Document:

Exhibit
10.1

PORT OF DUBUQUE PUBLIC
PARKING FACILITY

DEVELOPMENT AGREEMENT

BETWEEN

THE CITY OF DUBUQUE, IOWA

AND

DIAMOND JO, LLC

This Development
Agreement (the Agreement) is made as of this 5th day of February, 2007 by and
between the City of Dubuque, a municipal corporation of the State of Iowa
(City), and Diamond Jo, LLC (f/k/a DJ Gaming Company, LLC), a Delaware limited
liability company (DJDJ).

WHEREAS, DJ intends to
develop a new casino in the Port of Dubuque of the City of Dubuque, Iowa, (the
DJ Development) on real estate legally described on attached Exhibit A (the DJ
Real Estate); and

WHEREAS, In conjunction
with the DJ Development, the parties believe that it is in both of their
interests that City design, develop, finance and construct a public multi-level
public parking facility to be owned and operated by City on real estate owned
by City located adjacent to the DJ real Estate and legally described on
attached Exhibit B (the Public Parking Facility Real Estate) and as
conceptually described on attached Exhibit C (the Public Parking Facility).

NOW, THEREFORE, In return
for good and valuable consideration of the matters set forth in the above and
foregoing recitals it is hereby agreed as follows:

SECTION 1. DJ
OBLIGATIONS.

1.1. DJ Development. DJ hereby
agrees to construct on the DJ Real Estate a casino development of not less than
one hundred forty thousand (140,000) square feet of floor space along with
necessary site work at a cost of approximately $45,000,000.00.

(1)  DJ agrees that the design of
the DJ Development shall be subject to the prior written approval of sightlines
by Port of Dubuque Adams, L.L.C.

(2)  DJ hereby agrees that
construction of DJ Development shall be commenced by no later than six months
following the final approval of the design by the City Manager after review by
the Design Review Committee and shall be substantially completed no later than
eighteen months from the commencement of construction.

(3)  The time frames for the
performance of this obligation shall be suspended due to unavoidable delays
meaning delays, outside the control of DJ, which are the direct result of
strikes, other labor troubles, unusual shortages of materials or labor,
unusually severe or prolonged bad weather, acts of God, fire or other casualty
to the DJ Development, litigation commenced by third parties which, by
injunction or other similar judicial action or by the exercise of reasonable
discretion directly results in

delays, or acts of any federal, state or local government which
directly result in extraordinary delays. The time for performance of such obligations
shall be extended only for the period of such delay.

1.2. DJ Financial
Commitment. In consideration of the benefits to DJ provided in the Agreement,
DJ agrees to pay into an escrow account (the “Escrow Account”) administered by
the City as provided in the Escrow Agreement, Exhibit M, the sum of $6.35
million (the “Initial Advance”), provided that DJ shall be allowed, at its sole
discretion, to increase the amount of the initial advance and receive a corresponding
reduction in the minimum assessment provided under Section 1.4 so that the
aggregate amount of the initial Advance and the Bond proceeds under

Section 2.3 remains
unchanged.

(1)  The Initial Advance shall be
applied by City toward the cost of designing and constructing the Public
Parking Facility. DJ shall pay such Initial Advance as costs and expenses are
incurred by City within thirty (30) days of receipt of a statement and
accompanying documentation therefore from City as such costs and expenses are
incurred by City during the design of the Public Parking Facility.

(2)  If not sooner paid, the
balance of the Initial Advance shall be paid by DJ to City prior to and as a
condition of the award by City of the construction contract for the Public
Parking Facility.

(3)  In the event the Public
Parking Facility is not completed, for any reason other than due to DJ’s
material breach of this Agreement, in accordance in all material respects with
the design plans or budget as provided in this Agreement, City shall be
obligated to reimburse DJ for the portion of the Initial Advance DJ paid by it
pursuant to this Agreement. Such reimbursement shall be payable by City over
time from amounts City receives from the State of Iowa for City’s one-half
percent (1/2%) share of the adjusted gross receipts paid by DJ under Iowa Code
Section 99F.11 and from no other source of the City funds.

(4)  It is agreed that this
Agreement satisfied DJ’s and City’s obligations under Section 32 of the Lease
Agreement between City and DJ.

(5)  The parties agree that all
contracts entered into by the City for the design and construction of the
Public Parking Facility shall be for a fixes price or a guaranteed maximum
price (GMP), so as to allow for the establishment of a maximum total cost for
the design and construction of the Public Parking Facility.

(a)  Any change orders or
modifications to such contracts that will result in the fixed price or the GMP,
together with all previous change orders or modifications, exceeding 110% of
the fixed price or the GMP, shall require the written consent of both City and
DJ.

(b)  DJ agrees that in the event
it so consents to such a change order or other modification to a contract that
will result in the fixed price or the GMP, together with all previous change
orders or modifications, exceeding 110% of

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the fixed price or the GMP, it shall pay to City within thirty (30) days
of receipt of a statement from City the amount by which such costs exceed 110%
of the fixed price or the GMP.

(c)  If the amount by which such
costs exceed the sum of the Initial Advance and the proceeds of the Bonds
described in Section 2.3 are determined prior to the award by City of a
contract for the construction of the Public Parking Facility and DJ does not
terminate this Agreement as provided in Section 3.1, DJ shall pay such amount, together
with a contingency amount of ten per cent (10%) of the amount of the
construction contract, to City prior to the award by City of the construction
contract.

(d)  Upon acceptance of the
Public Parking Facility by the City Council and after payment by City of all
costs for the design and construction of the Public Parking Facility, City
shall refund to DJ any balance of the contingency amount remaining, If any, and
all interest earned on the Initial Advance remaining in the Escrow Account.

1.3. Operating Costs of
Public Parking Facility. Following the opening of the Public Parking Facility
and continuing for the life of the Public Parking Facility, DJ agrees to pay
the reasonable and necessary actual operating costs incurred by City for the
operation, security, repair and maintenance of the Public Parking Facility.
Such operating costs shall include those listed on attached Exhibit K.

(1)  Any costs that exceed $1,100
during the first year of operation of the Public Parking Facility (after the
first year of Operation of the Public Parking Facility, the previous year in
the Consumer Price Index for all items for All Urban Consumers U.S. City
Average, published by the U.S. Development of Labor, Bureau of Labor
Statistics) and that have a useful life of 3 years or more shall be considered
capital items and paid for pursuant to Section 1.5 below.

(2)  DJ shall reimburse City for
such costs within thirty (30) days receipt f a statement therefore from City
providing reasonable documentation to support such amount.

(3)  Following the opening of the
Public Parking Facility, City will contract with DJ at a total cost of $1.00
per year, for the maintenance and security requirements of the Public Parking
Facility pursuant to the Maintenance Services Agreement attached hereto as
Exhibit J. Notwithstanding any provision in the Agreement to the contrary, DJ
agrees that City may in its sole discretion, with or without cause, terminate
the Agreement and provide such reasonable and customary services with its own staff
or contract with a third party for such services, all costs for which DJ shall
reimburse City as provided in this Agreement. If City terminates the Agreement,
City shall purchase from DJ any equipment at its depreciated value purchased by
DJ for its maintenance and security requirements under the Agreement.

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(4)        Failure of
DJ to make any payment required by this Section shall constitute an Event of
Default under Section 3.3 of this Agreement.

1.4. Minimum
Assessment.  The parties shall execute
the Minimum Assessment Agreement attached hereto as Exhibit D.  DJ shall provide City with a guaranty in the
form of Exhibit F for DJ’s obligation to pay real estate taxes on the DJ
Development. 

 

1.5. Sinking
Fund.  DJ agrees to pay to City each year
during the life of the Public Parking Facility, commencing on the date of the
opening of the Public Parking Facility, and on anniversary of such date each
year thereafter, an amount equal to $80 per parking space in the Public Parking
Facility adjusted annually by the increase, if any, from the previous year in
the Consumer Price Index for all items for All Urban Consumers—U.S. City
Average, published by the U.S. Department of Labor, Bureau of Labor Statistics.

 

(1)        Such amount shall be separately
accounted for by City and shall be drawn upon by City from time to time to be
used solely to satisfy the capital maintenance requirements of the Public
Parking Facility determined necessary by City in its sole discretion.  

(2)        For the
purposes of this Agreement, “capital maintenance” shall mean any expenditure,
or related series of expenditures, in excess of $1,100 during the first year of
operation of the Public Parking Facility (after the first year of operation of
the Public Parking Facility, the amount of such costs shall be adjusted
annually by the increase, if any, from the previous year in the Consumer Price
Index for all items for All Urban Consumers-U.S. City Average, published by the
U.S. Department of Labor, Bureau of Labor Statistics) and that has a useful
life of three years or more.

(3)        Failure of
DJ to make any payment required by this Section shall constitute an Event of
Default under Section 3.3 of this Agreement. 

1.6. Rental and Compensation
for Parking Privileges.  DJ agrees to pay
to City the rental and compensation for parking privileges as provided in Par. 2
of the Lease Agreement Between the City of Dubuque, Iowa and DJ Gaming Company,
LLC, Exhibit G  attached hereto, for the Term of the
Lease Agreement and thereafter for so long as Lots 1 and 2 described
therein may remain available to DJ at City’s sole discretion on the same basis
as provided in the Lease Agreement. Failure of DJ to make any payment required
by this Section constitutes a default of this Agreement and in addition to any
other remedy, City shall upon such default have the right to impose such fees
as City determines in its sole discretion for use of the Public Parking
Facility.

 

1.7. DJ acknowledges that City
has the right in its sole discretion to install parking meters on the streets
in the Port of Dubuque.

 

1.8. Real Estate Taxes.  DJ shall pay or cause to be paid during the
Term of this Agreement, when due, all real property taxes and assessments
payable with respect to all and any parts of the DJ Development. Failure of DJ
to make any payment required by this Section shall constitute an Event of
Default under Section 3.3 of this Agreement.

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SECTION 2. CITY
OBLIGATIONS.

2.1. Design and
Construction of the Public Parking Facility. Subject to the conditions set
forth in this Agreement, City agrees to design and construct the Public Parking
Facility at a cost estimated to be approximately $23,043,800.00 on the Public
Parking Facility Real Estate.

(1)  The footprint of the Public
Parking Facility shall be consistent with the concept shown on Exhibit I, and
in harmony with DJ Development and the Port of Dubuque Adams Development,
L.L.C., and the Durrant Group, L.L.C. Development in appearance and function.

(2)  City shall retain either YWS
Architects or The Durrant Group, Inc., based on whichever architect comes in
with the lower bid, to design the Public Parking Facility on terms acceptable
to City in its sole discretion (the “Project Architect”).

(3)  City shall hold weekly
progress meetings with the Project Architect,DJ and its representatives during
the design and construction of the Public Parking Facility. City agrees to
allow DJ to provide input and comments on  the design of the Public Parking Facility,
including but not limited to providing DJ timely copies of all design documents
and correspondence regarding design and providing timely notice to DJ of any
meetings regarding the design of the Public Parking Facility and allowing DJ to
attend such meetings.

(4)  In the event City falls to
retain the Project Architect by March 1, 2007, DJ may at its option terminate
this Agreement by written notice to City. Termination of this Agreement shall
be DJ’s sole remedy for failure  of City
to retain the Project Architect. DJ shall not be entitled to reimbursement of
any costs or damages incurred by DJ in connection with this Agreement.

(5)  City shall retain as a cost
of the design of the Public Parking Facility an architecture firm to provide
such design review as City determines necessary of the Project Architect’s
design.

2.2. Use of Parking Lot
by DJ. City agrees that for so long as DJ is not in default (as defined under
Section 3.3 below), and subject to City’s right to limit access to the Public
Parking Facility during emergencies, severe weather  conditions, maintenance or other similar
circumstances, the Public Parking Facility shall remain open 24 hours per day,
7 days per week to the general public, including but not limited to DJ’s
patrons (but excluding DJ’s employees who DJ agrees to prohibit from parking in
the Public Parking Facility), In each case free of charge and without any
unreasonable restrictions, but subject to the terms of the Development
Agreement between City, Port of Dubuque Adams Development, L.L.C., and The
Durrant Group, L.L.C., and the Development Agreement between City and The
McGraw-Hill Companies.

City agrees no future
development project in the Port of Dubuque over which City has 

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control or is able to
exercise influence shall be approved by City unless such development project
contemplates and provides for parking sufficient to accommodate the reasonable
parking needs of such development for the foreseeable future as determined by
City in its sole discretion. It is acknowledged by DJ that the Public Parking
Facility is intended to be utilized for the shared parking needs of the Port of
Dubuque, including but not limited to the development contemplated by Port of
Dubuque Adams, L.L.C. and The Durrant Group, L.L.C., as described in Exhibit E,
the DJ Development, Dubuque County Historical Society projects, and McGraw-Hill
for employee parking as provided in Par. 12 of the Development Agreement
Between the City of Dubuque and the McGraw-Hill Companies, Inc., Exhibit L
attached hereto.

