Document:

EX-4.3

 

EXHIBIT 4.3

REGISTRATION RIGHTS AGREEMENT

          THIS REGISTRATION RIGHTS AGREEMENT is made and entered into as of December 21, 2005 by and
between OSI Pharmaceuticals, Inc., a Delaware corporation (“the Company”), and UBS Securities LLC
(the “Initial Purchaser”) in connection with the Purchase Agreement, dated December 15, 2005 (the
“Purchase Agreement”), between the Company and the Initial Purchaser. In order to induce the
Initial Purchaser to enter into the Purchase Agreement, the Company has agreed to provide the
registration rights set forth in this Agreement. The execution of this Agreement is a condition to
the closing under the Purchase Agreement.

          The Company agrees with the Initial Purchaser, for its benefit as Initial Purchaser and for
the benefit of the beneficial owners (including the Initial Purchaser) from time to time of the
Registrable Securities (as defined herein) (each of the foregoing a “Holder” and together the
“Holders”), as follows:

          Section 1. Definitions. Capitalized terms used herein without definition shall have
their respective meanings set forth in the Purchase Agreement. As used in this Agreement, the
following terms shall have the following meanings:

          “Affiliate” means, with respect to any specified person, an “affiliate,” as defined in
Rule 144, of such person.

          “Amendment Effectiveness Deadline Date” has the meaning specified in Section 2(d)
hereof.

          “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday that is not
a day on which banking institutions in The City of New York are authorized or obligated by law or
executive order to close.

          “Common Stock” means the shares of Common Stock, $0.01 par value, of the Company and
any other shares of common stock as may constitute “Common Stock” for purposes of the Indenture,
including the Underlying Common Stock.

          “Conversion Price” has the meaning assigned to that term in the Indenture.

          “Damages Accrual Period” has the meaning specified in Section 2(e) hereof.

          “Damages Payment Date” means each Interest Payment Date.

          “Deferral Notice” has the meaning specified in Section 3(i) hereof.

          “Deferral Period” has the meaning specified in Section 3(i) hereof.

 

 

          “Effectiveness Deadline Date” has the meaning specified in Section 2(a) hereof.

          “Effectiveness Period” means the period of two years from the Issue Date or such
shorter period that will terminate upon the earliest of the following: (A) when all Registrable
Securities covered by one or more Shelf Registration Statements have been sold pursuant to such
Shelf Registration Statement(s) and (B) when, in the written opinion of counsel to the Company, all
outstanding Registrable Securities held by persons which are not Affiliates of the Company may be
resold without registration under the Securities Act pursuant to Rule 144(k) under the Securities
Act or any successor provision thereto.

          “Event” has the meaning specified in Section 2(e) hereof.

          “Event Termination Date” has the meaning specified in Section 2(e) hereof.

          “Event Date” has the meaning specified in Section 2(e) hereof.

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

          “Filing Deadline Date” has the meaning specified in Section 2(a) hereof.

          “Holder” has the meaning specified in the second paragraph of this Agreement.

          “Indenture” means the Indenture dated as of the date hereof between the Company and
The Bank of New York, as trustee, pursuant to which the Securities are being issued.

          “Initial Purchaser” means UBS Securities LLC.

          “Initial Shelf Registration Statement” has the meaning specified in Section 2(a)
hereof. All references to “Initial Shelf Registration Statement” in this Agreement shall include
the Prospectus forming a part of the Initial Shelf Registration Statement, and any amendments or
supplements to such Initial Shelf Registration Statement, including post-effective amendments, all
exhibits, and all materials incorporated by reference or explicitly deemed to be incorporated by
reference in such Initial Shelf Registration Statement.

          “Interest Payment Date” shall have the meaning as set forth in the Indenture.

          “Issue Date” means December 21, 2005.

          “Liquidated Damages Amount” has the meaning specified in Section 2(e) hereof.

          “Material Event” has the meaning specified in Section 3(i) hereof.

          “Notice and Questionnaire” means a written notice delivered to the Company containing
substantially the information called for by the Selling Securityholder Notice and Questionnaire
attached as Annex A to the Offering Memorandum of the Company dated December 15, 2005 relating to
the Securities.

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          “Notice Holder” means, on any date, any Holder that has delivered a Notice and
Questionnaire to the Company on or prior to such date.

          “Principal Amount” means, with the respect to the Securities, the principal amount due
on the maturity date as shown on such Securities.

          “Prospectus” means the prospectus included in any Registration Statement (including,
without limitation, a prospectus that discloses information previously omitted from a prospectus
filed as part of an effective registration statement in reliance upon Rule 415 promulgated under
the Securities Act), as amended or supplemented by any amendment or prospectus supplement,
including post-effective amendments, and all materials incorporated by reference or explicitly
deemed to be incorporated by reference in such Prospectus.

          “Purchase Agreement” has the meaning specified in the first paragraph of this
Agreement.

          “Record Holder” means, with respect to any Damages Payment Date relating to any
Securities or Underlying Common Stock as to which any Liquidated Damages Amount has accrued, the
registered holder of such Securities or Underlying Common Stock, as the case may be, at the close
of business on the June 1 and December 1 immediately preceding the relevant Interest Payment Date.

          “Registrable Securities” means the Securities, until such Securities have been
converted or exchanged, and the Underlying Common Stock and any securities into or for which such
securities have been converted or exchanged, and any security issued with respect thereto upon any
stock dividend, split or similar event until, in the case of any such security, the earliest of (i)
its effective registration under the Securities Act and resale in accordance with the Registration
Statement covering it, (ii) expiration of the holding period that would be applicable thereto under
Rule 144(k) were it not held by an Affiliate of the Company or (iii) its sale to the public
pursuant to Rule 144.

          “Registration Expenses” has the meaning specified in Section 5 hereof.

          “Registration Statement” means any registration statement of the Company that covers
any of the Registrable Securities pursuant to the provisions of this Agreement, including the
Prospectus, amendments and supplements to such registration statement, including post-effective
amendments, all exhibits, and all materials incorporated by reference or explicitly deemed to be
incorporated by reference in such registration statement.

          “Restricted Securities” has the meaning assigned to that term in Rule 144.

          “Rule 144” means Rule 144 under the Securities Act, as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the SEC.

          “Rule 144A” means Rule 144A under the Securities Act, as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the SEC.

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          “SEC” means the U.S. Securities and Exchange Commission and any successor agency.

          “Securities” means the 2% Convertible Senior Subordinated Notes due 2025 of the
Company to be purchased pursuant to the Purchase Agreement.

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

          “Shelf Registration Statement” has the meaning specified in Section 2(a) hereof, and
which shall include the Initial Shelf Registration Statement and any Subsequent Shelf Registration
Statement. All references to “Shelf Registration Statement” in this Agreement shall include the
Prospectus forming a part of such Shelf Registration Statement, and any amendments or supplements
to such Shelf Registration Statement, including post-effective amendments, all exhibits, and all
materials incorporated by reference or explicitly deemed to be incorporated by reference in such
Shelf Registration Statement.

          “Subsequent Shelf Registration Statement” has the meaning specified in Section 2(b)
hereof. All references to “Subsequent Shelf Registration Statement” in this Agreement shall
include the Prospectus forming a part of such Subsequent Shelf Registration Statement, and any
amendments or supplements to such Subsequent Shelf Registration Statement, including post-effective
amendments, all exhibits, and all materials incorporated by reference or explicitly deemed to be
incorporated by reference in such Subsequent Shelf Registration Statement.

          “TIA” means the Trust Indenture Act of 1939, as amended.

          “Trustee” means The Bank of New York (or any successor entity), the Trustee under the
Indenture.

          “Underlying Common Stock means the Common Stock into which the Securities are
convertible or issued upon any such conversion.

          Section 2. Shelf Registration. (a) The Company shall prepare and file or cause to be
prepared and filed with the SEC, as soon as practicable but in any event by the date (the “Filing
Deadline Date”) that is ninety five (95) days after the Issue Date, a Registration Statement for an
offering to be made on a delayed or continuous basis pursuant to Rule 415 of the Securities Act (a
“Shelf Registration Statement”) registering the resale from time to time by Holders thereof of the
Registrable Securities (the “Initial Shelf Registration Statement”). The Initial Shelf
Registration Statement shall be on Form S-3 or another appropriate form permitting registration of
such Registrable Securities for resale by such Holders in accordance with the methods of
distribution elected by the Holders and set forth in the Initial Shelf Registration Statement. The
Company shall use reasonable best efforts to cause the Initial Shelf Registration Statement to be
declared effective under the Securities Act as promptly as is practicable but in any event by the
date (the “Effectiveness Deadline Date”) that is one hundred and eighty (180) days after the Issue
Date, and to keep the Initial Shelf Registration Statement (or any Subsequent Shelf Registration
Statement, if applicable) continuously effective under the Securities Act until the expiration of
the Effectiveness Period; provided, however, that no Holder shall be entitled to

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have the Registrable Securities held by it covered by such Shelf Registration Statement unless
such Holder shall have provided a Notice and Questionnaire in accordance with Section 2(d) and is
in compliance with Section 4. None of the Company’s security holders (other than the Holders of
Registrable Securities) shall have the right to include any of the Company’s securities in the
Shelf Registration Statement to be filed pursuant to this Section 2(a).

          (b) If the Initial Shelf Registration Statement or any Subsequent Shelf Registration Statement
ceases to be effective for any reason at any time during the Effectiveness Period (other than
because all Registrable Securities registered thereunder shall have been resold pursuant thereto or
shall have otherwise ceased to be Registrable Securities), the Company shall use all reasonable
efforts to obtain the prompt withdrawal of any order suspending the effectiveness thereof, and in
any event shall within thirty (30) days of such cessation of effectiveness amend the Shelf
Registration Statement in a manner reasonably expected to obtain the withdrawal of the order
suspending the effectiveness thereof, or file an additional Shelf Registration Statement covering
the Registrable Securities (a “Subsequent Shelf Registration Statement”). If a Subsequent
Shelf Registration Statement is filed, the Company shall use all reasonable efforts to cause the
Subsequent Shelf Registration Statement to become effective as promptly as is practicable after
such filing and to keep such Registration Statement (or any other Subsequent Shelf Registration
Statement) continuously effective until the end of the Effectiveness Period.

          (c) The Company shall supplement and amend any Shelf Registration Statement filed pursuant to
this Agreement if required by the rules, regulations or instructions applicable to the registration
form used by the Company for such Shelf Registration Statement, if required by the Securities Act
or, to the extent to which the Company does not reasonably object, as reasonably requested by the
Initial Purchaser or by the Trustee on behalf of the registered Holders, and shall file Subsequent
Shelf Registration Statements in order to enable Notice Holders to effect resale of their
Registrable Securities in accordance with the provisions hereof, if required by SEC rules and
regulations or pursuant to interpretations of the staff of the SEC.

          (d) Each Holder of Registrable Securities agrees that if such Holder wishes to sell
Registrable Securities pursuant to a Shelf Registration Statement and related Prospectus, it will
do so only in accordance with this Section 2(d) and Section 3(i). Each Holder of Registrable
Securities wishing to sell Registrable Securities pursuant to a Shelf Registration Statement and
related Prospectus agrees to deliver a Notice and Questionnaire to the Company at least three (3)
Business Days prior to any intended distribution of Registrable Securities under the Shelf
Registration Statement. From and after the date the Initial Shelf Registration Statement is
declared effective, the Company shall, as promptly as is practicable after the date a Notice and
Questionnaire is delivered, and in any event within five (5) Business Days after such date (or
within thirty (30) Business Days after such date in connection with the filing of an additional
Shelf Registration Statement pursuant to this Section, if required by SEC rules and regulations or
pursuant to interpretations of the staff of the SEC), (i) if required by applicable law, file with
the SEC a post-effective amendment to the Shelf Registration Statement or an additional Shelf
Registration Statement or prepare and, if required by applicable law, file a supplement to the
related Prospectus or a supplement or amendment to any document incorporated therein by reference
or file any other required document so that the Holder delivering such Notice and Questionnaire is
named as a selling security holder in a Shelf Registration Statement in such a

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manner as to permit such Holder to deliver such Prospectus to purchasers of the Registrable
Securities in accordance with applicable law and, if the Company shall file an additional Shelf
Registration Statement or a post-effective amendment to the Shelf Registration Statement, use all
reasonable efforts to cause such additional Shelf Registration Statement or post-effective
amendment to be declared effective under the Securities Act as promptly as is practicable, but in
any event by the date (the “Amendment Effectiveness Deadline Date”) that is thirty (30)
days after the date such additional Shelf Registration Statement or post-effective amendment is
required by this clause to be filed; (ii) provide such Holder copies of any documents filed
pursuant to Section 2(d)(i); and (iii) notify such Holder as promptly as practicable after the
effectiveness under the Securities Act of any additional Shelf Registration Statement and
post-effective amendment filed pursuant to Section 2(d)(i); provided that if such Notice
and Questionnaire is delivered during a Deferral Period, the Company shall so inform the Holder
delivering such Notice and Questionnaire and shall take the actions set forth in clauses (i), (ii)
and (iii) above upon expiration of the Deferral Period in accordance with Section 3(i),
provided, further, that if under applicable law the Company has more than one
option as to the type or manner of making any such filing, it will make the required filing or
filings in the manner or of a type that is reasonably expected to result in the earliest
availability of the Prospectus for effecting resales of Registrable Securities. Notwithstanding
anything contained herein to the contrary, the Company shall be under no obligation to name any
Holder that is not a Notice Holder as a selling security holder in any Registration Statement or
related Prospectus; provided, however, that any Holder that becomes a Notice Holder pursuant to the
provisions of Section 2(d) of this Agreement (whether or not such Holder was a Notice Holder at the
time the Registration Statement was declared effective) shall be named as a selling security holder
in the Registration Statement or related Prospectus in accordance with the requirements of this
Section 2(d).

          (e) The parties hereto agree that the Holders of Registrable Securities will suffer damages,
and that it would not be feasible to ascertain the extent of such damages with precision, if (i)
the Initial Shelf Registration Statement has not been filed on or prior to the Filing Deadline
Date, (ii) the Initial Shelf Registration Statement has not been declared effective under the
Securities Act on or prior to the Effectiveness Deadline Date, (iii) the Company has failed to
perform its obligations set forth in Section 2(d) hereof within the time period required therein,
(iv) the aggregate duration of Deferral Periods in any period exceeds the number of days permitted
in respect of such period pursuant to Section 3(i) hereof or (v) the number of Deferral Periods in
any period exceeds the number permitted in respect of such period pursuant to Section 3(i) (each of
the events of a type described in any of the foregoing clauses (i) through (v) are individually
referred to herein as an “Event,” and the Filing Deadline Date in the case of clause (i),
the Effectiveness Deadline Date in the case of clause (ii), the date by which the Company is
required to perform its obligations set forth in Section 2(d) in the case of clause (iii)
(including the filing of any post-effective amendment prior to the Amendment Effectiveness Deadline
Date), the date on which the aggregate duration of Deferral Periods in any period exceeds the
number of days permitted by Section 3(i) hereof in the case of clause (iv), and the date of the
commencement of a Deferral Period that causes the limit on the number of Deferral Periods in any
period under Section 3(i) hereof to be exceeded in the case of clause (v), being referred to
herein as an “Event Date”). Events shall be deemed to continue until the “Event Termination Date,”
which shall be the following dates with respect to the respective types of Events: the date the
Initial Shelf Registration Statement is filed in the case of an Event of the type described in

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clause (i), the date the Initial Shelf Registration Statement is declared effective under the
Securities Act in the case of an Event of the type described in clause (ii), the date the Company
performs its obligations set forth in Section 2(d) in the case of an Event of the type described in
clause (iii) (including, without limitation, the date the additional Shelf Registration Statement
or relevant post-effective amendment to the Shelf Registration Statement is declared effective
under the Securities Act), termination of the Deferral Period that caused the limit on the
aggregate duration of Deferral Periods in a period set forth in Section 3(i) to be exceeded in the
case of the commencement of an Event of the type described in clause (iv), and termination of the
Deferral Period the commencement of which caused the number of Deferral Periods in a period
permitted by Section 3(i) to be exceeded in the case of an Event of the type described in clause
(v).

          Accordingly, commencing on (and including) any Event Date and ending on (but excluding) the
next date on which there are no Events that have occurred and are continuing (a “Damages Accrual
Period”), the Company agrees to pay, as liquidated damages and not as a penalty, an amount (the
“Liquidated Damages Amount”), payable on the Damages Payment Dates to Record Holders, accruing for
each portion of such Damages Accrual Period beginning on and including a Damages Payment Date (or,
in respect of the first time that the Liquidation Damages Amount is to be paid to Holders on a
Damages Payment Date as a result of the occurrence of any particular Event, from the Event Date)
and ending on but excluding the first to occur of (A) the date of the end of the Damages Accrual
Period or (B) the Next Damages Payment Date, at a rate per annum equal to one-quarter of one
percent (0.25%) for the first 90-day period from the Event Date, and thereafter at a rate per annum
equal to one-half of one percent (0.5%), of the aggregate Principal Amount of such Securities or,
if the Holder has converted such Securities into Underlying Common Stock and such shares of Common
Stock then constitute Registrable Securities, the Conversion Price of such Securities in effect at
the time of such conversion, in each case, determined as of the Business Day immediately preceding
the next Damages Payment Date; provided, that any Liquidated Damages Amount accrued with respect to
any Securities or portion thereof called for redemption on a redemption date or converted into
Underlying Common Stock on a conversion date prior to the Damages Payment Date, shall, in any such
event, be paid instead to the Holder who submitted such Securities or portion thereof for
redemption or conversion on the applicable redemption date or conversion date, as the case may be,
on such date (or promptly following the conversion date, in the case of conversion).
Notwithstanding the foregoing, no Liquidated Damages Amounts shall accrue as to any Registrable
Security from and after the earlier of (x) the date such security is no longer a Registrable
Security and (y) expiration of the Effectiveness Period. The rate of accrual of the Liquidated
Damages Amount per year shall not exceed the 0.5% notwithstanding the occurrence of multiple
concurrent Events. Following the cure of all Events requiring the payment by the Company of
Liquidated Damages Amounts to the Holders of Registrable Securities pursuant to this Section, the
accrual of Liquidated Damages Amounts will cease (without in any way limiting the effect of any
subsequent Event requiring the payment of Liquidated Damages Amount by the Company).

          The Trustee shall be entitled, on behalf of Holders of Securities or Underlying Common Stock,
to seek any available remedy for the enforcement of this Agreement, including for the payment of
any Liquidated Damages Amount. Nothing shall preclude a Notice Holder or Holder of Registrable
Securities from pursuing or obtaining specific performance or other equitable relief with respect
to this Agreement.

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          All of the Company’s obligations set forth in this Section 2(e) that are outstanding with
respect to any Registrable Security at the time such security ceases to be a Registrable Security
shall survive until such time as all such obligations with respect to such security have been
satisfied in full (notwithstanding termination of this Agreement pursuant to Section 8(k)).

          The parties hereto agree that the liquidated damages provided for in this Section 2(e)
constitute a reasonable estimate of the damages that may be incurred by Holders of Registrable
Securities by reason of the failure of the Shelf Registration Statement to be filed or declared
effective or available for effecting resales of Registrable Securities in accordance with the
provisions hereof.

