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                                                                    EXHIBIT 10.1

                            ASSET PURCHASE AGREEMENT

     THIS ASSET PURCHASE AGREEMENT (the "AGREEMENT"), is entered into as of this
5th day of May, 1999, by and between Wexford Technology, Inc. ("Wexford") a Utah
corporation, as SELLER and Imperial Petroleum, Inc., a Nevada corporation
("Imperial"), as BUYER.

                              W I T N E S S E T H:

     WHEREAS, Wexford is the owner of certain assets, stock, notes receivable,
notes payable and other liabilities and certain other rights comprising those
properties and subsidiaries set forth on Exhibit A attached hereto; and

     WHEREAS, in connection with its acquisition of U.S. Gaming & Leisure Corp.
("USGL"), Wexford is obligated prior to the closing with USGL to dispose of its
business interests and subsidiaries with the result that Wexford shall have no
assets or liabilities; and

     WHEREAS, Wexford desires to sell, transfer and assign to Imperial all of
its right, title and interest in and to those assets, stock, notes and accounts
receivable, notes and accounts payable and other liabilities and certain other
rights comprising those properties and subsidiaries as described on Exhibit A
and any and all equipment used by Wexford in conjunction with the operation of
said properties and subsidiaries and located on the premises, collectively
referred to as the "Acquired Assets"; and

     WHEREAS, it is the intent of both Wexford and Imperial that Imperial
acquire all of the assets and liabilities of Wexford at the time of closing
whether or not specifically identified on Exhibit "A"; and

     WHEREAS, the Board of Directors of both Wexford and Imperial deem it in the
best interests of each to complete the transaction herein contemplated;

     NOW, THEREFORE, in consideration of the premises and of the mutual
agreements, provisions, covenants, representations and warranties herein
contained, the parties hereto hereby agree as follows:

                         1. PURCHASE AND SALE OF ASSETS.

     1.01 PURCHASE AND SALE. On and subject to the terms and conditions of this
Agreement, Imperial agrees to purchase from Wexford and Wexford agrees to sell,
transfer, convey and deliver to Imperial all of Wexford's right, title and
interest in and to the Acquired Assets, including without limitation, the
following assets:

     (a) all of Wexford' right, title and interest in and to each of the
properties as more particularly described on Exhibit A attached hereto, and all
equipment, buildings, fixtures and other improvements located thereon and all
rights, easements, rights-of-way and other interests incidental thereto and used
or necessary for the use and enjoyment of the properties by Imperial;

     (b) all machinery, equipment, trucks, tractors and trailers and related
spare components and parts, inventories of raw materials, supplies and minerals,
processed goods, goods in process, and tools located on the properties or used
in connection with the properties described in Exhibit A;

     (c) all certificates, licenses, permits, registrations and applications
therefor necessary, useful for, used or held for use by Wexford in the ownership
or operation of the properties (collectively, the "Permits"); whether held in
the name of Wexford or in an affiliate entity;

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     (d) all water wells and water rights, licenses, permits and applications
therefor to locate, drill for, produce, use, gather, restrict flow, store or
remove water on, from or to the properties (collectively, the "Water Rights");
and

     (e) all books, records, ledgers, files, documents, correspondence, lists,
plats, maps, plans, drawings, blueprints, specifications, assays, studies,
reports and other written or printed materials necessary, useful for, held for
use by Wexford useful in the ownership or operation of the properties on Exhibit
A, including any stock certificates, stock appreciation rights, warrant
certificates or similar documents conveying ownership of the properties;

     1.02 PURCHASE PRICE. Imperial agrees to purchase the Acquired Assets from
Wexford at Closing for the following consideration:

        (a) Imperial will retire the note receivable from Wexford to Imperial in
            the principal amount of $467,835, including accrued interest thereon
            to the date of closing.

        (b) Imperial will retire the accounts payable from Wexford to Imperial
            in the amount of $45,000.

        (c) Imperial will assume outstanding notes and accounts payable to third
            parties from Wexford in the principal amount of $ 885,845, including
            accrued interest thereon to the date of closing.

        (d) Imperial will assume outstanding notes and accounts receivable owed
            by Wexford from third parties on the amount of $218,300, including
            accrued interest through January 31, 1999 of $19,647.

     1.03 CLOSING. Subject to the terms and provisions of this Agreement, the
closing of the transactions contemplated by this Agreement will be at 10:00 a.m.
at the offices Imperial Petroleum, Inc., 100 NW Second Street, Suite 312,
Evansville, IN 47708, on or before, March 9, 1999, or at such earlier or later
date or such other place as shall be mutually agreed upon by Imperial and
Wexford, such date and time sometimes being referred to herein as the "Closing"
or "Closing Date."

                 2. REPRESENTATIONS AND WARRANTIES OF IMPERIAL.

     Imperial represents and warrants to Wexford that, to the best of its
knowledge, the statements contained in this Section 2 are correct and complete
as of the date of this Agreement and will be correct and complete as of the
Closing Date as though made then and as though the Closing Date were substituted
for the date of this Agreement throughout this Section 2.

     2.01 ORGANIZATION, QUALIFICATION AND CORPORATE POWER. Imperial is a
corporation duly organized, validly existing and in good standing under the laws
of the State of Nevada. Imperial is duly authorized to conduct business and is
in good standing under the laws of each jurisdiction in which the nature of its
business or the ownership or leasing of its properties requires such
qualification. Imperial has full corporate power and authority to carry on the
business in which it is engaged and to own and use the properties owned and used
by it.

     2.02 AUTHORITY. Imperial has all requisite corporate power and authority to
execute and deliver this Agreement and all agreements, instruments and documents
to be executed and delivered by Imperial hereunder, to consummate the
transactions contemplated hereby and to perform all terms and conditions hereof
to be performed by it. The execution and delivery of this Agreement by Imperial
and all agreements, instruments, and documents to be executed and delivered by
Imperial hereunder, the performance by Imperial of all the terms and conditions
hereto to be performed by it and the consummation of the transactions
contemplated hereby have been duly authorized and approved by the Board of
Directors of Imperial, and no other corporate proceedings of Imperial are
necessary with respect thereto. All persons

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who have executed and delivered this Agreement, and all persons who will execute
and deliver the other agreements, documents and instruments to be executed and
delivered by Imperial hereunder, have been duly authorized to do so by all
necessary actions on the part of Imperial. This Agreement constitutes, and each
other agreement and instrument to be executed by Imperial hereunder, when
executed and delivered by Imperial, will constitute, the valid and binding
obligation of Imperial enforceable against it in accordance with its terms.

     2.03 CAPITALIZATION. The entire authorized capital stock of Imperial, as of
the date of the Agreement, consists of 50,000,000 shares of common stock, par
value $0.06 per share, of which 8,985,413 shares are, as of the date of this
Agreement, issued and outstanding, including 152,290 shares held in treasury.
Certain employees and other individuals have been granted warrants to acquire
restricted common stock of Imperial, which if exercised would result in the
issuance of an additional 966,666 shares of common stock as more fully described
in the Imperial Disclosure Schedule Section 2.03 attached hereto and made a part
hereof. All of the issued and outstanding shares of Imperial common stock have
been duly authorized, are validly issued, fully paid, and non-assessable. Except
as disclosed in the Imperial Disclosure Schedule, there are no outstanding or
authorized options, warrants, rights, contracts, calls, puts, rights to
subscribe, conversion rights or other agreements or commitments to which
Imperial is a party or which are binding upon Imperial providing for the
issuance, disposition or acquisition of any of its capital stock. Upon issuance,
the Imperial Shares to be issued to Sellers, pursuant to this Agreement will be
duly authorized, validly issued, fully paid and non-assessable.

