of organization, (ii) has all requisite power and authority
to conduct and carry on its business and to own, lease, use and operate its
properties and assets, and (iii) is duly qualified or licensed to do business
and is in good standing as a foreign limited liability company or corporation,
as the case may be, authorized to do business in each jurisdiction in which the
nature of its business or the ownership, leasing, use or operation of its
properties and assets requires such qualification or licensing, except where
the failure to be so qualified or licensed would not, singly or in the
aggregate, have a material adverse effect on (A) the properties, business,
prospects, operations, earnings, assets, liabilities or condition (financial or
otherwise) of the issuers and the Subsidiary Guarantors, taken as a whole, (B)
the ability of any Issuer or Subsidiary Guarantor to perform its obligations in
all material respects under any of the Note Documents to which it is a party or
to consummate in all material respects the offer and sale of the New Notes, (C)
the enforceability of any of the Security Documents to which it is a party or
the attachment, perfection or priority of any of the Security Interests
intended to be created thereby in any portion of the Collateral in which it has
an interest or (D) the validity of any of the Note Documents to which it is a
party or the consummation of the offer and sale of the New Notes (each, a
"Material Adverse Effect").

(c)  Subsidiaries.
The corporate structure of the Issuers and the Subsidiary Guarantors (including
all of their subsidiaries) is as set forth on Schedule 4(c) hereto. PGL
directly owns 100% of the outstanding shares of capital stock or membership
interests of DJL, PGC and each Subsidiary Guarantor, free and clear of all
Liens (as defined in the Indenture), except for Liens created by the Indenture,
Liens created by the Security Documents and Permitted Liens (as defined in the
Indenture), and Peninsula Gaming Partners, LLP, a Delaware limited liability
partnership, directly owns 100% of the outstanding membership interests in PGL
(except for the Seller Preferred (as defined in the Indenture)), free and clear
of all Liens, except for Liens created by the Indenture and the Security
Documents. Except as disclosed in the Issuers' Form 10-K for the year ended
December 31, 2005, the Issuer's Form 10-Qs for the quarters ended

 7
 

March
31, 2006, June 30, 2006 and September 30, 2006 and in any Current Reports on
Form 8-K filed by the Issuers since January 1, 2006 and prior to the date of
this Agreement (collectively, the "SEC Filings"),
there are no outstanding (i) securities convertible into or exchangeable for
any capital stock of or any membership interests in, as the case may be, any of
the Issuers or the Subsidiary Guarantors, (ii) options, warrants or other
rights to purchase or subscribe for any capital stock of or any membership
interests in, or any securities convertible into or exchangeable for any capital
stock of or any membership interests in, as the case may be, any of the Issuers
or the Subsidiary Guarantors or (iii) contracts, commitments, agreements,
understandings, arrangements, undertakings, rights, calls or claims of any kind
relating to the issuance of any capital stock of or any membership interests
in, as the case may be, any of the Issuers or the Subsidiary Guarantors, any
such convertible or exchangeable securities or any such options, warrants or
rights. Except as set forth on Schedule 4(c) hereto, none of the Issuers
or the Subsidiary Guarantors directly or indirectly owns any capital stock of
or other equity interest in any person.

(d)  Power and Authority.
Each of the Issuers and the Subsidiary Guarantors has (or had, at the time of
execution and delivery, if executed and delivered prior to the date hereof) all
requisite power and authority to execute and deliver the Note Documents to
which it is a party, and has all requisite power and authority to perform its
obligations under the Note Documents to which it is a party and to consummate
the offer and sale of the New Notes.

(e)  Authorization of this
Agreement. This Agreement and the Transactions contemplated hereby
(including, without limitation, the offer and sale of the New Notes in accordance
with this Agreement) have been duly authorized by each of the Issuers and the
Subsidiary Guarantors, and this Agreement has been validly executed and
delivered by each of the Issuers and the Subsidiary Guarantors. This Agreement
is the legal, valid and binding obligation of each of the Issuers and the
Subsidiary Guarantors , enforceable against each of the Issuers and the
Subsidiary Guarantors in accordance with its terms, except to the extent that
(i) such enforceability may be limited by applicable bankruptcy, insolvency or
similar laws affecting creditors' rights generally and (ii) any rights of
acceleration and the availability of equitable remedies may be subject to
general principles of equity (whether considered in a proceeding in equity or at
law).

(t)  Authorization of Notes.
The New Notes have been duly authorized by each of the Issuers for issuance and
sale to the Purchaser pursuant to this Agreement and, on the Closing Date, will
have been validly executed, authenticated, issued and delivered by the Issuers
in accordance with the terms of this Agreement and the Indenture. The issuance
of each of the Tranche 1 Notes and the Tranche 2 Notes is authorized under and
in compliance with the Indenture. When the New Notes have been issued and executed
by the Issuers and authenticated by the Trustee in accordance with the terms of
the Indenture and delivered to and paid for by the Purchaser in accordance with
the terms of this Agreement, the New Notes will be the legal, valid and binding
obligations of each of the Issuers, entitled to the benefits of the Indenture
and enforceable against each of the Issuers in accordance with their terns,
except to the extent that (i) such enforceability may be limited by applicable
bankruptcy, insolvency or similar laws affecting creditors' rights generally
and (ii) any rights of acceleration and the availability of equitable remedies
may be subject to general principles of equity (whether considered in a
proceeding in

 8
 

equity
or at law). Upon and following delivery to the Purchaser, the New Notes will
rank on a parity with all senior Indebtedness (as defined in the Indenture) of
each of the Issuers that is outstanding on the date hereof or that may be
incurred hereafter and senior to all other Indebtedness of each of the Issuers
that is outstanding on the date hereof or that may be incurred hereafter;
provided, that pursuant to the Intercreditor Agreement, the Lien on the
Collateral securing the Credit Facility is senior to the Lien on the Collateral
securing the Notes and the Guarantees to the extent provided in the Intercreditor
Agreement.