2.3. City Financing
Obligations. City agrees, subject to the conditions set forth in Section 2.4
below, to issue tax increment financing bonds (the Bonds) for the remaining
costs associated with the design and construction of the Public Parking
Facility in such amount as to allow for the Bonds to be paid off over a period
of thirty (30) years utilizing the Incremental Property Tax Revenues (as
defined below), in whole, or in part should the Incremental Property Tax
Revenues exceed the Bond payment obligations from the DJ Development and
assuming a minimum assessment amount as provided in Exhibit D.

(1)  Interest and principal shall
be paid from Incremental Property Tax Revenues generated by the DJ Development,
as provided in Exhibit D.

(2)  DJ recognizes and agrees
that Incremental Property Tax Revenues are solely and only the incremental
taxes collected by City in respect to the DJ Development, which does not
include property taxes collected for the payment of bonds and interest of each
taxing district, and taxes for the regular and voter-approved physical plant
and equipment levy, and any other portion required to be excluded by Iowa law.
Accordingly, the parties  understand that
due to the amounts that are legally required to be excluded from the
Incremental Property Tax Revenues, such incremental taxes will not include all
amounts paid by DJ as regular property taxes.

(3)  DJ acknowledges and agrees
that it shall identify for City a purchaser or the Bonds (the Purchaser) and
City agrees to negotiate in good faith with the Purchaser with respect to the
terms of the Bonds. Except as specifically set forth herein, DJ further
acknowledges and agrees that the Bonds shall be sold on such terms and
conditions, bear such interest rates,  have such reserve funding requirements, mature
at such times and in such  amounts as
City, in its sole but reasonable, good faith discretion, shall determine to be
acceptable to it and the Purchaser and shall be payable from and secured solely
and only by a pledge of the Incremental Property Tax Revenues to be collected
by City in respect of the DJ Development during a period not to exceed thirty
(30) years.

(4)  Proceeds of the Bonds shall
be applied only to the payment of capitalized interest thereon (if necessary),
debt service reserve funding, costs of Issuance and the payment of the costs of
the design and  construction of the
Public Parking Facility.

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(5)  City shall have no
obligation to fund the costs of the design and construction of the Public
Parking Facility to be paid hereunder from any source other than the proceeds
of the Bonds. 

(6)  City’s obligation to issue
the Bonds and undertake its obligations hereunder shall be subject in all
respects to unavoidable delays, the provisions of this Section and Section 2.4,
and the satisfaction of all conditions required (in the reasonable judgment of
bond counsel for City) by Chapter 403 of the Code of Iowa, as amended, with
respect to the issuance of the Bonds. 

2.4. Limitations on
Financial Undertakings of City. Notwithstanding any other provisions of this
Agreement, City shall have no obligation to DJ under this Agreement to issue
the Bonds or to fund the design or construction of the Public Parking Facility,
if any of the following conditions exist as of June 30, 2007: 

(1)  City is unable to complete
the sale of the Bonds on such terms and conditions as it shall deem necessary
or desirable in its sole discretion; or

(2)  City is entitled (or, with
the passage of time or giving of notice, or both, would be entitled) under this
Agreement to exercise any remedies set forth therein as a result of any Event
of Default;

(3)  DJ falls to sign the Minimum
Assessment Agreement and provide City with the guaranty required by Section
1.4; or

(4)  There has been, or there
occurs, a material adverse change in the financial condition of DJ, which
change(s) make it substantially more likely, in the reasonable judgment of
City, that DJ will be unable to fulfill its covenants and obligations under
this Agreement.

2.5. Use of Tax
Increments. DJ recognizes that City intends to utilize the Incremental Property
Tax Revenues collected each year in respect of the DJ Development to pay debt
service on the Bonds. Notwithstanding the foregoing, City shall be free to use
any excess Incremental Property Tax Revenues not required for the satisfaction
of the principal and interest payments on the Bond collected each year in
respect of the DJ Development for any purpose for which the Incremental
Property Tax Revenues may lawfully be used pursuant to the provisions of the
Urban Renewal Act, and City shall have no obligation to DJ with respect to use
thereof.

2.6. Limitation on City
Funding. DJ acknowledges and agrees that it is the intent of the parties that
City shall not incur any costs related in any way to the design, construction,
or operation of the Public Parking Facility which are not paid for or
reimbursed by DJ or financed with the Bonds. Anything in this Agreement to the
contrary notwithstanding, DJ’s obligation to pay costs and expenses in the
event this Agreement is terminated prior to the award of a construction
contract and the Public Parking Facility is not completed, shall be limited to
the amount of City’s contract with the Project Architect and City’s contract
with a review architect as provided in Par.2.1.

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SECTION 3. GENERAL TERMS
AND CONDITIONS.

3.1. Conditions
Precedent. If any of the following conditions has not occurred prior to the
later of June 30, 2007, or the date set by the City Council for the award of a
construction contract for the Public Parking Facility, but in no event later
than December 31, 2007, either party may terminate this Agreement upon written
notice to the other party. DJ’s termination of this Agreement shall be its sole
remedy. DJ shall not be entitled to reimbursement of any costs or damages
incurred by DJ in connection with this Agreement. In the even DJ elects to
terminate this Agreement, DJ shall reimburse City for all reasonable out-of-pocket
costs incurred by City in connection with this Agreement and DJ shall reimburse
City for all such costs within thirty days of receipt by DJ of City’s statement
of such costs, including appropriate documentation thereof.

(1)  City shall have obtained all
required design approvals from the Design Review Committee for the Public
Parking Facility and DJ shall have consented to such design, which consent
shall not be unreasonably withheld.

(2)  DJ and the City shall have
received all necessary approvals from any governmental agency, utility, lender,
security holder or other party whose approval is required for the undertakings
and obligations under this Agreement, specifically including, but no limited to
approval of this Agreement by the Iowa Racing and Gaming Commission and a firm
commitment from the Purchaser regarding its purchase of the Bonds on terms satisfactory
to City and DJ.

(3)  City shall have received and
DJ shall have approved, bids pursuant to which it can be determined that the
Public Parking Facility can be designed and constructed for an amount equal to
or less than the sum of the amounts to be provided by DJ under Section 1.2 and
financed by City under Section 2.3. Additionally, all such costs of design and
construction shall be supported by Agreements with the contractors and other
vendors that include a fixed price or have a guaranteed maximum price (GMP)
that permits the Public Parking Facility to be constructed within the budget
provided for herein, taking into consideration a 10% contingency for the costs
of construction of the Public Parking Facility. The parties acknowledge that such
fixed price or GMP shall be subject to change modifications or orders approved
by City, provided that any change orders or modifications to such contract that
will result in the fixed price or the GMP, together with all previous change
orders or modifications, exceeding 110% of the fixed price or the GMP, shall
require the written consent of both City and DJ.

(4)  City and DJ shall have
agreed upon the construction cost and timing of the construction of the Public
Parking Facility.

(5)  DJ shall have signed the
Minimum Assessment Agreement and provided City with a guaranty in a form
acceptable to City for DJ’s obligation to pay real estate taxes on the DJ
Development.

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(6)  Both parties are obligated
to pursue all required as expeditiously as possible and to negotiate in good
faith to complete the execution of the agreements identified and required as
conditions precedent to the other obligations set forth herein.

3.2. Cooperation by the
Parties. City and DJ to cooperate in good faith in connection with the performance
of all the activities contemplated herein and to use all commercially
reasonable efforts and diligence to promptly respond and perform the
obligations provided for directly or indirectly by this agreement. The parties
agree and understand that it is their intent that the timing of the design and
construction of the Public Parking Facility will be such that the completion
and opening of the Public Parking Facility will coincide with the completion
and opening of the DJ Development. The parties agree to use all reasonable
effort and resources to assure that construction of the Public Parking Facility
commences on or before August 1, 2007 and that the Public Parking Facility be
completed and ready for use on or before, the later August 1, 2008 or the opening
of the DJ Development. In the event the Public Parking Facility is not
substantially completed and ready for use on such date, and delay is due to a
breach by the City of its obligations under this Agreement, the City shall pay
to DJ an amount equal to $100 per day that the Public Parking Facility remains
incomplete and unopened as liquidated damages for its breach of this Agreement.
Additionally, the parties agree that the construction contract(s) shall include
a liquidation damages provision that provides for the contractor to pay DJ the
amount of $1,000 for each day the Public Parking Facility remains unfinished
after the later of August 1, 2008 or the opening of the DJ Development.

3.3. Events of Default
Defined. The following shall be Events of Default under this Agreement and the
term Event of Default shall mean, whenever it is used in this Agreement, any
one or more of the following events:

(1)  Failure by DJ to pay or
cause to be paid, before delinquency, all real property taxes assessed with respect
to the DJ Development.

(2)  Failure by DJ to cause the
construction of the DJ Development to be commenced and completed pursuant to
the terms, conditions and limitations of this Agreement.

(3)  Failure by DJ to
substantially observe or perform any other material covenant, condition,
obligation or agreement on its part to be observed or performed under this
Agreement.

(4)  Any default provided for
under Sections 1.3, 1.5, and 1.6 above.

3.4. Remedies on Default
by DJ. Whenever any Event of Default referred to in Section 3.3 of this
Agreement occurs and is continuing, City, as specified below, may take any one
or more of the following actions after the giving of written notice by City to
DJ of the Event of Default, but only if the Event of Default has not been cured
within sixty (60) days following such notice, or if the Event of Default cannot
be cured within sixty (60) days and DJ does not 

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provide assurances to
City that the Event of Default will be cured as soon as reasonably possible
thereafter:

(1)  City may suspend its
performance under this Agreement until receives assurances from DJ deemed
adequate by City, that DJ will cure its default and continue its performance
under this Agreement;

(2)  Until June 30, 2007, City
may cancel and rescind this Agreement;

(3)  City shall be entitled to
recover from DJ the sum of all amounts expended by City in connection with this
Agreement, and City may take any action, including any legal action it deems
necessary, to recover such amounts from DJ;

(4)  City may take any action,
including legal, equitable or administrative action, which may appear necessary
or desirable to collect any payment due under this Agreement or to enforce
performance and observance of any obligation, agreement, or covenant under this
Agreement;

(5)  City shall have the right to
impose such fees as City determines in its sole discretion for use of the
Public Parking Facility. 

3.5. No Remedy Exclusive.
No remedy herein conferred upon or reserved to City is intended to be exclusive
of any other available remedy or remedies, but each and every such remedy shall
be cumulative and shall be in addition to every other remedy given under this
Agreement or now or hereafter existing at law or in equity or by statute. No
delay or omission to exercise any right or power accruing upon any default
shall impair any such right or power or shall be construed to be a waiver
thereof, but any such right and power may be exercised from time to time and as
often as may be deemed expedient. 

3.6. No Implied Waiver.
In the event any agreement contained in this Agreement should be breached by
any party and thereafter waived by any other party, such waiver shall be
limited to the particular breach so waived and shall not be deemed to waive any
other concurrent, previous or subsequent breach hereunder. 

3.7. Additional
Agreements. From time to time hereafter without further consideration, the
parties agree to execute and deliver, or cause to be executed and delivered,
such further agreements and instruments, and shall take such other actions, as
any party may reasonably request in order to more effectively memorialize,
confirm and effectuate the intentions, undertakings and obligations contemplated
by this Agreement.

3.8. Counterparts. This
Agreement may be executed in any number of counterparts with the same effect as
if the parties hereto had signed the same document. All such counterparts shall
constitute one instrument.

3.9. Term. This Agreement
shall continue in effect during the life of the Public Parking Facility. 

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3.10. Additional
Provisions.

(1)  It is hereby agreed and
acknowledged that failure or performance of breach of agreement by any party
hereto could result in irreparable harm to another party hereto. An action in
equity and the relief of specific performance is therefore reserved to all
parties hereto.

(2)  All exhibits attached to
this Agreement are incorporated herein and made a part hereof by this
reference.

(3)  Whenever the singular number
is used in this Agreement, the same shall include the plural where appropriate
and words of any gender shall include any other gender where appropriate.

(4)  All notices, demands,
requests, or other communications required or permitted by this Agreement shall
be in writing and shall be deemed to be received when actually received by any
person at the intended address if personally served or sent by courier or
telex, or whether actually received or not, twenty-four (24) hours after the
date and time of delivery to a nationally-recognized courier, address as
follows:

	
  

  	
   

  	
  To the City:

  	
   

  	
  City Manager

  
	
   

  	
   

  	
   

  	
   

  	
  City Hall

  
	
   

  	
   

  	
   

  	
   

  	
  50 W. 13(th) Street

  
	
   

  	
   

  	
   

  	
   

  	
  Dubuque, IA 52001

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Copies to:

  	
   

  	
  City Attorney

  
	
   

  	
   

  	
   

  	
   

  	
  City Hall

  
	
   

  	
   

  	
   

  	
   

  	
  50 W. 13(th) Street

  
	
   

  	
   

  	
   

  	
   

  	
  Dubuque, IA 52001

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  To DJ:Attn. 