     2.04 NON-CONTRAVENTION. Neither the execution and the delivery of this
Agreement, nor the consummation of the transactions contemplated hereby, will
(i) violate any statute, regulation, rule, judgment, order, decree, stipulation,
injunction, charge or other restriction of any federal, state or local
government, governmental agency or court to which Imperial is subject or any
provision of its Certificate of Incorporation, Bylaws or Board of Directors or
stockholder resolutions of Imperial or (ii) conflict with, result in a breach
of, constitute a default under, result in the acceleration of, create in any
party the right to accelerate, terminate, modify, or cancel or require any
notice under any contract, lease, sublease, license, sublicense, franchise,
permit, indenture, agreement or mortgage for borrowed money, instrument of
indebtedness, security interest or other arrangement to which Imperial is a
party or by which it is bound or to which any of its assets is subject or result
in the imposition of any security interest upon any of its assets. Imperial is
not required to give any notice to, make any filing with, or obtain any
authorization, consent or approval of any federal, state or local government,
governmental agency, bank, financial institution or other person or entity in
order for Imperial to consummate the transactions contemplated by this
Agreement.

     2.05 SUBSIDIARIES. The subsidiaries of Imperial are disclosed in the
Imperial Disclosure Schedule, Section 2.06 attached hereto and made a part
hereof.

     2.06 DISCLOSURE. The representations and warranties contained in this
Section 2 do not contain any untrue statement of a fact or omit to state any
fact necessary in order to make the statements and information contained in this
Section 2 not misleading.

     2.07 REPRESENTATION. Imperial represents and warrants that in making the
decision to acquire the Acquired Assets, it has relied upon its own independent
investigations and the independent investigations by its representatives,
including its own professional legal, tax, and business advisors, and that
Imperial and its representatives have been given the opportunity to examine all
relevant documents and to ask questions of and to receive answers from Wexford.

              3. REPRESENTATIONS AND WARRANTIES CONCERNING WEXFORD.

     Wexford, represents and warrants to Imperial that, to the best of their
knowledge, the statements contained in this Section 3 are correct and complete
as of the date of this Agreement and will be correct and

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complete as of the Closing Date as though the Closing Date were substituted for
the date of this Agreement throughout this Section 3.

     3.01 AUTHORITY. Wexford has all requisite power and authority to execute
and deliver this Agreement and all agreements, instruments and documents to be
executed and delivered by Wexford hereunder, to consummate the transactions
contemplated hereby and to perform all terms and conditions hereof to be
performed by it. This Agreement constitutes, and each other agreement and
instrument to be executed by Wexford hereunder, when executed and delivered by
Wexford, will constitute, the valid and binding obligation of Wexford
enforceable against it in accordance with its terms.

     3.02 NON-CONTRAVENTION. Neither the execution and the delivery of this
Agreement, nor the consummation of the transactions contemplated hereby, will
(i) violate any statute, regulation, rule, judgment, order, decree, stipulation,
injunction, charge or other restriction of any government, governmental agency
or court to which Wexford is subject or (ii) conflict with, result in a breach
of, constitute a default under, result in the acceleration of, create in any
party the right to accelerate, terminate, modify, or cancel or require any
notice under any contract, lease, sublease, license, sublicense, franchise,
permit, indenture, agreement or mortgage for borrowed money, instrument of
indebtedness, security interest or other arrangement to which Wexford is a party
or by which it is bound or to which any of its assets is subject or result in
the imposition of any security interest upon any of its assets. Wexford is not
required to give any notice to, make any filing with, or obtain any
authorization, consent or approval of any federal, state or local government,
governmental agency, bank, financial institution or other party in order for
Wexford and Imperial to consummate the transactions contemplated by this
Agreement.

     3.03 TITLE. Wexford has, and upon the Closing Date will have, valid and
binding contractual rights to acquire the Acquired Assets, free and clear of all
liens, claims, mortgages, security interests, pledges, encumbrances or
restrictions on transfer of any kind or nature.

     3.04 ACQUIRED ASSETS.

     (a) Each of the properties comprising the Acquired Assets is legal, valid,
binding, enforceable and in full force and effect. Wexford has performed each
and every obligation and requirement under each agreement affecting the Acquired
Assets necessary to create, preserve and maintain each of the properties
comprising the Acquired Assets as legal, valid, binding, enforceable and in full
force and effect. Wexford has made each and every required filing with all
federal, state and local governmental authorities, and similar documents,
necessary to create, preserve and maintain the Acquired Assets and all such
filings are complete, true and correct. Wexford is not in breach of or default
under any agreements affecting the properties comprising the Acquired Assets and
no event has occurred which, with notice or passage of time, would constitute a
breach of or default under or permit revocation, termination or modification of
the Acquired Assets and Wexford has received no notice and have no knowledge of
any such breach, default, revocation, termination or modification which would
materially affect the Acquired Assets.

     (b) With respect to each property comprising the Acquired Assets: (i)
Wexford has good and marketable title, free and clear of any security interest,
easement, covenant or other restriction; (ii) there are no pending or threatened
condemnation proceedings, lawsuits or administrative actions relating to any
Acquired Assets or other matters affecting adversely the current use, occupancy
or value thereof; (iii) the legal description for each property as set forth on
Exhibit A attached hereto describes such property fully and adequately; (iv) all
facilities thereon have received all approvals of governmental authorities
(including licenses and permits) required in connection with the ownership or
operation thereof and have been operated and maintained in accordance with
applicable laws, rules and regulations; (v) there are no leases, subleases,
licenses, concessions or other agreements, written or oral, granting to any
party or parties the right of use or occupancy of any portion of the Acquired
Assets; (vi) there are no outstanding options or rights of first refusal to
purchase the Acquired Assets, or any portion thereof or interest therein.

     3.05 PERMITS. Each of the Permits is legal, valid, binding, enforceable and
in full force and effect. Wexford has made all payments and performed each and
every obligation and requirement under each Permit necessary to preserve and
maintain each Permit as legal, valid, binding, enforceable and in full force

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and effect. Wexford is not in breach of or default under any Permit and no event
has occurred which, with notice or the passage of time, would constitute a
breach of or default under or permit revocation, termination or modification of
any Permit and Wexford has received no notice and have no knowledge of any such
revocation, termination or modification of any Permit.

     3.07 GOVERNMENTAL APPROVALS. No consent, approval, waiver, order or
authorization of, or registration, declaration or filing with, any federal,
state or local governmental authority (including, without limitation, any
department, bureau or agency), is required to be obtained or made in connection
with the execution and delivery of this Agreement by Wexford or the consummation
by Wexford of the transactions contemplated hereby the failure of which to
obtain would have a material adverse affect on the Acquired Assets, Imperial or
Imperial's ability to own, operate or exploit the Acquired Assets.

     3.08 TAX MATTERS. Wexford has filed or will file all federal, state and
local tax returns that it is required to file. All federal, state and local
taxes owed by Wexford (whether or not shown on any tax return) including,
without limitation, income, withholding, excise, ad valorem, social security,
unemployment, occupation, transfer, sales, use and property taxes, have been or
will be paid. Wexford is not currently the beneficiary of any extension of time
within which to file any tax return. No claim has ever been made by an authority
in a jurisdiction where Wexford does not file tax returns that it is or may be
subject to taxation by that jurisdiction. There are no security interests or
liens on any of the assets of Wexford that arose in connection with any failure
(or alleged failure) by Wexford to pay any federal, state or local tax. Wexford
have withheld and paid all taxes required to have been withheld and paid in
connection with amounts paid or owing to any employee, creditor, independent
contractor or other third party. No director or officer (or employee responsible
for tax matters) of Wexford or any affiliate expects any federal, state or local
authority to assess any additional taxes for any period for which tax returns
have been filed. There is no dispute or claim concerning any federal, state or
local tax liability either (A) claimed or raised by any authority in writing or
(B) as to which Wexford or any of the directors and officers (and employees
responsible for tax matters) of Wexford or any affiliate have knowledge based
upon personal contact with any agent of such authority.