(g)  Authorization of
Guarantees of New Notes. The Guarantee to be endorsed on the New
Notes by each Subsidiary Guarantor has been duly authorized by each such
Subsidiary Guarantor and, on the Closing Date, will have been validly executed
and delivered by each such Subsidiary Guarantor in accordance with the terms of
the Indenture. When the New Notes have been issued, executed and authenticated
in accordance with the terms of the Indenture and delivered to and paid for by
the Purchaser in accordance with the terms of this Agreement, the Guarantee of
each Subsidiary Guarantor endorsed on the New Notes will be the legal, valid
and binding obligation of each such Subsidiary Guarantor, enforceable against
each such Subsidiary Guarantor in accordance with its terms, except to the
extent that (i) such enforceability may be limited by applicable bankruptcy,
insolvency or similar laws affecting creditors' rights generally and (ii) any
rights of acceleration and the availability of equitable remedies may be
subject to general principles of equity (whether considered in a proceeding in
equity or at law). The Guarantees to be endorsed on the New Notes rank and will
rank on a parity with all senior Indebtedness of the Subsidiary Guarantors that
is outstanding on the date hereof or that may be incurred hereafter and senior
to all subordinated Indebtedness of the Subsidiary Guarantors that is
outstanding on the date hereof or that may be incurred hereafter; provided, that pursuant to the Intercreditor Agreement, the
Lien on the Collateral securing the Credit Facility will be senior to the Lien
on the Collateral securing the Notes and the Guarantees to the extent provided
in the Intercreditor Agreement.

(h)  Authorization of Indenture.
The Indenture and the Transactions contemplated thereby have been duly
authorized by each of the Issuers and the Subsidiary Guarantors, and the
Indenture and has been validly executed and delivered by each of the Issuers
and the Subsidiary Guarantors. The Indenture is the legal, valid and binding
obligation of each of the Issuers and the Subsidiary Guarantors enforceable
against each of the Issuers and the Subsidiary Guarantors in accordance with
its terms, except to the extent that (i) such enforceability may be limited by
applicable bankruptcy, insolvency or similar laws affecting creditors' rights
generally and (ii) any rights of acceleration and the availability of equitable
remedies may be subject to general principles of equity (whether considered in
a proceeding in equity or at law).

(i)  Authorization of Security
Documents. Each of the Original Security Documents, the New Security
Documents and the Transactions contemplated thereby (including, without
limitation, the creation, grant, recording and perfection of the Security
Interests, the execution and filing of financing statements and the payment of
any fees and taxes in connection therewith) have been duly authorized by each
of the Issuers and the Subsidiary Guarantors, to the extent party thereto. Each
of the Original Security Documents has been, and on the Closing Date, each of
the New Security Documents will have been, validly executed and delivered by
the

 9
 

Issuers
and the Subsidiary Guarantors, to the extent party thereto. Each of the
Original Security Documents has been amended in compliance with Article 9 of
the Indenture and each of the New Security Documents is authorized under and in
compliance with Article 9 of the indenture. On the Closing Date, each of the
Security Documents will be, the legal, valid and binding obligation of each of
the Issuers and the Subsidiary Guarantors, to the extent party thereto,
enforceable against each of the Issuers and the Subsidiary Guarantors, to the
extent party thereto, in accordance with its terms, except to the extent that
(i) such enforceability may be limited by applicable bankruptcy, insolvency or
similar laws affecting creditors' rights generally and (ii) any rights of
acceleration and the availability of equitable remedies may be subject to
general principles of equity (whether considered in a proceeding in equity or
at law).

(j)  Security Interests.
Each of the Original Security Documents to which any of the Issuers or the
Subsidiary Guarantors is a party creates (and, on the Closing Date, each of the
New Security Documents will create), in favor of the Secured Party for the
benefit of the holders of the New Notes, a legal, valid and enforceable
security interest in (subject to Permitted Liens) all of' the right, title and
interest of the Issuers and the Subsidiary Guarantors, as the case may be, in
the Collateral covered by the Security Documents and the proceeds thereof. The
Collateral is subject to no Liens other than Permitted Liens.

(k)  Authorization of Credit Agreement
Amendment. The Credit Agreement Amendment has been duly authorized
by each of DJL and OED, and the Credit Agreement Amendment has been validly
executed and delivered by each of DJL and OED. The Credit Agreement Amendment
is the legal, valid and binding obligation of each of DJL and OED enforceable
against each of DJL and OED in accordance with its terms, except to the extent
that (i) such enforceability may be limited by applicable bankruptcy,
insolvency or similar laws affecting creditors' rights generally and (ii) any
rights of acceleration and the availability of equitable remedies may be
subject to general principles of equity (whether considered in a proceeding in
equity or at law).

(l)  No Registration.
Without limiting Sections 4(o) and 4(p), no registration under
the Act, and no qualification of the Indenture under the TIA is required for
the sale of the New Notes to the Purchaser as contemplated hereby, assuming the
accuracy of the Purchaser's representations contained in Section 5 of
this Agreement, No forth of general solicitation or general advertising
(including, without limitation, as such terms are defined in Regulation D under
the Act) was used by any of the Issuers or any of the Subsidiary Guarantors or
any of their respective affiliates or any of their respective representatives
in connection with the offer and sale of any of the New Notes. No securities of
the same class as the New Notes have been offered, issued or sold by any of the
Issuers or any of the Subsidiary Guarantors or any of their respective
affiliates within the six-month period immediately prior to the date hereof.

(m)  No Violation.
Neither DJL nor PGL is in violation of its certificate of formation or
operating agreement (collectively, the "Company
Charter Documents"), PGC is not in violation of its charter or
bylaws (the "Capital Charter Documents"),
and none of the Subsidiary Guarantors is in violation of its certificate of
formation, operating agreement, charter or bylaws, as applicable (the "Subsidiary Guarantor Charter Documents" and,
collectively with the Company Charter Documents and the Capital Charter
Documents, the "Charter

 10
 

Documents").
None of the Issuers or the Subsidiary Guarantors is (i) in violation of any
Federal, state, municipal, county, parish, local or foreign statute, law,
ordinance or standard applicable to it, or any judgment, decree, rule,
regulation or order applicable to it (including, without limitation, common law
and Chapter 99F of the Code of Iowa (1999), the Iowa Racing and Gaming Commission,
the Louisiana Parr-Mutuel Live Racing Facility Economic Redevelopment and
Gaming Control Act, the Louisiana Gaming Control Law and the Video Draw Poker
Device Control Law) in each case including the rules and regulations
promulgated thereunder (collectively, "Applicable
Law"), of any government, governmental or regulatory agency or
body (including, without limitation, the Iowa Racing and Gaming Commission, the
Louisiana Gaming Control Board, the Louisiana State Racing Commission or other
applicable gaming or racing authority) (each, a "Gaming
Authority"), court, arbitrator or self-regulatory organization,
domestic or foreign (each, a "Governmental Authority")
or (ii) in breach of or default under any bond, debenture, note or other
evidence of indebtedness, indenture, mortgage, deed of trust, lease or any
other agreement or instrument to which any such person is a party or by which
any of them or any of their respective property is bound (collectively, "Applicable Agreements"), other than, in the case of each
of the immediately preceding clauses (i) and (ii), violations, breaches or
defaults that would not, singly or in the aggregate, have a Material Adverse
Effect. There exists no condition that, with the passage of time or otherwise,
would reasonably be expected to (x) constitute a violation of (A) the Charter
Documents or (B) Applicable Laws or (y) constitute a breach of or default under
any Applicable Agreement or (z) result in the imposition of any penalty or the
acceleration of any indebtedness, other than, in the case of the immediately
preceding clauses (x)(B),(y) and (z), such violations, breaches, penalties or
defaults that would not, singly or in the aggregate, have a Material Adverse
Effect. All Applicable Agreements are in full force and effect with respect to
the Issuers and the Subsidiary Guarantors, and are legal, valid and binding
obligations of the Issuers and the Subsidiary Guarantors.