  	
   

  	
  Natalle Schramm

  
	
   

  	
   

  	
   

  	
   

  	
  Diamond Jo, LLC

  
	
   

  	
   

  	
   

  	
   

  	
  400 E. 3(rd) Street

  
	
   

  	
   

  	
   

  	
   

  	
  Dubuque, IA 52001

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  With copies to:

  	
   

  	
  Curtis E. Beason

  
	
   

  	
   

  	
   

  	
   

  	
  Lane & Waterman LLP

  
	
   

  	
   

  	
   

  	
   

  	
  220 N. Main St., Ste. 600

  
	
   

  	
   

  	
   

  	
   

  	
  Davenport, IA 52801

  

 

Any party may, in
substitution of the foregoing, designate a different address or addresses
within the continental United States for purposes of this section by written
notice delivered to the other party in the manner prescribed, at least ten (10)
days in advance of the date on which such change of address is to be effective.

 

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(5)           This Agreement embodies the entire
agreement between and among the parties and may be amended or supplemented only
by an instrument in writing executed by the parties hereto.

(6)           This Agreement may not be assigned
without the written consent of all the other parties hereto, which consent
shall not be unreasonably withheld. Subject to the foregoing, this Agreement
shall be binding upon, inure to the benefit of and be enforceable by the
parties hereto and their respective successors and assigns.

(7)           Time is of the essence in this
Agreement and each and every provision contained herein.

(8)           In the event of a dispute arising
between or among the parties hereto, each party shall be responsible for paying
its own attorney’s fees and court costs, if any, incurred in connection with
such dispute.

(9)           This Agreement shall be governed by
the laws of the State of Iowa and shall be construed in accordance therewith
and all of the rights and obligations hereunder shall be determined in
accordance with the laws of the State of Iowa. All parties acknowledge that
they have negotiated this Agreement in the City of Dubuque, Iowa and that the
property at issue is located in the City of Dubuque, Iowa.

(10)         The parties hereto represent to each
other that each has the full right, power and authority to enter into this
Agreement and to fully perform its obligations. The persons executing this
Agreement warrant and represent that each has the authority to execute in the
capacity stated and to bind the parties herein.

(11)         No failure by any party hereto, at any
time, to require the performance of any other party or any term of this
Agreement, shall in any way affect the right of any party to enforce such
terms, nor shall any waiver by any party of any term hereto be taken or held to
be a waiver of any other provision of this Agreement. No waiver of ant term or
provision of this Agreement shall be effective unless the same is in writing,
signed by the parties hereto.

(12)         City and DJ shall promptly record a
Memorandum of Agreement in the form attached hereto as Exhibit H in the office
of the Recorder of Dubuque

	
   

  	
  County, Iowa.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CITY OF DUBUQUE,
  IOWA

  	
  By:

  	
   

  	
  /s/ Jeanne F. Schneider, City Clerk

  
	
   

  	
   

  	
   

  	
   

  	
  Jeanne F. Schneider, City Clerk

  
	
  By:

  	
  /s/ Roy D. Buol, Mayor

  	
   

  	
   

  	
   

  
	
   

  	
  Roy D. Buol, Mayor

  	
   

  	
   

  	
   

  

 

DIAMOND JO, LLC

	
  By:

  
	
   

  	
   

  	
   

  

 

 11
 

 

EXHIBIT LIST

	
  Exhibit A

  	
   

  	
  DJ Real Estate Legal Description

  
	
   

  	
   

  	
   

  
	
  Exhibit B

  	
   

  	
  Public Parking Facility Real Estate Legal
  Description

  
	
   

  	
   

  	
   

  
	
  Exhibit C

  	
   

  	
  Conceptual Description of Public Parking Facility

  
	
   

  	
   

  	
   

  
	
  Exhibit D

  	
   

  	
  Minimum Assessment Agreement

  
	
   

  	
   

  	
   

  
	
  Exhibit E

  	
   

  	
  Port of Dubuque Adams Development, L.L.C. and The
  Durrant Group, L.L.C Proposal Exhibit F Guaranty

  
	
   

  	
   

  	
   

  
	
  Exhibit G

  	
   

  	
  Lease Agreement Between the City of Dubuque, Iowa
  and DJ Gaming Company, LLC,

  
	
   

  	
   

  	
   

  
	
  Exhibit H

  	
   

  	
  Memorandum of Agreement

  
	
   

  	
   

  	
   

  
	
  Exhibit I

  	
   

  	
  Public Parking Facility Concept

  
	
   

  	
   

  	
   

  
	
  Exhibit J

  	
   

  	
  Maintenance Services Agreement

  
	
   

  	
   

  	
   

  
	
  Exhibit K

  	
   

  	
  Operating Costs

  
	
   

  	
   

  	
   

  
	
  Exhibit L

  	
   

  	
  Par. 12 of the Development Agreement Between the
  City of Dubuque and The McGraw-Hill Companies, Inc.

  
	
   

  	
   

  	
   

  
	
  Exhibit M

  	
   

  	
  Escrow Agreement

  

 12
 

 

Exhibit A

DJ Real Estate
Legal Description

Lot 1 of Adams
Company’s 1(st) Addition, Lot 3 of Adam’s Company 2(nd)

Addition, and Lots 1 2, 3, and 4 of Adams Company 3(rd) Addition, in Dubuque

County, Iowa.

 13
 

 

Exhibit B

Public Parking
Facility Real Estate Legal Description

Part of Lots 1 and
2 of Adams Company’s 2(nd) Addition, in the City of

Dubuque, Iowa

 14
 

 

Exhibit C

Conceptual
Description of Public Parking Facility

 15
 

 

Exhibit D

Minimum Assessment
Agreement

Prepared by Barry A.
Lindhl, Esq. 300 Main Street Suite 330 Dubuque IA 52001 563.583.4113 Return to
Barry A. Lindhl, Esq. 300 Main Street Suite 330 Dubuque IA 52001 563.583.4113

MINIMUM ASSESSMENT
AGREEMENT

CITY OF DUBUQUE,
IOWA

City of Dubuque,
Iowa

THIS AGREEMENT, dated for
reference purposes the _____ day of  _______________,
2007, by and among the City of Dubuque, Iowa (City), Diamond  Jo, LLC (DJ), and the City Assessor of the
City of Dubuque (Assessor).

WHEREAS, on or before the
date hereof City and DJ have entered into the 
Dubuque Port of Dubuque Public Parking Facility Development Agreement
(the  Agreement) regarding certain real
property (the DJ Development Real Estate) 
described in Exhibit A attached hereto, located within the City of
Dubuque; and

WHEREAS, it I s
contemplated that DJ will undertake the development of an  area (the DJ Development) within the Port of
Dubuque by the construction of a  new
casino facility on the DJ Development Real Estate as provided in the  Agreement; and

WHEREAS, pursuant to
Section 403.06 of the Iowa Code, as amended, City and  DJ desire to establish a minimum market value
for the DJ Development and the DJ  Development
Real Estate, which shall be effective upon substantial completion  and from then until this Agreement is
terminated pursuant to the terms herein  and
which is intended to reflect the minimum market value of the DJ Development  and the DJ Development Real Estate; and

WHEREAS, City and
Assessor have reviewed the preliminary plans and the  specifications for the DJ Development and the
DJ Development Real Estate which  it is
contemplated will be erected.

 16
 

 

NOW, THEREFORE, the
parties to this Agreement, in consideration of the  promises, covenants and agreements made by
each other, do hereby agree as  follows:

1)  Upon substantial completion of construction by
DJ of the DJ Development  and the DJ
Development Real Estate, the minimum market value which shall be  fixed for assessment purposes for the DJ Development
and the DJ Development Real  Estate
Property described in Exhibit A attached hereto, together with the  Minimum Improvements to be constructed
thereon by Developer shall be not less  than
_______________ dollars ($___________), until termination of this  Agreement. The parties hereto expect that the
construction of the DJ Development  will
be substantially completed on or before the ___ day of _______, 20__.

2)  The minimum market value herein established
shall be of no further force  and effect
and this Agreement shall terminate on the ___ day of _______, 20__,  the final date of the City’s obligation to
pay interest or principal with  respect
to the indebtedness incurred in support of the project. In the event  said indebtedness had not been fully paid as
to principal and interest as of  _______,
20__, this Agreement shall continue in effect for such additional time  as shall be required therefore, but not later
than _______, 20__.

3)  This Agreement shall be promptly recorded by
City and DJ prior to the  recording of
any mortgage on the DJ Development Real Estate. DJ shall pay all  costs of recording.

4)  Neither the preambles nor provisions of this
Agreement are intended to,  nor shall be
construed as, modifying the terms of the Dubuque Port of Dubuque  Public Parking Facility Development Agreement
between City and DJ.

5)  This Agreement shall inure to the benefit of
and be binding upon the  successors and
assigns of the parties.

 17
 

 

	
  THE CITY OF DUBUQUE, IOWA

  	
   

  
	
   

  	
   

  	
   

  
	
  BY:

  	
  /s/ Roy D. Buol, Mayor

  	
   

  
	
   

  	
  Roy D. Buol, Mayor

  	
   

  
	
   

  	
   

  	
   

  
	
  ATTEST

  	
   

  
	
   

  	
   

  	
   

  
	
  BY:

  	
  /s/ Jeanne F. Schneider, City Clerk

  	
   

  
	
   

  	
  Jeanne F. Schneider, City clerk

  	
   

  
	
   

  	
   

  	
   

  
	
  DIAMOND JO, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  BY:

  	
  /s/ M. Brent Stevens

  	
   

  
	
   

  	
  Its

  	
   

  

 

The undersigned assessor,
being legally responsible for the assessment of the above described property
upon completion of the improvements to be made on it, certifies that the actual
value assigned to that land and improvements upon completion shall not be less
than $__________.

 

	
  

  	
   

  
	
  Richard Engelken, City Assessor

  	
   

  

 

 18
 

 

Exhibit E

Port of Dubuque
Adams Development, L.L.C.

and

The Durrant Group, L.L.C. Proposal

[Separate document
not inserted here]

 19
 

 

Exhibit F

 

 20
 

 

Prepared by Barry A.
Lindahl, Esq. 300 Main Street Suite 330 Dubuque IA 52001 563.583.4113 Return to
Barry A. Lindahl, Esq. 300 Main Street Suite 330 Dubuque IA 52001 563.583.4113

GUARANTY

THIS GUARANTY is given
this ______ day of ______. 2007, by Peninsula Gaming, LLC (hereinafter referred
to as “Guarantor”).

WITNESSETH:

WHEREAS, Guarantor owns
all of the issued and outstanding membership interests of Diamond Jo, LLC (“DJ”);

WHEREAS, DJ has entered
into the Port of Dubuque Public Parking Facility Development Agreement (the “Development
Agreement”) between the City of Dubuque, Iowa (“City”) and DJ;  WHEREAS, as part of the Development
Agreement, DJ is agreeing to a minimum assessment agreement on the DJ Real
Estate, including the DJ Development (as those terms are defined in the
Development Agreement) and has agreed to pay all property taxes assessed
against the DJ Real Estate; and

WHEREAS, pursuant to
section 1.4 of the Development Agreement and in consideration for the City
entering into the Development Agreement, Guarantor is required to guaranty the
payment of all property taxes assessed against the DJ Real Estate.

NOW, THEREFORE, the
Guarantor hereby agrees as follows:

SECTION 1.
REPRESENTATIONS AND WARRANTIES OF GUARANTOR. Guarantor hereby represents and
warrants that:

1.1. It is not in
violation of any provisions of the laws of the States of Iowa or any other
State in which it currently conducts business.

1.2. It has the power and
authority to execute, deliver and perform this Guaranty and enter into and
carry out the transactions contemplated herein which are not in contravention of,
and do not and will not constitute a default under or conflict with or violate
any indenture, mortgage, deed of trust, guaranty, lease, agreement or other
instrument to which the Guarantor or DJ are a party or by which they or their
property is bound or any law, administrative regulation, court order or consent
decree.

1.3. This Guaranty has
been duly authorized, executed and delivered by the Guarantor and all steps
necessary have been taken to constitute this Guaranty, when duly executed and
delivered, a legal, valid and binding obligation of the Guarantor.

 21
 

 

1.4. This Guaranty is
made in furtherance of the purposes of the Guarantor and that the assumption by
the Guarantor of the obligations of DJ hereunder will result in direct
financial benefits to the Guarantor.

SECTION 2. COVENANTS AND
AGREEMENTS.

2.1. Unconditional
Guaranty. Guarantor hereby unconditionally and irrevocably guarantees to the
City the prompt and complete payment of all real property taxes and assessments
payable by DJ in accordance with the terms of Section 1.8 of the Development
Agreement and the Minimum Assessment Agreement as and when said payments are
therein required to be made.