     3.09 LITIGATION. There is no litigation and there are no arbitration
proceedings or governmental proceedings, suits or investigations pending,
instituted or threatened against Wexford or any of the Acquired Assets. Neither
Wexford nor any of the Acquired Assets, are subject to any judicial or
administrative judgment, order, decree or restraint currently affecting Wexford
in a manner that is material and adverse to the Acquired Assets. Wexford has not
received any notifications or charges from any federal, state, or local
governmental authority involving oil and gas, occupational safety and health or
water quality or other environmental matters.

     3.10 ENVIRONMENT, HEALTH AND SAFETY.

     (a) Wexford and its predecessors and affiliates have each complied with all
laws (including rules and regulations thereunder) of federal, state and local
governments (and all agencies thereof) concerning the environment, public health
and safety and employee health and safety, and no charge, complaint, action,
suit, proceeding, hearing, investigation, claim, demand or notice has been filed
or commenced against any of them alleging any failure to comply with any such
law or regulation.

     (b) Wexford has no liability (and there is no basis related to the past or
present operations, properties or facilities of Wexford and its respective
predecessors and affiliates) for any present or future charge, complaint,
action, suit, proceeding, hearing, investigation, claim or demand against
Wexford giving rise to any liability under the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, the Resource Conservation and
Recovery Act of 1976, the Federal Water Pollution Control Act of 1972, the Clean
Air Act of 1970, the Safe Drinking Water Act of 1974, the Toxic Substances
Control Act of 1976, the Refuse Act of 1899, or the Emergency Planning and
Community Right-to-Know Act of 1986 (each as

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amended), or any other law (or rule or regulation thereunder) of any federal,
state or local government (or agency thereof), concerning release or threatened
release of hazardous substances, public health and safety, or pollution or
protection of the environment.

     (c) Wexford has no liability and none of their predecessors and affiliates
have handled or disposed of any substance, arranged for the disposal of any
substance or owned or operated any property or facility in any manner that could
form the basis for any present or future charge, complaint, action, suit,
proceeding, hearing, investigation, claim or demand (under the common law or
pursuant to any statute) against giving rise to any liability for damage to any
site, location, or body of water (surface or subsurface) or for illness or
personal injury.

     (d) Wexford has no liability and there is no basis for any present or
future charge, complaint, action, suit, proceeding, hearing, investigation,
claim, or demand against Sellers giving rise to any liability under the
Occupational Safety and Health Act, as amended, or any other law (or rule or
regulation thereunder) of any federal, state or local government (or agency
thereof) concerning employee health and safety.

     (e) Wexford has no liability and has not exposed any employee or contractor
to any substance or condition that could form the basis for any present or
future charge, complaint, action, suit, proceeding, hearing, investigation,
claim, or demand (under the common law or pursuant to statute) against Wexford
giving rise to any liability for any illness of or personal injury to any
employee or contractor.

     (f) Wexford has obtained and been in compliance with all of the terms and
conditions of all permits, licenses and other authorizations which are required
under, and have complied with all other limitations, restrictions, conditions,
standards, prohibitions, requirements, obligations, schedules and timetables
which are contained in, all federal, state and local laws (including rules,
regulations, codes, plans, judgments, orders, decrees, stipulations, injunctions
and charges thereunder) relating to public health and safety, worker health and
safety and pollution or protection of the environment, including laws relating
to emissions, discharges, releases, or threatened releases of pollutants,
contaminants, or chemical, industrial, hazardous, or toxic materials or wastes
into ambient air, surface water, groundwater, or lands or otherwise relating to
the manufacture, processing, distribution, use, treatment, storage, disposal,
transport or handling of pollutants, contaminants or chemical, industrial,
hazardous, or toxic materials or wastes.

     (g) All properties and equipment used in the business of Wexford have been
free of asbestos, PCB's, methylene chloride, trichloroethylene, 1,2
trans-dichloroethylene, dioxins, dibenzofurans, and other hazardous substances.

     (h) All product labeling of Wexford has been in conformity with applicable
laws (including rules and regulations thereunder).

     (i) No pollutant, contaminant, or chemical, industrial, hazardous, or toxic
material or waste ever has been buried, stored, spilled, leaked, discharged,
emitted, or released on any real property comprising the Acquired Assets.

     (j) There are no underground storage tanks located on the Acquired Assets.

     3.11 LEGAL COMPLIANCE.

     (a) Wexford has complied with all laws (including rules and regulations
thereunder) of federal, state and local governments (and all agencies thereof),
and no charge, complaint, action, suit, proceeding, hearing, investigation,
claim, demand, or notice has been filed or commenced against Wexford alleging
any failure to comply with any such law or regulation.

     (b) Wexford has complied with all applicable laws (including rules and
regulations thereunder) relating to the employment of labor, employee civil
rights, and equal employment opportunities.

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     (c) Wexford has complied with all applicable federal, state and local laws
(including rules and regulations thereunder) relating to crude oil and natural
gas production, exploration and extraction or the processing or transportation
and storage of crude oil and natural gas.

     (d) Wexford has not violated in any respect or received a notice or charge
asserting any violation of the Sherman Act, the Clayton Act, the Robinson-Patman
Act, or the Federal Trade Commission Act, each as amended.

     (e) Wexford has not: (i) made or agreed to make any contribution, payment
or gift of funds or property to any governmental official, employee, or agent
where either the contribution, payment or gift or the purpose thereof was
illegal under the laws of any federal, state, local or foreign jurisdiction;
(ii) established or maintained any unrecorded fund or asset for any purpose or
made any false entries on any books or records for any reason; (iii) made or
agreed to make any contribution made by any other person, to any candidate for
federal, state, local or foreign public office.

     (f) Wexford has filed in a timely manner all reports, documents, and other
materials it was required to file (and the information contained therein was
correct and complete in all respects) under all applicable laws (including rules
and regulations thereunder).

     (g) Wexford has possession of all records and documents it was required to
retain under all applicable laws (including rules and regulations thereunder).

     3.12 DISCLOSURE. The representations and warranties contained in this
Section 3 do not contain any untrue statement of a fact or omit to state any
fact necessary in order to make the statements and information contained in this
Section 3 not misleading.

                           4. SURVIVAL AND INDEMNITY.

     4.01 SURVIVAL. All of the representations and warranties of Wexford
contained in this Agreement and the representations of Imperial contained in
this Agreement shall survive the Closing Date, even if the damaged party knew or
had reason to know of any misrepresentation or breach of warranty at the time of
the Closing Date, and shall continue in full force and effect for a period of
six months thereafter.

     4.02 INDEMNIFICATION FOR BENEFIT OF THE IMPERIAL . In the event Wexford
breaches any of their joint and several representations, warranties or covenants
contained herein, and provided that Imperial makes a written claim for
indemnification against Wexford pursuant to Section 9.04, then Wexford agrees to
indemnify and hold harmless Imperial from and against the entirety of any
Adverse Consequences Imperial may suffer through and after the date of the claim
for indemnification (including any Adverse Consequences Imperial may suffer
after the end of the applicable survival period) resulting from, arising out of,
relating to, in the nature of, or caused by the breach.

     4.03 INDEMNIFICATION FOR BENEFIT OF WEXFORD. In the event Imperial breaches
any of its representations, warranties and covenants contained herein, and
provided that Wexford makes a written claim for indemnification against Imperial
pursuant to Section 9.04, then Imperial agrees to indemnify and hold harmless
Wexford from and against the entirety of any Adverse Consequences Wexford may
suffer through and after the date of the claim for indemnification resulting
from, arising out of, relating to, in the nature of or caused by the breach.