(n)  No Conflict.
None of the execution, delivery or performance of any of the Note Documents
(including, without limitation, the issuance and sale of each of the Tranche 1
Notes and the Tranche 2 Notes), nor the compliance with the terms and
provisions thereof, nor the consummation of any of the Transactions, shall
conflict with, violate, constitute a breach of or a default (with the passage
of time or otherwise) under, result in the imposition of a Lien on any assets
of or any capital stock of or membership interests in any of the Issuers or the
Subsidiary Guarantors (except for Liens created by the Indenture, Liens created
by the Security Documents and Permitted Liens), or result in an acceleration of
indebtedness under or pursuant to, (i) the Charter Documents, (ii) any
Applicable Agreement, (iii) in the case of the New Note Documents, any Original
Note Document (including the indenture), or (iv) (assuming the accuracy of the
representations and warranties of the Purchaser in Section 5 of this
Agreement) any Applicable Law, other than, in the case of the immediately
preceding clauses (ii) and (iv), such violations, breaches or defaults that
would not, singly or in the aggregate, have a Material Adverse Effect. After
giving effect to the Transactions contemplated hereby, no Default or Event of
Default (each, as defined in the Indenture) will exist.

(o)  Permits. Assuming
the accuracy of the representations and warranties of the Purchaser in Section
5 of this Agreement and except as disclosed in the SEC Filings, no permit,
certificate, authorization, approval, consent, license or order of, or filing,
registration, declaration or qualification with, any Governmental Authority or
any other person (collectively, "Permits")

 

 11
 

is
required to own, lease, use and operate its properties and assets and to
conduct and carry on its businesses, or in connection with, or as a condition
to, the execution, delivery or performance of any of the Note Documents, the
compliance with the terms and provisions thereof or the consummation of any of
the Transactions, other than (i) such Permits as have been made or obtained on
or prior to the Closing Date, which Permits are in full force and effect on the
Closing Date, (ii) such Permits that may be required to permit the Resale and
the other transactions contemplated by Section 3(j), and (ii) such
Permits, the failure of which to make or obtain would not, singly or in the
aggregate, have a Material Adverse Effect.

(p)  No Proceedings.
Except as disclosed in the SEC Filings, and other than ongoing general
licensing investigations conducted in the ordinary course of business, there is
no action, claim, suit, demand, hearing, notice of violation or deficiency, or
proceeding (including, without limitation, any investigation or partial proceeding,
such as a deposition), domestic or foreign (collectively, "Proceedings"), pending or, to the knowledge of the
Issuers and the Subsidiary Guarantors, threatened, either (i) in connection
with, or that seeks to restrain, enjoin or prevent the consummation of, or that
otherwise objects to, any of the Note Documents or any of the Transactions, or
(ii) that could, singly or in the aggregate, have a Material Adverse Effect.
None of the Issuers or the Subsidiary Guarantors is subject to any judgment,
order, decree, rule or regulation of any Governmental Authority that could,
singly or in the aggregate, have a Material Adverse Effect. No injunction or
order has been issued and no Proceeding is pending or, to the knowledge of the
Issuers and the Subsidiary Guarantors, threatened that (i) asserts that the
offer, sale and delivery of' the New Notes to the Purchaser pursuant to this
Agreement is subject to the registration requirements of the Act, or (ii) would
prevent or suspend the issuance or sale of the New Notes.

(q)           Related Persons.
Except as set forth on Schedule 4(q) hereto, each of the Issuers' and
the Subsidiary Guarantors' respective directors, officers, key personnel,
partners, members and persons holding a five percent or greater equity or
economic interest in the Issuers (each of such persons, a "Regulated Person" and, collectively, the "Regulated Persons") has all Permits (including, without
limitation, Permits with respect to engaging in gaming or racing operations)
necessary or advisable to own, lease, use and operate the properties and assets
and to conduct and carry on the businesses of the Issuers and the Guarantors,
other than such Permits the failure of which to have would not, singly or in
the aggregate, have a Material Adverse Effect (a "Material
Permit"). All Material Permits are valid and in full force and
effect. Each of the Regulated Persons is in compliance with the terms and
conditions of all Permits (including, without limitation, Permits with respect
to engaging in gaming or racing operations) necessary or advisable to own,
lease, use and operate the properties and assets and to conduct and carry on
the businesses of the Issuers and the Guarantors, other than where such failure
to be in compliance would not, singly or in the aggregate, have a Material
Adverse Effect. None of the execution, delivery or performance of any of the
Note Documents, nor the compliance with the terms and provisions thereof, nor
the consummation of any of the Transactions, will allow or result in, and no
event has occurred which allows or results in, or after notice or lapse of time
would allow or result in, the imposition of any material penalty under, or the
revocation or termination of, any Material Permit or any material impairment of
the rights of the holder of any Material Permit. None of the Issuers or the
Subsidiary Guarantors has received any notice from any issuer, and the

 

 12
 

Issuers
and the Subsidiary Guarantors have no actual knowledge, that any issuer is
considering limiting, conditioning, suspending, modifying, revoking or not
renewing any Material Permit.

(r)  No Investigations of
Regulated Persons. To the knowledge of the Issuers and the
Subsidiary Guarantors, except as disclosed in the SEC Filings, no Gaming
Authority is investigating any Regulated Person, other than ongoing general
licensing investigations conducted in the ordinary course of business.

(s)  Title to Assets.
Each of the Issuers and the Subsidiary Guarantors (i) has good and marketable
title, free and clear of all Liens (other than Liens created by the Indenture,
Liens created by the Security Documents and Permitted Liens), to all of the
property and assets owned by it and (ii) holds a valid leasehold interest with
respect to each such lease and will remain in possession of the real property
leased pursuant to those leases until the date the lease expires in accordance
with its terms. PGC has no assets, other than assets received in payment for
its capital stock.