2.2. Guaranty to Remain
in Force Until Bonds are Paid. The obligations of Guarantor under this Guaranty
shall be absolute, unconditional and irrevocable and shall remain in full force
and effect until the Bonds described in Section 2.3 of the Development
Agreement are paid in full, and such obligations shall not be affected,
modified or impaired upon the happening from time to time of any event,
including without limitation any of the following, whether or not with notice
to, or the consent of, Guarantor:

(a)  the compromise, settlement,
release or termination of any or all of  the
obligations, covenants or agreements of City under the Development  Agreement;

(b)  the failure to give notice
to Guarantor of the occurrence of an event 
of default under the terms and provisions of this Guaranty or the  Development Agreement;

(c)  the waiver of the payment,
performance or observance by City or  Guarantor
of any of the obligations, covenants or agreements of them  contained in the Development Agreement or
this Guaranty;

(d)  the extension of the time
for performance of any obligation, covenant 
or agreement under or arising out of the Development Agreement or this  Guaranty or the extension or the renewal of
either thereof;

(e)  the modification or
amendment (whether material or otherwise) of any  obligation, covenant or agreement set forth
in the Development Agreement;

(f)  the taking or the omission
of any of the actions referred to in the 
Development Agreement and any actions under this Guaranty;

(g)  any failure, omission, delay
or lack on the part of City to enforce,  assert
or exercise any right, power or remedy conferred on the City in this  Guaranty or the Development Agreement, or any
other act or acts on the part  of City;

(h)  the voluntary or involuntary
liquidation, dissolution, sale or other  disposition
of all or substantially all the assets, marshaling of assets  and liabilities, receivership, insolvency,
bankruptcy, assignment for the  benefit
of creditors, reorganization, arrangement, composition with  creditors or readjustment of, or other
similar 

 

 22
 

 

proceedings affecting DJ or City or any of the assets of them, or any  allegation or contest of the validity of the
Development Agreement in any  such
proceeding;

(i)  to the extent permitted by
law, the release or discharge of Guarantor from the performance or observation
of any obligation, covenant or  agreement
contained in this Guaranty by operation of law;

(j)  any merger or consolidation
involving the Guarantor or the transfer by 
the Guarantor of all or substantially all of its assets; 

(k)  the default or failure of
Guarantor fully to perform any of his  obligations
set forth in this Guaranty, provided that the specific enumeration of the
above-mentioned acts, failures or omissions shall not be deemed to exclude any
other acts, failures or omissions, though not specifically mentioned above, it
being the purpose and intent of this paragraph that the obligation of Guarantor
shall be absolute, unconditional and irrevocable to the extent herein specified
and shall not be discharged, impaired and varied until the Bonds described in
the Development Agreement are paid in full. Without limiting any of the other
terms or provisions hereof, it is understood hereunder, there shall be no
obligation on the part of the City to resort in any manner to any other person,
firm or corporation, their properties or estates.

2.3. Liability Not
Affected by Bankruptcy. Without limiting the foregoing, it is specifically
understood that any modification, limitation, or discharge of the liability of
DJ under the Development Agreement or of the liability of the Guarantor hereunder
arising out of or by virtue of any bankruptcy, arrangement, reorganization or
similar proceeding for relief of debtors under Federal or State law hereafter
initiated by or against the Guarantor or DJ shall not affect, modify, limit, or
discharge the liability of the Guarantor hereunder in any manner whatsoever and
this Guaranty shall remain and continue in full force and effect and shall be
enforceable against the Guarantor to the same extent and with the same force
and effect as if any such proceedings had not been instituted; and it is the
intent and purpose of this Guaranty and the Guarantor shall and does hereby
waive all rights and benefits which might accrue to it by reason of any such
proceeding and the Guarantor agrees that it shall be liable to the City as
provided herein, irrespective and without regard to any modification,
limitation, or discharge of the liability of the Guarantor that may result from
any such proceeding

2.4. Right to Proceed
Against Guarantor. In the event of a default under Section 3.3(1) of the
Development Agreement, the City, in its sole discretion, shall have the right
to proceed first and directly against Guarantor under this Guaranty without
proceeding against or exhausting any other remedies which it may have under the
Development Agreement or otherwise and without resorting to any other security
held by the City.

2.5. Waiver of Notice and
Reliance on Guaranty. Guarantor expressly waives notice from the City of its
acceptance and reliance on this Guaranty. Guarantor agrees to pay all costs,
expenses and fees, including all reasonable attorneys’ fees, which may be
incurred in enforcing or attempting to enforce this Guaranty following any
default on the part of Guarantor hereunder, whether the same shall be enforced
by suit or otherwise.

 23
 

 

SECTION 3. MISCELLANEOUS.

3.1. This Guaranty shall
be construed in accordance with and governed by the laws of the State of Iowa.

3.2. This Guaranty is
entered into pursuant to the Section 1.4 of the Development Agreement.
Capitalized terms not otherwise defined herein shall have the meanings provided
in the Development Agreement.

3.3. In the event of a
default by DJ under its obligation to pay property taxes under the Development
Agreement for which the Guarantor has provided this Guaranty, the Guarantor
expressly reserves and shall be entitled to all defenses, claims and other
rights of DJ against the City or any other party.

3.4. Nonexclusive Remedy;
Notice; Waiver; Amendment. No remedy herein conferred upon or reserved to the
City is intended to be exclusive of any other available remedy or remedies, but
each and every such remedy shall be cumulative and shall be in addition to
every other remedy given under this Guaranty or now or hereafter existing at
law or in equity. No delay or omission to exercise any right or power accruing
upon any default, omission or failure of performance hereunder shall impair any
such right or power or shall be construed to be a waiver thereof; but any such
right and power may be exercised from time to time and as often as may be
deemed expedient. In order to entitle the City to exercise any remedy reserved
to it in this Guaranty, it shall not be necessary to give any notice, other
than such notice as may be herein expressly required. In the event any
provision contained in this Guaranty should be breached by Guarantor and
thereafter duly waived by the City, such waiver shall be limited to the
particular breach so waived and shall not be deemed to waive any other breach
hereunder. No waiver, amendment, release or modification of this Guaranty shall
be established by conduct, custom or course of dealing, but solely by an instrument
in writing duly executed by the City.

3.5. Entire Agreement.
This Guaranty constitutes the entire agreement and supersedes all prior agreements
between the parties with respect to the subject matter hereof and may be
executed simultaneously in several counterparts, each of which shall be deemed
an original, and all of which together shall constitute one and the same
instrument.

3.6. Severability. The
invalidity or unenforceability of any one or more phrases, sentences, clauses
or Sections in this Guaranty shall not affect the validity or enforceability of
the remaining portions of this Guaranty, or any part thereof.

3.7. Release. Following the
final payment of the Bonds, this Guaranty shall by its terms terminate and,
upon request by Guarantor, the City shall release Guarantor from the provisions
of this Guaranty in writing.

 IN WITNESS WHEREOF, the Guarantor has executed
this Guaranty on the day and year first above written.

 

 24
 

 

	
  GUARANTOR:

  	
   

  
	
   

  	
   

  
	
  PENINSULA
  GAMING, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
  STATE OF IOWA

  	
  )

  
	
   

  	
  )  SS

  
	
  COUNTY OF
  DUBUQUE

  	
  )

  
				

 

On this ________ day of
____________, 2007, before me the undersigned, a Notary Public in and for said
County, in said State, personally appeared _________________, to me personally
known, who, being by me duly sworn, did say that said person is the Guarantor,
that the instrument was signed on behalf of the Guarantor, and that he
acknowledged the execution of the instrument to be the voluntary act and deed
of the Guarantor, by it and by voluntarily executed. 

Notary Public in and for said County and State

	
  

  	
   

  	
   

  
	
   

  	
   

  	
  Notary Public in and for said County and State

  

 

 25
 

 

Exhibit G

Lease Agreement

Between

the City of Dubuque, Iowa

and

Peninsula Gaming Company, LLC,

 26
 

 

LEASE AGREEMENT

BETWEEN

THE CITY OF DUBUQUE, IOWA

AND

PENINSULA GAMING COMPANY, L.L.C.

THIS LEASE AGREEMENT,
executed in duplicate, made and entered into this 1st day of June, 2005 by and
between THE CITY OF DUBUQUE, IOWA (hereinafter called the “Landlord”) whose
address for the purpose of this Lease Agreement is City Hall, 50 West 13th
Street, Dubuque, Iowa 52001 and PENINSULA GAMING COMPANY, L.L.C. (hereinafter
called the “Tenant”) whose address for the purpose of this Lease Agreement is
3rd Street, Ice Harbor, Dubuque, Iowa 52001.

 1. PREMISES AND TERM. The Landlord, in
consideration of the rents herein reserved and of the agreements and conditions
herein contained, on the part of the Tenant to be kept and performed, leases
unto the Tenant and Tenant hereby rents and leases from Landlord, according to
the terms and provisions herein, the following described real estate, situated
in Dubuque County, Iowa, to wit: 

The patio area (Parcel B) as shown on Exhibit A attached hereto  (but specifically excluding the hydraulic lift
located on Lot B)  and by this reference
made a part hereof (the Leased Premises),  legally described as a part of Lot 6 of Ice
Harbor Development, according to the recorded plat thereof, 

with the improvements
thereon and all rights, easements and appurtenances thereto belonging, for a
term commencing at midnight of the day previous to the first day of the lease
term, which shall be on the 1st day of June, 2005, and ending at midnight on
the last day of the lease term, which shall be on the 31st day of December,
2018, upon the condition that the Tenant pays rent therefore, and otherwise
performs as in this Lease Agreement provides. 

The Landlord reserves unto
itself a non-exclusive, perpetual Public Access Easement, to run with the land,
as shown on Exhibit A, for itself and for public pedestrian access, said access
to remain open, clear and unobstructed at all times except as may be otherwise
agreed to in writing by the Landlord. 

Tenant agrees that its
rights under the Revised Ice Harbor Parking Agreement for Ice Harbor Urban
Renewal District are terminated upon execution of this Agreement. Landlord
hereby grants to Tenant, its management employees and patrons during the term
of this Agreement the non-exclusive privilege to park in Parking Lots 1 and 2
shown on Exhibit A at no additional charge (other than the rent herein) to
Tenant, its management employees or patrons. Tenant agrees that Tenant will
require that all of its employees shall park only in parking lots owned by
Tenant or in a city-owned parking garage.

 

 27

Landlord hereby grants to Tenant permission, subject
to such other permission as may be required by any other governmental entity,
to construct a two-story (not to exceed the height of the existing portside
facility) barge (as defined by Iowa Code Chapter 99F (2005)) to extend not more
than the maximum permitted by the United States Coast Guard and/or the United
States Army Corps of Engineers but in no event more than 150 feet from Tenant’s
current dock facility into the Ice Harbor. Landlord agrees to cooperate with
and support Tenant’s application to other governmental entities for any
required permission for such barge. In the event Tenant constructs such barge,
the area upon which such barge is located shall become a part of the Leased
Premises.

2. RENTAL AND COMPENSATION FOR PARKING PRIVILEGES IN
LOTS 1 AND 2. Tenant agrees to pay to Landlord as rental and compensation for
the non-exclusive parking privileges for Lots 1 and 2 for said term, as
follows:

(a)                                  Rental.
$25,000.00 per year in advance, upon full execution of this Lease Agreement and
$25,000.00 on the first day of June of each year thereafter, adjusted as
follows:

	
  First Year of Lease Term
  (2005-2006):

  	
   

  	
  $

  	
  25,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Second Year of Lease Term (2006-2007):

  	
   

  	
  $

  	
  25,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Third Year of Lease Term (2007-2008):

  	
   

  	
  $

  	
  25,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Fourth Year of Lease Term (2008-2009):

  	
   

  	
  $

  	
  25,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Fifth Year of Lease Term (2009-2010):

  	
   

  	
  $

  	
  25,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Sixth Year of Lease Term (2010-2011):

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  $25,000.00 x

  	
  COL Index June 1, 2010

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  COL Index June 1, 2009

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Seventh Year of Lease Term (2011-2012):

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $25,000.00 x

  	
  COL Index June 1, 2011

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  COL Index June 1, 2009

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Eighth Year of Lease Term (2012-2013):

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $25,000.00 x

  	
  COL Index June 1, 2012

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  COL Index June 1, 2009

  	
   

  	
   

  	
   

  	
   

  

 

 28
 

 

	
  Ninth Year of Lease Term
  (2013-2014):

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $25,000.00 x

  	
  COL Index June 1, 2013

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  COL Index June 1, 2009

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tenth Year of Lease Term (2014-2015):

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $25,000.00 x

  	
  COL Index June 1, 2014

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  COL Index June 1, 2009

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Eleventh Year of Lease Term (2015-2016):

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $25,000.00 x

  	
  COL Index June 1, 2015

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  COL Index June 1, 2009

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Twelfth Year of Lease Term (2016-2017):

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $25,000.00 x

  	
  COL Index June 1, 2016

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  COL Index June 1, 2009

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Thirteenth Year of Lease Term (2017-2018):

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $25,000.00 x

  	
  COL Index June 1, 2017

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  COL Index June 1, 2009

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fourteenth Year of Lease Term (June 1, 2018 - December 31, 2018):

  	
   

  	
   

  	
   

  
	
  $25,000.00 x

  	
  COL Index June 1, 2018(prorated)

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  COL Index June 1, 2009

  	
   

  	
   

  	
   

  	
   

  
							

 

COL Index means the Consumer Price Index for all items
for all Urban Consumers-U.S. City Average, published by the U.S. Department of
Labor, Bureau of Labor Statistics.