     4.04 INDEMNIFICATION PROCEDURE. If any third party shall notify any party
to this Agreement (the "Indemnified Party") with respect to any matter which may
give rise to a claim for indemnification against any other party (the
"Indemnifying Party") under this Section 4, then the Indemnified Party shall
notify each Indemnifying Party thereof promptly; provided however, that no delay
on the part of the Indemnified Party in notifying any Indemnifying Party shall
relieve the Indemnifying Party from any liability or

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obligation hereunder unless (and then solely to the extent) the Indemnifying
Party thereby is damaged. In the event any Indemnifying Party notifies the
Indemnified Party within 10 days after the Indemnified Party has given notice of
the matter that the Indemnifying Party is assuming the defense thereof, (i) the
Indemnifying Party will defend the Indemnified Party against the matter with
counsel of the Indemnified Party's choice reasonably satisfactory to the
Indemnifying Party, (ii) the Indemnified Party may retain separate co-counsel at
its sole cost and expense, (iii) the Indemnified Party will not consent to the
entry of any judgment or enter into any settlement with respect to the matter
without the written consent of the Indemnifying Party not to be withheld
unreasonably, and (iv) the Indemnifying Party will not consent to the entry of
any judgment with respect to the matter, or enter into any settlement which does
not include a provision whereby the plaintiff or claimant in the matter releases
the Indemnified Party for all liability with respect thereto, without the
written consent of the Indemnified Party not to be withheld unreasonably. In the
event no Indemnifying Party notifies the Indemnified Party with 10 days after
the Indemnified Party has given notice of the matter that the Indemnifying Party
is assuming the defense thereof, however, the Indemnified Party may defend
against, or enter into any settlement with respect to, the matter in any manner
it reasonably may deem appropriate.

     4.05 DETERMINATION OF LOSS. The parties shall make appropriate adjustment
for tax benefits and insurance proceeds (reasonably certain of receipt and
utility in each case) and for the time cost of money in determining the amount
of loss for purposes of this Section 4.

     4.06 OTHER INDEMNIFICATION PROVISIONS. The foregoing indemnification
provisions are in addition to, and not in derogation of, any statutory or common
law remedy any party may have for breach of representation, warranty or
covenant.

     4.07 DEFINITION OF ADVERSE CONSEQUENCES. As used in this Section 4,
"Adverse Consequences" means all charges, complaints, actions, suits,
proceedings, hearings, investigations, claims, demand, judgments, orders,
decrees, stipulations, injunctions, damages, dues, penalties, fines, costs,
amounts paid in settlement, liabilities, obligations, taxes, liens, losses
(including any losses resulting from the loss or invalidity of the leases
comprising the Acquired Assets), expenses and fees, including all attorneys'
fees and court costs.

                  5. CONDUCT AND TRANSACTIONS PRIOR TO CLOSING.

     5.01 COVENANTS OF WEXFORD. Between the date of this Agreement and the
Closing Date or, if earlier termination of this Agreement:

     (a) Wexford agrees to give Imperial its agents and representatives, full
access to the Acquired Assets and all of Wexford's premises and books and
records relating to the Acquired Assets and its operation, and to furnish
Imperial with such financial and operating data and other information with
respect to the Acquired Assets and its ownership and operation as Imperial shall
from time to time request; provided, however, that any such investigation shall
not affect any of the representations and warranties of Wexford hereunder; and
provided further, that any such investigation shall be conducted in such manner
as not to interfere unreasonably with the operation of the business of Wexford.
In the event of termination of this Agreement, Imperial will return to Wexford
all documents, work papers, and other material obtained from Wexford in
connection with the transactions contemplated hereby and will keep confidential
any information obtained pursuant to this Agreement unless such information is
ascertainable from public or published information or trade sources.

     (b) Wexford, to the extent required for continued ownership and operation
of the Acquired Assets and Permits without impairment, will use its best efforts
to preserve substantially intact the business organization of Wexford, to keep
available the services of the present officers and employees of Wexford, and to
preserve the present relationships of Wexford with persons having significant
business relationships with Wexford. All lease and rental payments required
pursuant to Wexford's existing agreement will be current at the time of Closing.

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     (c) Wexford will conduct its business relating to the Acquired Assets and
Permits only in the ordinary course and will not engage in any practice, take
any action or enter into any transaction relating to the Acquired Assets or
Permits outside the ordinary course of business. By way of amplification and not
limitation and except as otherwise provided in this Agreement, Wexford will not,
without the prior written consent of Imperial, (i) make any material change in
the conduct of the business of the Acquired Assets or fail to conduct its
operations in the ordinary course consistent with past practice; (ii) fail to
maintain and keep the Acquired Assets and Permits in the same condition in all
material respects in which the Acquired Assets were on the date of this
Agreement, normal wear and tear excepted, or fail to perform routine maintenance
on the Acquired Assets not materially less frequently and to a degree not
materially less in magnitude than in accordance with the schedule and magnitude
of routine maintenance carried out by Wexford prior to the date of the
Agreement; (iii) sell or dispose of any of its assets employed in the business
conducted on the Acquired Assets; or (iv) commit itself to do any of the
foregoing.

     (d) Wexford will: (i) promptly notify Imperial of the receipt of any
written notice or written claim of a material breach or default by Wexford, or
of any termination or cancellation, or written threat of termination or
cancellation, of any of the Acquired Assets or Permits; (ii) promptly notify
Imperial of any action, suit, proceeding, claim or investigation which is
threatened or commenced against Wexford which relates to or affects in any
material respect the ownership or operation of the Acquired Assets by Imperial
after the Closing of this Agreement or the transactions contemplated thereby;
(iii) promptly notify Imperial of any condition or circumstance occurring from
the date hereof up to and including the Closing Date that would cause the
representations and warranties of Wexford contained herein to become untrue in
any material respect; and (iv) cooperate with Imperial to effect an orderly
transition of the ownership and operation of the Acquired Assets and Permits and
use its best efforts to protect the relationships with Wexford's existing
customers and suppliers relating to the Acquired Assets.

     (e) Wexford agrees that neither it nor its affiliates nor any employee,
representative or advisor of Wexford or their affiliates will, directly or
indirectly, (i) solicit, initiate or encourage any Acquisition Proposal (as
defined below) relating to the Acquired Assets or afford access to the
properties or permits or the books and records relating to the Acquired Assets
or Permits, to any person that may be considering making or has made an
Acquisition Proposal. Wexford shall immediately cease or cause to be terminated
any existing activities, discussions or negotiations with any persons conducted
heretofore with respect to any Acquisition Proposal. As used herein, the term
"Acquisition Proposal" means any offer or proposal for, or any indication of
interest in, (i) the acquisition of all or a substantial portion of the Acquired
Assets (other than the transactions contemplated by this Agreement). The
provisions of this Section 5.01 shall remain in effect until the earlier of the
termination of this Agreement pursuant to Section 8 or the Closing.

     5.02 COVENANTS OF IMPERIAL.

     (a) Between the date of this Agreement and the Closing Date, Imperial
agrees to give to Wexford, their agents and representatives, full access to all
premises and books and records, and to cause Imperial's officers to furnish
Wexford with such financial and operating data and other information with
respect to the business and properties of Imperial as Wexford shall from time to
time reasonably request; provided, however, that any such investigation shall
not affect any of the representations and warranties of Imperial hereunder; and
provided further, that any such investigation shall be conducted in such manner
as not to interfere unreasonably with the operation of the business of Imperial.
In the event of termination of this Agreement, Wexford will return to Imperial
all documents, work papers and other material obtained from Imperial in
connection with the transactions contemplated hereby and will use all reasonable
efforts to keep confidential any information obtained pursuant to this Agreement
unless such information is ascertainable from public or published information or
trade sources.

     (b) Imperial waives compliance by Wexford with the bulk sales law of the
Texas Uniform Commercial Code and any other applicable bulk sales law in
connection with the sale of Acquired Assets contemplated by this Agreement.
Wexford hereby agrees to indemnify and hold Imperial harmless from and against
all losses, damages and expenses incurred by Imperial as a result of such
noncompliance.

                                       9

<PAGE>   10

     5.03 CONSENTS. Prior to Closing, Wexford and Imperial shall each use their
or its respective best efforts to obtain the consent or approval of each person
(including any federal, state or local governmental authority) whose consent or
approval shall be required in order to permit Imperial or Wexford, as the case
may be, to consummate the transactions contemplated by this Agreement.