(t)  Sufficiency and Condition
of Assets. The assets of each of the Issuers and the Subsidiary
Guarantors include all of the assets and properties necessary or required in,
or otherwise material to, the conduct of the businesses of each of them as
currently conducted and as proposed to be conducted (as described in the SEC
Filings), and such assets are in working condition, except where the failure of
such assets to be in working condition would not, singly or in the aggregate,
have a Material Adverse Effect. Without limiting the foregoing, each of the
properties of the Issuers and the Subsidiary Guarantors (including, without
limitation, all buildings, structures, improvements and fixtures located
thereon, thereunder, thereover or therein, and all appurtenances thereto and
other aspects thereof) is otherwise suitable, sufficient, adequate and
appropriate in all respects (including physical, structural, operational,
legal, practical and otherwise) for its current and proposed use, operation and
occupancy, except, in each such case, for such failures to meet such standards
as would not, singly or in the aggregate, have a Material Adverse Effect.

(u)  Insurance. Each
of the Issuers and the Subsidiary Guarantors maintains reasonably adequate
insurance covering its properties, operations, personnel and businesses against
losses and risks in accordance with customary industry practice. All such
insurance is outstanding and duly in force.

(v)  Real Property.
No condemnation, eminent domain, or similar proceeding exists, is pending or,
to the knowledge of the Issuers and the Subsidiary Guarantors, is threatened,
with respect to or that could affect any real properties owned by any of the
Issuers or the Subsidiary Guarantors, except for such proceedings as would not,
singly or in the aggregate, have a Material Adverse Effect. No real property
owned by any of the Issuers or the Subsidiary Guarantors is subject to any
sales contract, option, right of first refusal or similar agreement or
arrangement with any third party. There is no real property currently under
contract or subject to an option in favor of any of the Issuers or the
Subsidiary Guarantors, except for real property which the failure of the Issuers
or the Subsidiary Guarantors to acquire, would not, singly or in the aggregate,
have a Material Adverse Effect.

 

 13

(w)  SEC Filings The SEC Filings, at the time filed with the
Commission conformed in all material respects to the requirements of the
Exchange Act or the Act, as applicable, and the rules and regulations of the
Commission thereunder, and did not contain any untrue statement of a material
fact and did not omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading.

(x)  Taxes. All material tax returns required to be filed by any
of the Issuers or the Subsidiary Guarantors in any jurisdiction (including
foreign jurisdictions) have been filed and, when filed, all such returns were
accurate in all material respects, and all taxes, assessments, fees and other
charges (including, without limitation, withholding taxes, penalties and
interest) due or claimed to be due from any of the Issuers or the Subsidiary
Guarantors have been paid, other than those being contested in good faith by
appropriate proceedings, or those that are currently payable without penalty or
interest and, in each case, for which an adequate reserve or accrual has been
established on the books and records of the Issuers or the Subsidiary
Guarantors, as applicable, in accordance with generally accepted accounting
principles of the United States, consistently applied ("GAAP"). There are no actual or proposed additional tax
assessments for any tax period against any of the Issuers or the Subsidiary
Guarantors that would, singly or in the aggregate, reasonably be expected to
have a Material Adverse Effect. The charges, accruals and reserves on the books
and records of the Issuers or the Subsidiary Guarantors, as applicable, in
respect of any tax liability for any tax periods not finally determined are
adequate to meet any assessments of tax or re-assessments of additional tax for
any such period.

(y)  Intellectual Property. The Issuers and the Subsidiary
Guarantors own, possess or are licensed under, and have the right to use, all
trademarks, service marks, trade names and other intellectual property
(collectively, "Intellectual Property")
currently used in and material to the conduct of their business, free and clear
of all Liens, other than Permitted Liens. To the knowledge of the Issuers and
the Subsidiary Guarantors, no claims have been asserted by any person
challenging the use of any such Intellectual Property by any of the Issuers and
there is no valid basis for any such claim, and the use of such Intellectual
Property by the Issuers or the Subsidiary Guarantors will not infringe on the
Intellectual Property rights of any other person.

(z)  Accounting Controls. Each of the Issuers and the Subsidiary
Guarantors maintains a system of internal accounting controls sufficient to
provide reasonable assurance that (i) material transactions are executed in
accordance with management's general or specific authorization, (ii) material
transactions are recorded as necessary to permit preparation of financial
statements in conformity with GAAP, and to maintain asset accountability, (iii)
access to assets is permitted only in accordance with management's general or
specific authorization, and (iv) the recorded accountability for assets is
compared with the existing assets at reasonable intervals and appropriate
action is taken with respect to any material differences.

(aa)         Disclosure Controls. Each of the Issuers and the Subsidiary
Guarantors has established and maintains and evaluates "disclosure
controls and procedures" (as such term is defined in Rule 13a-15 and
15d-15 under the Exchange Act) and "internal control over fmancial
reporting" (as such term is defined in Rule 13a-15 and 15d-15 under the
Exchange Act). Such disclosure controls and procedures are designed to ensure
that material information relating to the

 14
 

Issuers, including their consolidated subsidiaries, is made known to
the Issuers' Chief Executive Officer and Chief Financial Officer by others
within those entities, and, except as disclosed in the SEC Filings, such
disclosure controls and procedures are effective to perform the functions for which
they were established. The Issuers' independent auditors and boards of
directors have been advised of: (i) all significant deficiencies, if any, in
the design or operation of internal controls which could adversely affect any
of the Issuers' and the Subsidiary Guarantors' ability to record, process,
summarize and report financial data; and (ii) all fraud, if any, whether or not
material, that involves management or other employees who have a role in any of
the Issuers' or the Subsidiary Guarantors' internal controls. All material
weaknesses, if any, in internal controls have been identified to the Issuers'
and the Subsidiary Guarantors' independent auditors. Since the date of the most
recent evaluation of such disclosure controls and procedures and internal
controls, there have been no significant changes in internal controls or in
other factors that could significantly affect internal controls, including any
corrective actions with regard to significant deficiencies and material
weaknesses. The principal executive officers (or their equivalents) and
principal financial officers (or their equivalents) of each of the Issuers and
the Subsidiary Guarantors have made all certifications required by the
Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act")
and any related rules and regulations promulgated by the Commission, and the
statements contained in each such certification are complete and correct. The
Issuers, the Subsidiary Guarantors and their respective directors and officers
are each in compliance in all material respects with all applicable effective
provisions of the Sarbanes-Oxley Act and the rules and regulations of the
Commission promulgated thereunder.