(b)                                 Parking
$225,000.00 per year at the rate of $18,750.00 per month beginning on the 1st
day of January 2009, and on the first day of each month thereafter, adjusted as
follows:

	
  First Year of Lease Term
  (2005-2006):

  	
   

  	
  $

  	
  0

  	
   

  

 

 29
 

 

	
  Second Year of Lease Term
  (2006-2007):

  	
   

  	
  $

  	
  0

  	
   

  
	
  Third Year of Lease Term (2007-2008):

  	
   

  	
  $

  	
  0

  	
   

  
	
  Fourth Year of Lease Term (2008-2009):

  	
   

  	
  $

  	
  0

  	
   

  
	
  Fifth Year of Lease Term (2009-2010):

  	
   

  	
  $

  	
  225,000.00

  	
   

  
	
  Sixth Year of Lease Term (2010-2011):

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $225,000.00 x

  	
  COL Index June 1, 2010

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  COL Index June 1, 2009 (base year)

  	
   

  	
   

  	
   

  	
   

  

 

Subsequent years of the lease Term shall be adjusted
by the COL Index in the same manner, using 2009 as the base year.

(c)  Parking.  In the event, however, that Tenant expands its
facilities as provided in the Eleventh Amendment to the Operating Agreement
between the Dubuque Racing Association and Tenant, dated the 31st day of May,
2005, Tenant’s payment to Landlord under this Par 2(b) shall be as follows:

$475,000.00 per year at
the rate of $39,583.33 per month beginning on the 1st day of the operation of
such new facilities, and on the first day of each month thereafter, adjusted by
the COL Index in the manner provided in (a) and (b) using the year prior to the
first year of the operation of the new facilities as the base year.

All sums shall be paid at the address of Landlord, as
above designated, or at such other place in Iowa, or elsewhere, as the Landlord
may, from time to time, designate in writing.

3. POSSESSION. Tenant shall be entitled to possession
on the first day of the term of this Lease Agreement, and shall yield
possession to the Landlord at the time and date of the close of this lease
term, except as herein otherwise expressly provided. Should Landlord be unable
to give possession on said date, Tenant’s only damages shall be a rebating of
the pro rata rental.

4. USE OF PREMISES.

It is contemplated between the parties that the
Demised Premises shall be used by Lessee for concerts (primarily but not
limited to Wednesday and Fridays), entertainment and food service to the
customers of Lessee and other members of the public and that attendance at some
of the events will require an admission fee or other charge and some will be
without charge. Lessee shall have the right, at its option, during the term of
this Lease, to use the improvements (as defined below) and the Demised Premises
in any

 30
 

 

Exhibit H

Memorandum of Agreement

 31
 

 

MEMORANDUM OF
DEVELOPMENT AGREEMENT

The PORT OF DUBUQUE PUBLIC PARKING FACILITY
DEVELOPMENT AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND DIAMOND JO, LLC
(the Development Agreement) was made regarding the following described
premises:

The Development Agreement is dated for reference
purposes the        day of
            ,
20    , and contains covenants, conditions, and
restrictions concerning the sale and use of said premises.

This Memorandum of Development Agreement is recorded
for the purpose of constructive notice. In the event of any conflict between
the provisions of this Memorandum and the Development Agreement itself,
executed by the parties, the terms and provisions of the Development Agreement
shall prevail. A complete counterpart of the Development Agreement, together
with any amendments thereto, is in the possession of the City of Dubuque and
may be examined at its offices as above provided.

Dated this        day of
            ,
20    .

CITY OF DUBUQUE, IOWA

	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Roy D. Budl, Mayor

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Jeanne F. Schneider, City Clerk

  	
   

  	
   

  

 

 32
 

 

	
  STATE OF IOWA

  	
   

  	
   

  
	
   

  	
   

  	
  :   ss

  
	
  DUBUQUE COUNTY

  	
   

  	
   

  

 

On this day of
       day of             ,
20    , before me, a Notary Public in and for the State of
Iowa, in and for said county, personally appeared Roy D. Buol and
Jeanne F. Schneider, to me personally known, who being by me duly sworn
did say that they are the Mayor and City Clerk, respectively of the City of
Dubuque, a Municipal Corporation, created and existing under the laws of tie
State of Iowa, and that the seal affixed to said instrument is the seal of said
Municipal Corporation and that said instrument was signed and sealed on behalf
of said Municipal corporation by authority and resolution of its City Council
and said Mayor and City Clerk acknowledged said instrument to be the free act
and deed of said Municipal Corporation by it voluntarily executed.

	
  

  	
   

  	
   

  
	
  Notary Public, State of Iowa

  	
   

  	
   

  

 

 33
 

 

Exhibit I

Public Parking Facility Concept

 34
 

 

Exhibit J

Maintenance Services Agreement

 35
 

 

MAINTENANCE
SERVICES AGREEMENT

BETWEEN

THE CITY OF DUBUQUE, IOWA

AND

DIAMOND JO, LLC

This Agreement is made this
       day of
             2007,
between the City of Dubuque, Iowa (City), and Diamond Jo, LLC, (DJ).

Whereas, City and DJ have entered into the Port of
Dubuque Public Parking Facility Development Agreement (the “Development
Agreement”) dated
                ,
which in part provides for City to design, develop, finance, construct, own,
and operate a parking ramp (the Public Parking Facility); and

Whereas, City will design, develop, finance,
construct, own, and operate the multi-level Public Parking Facility; and

Whereas, DJ has agreed to pay the reasonable and
necessary operating costs incurred by City for the operation, security, repair,
and maintenance of the Public Parking Facility; and

Whereas, Paragraph 1.3(3) of the Development Agreement
provides that following the opening of the Public Parking Facility, City will
contract with DJ at a total cost of $1.00 per year, for the maintenance and
security requirements of the Public Parking Facility and DJ agrees that City
may in its sole discretion, with or without cause, terminate this Agreement and
provide such reasonable and customary services with its own staff or contract
with a third party for such services, all costs for which DJ shall reimburse
City as provided in this Agreement and the Development Agreement; and that if
City terminates the Agreement, City shall purchase from DJ any equipment at its
depreciated value purchased by DJ for its maintenance and security requirements
under the Agreement; and

Whereas, pursuant to the Development Agreement the DJ
has requested to provide the maintenance and security requirements for the
Public Parking Facility as further provided herein.

IT IS AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS:

SECTION 1.  PURPOSE AND DESCRIPTION.  DJ hereby agrees to provide the maintenance and
security for the Public Parking Facility according to the terms and provisions
of this Agreement.

SECTION 2.  TERM OF AGREEMENT.  The term of this Agreement shall commence upon
the opening of the Public Parking Facility and shall continue for a five (5)
year period unless either party provides the other with notice of termination
not less than one hundred eighty (180) days prior to the end of the then
current term; provided that, the City may terminate this Agreement as its sole discretion,
with or without cause or the occurrence of an event of default at any time on
not less than thirty (30) days written notice to DJ.

 36
 

 

SECTION 3.  COMPENSATION.  As compensation for the services performed
hereunder, DJ shall be paid $1.00 per year.

SECTION 4.  MAINTENANCE AND OPERATION.

4.1. Maintenance.  DJ shall perform the following maintenance on
the Public Parking Facility:

(1)  Regular and
routine maintenance of the Public Parking Facility shall be performed, which
shall include, but not be limited to, daily pickup of trash and debris, daily
cleaning of lobbies on all floors, all stairs, landings, elevators, and
restrooms, replacing of lamps and restroom supplies (lamps, disposable restroom
supplies, general lawn care, maintenance, and replacement of landscaping, and
cleaning supplies shall be furnished by DJ) and other routine care of the
Public Parking Facility.

(2)  Necessary
special maintenance operations as circumstances require shall be performed,
including, but not limited to, removal of snow, ice and slush from entrances,
exists, steps and sidewalks, general lawn care and maintenance of the
landscaping. Snow and ice removal is to be completed by 8:00 a.m. each day and as
soon as precipitation ends at other times of the day. The top parking level,
including all exposed parking areas, is to be cleared after precipitation ends.
All snow piles shall be removed from the Public Parking Facility within
twenty-four (24) hours after snowfall ends.

(3)  Sweeping
and cleaning of the Public Parking Facility on an as needed basis but not less
than monthly.

(4)  All
preventive maintenance described on the attached Exhibit A at the times
indicated therein.

(5)  DJ shall
purchase or lease all equipment necessary to provide the services herein.

4.2. Services.  DJ shall provide and perform the following
services for the Public Parking Facility:

(1)  All
necessary utilities shall be maintained at control levels as approved by City
and shall be paid by the DJ.

(2)  Security
services including, but not limited to as follows: (i) providing assistance to
Public Parking Facility tenants with problems in entering and exiting the
Public Parking Facility; (ii) monitoring and responding to all security
equipment; (iii) maintaining an emergency plan covering emergencies occurring
in the Public Parking Facility (iv) routine patroling of the Public Parking
Facility by security

 37
 

 

personnel; (v) monitoring of security cameras (which
shall also be monitored at the 911 Emergency Communications Center); and (vi)
such other security measures as the City shall reasonably require.

(3)  Such other
services as City may reasonably require from time to time that are necessary to
maintain and operate the Public Parking Facility in a manner consistent with
the standards of operation of other parking Public Parking Facility facilities
in the City of Dubuque.

SECTION 5.  RIGHT TO INSPECT AND MAKE REPAIRS.

5.1.  City shall have the right any time to:

(1)  Inspect the
Public Parking Facility.

(2)  Perform
maintenance and make repairs and replacements in any case where DJ is obligated
to do hereunder and where DJ has failed, after reasonable notice, to do so, in
which even DJ shall reimburse City for the cost thereof, promptly upon demand.

(3)  Perform
maintenance and make repairs and replacements in any case where City determines
that it is necessary or desirable, to do so, in order to preserve the safety of
the facilities or not correct any condition like to cause injury or damage to
persons or property.

SECTION 6.  STANDARDS OF SERVICE.  It is the policy of City that the Public Parking
Facility shall be operated in an efficient manner, giving the best possible
service to the public. DJ agrees to cooperate at all times in support of this
policy and to manage and operate the Public Parking Facility in accordance with
the terms and conditions of this Agreement.

SECTION 7.  INSURANCE REQUIREMENTS

7.1.  DJ shall acquire and maintain at its own
expense insurance as set forth in the attached Insurance Schedule as such
schedule may from time to time be amended by City.

7.2.  Before assuming operation of the Public
Parking Facility, DJ shall submit to City certificates of insurance required
under this Section.

7.3.  City shall provide general liability insurance
coverage for City, its officers and employees, and fire and casualty insurance
coverage for the Public Parking Facility, which shall be included as operating
costs paid by DJ.

SECTION 8.  PAYMENT OF EXPENSES.  All operating costs for the Public Parking Facility
shall be paid by DJ as provided in Section 1.3 of the Development Agreement.
Capital maintenance items shall be paid from the Sinking Fund described in
Section 1.5 of the Development Agreement.

SECTION 9.  ASSIGNMENT.  DJ shall not, at any time, assign this
Agreement or any part hereof, without the prior written consent of City.

 

 38
 

SECTION 10.  GENERAL PROVISIONS.

10.1.  Compliance With Law.  DJ shall comply at all times during the terms
of this Agreement, with all applicable ordinances and laws of the City of
Dubuque, county, or state government or of the United States Government, and of
any political division or subdivision or agency authority or commission thereof
that may have jurisdiction to pass laws or ordinances with respect to the
Public Parking Facility.

10.2.  Reservation Of Rights.  Any and all rights and privileges not granted
to DJ by this Agreement are hereby reserved for and to City.

10.3.  Governing Law.  This Agreement and all disputes arising
hereunder shall be governed by the laws of the State of Iowa.

10.4.  Nonwaiver Of Rights.  No waiver of default by either party of any of
the terms, covenants, and conditions hereof to be performed, kept, and observed
by the other party shall be construed as, or shall operate as, a waiver of any subsequent
default of any of the terms, covenants, or conditions herein contained, to be
performed, kept, and observed by the other party.

10.5.  Severability.  If one or more clauses, sections, or
provisions of this Agreement, or the application thereof, shall be held to be
unlawful, invalid, or unenforceable, the remainder and application hereof of
such provision shall not be affected thereby, provided, however, that if any
provisions herein allowing termination of this Agreement by City in its sole
discretion shall be held to be unlawful, invalid, or unenforceable, then this
entire Agreement shall be void.

10.6.  Paragraph Headings.  The paragraph headings contained herein are
for convenience in reference and are not intended to define or limit the scope
of any provision of this Agreement.