          Section 3. Registration Procedures. In connection with the registration obligations
of the Company under Section 2 hereof, the Company shall:

     (a) Before filing any Registration Statement or Prospectus or any amendments or
supplements thereto with the SEC, furnish to the Initial Purchaser copies of all such
documents proposed to be filed and use reasonable efforts to reflect in each such document
when so filed with the SEC such comments as the Initial Purchaser reasonably shall propose
within three (3) Business Days of the delivery of such copies to the Initial Purchaser.

     (b) Prepare and file with the SEC such amendments and post-effective amendments to each
Registration Statement as may be necessary to keep such Registration Statement continuously
effective for the applicable period specified in Section 2(a); cause the related Prospectus
to be supplemented by any required Prospectus supplement, and as so supplemented to be filed
pursuant to Rule 424 (or any similar provisions then in force) under the Securities Act; and
use all reasonable efforts to comply with the provisions of the Securities Act applicable to
it with respect to the disposition of all securities covered by such Registration Statement
during the Effectiveness Period in accordance with the intended methods of disposition by
the sellers thereof set forth in such Registration Statement as so amended or such
Prospectus as so supplemented.

     (c) As promptly as practicable give notice to the Notice Holders and the Initial
Purchaser (i) when any Prospectus, Prospectus supplement, Registration Statement or
post-effective amendment to a Registration Statement has been filed with the SEC and, with
respect to a Registration Statement or any post-effective amendment, when the same has been
declared effective, (ii) of any request, following the effectiveness of the Initial Shelf
Registration Statement under the Securities Act, by the SEC or any other federal or state
governmental authority for amendments or supplements to any Registration Statement or
related Prospectus or for additional information, (iii) of the issuance by the SEC or any
other federal or state governmental authority of any stop order suspending the effectiveness
of any Registration Statement or the initiation or threatening of any proceedings for that
purpose, (iv) of the receipt by the Company of any notification with respect to the
suspension of the qualification or exemption from qualification of any of the Registrable
Securities for sale in any jurisdiction or the initiation or threatening of any proceeding
for such purpose, (v) of the occurrence of (but not the nature of or details

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concerning) a Material Event (provided, however, that no notice by the Company shall be
required pursuant to this clause (v) in the event that the Company either promptly files a
Prospectus supplement to update the Prospectus or a Form 8-K or other appropriate Exchange
Act report that is incorporated by reference into the Registration Statement, which, in
either case, contains the requisite information with respect to such Material Event that
results in such Registration Statement no longer containing any untrue statement of material
fact or omitting to state a material fact necessary to make the statements contained therein
not misleading) and (vi) of the determination by the Company that a post-effective amendment
to a Registration Statement will be filed with the SEC, which notice may, at the discretion
of the Company (or as required pursuant to Section 3(i)), state that it constitutes a
Deferral Notice, in which event the provisions of Section 3(i) shall apply.

     (d) Use all reasonable efforts to obtain the withdrawal of any order suspending the
effectiveness of a Registration Statement or the lifting of any suspension of the
qualification (or exemption from qualification) of any of the Registrable Securities for
sale in any jurisdiction in which they have been qualified for sale, in either case at the
earliest possible moment.

     (e) If reasonably requested by the Initial Purchaser or any Notice Holder, promptly as
reasonably practicable incorporate in a Prospectus supplement or post-effective amendment to
a Registration Statement such information as the Initial Purchaser or such Notice Holder
shall, on the basis of an opinion of nationally-recognized counsel experienced in such
matters, determine to be required to be included therein by applicable law and make any
required filings of such Prospectus supplement or such post-effective amendment; provided,
that the Company shall not be required to take any actions under this Section 3(e) that are
not, in the reasonable opinion of counsel for the Company, in compliance with applicable
law.

     (f) As promptly as practicable furnish to each Notice Holder and the Initial Purchaser,
upon their request and without charge, at least one (1) conformed copy of the Registration
Statement and any amendment thereto, including financial statements but excluding schedules,
all documents incorporated or deemed to be incorporated therein by reference and all
exhibits (unless requested in writing to the Company by such Notice Holder or the Initial
Purchaser, as the case may be).

     (g) During the Effectiveness Period, deliver to each Notice Holder in connection with
any sale of Registrable Securities pursuant to a Registration Statement, without charge, as
many copies of the Prospectus or Prospectuses relating to such Registrable Securities
(including each preliminary prospectus) and any amendment or supplement thereto as such
Notice Holder may reasonably request; and the Company hereby consents (except during such
periods that a Deferral Notice is outstanding and has not been revoked) to the use of such
Prospectus or each amendment or supplement thereto by each Notice Holder in connection with
any offering and sale of the Registrable Securities covered by such Prospectus or any
amendment or supplement thereto in the manner set forth therein.

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     (h) Prior to any public offering of the Registrable Securities pursuant to the Shelf
Registration Statement, use all reasonable efforts to register or qualify or cooperate with
the Notice Holders in connection with the registration or qualification (or exemption from
such registration or qualification) of such Registrable Securities for offer and sale under
the securities or Blue Sky laws of such jurisdictions within the United States as any Notice
Holder reasonably requests in writing (which request may be included in the Notice and
Questionnaire); prior to any public offering of the Registrable Securities pursuant to the
Shelf Registration Statement, use all reasonable efforts to keep each such registration or
qualification (or exemption therefrom) effective during the Effectiveness Period in
connection with such Notice Holder’s offer and sale of Registrable Securities pursuant to
such registration or qualification (or exemption therefrom) and do any and all other acts or
things necessary or advisable to enable the disposition in such jurisdictions of such
Registrable Securities in the manner set forth in the relevant Registration Statement and
the related Prospectus; provided, that the Company will not be required to (i) qualify as a
foreign corporation or as a dealer in securities in any jurisdiction where it would not
otherwise be required to qualify but for this Agreement or (ii) take any action that would
subject it to general service of process in suits or to taxation in any such jurisdiction
where it is not then so subject.

     (i) Upon (A) the issuance by the SEC of a stop order suspending the effectiveness of
the Shelf Registration Statement or the initiation of proceedings with respect to the Shelf
Registration Statement under Section 8(d) or 8(e) of the Securities Act, (B) the occurrence
of any event or the existence of any fact (a “Material Event”) as a result of which any
Registration Statement shall contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary to make the statements
therein not misleading, or any Prospectus shall contain any untrue statement of a material
fact or omit to state any material fact required to be stated therein or necessary to make
the statements therein, in the light of the circumstances under which they were made, not
misleading, or (C) the occurrence or existence of any pending corporate development that, in
the discretion of the Company, makes it appropriate to suspend the availability of the Shelf
Registration Statement and the related Prospectus, (i) in the case of clause (B) above,
subject to the next sentence, as promptly as practicable prepare and file a post-effective
amendment to such Registration Statement or a supplement to the related Prospectus or any
document incorporated therein by reference or file any other required document that would be
incorporated by reference into such Registration Statement and Prospectus so that such
Registration Statement does not contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary to make the statements
therein not misleading, and such Prospectus does not contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein or necessary
to make the statements therein, in the light of the circumstances under which they were
made, not misleading, as thereafter delivered to the purchasers of the Registrable
Securities being sold thereunder, and, in the case of a post-effective amendment to a
Registration Statement, subject to the next sentence, use all reasonable efforts to cause it
to be declared effective as promptly as is reasonably practicable, and (ii) give notice to
the Notice Holders that the availability of the Shelf Registration Statement is suspended (a
“Deferral Notice”) and, upon receipt of any Deferral Notice, each Notice Holder agrees not
to sell any Registrable Securities

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pursuant to the Registration Statement until such Notice Holder’s receipt of copies of
the supplemented or amended Prospectus provided for in clause (i) above, or until it is
advised in writing by the Company that the Prospectus may be used, and has received copies
of any additional or supplemental filings that are incorporated or deemed incorporated by
reference in such Prospectus. The Company will use all reasonable efforts to ensure that
the use of the Prospectus may be resumed (x) in the case of clause (A) above, as promptly as
is practicable, (y) in the case of clause (B) above, as soon as, in the sole judgment of the
Company, public disclosure of such Material Event would not be prejudicial to or contrary to
the interests of the Company or, if necessary to avoid unreasonable burden or expense, as
soon as reasonably practicable thereafter and (z) in the case of clause (C) above, as soon
as, in the discretion of the Company, such suspension is no longer appropriate. The period
during which the availability of the Registration Statement and any Prospectus is suspended
(the “Deferral Period”) shall, without the Company incurring any obligation to pay
liquidated damages pursuant to Section 2(e), not exceed thirty (30) days in any three (3)
month period or ninety (90) days in any twelve (12) month period.

     (j) If reasonably requested in writing in connection with a disposition of Registrable
Securities pursuant to a Registration Statement, make reasonably available for inspection
during normal business hours by a representative for the Notice Holders of such Registrable
Securities and any broker-dealers, attorneys and accountants retained by such Notice
Holders, all relevant financial and other records, pertinent corporate documents and
properties of the Company and its subsidiaries, and cause the appropriate executive
officers, directors and designated employees of the Company and its subsidiaries to make
reasonably available for inspection during normal business hours all relevant information
reasonably requested by such representative for the Notice Holders or any such
broker-dealers, attorneys or accountants in connection with such disposition, in each case
as is customary for similar “due diligence” examinations; provided, however, that such
persons shall first agree in writing with the Company that any information that is
reasonably and in good faith designated by the Company in writing as confidential at the
time of delivery of such information shall be kept confidential by such persons and shall be
used solely for the purposes of exercising rights under this Agreement, unless (i)
disclosure of such information is required by court or administrative order or is necessary
to respond to inquiries of regulatory authorities, (ii) disclosure of such information is
required by law (including any disclosure requirements pursuant to federal securities laws
in connection with the filing of any Registration Statement or the use of any Prospectus
referred to in this Agreement), (iii) such information becomes generally available to the
public other than as a result of a disclosure or failure to safeguard by any such person or
(iv) such information becomes available to any such person from a source other than the
Company and such source is not bound by a confidentiality agreement; and provided
further, that the foregoing inspection and information gathering shall, to the greatest
extent possible, be coordinated on behalf of all the Notice Holders and the other parties
entitled thereto by the counsel referred to in Section 5.

     (k) Comply with all applicable rules and regulations of the SEC and make generally
available to its securityholders earning statements (which need not be audited)

11

 

satisfying the provisions of Section 11(a) of the Securities Act and Rule 158
thereunder (or any similar rule promulgated under the Securities Act) no later than 45 days
after the end of any 12-month period (or 90 days after the end of any 12-month period if
such period is a fiscal year), or such shorter period as required by the Securities Act and
the Exchange Act and the rules and regulations thereunder, as in effect at any relevant
time, commencing on the first day of the first fiscal quarter of the Company commencing
after the effective date of a Registration Statement, which statements shall cover said
12-month periods.

     (l) Cooperate with each Notice Holder to facilitate the timely preparation and delivery
of certificates representing Registrable Securities sold pursuant to a Registration
Statement, and cause such Registrable Securities to be in such denominations as are
permitted by the Indenture and registered in such names as such Notice Holder may request in
writing at least two Business Days prior to any sale of such Registrable Securities.

     (m) Provide a CUSIP number for all Registrable Securities covered by each Registration
Statement not later than the effective date of such Registration Statement and provide the
Trustee for the Securities and the transfer agent for the Common Stock with printed
certificates for the Registrable Securities that are in a form eligible for deposit with The
Depository Trust Company.

     (n) Make a reasonable effort to provide such information as is required for any filings
required to be made with the National Association of Securities Dealers, Inc.

     (o) Upon (i) the filing of the Initial Shelf Registration Statement and (ii) the
effectiveness of the Initial Shelf Registration Statement, announce the same, in each case
by release to Reuters Economic Services and Bloomberg Business News.

     (p) Enter into such customary agreements and take all such other reasonable necessary
actions in connection therewith (including those reasonably requested by the holders of a
majority of the Registrable Securities being sold) in order to expedite or facilitate
disposition of such Registrable Securities.

     (q) Cause the Indenture to be qualified under the TIA not later than the effective date
of any Registration Statement; and in connection therewith, cooperate with the Trustee to
effect such changes to the Indenture as may be required for the Indenture to be so qualified
in accordance with the terms of the TIA and execute, and use all reasonable efforts to cause
the Trustee to execute, all documents as may be required to effect such changes, and all
other forms and documents required to be filed with the SEC to enable the Indenture to be so
qualified in a timely manner.

          Section 4. Holder’s Obligations. Each Holder agrees, by acquisition of the
Registrable Securities, that no Holder of Registrable Securities shall be entitled to sell any of
such Registrable Securities pursuant to a Registration Statement or to receive a Prospectus
relating thereto, unless such Holder has furnished the Company with a Notice and Questionnaire as
required pursuant to Section 2(d) hereof (including the information required to be included in

12

 

such Notice and Questionnaire)
and the information set forth in the next sentence. Each Notice Holder agrees promptly to furnish
to the Company all information required to be disclosed in order to make the information previously
furnished to the Company by such Notice Holder not misleading and any other information regarding
such Notice Holder and the distribution of such Registrable Securities as may be required to be
disclosed in the Registration Statement under applicable law.

          Section 5. Registration Expenses. The Company shall bear all fees and expenses
incurred in connection with the performance by the Company of its obligations under Sections 2 and
3 of this Agreement whether or not any of the Registration Statements are declared effective. Such
fees and expenses shall include, without limitation, (i) all registration and filing fees
(including, without limitation, fees and expenses (x) with respect to filings required to be made
with the National Association of Securities Dealers, Inc. and (y) of compliance with federal and
state securities or Blue Sky laws (including, without limitation, reasonable fees and disbursements
of the counsel specified in the next sentence in connection with Blue Sky qualifications of the
Registrable Securities under the laws of such jurisdictions as the Notice Holders of a majority of
the Registrable Securities being sold pursuant to a Registration Statement may designate), (ii)
printing expenses (including, without limitation, expenses of printing certificates for Registrable
Securities in a form eligible for deposit with The Depository Trust Company), (iii) duplication
expenses relating to copies of any Registration Statement or Prospectus delivered to any Holders
hereunder, (iv) fees and disbursements of counsel for the Company in connection with the Shelf
Registration Statement, and (v) reasonable fees and disbursements of the Trustee and its counsel
and of the registrar and transfer agent for the Common Stock. In addition, the Company shall bear
or reimburse the Notice Holders for the reasonable fees and disbursements of one firm of legal
counsel for the Holders, which shall initially be Shearman & Sterling LLP, but which may, upon the
written consent of the Initial Purchaser (which shall not be unreasonably withheld), be another
nationally recognized law firm experienced in securities law matters designated by the Company. In
addition, the Company shall pay the internal expenses of the Company (including, without
limitation, all salaries and expenses of officers and employees performing legal or accounting
duties), the expense of any annual audit, the fees and expenses incurred in connection with the
listing of the Registrable Securities on any securities exchange on which similar securities of the
Company are then listed and the fees and expenses of any person, including special experts,
retained by the Company.

          Section 6. Indemnification; Contribution. (a) The Company agrees to indemnify and
hold harmless the Initial Purchaser and each holder of Registrable Securities and each person, if
any, who controls the Initial Purchaser or any holder of Registrable Securities within the meaning
of either Section 15 of the Securities Act or Section 20 of the Exchange Act, as follows:

     (i) against any and all loss, liability, claim, damage and expense whatsoever, as
incurred, arising out of any untrue statement or alleged untrue statement of a material fact
contained in the Registration Statement (or any amendment thereto), or the omission or
alleged omission therefrom of a material fact necessary in order to make the statements
therein, in light of the circumstances under which they were made, not misleading or
arising out of any untrue statement or alleged untrue statement of a material fact included
in any preliminary prospectus or the Prospectus (or any amendment or supplement

13

 

thereto), or
the omission or alleged omission therefrom of a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not
misleading;

     (ii) against any and all loss, liability, claim, damage and expense whatsoever, as
incurred, to the extent of the aggregate amount paid in settlement of any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or threatened, or
of any claim whatsoever based upon any such untrue statement or omission, or any such
alleged untrue statement or omission, provided that (subject to Section 6(d) below) any such
settlement is effected with the prior written consent of the Company; and

     (iii) against any and all expense whatsoever, as incurred (including the fees and
disbursements of counsel), reasonably incurred in investigating, preparing or defending
against any litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever based upon any such untrue statement
or omission, or any such alleged untrue statement or omission, to the extent that any such
expense is not paid under (i) or (ii) above;

provided, however, that this indemnity shall not apply to any loss, liability,
claim, damage or expense to the extent arising out of any untrue statement or omission or alleged
untrue statement or omission made in reliance upon and in conformity with information furnished to
the Company by the Initial Purchaser or such holder of Registrable Securities (which also
acknowledges the indemnity provisions herein) and each person, if any, who controls the Initial
Purchaser or any such holder of Registrable Securities expressly for use in the Registration
Statement (or any amendment thereto), or any preliminary prospectus or the Prospectus (or any
amendment or supplement thereto).

          (b) In connection with any Shelf Registration in which a holder, including, without
limitation, the Initial Purchaser, of Registrable Securities is participating, in furnishing
information relating to such holder of Registrable Securities to the Company expressly for use in
such Registration Statement, any preliminary prospectus, the Prospectus or any amendments or
supplements thereto, the holders of such Registrable Securities agree, severally and not jointly,
to indemnify and hold harmless the Initial Purchaser and each person, if any, who controls the
Initial Purchaser within the meaning of either Section 15 of the Securities Act or Section 20 of
the Exchange Act and the Company, and each person, if any, who controls the Company within the
meaning of either such Section, against any and all loss, liability, claim, damage and expense
described in the indemnity contained in subsection (a) of this Section, as incurred, but only with
respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the
Registration Statement (or any amendment thereto), or any preliminary prospectus or the Prospectus
(or any amendment or supplement thereto) in reliance upon and in conformity with written
information furnished to the Company by such holder of Registrable Securities (which also
acknowledges the indemnity provisions herein) and each person, if any, who controls any such holder
of Registrable Securities expressly for use in the Registration Statement (or any
amendment thereto) or such preliminary prospectus or the Prospectus (or any amendment or
supplement thereto).

14

 

          The Initial Purchaser agrees to indemnify and hold harmless the Company, the holders of
Registrable Securities, and each person, if any, who controls the Company or any holder of
Registrable Securities within the meaning of either Section 15 of the Securities Act or Section 20
of the Exchange Act against any and all loss, liability, claim, damage and expense described in the
indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue
statements or omissions, or alleged untrue statements or omissions, made in the Registration
Statement (or any amendment thereto), or any preliminary prospectus or the Prospectus (or any
amendment or supplement thereto) in reliance upon and in conformity with information furnished to
the Company by the Initial Purchaser expressly for use in the Registration Statement (or any
amendment thereto) or such preliminary prospectus or the Prospectus (or any amendment or supplement
thereto).