                            6. CONDITIONS TO CLOSING.

     6.01 CONDITIONS TO OBLIGATIONS OF IMPERIAL. The obligation of Imperial to
effect the Closing of the transactions contemplated by this Agreement shall be
subject to the following conditions:

     (a) Wexford shall have furnished Imperial with certified copies of
resolutions duly adopted by its Board of Directors authorizing all necessary and
proper corporate action approving the execution, delivery and performance of
this Agreement.

     (b) Except to the extent waived hereunder, (i) the representations and
warranties of Wexford contained herein shall be true and correct in all material
respects at the Closing Date with the same effect as though made at such time;
and (ii) Wexford shall have performed all obligations and complied with all
covenants required by this Agreement to be performed or complied by them prior
to the Closing Date.

     (c) Wexford shall have obtained and delivered to Imperial all consents
required to consummate the transactions contemplated by this Agreement.

     (d) There shall not have occurred (i) any material adverse change in the
Acquired Assets or the business, properties, results of operations or financial
condition of Wexford, (ii) any loss of or damage to any of the Acquired Assets
(whether or not covered by insurance) of Wexford which will materially affect or
impair the ability of Imperial to own or operate the Acquired Assets.

     (e) All statutory requirements for the valid consummation by Wexford of the
transactions contemplated by this Agreement shall have been fulfilled and all
authorizations, consents and approvals of all federal, state or local
governmental agencies and authorities required to be obtained in order to permit
consummation by Wexford of the transactions contemplated by this Agreement and
to permit the business now or previously carried on by Wexford at the Acquired
Assets to continue unimpaired to any material degree immediately following the
Closing Date shall have been obtained. Between the date of this Agreement and
the Closing Date, no governmental agency, whether federal, state or local, shall
have instituted (or threatened to institute) an investigation or other
proceeding which is pending at the Closing Date relating to the transactions
contemplated by this Agreement and between the date of this Agreement and the
Closing Date no action or proceeding shall have been instituted or, to the
knowledge of Wexford, shall have been threatened by any party (public or
private) before a court or other governmental body to restrain or prohibit the
transactions contemplated by this Agreement or to obtain damages in respect
thereof.

     (f) Imperial shall have received from Wexford all files and records,
including without limitation, contracts, assignments, agreements, receipts,
deeds, leases, assays and correspondence and any other documents or files, which
in any way relate to the current or former operations of the Acquired Assets.

     (g) Wexford shall have complied with the delivery requirements set forth in
Section 7.03 of this Agreement.

     6.02 CONDITIONS TO OBLIGATIONS OF WEXFORD. The obligation of Wexford to
effect the Closing of the transactions contemplated by this Agreement shall be
subject to the following conditions:

     (a) Imperial shall have furnished Wexford with certified copies of
resolutions duly adopted by its Board of Directors authorizing all necessary and
proper corporate action approving the execution, delivery and performance of
this Agreement.

                                       10

<PAGE>   11

     (b) Except to the extent waived hereunder, (i) the representations and
warranties of Imperial contained herein shall be true in all material respects
at the Closing Date with the same effect as though made at such time; and (ii)
Imperial shall have performed all material obligations and complied with all
material covenants required by this Agreement to be performed or complied with
by it prior to the Closing Date.

     (c) All statutory requirements for the valid consummation by Imperial of
the transactions contemplated by this Agreement shall have been fulfilled and
all authorizations, consents and approvals of all federal, state, local and
foreign governmental agencies and authorities required to be obtained in order
to permit consummation by Imperial of the transactions contemplated by this
Agreement shall have been obtained. Between the date of this Agreement and the
Closing Date, no governmental agency, whether federal, state or local, shall
have instituted (or threatened to institute) in a writing directed to Wexford,
Imperial or any of their subsidiaries, an investigation which is pending at the
Closing Date relating to the transactions contemplated by this Agreement and
between the date of this Agreement and the Closing Date no action or proceeding
shall have been instituted or, to the knowledge of Imperial, shall have been
threatened by any party (public or private) before a court or other governmental
body to restrain or prohibit the transactions contemplated by this Agreement or
to obtain the damages in respect thereof.

                             7. ACTIONS AT CLOSING.

     7.01 TRANSACTIONS AT THE CLOSING. At the Closing the following events shall
occur, each event under the control of one party hereto being a condition
precedent to the events under the control of the other party, and each event
being deemed to have occurred simultaneously with the other events.

     7.02 DELIVERIES BY IMPERIAL. At Closing, Imperial will deliver to Wexford:

     (a) certified copies of corporate resolutions and other corporate
proceedings taken by Imperial to authorize the execution, delivery and
performance of this Agreement; and

     (b) Certificates of Incumbency and signatures of officers of Imperial dated
as of the date of this Agreement.

     7.03 DELIVERIES BY WEXFORD. At Closing, Wexford shall deliver to Imperial:

     (a) such bills of sale, deeds, mineral deeds, assignments, certificates of
title, stock certificates and other instruments of transfer, assignment and
conveyance as Imperial shall reasonably request to vest in Imperial good and
marketable title to the Acquired Assets; and

     (b) certified copies of corporate resolutions and other corporate
proceedings taken by Imperial to authorize the execution, delivery and
performance of this Agreement; and

     (c) duly executed copies of consents to the assignment, if necessary, of
any outstanding notes or accounts payable from the third parties owed by
Wexford.

                                 8. TERMINATION.

     8.01 TERMINATION OF THE AGREEMENT. The parties may terminate this Agreement
as provided below:

     (a) Imperial and Wexford may terminate this Agreement by mutual written
consent at any time prior to the Closing;

                                       11

<PAGE>   12

     (b) Imperial may terminate this Agreement by giving written notice to
Wexford on or before the Closing Date if Imperial is not satisfied with the
results of its continuing business, legal and accounting due diligence regarding
Wexford;

     (c) Imperial may terminate this Agreement by giving written notice to
Wexford at any time prior to the Closing (i) in the event Wexford has breached
any material representation, warranty or covenant contained in this Agreement in
any material respect, Imperial has notified Wexford of the breach and the breach
has continued without cure for a period of 10 days after the notice of breach or
(ii) if the Closing shall not have occurred on or before February 28, 1999, or
such later date as may be agreed to by Imperial and Wexford in writing, by
reason of the failure of any condition precedent under Section 6.01 hereof
(unless the failure results primarily from Imperial itself breaching any
representation, warranty or covenant contained in this Agreement); and

     (d) Wexford may terminate this Agreement by giving written notice to
Imperial at any time prior to the Closing (i) in the event Imperial has breached
any material representation, warranty or covenant contained in this Agreement in
any material respect, Wexford has notified Imperial of the breach and the breach
has continued without cure for a period of 10 days after the notice of breach or
(ii) if the Closing shall not have occurred on or before February 28, 1999, or
such later date as may be agreed to by Imperial and Wexford in writing, by
reason of the failure of any condition precedent under Section 6.02 hereof
(unless the failure results primarily from Wexford itself breaching any
representation, warranty or covenant contained in this Agreement).

     8.02 EFFECT OF TERMINATION. If either Imperial or Wexford terminates this
Agreement pursuant to Section 8.01 above, all rights and obligations of the
parties hereunder shall terminate without any liability of any party to any
other party.

                                9. MISCELLANEOUS.

     9.01 SURVIVAL OF COVENANTS, REPRESENTATIONS AND WARRANTIES. Except as
otherwise specifically provided, the covenants, representations and warranties
contained herein shall expire and be terminated and extinguished at the Closing
Date.

     9.02 GOVERNING LAW. This Agreement and the legal relations between the
parties shall be governed by and construed in accordance with the laws of the
State of Nevada.