10.7.  Force Majeure.  Neither party will be liable for delays in
performance cause by acts of God or government authority, strikes, or labor
disputes, or other cause beyond the reasonable control of that party.

10.8.  Entire Agreement.  This Agreement, together with all the
Development Agreement and exhibits attached hereto and thereto, constitute the
entire Agreement between the parties hereto, and all other representations or statements
heretofore made, verbal, or written, are merged herein, and this Agreement may
be amended only in writing, and executed by duly authorized representatives of
the parties hereto.

10.9.  Partnership Disclaimer.  It is mutually understood that nothing in this
Agreement is intended or shall be construed as in any way creating or establishing
the relationship of partners between the parties hereto.

10.10.  Agreement Construction.  Words and phrases herein shall be construed as
in the singular or plural, number, and a masculine, feminine, or neuter gender,
according to the context.

 

 39
 

 

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

	
  CITY OF DUBUQUE, IOWA

  	
   

  	
  DIAMOND Jo, LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ Roy D. Buol

  	
   

  	
  By:

  	
   

  	
  /s/ M. Brent Stevens

  
	
   

  	
   

  	
  Its

  	
   

  	
   

  	
   

  	
  Its

  

 

 40
 

 

EXHIBIT A

MAINTENANCE SCHEDULE

 41
 

 

EXHIBIT A

PREVENTATIVE MAINTENANCE REQUIREMENTS

 

 42
 

 

INTRODUCTION

This plan is intended to
assist those involved in establishing and funding an operating maintenance program
for the Port of Dubuque ramp.

The maintenance program
is divided into three categories:

	
  Operational:

  	
   

  	
  Most maintenance is provided by onsite daily
  employee(s). Some maintenance is provided by professionals, usually under a maintenance
  contract. This work maintains the routine operation of the facility.

  
	
   

  	
   

  	
   

  
	
  Aesthetics:

  	
   

  	
  Partially provided by onsite daily employee(s) and
  partially by an outside professional. This work addresses primarily the appearance
  of the facility.

  
	
   

  	
   

  	
   

  
	
  Structural:

  	
   

  	
  Initial observations provided by onsite daily
  employee(s) augmented by professional inspection and maintenance. This work addresses
  the long term structural integrity of the facility.

  

 

A chart establishing a
maintenance schedule with required daily, weekly, monthly, quarterly,
semi-annual, and annual maintenance tasks is provided.

 43
 

 

PREVENTATIVE
MAINTENANCE PROGRAM

Operational and aesthete
maintenance is ongoing and must be planned for in the operational budget. With
good operational maintenance, electrical, mechanical, and structural repairs
should be required less often. Good preventative maintenance reduces major
repairs and therefore should be planned for.

Operational maintenance
must be in the daily routine of the onsite personnel. Poor operational
maintenance can lead to costly repairs, can cause unsafe and unsightly
conditions, and can even close the facility. Operational maintenance involves
all building systems: cleaning floors, walls, windows, lobbies, etc., door and
hardware operation, electrical and mechanical systems, parking control systems,
plumbing and drainage systems, roofing and waterproofing, safety equipment, and
ice or snow removal.

One of the most
overlooked and least scheduled operations is cleaning. Proper cleaning not only
keeps the facility aesthetically pleasing, it reduces future structural
repairs. In the winter, chlorides, or salt, are brought into the facility from
the snow on the streets and sidewalks. This chloride will produce future
corrosion of embedded reinforcing and post tensioning steel. Simple floor washing
minimizes the amount of chloride absorbed into the concrete, thus reducing
future deterioration caused by the corrosion of the steel. Critical areas, such
as flat areas, entrance ramps and drive aisles must be flushed regularly. Full
sized power washing equipment works best and should be scheduled at least
quarterly. Routine floor sweeping also reduces future damage by unblocking
drains and allowing water to freely flow to the drains and evaporate as quickly
as possible.

A solid plan for snow and
ice removal is paramount. Improper application of deicing chemicals can cause
extensive structural damage, damage to metal doors and frames, and even damage
to the landscaping.

It is important to
minimize the use of any de icing chemicals during the first two years of a
structure until is has obtained its full durability, however, use of sand is
prohibited. De icing products must be approved by the Parking System Supervisor.

Expansion Joints can be
damaged by snow plows, shovels, and ice scraping tools. The snow plow operator
must be familiar with the facility and must raise his plow at the exposed
expansion joint. The plow should approach the joint at an angle rather than
straight on. This will reduce the chance of catching the joint on the edge of
the plow. It may be helpful to place a colored flag or wall marking adjacent to
the joint for easy identification.

Snow and ice removal
around drains is of utmost importance. Daily observation and cleaning should be
scheduled as the ice and snow melt to prevent drain blockage.

Snow plowing must be
carefully controlled on the top deck of the ramp. It is common for snow plow
operators to pile the snow on one side or in one corner. Piled snow will
overload the structure. A plowing pattern and a plan of removal must be
developed to prevent overloading. This may include side chutes, an open area
for dumping the snow over the side of the ramp, the use of an open bed truck
for removal, or closing the top deck during heavy snow.

Operational maintenance
and regularly professional preventative maintenance on electrical, elevator,
mechanical and plumbing systems, parking control, and security systems will
reduce unexpected breakdowns. Routine plans for proper oiling, greasing, belt
replacement, etc. should be carried out in accordance with manufacturer’s
recommendations. All equipment requiring professional preventative maintenance
should be on contract for services. Before the onset of winter,

 44
 

 

water pipes, sprinklers,
hosebibs, and drain lines must be either drained of water or their heating
systems must be cheeked for good operation. Heat tapes, if used, must be
checked regularly during continuous operation.

Aesthetic maintenance is
necessary for an attractive, well maintained appearance. Some operational
maintenance, such as regular sweeping and clearing also become aesthetic
maintenance. Signs, graphics, and paint quality should be routinely examined
for good appearance.

Choosing the correct
paint for painted concrete surfaces is essential for long lasting paint and for
the protection of the concrete. Water based latex paints should always be
chosen to be applied to concrete. Latex paints remain breathable in service.
Paints such as polymer paints are not breathable and will peal off when
moisture evaporates out of the concrete. Oil based paints are somewhat
breathable, however the natural alkalinity of concrete tends to deteriorate the
paint more rapidly than latex paint. Metal surfaces should be painted with
enamel paints or zinc-rich paints. Enamel paints are the best general purpose
paints for metal surfaces while zinc-rich paints are best for high humidity
areas or as a primer on exposed steel surfaces.

Good surface preparation
including removal of dirt, Oil, grease, and surface contaminants must always be
done before any paint is applied. For metal surfaces, existing rust should be
scraped to clean metal and primed before final coating. All paints should be
applied above 50 degrees. Paint should not be applied late in the day when conditions
would allow condensation to occur at right, or when rain is expected.

Structural examination
begins with routine observation by the onsite personnel and is augmented by a
structural engineer if deterioration is noticed. Biennial examination by a structural
engineer is recommended until the structure is approximately 10 to 15 years
old. After that, annual examination is recommended due to the higher incidence
of deterioration.

Onsite personnel should
be made aware of how to recognize structural deterioration and should notify
property management if any is observed. Property management personnel should
know whom to contact if deterioration is observed.

Life expectant of
materials must also be accounted for when considering long maintenance
budgeting. The life expectancy of most of the equipment will be in order of 20
years, at which time equipment must be replaced; the life of roofing and plaza
waterproof membranes will also be 20 years; the life of the traffic bearing
membrane will be approximately 10 years; the life of window sealants will be
approximately 20 years; the life of the building sealants, i.e. caulking, will
be approximately 8 to 10 years; and the life of the concrete floor sealer is 5
years.

The following chart shows
the frequency of performing the required maintenance. In the chart, “R” denotes
the recommended frequency, “M” denotes the bare minimum frequency, “P” denotes
a required professional inspection. For those tasks with “M” only, the minimum
frequency is also the recommended frequency.

 45

	
  Maintenance task

  	
   

  	
  Frequency

  	
   

  	
  D

  	
   

  	
  W

  
	
  M      Q      S      A      N

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Daily, Weekly, Monthly, Quarterly, Semiannually,
  Annually, Note number

  	
   

  	
   

  	
   

  	
   

  
	
  OPERATIONAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. 

  	
  Cleaning

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  Sweeping local areas

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
  Complete ramp sweep down

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  R

  	 

	
  M

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  Sweep debris that collects in expansion joints

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
  Empty trash cans

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
  Clean restrooms

  	
   

  	
   

  	
   

  	
  M

  	
   

  	
   

  	 

	
   

  	
  Cashier booths - floors, fixtures

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
  walls, windows

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  R

  	 

	
  M

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  Elevators - floors, door tracks

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
  windows

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  R

  	 

	
  M

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  Stairs - floors, door tracks

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
  walls, windows

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  R

  	 

	
  M

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  Lobby

  	
   

  	
   

  	
   

  	
  M

  	
   

  	
   

  	 

	
   

  	
  Complete ramp floor wash down with power wash

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  R

  	 

	
   

  	
  M         1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  Parking control equipment - directional signage

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  Ponding Remove water      2

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  Ice and snow removal        2

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  2. 

  	
  Doors and
  Hardware

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  Doors close and mechanisms work properly

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
  Lubrication - adjustment

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  3. 

  	
  Electrical
  System

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  Check light fixtures, switches and operation

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
  Relamp light fixtures

  	
   

  	
   

  	
   

  	
  2

  	
   

  	
   

  	 

	
   

  	
  Distribution panels

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  P

  	 

	
   

  	
  Fire control system, if applicable

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
  P         3

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  Emergency generator, if applicable

  	
   

  	
   

  	
   

  	
  M

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  4. 

  	
  Elevator

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

														

 

	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Check for normal operation

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  
	
   

  	
  Check indicator panels and lights

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  
	
   

  	
  Preventative maintenance service

  	
   

  	
   

  	
   

  	
  P

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5. 

  	
  Heating,
  Ventilation and Air Conditioning (HVAC)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Check for proper operation

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  
	
   

  	
  Preventative maintenance service

  	
   

  	
   

  	
   

  	
  M

  	
   

  	
  P

  
	
   

  	
  M         P        3

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6. 

  	
  Parking Control
  System

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Check for proper operation

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  
	
   

  	
  Preventative maintenance service

  	
   

  	
   

  	
   

  	
  P

  	
   

  	
  3

  

 

 46
 

 

	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7. 

  	
  Plumbing and
  drainage systems

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Check for proper operation

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  Sanitary facilities

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
  Irrigation, if applicable

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  Floor drains

  	
   

  	
   

  	
   

  	
  M

  	
   

  	
   

  	 

	
   

  	
  Flush floor drain system every spring

  	
   

  	
   

  	
   

  	
  M

  	
   

  	
   

  	 

	
   

  	
  Sump pump

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
  Fire protection system, if applicable

  	
   

  	
   

  	
   

  	
  M

  	
   

  	
   

  	 

	
   

  	
  Drain water system far winter

  	
   

  	
   

  	
   

  	
  M

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  8. 

  	
  Roofing and
  Waterproofing

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  Check for leaks

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  Roofing

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
  Joint sealant in floors

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
  Expansion Joints

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
  Windows, doors and walls

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
  Floor membrane areas

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
  Check for deterioration

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  9. 

  	
  Safety Check

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  Carbon monoxide monitor, if applicable

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
  Handrails and guardrails

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
  Exit lights

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
  Emergency lights

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
  Tripping hazards

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  10. 

  	
  Security System

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  Check for proper
  operation

  	
   

  	
   

  	
   

  	
  N

  	
   

  	
  P

  	 

	
   

  	
  3

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  AESTHETICS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  1. 

  	
  Signs and
  graphics

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  Check for proper operation

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  In place

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
  ′′

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  Clean

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
  Legible

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
  Illuminated

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  2. 

  	
  Painting

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  Check for rust spots

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
  Doors and door frames

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
  Handrails and guardrails

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
  Pipe guards, exposed pipes and conduits

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
  Other metal

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
  Check for appearance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  Striping

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
  Signs

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
  Walls

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
  Curbs

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
  Touch up paint

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  	 

	
   

  	
  Repaint

  	
   

  	
   

  	
   

  	
  2

  	
   

  	
   

  	 

																	

 

 47
 

 

	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3. 

  	
  Landscaping,
  sidewalks

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Remove trash

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  
	
   

  	
  Planted areas

  	
   

  	
   

  	
   

  	
  M

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  STRUCTURAL
  EXAMINATION AND EVALUATION

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Concrete deterioration

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  
	
   

  	
  P

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Concrete cracking

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  
	
   

  	
  P

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Post tension anchors

  	
   

  	
   

  	
   

  	
  P

  	
   

  	
   

  
	
   

  	
  Water leakage and penetration

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  
	
   

  	
  P

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Expansion Joints

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  
	
   

  	
  P

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Guard rails and wires

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  
	
   

  	
  P

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Stair tower structure

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  
	
   

  	
  P

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Concrete membranes and coatings

  	
   

  	
   

  	
   

  	
  R

  	
   

  	
  M

  

 

Notes:

1.                                       Wash
dawn with power washing equipment is recommended on a quarterly schedule. If
performed less often, at a minimum, power washing should be performed in the
spring. The work may be performed by the onsite employee if trained in
equipment operation. Otherwise, professional cleaners may be required.