          (c) Each indemnified party shall give notice as promptly as reasonably practicable to each
indemnifying party of any action commenced against it in respect of which indemnity may be sought
hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party
from any liability hereunder to the extent it is not materially prejudiced as a result thereof and
in any event shall not relieve it from any liability which it may have otherwise than on account of
this indemnity agreement. An indemnifying party may participate at its own expense in the defense
of any such action; provided, however, that counsel to the indemnifying party shall
not (except with the consent of the indemnified party) also be counsel to the indemnified party.
In no event shall the indemnifying parties be liable for fees and expenses of more than one counsel
(in addition to any local counsel) separate from their own counsel for all indemnified parties in
connection with any one action or separate but similar or related actions in the same jurisdiction
arising out of the same general allegations or circumstances. No indemnifying party shall, without
the prior written consent of the indemnified parties, settle or compromise or consent to the entry
of any judgment with respect to any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which
indemnification or contribution could be sought under this Section 6 hereof (whether or not the
indemnified parties are actual or potential parties thereto), unless such settlement, compromise or
consent (i) includes an unconditional release of each indemnified party from all liability arising
out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as
to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified
party.

          (d) If at any time an indemnified party shall have requested an indemnifying party to
reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees
that it shall be liable for any settlement of the nature contemplated by Section 6(a)(ii) effected
without its written consent if (i) such settlement is entered into more than 45 days after receipt
by such indemnifying party of aforesaid request, (ii) such indemnifying party shall have received
notice of the terms of such settlement at least 30 days prior to such settlement being entered into
and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance
with such request for fees and expenses prior to the date of such settlement.

          (e) If the indemnification provided for in this Section 6 is for any reason unavailable to or
insufficient to hold harmless an indemnified party in respect of any losses, liabilities, claims,
damages or expenses referred to therein, then each indemnifying party shall contribute to the
aggregate amount of such losses, liabilities, claims, damages and expenses

15

 

incurred by such
indemnified party, as incurred, in such proportion as is appropriate to reflect the relative fault
of the indemnifying party or parties on the one hand and of the indemnified party on the other hand
in connection with the statements or omissions which resulted in such losses, liabilities, claims,
damages or expenses, as well as any other relevant equitable considerations.

          The relative fault of the Company on the one hand and the holders of the Registrable
Securities or the Initial Purchaser on the other hand shall be determined by reference to, among
other things, whether any such untrue or alleged untrue statement of a material fact or omission or
alleged omission to state a material fact relates to information supplied by the Company or by the
holder of the Registrable Securities or the Initial Purchaser and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or omission.

          The parties hereto agree that it would not be just and equitable if contribution pursuant to
this Section 6(e) were determined by pro rata allocation or by any other method of allocation which
does not take account of the equitable considerations referred to above in this Section 6(e). The
aggregate amount of losses, liabilities, claims, damages, and expenses incurred by an indemnified
party and referred to above in this Section 6(e) shall be deemed to include any legal or other
expenses reasonably incurred by such indemnified party in investigating, preparing or defending
against any litigation, or any investigation or proceeding by any governmental agency or body,
commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue
statement or omission or alleged omission.

          Notwithstanding the provisions of this Section 6, neither the holder of any Registrable
Securities nor the Initial Purchaser, shall be required to indemnify or contribute any amount in
excess of the amount by which the total price at which the Registrable Securities sold by such
holder of Registrable Securities or unwritten by the Initial Purchaser, as the case may be, and
distributed to the public were offered to the public exceeds the amount of any damages that such
holder of Registrable Securities or the Initial Purchaser have otherwise been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged omission.

          No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation.

          For purposes of this Section 6(e), each person, if any, who controls the Initial Purchaser or
any holder of Registrable Securities within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act shall have the same rights to contribution as the Initial Purchaser
or such holder, and each person, if any, who controls the Company within the meaning of Section 15
of the Securities Act or Section 20 of the Exchange Act shall have the same rights to contribution
as the Company.

          Section 7.  Information Requirements. The Company covenants that, if at any time before the end of the Effectiveness Period the
Company is not subject to the reporting requirements of the Exchange Act, it will cooperate with
any Holder of Registrable Securities and take such further reasonable action as any Holder of
Registrable Securities may reasonably request in writing (including, without limitation, making
such reasonable representations as any

16

 

such Holder may reasonably request), all to the extent
required from time to time to enable such Holder to sell Registrable Securities without
registration under the Securities Act within the limitation of the exemptions provided by Rule 144
and Rule 144A under the Securities Act and customarily taken in connection with sales pursuant to
such exemptions. Upon the written request of any Holder of Registrable Securities, the Company
shall deliver to such Holder a written statement as to whether it has complied with such filing
requirements, unless such a statement has been included in the Company’s most recent report
required to be filed and filed pursuant to Section 13 or Section 15(d) of Exchange Act.
Notwithstanding the foregoing, nothing in this Section 7 shall be deemed to require the Company to
register any of its securities (other than Common Stock) under any section of the Exchange Act.

          Section 8.  Miscellaneous. (a) No Conflicting Agreements. The Company is not, as
of the date hereof, a party to, nor shall it, on or after the date of this Agreement, enter into,
any agreement with respect to its securities that conflicts with the rights granted to the Holders
of Registrable Securities in this Agreement. The Company represents and warrants that the rights
granted to the Holders of Registrable Securities hereunder do not in any way conflict with the
rights granted to the holders of the Company’s securities under any other agreements.

          (b) Amendments and Waivers. The provisions of this Agreement, including the
provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents
to departures from the provisions hereof may not be given, unless the Company has obtained the
written consent of Holders of a majority of the then outstanding Underlying Common Stock
constituting Registrable Securities (with Holders of Securities deemed to be the Holders, for
purposes of this Section, of the number of outstanding shares of Underlying Common Stock into which
such Securities are or would be convertible or exchangeable as of the date on which such consent is
requested). Notwithstanding the foregoing, a waiver or consent to depart from the provisions
hereof with respect to a matter that relates exclusively to the rights of Holders of Registrable
Securities whose securities are being sold pursuant to a Registration Statement and that does not
directly or indirectly affect the rights of other Holders of Registrable Securities may be given by
Holders of at least a majority of the Registrable Securities being sold by such Holders pursuant to
such Registration Statement; provided, that the provisions of this sentence may not be amended,
modified, or supplemented except in accordance with the provisions of the immediately preceding
sentence. Each Holder of Registrable Securities outstanding at the time of any such amendment,
modification, supplement, waiver or consent or thereafter shall be bound by any such amendment,
modification, supplement, waiver or consent effected pursuant to this Section 8(b), whether or not
any notice, writing or marking indicating such amendment, modification, supplement, waiver or
consent appears on the Registrable Securities or is delivered to such Holder.

          (c) Notices. All notices and other communications provided for or permitted hereunder
shall be made in writing by hand delivery, by telecopier, by courier guaranteeing overnight
delivery or by first-class mail, return receipt requested, and shall be deemed given (i) when made,
if made by hand delivery, (ii) upon confirmation, if made by telecopier, (iii) one (1) Business Day
after being deposited with such courier, if made by overnight courier or (iv) on the date indicated
on the notice of receipt, if made by first-class mail, to the parties as follows:

17

 

     (w) if to a Holder of Registrable Securities that is not a Notice Holder, at the
address for such Holder then appearing in the Registrar (as defined in the Indenture);

     (x) if to a Notice Holder, at the most current address given by such Holder to the
Company in a Notice and Questionnaire or any amendment thereto;

     (y) if to the Company, to:

OSI Pharmaceuticals, Inc.

58 South Service Road, Suite 110

Melville, NY 11747

Attention: Barbara Wood, General Counsel

Telephone No.: (631) 962-2000

Telecopy No.: (631) 752-3880

and

     (z) if to the Initial Purchaser, to:

UBS Securities LLC

299 Park Avenue

New York, NY 10171

Attention: Chris Hite

with a copy to:

UBS Securities LLC

Legal Dept – Investment Banking Group

299 Park Avenue

New York, NY 10171

Telecopy No.: (212) 821-4042

     or to such other address as such person may have furnished to the other persons
identified in this Section 8(c) in writing in accordance herewith.

          (d) Approval of Holders. Whenever the consent or approval of Holders of a specified
percentage of Registrable Securities is required hereunder, the Registrable Securities held by the
Company or its Affiliates (other than the Initial Purchaser or subsequent Holders of
Registrable Securities if such subsequent Holders are deemed to be such Affiliates solely by
reason of their holdings of such Registrable Securities) shall not be counted in determining
whether such consent or approval was given by the Holders of such required percentage.

          (e) Successors and Assigns. Any person who purchases any Registrable Securities from
the Initial Purchaser shall be deemed, for purposes of this Agreement, to be an assignee of the
Initial Purchaser. This Agreement shall inure to the benefit of and be binding

18

 

upon the successors
and assigns of each of the parties and shall inure to the benefit of and be binding upon each
Holder of any Registrable Securities.

          (f) Counterparts. This Agreement may be executed in any number of counterparts and by
the parties hereto in separate counterparts, each of which when so executed shall be deemed to be
original and all of which taken together shall constitute one and the same agreement.

          (g) Headings. The headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning hereof.

          (h) Governing Law. This agreement shall be governed by and construed in accordance
with the laws of the State of New York, without regard to conflicts of laws principles thereof.

          (i) Severability. If any term, provision, covenant or restriction of this Agreement
is held to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions,
covenants and restrictions set forth herein shall remain in full force and effect and shall in no
way be affected, impaired or invalidated thereby, and the parties hereto shall use their best
efforts to find and employ an alternative means to achieve the same or substantially the same
result as that contemplated by such term, provision, covenant or restriction, it being intended
that all of the rights and privileges of the parties shall be enforceable to the fullest extent
permitted by law.

          (j) Entire Agreement. This Agreement is intended by the parties as a final expression
of their agreement and is intended to be a complete and exclusive statement of the agreement and
understanding of the parties hereto in respect of the subject matter contained herein and the
registration rights granted by the Company with respect to the Registrable Securities. Except as
provided in the Purchase Agreement, there are no restrictions, promises, warranties or
undertakings, other than those set forth or referred to herein, with respect to the registration
rights granted by the Company with respect to the Registrable Securities. This Agreement
supersedes all prior agreements and undertakings among the parties with respect to such
registration rights.

          (k) Termination. This Agreement and the obligations of the parties hereunder shall
terminate upon the expiration of the Effectiveness Period, except for any liabilities or
obligations under Sections 4, 5 or 6 hereof and the obligations to make payments of and provide for
liquidated damages under Section 2(e) hereof to the extent such damages accrue prior to the end of
the Effectiveness Period, each of which shall remain in effect in accordance with its terms.

[Remainder of this page intentionally left blank]

19

 

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

	 	 	 	 	 
	 	OSI PHARMACEUTICALS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	CONFIRMED AND ACCEPTED,	 	 
	    as of the date first above written:	 	 
	 
	 	 	 	 
	UBS SECURITIES LLC	 	 
	 
	 	 	 	 
	By:

	 	UBS SECURITIES LLC
	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:	 	 
	 

	 	Title:<PAGE>
                                                                    Exhibit 10.1

                          THE MAJESTIC STAR CASINO, LLC
                     THE MAJESTIC STAR CASINO CAPITAL CORP.
                $40,000,000 9 1/2% SENIOR SECURED NOTES DUE 2010
                               PURCHASE AGREEMENT

                                                               December 16, 2005

JEFFERIES & COMPANY, INC.
520 Madison Avenue
12th Floor
New York, New York 10022

Ladies and Gentlemen:

     Each of The Majestic Star Casino, LLC, an Indiana limited liability company
(the "Company"), The Majestic Star Casino Capital Corp., an Indiana corporation
("Capital" and, together with the Company, the "Issuers"), and each Subsidiary
Guarantor (as defined herein) hereby agrees with you as follows:

     1. Issuance of Securities. The Issuers propose to issue and sell to
Jefferies & Company, Inc. (the "Initial Purchaser"), and the Initial Purchaser
proposes to purchase, $40,000,000 aggregate principal amount of the Issuers'
9 1/2% Senior Secured Notes due 2010 (the "Series A Notes"). The Series A Notes
will be issued pursuant to an indenture dated as of October 7, 2003 (as amended
by a supplemental indenture (the "First Supplemental Indenture") to be executed
as of the Closing Date (as defined herein) (the "Existing Indenture") and, as
further amended by a second supplemental indenture to be executed as of the
Closing Date (the "Second Supplemental Indenture"), the Existing Indenture, as
further amended by the Second Supplemental Indenture, the "Indenture"), among
the Issuers, the Subsidiary Guarantors (as defined herein), and The Bank of New
York Trust Company, N.A. as successor to The Bank of New York, as trustee (the
"Trustee"). The Series A Notes and the Series B Notes (as defined herein), are
collectively referred to herein as the "Notes". Capitalized terms used, but not
defined herein, shall have the meanings set forth in the Indenture.

     The Series A Notes will be offered and sold to the Initial Purchaser
pursuant to an exemption from the registration requirements under the Securities
Act of 1933, as amended (the "Act"). Upon original issuance thereof, and until
such time as the same is no longer required under the applicable requirements of
the Act, the Notes shall bear the legends set forth in the final offering
circular, dated the date hereof (the "Offering Circular"). The Company has
prepared a preliminary offering circular, dated December 7, 2005 (the
"Preliminary Offering Circular"), and the Offering Circular relating to the
offer and sale of the Series A Notes (the "Offering").

     2. Agreements to Sell and Purchase. On the basis of the representations,
warranties, agreements and covenants herein and subject to the terms and
conditions herein set forth, the Issuers agree to issue and sell to the Initial
Purchaser, and the Initial Purchaser agrees to purchase from the Issuers,
$40,000,000 aggregate principal amount of the Series A Notes for a

<PAGE>

purchase price of $39,596,666.67 which is equal to the excess of (x) the sum of
(1) 100 % of the aggregate principal amount thereof and (2) interest accrued
thereon from October 15, 2005 to the Closing Date, over (y) the aggregate amount
of fees and commissions to the Initial Purchaser.

     3. Terms of Offering. The Initial Purchaser has advised the Company, and
the Company understands, that the Initial Purchaser will make offers to sell
(the "Exempt Resales") some or all of the Series A Notes purchased by the
Initial Purchaser hereunder on the terms set forth in the Offering Circular, as
amended or supplemented, to persons (the "Subsequent Purchasers") whom the
Initial Purchaser (i) reasonably believes to be "qualified institutional buyers"
as defined in Rule 144A under the Act, as such Rule may be amended from time to
time ("QIBs"), (ii) reasonably believes (based upon written representations made
by such persons to the Initial Purchaser) to be institutional "accredited
investors" ("Accredited Investors") as defined in Rule 501(a)(1), (2), (3) or
(7) under the Act or (iii) reasonably believes to be non-U.S. persons in
reliance upon Regulation S under the Act.

     Holders of the Series A Notes (including Subsequent Purchasers) will have
the registration rights set forth in the registration rights agreement
applicable to the Series A Notes (the "Registration Rights Agreement"), to be
executed on and dated as of the Closing Date. Pursuant to the Registration
Rights Agreement, the Issuers and the Subsidiary Guarantors will agree, among
other things, to file with the Securities and Exchange Commission (the
"Commission") (a) a registration statement under the Act (the "Exchange Offer
Registration Statement") relating to 9 1/2% Senior Secured Notes of the Issuers
due 2010 (the "Series B Notes") which shall be identical in all material
respects to the Series A Notes (except that the Series B Notes shall have been
registered pursuant to the Exchange Offer Registration Statement and will not be
subject to restrictions on transfer or contain additional interest provisions)
to be offered in exchange for the Series A Notes (such offer to exchange being
referred to as the "Registered Exchange Offer"), and/or (b) under certain
circumstances, a shelf registration statement pursuant to Rule 415 under the Act
(the "Shelf Registration Statement") relating to the resale by certain holders
of the Series A Notes.

     Concurrently with the sale of the Series A Notes on the Closing Date, the
Company and Majestic Star Casino Capital Corp. II ("Capital II"), a wholly-owned
subsidiary of the Company, will issue 9 3/4% senior unsecured notes due 2011
(the "Senior Notes") and Majestic Holdco, LLC ("Holdco"), the parent of the
Company and Majestic Star Holdco, Inc., a wholly-owned subsidiary of Holdco,
will issue 12 1/2% senior discount notes due 2011 (the "Discount Notes"). As
described in the Offering Circular, the Company intends to use a portion of the
proceeds from the sale of the Notes, the Senior Notes and the Discount Notes to,
among other things, acquire (the "Acquisition") all of the issued and
outstanding capital stock of Trump Indiana, Inc., a Delaware corporation (and,
together with Buffington Harbor Riverboats, L.L.C. and Buffington Harbor Parking
Associates, LLC, "Trump") pursuant to the stock purchase agreement dated as of
November 3, 2005, by and between the Company and Trump Entertainment Resort
Holdings, L.P. (the "Stock Purchase Agreement"). On the Closing Date, the
Company will also, (i) amend its credit facility dated as of October 7, 2003, by
and between the Company and Wells Fargo Foothill, Inc., in the manner described
in the Offering Circular (as amended, the "Amended Credit Facility") and (ii)
amend its intercreditor agreement dated as of October 7, 2003, by and among the
Trustee and Wells Fargo Foothill, Inc., in the manner described in the Offering
Circular (as amended, the "Amended Intercreditor Agreement").

                                        2

<PAGE>

     Pursuant to the Existing Indenture, all subsidiaries of the Company listed
on Schedule A hereto, other than Trump and Capital II (and pursuant to the
Second Supplemental Indenture, Trump and Capital II), shall fully and
unconditionally guarantee, on a senior secured basis, to each holder of the
Notes and the Trustee, the payment and performance of the Company's obligations
under the Indenture and the Notes (each such subsidiary (including, upon the
consummation of the Acquisition, Trump)) being referred to herein as a
"Subsidiary Guarantor" and such guarantee being referred to herein as a
"Guarantee").

     Pursuant to the terms of the Security Documents (used herein as defined in
the Indenture and including the Pledge Joinder (as defined herein)), all of the
obligations under the Notes, the Indenture and the Registration Rights Agreement
will, in the case of such obligations of the Issuers and Subsidiary Guarantors
(other than Trump), continue to, and, in the case of Trump, will, be secured by
a lien and security interest in, or pledges of (the "Security Interests"),
substantially all of the assets of, all of the shares of capital stock of, and
all of the membership interests in the Issuers and the Subsidiary Guarantors
(the "Collateral"), to be granted to the Trustee, as secured party (in such
capacity, the "Secured Party") for the benefit of the holders of the Notes
(subordinate to the Lien on the Collateral securing the Amended Credit Facility
pursuant to the Amended Intercreditor Agreement), in the manner set forth in the
Offering Circular. In addition, certain of the Security Documents prohibit
transfer or mortgage of certain leasehold interests of the Issuers and
Subsidiary Guarantors. The Issuers, the Subsidiary Guarantors and Majestic
Holdco, LLC ("Parent"), collectively, are sometimes referred to herein as the
"Majestic Entities".