     9.03 NOTICES. Any notices or other communications required or permitted
hereunder shall be sufficiently given if sent by registered mail or certified
mail, postage prepaid if addressed as follows:

     To: Imperial

         Imperial Petroleum, Inc.
         100 NW Second Street, Suite 312
         Evansville, IN 47708

         Attention: Mr. Jeffrey T. Wilson,
                    President

     To: Wexford

         Wexford Technology, Inc.
         5555 North Three Notch Street
         Troy, AL 36081

         Attention: Mr. Carleton B. Foster
                    Vice President

                                       12

<PAGE>   13

     9.04 NO ASSIGNMENT. This Agreement may not be assigned by either party or
by operation of law or otherwise and, in the event of an attempted assignment,
this Agreement shall terminate.

     9.05 ENTIRE AGREEMENT. This Agreement (including the documents referred to
herein) constitutes the entire agreement among the parties and supersedes any
prior understandings, agreements or representations by or among the parties,
written or oral, to the extent they related in any way to the subject matter
hereof.

     9.06 COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original but all of which
together will constitute one and the same instrument.

     9.07 HEADINGS. The section headings contained in this Agreement are
inserted for convenience only and shall not affect in any way the meaning or
interpretation of this Agreement.

     9.08 AMENDMENTS AND WAIVERS. No amendment of any provision of this
Agreement shall be valid unless the same shall be in writing and signed by
Imperial and Wexford. No waiver by an party of any default, misrepresentation,
or breach of warranty or covenant hereunder, whether intentional or not, shall
be deemed to extend to any prior or subsequent default, misrepresentation or
breach of warranty or covenant hereunder or affect in any way any rights arising
by virtue of any prior or subsequent such occurrence.

     9.09 SEVERABILITY. Any term or provision of this Agreement that is invalid
or unenforceable in any situation in any jurisdiction shall not affect the
validity or enforceability of the remaining terms and provisions hereof or the
validity or enforceability of the offending term or provision in any other
situation or in any other jurisdiction.

     9.10 EXPENSES. Except as otherwise expressly provided herein, each of the
parties will bear his or its own costs and expenses (including legal fees and
expenses) incurred in connection with this Agreement and the transactions
contemplated hereby.

     9.11 CONSTRUCTION. The parties have participated jointly in the negotiation
and drafting of this Agreement. In the event an ambiguity or question of intent
or interpretation arises, this Agreement shall be construed as if drafted
jointly by the parties and no presumption or burden of proof shall arise
favoring or disfavoring any party by virtue of the authorship of any of the
provisions of this Agreement. Any reference to any federal, state, local or
foreign statute or law shall be deemed also to refer to all rules and
regulations promulgated thereunder, unless the context requires otherwise. The
word "including" shall mean including without limitation. The parties intend
that each representation, warranty and covenant contained herein shall have
independent significance. If any party has breached any representation, warranty
or covenant contained herein in any respect, the fact that there exists another
representation, warranty or covenant relating to the same subject matter
(regardless of the relative levels of specificity) which the party has not
breached shall not detract from or mitigate the fact that the party is in breach
of the first representation, warranty or covenant.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the day
and year first written above.

                                       IMPERIAL PETROLEUM, INC.

                                       BY: /s/ JEFFREY T. WILSON
                                           -------------------------------------
                                           JEFFREY T. WILSON
                                           PRESIDENT

                                       WEXFORD TECHNOLOGY, INC.

                                       BY:
                                           -------------------------------------
                                           JEFFREY T. WILSON
                                           PRESIDENT

                                       13

<PAGE>   14

                                   EXHIBIT A

DESCRIPTION:

STOCKS:

     100% of the capital stock of Waste Conversion Corporation, a Delaware
corporation, including all equipment, inventory, vehicles, buildings, spare
parts, leases, claims, rights of way, or any other rights or obligations owned
by or used in the operations of the company. Includes all notes and accounts
receivable, notes and accounts payable and any and all assets and liabilities of
the company. (See attached unaudited financial statements for Waste Conversion).

AGREEMENTS:

     That certain Agreement to Exchange Stock by and between Wexford Technology,
Inc. and AquaDyn Technologies, Inc. dated November 26, 1997, including all
amendments thereto.

     That certain Joint Venture Agreement for The Recovery of Precious Metals by
and between Wexford Technology, Inc. and Phoenix Metals, Inc. dated June 3,
1997, including all amendments thereto.

     That certain Joint Venture Agreement for the Recovery of Crude Oil by and
between Waste Conversion Corporation and Crude Environmental Technologies, LLC
dated August 20, 1998, including all amendments thereto.

NOTES AND ACCOUNTS RECEIVABLE:

     That certain Note Receivable from AquaDyn Technologies, Inc. in the
principal amount of $218,300 as of January 31, 1999 and the Account Receivable
from AquaDyn Technologies, Inc. represented by accrued interest thereon in the
amount of $19,647 as of January 31, 1999.

NOTES AND ACCOUNTS PAYABLE:

     Those certain Notes and Accounts Payable as outlined below, including
accrued interest thereon:

     NOTES PAYABLE

<TABLE>
<CAPTION>
                                                  AS OF JANUARY 31, 1999
NAME                            DATE OF NOTE            PRINCIPAL
----                            ------------            ---------

<S>                               <C>                   <C>
Thomas J. Patrick                 9/25/97               $ 25,000
Phillip R. Archer                 8/19/97               $ 50,000
Eric Dezell                       1/17/95               $ 10,000
John P. Byrne                     8/19/98               $ 53,878
Howard S. Farmer                  8/15/98               $ 26,939
Robert Novenson                   7/14/94               $  7,500
John P. Nordhaus                  2/27/94               $ 25,000
Jeffrey S. Rogge                  3/ 7/94               $ 25,000
George L. Hagen                   7/14/94               $ 12,500
HN Corporation                    1/20/98               $ 25,000
Imperial Petroleum, Inc.          8/28/97               $467,835
Jeffrey T. Wilson                 1/5/98                $ 25,000
TOTAL                                                   $753,652
</TABLE>

                                       14

<PAGE>   15

                              EXHIBIT "A" (C0NT'D)

          ACCOUNTS PAYABLE

<TABLE>
<CAPTION>
                                                    AS OF JANUARY 31, 1999
         DESCRIPTION:                                       TOTAL
         ------------                                       -----

<S>                                                        <C>
        WCC Accounts Payable                               $175,028
        Jeffrey T. Wilson - Account Payable                $425,000
        Imperial Petroleum, Inc. - Account Payable         $ 45,000
        TOTAL                                              $645,028
</TABLE>

NOTE: IT IS THE EXPRESS INTENT OF THE PARTIES HERETO THAT WHETHER LISTED OR NOT,
IMPERIAL WILL ACQUIRE ALL OF THE ASSETS AND LIABILITIES OF WEXFORD AT THE TIME
OF THE CLOSING.

                                       15<PAGE>   1
                                                                    EXHIBIT 10.2

       10.2 Management Contract with Casino Padre Investment Company, LLC

<PAGE>   2

<TABLE>
<S>                                                                                  <C>
1.       Term of This Agreement..........................................................2

2.       Services Provided by the Management Company.....................................2

3.       The Management Company's Duties - Operational Term/Operational Phase............4

4.       The Management Company's Compensation..........................................10

5.       Owner's Duties.................................................................11

6.       Insurance......................................................................12

7.       Indemnification................................................................13

8.       Conflicts of Interest..........................................................13

9.       Casualty.......................................................................14

10.      Early Termination of Agreement.................................................14

11.      Damage or Destruction of Ship..................................................16

12.      Arbitration....................................................................17

13.      No Partnership or Joint Venture................................................17

14.      Severability...................................................................17

15.      Notices........................................................................17

16.      Assignment.....................................................................18

17.      Controlling Law................................................................18

18.      Binding Effect.................................................................18

19.      Counterparts...................................................................18

20.      Interpretation and Rules of Construction.......................................18

21.      Further Assurances.............................................................19

22.      Attorneys' Fees................................................................19

23.      Entire Agreement...............................................................19
</TABLE>

<PAGE>   3

                               MANAGEMENT CONTRACT

         This Agreement, dated and executed this 1st day of October, 1999 by and
between Casino Padre Investment Company LLC, a Limited Liability Company
organized under the laws of Nevada, (hereinafter referred to as the "Owner"),
with its principal offices in __________________________________, and sureBET
Casinos Inc. (sureBET), a corporation organized under the laws of the State of
Utah (hereinafter referred to as "The Management Company"), with its principal
office at 1610 Barrancas Avenue, Pensacola, FL 32501.