2.                                       Perform
as needed

3.                                       This
equipment should be under a service contract for regular preventative maintenance
and emergency service. The equipment manufacturer’s recommendations for
inspection and preventative maintenance should be followed.

 48
 

 

INSURANCE SCHEDULE

 49
 

 

Exhibit K

 Operating Expenses for the Public Parking
Facility include the Following:

·              Staffing (Maint./Cleaning/Secuirty/Customer
Service)

·              Utilites (Phone, electric, water,
etc.)

·              Insurance

·              Property

·              General Liability

·              Snow/Ice Removal

·              Maintenance Contracts

·              Property Maintenance (General
damage repair, painting, etc.)

·              Supplies (Replacement lights,
cleaning supplies, bathroom supplies, etc.)

·              Striping and other painting

·              Landscaping

·                                          Administrative
overhead, which shall be limited to $10,000 per year for any year that DJ has
the Maintenance Services Agreement with City for the Public Parking Facility or
$21,610 per year for all years that DJ does not have such Maintenance Services
Agreement. Such amounts shall be adjusted annually by the increase, if any,
from the previous year in the Consumer Price Index for all items for All Urban
Consumers-U.S. City Average, published by the U.S. Department of Labor, Bureau
of Labor Statistics.

·              Security.

 

 50

Exhibit L

Par. 12 of the
Development Agreement Between the City of Dubuque and The McGraw-Hill
Companies, Inc.

SECTION 12. PARKING. City
owns the real estate (the Parking Property) which adjoins the Property shown on
Exhibit B and is intended for use for parking purposes. In connection
therewith, the parties agree as follows: 12.1. Construction of Improvements by
McGraw-Hill. Within the timeframes set forth in Section 10.3, McGraw-Hill
shall, at its sole expense, complete the grading, paving, landscaping including
Islands, and lighting the Parking Property according to plans and
specifications approved by City and consistent with City standards including
the Port of Dubuque Design Standards. The Parking Property shall be divided
into Lot A and Lot B as set out on Exhibit B. McGraw-Hill shall be responsible
for obtaining of all necessary permits, and shall be responsible for and pay
for the cost of drainage and storm water improvements required by City
standards and state and federal law for the development of the Parking
Property. City shall pay only those costs pre-approved by City for
transportation and disposal of fill required to be removed from the Parking

 51
 

 

Property as a result of
construction by McGraw-Hill of the Improvements contemplated by this Section
12. McGraw-Hill shall use all reasonable efforts in its design and improvement
of the Parking Property to limit the need to remove fill from the Parking
Property. The City shall be provided with prompt notice of the believed need to
remove fill from the Parking Property so as to allow City to make arrangements
for sampling and analysis of such fill, and McGraw-Hill shall allow such
activities by City. City shall not be responsible for transportation and
disposal of fill placed on the Parking Property by McGraw-Hill, its employees,
agents or contractors.

12.2. Construction of
Improvements by City. City shall install gates and controls and underground
services to those gates and controls to control access to Lot B, so as to
permit the types of uses set out below in this Section 12.4. The Installation
of gates and controls and underground services to the gates and control shall
be substantially completed by eighteen (18) months after the Closing Date. City
shall have the right to install, at City’s expense and during the construction
of the Parking Let by McGraw-Hill or at such later data as City determines,
additional electrical service, water, staging, and be downs. 12.3. Maintenance
of Parking Property. Maintenance, repair and replacement of the Parking Property
shall be the sole responsibility and expanse of City, including but not limited
to:

Snow removal on Parking Property and adjacent sidewalks completed by
7:00 a.m. and 3:00 p.m. each day;

Salting of Parking Property and adjacent sidewalks completed by 7:00
a.m. and 3:00 p.m. each day;

Maintenance of the lawn sprinkler system;

Replacing bushes, trees, etc., as needed;

Lighting maintenance;

Parking lot spring clean-up; and

Monthly parking lot sweeping during non-winter months.

12.4.Use of Parking Lots.

(1)             Lot
A shall consist of non-assigned spaces for McGraw-Hill’s employees at no cost
to such employees for parking between the hours of 6:00 a.m. and

 52
 

 

5:00 p.m. or such later
time for a specific day as the City Manager may upon written request of
McGraw-Hill agree, Monday through Sunday, fifty-two weeks per year. Subject to
Section 12.4(3), City shall have the right to allow parking in Lot A by the
public during such hours and at any other time. Notwithstanding the foregoing,
McGraw-Hill employees who have already parked in Lot A prior to 5:00 p.m. may
remain parked in Lot A until their workday is completed except on a day that
City has notified McGraw-Hill in writing seven days in advance that employees
may not remain In Lot A after 5:00 p.m. on that day.

(2)  Lot B shall consist of non-assigned spaces
for McGraw-Hill’s employees at no cost to, such employees for parking between
the hours of 6:00 a.m. and 5:00 p.m. or such later time for a specific day as
the City Manager may upon written request of McGraw-Hill agree, Monday through
Friday, fifty-two weeks per year, except holidays. Subject to Section 12.4(3);
City shall have the right to allow parking in Lot B by the public during such
hours and at any other time and to use Lot B at any other time for such purposes
as City determines appropriate. Notwithstanding the foregoing, McGraw-Hill
employee who have already parked in Lot B prior to 5:00 p.m. may remain parked
in Lot B until their workday is completed except on a day that City has
notified McGraw-Hill in writing seven days in advance that employees may not
remain in Lot B after 5:00 p.m. on that day.

(3)  It is the intent of the parties under
Sections 12.4(1), and (2) that all McGraw-Hill employees will he guaranteed a
parking space, but not to exceed the 513 spaces shown on the attached Site
Plan, in Lot A or Lot B between the hours of 6:00 a.m. and 5:00 p.m. Monday
through Friday, fifty-two weeks per year, except holidays, and public parking
will be limited by City to effectuate such guaranteed parking. In order to
assure that City makes sufficient parking spaces available to McGraw-Hill for
its employees and to efficiently manage the lot, McGraw-Hill will notify City
upon its initial occupancy of the office building of the average number of
employees for the month who will work at the office building between the hours
of 6:00 a.m. and 5:00 p.m. Monday through Friday and thereafter whenever there
is any increase or decrease in the average monthly number of such employees.

(4)  For purposes of this paragraph, holidays
shall mean New Years Day, Memorial Day, 4th of July, Labor Day, Thanksgiving
and Christmas Day, and the following Monday when any of the foregoing named
legal holidays fall on a Sunday.

12.5. Parking Facility.
If City constructs a parking structure in the Port of Dubuque north of Third
Street, upon completion of the parking structure, all rights of McGraw-Hill and
its employees as provided In Par. 12.4(2) shall transfer to the parking
structure and such parking rights shall be exclusive to the parking structure.
Such structure shall be constructed within 1,200 feet of the Property.

 53
 

 

Exhibit M

Escrow Agreement

 54
 

 

ESCROW AGREEMENT

BETWEEN

THE CITY OF DUBUQUE, IOWA

AND

DIAMOND JO, LLC

                This Escrow Agreement, dated               ,
2007 (Escrow Agreement) is entered into between Diamond Jo, LLC (DJ) and the
City of Dubuque, Iowa (City).

                WHEREAS, DJ and City entered into the Port of Dubuque
Public Parking Facility Development Agreement dated even date herewith (the
Development Agreement) whereby DJ agreed to deposit funds with City to be held
in escrow and to be disbursed as provided in the Development Agreement.

                NOW, THEREFORE, in consideration of the premises set
forth above and other good and valuable consideration, the receipt of which is
hereby acknowledged, the parties hereto agree as follows:

SECTION 1. DEPOSIT OF
ESCROW FUNDS. As provided in Section 1.2 the Development Agreement, prior to
and as a condition of award by City of the contract for the construction of the
Parking Facility (as that term is defined in the Development Agreement), DJ
will deliver to City the sum of Six Million Three Hundred Fifty Thousand
Dollars ($6,350,000) less such amounts that have already been paid by DJ to
City for the design and construction of the Parking Facility (Escrow Funds) to
be held by City in accordance with the terms hereof. Subject to and in accordance
with the terms and conditions hereof, City agrees that it shall receive, hold
in escrow, invest and reinvest and release or distribute the Escrow Funds. It
is hereby expressly stipulated and agreed that all interest, dividends and
other earnings on the Escrow Funds shall become a part of the Escrow Funds, and
shall be held by City and disbursed as provided in the Development Agreement.

SECTION 2. INVESTMENT OF
ESCROW FUNDS. City shall deposit the Escrow Funds received under this Escrow
Agreement, including principal and interest, in a money market fund account at
Dubuque Bank & Trust Company, Dubuque, Iowa, and shall not move or transfer
the Escrow Funds except as provided herein or unless otherwise agreed upon in
writing by DJ. The parties agree that, for tax reporting purposes, all interest
or other taxable income earned on the Escrow Funds in any tax year shall be
taxable to DJ.

SECTION 3. DISBURSEMENT OR
WITHDRAWAL OF ESCROW FUNDS.

3.1. City is hereby
authorized to make disbursements or withdrawals of the Escrow Funds as follows:

                (a)  In
compliance with the terms and provisions of the Development Agreement; or

                (b)  According
to written instructions signed by both City and DJ.

 55
 

 

3.2. A copy of each
withdrawal, including reasonable documentation thereof, shall be delivered to
DJ at the time of withdrawal, but DJ’s consent shall not be required to any
such withdrawal that is in compliance with the Development Agreement.

SECTION 4. NOTICES. All
notices, requests, demands, and other communications under this Escrow
Agreement shall be in writing and mailed or delivered to the party to whom
notice is to be given, by first class mail, registered or certified, postage
prepaid, and properly addressed, return receipt requested, to the party at the
address provided in the Development Agreement or, to such other address as a
party shall designate by written notice to ail other parties to the Escrow
Agreement.

SECTION 5. TERMINATION OF
ESCROW. This Escrow Agreement shall terminate upon the disbursement, in
accordance with the terms hereof, of the Escrow Funds in full.

SECTION 6. GOVERNING LAW;
JURISDICTION. This Escrow Agreement shall be construed, performed, and enforced
in accordance with, and governed by, the internal laws of the State of Iowa,
without giving effect to the principles of conflict of laws thereof.

SECTION 7. AMENDMENTS;
WAIVERS. This Escrow Agreement may be amended or modified, and any of the
terms, covenants, representations, warranties, or conditions hereof may be
waived, only by a written instrument executed by the parties hereto, or in the
case of a waiver, by the party waiving compliance. Any waiver by any party of
any conditions, or of the breach of any provision, term, covenant,
representation, or warranty contained in this Escrow Agreement, In any one or
more instances, shall not be deemed to be nor construed as further or continuing
waiver of any such conditions, or of the breach of any other provision, term,
covenant, representation, or warranty of this Escrow Agreement.

SECTION 8. COUNTERPARTS.
This Escrow Agreement may be executed in two or more counterparts, all of which
taken together shall constitute one instrument.

SECTION 9. ENTIRE AGREEMENT.
This Escrow Agreement and the Development Agreement contain the entire
understanding among the parties hereto with respect to the escrow contemplated
hereby and supersedes and replaces all prior and contemporaneous agreements and
understandings, oral or written, with regard to such escrow.

SECTION 10. SECTION
HEADINGS. The section headings in this Escrow Agreement are for reference
purposes only and shall not affect the meaning or interpretation of this Escrow
Agreement.

SECTION 11. SECTION 11.
SEVERABILITY. In the event that any part of this Escrow Agreement is declared
by any court or other judicial or administrative body to be null, void, or
unenforceable, said provision shall survive to the extent it is not so
declared, and all of the other provisions of this Escrow Agreement shall remain
in full force and effect.

                IN WITNESS WHEREOF, the parties hereto have caused
this Escrow Agreement to be signed the day and year first above written.

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  DIAMOND JO, LLC

  	
  CITY OF DUBUQUE, IOWA

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Roy D. Buol, Mayor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Its:

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
  Jeanne F, Schneider,

  
	
   

  	
   

  	
  City Clerk

  
						

 

 57Exhibit 10.2

FIRST AMENDMENT

TO

PORT OF DUBUQUE PUBLIC PARKING FACILITY

DEVELOPMENT AGREEMENT

BETWEEN

THE CITY OF DUBUQUE, IOWA

AND

DIAMOND JO, LLC

Whereas, a Development Agreement (the Agreement), dated February 5, 2007,
was entered into by and between the City of Dubuque, a municipal corporation of the State of Iowa (City), and
Diamond Jo, LLC (f/k/a DJ Gaming Company,
LLC), a Delaware limited liability company (DJ); and

Whereas, City and DJ now desire
to amend the Development Agreement as set forth herein.