(bb)         Financial Statements. The audited historical consolidated
financial statements and related notes of PGL and its subsidiaries contained in
the SEC Filings (the "Company Financial
Statements") present fairly in all material respects the
consolidated financial position, results of operations and cash flows of PGL
and its subsidiaries as of the respective dates and for the respective periods
to which they apply, and have been prepared in accordance with GAAP
consistently applied throughout the periods involved. Immediately following
each Closing, except for their liabilities under the New Notes issued pursuant
to this Agreement, none of the Issuers or the Guarantors will have any
liabilities, absolute, accrued, contingent or otherwise other than: (i)
liabilities that are reflected in the Company Financial Statements (as defined
below) or (ii) liabilities incurred subsequent to September 30, 2006 (the
"Balance Sheet Date"), in the
ordinary course of business, that would not, singly or in the aggregate, have a
Material Adverse Effect. Nothing has come to the attention of the Issuers that
would indicate that the Company Financial Statements are not true and correct
in all material respects as of their respective dates.

(cc)         No Material Adverse Change. Subsequent to the Balance Sheet
Date, except as disclosed in the SEC Filings, (i) none of the Issuers or the
Subsidiary Guarantors has incurred any liabilities, direct or contingent, that
are material, singly or in the aggregate, to any of them, or has entered into
any material transactions not in the ordinary course of business, (ii) there
has not been any material decrease in the capital stock or membership
interests, as the case may be, or any material increase in long-term
indebtedness or any material increase in short-term indebtedness of any of the
Issuers or the Subsidiary Guarantors, or any payment of or declaration to pay
any dividends or any other distribution with respect to any of the Issuers or
the Subsidiary Guarantors, and (iii) there has not been any material adverse
change in the properties, business,

 

 15
 

prospects, operations, earnings, assets, liabilities or condition
(financial or otherwise) of the Issuers and the Subsidiary Guarantors taken as
a whole (each of clauses (i) and (iii), a "Material
Adverse Change"). To the actual knowledge of the Issuers after
reasonable inquiry, there is no event that is reasonably likely to occur, which
if it were to occur, could, singly or in the aggregate, reasonably be expected
to have a Material Adverse Effect, except as disclosed in the SEC Filings.

(dd)         Solvency. Each of the Issuers and the Subsidiary Guarantors
is incurring its respective indebtedness under the New Notes for proper
purposes and in good faith. Immediately before and after giving effect to the
issuance of the New Notes, for the Issuers (on a consolidated basis with the
Subsidiary Guarantors) and for each of the Subsidiary Guarantors, in all cases
considered as going concerns, (i) its assets at a fair valuation, exceeds the
sum of its debts; (ii) the present fair salable value of its assets is not less
than the amount that will be required to pay its probably liability on its
existing debts as they become absolute and matured, (iii) it has and will have
adequate capital with which to conduct the business it is presently conducting
and presently anticipates conducting; and (iv) it does not intend to incur, and
does not believe and reasonably should not believe that it will incur, debts
beyond its ability to pay as those debts become due. Neither the Issuers nor
any Subsidiary Guarantor is aware of any reason why it would be inappropriate
to consider the Issuers or the Subsidiary Guarantors as a going concern. For
purposes of this paragraph, "debts" includes contingent and
unliquidated debts, at a fair valuation.

(ee)         ERISA. Neither of the Issuers or any of the Subsidiary
Guarantors nor any of their respective "Affiliates" maintains a plan
that is intended to qualify under Section 401(a) of the Code, or is a
"party in interest" or a "disqualified person" with respect
to any employee benefit plans. No condition exists or event or transaction has
occurred in connection with any employee benefit plan that could result in
either of the Issuers or any such "Affiliate" incurring any
liability, fine or penalty that could, singly or in the aggregate, have a
Material Adverse Effect. Neither of the Issuers or any of the Subsidiary
Guarantors nor any trade or business under common control with the Issuers or
the Subsidiary Guarantors (for purposes of Section 414(c) of the Code)
maintains any employee pension benefit plan that is subject to Title IV of the
Employee Retirement Income Act of 1974, as amended, or the rules and
regulations promulgated thereunder ("ERISA").

The terms "employee benefit plan,"
"employee pension benefit plan," and "party in interest"
shall have the meanings assigned to such terms in Section 3 of ERISA. The term
"Affiliate" shall have the meaning assigned to such term in Section
407(d)(7) of ERISA, and the term "disqualified person" shall have the
meaning assigned to such term in section 4975 of the Internal Revenue Code of
1986, as amended, or the rules, regulations and published interpretations
promulgated thereunder (collectively the "Code").

(ff)           Investment Company Act and Other Federal Regulations. None
of the Issuers or the Subsidiary Guarantors has taken, and none of them will
take, any action that may cause this Agreement or the issuance of the New Notes
to violate or result in a violation of Section 7 of the Exchange Act
(including, without limitation, Regulation T (12 C.F.R. Part 220), Regulation U
(12 C.P.R. Part 221) or Regulation X (12 C.F.R. Part 224) of the Board of

 

 16
 

Governors of the Federal Reserve System). None of the Issuers or the
Subsidiary Guarantors is subject to regulation, or shall become subject to
regulation upon the consummation of the offering and sale of the New Notes and
the application of the net proceeds thereof, under the Investment Company Act
of 1940, as amended, and the rules and regulations and interpretations
promulgated thereunder. The Company intends to use the net proceeds from the
sale of the New Notes for general corporate purposes.

(gg)         No Brokers. None of the Issuers or the Subsidiary Guarantors
has dealt with any broker, finder, commission agent or other person (other than
the Purchaser) in connection with the offer and sale of the New Notes and none
of the Issuers or the Subsidiary Guarantors is under any obligation to pay any
broker's fee or commission in connection with the offer and sale of the New
Notes.