     Effective upon consummation of the Acquisition, the Company will (a) cause
Trump to become a Subsidiary Guarantor and execute (i) a counterpart hereto,
(ii) a Pledge Joinder to the Security Agreement (the "Pledge Joinder"), pursuant
to which, among other things, Trump will become a party to the Security
Agreement), (iii) the Second Supplemental Indenture, (iv) the Guarantees, and
(v) the Registration Rights Agreement and (b) execute a Pledge Supplement to the
Security Agreement to pledge all of equity interests owned by it in Trump
Indiana, Inc., Buffington Harbor Riverboats, L.L.C. and Buffington Harbor
Parking Associates, LLC (the "Pledge Supplement"). On the Closing Date, the
Company will cause Capital II to become a Subsidiary Guarantor and execute (i)
the Pledge Joinder, (ii) the Second Supplemental Indenture, (iii) the Guarantees
and (iv) the Registration Rights Agreement.

     This Agreement, the Indenture, the Registration Rights Agreement, the
Notes, the Guarantees, the Amended Credit Facility, the Pledge Joinder, the
Pledge Supplement, the Security Documents and the Amended Intercreditor
Agreement, together with all other documents or instruments executed by the
Majestic Entities in connection with the transactions contemplated thereby,
collectively are referred to herein as the "Documents." The transactions
contemplated by the Documents are referred to herein as the "Transactions."

     4. Delivery and Payment. Delivery to the Initial Purchaser of and payment
for the Series A Notes shall be made at a Closing (the "Closing") to be held at
9:00 a.m., New York City time, on December 21, 2005, (such time and date, the
"Closing Date") at the offices of Mayer, Brown, Rowe & Maw LLP, 1675 Broadway,
New York, New York 10019. The Closing Date and the location of delivery of and
the form of payment for the Series A Notes may be varied by agreement between
the Initial Purchaser and the Issuers.

                                        3

<PAGE>

     The Issuers shall deliver to the Initial Purchaser one or more certificates
representing the Series A Notes in definitive form, registered in such names and
denominations as the Initial Purchaser may request, against payment by the
Initial Purchaser of the purchase price therefor by immediately available
Federal funds bank wire transfer to such bank account or accounts as the Company
shall designate to the Initial Purchaser at least two Business Days prior to the
Closing. The certificates representing the Series A Notes in definitive form
shall be made available to the Initial Purchaser for inspection at the New York
offices of Mayer, Brown, Rowe & Maw LLP (or such other place as shall be
reasonably acceptable to the Initial Purchaser) not later than 10:00 a.m.,
Eastern Standard Time, one Business Day immediately preceding the Closing Date.
Series A Notes to be represented by one or more definitive global securities in
book-entry form will be deposited on the Closing Date, by or on behalf of the
Company, with The Depository Trust Company ("DTC") or its designated custodian,
and registered in the name of Cede & Co.

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

     (a) Certain Events. To (i) advise the Initial Purchaser promptly after
obtaining knowledge (and, if requested by the Initial Purchaser, confirm such
advice in writing) of (A) the issuance by any state securities commission of any
stop order suspending the qualification or exemption from qualification of any
of the Series A Notes for offer or sale in any jurisdiction, or the initiation
of any proceeding for such purpose by any state securities commission or other
regulatory authority, and (B) the happening of any event that makes any
statement of a material fact made in the Offering Circular untrue or that
requires the making of any additions to or changes in the Offering Circular in
order to make the statements therein, in the light of the circumstances under
which they are made, not misleading, (ii) use its best efforts to prevent the
issuance of any stop order or order suspending the qualification or exemption
from qualification of any of the Notes under any state securities or Blue Sky
laws, and (iii) if at any time any state securities commission or other
regulatory authority shall issue an order suspending the qualification or
exemption from qualification of any of the Series A Notes under any such laws,
use its best efforts to obtain the withdrawal or lifting of such order at the
earliest possible time.

     (b) Offering Circular. At any time prior to the completion of the sale of
all of the Series A Notes by the Initial Purchaser pursuant to Exempt Resales,
to (i) furnish the Initial Purchaser and those persons identified by the Initial
Purchaser to the Issuers, without charge, as many copies of the Preliminary
Offering Circular and the Offering Circular, and any amendments or supplements
thereto, as the Initial Purchaser may reasonably request, and (ii) promptly
prepare, upon the Initial Purchaser's request, any amendment or supplement to
the Offering Circular that the Initial Purchaser deems may be necessary in
connection with Exempt Resales (and the Issuers and Subsidiary Guarantors hereby
consent, subject to the Initial Purchaser's compliance with its representations
and warranties set forth in Section 7, to the use of the Preliminary Offering
Circular and the Offering Circular, and any amendments and supplements thereto,
by the Initial Purchaser in connection with Exempt Resales).

     (c) Notice of Amendment or Supplement. Not to amend or supplement the
Offering Circular prior to the Closing Date, or at any time prior to the
completion of the resale of all of the Series A Notes by the Initial Purchaser
pursuant to Exempt Resales, unless the Initial Purchaser

                                        4

<PAGE>

shall previously have been advised thereof and shall not have objected thereto
within three Business Days after being furnished a copy thereof.

     (d) Preparation of Amendments and Supplements. At any time prior to the
completion of the resale of all of the Series A Notes by the Initial Purchaser
pursuant to Exempt Resales, (i) if any event shall occur as a result of which,
in the reasonable judgment of the Issuers or the Initial Purchaser or their
respective counsel, it becomes necessary or advisable to amend or supplement the
Offering Circular in order to make the statements therein, in the light of the
circumstances when such Offering Circular is delivered to a purchaser pursuant
to an Exempt Resale, not misleading, or if it is necessary to amend or
supplement the Offering Circular to comply with Applicable Law (as defined
herein), forthwith to prepare an appropriate amendment or supplement to the
Offering Circular (in form and substance satisfactory to the Initial Purchaser)
so that as so amended or supplemented, (A) the Offering Circular will not
include an untrue statement of material fact or omit to state a material fact
necessary in order to make the statements therein, in the light of the
circumstances when it is so delivered, not misleading, and (B) the Offering
Circular will comply with Applicable Law, and (ii) if it becomes necessary or
advisable to amend or supplement the Offering Circular so that the Offering
Circular will contain all of the information specified in, and meet the
requirements of, Rule 144A(d)(4) under the Act, forthwith to prepare an
appropriate amendment or supplement to the Offering Circular (in form and
substance satisfactory to the Initial Purchaser) so that the Offering Circular,
as so amended or supplemented, will contain the information specified in, and
meet the requirements of, such Rule.

     (e) Qualification of Securities. Prior to the sale of all of the Series A
Notes by the Initial Purchaser pursuant to Exempt Resales, to cooperate with the
Initial Purchaser and the Initial Purchaser's counsel in connection with the
qualification of the Series A Notes under the securities or Blue Sky laws of
such jurisdictions as the Initial Purchaser may request and continue such
qualification in effect so long as reasonably required for Exempt Resales, and
to file such consents to service of process or other documents as may be
necessary in order to effect such qualification; provided, that none of the
Issuers and the Subsidiary Guarantors shall be required in connection therewith
to file any general consent to service of process or to register or qualify as a
foreign corporation in any jurisdiction where it is not now so qualified or to
subject itself to general taxation in respect of doing business in any
jurisdiction in which it is not otherwise so subject.

     (f) Costs and Expenses. Whether or not any of the Offering or the
Transactions are consummated or this Agreement is terminated, to pay (i) all
costs, expenses, fees and taxes incident to and in connection with the
performance of the obligations of the Majestic Entities under this Agreement,
including: (A) the preparation, printing and distribution of the Preliminary
Offering Circular and the Offering Circular and all amendments and supplements
thereto (including, without limitation, financial statements and exhibits), and
all preliminary and final Blue Sky memoranda and all other agreements,
memoranda, correspondence and other documents prepared and delivered in
connection herewith (including the furnishing of copies of the foregoing to the
Initial Purchaser and such other persons as the Initial Purchaser may
designate), (B) the processing and distribution (including, without limitation,
word processing and duplication costs) and delivery of, and performance under,
each of the Documents and any other agreements or documents in connection with
the Transactions, (C) the preparation,

                                        5

<PAGE>

issuance and delivery of the Notes, including the fees and expenses of the
Trustee and the Secured Party (including reasonable fees and expenses of their
respective counsel) and all costs and expenses related to the delivery of the
Series A Notes to the Initial Purchaser and pursuant to Exempt Resales,
including any transfer or other taxes payable thereon and (D) the qualification
of the Notes for offer and sale under the securities or Blue Sky laws of the
several states (including, without limitation, filing fees and reasonable fees
and disbursements of the Initial Purchaser's counsel relating to such
registration or qualification and the preparation of memoranda related thereto),
(ii) all fees and expenses of the counsel and accountants of the Majestic
Entities (except for any fees and expenses of Trump prior to the Closing Date),
(iii) all expenses and listing fees in connection with the application for
quotation of the Series A Notes on the Private Offerings, Resales and Trading
Automated Linkages ("PORTAL") market, (iv) all fees and expenses (including fees
and expenses of counsel) of the Issuers in connection with approval of the Notes
by DTC for "book-entry" transfer, (v) all fees charged by rating agencies in
connection with the rating of the Notes, (vi) all fees and expenses (including
reasonable fees and expenses of counsel) of the Trustee and all collateral
agents, (vii) all costs and expenses of the Registered Exchange Offer, the
Exchange Offer Registration Statement and any Shelf Registration Statement, as
set forth in the Registration Rights Agreement, (viii) all fees and expenses
(including reasonable fees and expenses of counsel, subject to any limitations
imposed by previous agreements between the parties) incurred by the Initial
Purchaser in connection with the preparation, negotiation and execution of the
Documents and the consummation of the Transactions, (ix) all costs and expenses
in connection with the creation and perfection of the Security Interests
evidenced by the Security Documents (including without limitation, filing and
recording fees, search fees, taxes and costs of title policies) and (x) all
other costs and expenses incident and necessary to the performance of the
obligations of the Issuers and the Subsidiary Guarantors under this Agreement
for which provision is not otherwise made in this section.

     (g) Use of Proceeds. To use their respective reasonable best efforts to use
the proceeds from the sale of the Series A Notes in the manner described in the
Offering Circular under the caption "Use of Proceeds."

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

     (i) Security Interests. Subject to the terms of the Amended Intercreditor
Agreement, to do and perform all things required to be done and performed under
the Security Documents prior to, on and after the Closing Date, including,
without limitation, all things necessary or advisable to obtain on or prior to
the Closing Date (i) all Permits (as defined below), other than any gaming
approvals required to be obtained by a purchaser in a foreclosure sale,
necessary for the granting, perfection and enforcement of the Security Interests
and for the foreclosure by the

                                        6

<PAGE>

Secured Party thereon following an Event of Default (as defined in the
Indenture), (ii) all termination statements, mortgage releases and other
documents necessary to terminate any Liens (as defined in the Indenture) on the
Collateral other than Permitted Liens (as defined in the Indenture), and (iii) a
valid and perfected, first priority Security Interest with respect to each of
the assets, shares of capital stock and membership interests which are to
constitute the Collateral.

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

     (k) Rule 144A Information. For so long as any of the Series A Notes remain
outstanding, during any period in which either of the Issuers is not subject to
Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), to make available, upon request, to any holder of the Notes in
connection with any sale thereof, the information required by Rule 144A(d)(4)
under the Act.

     (l) DTC. To obtain the approval of DTC for "book entry" transfer of the
Notes, and to comply with the representation letter of the Issuers and the
Subsidiary Guarantors to DTC relating to the approval of the Notes by DTC for
"book entry" transfer.

     (m) PORTAL. To use its best efforts to effect the inclusion of the Series A
Notes in PORTAL and to use its best efforts to maintain the listing of the
Series A Notes on PORTAL for so long as the Series A Notes are outstanding.

     (n) Reporting Requirements. For so long as any of the Notes are
outstanding, (i) to furnish to the Trustee and deliver or cause to be delivered
to the holders of the Notes and the Initial Purchaser, within 15 days after
either Issuer is or would have been required to file such with the Commission,
(A) all quarterly and annual financial information that would be required to be
contained in a filing with the Commission on Forms 10-Q and 10-K if the Issuers
were required to file such Forms, including for each a "Management's Discussion
and Analysis of Financial Condition and Results of Operations" and, with respect
to the annual information only, a report thereon by the Issuers' independent
certified public accountants and (B) all information that would be required to
be contained in a filing with the Commission on Form 8-K if the Issuers were
required to file such reports, provided, however, that in no case shall the
Company be required to furnish materials pursuant to this paragraph which are
filed and publicly accessible via EDGAR and (ii) from and after the time the
Exchange Offer Registration Statement or the Shelf Registration Statement (or
other registration statement under the Act with respect to the Notes) is filed
with the Commission, to file such information with the Commission so long as the
Commission will accept such filings.

     (o) No Selling Efforts or General Solicitation. Except in connection with
the Registered Exchange Offer or the filing of the Shelf Registration Statement,
not to, and not to authorize or permit any person acting on its behalf to, (i)
distribute any offering material in connection with the offer and sale of the
Series A Notes other than the Preliminary Offering

                                        7

<PAGE>

Circular and the Offering Circular and any amendments and supplements to the
Offering Circular prepared in compliance with this Agreement, or (ii) solicit
any offer to buy or offer to sell the Series A Notes by means of any form of
general solicitation or general advertising (including, without limitation, as
such terms are used in Regulation D under the Act) or in any manner involving a
public offering within the meaning of Section 4(2) of the Act.

     (p) No Similar Offerings. Except as described in the Offering Circular,
during the period beginning on the date hereof and continuing to and including
the Closing Date, not to, directly or indirectly, without the prior consent of
the Initial Purchaser, offer, sell, contract to sell, grant any option to
purchase or otherwise dispose of (or announce any offer or sale of, contract to
sell, grant of any option to purchase or other disposition of) any debt
securities of any of the Issuers or Subsidiary Guarantors substantially similar
to the Notes and the Guarantees; provided, that the foregoing will not apply to
(i) the Notes and the Guarantees, (ii) borrowings from financial institutions,
(iii) the Senior Notes and any guarantees thereunder and (iv) the Discount
Notes, in the case of each of clauses (i) through (iv) of this Section 5(o),
only to the extent not prohibited by the Indenture.

     (q) Performance of Agreements. To comply in all material respects with all
of its agreements set forth in the Documents, and to use its reasonable best
efforts to do and perform all things required or necessary to be done and
performed under this Agreement by it prior to the Closing Date and to satisfy
all conditions precedent to the delivery of the Series A Notes and the
Guarantees and the granting, perfection and enforcement of the Security
Interests.

     6. Representations and Warranties of the Issuers and the Subsidiary
Guarantors. As of the date hereof, each of the Issuers and the Subsidiary
Guarantors, jointly and severally, represents and warrants to the Initial
Purchaser that:

     (a) Offering Circular. The Preliminary Offering Circular as of its date did
not, and the Offering Circular, as of its date did not, and as of the Closing
Date will not, and each supplement or amendment thereto as of its date will not,
contain any untrue statement of a material fact or omit to state any material
fact (except, in the case of the Preliminary Offering Circular, for pricing
terms and other financial terms intentionally left blank) necessary in order to
make the statements therein, in the light of the circumstances under which they
were made, not misleading. The foregoing representation and warranty made in
this Section 6(a) shall not apply to any statements or omissions made in
reliance on and in conformity with information relating to the Initial Purchaser
furnished in writing to the Issuers by the Initial Purchaser specifically for
inclusion in the Preliminary Offering Circular or the Offering Circular. The
parties hereto acknowledge that for purposes of this Agreement (including this
Section 6(a) and Section 8) the only information furnished in writing to the
Issuers by the Initial Purchaser specifically for inclusion in the Preliminary
Offering Circular or the Offering Circular is the information set forth (i) on
the cover page of the Offering Circular with respect to the price of the Notes,
Senior Notes and Discount Notes (ii) in the third paragraph on page 185 of the
Offering Circular concerning offering the Notes, Senior Notes and Discount Notes
for resale by the Initial Purchaser, (iii) in the fifth paragraph on page 185 of
the Offering Circular concerning market-making by the Initial Purchaser, (iv) in
the sixth paragraph on page 185 of the Offering Circular concerning
stabilization by the Initial Purchaser and (v) in the first full paragraph on
page 186 of the Offering Circular concerning the affiliation of the Initial
Purchaser and their respective

                                        8

<PAGE>

affiliates with the Issuers and their affiliates (such information described in
the immediately preceding clauses (i) through (v) of this Section 6(a), the
"Furnished Information"). Each of the Preliminary Offering Circular and the
Offering Circular, as of their respective dates contained, and the Offering
Circular, as of the Closing Date and as amended or supplemented, will contain,
all of the information required by Rule 144A(d)(4) under the Act. Each of the
Documents, as executed and delivered, and each of the Transactions, conforms to
the description thereof in the Offering Circular.

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

     (c) Subsidiaries. Immediately following the Closing, (i) Capital will have
no subsidiaries, (ii) the only subsidiaries of the Company will be Capital and
the Subsidiary Guarantors (collectively, the "Subsidiaries" and each, a
"Subsidiary"), (iii) the Company will directly or indirectly own 100% of the
outstanding shares of capital stock, membership interests or other equity
interests in Capital and each Subsidiary, in each case, free and clear of all
Liens, except for Permitted Liens and (iv) Parent will directly own 100% of the
outstanding membership interests in the Company free and clear of all Liens,
except for Permitted Liens. Except as disclosed in the Offering Circular, there
are no outstanding (i) securities convertible into or exchangeable for any
capital stock of, or any membership interests in, as the case may be, any of the
Issuers or Subsidiary Guarantors, (ii) options, warrants or other rights to
purchase or subscribe for any capital stock of or any membership interests in,
or any securities convertible into or exchangeable for any capital stock of or
any membership interests in, as the case may be, any of the Issuers or
Subsidiary Guarantors or (iii) contracts, commitments, agreements,
understandings, arrangements, undertakings, rights, calls or claims of any kind
relating to the issuance of any capital stock of, or any membership interests
in, as the case may be, any of the Issuers or Subsidiary Guarantors, any such
convertible or exchangeable securities or any such options, warrants or rights.
Except as set forth above, immediately following the Closing, none of the
Issuers or Subsidiary Guarantors will directly or indirectly own any capital
stock of or other equity interest in any person.

     (d) Capitalization. All of the outstanding membership interests, capital
stock or other equity interests in the Company, Capital and each of the
Subsidiaries are validly issued and were not issued in violation of, and are not
subject to, any preemptive or similar rights. The table

                                        9

<PAGE>

under the caption "Capitalization" in the Offering Circular (including the
footnotes thereto) sets forth, as of its date, the pro forma capitalization of
the Issuers and the Subsidiaries, on a consolidated basis, after giving effect
to the Transactions and the Acquisition. Immediately following the Closing,
except as set forth in such table, neither of the Issuers nor any of the
Subsidiaries will have any liabilities, absolute, accrued, contingent or
otherwise other than (i) liabilities that are reflected in the Financial
Statements (as defined herein), (ii) liabilities incurred subsequent to
September 30, 2005, in the ordinary course of business, consistent with past
practice, that would not, singly or in the aggregate, have a Material Adverse
Effect, or (iii) loans made under the Amended Credit Facility.