Now, therefore, the parties
agree that the Development Agreement is amended as follows:

1. Section 2.1 is amended to read as follows:

2.1.          Design and
Construction of the Public Parking Facility. Subject to the conditions set forth in this Agreement, City
agrees to design and construct the Public
Parking Facility at a cost estimated to be approximately $23,043,800.00 on
the Public Parking Facility Real Estate.

(1)            The
footprint of the Public Parking Facility shall be consistent with the
concept shown on Exhibit I, and in harmony with the DJ Development and the Port of Dubuque Adams Development, L.L.C., and
The Durrant Group, L.L.C. Development in appearance and function.

(2)            City
shall retain either YWS Architects or The Durrant Group, Inc., based on
whichever architect comes in with the lower bid, to design the Public Parking Facility on terms acceptable to City in its sole
discretion (the “Project Architect”).

(3)            City shall hold weekly progress meetings
with the Project Architect, DJ and its
representatives during the design and construction of the Public Parking
Facility.

City agrees to allow DJ to
provide input and comments on the design of the Public Parking Facility, including but not limited to providing DJ
timely copies of all design
documents and correspondence regarding design and providing timely notice to DJ of any meetings
regarding the design of the Public
Parking Facility and allowing DJ to attend such meetings.

(4)                                  In
the event City fails to retain the Project Architect by March 1, 2007, DJ may at its option terminate this
Agreement by written notice to City.
Termination of this Agreement shall be DJ’s sole remedy for failure of City
to retain the Project Architect. DJ shall not be entitled to reimbursement of any costs or damages incurred by
DJ in connection with this Agreement.

(5)                                  City shall retain as a cost of the design of the
Public Parking Facility an
architecture firm to provide such design review as City determines necessary
of the Project Architect’s design.

(6)                                  The parties agree that the Public Parking Facility
shall be designed to include a north
façade alternate (the “North Façade Alternate”), which shall be included
as part of the plans and specifications for the Public Parking Facility and bid
at the same time as the primary construction contract
for the Public Parking Facility. The City shall have the right, in its sole
discretion and without the prior consent of DJ, to either (i) accept a bid and
proceed with the construction of the North Façade
Alternate as part of the primary
construction contract for the Public Parking Facility, or (ii) decline
to accept a bid for the North Façade
Alternate when the primary construction contract is awarded. If the City
determines not to accept a bid for the
North Façade Alternate when the primary construction contract for the Public Parking Facility is
awarded, the City shall calculate the average of all bids received for
the construction of the North Façade
Alternate that were received at such time, and the average amount so calculated
or, if greater, the amount bid by the contractor being awarded the primary
construction contract, shall be included in the amount of the Bonds described in Section 2.3 hereof. The City
shall place the proceeds from the Bonds related to the North Façade Alternate in an interest bearing
account. At any time prior to June 1, 2012, the City may determine to use those
Bond proceeds, and such other City funds as it may determine to be appropriate, to construct the North Façade
Alternate. In the event the City does not elect to use those Bond
proceeds to construct the North Façade
Alternate prior to June 1, 2012, those Bond proceeds
including investment income thereon, will be applied to redeem Bonds on
that date or as soon as is practicable once such election is made pursuant to
the redemption provisions of the Bonds generally described in Section 2.3 (4)
below.

2. Section 2.3 is amended to read as follows:

2.3.                              City
Financing Obligations. City agrees, subject to the conditions set forth in Section 2.4 below, to issue tax increment
financing bonds (the Bonds) for the remaining costs associated with the
design and construction of the Public Parking Facility in such amount as to
allow for the Bonds to be paid off over a

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period of thirty (30) years
utilizing the Incremental Property Tax Revenues (as defined below) and the
income earned on any reserve fund, in whole, or in part should the
Incremental Property Tax Revenues and income earned on any reserve fund exceed
the Bond payment obligations from the DJ Development and assuming a minimum assessment amount as provided in Exhibit D.

(1)                                  Interest and principal shall be paid from
Incremental Property Tax Revenues
generated by the DJ Development and income earned on the any reserve
fund, as provided in Exhibit D.

(2)                                  DJ recognizes and agrees that Incremental
Property Tax Revenues are solely and only the incremental taxes
collected by City in respect to the DJ
Development, which does not include property taxes collected for the payment of bonds and interest of each taxing
district, and taxes for the regular
and voter-approved physical plant and equipment levy, and any other
portion required to be excluded by Iowa law. Accordingly, the parties understand that due to the amounts that
are legally required to be excluded from the Incremental Property Tax Revenues,
such incremental taxes will not
include all amounts paid by DJ as regular property taxes.

(3)                                  DJ
acknowledges and agrees that it shall identify for City a purchaser for the Bonds (the Purchaser) and City
agrees to negotiate in good faith with the Purchaser with respect to the
terms of the Bonds. Except as specifically set forth herein, DJ further
acknowledges and agrees that the Bonds
shall be sold on such terms and conditions, bear such interest rates, have such
reserve funding requirements, mature at such times and in such amounts as City,
in its sole but reasonable, good faith discretion, shall determine to be
acceptable to it and the Purchaser and
shall be payable from and secured solely and only by a pledge of the Incremental Property Tax Revenues to be collected
by City in respect of the DJ Development and income earned on any reserve fund
during a period not to exceed thirty (30) years.

(4)                                  Proceeds
of the Bonds shall be applied only to the payment of capitalized interest thereon (if necessary), debt service reserve
funding, costs of issuance and the payment of the costs of the design
and construction of the Public Parking
Facility. The terms of the Bonds shall provide
in substance that the portion of the Bonds issued in anticipation of the construction of the North Façade
Alternate, plus any income earned thereon,
and not so used for that purpose, shall be used by the City to defease or call Bonds upon the election described
under Section 2.1(6) hereof.

(5)                                  City shall have no obligation to fund the costs
of the design and construction of
the Public Parking Facility to be paid hereunder from any source other
than the proceeds of the Bonds.

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(6)                                  City’s
obligation to issue the Bonds and undertake its obligations hereunder shall be
subject in all respects to unavoidable delays, the provisions of this Section
and Section 2.4, and to the satisfaction of all conditions required (in the reasonable judgment of bond counsel for
City) by Chapter 403 of the Code of Iowa, as amended, with respect to
the issuance of the Bonds.

(7)                                  The
parties agree that in the event the election is not made by the City to construct the North Façade
Alternate as provided in Section 2.1(6) and the funds that are held in
escrow for the North Façade
Alternate are used to call and satisfy a portion of the Bonds as provided in
Section 2.3(4) above, any excess
Incremental Property Tax Revenues that are not attributable to an
increase in valuation of the DJ Development or the applicable tax rate and
which would have otherwise been used to pay principal
and interest on the Bonds related to the North Façade Alternate shall be
placed in an interest earning escrow account by the City and along with any income earned thereon, used to
call or defease the Bonds. DJ shall have the right to select the Bonds that
will be called or defeased.

3. Section 2.4 is amended to read as follows:

2.4.                             Limitations on Financial Undertakings of City. Notwithstanding any other provisions of this
Agreement, City shall have no obligation to DJ under this Agreement to issue the Bonds or to fund the design
or construction of the Public Parking
Facility, if any of the following conditions exist as of August 31, 2007:

(1)                                 City
is unable to complete the sale of the Bonds on such terms and conditions as it
shall deem necessary or desirable in its sole discretion; or

(2)                                 City
is entitled (or, with the passage of time or giving of notice, or both, would
be entitled) under this Agreement to exercise any remedies set forth therein as
a result of any Event of Default;

(3)                                 DJ
fails to sign the Minimum Assessment Agreement and provide City with the
guaranty required by Section 1.4; or

(4)                                 There
has been, or there occurs, a material adverse change in the financial condition
of DJ, which change(s) make it substantially more likely, in the reasonable
judgment of City, that DJ will be unable to fulfill its covenants and
obligations under this Agreement.

4. Section 2.5 is amended to read as follows:

2.5.                              Use
of Tax Increments. DJ recognizes that City intends to utilize the
Incremental Property Tax Revenues collected each year in respect of the DJ

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Development
and the income generated on any reserve fund to pay debt service on the
Bonds. Notwithstanding the foregoing, except as provided in Section 2.3(7)
above, City shall be free to use any excess Incremental Property Tax Revenues not required for the satisfaction of the
principal and interest payments on
the Bonds collected each year in respect of the DJ Development (for example, those
revenues resulting from increases in valuation of the DJ Development or the
applicable tax rate) for any purpose for which the Incremental Property Tax Revenues may lawfully be used pursuant to the
provisions of the Urban Renewal Act, and City shall have no obligation to DJ
with respect to use thereof.

5. Section 3.1 is amended to read as follows:

3.1.                             Conditions
Precedent. If any of the following conditions has not occurred prior to August 31, 2007, either party may
terminate this Agreement upon written notice to the other party. DJ’s termination
of this Agreement shall be its sole remedy. DJ shall not be entitled to
reimbursement of any costs or damages incurred by DJ in connection with this
Agreement. In the event DJ elects to terminate this Agreement, DJ shall
reimburse City for all reasonable out-of-pocket
costs incurred by City in connection with this Agreement and DJ shall reimburse
City for all such costs within thirty days of receipt by DJ of City’s statement of such costs, including appropriate
documentation thereof.

(1)                                  City
shall have obtained all required design approvals from the Design Review
Committee for the Public Parking Facility and DJ shall have consented to such design, which consent shall not be unreasonably withheld.

(2)                                  DJ and the City shall have received all necessary
approvals from any governmental agency, utility, lender, security holder or
other party whose approval is
required for the undertakings and obligations under this Agreement,
specifically including, but not limited to approval of this Agreement by the Iowa Racing and Gaming
Commission and a firm commitment from the Purchaser regarding its purchase of
the Bonds on terms satisfactory to City and DJ.

(3)                                  City shall have received and DJ shall have
approved, bids pursuant to which it can be determined that the Public
Parking Facility can be designed and
constructed for an amount equal to or less than the sum of the amounts to be provided by DJ under Section
1.2 and financed by City under
Section 2.3. Additionally, all such costs of design and construction shall be supported by agreements with the
contractors and other vendors that
include a fixed price or have a guaranteed maximum price (GMP) that permits the Public Parking Facility to be
constructed within the budget provided for herein, taking into consideration a
10% contingency for the costs of construction of the Public Parking Facility.
The parties

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acknowledge
that such fixed price or GMP shall be subject to change modifications or orders approved by City, provided that any change
orders or modifications to such contracts that will result in the fixed
price or the GMP, together with all
previous change orders or modifications, exceeding 110% of the fixed
price or the GMP, shall require the written consent of both City and DJ.

(4)                                  City
and DJ shall have agreed upon the construction cost and timing of the construction of the Public Parking Facility.

(5)                                  DJ shall have signed the Minimum Assessment
Agreement and provided City with a guaranty in a form acceptable to City
for DJ’s obligation to pay real estate taxes
on the DJ Development.

(6)                                  Both
parties are obligated to pursue all required approvals as expeditiously as
possible and to negotiate in good faith to complete the execution of the
agreements identified and required as conditions precedent to the other obligations
set forth herein.

6. Section 3.2 is amended to read as follows:

3.2.                             Cooperation
bv the Parties. City and DJ agree to cooperate in good faith in connection
with the performance of all of the activities contemplated herein and to use all commercially reasonable efforts
and diligence to promptly respond and
perform the obligations provided for directly or indirectly by this Agreement. The
parties agree and understand that it is their intent that the timing of the
design and construction of the Public Parking Facility will be such that the completion and opening of the Public Parking
Facility will coincide with the completion and opening of the DJ
Development. The parties agree to use all reasonable
effort and resources to assure that construction of the Public Parking Facility commences on or before August 1, 2007
and that the sections of the Public Parking Facility shown on Exhibit A
attached hereto be completed and ready
for use on or before, the later of the opening of the DJ Development or the following:

North Section, lower three
levels: August 12,2008

North Section, fourth level:
November 11, 2008

South Section, all levels:
November 11, 2008

In
the event the sections of the Public Parking Facility are not substantially completed and ready for use on such dates, and
such delay is due to a breach by the
City of its obligations under this Agreement, the City shall pay to DJ an amount equal to $100 per day that each section of
the Public Parking Facility remains
incomplete and unopened by the foregoing dates as liquidated damages

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for its breach of this Agreement. Additionally, the
parties agree that the construction contract(s) shall include a liquidated
damages provision that provides for the
contractor to pay to DJ the amount of $1,000 for each day each section
of the Public Parking Facility remains unfinished after the later of the
opening of the DJ Development and the foregoing dates.

	
  CITY OF DUBUQUE, IOWA

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ ROY D. BUOL

  	
   

  	
   

  
	
   

  	
  Roy D. Buol,
  Mayor

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ JEANNE F.
  SCHNEIDER

  	
   

  	
   

  
	
   

  	
  Jeanne F.
  Schneider, City Clerk

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  DIAMOND
  JO, LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ JONATHAN
  SWAIN

  	
   

  	
   

  

 

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