(hh)         No Labor Disputes. Except as would not, singly or in the
aggregate, reasonably be expected to have a Material Adverse Effect, none of
the Issuers or the Subsidiary Guarantors is engaged in any unfair labor
practice. There is (i) no unfair labor practice complaint or other proceeding
pending or, to the knowledge of the Issuers and the Subsidiary Guarantors,
threatened against any of the Issuers or the Subsidiary Guarantors before the
National Labor Relations Board or any state, local or foreign labor relations
board or any industrial tribunal, and no grievance or arbitration proceeding
arising out of or under any collective bargaining agreement is so pending or,
to the knowledge of the Issuers and the Subsidiary Guarantors, threatened, (ii)
no strike, labor dispute, slowdown or stoppage pending or, to the knowledge of
the Issuers and the Subsidiary Guarantors, threatened against any of the
Issuers or the Subsidiary Guarantors, and (iii) no union representation
question existing with respect to the employees of any of the Issuers or the
Subsidiary Guarantors, and, to the knowledge of the Issuers and the Subsidiary
Guarantors, no union organizing activities are taking place except, in the case
of each of clauses (i), (ii) and (iii) above, as would not, singly or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

(ii)           Environmental Laws. Except as disclosed in the SEC Filings
or as otherwise would not, singly or in the aggregate, reasonably be expected
to have a Material Adverse Effect or otherwise require disclosure in the SEC
Filings, (i) none of the Issuers or the Subsidiary Guarantors has been or is in
violation of any Federal, state or local laws and regulations relating to
pollution or protection of human health or the environment, including, without
limitation, laws and regulations relating to emissions, discharges, releases or
threatened releases of toxic or hazardous substances, materials or wastes, or
petroleum and petroleum products ("Materials of Environmental
Concern"), or otherwise relating to the protection of human
health and safety, or the use, treatment, storage, disposal, transport or
handling of Materials of Environmental Concern (collectively, "Environmental Laws"), which violation includes, but is
not limited to, noncompliance with, or lack of, any permits or other
environmental authorizations; (ii) to the knowledge of the Issuers and the
Subsidiary Guarantors, there are no circumstances, either past, present or that
are reasonably foreseeable, that may lead to any such violation in the future;
(iii) none of the Issuers or the Subsidiary Guarantors has received any
communication (written or oral), whether from a Governmental Authority or
otherwise, alleging any such violation; (iv) there is no pending or, to the
knowledge of the Issuers and the Subsidiary Guarantors, threatened claim,
action, investigation, notice (written or oral) or other Proceeding by

 

 17
 

any person or entity alleging potential liability of any of the Issuers
or the Subsidiary Guarantors (or against any person or entity for whose acts or
omissions any of the Issuers or the Subsidiary Guarantors is or may reasonably
be expected to be liable, either contractually or by operation of law) for
investigatory, cleanup, or other response costs, or natural resources or
property damages, or personal injuries, attorney's fees or penalties relating
to (A) the presence, or release into the environment, of any Materials of
Environmental Concern at any location, or (B) circumstances forming the basis
of any violation or potential violation, of any Environmental Law
(collectively, "Environmental Claims");
and (v) to the knowledge of the Issuers and the Subsidiary Guarantors, there
are no past or present actions, activities, circumstances, conditions, events
or incidents that could reasonably be expected to form the basis of any
Environmental Claim.

Each of the Issuers and the Subsidiary Guarantors, as
appropriate, has conducted environmental investigations of, and have reviewed
reasonably available information regarding, the business, properties and
operations of each of the Issuers and the Subsidiary Guarantors, and of other
properties within the vicinity of their business, properties and operations, as
appropriate for the circumstances of each such property and operation; on the
basis of such reviews, investigations and inquiries, the Issuers and the
Subsidiary Guarantors have reasonably concluded that any costs and liabilities
associated with such matters would not have, singularly or in the aggregate, a
Material Adverse Effect or otherwise require disclosure in the SEC Filings.

(jj)           Representations and Warranties. Each certificate signed
pursuant to Section 6(a)(iv) by any officer of any of the Issuers or the
Subsidiary Guarantors and delivered to the Purchaser or counsel for the
Purchaser pursuant to this Agreement shall be deemed to be a representation and
warranty by such Issuer or Subsidiary Guarantor to the Purchaser as to the
matters covered thereby.

5,  Representations and
Warranties of the Purchaser. The Purchaser
represents and warrants to the Issuers that:

(a)           QIB. It is a
QIB with such knowledge and experience in financial and business matters as is
necessary in order to evaluate the merits and risks of an investment in the New
Notes. It is not acquiring the New Notes with a view to any distribution
thereof that would violate the Act or the securities laws of any state of the
United States or any other applicable jurisdiction.

(b)           No General Solicitation.
It has not and will not solicit offers for, or offer or sell, the New Notes by
means of any general solicitation or general advertising within the meaning of
Rule 502(c) under Regulation D under the Act or in any manner involving a
public offering within the meaning of Section 4(2) of the Act.

(c)           Resales. It
will offer and sell the New Notes only (A) to Eligible Purchasers, (B) in a
transaction otherwise exempt from the Act or (C) pursuant to registration under
the Act.

(d)           Power and Authority.
It has all requisite power and authority to enter into, deliver and perform its
obligations under this Agreement, and this Agreement has been duly authorized,
executed and delivered by it. It will act in accordance with the terms and
conditions set forth in this Agreement in connection with the placement of the
New Notes contemplated hereby.

 

 18
 

(e)           Stop Transfer.
It acknowledges that in the event that it does not comply with any of the terms
of resale contained in this Section 5, "stop transfer"
instructions may be noted against the New Notes sold or attempted to be sold by
it.

(f)            Elections Regarding
Original Issue Discount. It will not make any election under Treasury
Regulations Section 1.1272-3 to treat all interest on the New Notes as original
issue discount.

The provisions of this Section 5 shall survive delivery of and
payment for the New Notes.

6.  Conditions.

(a)  Conditions to Obligations of Purchaser. The obligations of
the Purchaser to purchase the New Notes under this Agreement are subject to the
satisfaction or waiver of each of the following conditions:

(i)                            Representations
and Warranties of the Issuers and Subsidiary Guarantors. All the
representations and warranties of each of the Issuers and the Subsidiary
Guarantors in this Agreement and in each of the other Note Documents to which
it is a party shall be true and correct in all material respects (other than
representations and warranties with a Material Adverse Effect qualifier or
other materiality qualifier, which shall be true and correct as written) at and
as of the Closing Date after giving effect to the Transactions consummated on
or prior to the Closing Date with the same force and effect as if made on and
as of such date (except to the extent that any such representation or warranty
speaks as of an earlier date, in which case such representation or warranty
shall be true and correct in all material respects (other than representations
and warranties with a Material Adverse Effect qualifier or other materiality
qualifier, which shall be true and correct as written) only as of such earlier
date). On or prior to the Closing Date, each of the Issuers and the Subsidiary
Guarantors and, to the knowledge of the Issuers and the Subsidiary Guarantors,
each other party to the Note Documents (other than the Purchaser) shall have
performed or complied in all material respects with all of the agreements and
satisfied in all material respects all conditions on their respective parts
required to be performed, complied with or satisfied as of or prior to the
Closing Date pursuant to the Note Documents.

(ii)                           No
Injunction.  No injunction,
restraining order or order of any nature by a Governmental Authority shall have
been issued as of the Closing Date that would prevent or materially interfere
with the issuance and sale of the New Notes; and no stop order suspending the
qualification or exemption from qualification of any of the New Notes in any
jurisdiction shall have been issued and no Proceeding for that purpose shall
have been commenced or, to the knowledge of the Issuers and the Subsidiary
Guarantors, be pending or contemplated as of the Closing Date.