     (e) No Other Registration Rights. Except for this Agreement, the
Registration Rights Agreement, the registration rights agreement relating to the
Senior Notes, the purchase agreement relating to the Senior Notes and the Stock
Purchase Agreement, there are no contracts, commitments, agreements,
arrangements, understandings or undertakings of any kind to which any of the
Issuers or Subsidiary Guarantors is a party, or by which any of them is bound,
granting to any person the right (i) to require either of the Issuers or any
Subsidiary Guarantor to file a registration statement under the Act with respect
to any securities of either of the Issuers or any Subsidiary Guarantor or
requiring either of the Issuers or any Subsidiary Guarantor to include such
securities with the Notes registered pursuant to any registration statement, or
(ii) to purchase or offer to purchase any securities of any of the Issuers or
Subsidiary Guarantors.

     (f) Power and Authority. Each of the Majestic Entities has all requisite
power and authority to execute and deliver, and to perform its obligations
under, the Documents to which it is a party and to consummate the transactions
contemplated thereby.

     (g) Authorization of this Agreement. This Agreement and the Transactions
have been duly authorized by each of the Issuers and the Subsidiary Guarantors
(other than Trump), and this Agreement has been validly executed and delivered
by, and is the legal, valid and binding obligation of, each of the Issuers and
the Subsidiary Guarantors (other than Trump), enforceable against each of the
Issuers and the Subsidiary Guarantors (other than Trump) in accordance with its
terms, and, effective upon consummation of the Acquisition, will be duly
authorized, validly executed and delivered by, and will become the legal, valid
and binding obligation of Trump enforceable against Trump in accordance with its
terms, except that (i) such enforceability may be limited by applicable
bankruptcy, insolvency or similar laws affecting creditors' rights generally,
(ii) any rights of acceleration and the availability of equitable remedies may
be subject to general principles of equity (whether considered in a proceeding
in equity or at law) and (iii) the enforceability of the provisions of Section 8
providing for the indemnification of or contribution to a party with respect to
a liability may be limited if such provisions violate or are contrary to public
policy under applicable law.

     (h) Authorization of Indenture. The Indenture and the transactions
contemplated thereby have been duly authorized by each of the Issuers and the
Subsidiary Guarantors (other than Trump) and, effective upon the consummation of
the Acquisition, will be duly authorized by Trump, and, on the Closing Date, the
Indenture will have been validly executed and delivered by, and will be the
legal, valid and binding obligation of, each of the Issuers and the Subsidiary
Guarantors, enforceable against each of the Issuers and the Subsidiary
Guarantors in accordance with its terms, except that (i) such enforceability may
be limited by applicable bankruptcy,

                                       10

<PAGE>

insolvency or similar laws affecting creditors' rights generally and (ii) any
rights of acceleration and the availability of equitable remedies may be subject
to general principles of equity (whether considered in a proceeding in equity or
at law). On the Closing Date, the Indenture will conform to the requirements of
the Trust Indenture Act of 1939, as amended (the "TIA"), applicable to an
indenture that is required to be qualified under the TIA.

     (i) Authorization of Registration Rights Agreement. The Registration Rights
Agreement and the transactions contemplated thereby have been duly authorized by
each of the Issuers and the Subsidiary Guarantors (other than Trump) and,
effective upon the consummation of the Acquisition, will be validly authorized
by Trump, and, on the Closing Date, the Registration Rights Agreement will have
been validly executed and delivered by, and will be the legal, valid and binding
obligation of, each of the Issuers and the Subsidiary Guarantors, enforceable
against each of the Issuers and the Subsidiary Guarantors in accordance with its
terms, except that (i) such enforceability may be limited by applicable
bankruptcy, insolvency or similar laws affecting creditors' rights generally,
(ii) any rights of acceleration and the availability of equitable remedies may
be subject to general principles of equity (whether considered in a proceeding
in equity or at law) and (iii) the enforceability of the provisions thereof
providing for the indemnification of or contribution to a party with respect to
a liability may be limited if such provisions violate or are contrary to public
policy under applicable law.

     (j) Authorization of Series A Notes. The Series A Notes have been duly
authorized by each of the Issuers for issuance and sale to the Initial Purchaser
pursuant to this Agreement and, on the Closing Date, will have been validly
executed, authenticated, issued and delivered by the Issuers in accordance with
the terms of this Agreement and the Indenture. When the Series A Notes have been
issued, executed and authenticated in accordance with the terms of the Indenture
and delivered to and paid for by the Initial Purchaser in accordance with the
terms of this Agreement, the Series A Notes will be legal, valid and binding
obligations of each of the Issuers, entitled to the benefits of the Indenture
and enforceable against each of the Issuers in accordance with their terms,
except to the extent that (i) such enforceability may be limited by applicable
bankruptcy, insolvency or similar laws affecting creditors' rights generally and
(ii) any rights of acceleration and the availability of equitable remedies may
be subject to general principles of equity (whether considered in a proceeding
in equity or at law). The Notes rank and will rank on a parity with all senior
Indebtedness (as defined in the Indenture) of each of the Issuers that is
outstanding on the date hereof or that may be incurred hereafter and senior to
all other Indebtedness of each of the Issuers that is outstanding on the date
hereof or that may be incurred hereafter; provided, that pursuant to the Amended
Intercreditor Agreement, the Liens on the Collateral securing the Amended Credit
Facility will be senior to the Lien on the Collateral securing the Notes and the
Guarantees.

     (k) Authorization of Series B Notes. The Series B Notes have been duly
authorized by each of the Issuers and, when issued in the Registered Exchange
Offer, (A) will have been validly executed, authenticated, issued and delivered
in accordance with the terms of the Indenture, the Registration Rights Agreement
and the Registered Exchange Offer and (B) will be legal, valid and binding
obligations of each of the Issuers, entitled to the benefits of the Indenture
and enforceable against each of the Issuers in accordance with their terms,
except to the extent that (i) such enforceability may be limited by applicable
bankruptcy, insolvency or similar laws affecting creditors' rights generally and
(ii) any rights of acceleration and the availability of

                                       11

<PAGE>

equitable remedies may be subject to general principles of equity (whether
considered in a proceeding in equity or at law).

     (l) No Violation. Parent is not in violation of its certificate of
formation or operating agreement (the "Parent Charter Documents"), the Company
is not in violation of its certificate of formation or operating agreement (the
"Company Charter Documents"), Capital is not in violation of its charter or
bylaws (the "Capital Charter Documents") and none of the Subsidiary Guarantors
is in violation of its certificate of formation or charter, as the case may be,
or operating agreement or bylaws, as the case may be, (the "Subsidiary Guarantor
Charter Documents" and, collectively with Parent Charter Documents, the Capital
Charter Documents and the Company Charter Documents, the "Charter Documents").
None of the Majestic Entities is (i) in violation of any applicable federal,
state, local or foreign statute, law or ordinance, or any judgment, decree,
rule, regulation or order, including, without limitation, the Indiana Riverboat
Gambling Act, the Mississippi Gaming Control Act and the Colorado Limited Gaming
Act of 1991, in each case including the rules and regulations promulgated
thereunder (collectively, "Applicable Law"), of any government, governmental or
regulatory agency or body (including, without limitation, the Indiana Gaming
Commission, the Mississippi Gaming Commission, the Colorado Limited Gaming
Control Commission, the Colorado Division of Gaming or other applicable gaming
authority (each, a "Gaming Authority")), court, arbitrator or self-regulatory
organization, domestic or foreign (each, a "Governmental Authority"), other than
violations that would not, singly or in the aggregate, have a Material Adverse
Effect, or (ii) in breach of or default under any bond, debenture, note or other
evidence of indebtedness, indenture, mortgage, deed of trust, lease or any other
agreement or instrument to which any such person is a party or by which any of
them or any of their respective property is bound (collectively, "Applicable
Agreements"), other than breaches or defaults that would not, singly or in the
aggregate, have a Material Adverse Effect. There exists no condition that, with
the passage of time or otherwise, would (x) constitute a violation of such
Charter Documents or Applicable Laws or (y) constitute a breach of or default
under any Applicable Agreement or (z) result in the imposition of any penalty or
the acceleration of any indebtedness, other than, in the case of the immediately
preceding clauses (y) and (z), such breaches, penalties or defaults that would
not, singly or in the aggregate, have a Material Adverse Effect. All Applicable
Agreements are in full force and effect and are legal, valid and binding
obligations, and no default has occurred or is continuing thereunder, other than
such defaults that would not, singly or in the aggregate, have a Material
Adverse Effect.

     (m) No Conflict. None of the execution, delivery or performance by any of
the Majestic Entities of any of the Documents to which it is or will become a
party, nor the compliance with the terms and provisions thereof, nor the
consummation of any of the Transactions shall conflict with, violate, constitute
a breach of or a default (with the passage of time or otherwise) under, requires
the consent of any person (other than consents already obtained and in full
force and effect or that will have been obtained on or prior to the Closing
Date) under, results in the imposition of a Lien on any assets or capital stock
of, or membership interests in, either of the Issuers or any of the Subsidiaries
(other than Permitted Liens), or results in an acceleration of indebtedness
under, or pursuant to, (i) the Charter Documents, (ii) any Applicable Agreement,
or (iii) any Applicable Law, assuming, in the case of any Exempt Resales made to
Accredited Investors, the accuracy of the representations and warranties of such
Accredited Investors contained in letters of representations in the form of
Annex A attached to

                                       12

<PAGE>

the Offering Circular executed by such Accredited Investors. After giving effect
to the Transactions, no Default or Event of Default will exist.

     (n) Permits. No permit, certificate, authorization, approval, consent,
license or order of, or filing, registration, declaration or qualification with,
any Governmental Authority or any other person (collectively, "Permits") is
required in connection with, or as a condition to, the execution, delivery or
performance of any of the Documents, the compliance with the terms and
provisions thereof or the consummation of any of the Transactions, other than
(i) such Permits as have been made or obtained on or prior to the Closing Date,
which Permits are in full force and effect on the Closing Date, (ii) such
Permits, the failure of which to make or obtain would not, singly or in the
aggregate, have a Material Adverse Effect, (iii) the filing of the Exchange
Offer Registration Statement and, if required by the Registration Rights
Agreement, the Shelf Registration Statement, with applicable Gaming Authorities,
(iv) the approval of the Indiana Gaming Commission of the Documents prior to
Closing, and (v) the filing of loan reports with the Mississippi Gaming
Commission pursuant to MGC Regulation II Licensing I, Section 11 with respect to
the offering of the Notes and the transactions related to the Amended Credit
Facility and (vi) the Colorado Division of Gaming and the Colorado Gaming
Commission post-closing regulatory approval (the Permits described in clauses
(iii), (v) and (vi) of this Section 6(n), collectively, the "Post-Closing
Permits").

     (o) No Proceedings. There is no action, claim, suit, demand, hearing,
notice of violation or deficiency, or proceeding (including, without limitation,
any investigation or partial proceeding, such as a deposition), domestic or
foreign (collectively, "Proceedings"), pending or, to the knowledge of the
Issuers or the Subsidiary Guarantors, threatened (i) either with respect to any
of the Majestic Entities in connection with, or that seeks to restrain, enjoin,
prevent the consummation of, or otherwise challenge, any of the Documents or any
of the Transactions, or (ii) that could, singly or in the aggregate, have a
Material Adverse Effect. Other than rules and regulations of Gaming Authorities,
none of the Majestic Entities is subject to any judgment, order, decree, rule or
regulation of any Governmental Authority that could, singly or in the aggregate,
have a Material Adverse Effect. No injunction or order has been issued and no
Proceeding is pending or, to the knowledge of the Issuers and the Subsidiary
Guarantors, threatened that (i) asserts that the offer, sale and delivery of the
Series A Notes and the Guarantees to the Initial Purchaser pursuant to this
Agreement or the initial resale of the Series A Notes and the Guarantees by the
Initial Purchaser in the manner contemplated by this Agreement is subject to the
registration requirements of the Act, or (ii) would prevent or suspend the
issuance or sale of the Notes, including the Exempt Resales, or the use of the
Preliminary Offering Circular, the Offering Circular, or any amendment or
supplement thereto, in any jurisdiction.

     (p) Regulated Persons. Each of the Issuers and the Subsidiary Guarantors
and each of their respective directors, members, managers, officers and
employees (each of the Issuers and the Subsidiary Guarantors and each of such
other persons, a "Regulated Person" and, collectively, the "Regulated Persons")
has all Permits (including, without limitation, Permits with respect to engaging
in gaming operations) necessary or advisable to own, lease, use and operate the
properties and assets and to conduct and carry on the businesses described in
the Offering Circular, other than such Permits the failure of which to have
would not, singly or in the aggregate, have a Material Adverse Effect on (A) the
pledge by the Parent of its membership

                                       13

<PAGE>

interests in the Company, and (B) the Exchange Offer. All such Permits are valid
and in full force and effect. Each of the Regulated Persons is in compliance
with the terms and conditions of all Permits (including, without limitation,
Permits with respect to engaging in gaming operations) necessary or advisable to
own, lease, use and operate the properties and assets and to conduct and carry
on the businesses described in the Offering Circular, other than where such
failure to be in compliance would not, singly or in the aggregate, have a
Material Adverse Effect. None of the execution, delivery or performance of any
of the Documents, nor the compliance with the terms and provisions thereof, nor
the consummation of any of the Transactions will allow or result in, and no
event has occurred which allows or results in, or after notice or lapse of time
would allow or result in, the imposition of any material penalty under, or the
revocation or termination of, any such Permit or any material impairment of the
rights of the holder of any such Permit. None of the Issuers or Subsidiary
Guarantors has any reason to believe that any issuer is considering limiting,
conditioning, suspending, modifying, revoking or not renewing any such Permit.

     (q) No Investigations of Regulated Persons. To the knowledge of the Issuers
and the Subsidiary Guarantors, (i) no Governmental Authority is investigating
any Regulated Person, other than ongoing general oversight investigations
conducted in the ordinary course of business, and (ii) there is no basis for any
of the Gaming Authorities to deny the renewal of the current Permits held by any
of the Regulated Persons.

     (r) Title to Assets. Immediately following the Closing, each Majestic
Entity (i) will have good and marketable title, free and clear of all Liens
(other than Permitted Liens), to all property and assets described in the
Offering Circular to be owned by it, (ii) will enjoy peaceful and undisturbed
possession under all leases of real property and under all material leases to
which it is a party as lessee and (iii) will hold a valid leasehold interest
with respect to each such lease. Capital and Capital II have no material assets.

     (s) Sufficiency and Condition of Assets. The assets of each of the Issuers
and the Subsidiary Guarantors include all of the assets and properties necessary
or required in, or otherwise material to, the conduct of the businesses of each
of them as currently conducted and as proposed to be conducted, and such assets
are in working condition, except where the failure of such assets to be in
working condition would not, singly or in the aggregate, have a Material Adverse
Effect.

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

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

                                       14

<PAGE>

contract or subject to an option in favor of any of the Issuers or any of the
Subsidiary Guarantors, except for real property which the failure of the Issuers
or any of the Subsidiary Guarantors to acquire, would not, singly or in the
aggregate, have a Material Adverse Effect.

     (v) Related Party Transactions. Except as adequately disclosed in the
Offering Circular, there are no related party transactions that would be
required to be disclosed in the Offering Circular if the Offering Circular were
a prospectus included in a registration statement on Form S-1 filed under the
Act.

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

     (x) Intellectual Property. The Issuers and the Subsidiary Guarantors own or
possess, or are licensed under, and have the right to use, all patents, patent
rights, licenses, inventions, copyrights, know-how (including trade secrets and
other unpatented and/or unpatentable proprietary or confidential information,
systems or procedures), trademarks, service marks and trade names (collectively,
"Intellectual Property") currently used in, currently proposed to be used in, or
necessary for the conduct of, their businesses, free and clear of all Liens,
other than Permitted Liens, except where the failure to own or possess or
otherwise be able to acquire such Intellectual Property would not, singly or in
the aggregate, have a Material Adverse Effect. Except as disclosed in the
Offering Circular, to the knowledge of the Issuers and the Subsidiary
Guarantors, no claims have been asserted by any person challenging the use of
any such Intellectual Property by any of the Issuers or the Subsidiary
Guarantors or questioning the validity or effectiveness of any license or
agreement related thereto, and to the knowledge of the Issuers and the
Subsidiary Guarantors, there is no valid basis for any such claim, and to the
knowledge of the Issuers and the Subsidiary Guarantors, the use of such
Intellectual Property by the Issuers and the Subsidiary Guarantors will not
infringe on the Intellectual Property rights of any other person.

     (y) Accounting Controls. Each of the Issuers and the Subsidiary Guarantors
maintains a system of internal accounting controls sufficient to provide
reasonable assurance that (i) material transactions are executed in accordance
with management's general or specific authorization, (ii) material transactions
are recorded as necessary to permit preparation of

                                       15

<PAGE>

financial statements in conformity with GAAP, and to maintain asset
accountability, (iii) access to assets is permitted only in accordance with
management's general or specific authorization, and (iv) the recorded
accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any material
differences.

     (z) Financial Statements. The audited historical consolidated financial
statements and related notes of the Company and its subsidiaries and the audited
historical financial statements and related notes of Trump Indiana, Inc.,
Buffington Harbor Riverboats, LLC and Buffington Harbor Parking Associates, LLC
contained in the Offering Circular (the "Audited Financial Statements") and the
unaudited consolidated historical financial statements and related notes of the
Company and its subsidiaries and the unaudited historical financial statements
and related notes of Trump Indiana, Inc. contained in the Offering Circular (the
"Interim Financial Statements" and, together with the Audited Financial
Statements, the "Financial Statements") present fairly the financial position,
results of operations and cash flows of such entities on the basis stated in the
Offering Circular, as of the respective dates and for the respective periods to
which they apply, and have been prepared in accordance with GAAP consistently
applied throughout the periods involved, except as disclosed in the Financial
Statements. The summary historical financial data included in the Offering
Circular have been prepared on a basis consistent with that of the Financial
Statements and present fairly the financial position and results of operations
of the applicable entities, as of the respective dates and for the respective
periods indicated.

     The unaudited pro forma condensed combined financial statements and related
notes, excluding EBITDA and Adjusted EBITDA data, included in the Offering
Circular (i) comply with the requirements of Regulation S-X that would be
applicable if the Offering Circular were a prospectus included in a registration
statement on Form S-1 filed under the Act (the "S-X Requirements") and all other
rules and guidelines of the Commission with respect to pro forma financial
statements, (ii) present fairly the unaudited pro forma condensed combined
financial position and results of operations of the entities described in the
Offering Circular as of the dates and for the periods indicated, after giving
effect to the Transactions, the Acquisition, and the other transactions
described in the Offering Circular, (iii) have been prepared on a basis
consistent with the Financial Statements, except for the pro forma adjustments
specified therein, and (iv) are based on good faith, reasonable estimates and
assumptions of the Company. Except as described in the Offering Circular, the
summary unaudited pro forma financial data included in the Offering Circular has
been derived from such pro forma financial statements and presents fairly the
pro forma consolidated financial position and results operations of the entities
described in the Offering Circular as of the respective dates and for the
respective periods indicated.