                              W I T N E S S E T H :

         WHEREAS, Owner will lease and operate the excursion gambling ship known
as the MV Entertainer (Official No. 500021) ("The Ship") from a docking site in
South Padre Island, Texas, together with it's supporting portside facility ( the
"Site"). The business to be conducted on the Ship and Site shall be called "the
Operations".

         WHEREAS, The Management Company covenants, represents and warrants,
that The Management Company has substantial experience in managing gaming ships
and casino operations including the management and operation of gaming tables,
coin operated slot machines, video poker machines, lottery, and keno
(hereinafter "gaming operations") and

         WHEREAS, Owner desires to employ The Management Company on an exclusive
basis as an independent contractor to assist Owner with the Operations to
provide employee training and necessary pre-opening activities, and, upon
opening to manage and operate the ship and gaming operations on behalf of and
for the account and benefit of Owner; and

         WHEREAS, the Owner is ready and willing to contract exclusively with
The Management Company to operate and manage the Ship and Gaming Operations, and

         WHEREAS, this Agreement will cover the following two phases with
respect to the Operations:

                  o        Pre-Operating Phase (period from the day of signing
                           this Agreement until the commencement of operations)
                           and

                  o        Operating Phase (period from the commencement of
                           operations until termination of this Agreement); and

         WHEREAS, The Management Company will act on behalf of and for the
benefit of Owner and as Owner's agent upon and subject to the terms and
conditions hereinafter set forth during all phases of this Agreement.

                                       1
<PAGE>   4

         NOW, THEREFORE, in consideration of the promises and the mutual
covenants contained herein, and for other valuable considerations acknowledged
by each of the parties to be satisfactory and adequate, the parties hereto
covenant and agree as follows:

1.       TERM OF THIS AGREEMENT

         1.1      The term of this Agreement shall commence on the date first
                  above written and shall expire and terminate at such time as
                  owners no longer lease or own the MV Entertainer and/or at the
                  dock site at South Padre Island, Texas unless earlier
                  terminated and provided in Section 9 herein.

2.       SERVICES PROVIDED BY THE MANAGEMENT COMPANY

         2.1      EXCLUSIVE MANAGER. Subject to the limitations and conditions
                  herein set forth, owner hereby appoints The Management
                  Company, and The Management Company hereby accepts appointment
                  as the exclusive manager of the Ship. The Management Company
                  shall use its best efforts to do and perform all services,
                  acts, or things necessary to oversee the design, layout,
                  construction, and interior decoration of the Ship and shall
                  assume full responsibility for employee training and other
                  pre-opening activities of the Gaming Operation, and,
                  thereafter, upon opening, to direct, supervise and manage the
                  operation. The operations and activities undertaken by The
                  Management Company pursuant to this Agreement shall be on
                  behalf of, and for the account and benefit of the Owner.

         2.2      ACTIVITIES. For purposes of this Agreement, Operations and
                  management hereunder shall include operations and management
                  related to food, beverage (including licensed liquor and
                  hospitality operations), showroom or entertainment, arcade or
                  parking operations or facilities ancillary to or undertaken in
                  conjunction with, but not directly related to Operations
                  (referred to herein as the "Ancillary Operations and
                  Facilities").

         2.3      THE MANAGEMENT COMPANY'S DUTIES - INITIAL TERM/PRE-OPERATIONAL
                  PHASE. Commencing with the execution of this Agreement and
                  continuing until commencement of the Operations, The
                  Management Company shall perform the following services:

                  2.3.1    The Management Company shall prepare pre-opening
                           budgets, preliminary proformas for the first year of
                           the operation and any other requirements related to
                           the Operations. The Management Company shall prepare
                           line item budgets for pre-opening and operations. The
                           pre-opening budgets and operational plans (herein the
                           "Pre-Opening Budget and Operational Plan") shall
                           include a schedule of expenditures, personnel
                           requirements, hiring schedules, employees' training
                           program, pre-marketing plan, organizational aspects
                           of the Operations during pre-

                                       2
<PAGE>   5

                           opening, and other matters which should be
                           accomplished for timely opening and a successful
                           operation.

                  2.3.2    Prepare detailed plans for the design, the layout and
                           construction of all facilities on the Operations, the
                           selection of all gaming equipment, tokens, chips,
                           cards, currency counters, wrapping machines, safes
                           and other security equipment the furniture and
                           furnishings to be utilized in all casino facilities,
                           and the uniforms to be worn by employees.

                  2.3.3    Select applicants and establish training programs for
                           all staff at a location provided by the Owner. All
                           training costs, including travel and accommodations,
                           salaries for trainers, training equipment, and
                           advertising will be borne and paid by the Owner. The
                           Management Company shall provide Owner a training
                           plan and budget in a timely manner.

                  2.3.4    Establish such accounting, auditing, recordkeeping
                           and reporting systems and systems of internal control
                           as are required.

                  2.3.5    Prepare Cash Flow Projections and Statements of
                           Pre-Opening cash requirements.

                  2.3.6    Commence recruitment and hiring of executives, key
                           employees, professionals and other personnel for and
                           on behalf of the Owner necessary to staff the Ship
                           and the Ancillary Operations and Facilities in a
                           timely fashion to insure the adequacy of such staff
                           upon commencement of operations.

                  2.3.7    The Management Company shall select and purchase or
                           lease the necessary gaming equipment (principally,
                           slot machines and gaming tables) in the name and for
                           the account of Owner utilizing funds made available
                           and provided by Owner. In addition, The Management
                           Company will select with the prior approval of the
                           Owner and purchase for the account of Owner, all
                           related accessory equipment, including, but not
                           limited to, gaming machine tokens, chips and cards
                           for table games, coin handling equipment, currency
                           counters, wrapping machines, special tools and other
                           equipment as well as spare parts. Owner reserves the
                           option to purchase or lease the aforementioned gaming
                           and accessory equipment directly from third parties
                           in the event that such purchase or lease form third
                           parties results in a lower cost to Owner. Owner shall
                           retain ownership over all of the foregoing gaming
                           equipment and related accessory equipment whether or
                           not described above, and will be responsible for
                           payment of any customs, export or other duties.

                  2.3.8    The Management Company shall establish a computerized
                           security and management system, a double key system,
                           a standardized security log machine cash box,
                           double-check accounting procedures, etc., as well as
                           appropriate control, supervision and surveillance
                           techniques.

                                       3
<PAGE>   6

                  2.3.9    The Management Company shall supervise the
                           installation of the gaming equipment.

                  2.3.10   The Management Company shall assist the Owner's
                           accounting and bookkeeping staff in order to keep
                           proper and detailed books, accounts and records as
                           required by Owner showing complete Pre-Operational
                           activities, the receipt and expenditure of monies in
                           connection therewith or otherwise for the account of
                           Owner or its authorized employees or agents, to
                           assist the members of the Owner's internal Audit
                           Department in carrying out an audit of such books,
                           accounts and records as Owner may from time to time
                           reasonably require. Owner may have a Finance and
                           Internal Audit Department which will review the
                           operations for internal controls, financial controls
                           and internal compliance at Owner's sole discretion.

                  2.3.11   The Management Company shall supervise the Owner's
                           accountants in order to submit to owner a
                           pre-Operating Phase budget, by month, within one week
                           after the pre-opening period has commenced.

                  2.3.12   The Management Company shall credit and allow, in
                           full, to Owner any commission, discount, rebate,
                           deduction or other allowance of any description,
                           which The Management Company shall receive or be
                           allowed in the course of its managing activities;
                           including and concerning the purchase of any gaming
                           equipment, gaming devices, gaming machinery and their
                           accessories, and other items described in Section
                           2.3.7 of this Agreement.