(iii)                          No
Proceedings. No action shall have been taken and no Applicable Law
shall have been enacted, adopted or issued that would, as of the Closing Date,
prevent the consummation of the issuance and sale of the New Notes; except as
disclosed in the SEC Filings, no Proceeding shall be pending or, to the
knowledge of the Issuers and the

 

 19
 

Subsidiary Guarantors, threatened, other than Proceedings that (A) if
adversely determined would not, singly or in the aggregate, adversely affect
the issuance or marketability of the New Notes, and (B) could not, singly or in
the aggregate, reasonably be expected to have a Material Adverse Effect.

(iv)                          Officers’, Secretary's and Solvency Certificates. The
Purchaser shall have received on the Closing Date:

(A)          certificates
dated the Closing Date, signed by (1) the Chief Executive Officer, and (2) the
principal financial or accounting officer of each of the Issuers and the
Subsidiary Guarantors, on behalf of the Issuers and the Subsidiary Guarantors,
confirming the matters set forth in paragraphs (i), (ii), (iii) and (vi)
of this Section 6(a),

(B)           a
certificate, dated the Closing Date, signed by the Secretary or Secretaries of
each of the Issuers and the Subsidiary Guarantors, certifying such matters as
the Purchaser may reasonably request, and

(C)           a
certificate of solvency, dated the Closing Date, signed by the principal
financial or accounting officer of the Issuers and the Subsidiary Guarantors
substantially in the form previously approved by the Purchaser.

(v)                           Opinions of
Counsel. The Purchaser shall have received a favorable opinion (in form
and substance reasonably satisfactory to the Purchaser and counsel to the
Purchaser), dated the Closing Date, of each of the following:

(A)          Mayer,
Brown, Rowe & Maw LLP, special counsel to the Issuers and the Subsidiary
Guarantors;

(B)           Lane
& Waterman, special Iowa counsel and special Iowa gaming counsel to the
Issuers and the Subsidiary Guarantors; and

(C)           Brantley
& Associates, special Louisiana counsel and Special Louisiana gaming
counsel to the Issuers and the Subsidiary Guarantors.

(vi)                          Permits.
All Permits required to be obtained from, and all notices or declarations
required to be made with, any Gaming Authority or other Governmental Authority
to permit the issuance and sale of the New Notes in accordance with the terms
of, and in the aggregate principal amount set forth in, this Agreement shall
have been obtained and made, in each case free of any conditions other than
those set forth in this Agreement.

(vii)                         New Security
Documents. The Issuer and the Subsidiary Guarantors shall have furnished
to the Purchaser:

(A)          the
New Security Documents duly executed, and if appropriate, notarized, by the
respective parties thereto, in form and substance reasonably

 

 20
 

acceptable to the Purchaser, to be recorded on or about the Closing
Date in all jurisdictions that may be deemed necessary or, in the reasonable
opinion of the Secured Party, desirable to perfect or continue the perfection
of the Liens created by the Original Security Documents covering the Collateral
and to secure obligations of the Issuer and the Subsidiary Guarantors under the
New Notes,

(B)           endorsements
to the existing title insurance policies insuring the liens of the Original
Security Documents (I) increasing the coverage thereunder to reflect the
issuance of the New Notes, (II) dating down the effective date of such coverage
to the Closing Date, (III) reflecting the execution and delivery of the New
Security Documents, and (IV) providing for such other matters as the Purchaser
may reasonably require, all in form and substance reasonably satisfactory to
the Purchaser, and

(C)           any
other documents required to be delivered on the Closing Date to the Secured
Party pursuant to the Security Documents and reasonable evidence that all other
actions necessary or, in the reasonable opinion of the Secured Party, desirable
to perfect and protect the Liens created by the Security Documents have been
taken.

(viii)                        New Notes.
The obligations of the Purchaser to purchase the Tranche 2 Notes under this
Agreement are subject to the prior issuance, sale and purchase of the Tranche 1
Notes pursuant to this Agreement.

(ix)                           Additional
Documents. Counsel to the Purchaser shall have been furnished with
such documents as they may reasonably require for the purpose of enabling them
to review or pass upon the matters referred to in this Section 6 and in
order to evidence the accuracy, completeness and satisfaction of the
representations, warranties and conditions contained in this Agreement.

(b)  Conditions to the Issuers' and the Subsidiary Guarantors' Obligations.
The obligations of the Issuers to sell, and the Subsidiary Guarantors to
guarantee, the New Notes under this Agreement are subject to the satisfaction
or waiver of each of the following conditions:

(i)                            Payment.
The Purchaser shall have delivered payments to the Issuers for the New Notes
pursuant to Section 2 of this Agreement.

(ii)                           Representations
and Warranties. All of the representations and warranties of the
Purchaser in this Agreement shall be true and correct in all material respects
at and as of the Closing Date, with the same force and effect as if made on and
as of such date.

(iii)                          No
Injunctions. No injunction, restraining order or order of any nature
by a Governmental Authority shall have been issued as of the Closing Date that
would prevent or interfere with the issuance and sale of the New Notes; and no
stop order suspending the qualification or exemption from qualification of any
of the New Notes in any

 

 

 21
 

jurisdiction shall have been issued and no Proceeding for that purpose
shall have been commenced or be pending or contemplated as of the Closing Date.

7.  Miscellaneous.

(a)  Notices. Notices given pursuant to any provision of this
Agreement shall be delivered or sent by mail or facsimile transmission as
follows:

(i)            if
to any of the Issuers and the Subsidiary Guarantors, to Diamond Jo Worth, LLC,
3rd Street Ice Harbor, P.O. Box 1750, Dubuque,
lowa 52001, facsimile number (563) 557-0549, Attention: Chief Financial
Officer, with a copy to Peninsula Gaming Partners, LLC, 7137 Mission Hills Drive,
Las Vegas, Nevada 89113, facsimile number (702) 247-6822, Attention: Michael S.
Luzich, and another copy to Mayer, Brown, Rowe & Maw, LLP, 1675 Broadway,
New York, New York 10019, facsimile number (212) 262-1910, Attention: Nazim
Zilkha, Esq., and

(ii)           if
to the Purchaser, to Jefferies & Company, Inc., 520 Madison Avenue, l2th
Floor, New York, New York 10022, Attention: Lloyd Feller, Esq., with a copy to
Jefferics & Company, lnc., The Metro Center, One Station Place, Three
North, Stamford, Connecticut 06902, Attention: Robert J. Welch, and with a copy
to Skadden, Arps, Slate, Meagher & Flom LLP, 300 South Grand Avenue, Suite
3400, Los Angeles, California 90071, facsimile number (213) 687-5600,
Attention: Nicholas P. Saggese, Esq.

or in any case to such other address as the person to be notified may
have requested in writing.