     All other financial and statistical data regarding the Issuers and the
Subsidiaries included in the Offering Circular are fairly and accurately
presented. To the knowledge of the Company, (i) PricewaterhouseCoopers LLP, the
accountants who have audited the financial statements of the Issuers and the
Subsidiaries (other than Trump), included as part of the Preliminary Offering
Circular and the Offering Circular and (ii) Ernst & Young LLP, the accountants
who have audited the financial statements of Trump, included as part of the
Preliminary Offering Circular and the Offering Circular, are independent
certified public accountants with respect to the Company and the Subsidiaries
(other than Trump) and Trump, as applicable, under Rule 101 of

                                       16

<PAGE>

the AICPA's code of Professional conduct and its interpretations and rulings,
during the periods covered by the financial statements on which they reported
included in the Offering Circular.

     To the knowledge of the Company (i) at October 31, 2005, there was no
material (x) change in the capital stock, (y) increase in long-term debt or (z)
decrease in consolidated net current assets or stockholders' equity of the
Company, on a consolidated basis, as compared with amounts shown in the
September 30, 2005, unaudited consolidated balance sheet included in the
Offering Circular, or (ii) for the period from September 30, 2005 to October 31,
2005, there was no material decrease, as compared to the corresponding period in
the preceding year, in consolidated net sales or in the total amounts of income
before extraordinary items or of net income, except in all instances for
changes, increases or decreases that the Offering Circular discloses have
occurred or may occur.

     No financial statements as of any date or for any period subsequent to
October 31, 2005, are available. However, to the Company's knowledge, (i) at
December 16, 2005, there was no material (x) change in the capital stock (y)
increase in long-term debt or (z) material decrease in consolidated net current
assets or stockholders' equity of the Company, on a consolidated basis, as
compared with amounts shown in the September 30, 2005, unaudited consolidated
balance sheet included in the Offering Circular, or (ii) for the period from
October 31, 2005 to December 16, 2005, there was no material decrease, as
compared to the corresponding period in the preceding year, in consolidated net
sales or in the total amounts of income before extraordinary items or of net
income, except in all instances for changes, increases or decreases that the
Offering Circular discloses have occurred or may occur.

     (aa) No Material Adverse Change. Subsequent to the respective dates as of
which information is given in the Offering Circular, except as adequately
disclosed in the Offering Circular, and except for the Acquisition and the
Transactions (i) neither of the Issuers nor any of the Subsidiary Guarantors has
incurred any liabilities, direct or contingent, that are material, singly or in
the aggregate, to any of them, or has entered into any material transactions not
in the ordinary course of business, (ii) there has not been any material
decrease in the capital stock or membership interests, as the case may be, or
any material increase in long-term indebtedness or any material increase in
short-term indebtedness of any of the Issuers or the Subsidiary Guarantors, or
any payment of or declaration to pay any dividends or any other distribution
with respect to any of the Issuers or the Subsidiary Guarantors, and (iii) there
has not been any material adverse change in the properties, business,
operations, earnings, assets, liabilities or condition (financial or otherwise)
of the Issuers and the Subsidiary Guarantors taken as a whole (each of clauses
(i), (ii) and (iii), a "Material Adverse Change"). Except as disclosed in the
Offering Circular, to the knowledge of the Issuers and the Subsidiary
Guarantors, there is no event that has occurred or that is reasonably likely to
occur which, if it were to occur, could reasonably be expected to, singly or in
the aggregate, have a Material Adverse Effect or result in a Material Adverse
Change.

     (bb) Ratings. No "nationally recognized statistical rating organization" as
such term is defined for purposes of Rule 436(g)(2) under the Act (i) has
imposed (or has informed either of the Issuers or any Subsidiary Guarantor that
it is considering imposing) any condition (financial or otherwise) on the
Issuers' or any Subsidiary Guarantor's retaining any rating assigned to any
securities of either of the Issuers or any Subsidiary Guarantor, or (ii) has
indicated to either of the

                                       17

<PAGE>

Issuers or any Subsidiary Guarantor that it is considering (A) the downgrading,
suspension, or withdrawal of, or any review for a possible change that does not
indicate the direction of the possible change in, any rating so assigned, or (B)
any change in the outlook for any rating of any securities of either of the
Issuers or any Subsidiary Guarantor.

     (cc) Solvency. Each of the Issuers and each Subsidiary Guarantor is
incurring its respective indebtedness under the Series A Notes and the
Guarantees for proper purposes and in good faith. Immediately before and after
giving effect to the issuance of the Series A Notes, (i) the assets of the
Issuers and their subsidiaries (including the Subsidiary Guarantors), considered
as a whole and as a going concern, at a fair valuation, will exceed the sum of
their debts, taken as a whole; (ii) the present fair salable value of the assets
of the Issuers and their subsidiaries (including the Subsidiary Guarantors),
considered as a whole and as a going concern, will exceed the amount required to
pay their liability on their debts, taken as a whole; (iii) each of the Issuers
will have adequate capital with which to conduct their respective present and
anticipated businesses; and (iv) neither the Issuers nor any Subsidiary
Guarantor will intend to incur or believe or reasonably should believe that it
will incur debts beyond its ability to pay as those debts become due. Neither
Issuer is aware of any reason why it would be inappropriate to consider, for
purposes of clauses (i) and (ii) above, the Issuers and the Subsidiaries as a
going concern. For purposes of this paragraph, "debts" includes contingent and
unliquidated debts.

     (dd) No Solicitation. Neither of the Issuers nor any of their affiliates
nor anyone acting on their behalf has (i) taken, directly or indirectly, any
action designed to cause or to result in, or that has constituted or which might
reasonably be expected to constitute, the stabilization or manipulation of the
price of the Notes or to facilitate the sale or resale of any of the Notes, (ii)
sold, bid for, purchased, or paid anyone any compensation for soliciting
purchases of, any of the Notes, or (iii) paid or agreed to pay to any person any
compensation for soliciting another to purchase any other securities of either
of the Issuers.

     (ee) No Registration of Notes. Without limiting any provision herein, no
registration under the Act, and no qualification of the Indenture under the TIA
is required for the sale of the Series A Notes and the Guarantees to the Initial
Purchaser as contemplated hereby or for the Exempt Resales, assuming (i) that
the purchasers in the Exempt Resales are QIBs, Accredited Investors or non-U.S.
persons (as defined under Regulation S under the Act), (ii) the accuracy of the
Initial Purchaser's representations contained in Section 7, and (iii) the
accuracy of the representations made by each Accredited Investor who purchases
the Series A Notes pursuant to an Exempt Resale as set forth in the letter of
representation in the form of Annex A to the Offering Circular. No form of
general solicitation or general advertising (including, without limitation, as
such terms are used in Regulation D under the Act) was used by either of the
Issuers or any of their respective affiliates or any of their respective
representatives in connection with the offer and sale of any of the Series A
Notes or in connection with Exempt Resales. No securities of the same class as
the Series A Notes have been offered, issued or sold by either of the Issuers or
any of their respective affiliates within the six-month period immediately prior
to the date hereof.

     (ff) ERISA. The Issuers have disclosed to the Initial Purchaser each
employee benefit plan maintained by the Issuers and their Affiliates which is a
"plan" within the meaning of Section 4975(e)(i) of the Internal Revenue Code of
1986, as amended, or the regulations

                                       18

<PAGE>

promulgated thereunder (the "Code"). No condition exists or event or transaction
has occurred in connection with any employee benefit plan that could result in
either of the Issuers or any such "Affiliate" incurring any liability, fine or
penalty that could, singly or in the aggregate, have a Material Adverse Effect.
Neither of the Issuers nor any Affiliate maintains any employee pension benefit
plan that is subject to Title IV of the Employee Retirement Income Security Act
of 1974, as amended, or the rules and regulations promulgated thereunder
("ERISA"). The terms "employee benefit plan" and "employee pension benefit plan"
shall have the meanings assigned to such terms in Section 3 of ERISA. The term
"Affiliate" shall have the meaning assigned to such term in Section 407(d)(7) of
ERISA.

     (gg) Investment Company Act and Other Federal Regulations. None of the
Issuers nor any of the Subsidiaries has taken, and none of them will take, any
action that may cause this Agreement or the issuance of the Series A Notes to,
and none of the Transactions will, violate or result in a violation of Section 7
of the Exchange Act (including, without limitation, Regulation T (12 C.F.R. Part
220), Regulation U (12 C.F.R. Part 221) or Regulation X (12 C.F.R. Part 224) of
the Board of Governors of the Federal Reserve System). Neither of the Issuers or
any of the Subsidiaries is subject to regulation, or shall become subject to
regulation upon the consummation of the Offering and sale of the Series A Notes
and the application of the net proceeds thereof as described in the Offering
Circular, or the consummation of any of the other Transactions, under the
Investment Company Act of 1940, as amended, and the rules and regulations and
interpretations promulgated thereunder, or under any other Federal or state
statute or regulation limiting its ability to incur or assume indebtedness for
borrowed money.

     (hh) No Brokers. Neither of the Issuers nor any of the Subsidiary
Guarantors has dealt with any broker, finder, commission agent or other person
(other than the Initial Purchaser) in connection with the Transactions that has
resulted in either of the Issuers or any of the Subsidiary Guarantors having any
obligation to pay any broker's fee or commission in connection with the
Transactions (other than commissions and fees to the Initial Purchaser as set
forth in the Offering Circular).

     (ii) No Labor Disputes. To our knowledge, neither of the Issuers nor any of
the Subsidiaries is engaged in any unfair labor practice. Except as would not,
singly or in the aggregate, have a Material Adverse Effect, there are (i) no
unfair labor practice complaints or other proceedings pending or, to the
knowledge of the Issuers and the Subsidiary Guarantors, threatened against
either of the Issuers or any of the Subsidiaries before the National Labor
Relations Board or any state, local or foreign labor relations board or any
industrial tribunal, and no grievances or arbitration proceedings arising out of
or under any collective bargaining agreement are so pending or, to the knowledge
of the Issuers and the Subsidiary Guarantors, threatened, (ii) no strikes, labor
disputes, slowdowns or stoppages pending or, to the knowledge of the Issuers and
the Subsidiary Guarantors, threatened against either of the Issuers or any of
the Subsidiaries, (iii) no union representation questions existing with respect
to the employees of either of the Issuers or any of the Subsidiaries, and, to
the knowledge of the Issuers and the Subsidiary Guarantors, no union organizing
activities taking place, (iv) to the knowledge of the Company, there is no
threatened or pending liability against the Company, or any of its Subsidiaries
pursuant to the Worker Adjustment Retraining and Notification Act of 1988, as
amended ("WARN"), or any similar state or local law concerning a mass layoff
that, individually or in the aggregate, would reasonably be expected to have a
Material Adverse Effect and (v) no

                                       19

<PAGE>

term or condition of employment exists through arbitration awards, settlement
agreements, or side agreement that is contrary to the express terms of any
applicable collective bargaining agreement other than such term or condition
that, individually or in the aggregate, would not reasonably be expected to have
a Material Adverse Effect.

     (jj) Environmental Laws. Except as disclosed in the Offering Circular, or
as otherwise would not, singularly or in the aggregate, have a Material Adverse
Effect or otherwise require disclosure in the Offering Circular, (i) neither of
the Issuers nor any of the Subsidiaries has been or is in violation of any
federal, state or local laws and regulations relating to pollution or protection
of human health or the environment, including, without limitation, laws and
regulations relating to emissions, discharges, releases or threatened releases
of toxic or hazardous substances, materials or wastes, or petroleum and
petroleum products ("Materials of Environmental Concern"), or otherwise relating
to the protection of human health and safety, or the use, treatment, storage,
disposal, transport or handling of Materials of Environmental Concern
(collectively, "Environmental Laws"), which violation includes, but is not
limited to, noncompliance with, or lack of, any permits or other environmental
authorizations; (ii) there are no circumstances, either past, present or that
are reasonably foreseeable, that may lead to any such violation in the future;
(iii) neither of the Issuers nor any of the Subsidiaries has received any
communication (written or oral), whether from a Governmental Authority or
otherwise, alleging any such violation; (iv) there is no pending or threatened
claim, action, investigation, notice (written or oral) or other Proceeding by
any person or entity alleging potential liability of either of the Issuers or
any of the Subsidiaries (or against any person or entity for whose acts or
omissions the Issuers or any of the Subsidiaries is or may reasonably be
expected to be liable, either contractually or by operation of law) for
investigatory, cleanup, or other response costs, or natural resources or
property damages, or personal injuries, attorney's fees or penalties relating to
(A) the presence, or release into the environment, of any Materials of
Environmental Concern at any location, or (B) circumstances forming the basis of
any violation or potential violation, of any Environmental Law (collectively,
"Environmental Claims"); and (v) there are no past or present actions,
activities, circumstances, conditions, events or incidents that could reasonably
form the basis of any Environmental Claim.

     Each of the Issuers and the Subsidiaries, as appropriate, (i) have
conducted a review of the effect of Environmental Laws on the business,
operations and properties of each of the Issuers and the Subsidiaries, in the
course of which, or as a result of which, the Issuers have identified and
evaluated associated costs and liabilities (including, without limitation, any
capital or operating expenditures required for cleanup, closure of properties or
compliance with Environmental Laws or any permit, license or approval, any
related constraints on operating activities, and any potential liabilities to
third parties); and (ii) have conducted environmental investigations of, and
have reviewed reasonably available information regarding, the business,
properties and operations of each of the Issuers and the Subsidiaries, and of
other properties within the vicinity of their business, properties and
operations, as appropriate for the circumstances of each such property and
operation; on the basis of such reviews, investigations and inquiries, the
Issuers have reasonably concluded that any costs and liabilities associated with
such matters would not have, singularly or in the aggregate, a Material Adverse
Effect or otherwise require disclosure in the Offering Circular.

                                       20

<PAGE>

     (kk) Representations and Warranties. Each certificate signed by any officer
of any of the Majestic Entities and delivered to the Initial Purchaser or
counsel for the Initial Purchaser in connection with the Transactions shall be
deemed to be a representation and warranty by such Majestic Entities to the
Initial Purchaser as to the matters covered thereby.

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

     (mm) Authorization of Guarantees of Series B Notes. The Guarantee to be
endorsed on the Series B Notes by each Subsidiary Guarantor has been duly
authorized by each such Subsidiary Guarantor (other than Trump) and effective
upon the consummation of the Acquisition, will be duly authorized by Trump and,
when the Series B Notes are issued, will have been validly executed and
delivered by each such Subsidiary Guarantor in accordance with the terms of the
Indenture, the Registration Rights Agreement and the Registered Exchange Offer.
When the Series B Notes have been issued, executed and authenticated in
accordance with the terms of the Registered Exchange Offer and the Indenture,
the Guarantee of each Subsidiary Guarantor endorsed on the Series B Notes will
be the legal, valid and binding obligation of each such Subsidiary Guarantor,
enforceable against each such Subsidiary Guarantor in accordance with its terms,
except to the extent that (i) such enforceability may be limited by applicable
bankruptcy, insolvency or similar laws affecting creditors' rights generally and
(ii) any rights of acceleration and the availability of equitable remedies may
be subject to general principles of equity (whether considered in a proceeding
in equity or at law). The Guarantees to be endorsed on the Series B Notes will
rank on a parity with all senior Indebtedness of the Subsidiary Guarantors that
is outstanding on the date hereof or that may be incurred hereafter and senior
to all other Indebtedness of the Subsidiary Guarantors that is outstanding on
the date hereof or that may be incurred hereafter; provided, that pursuant to
the Amended Intercreditor Agreement, the Lien on the Collateral securing the
Amended Credit Facility will be senior to the Lien on the Collateral securing
the Notes and the Guarantees.

                                       21

<PAGE>

     (nn) Authorization of Security Documents. Each of the Security Documents
and the transactions contemplated thereby (including, without limitation, the
creation, grant, recording and perfection of the Security Interests, the
execution and filing of financing statements and the payment of any fees and
taxes in connection therewith) have been duly authorized by each Majestic Entity
party thereto (other than Trump) and, effective upon the consummation of the
Acquisition, will be duly authorized by Trump and, on the Closing Date, each of
the Security Documents will have been validly executed and delivered by, and
will be the legal, valid and binding obligation of, each of the Majestic
Entities party thereto, enforceable against each of the Majestic Entities party
thereto in accordance with its terms, except that (i) such enforceability may be
limited by applicable bankruptcy, insolvency or similar laws affecting
creditors' rights generally and (ii) any rights of acceleration and the
availability of equitable remedies may be subject to general principles of
equity (whether considered in a proceeding in equity or at law).

     (oo) Security Interests.

          (a)  The Security Interests granted by the Company and the Subsidiary
               Guarantors (other than the New Subsidiary Guarantors) under the
               Security Agreement (as supplemented by the Pledge Supplement)
               will secure the Notes and the Guarantees, respectively, and all
               other Obligations related thereto upon issuance and sale thereof,
               and it is not necessary to make any new filings or take any other
               action to perfect, or to maintain the perfection, of such
               Security Interests.

          (b)  Upon:

               (i)  execution and delivery of the Security Documents (as
                    supplemented by the Pledge Joinder) by the New Subsidiary
                    Guarantors and the Trustee and compliance by the New
                    Subsidiary Guarantors with their respective obligations
                    thereunder; and

               (ii) (A)  the filing or recording of such Security Documents or
                         appropriate financing statements with the appropriate
                         filing records, registry, or other public office,
                         together with the payment of the requisite filing or
                         recordation fees related thereto, and

                    (B)  in the case of motor vehicles, upon the recordation or
                         notation of the Trustee's security interest on the
                         certificates of title or ownership in respect of such
                         motor vehicles and the filing of the Uniform Commercial
                         Code financing statements delivered by the New
                         Subsidiary Guarantors having an interest in such motor
                         vehicles to the Trustee with respect to such motor
                         vehicles,

                    the Security Interest of the Trustee in the Collateral in
                    which the New Subsidiary Guarantors have any right, title or
                    interest will be a valid and enforceable perfected security
                    interest, which Security

                                       22

<PAGE>

                    Interest will be superior to and prior to the rights of all
                    third persons other than holders of Permitted Liens.

          (c)  As of the Closing Date, except with respect to Permitted Liens,
               to the knowledge of the Company, there will be no currently
               effective financing statement, security agreement, chattel
               mortgage, real estate mortgage or other document filed or
               recorded with any filing records, registry, or other public
               office, that purports to cover, affect or give notice of any
               present or possible future Lien on, or security interest in, any
               assets or property of the Company or the Subsidiary Guarantors or
               any rights thereunder.

     (pp) 144A Eligibility. Other than the Existing Senior Secured Notes (as
defined in the Offering Circular), there are no securities of any Issuer or
Guarantor registered under the Exchange Act or listed on a national securities
exchange registered under Section 6 of the Exchange Act or quoted in a United
States automated inter-dealer quotation system.

     7. Representations and Warranties of the Initial Purchaser. As of the date
hereof, the Initial Purchaser, represents and warrants to the Issuers and the
Subsidiary Guarantors that:

     (a) QIB or Accredited Investor. It is a QIB, with such knowledge and
experience in financial and business matters as is necessary in order to
evaluate the merits and risks of an investment in the Series A Notes, and it
will offer the Series A Notes for resale only upon the terms and conditions set
forth in this agreement and the Offering Circular.