(b)  Successors and Assigns. This Agreement has been and is made
solely for the benefit of and shall be binding upon each of the Issuers and the
Subsidiary Guarantors, the Purchaser, and their respective heirs, executors,
administrators, successors and assigns, all as and to the extent provided in
this Agreement, and no other person shall acquire or have any right under or by
virtue of this Agreement. The term "successors and assigns" shall not
include a purchaser of any of the New Notes from the Purchaser merely because
of such purchase. This Agreement shall not be assigned by the Purchaser to any
other party without the written consent of the issuers.

(c)  GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED AND
INTERPRETED, AND THE RIGHTS OF TIIE PARTIES SHALL BE DETERMINED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK, INCLUDING, WITHOUT LIMITATION, SECTIONS
5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAWS AND RULE 327(b) OF
THE NEW YORK CIVIL PRACTICE LAWS AND RULES. EACH OF THE ISSUERS AND THE
SUBSIDIARY GUARANTORS HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY NEW
YORK STATE COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK OR
ANY FEDERAL COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK
IN RESPECT OF ANY SUIT, ACT1ON OR PROCEEDING ARISING OUT OF OR RLLA'TING TO
THIS AGREEMENT, AND IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS
PROPERTY, GENERALLY AND UNCONDITIONALLY,

 

 22
 

JURISDICTION OF THE AFORESAID COURTS, EACH OF THE ISSUERS AND THE
SUBSIDIARY GUARANTORS IRREVOCABLY WAIVES, TO THE FULLEST EXTENT IT MAY
EFFEC'T'IVELY DO SO UNDER APPLICABLE LAW, TRIAL BY JURY AND ANY OBJECTION THAT
IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH SUIT,
ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT AND ANY CLAIM THAT ANY SUCH
SUIT, ACTION OR PROCEEDINGS BROUGHT IN SUCH COURT HAS BEEN BROUGHT IN AN
INCONVENIENT FORUM. EACH OF THE ISSUERS AND THE SUBSIDIARY GUARANTORS IRREVOCABLY
CONSENTS, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO UNDER APPLICABLE LAW,
TO THE SERVICE OF PROCESS OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH
ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR
CERTIFIED MAIL, POSTAGE PREPAID, TO SUCH ISSUER OR SUCH GUARANTOR, AS THE CASE
MAY BE, AT THE ADDRESS SET FORTH IIEREIN, SUCH SERVICE TO BECOME EFFECTIVE 30
DAYS AFTER SUCH MAILING. NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE PURCHASER
TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL
PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY OF THE ISSUERS OR THE SUBSIDIARY
GUARANTORS IN ANY OTHER JURISDICTION.

(d)  Counterparts. This Agreement may be signed in various
counterparts which together shall constitute one and the same instrument.

(e)  Headings. The headings in this Agreement are for convenience
of reference only and shall not limit or otherwise affect the meaning hereof.
When a reference is made in this Agreement to a Section, paragraph,
subparagraph, Schedule or Exhibit, such reference shall mean a Section,
paragraph, subparagraph, Schedule or Exhibit to this Agreement unless otherwise
indicated.

(f)  Interpretation. The words "include,"
"includes," and "including" when used in this Agreement shall be deemed
in each case to be followed by the words "without
limitation." The phrases "the date of
this Agreement," "the date hereof,"
and terms of similar import, unless the context otherwise requires, shall be
deemed to refer to December 22, 2006. The words "hereof,"
"herein," "herewith," "hereby"
and "hereunder" and words of similar
import shall, unless otherwise stated, be construed to refer to this Agreement
as a whole and not to any particular provision of this Agreement. The phrase
"to the knowledge of the Issuers and the Subsidiary
Guarantors" means the actual knowledge, after due inquiry, of
any of the members, managers, directors or officers of any of the Issuers or
the Subsidiary Guarantors, respectively, or any of their respective controlling
persons. For purposes of this Agreement and the representations, warranties,
covenants and agreements herein, the Purchaser shall not be deemed to be an
affiliate of the Issuers or the Subsidiary Guarantors. Unless the context
otherwise requires, defined terms shall include the singular and plural and the
conjunctive and disjunctive forms of the terms defined.

(g)  Severability. If any term, provision, covenant or
restriction of this Agreement is held by a court of competent jurisdiction to
be invalid, illegal, void or unenforceable, the remainder of the terms,
provisions, covenants and restrictions set forth herein

 

 23
 

shall remain in full force and effect and shall in no way be affected,
impaired or invalidated, and the parties hereto shall use their best efforts to
find and employ an alternative means to achieve the same or substantially the
same result as that contemplated by such term, provision, covenant or
restriction. It is hereby stipulated and declared to be the intention of the
parties that they would have executed the remaining terms, provisions,
covenants and restrictions without including any of such that may be hereafter
declared invalid, illegal, void or unenforceable.

(h)  Amendment. This Agreement may be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may be given, provided that the same are in writing and signed by each of the
signatories hereto.

[signature
pages follow]

 

 24

                Please confirm that the foregoing correctly sets
forth the agreement among the Issuers, the Subsidiary Guarantors and the
Purchaser.

	
  

  	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Issuers”

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Peninsula Gaming, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Natalie Schramm

  
	
   

  	
   

  	
  Name: Natalie
  Schramm

  
	
   

  	
   

  	
  Title:   Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Peninsula Gaming, Corp.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Natalie Schramm

  
	
   

  	
   

  	
  Name: Natalie
  Schramm

  
	
   

  	
   

  	
  Title:   Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Diamond Jo, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Natalie Schramm

  
	
   

  	
   

  	
  Name: Natalie
  Schramm

  
	
   

  	
   

  	
  Title:   Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Subsidiary Guarantors”

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Old Evangeline Downs, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Natalie Schramm

  
	
   

  	
   

  	
  Name: Natalie
  Schramm

  
	
   

  	
   

  	
  Title:   Chief Financial Officer

  
					

 

 

	
  Accepted and Agreed to:

  
	
   

  
	
  Jefferies & Company, Inc

  
	
   

  
	
  By:

  	
  /s/ Christian
  Morris

  	
   

  
	
   

  	
  Name: Christian
  Morris

  	
   

  
	
   

  	
  Title: Managing
  Director

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