     (b) Eligible Purchasers. It (i) is not acquiring the Series A Notes with a
view to any distribution thereof or with any present intention of offering or
selling any of the Series A Notes in a transaction that would violate the Act or
the securities laws of any state of the United States or any other applicable
jurisdiction, and (ii) will be soliciting offers for the Series A Notes only
from, and will be reoffering and reselling the Series A Notes only to, (A)
persons in the United States whom it reasonably believes to be (x) QIBs in
reliance on the exemption from the registration requirements of the Act provided
by Rule 144A under the Act, or (y) Accredited Investors that execute and deliver
to each of the Issuers and the Initial Purchaser a letter containing certain
representations and agreements in the form attached as Annex A to the Offering
Circular or (B) non-U.S. persons reasonably believed by the Initial Purchaser to
be a purchaser referred to in Regulation S under the Act; provided, however,
that in purchasing such Notes, such persons are deemed to have represented and
agreed as provided under the caption "Notice to Investors" contained in the
Offering Circular.

     (c) No General Solicitation. No form of general solicitation or general
advertising in violation of the Act has been or will be used by the Initial
Purchaser or any of its representatives in connection with the offer and sale of
any of the Series A Notes pursuant hereto, including but not limited to,
articles, notices or other communications published in any newspaper, magazine
or similar medium or broadcast over television or radio, or any seminar or
meeting whose attendees have been invited by any general solicitation or general
advertising.

     (d) Power and Authority. It has all requisite power and authority to enter
into, deliver and perform its obligations under this Agreement and the
Registration Rights Agreement and

                                       23

<PAGE>

each of this Agreement and the Registration Rights Agreement has been duly and
validly authorized by it.

     8. Indemnification. (a) Indemnification of Initial Purchaser. Each of the
Issuers and the Subsidiary Guarantors shall, jointly and severally, without
limitation as to time, indemnify and hold harmless the Initial Purchaser and
each person, if any, who controls (within the meaning of Section 15 of the Act
or Section 20(a) of the Exchange Act) the Initial Purchaser (any of such persons
being hereinafter referred to as a "Controlling Person"), and the respective
officers, directors, partners, employees, representatives and agents of the
Initial Purchaser and any such Controlling Person (collectively, the "Purchaser
Indemnified Parties"), to the fullest extent lawful, from and against any and
all losses, claims, damages, liabilities, costs (including, without limitation,
costs of preparation and reasonable attorneys' fees) and expenses including,
without limitation, costs and expenses incurred in connection with
investigating, preparing, pursuing or defending against any of the foregoing
(collectively, "Losses"), as incurred, directly or indirectly caused by, related
to, based upon, arising out of or in connection with (i) any untrue statement or
alleged untrue statement of a material fact contained in the Preliminary
Offering Circular or the Offering Circular (or any amendment or supplement
thereto) or (ii) any omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading;
provided, that neither of the Issuers nor any Subsidiary Guarantor shall be
liable under the indemnity provided in this Section 8(a) to any Purchaser
Indemnified Party for any Losses that (A) result solely from an untrue statement
of a material fact contained in, or the omission of a material fact from, any
Preliminary Offering Circular, which untrue statement or omission was corrected
in the Offering Circular (as then amended or supplemented) if it shall have been
determined by a court of competent jurisdiction by final and nonappealable
judgment that (1) such Purchaser Indemnified Party sold the Notes to the person
alleging such Loss and failed to send or give, at or prior to the written
confirmation of such sale, a copy of the Offering Circular (as then amended or
supplemented), if required by law to have so delivered it, and (2) the Issuers
had previously furnished copies of the corrected Offering Circular to such
Purchaser Indemnified Party within a reasonable amount of time prior to such
sale or such confirmation, and (3) the corrected Offering Circular, if
delivered, would have been a complete defense against the person asserting such
Loss; or (B) are based on an untrue statement or omission or alleged untrue
statement or omission made in reliance on and in conformity with the Furnished
Information. The parties hereto agree that the only information furnished in
writing to the Issuers by the Initial Purchaser specifically for inclusion in
the Preliminary Offering Circular or the Offering Circular is the Furnished
Information. The Issuers shall notify the Initial Purchaser promptly of the
institution, threat or assertion of any Proceeding of which either of the
Issuers or any Subsidiary is aware in connection with the matters addressed by
this Agreement which involves either of the Issuers, any of the Subsidiaries or
any of the Purchaser Indemnified Parties.

     (b) Actions Against Parties; Notification. If any Proceeding shall be
brought or asserted against any person entitled to indemnification hereunder (an
"Indemnified Party"), such Indemnified Party shall give prompt written notice to
the party or parties from which such indemnification is sought (the
"Indemnifying Parties") in writing; provided, that the failure to so notify the
Indemnifying Parties shall not relieve the Indemnifying Parties from any
obligation or liability except to the extent (but only to the extent) that it
shall be finally determined by a court

                                       24

<PAGE>

of competent jurisdiction (which determination is not subject to appeal) that
the Indemnifying Parties have been prejudiced materially by such failure.

     (c) Actions Against Parties; Procedure and Conditions. The Indemnifying
Parties shall have the right, exercisable by giving written notice to an
Indemnified Party, within 20 Business Days after receipt of written notice from
such Indemnified Party of such Proceeding, to assume, at their expense, the
defense of any such Proceeding; provided, that an Indemnified Party shall have
the right to employ separate counsel in any such Proceeding and to participate
in the defense thereof, but the fees and expenses of such counsel shall be at
the expense of such Indemnified Party or parties unless: (i) the Indemnifying
Parties have agreed to pay such fees and expenses; (ii) the Indemnifying Parties
shall have failed promptly to assume the defense of such Proceeding or shall
have failed to employ counsel reasonably satisfactory to such Indemnified Party;
or (iii) the named parties to any such Proceeding (including any impleaded
parties) include both such Indemnified Party and one or more Indemnifying
Parties (or any affiliates or controlling persons of any of the Indemnifying
Parties), and such Indemnified Party shall have been advised by counsel that
there may be one or more defenses available to such Indemnified Party that are
in addition to, or in conflict with, those defenses available to the
indemnifying party or such affiliate or controlling person (in which case, if
such Indemnified Party notifies the Indemnifying Parties in writing that it
elects to employ separate counsel at the expense of the Indemnifying Parties,
the Indemnifying Parties shall not have the right to assume the defense thereof
and the reasonable fees and expenses of such counsel shall be at the expense of
the Indemnifying Parties; it being understood, however, that, the Indemnifying
Parties shall not, in connection with any one such Proceeding or separate but
substantially similar or related Proceedings in the same jurisdiction, arising
out of the same general allegations or circumstances, be liable for the fees and
expenses of more than one separate firm of attorneys (together with appropriate
local counsel) at any time for such Indemnified Party).

     No Indemnifying Party shall, without the prior written consent of the
Indemnified Party, consent to entry of any judgment in or enter into any
settlement of any pending or threatened Proceeding in respect of which
indemnification or contribution may be sought hereunder (whether or not any
Indemnified Party is a party thereto) unless such judgment or settlement
includes, as an unconditional term thereof, the giving by the claimant or
plaintiff to each Indemnified Party of a release, in form and substance
satisfactory to the Indemnified Party, from all Losses that may arise from such
Proceeding or the subject matter thereof (whether or not any Indemnified Party
is a party thereto).

     (d) Indemnification of the Issuers and the Subsidiary Guarantors. The
Initial Purchaser agrees to indemnify and hold harmless each of the Issuers and
the Subsidiary Guarantors and each of their controlling persons and their
respective members, managers, officers, directors, partners, employees and
representatives to the same extent as the foregoing indemnity from the Issuers
and the Subsidiary Guarantors to each of the Purchaser Indemnified Parties
stated in Section 8(a), but only with respect to Losses that are caused by an
untrue statement or omission or alleged untrue statement or omission made in
reliance on and in conformity with the Furnished Information. The parties hereto
agree that the only information furnished in writing to the Issuers by the
Initial Purchaser specifically for inclusion in the Preliminary Offering
Circular or the Offering Circular is the Furnished Information. Notwithstanding
the foregoing, any liability of the Initial Purchaser hereunder shall be limited
to

                                       25

<PAGE>

an amount not to exceed the total discounts, commissions and other compensation
received by the Initial Purchaser under this Agreement, less the aggregate
amount of any damages that the Initial Purchaser has otherwise been required to
pay by reason of the untrue or alleged untrue statements or the omissions or
alleged omissions to state a material fact (the "Aggregate Discount").

     (e) Contribution. If the indemnification provided for in this Section 8 is
unavailable to an Indemnified Party or is insufficient to hold such Indemnified
Party harmless for any Losses in respect of which this Section 8 would otherwise
apply by its terms (other than by reason of exceptions provided in this Section
8), then each Indemnifying Party, in lieu of indemnifying such Indemnified
Party, shall contribute to the amount paid or payable by such Indemnified Party
as a result of such Losses (i) in such proportion as is appropriate to reflect
the relative benefits received by the Issuers and the Subsidiaries, on the one
hand, and the Initial Purchaser, on the other hand, from the Offering or (ii) if
the allocation provided by clause (i) above is not permitted by applicable law,
in such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) above but also the relative fault of the Issuers and
the Subsidiaries, on the one hand, and the Initial Purchaser, on the other hand,
in connection with the actions, statements or omissions that resulted in such
Losses, as well as any other relevant equitable considerations. The relative
benefits received by the Issuers and the Subsidiaries, on the one hand, and the
Initial Purchaser, on the other hand, shall be deemed to be in the same
proportion as the total net proceeds from the Offering (before deducting
expenses) received by the Issuers, on the one hand, and the total discounts and
commissions received by the Initial Purchaser, on the other hand, bear to the
total price of the Series A Notes in Exempt Resales as set forth on the cover
page of the Offering Circular. The relative fault of the Issuers and the
Subsidiaries, on the one hand, and the Initial Purchaser, on the other hand,
shall be determined by reference to, among other things, whether any untrue or
alleged untrue statement of a material fact or omission or alleged omission to
state a material fact relates to information supplied by the Issuers or any
Subsidiary, on the one hand, or the Initial Purchaser, on the other hand, and
the parties' relative intent, knowledge, access to information and opportunity
to correct or prevent such statement or omission. The amount paid or payable by
an Indemnified Party as a result of any Losses shall be deemed to include any
legal or other fees or expenses incurred by such party in connection with any
Proceeding, to the extent such party would have been indemnified for such fees
or expenses if the indemnification provided for in this Section 8 was available
to such party.

     Each party hereto agrees that it would not be just and equitable if
contribution pursuant to this Section 8(e) were determined by pro rata
allocation or by any other method of allocation that does not take account of
the equitable considerations referred to in the immediately preceding paragraph.
Notwithstanding the provisions of this Section 8(e), the Initial Purchaser shall
not be required to contribute, in the aggregate, any amount in excess of the
Aggregate Discount. No person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation.

     (f) Nonexclusive Remedy. The indemnity and contribution agreements
contained in this Section 8 are in addition to any liability that any of the
Issuers, the Subsidiary Guarantors or

                                       26

<PAGE>

the Initial Purchaser may otherwise have to the Indemnified Parties, and does
not limit in any way rights or remedies which may otherwise be available at law
or in equity.

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

          (i) Representations and Warranties of the Issuers and the Subsidiary
     Guarantors. All the representations and warranties of each of the Issuers
     and the Subsidiary Guarantors in this Agreement shall be true and correct
     in all material respects (other than representations and warranties with a
     Material Adverse Effect qualifier or other materiality qualifier, which
     shall be true and correct as written) at and as of the Closing Date after
     giving effect to the Transactions with the same force and effect as if made
     on and as of such date. On or prior to the Closing Date, each of the
     Issuers and the Subsidiary Guarantors shall have performed or complied in
     all material respects with all of the agreements and satisfied in all
     material respects all conditions on their respective parts to be performed,
     complied with or satisfied on or prior to the Closing Date pursuant to this
     Agreement.

          (ii) Availability of Offering Circular. The Offering Circular shall
     have been printed and copies made available to the Initial Purchaser not
     later than [12:00 noon], New York City time, on the first Business Day
     following the date of this Agreement or at such later date and time as the
     Initial Purchaser may approve.

          (iii) No Injunction. No injunction, restraining order or order of any
     nature by a Governmental Authority shall have been issued as of the Closing
     Date that would prevent or interfere with the issuance and sale of the
     Series A Notes or the consummation of any of the other transactions
     contemplated by the Documents; and no stop order suspending the
     qualification or exemption from qualification of any of the Series A Notes
     in any jurisdiction shall have been issued and no Proceeding for that
     purpose shall have been commenced or be pending or contemplated.

          (iv) No Proceedings. No action shall have been taken and no Applicable
     Law shall have been enacted, adopted or issued that would, as of the
     Closing Date, prevent the issuance and sale of the Series A Notes or the
     consummation of any of the other Transactions. No Proceeding shall be
     pending or threatened other than Proceedings that (A) if adversely
     determined would not, singly or in the aggregate, adversely affect the
     issuance or marketability of the Series A Notes, and (B) would not, singly
     or in the aggregate, have a Material Adverse Effect.

          (v) No Material Adverse Change. Since the date as of which information
     is given in the Offering Circular (without giving effect to any amendment
     thereto or supplement thereto), there shall not have been any Material
     Adverse Change the effect of which, in the sole judgment of the Initial
     Purchaser, makes it impractical or inadvisable to proceed with the
     completion of the Offering or the purchase and sale of the Notes.

                                       27

<PAGE>

          (vi) PORTAL. The Notes shall have (A) been designated PORTAL
     securities in accordance with the rules and regulations adopted by the NASD
     relating to trading in the PORTAL market, and (B) received a rating of
     "BB-" and "B2" from Standard & Poor's Corporation and Moody's Investors
     Services, Inc., respectively.

          (vii) Maintenance of Rating. As of the Closing Date, (i) there shall
     not have occurred any downgrading, suspension or withdrawal of, nor shall
     any notice have been given of any potential or intended downgrading,
     suspension or withdrawal of, or of any review (or of any potential or
     intended review) for a possible change that does not indicate the direction
     of the possible change in, any rating of any securities of either of the
     Issuers (including, without limitation, the placing of any of the foregoing
     ratings on credit watch with negative or developing implications or under
     review with an uncertain direction) by any "nationally recognized
     statistical rating organization" as such term is defined for purposes of
     Rule 436(g)(2) under the Act, (ii) there shall not have occurred any
     change, nor shall any notice have been given of any potential or intended
     change, in the outlook for any rating of any securities of either of the
     Issuers by any such rating organization and (iii) no such rating
     organization shall have given notice that it has assigned (or is
     considering assigning) a lower rating to the Notes than that on which the
     Notes were marketed.

          (viii) Officers', Secretary's and Solvency Certificates. The Initial
     Purchaser shall have received on the Closing Date (A) certificates dated
     the Closing Date, signed by (1) the President and Chief Executive Officer,
     and (2) the principal financial or accounting officer of each of the
     Issuers and Subsidiary Guarantors, on behalf of such Issuer or Subsidiary
     Guarantor, confirming the matters set forth in paragraphs (i), (iii), (iv),
     (v), (vii) and (xii) of this Section 9(a), (B) a certificate, dated the
     Closing Date, signed by the principal financial or accounting officer of
     the Company, on behalf of the Issuers and the Subsidiary Guarantors,
     stating that certain data identified by the Initial Purchaser and included
     in the Offering Circular has been reviewed by such persons and, to the best
     knowledge of such persons, subject to the risks and limitations described
     in the Preliminary Offering Circular and the Offering Circular, is true and
     accurate in all material respects and is based on or derived from sources
     which the Company believes to be reliable and accurate, which certificate
     shall be in form and substance satisfactory to counsel for the Initial
     Purchaser, (C) a certificate, dated the Closing Date, signed by the
     Secretary of each of the Issuers and Subsidiary Guarantors, certifying such
     matters as the Initial Purchaser may reasonably request, and (D) a
     certificate of solvency, dated the Closing Date, signed by the principal
     financial or accounting officer of the Majestic Entities substantially in
     the form previously approved by the Initial Purchaser.

          (ix) Opinions of Counsel. The Initial Purchaser shall have received, a
     favorable opinion (in form and substance satisfactory to the Initial
     Purchaser and counsel to the Initial Purchaser), dated the Closing Date, of
     each of the following: (A) Dykema Gossett PLLC, special counsel to the
     Issuers and Subsidiary Guarantors; (B) Watkins Ludlam Winter & Stennis,
     P.A., special Mississippi counsel to the Issuers and Subsidiary Guarantors;
     (C) Robinson Waters & O'Dorisio and Roger M. Morris LLC, special Colorado
     counsel to the Issuers and Subsidiary Guarantors; (D) Terriberry, Carroll &
     Yancey, L.L.P., special Mississippi vessel counsel to the Issuers and
     Subsidiary

                                       28

<PAGE>

     Guarantors; (E) Ice Miller, special Indiana counsel to the Issuers and
     Subsidiary Guarantors; (F) Ice Miller, special Indiana vessel counsel to
     the Issuers and Subsidiary Guarantors and (G) Mayer, Brown, Rowe & Maw LLP,
     special counsel to the Initial Purchaser.

          (x) Accountants' Comfort Letters.

               (A) The Initial Purchaser shall have received from
          Pricewaterhouse Coopers, LLP, independent auditors, with respect to
          the Issuers and the Subsidiaries (other than Trump), (1) a customary
          comfort letter, dated the date of the Offering Circular, in form and
          substance reasonably satisfactory to the Initial Purchaser and its
          counsel, with respect to the financial statements and certain
          financial information of the Issuers and the Subsidiaries contained in
          the Offering Circular (the "Pricewaterhouse Comfort Letter"), and (2)
          a customary comfort letter, dated the Closing Date, in form and
          substance reasonably satisfactory to the Initial Purchaser and its
          counsel, to the effect that Pricewaterhouse Coopers, LLP reaffirms the
          statements made in the Pricewaterhouse Comfort Letter.

               (B) The Initial Purchaser shall have received from Ernst & Young,
          LLP, independent auditors, with respect to the Trump, (1) a customary
          comfort letter, dated the date of the Offering Circular, in form and
          substance reasonably satisfactory to the Initial Purchaser and its
          counsel, with respect to the financial statements and certain
          financial information of Trump contained in the Offering Circular (the
          "E&Y Comfort Letter"), and (2) a customary comfort letter, dated the
          Closing Date, in form and substance reasonably satisfactory to the
          Initial Purchaser and its counsel, to the effect that Ernst & Young,
          LLP reaffirms the statements made in the E&Y Comfort Letter.

          (xi) Execution, Delivery and Content of Documents. The Documents shall
     have been executed and delivered by all parties thereto and the Initial
     Purchaser shall have received a fully executed original of each Document
     and all opinions, certificates and other documents required by the
     Documents. The terms of each Document shall conform in all material
     respects to the description thereof in the Offering Circular to the extent
     described therein.

          (xii) Consummation of Transactions. Each of the Transactions shall
     have been consummated on terms that conform in all material respects to the
     description thereof in the Offering Circular.

          (xiii) Issuance of Senior Notes and Discount Notes. The Senior Notes
     and Discount Notes shall have been issued on terms that conform in all
     material respects to the descriptions thereof in the Offering Circular.

          (xiv) Permits. All Permits required to be obtained from, and all
     notices or declarations required to be made with, any Gaming Authority or
     other Governmental Authority to permit the issuance and sale of the Series
     A Notes in accordance with the terms of, and in the aggregate principal
     amount set forth in, this Agreement shall have

                                       29

<PAGE>

     been obtained and made, in each case free of any conditions other than
     those set forth in this Agreement; and all Permits (other than the
     Post-Closing Permits) required to be obtained from, and all notices or
     declarations required to be made with, any Gaming Authority or other
     Governmental Authority to consummate the Transactions contemplated by the
     Documents shall have been obtained and made, in each case free of any
     conditions other than those set forth in such Documents.

          (xv) Additional Documents. Counsel to the Initial Purchaser shall have
     been furnished with such documents as they may reasonably require for the
     purpose of enabling them to review or pass upon the matters referred to in
     this Section 9 and in order to evidence the accuracy, completeness and
     satisfaction of the representations, warranties and conditions contained in
     this Agreement.

          (xvi) The Acquisition. The Acquisition shall have been consummated
     concurrently with the Offering pursuant to the terms of the Stock Purchase
     Agreement.

          (xvii) Amended Credit Facility; Amended Intercreditor Agreement and
     Pledge Joinder and Pledge Supplement. Each of the Amended Credit Facility,
     the Amended Intercreditor Agreement, the Pledge Joinder, the Pledge
     Supplement, the First Supplemental Indenture and the Second Supplemental
     Indenture shall have been executed and delivered by all parties thereto,
     and the Initial Purchaser shall have received a fully executed original of
     each such document which, in each case, shall be in form and substance
     reasonably satisfactory to the Initial Purchaser.

          (xviii) Security. The Trustee shall have received (with a copy for the
     Initial Purchaser) on the Closing Date:

               (A) appropriately completed copies of Uniform Commercial Code
          financing statements naming each of The Majestic Star Casino II, Inc.
          (f/k/a Trump Indiana, Inc.), Buffington Harbor Parking Associates,
          LLC, Buffington Harbor Riverboats, L.L.C. and Capital II
          (collectively, the "New Subsidiary Guarantors"), as a debtor and the
          Trustee as the secured party, or other similar instruments or
          documents to be filed under the UCC of all jurisdictions as may be
          necessary or, in the reasonable opinion of the Trustee and its
          counsel, desirable to perfect the Security Interests of the Trustee
          pursuant to the Security Agreement;

               (B) proper instruments, if any, to be filed in the U.S. Patent
          and Trademark Office that may be deemed desirable in order to perfect
          the liens granted on trademarks, which liens have been created by the
          Security Documents;

               (C) appropriately completed copies of duly executed payoff
          letters, Uniform Commercial Code Form UCC-3 termination statements, if
          any, necessary to release all Liens (other than Permitted Liens) of
          the New Subsidiary Guarantors in any collateral described in any
          security agreement previously granted by such Persons;

               (D) certified copies of Uniform Commercial Code Requests for
          Information or Copies (Form UCC-11), or a similar search report
          certified by a

                                       30

<PAGE>

          party acceptable to the Trustee, dated a date reasonably near to the
          Closing Date, listing all effective financing statements which name
          any Issuers or any Subsidiary Guarantor (under its present name and
          any previous names) as the debtor, together with copies of such
          financing statements (none of which shall cover any collateral
          described in any Security Document, other than such financing
          statements that evidence Permitted Liens);

               (E) bailee letters and landlord waivers, if any, in form and
          substance reasonably satisfactory to the Initial Purchasers, executed
          by the Issuers or the appropriate Majestic Entities for delivery to
          each of the persons specified in the Security Documents as holding
          Collateral;

               (F) confirmation from the Original Agent (as defined in the
          Amended Intercreditor Agreement) that it has received the original
          stock certificates of Trump Indiana, Inc. and Capital II pledged to
          the Secured Party pursuant to the Security Documents, together with
          undated stock powers or endorsements duly executed in blank in
          connection therewith;

               (G) such other approvals, opinions, or documents as the Trustee
          or the Initial Purchaser may reasonably request in form and substance
          reasonably satisfactory to the Trustee and the Initial Purchaser; and

               (H) the Trustee and its counsel and the Initial Purchaser and its
          counsel shall be satisfied that (i) the Lien granted to the Trustee,
          for the benefit of itself and the Holders is of the priority described
          in the Offering Circular; and (ii) no Lien exists on any of the
          collateral described above other than the Lien created in favor of the
          Trustee, for the benefit of itself and the Holders, pursuant to the
          Security Documents, in each case subject to the Permitted Liens.

          (xix) Filing Statements. All Uniform Commercial Code financing
     statements or other similar financing statements and Uniform Commercial
     Code Form UCC-3 termination statements required pursuant to clauses (A) and
     (C) above (collectively, the "Filing Statements") shall have been delivered
     to CT Corporation System or another similar filing service company
     acceptable to the Trustee (the "Filing Agent"). The Filing Agent shall have
     acknowledged in a writing reasonably satisfactory to the Trustee and its
     counsel (i) the Filing Agent's receipt of all Filing Statements, (ii) that
     the Filing Statements have either been submitted for filing in the
     appropriate filing offices or will be submitted for filing in the
     appropriate offices within ten days following the Closing Date and (iii)
     that the Filing Agent will notify the Trustee and its counsel of the
     results of such submissions within 30 days following the Closing Date.

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

                                       31

<PAGE>

          (i) Payment. The Initial Purchaser shall have delivered payment to the
     Issuers for the Series A Notes pursuant to Sections 2 and 4 of this
     Agreement and shall have complied with all other obligations and agreements
     required to be complied with by it hereunder on or prior to the Closing
     Date.

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

          (iii) No Injunctions. No injunction, restraining order or order of any
     nature by a Governmental Authority shall have been issued as of the Closing
     Date that would prevent or interfere with the issuance and sale of the
     Series A Notes; and no stop order suspending the qualification or exemption
     from qualification of any of the Series A Notes in any jurisdiction shall
     have been issued and no Proceeding for that purpose shall have been
     commenced or be pending or contemplated as of the Closing Date.

     10. Termination. This Agreement shall become effective upon the execution
and delivery of this Agreement by the parties hereto. The Initial Purchaser may
terminate this Agreement at any time prior to the Closing Date by written notice
to the Issuers if any of the following has occurred:

     (a) Material Adverse Effect. Since the date as of which information is
given in the Offering Circular, any Material Adverse Effect or any Material
Adverse Change that would, in the Initial Purchaser's judgment, (i) make it
impracticable or inadvisable to proceed with the Offering or delivery of the
Series A Notes, including the Exempt Resales, on the terms and in the manner
contemplated in the Offering Circular or (ii) materially impair the investment
quality of the Notes.

     (b) Failure to Satisfy Conditions. The failure of the Issuers or any of the
Subsidiary Guarantors to satisfy the conditions contained in Section 9(a) on or
prior to the Closing Date.

     (c) Outbreak of Hostilities. Any attack on or incidences of terrorism
involving the United States, any outbreak or escalation of hostilities directly
or indirectly involving the United States, any military action or commencement
or declaration of war by or directly or indirectly involving the United States,
any declaration of a national emergency, any other calamity, emergency or crisis
directly or indirectly involving the United States, any material adverse change
in economic conditions in or the financial markets of the United States or
elsewhere or any material adverse change or development involving a prospective
change in national or international political, financial or economic conditions,
in each case the effect of which could make it, in the Initial Purchaser's
judgment, impracticable or inadvisable to market or proceed with the offering or
delivery of the Series A Notes on the terms and in the manner contemplated in
the Offering Circular or to enforce contracts for the sale of any of the Series
A Notes.

     (d) Suspension of Trading. The suspension or limitation of trading
generally in securities on the New York Stock Exchange, the American Stock
Exchange or the Nasdaq

                                       32

<PAGE>

National Market or any setting of limitations on prices for securities on any
such exchange or on the Nasdaq National Market.

     (e) Enactment of Adverse Law. The enactment, publication, decree or other
promulgation after the date hereof of any Applicable Law that in the Initial
Purchaser's opinion materially and adversely affects, or could materially and
adversely affect, the properties, business, prospects, result of operations,
earnings, assets, liabilities or condition (financial or otherwise) of either of
the Issuers or any of the Subsidiaries.

     (f) Downgrade of Securities. On or after the date hereof, (i) there shall
not have occurred any downgrading, suspension or withdrawal of, nor shall any
notice have been given of any potential or intended downgrading, suspension or
withdrawal of, or of any review (or of any potential or intended review) for a
possible change that does not indicate the direction of the possible change in,
any rating of the Issuers or any of the Subsidiary Guarantors or any securities
of the Issuers or any of the Subsidiary Guarantors (including, without
limitation, the placing of any of the foregoing ratings on credit watch with
negative or developing implications or under review with an uncertain direction)
by any "nationally recognized statistical rating organization" as such term is
defined for purposes of Rule 436(g)(2) under the Act, (ii) there shall not have
occurred any adverse change, nor shall any notice have been given of any
potential or intended adverse change, in the outlook for any rating of Issuers
or the Subsidiary Guarantors or any securities of Issuers or the Subsidiary
Guarantors (by any such rating organization and (iii) no such rating
organization shall have given notice that it has assigned (or is considering
assigning) a lower rating to the Notes than that on which the Notes were
marketed.

     (g) Banking Moratorium. The declaration of a banking moratorium by any
Governmental Authority; or the taking of any action by any Governmental
Authority after the date hereof in respect of its monetary or fiscal affairs
that in the Initial Purchaser's opinion could have a material adverse effect on
the financial markets in the United States or elsewhere.

     The respective indemnities, contribution and expense reimbursement
provisions and agreements, and representations, warranties and other statements
of the Issuers and the Subsidiary Guarantors and the Initial Purchaser set forth
in or made pursuant to this Agreement shall remain operative and in full force
and effect, and will survive, regardless of (i) any investigation, or statement
as to the results thereof, made by or on behalf of the Initial Purchaser or any
of the Issuers or Subsidiary Guarantors, or any of their respective officers,
directors, members or managers or any of their respective controlling persons,
(ii) acceptance of the Notes, and payment for them hereunder, and (iii) any
termination of this Agreement (including, without limitation, any termination
pursuant to this Section 10). Without limiting the foregoing, notwithstanding
any termination of this Agreement, the Issuers and the Subsidiary Guarantors
shall be and shall remain jointly and severally liable (i) for all expenses that
they have agreed to pay pursuant to Section 5(f), and (ii) pursuant to Section
8.

     11. Miscellaneous. (a) Notices. Notices given pursuant to any provision of
this Agreement shall be addressed as follows: (i) if to any of the Majestic
Entities, to 163 Madison Street, Suite 2000, Detroit, Michigan 48226, facsimile
number (313) 496-8400, Attention: Chief Financial Officer, with a copy to 301
Fremont Street, 12th Floor, Las Vegas, NV 89101, facsimile number (702)
382-5562, Attention: Chief Financial Officer, and an additional copy to

                                       33

<PAGE>

Dykema Gossett PLLC, 400 Renaissance Center, Detroit, Michigan 48243, facsimile
number (313) 568-6915, Attention: Jin-Kyu Koh, Esq. and (ii) if to the Initial
Purchaser, to c/o Jefferies & Company, Inc., 520 Madison Avenue, 12th Floor, New
York, New York 10022, Attention: Lloyd Fellder, Esq., with a copy to Mayer,
Brown, Rowe & Maw LLP, 1675 Broadway, New York, New York 10019, Attention:
Ronald S. Brody, Esq. (provided, that any notice pursuant to Section 8 will be
mailed, delivered, telegraphed or sent by facsimile and confirmed to the party
to be notified and its counsel), or in any case to such other address as the
person to be notified may have requested in writing.

     (b) Successors and Assigns. This Agreement has been and is made solely for
the benefit of and shall be binding upon each of the Issuers, the Subsidiary
Guarantors, the Initial Purchaser and, to the extent provided in Section 8, the
controlling persons, officers, directors, partners, employees, representatives
and agents referred to in Section 8, and their respective heirs, executors,
administrators, successors and assigns, all as and to the extent provided in
this Agreement, and no other person shall acquire or have any right under or by
virtue of this Agreement. The term "successors and assigns" shall not include a
purchaser of any of the Series A Notes from the Initial Purchaser merely because
of such purchase. Notwithstanding the foregoing, it is expressly understood and
agreed that each purchaser who purchases Series A Notes from the Initial
Purchaser is intended to be a beneficiary of the Issuers' covenants contained in
the Registration Rights Agreement to the same extent as if the Series A Notes
were sold and those covenants were made directly to such purchaser by each of
the Issuers, and each such purchaser shall have the right to take action against
each of the Issuers to enforce, and obtain damages for any breach of, those
covenants.

     (c) GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED AND INTERPRETED, AND
THE RIGHTS OF THE PARTIES SHALL BE DETERMINED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK, INCLUDING, WITHOUT LIMITATION, SECTIONS 5-1401 AND 5-1402 OF
THE NEW YORK GENERAL OBLIGATIONS LAWS AND RULE 327(b) OF THE NEW YORK CIVIL
PRACTICE LAWS AND RULES. EACH OF THE ISSUERS AND SUBSIDIARY GUARANTORS HEREBY
IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY NEW YORK STATE COURT SITTING IN
THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK OR ANY FEDERAL COURT SITTING IN
THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK IN RESPECT OF ANY SUIT, ACTION
OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, AND IRREVOCABLY
ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND
UNCONDITIONALLY, JURISDICTION OF THE AFORESAID COURTS. EACH OF THE MAJESTIC
ENTITIES IRREVOCABLY WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO
UNDER APPLICABLE LAW, TRIAL BY JURY AND ANY OBJECTION THAT IT MAY NOW OR
HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING
BROUGHT IN ANY SUCH COURT AND ANY CLAIM THAT ANY SUCH SUIT, ACTION OR
PROCEEDINGS BROUGHT IN SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.
EACH OF THE ISSUERS AND SUBSIDIARY GUARANTORS IRREVOCABLY CONSENTS, TO THE
FULLEST EXTENT IT MAY EFFECTIVELY DO SO UNDER APPLICABLE LAW, TO THE SERVICE OF
PROCESS OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY
THE

                                       34

<PAGE>

MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO
SUCH ISSUER OR SUCH SUBSIDIARY GUARANTOR, AS THE CASE MAY BE, AT THE ADDRESS SET
FORTH HEREIN, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER SUCH MAILING.
NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE INITIAL PURCHASER TO SERVE PROCESS
IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR
OTHERWISE PROCEED AGAINST ANY OF THE ISSUERS AND SUBSIDIARY GUARANTORS IN ANY
OTHER JURISDICTION.

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

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

     (f) Interpretation. The words "include," "includes," and "including" when
used in this Agreement shall be deemed in each case to be followed by the words
"without limitation." The phrases "the date of this agreement," "the date
hereof," and terms of similar import, unless the context otherwise requires,
shall be deemed to refer to December 16, 2005. The words "hereof," "herein,"
"herewith," "hereby" and "hereunder" and words of similar import shall, unless
otherwise stated, be construed to refer to this Agreement as a whole and not to
any particular provision of this Agreement. The phrase "to the knowledge of the
issuers and the guarantors" means the actual knowledge, after due inquiry, of
each of Don H. Barden and Jon Bennett. Unless the context otherwise requires,
defined terms shall include the singular and plural and the conjunctive and
disjunctive forms of the terms defined.

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

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

     12. Trump Execution. On the Closing Date, effective upon the consummation
of the Acquisition, (i) the Company will cause Trump to become a party to this
Agreement (as a Subsidiary Guarantor) by executing and delivering this Agreement
to the Initial Purchaser and executing and delivering the Guarantees, Pledge
Joinder, Registration Rights Agreement and

                                       35

<PAGE>

Second Supplemental Indenture and any other Document to which Trump is to become
a party, (ii) the Company shall execute and deliver the Pledge Supplement. By
executing and delivering this Agreement, Trump expressly agrees (A) to take any
and all actions required to be taken by a Subsidiary Guarantor under this
Agreement or any other Document to which it becomes a party and (B) that all
representations and warranties made in this Agreement by the Company on behalf
of Trump shall be considered to be effective as to, and binding upon, Trump as
of the consummation of the Acquisition.

                       [signature pages follow this page]

                                       36

<PAGE>

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

                                        Very truly yours,

                                        THE MAJESTIC STAR CASINO, LLC

                                        By:
                                            ------------------------------------
                                        Name: Jon Bennett
                                        Title: Vice President and Chief
                                               Financial Officer

                                        THE MAJESTIC STAR CASINO CAPITAL CORP.

                                        By:
                                            ------------------------------------
                                        Name: Jon Bennett
                                        Title: Vice President and Chief
                                               Financial Officer

                                        MAJESTIC INVESTOR, LLC

                                        By:
                                            ------------------------------------
                                        Name: Jon Bennett
                                        Title: Vice President and Chief
                                               Financial Officer

                                        MAJESTIC INVESTOR HOLDINGS, LLC

                                        By:
                                            ------------------------------------
                                        Name: Jon Bennett
                                        Title: Vice President and Chief
                                               Financial Officer

                                        Senior Secured Notes Purchase Agreement

                                       S-1

<PAGE>

                                        MAJESTIC INVESTOR CAPITAL CORP.

                                        By:
                                            ------------------------------------
                                        Name: Jon Bennett
                                        Title: Vice President and Chief
                                               Financial Officer

                                        BARDEN MISSISSIPPI GAMING, LLC

                                        By:
                                            ------------------------------------
                                        Name: Jon Bennett
                                        Title: Vice President and Chief
                                               Financial Officer

                                        BARDEN COLORADO GAMING, LLC

                                        By:
                                             -----------------------------------
                                        Name: Jon Bennett
                                        Title: Vice President and Chief
                                               Financial Officer

                                        MAJESTIC STAR CASINO CAPITAL CORP. II

                                        By:
                                             -----------------------------------
                                        Name: Jon Bennett
                                        Title: Vice President and Chief
                                               Financial Officer

                                        Senior Secured Notes Purchase Agreement

                                       S-2

<PAGE>

ACCEPTED AND AGREED TO:

JEFFERIES & COMPANY, INC.

By:
    ---------------------------------
Name:
      -------------------------------
Title:
       ------------------------------

                                        Senior Secured Notes Purchase Agreement

                                       S-3

<PAGE>

Accepted and Agreed to as of the 21st day of December, 2005:

                                        THE MAJESTIC STAR CASINO II, INC.,
                                        (f.k.a. Trump Indiana, Inc.)

                                        By:
                                            ------------------------------------
                                        Name: Jon Bennett
                                        Title: Vice President and Chief
                                               Financial Officer

                                        BUFFINGTON HARBOR PARKING
                                        ASSOCIATES, LLC

                                        By:
                                            ------------------------------------
                                        Name: Jon Bennett
                                        Title: Vice President and Chief
                                               Financial Officer

                                        BUFFINGTON HARBOR RIVERBOATS, L.L.C.

                                        By:
                                            ------------------------------------
                                        Name: Jon Bennett
                                        Title: Vice President and Chief
                                               Financial Officer

                                        Senior Secured Notes Purchase Agreement

                                       S-4

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