                  2.3.13   The Management Company shall submit to Owner at least
                           fourteen (14) days prior to the end of each month a
                           notice of The Management Company's anticipated cash
                           requirements for the following month. At the end of
                           each month, The Management Company shall provide
                           Owner with a statement which itemizes for that month
                           both the funds advanced to it by Owner and the cash
                           disbursements made during last month. All excess
                           funds held by The Management Company shall be held in
                           interest bearing accounts with interest accruing to
                           Owner.

3.       THE MANAGEMENT COMPANY'S DUTIES - OPERATIONAL TERM/OPERATIONAL PHASE

         3.1      During the Operational Term, The Management Company shall on
                  behalf of Owner, and for the benefit and account of, and at
                  Owner's expense, perform the following enumerated duties upon
                  the opening of the commencement of operations:

                  3.1.1    Comply with federal, state, county and city laws.

                                       4
<PAGE>   7

                  3.1.2    All business and casino affairs in connection with
                           the day-to-day operation, management, and maintenance
                           of the Ship shall be the sole and exclusive
                           responsibility of The Management Company who is
                           hereby granted the necessary power and authority to
                           carry out The Management Company's duties and
                           responsibilities under this Agreement. Owner hereby
                           warrants to The Management Company uninterrupted
                           control of the Operation and warrants that it will
                           not interfere or involve itself in any way with the
                           day-to-day operations. The owner shall direct any
                           questions regarding management in writing to an
                           officer of The Management Company on any matter
                           connected with the Operation or this Agreement. Any
                           comments, recommendations, suggestions or requests
                           for change shall be made only to officers of The
                           Management Company and shall not be made to the local
                           general The Management Company or any other employee
                           on the premises. The Management Company shall have
                           absolute discretion in the determination of: (1)
                           ticket rates, (2) food and beverage selection and
                           prices, (3) all charges of any nature to passengers
                           for services performed by The Management Company for
                           the Ship, (4) the terms of admittance on the Ship,
                           (5) terms of rental for entertainer, (6) labor
                           policies, (7) publicity and promotion, (8) rules and
                           regulations regarding gaming and wagering, and (9)
                           contracts, leases and agreements int he ordinary and
                           customary course of business operations.

                  3.1.3    At the time of commencement of business, The
                           Management Company shall provide at Owner's expense
                           all necessary inventories of marine supplies, food,
                           beverage, paper products, gaming supplies and other
                           operational supplies and consumables as The
                           Management Company deems necessary for the Operation.

                  3.1.4    In the name of and on behalf of the Owner, The
                           Management Company shall hire, promote, discharge and
                           supervise the work of the executive staff, including
                           the General Manager, assistant manager, and
                           department heads. Through such executive staff, the
                           General Manager shall supervise the hiring,
                           promotion, discharge and work of all other operating
                           and service employees. All of The Management
                           Company's corporate employees not employed in or
                           about the Operation, shall be employees of The
                           Management Company and on The Management Company's
                           payroll, and Owner shall not be liable to such
                           employees for their wages or compensation, nor to The
                           Management Company or others for any act or omission
                           on the part of such employees, except with respect to
                           the General Manager as provided herein. Except for
                           the General Manager, all Casino employees employed in
                           or about the Casino shall be employees and paid by
                           the Owner. The Management Company shall have the
                           authority in all cases to create appropriate job
                           descriptions for and hire, promote, discharge and
                           supervise the work of any such employees. The
                           Management Company shall procure and maintain, at the
                           Owner's expense, adequate workmen's compensation
                           insurance and such other insurance as parties
                           required covering all the Owner's employees.

                                       5
<PAGE>   8

                  3.1.5    The Management Company shall appoint one of its
                           principal executive officers to serve as the General
                           Manager. The General Manager shall perform his duties
                           on-site and shall relocate to the South Padre Island,
                           Texas area. Owner shall be responsible for
                           reimbursement of all costs attributable to the
                           General Manager, including but not limited to salary,
                           bonuses, relocation costs, fringe benefits,
                           retirement benefits, and housing allowances.

                  3.1.6    The Management Company shall establish and supervise,
                           at Owner's expense, an accounting department with
                           appropriate casino accounting and cost systems,
                           including such accounting, recordkeeping and
                           reporting systems as may be required. and in
                           accordance with Standard Operating Procedures. At
                           Owner's expense, The Management Company shall prepare
                           and timely file or cause the preparation and timely
                           filing of all reports and returns required by such
                           laws and regulations, and all reports and returns
                           relating to withholding taxes, social security taxes,
                           unemployment insurance, disability insurance, and all
                           other statements and reports pertaining to employment
                           with respect to The Management Company's and Owner's
                           payroll in or about the Casino. The Management
                           Company shall provide copies of all such reports and
                           returns to Owner not later than the time such are
                           required to be filed or otherwise submitted to the
                           appropriate governmental authority, and shall furnish
                           the Owner with proof of payment of taxes and fees
                           required to be paid pursuant to federal, state or
                           local laws. The Management Company shall be
                           responsible for the preparation or filing of any
                           federal, state or local income tax or franchise tax
                           returns on behalf of Owner.

                  3.1.7    On behalf of, for the benefit of, at the expense of
                           the Owner, and in accordance with Standard Operating
                           Procedures prepared by The Management Company,
                           arrange for an appropriate security force sufficient
                           to reasonably assure safety of customers, personnel,
                           monies, and property of the Operation facility. Any
                           security force shall be comprised of security
                           officers employed directly by the Owner or provided
                           under a contract with a third party and the Owner.
                           The third party or security officer shall report
                           directly to The Management Company. Each security
                           officer shall be bonded in sufficient amounts
                           commensurate with their enforcement duties and
                           obligations. The cost of such security force shall be
                           included in the operating expenses of the gaming
                           facility. The Management Company shall also receive,
                           consider and handle the complaints of all guests or
                           users of all facilities or gaming devices.

                  3.1.8    Manage the selecting of vendors for the furnishing
                           electricity, gas, water, steam, telephone, cleaning,
                           vermin exterminators, air-conditioning maintenance,
                           master television antennas and/or master cable
                           television service, and at the expense of the Owner,
                           purchase or lease all materials and supplies,
                           including gaming devices and equipment.

                                       6
<PAGE>   9
                  3.1.9    Arrange for the making or installation, in the name
                           of and at the expense of Owner, of alterations,
                           repairs, decorations, replacements, equipment or
                           installations.

                  3.1.10   Open and maintain, in accordance with Standard
                           Operating Procedures prepared by The Management
                           Company, and on behalf of the Owner, one or more
                           operating account(s) in a money market fund or funds
                           or banking institution or institutions selected by
                           the Owner and deposit therein all monies furnished by
                           the Owner as bankroll or other working funds, all
                           monies received, retained or set aside as reserves by
                           The Management Company for or on behalf of Owner and
                           deposit daily therein all monies generated by the
                           daily operations. The Management Company shall be the
                           signer on all such accounts. Provided, further, that
                           Owner shall indemnify and hold The Management Company
                           harmless from any liability for payroll taxes or sums
                           owed which have been incurred in the operation with
                           respect to Owner's employees and payroll, but for
                           which there are insufficient funds to pay. The
                           amounts of such bankroll, working funds and reserves
                           shall be in an amount determined necessary and
                           appropriate by the Owner. The Management Company
                           shall pay from such accounts, expenses reasonably
                           required for the operation , including without
                           limitation, all gaming equipment taxes and fees, and
                           all assessments and charges of every kind imposed by
                           any governmental authority having jurisdiction and
                           interest and appraisal fees; fines, penalties and
                           court disbursements incurred in connection with the
                           operation; premiums on policies and insurance and all
                           expenses and payments authorized by this Agreement.

                  3.1.11   Comply with all statutes, ordinances, laws, rules,
                           regulations, orders and determinations affecting or
                           issued in connection with the Operation by any
                           governmental authority having jurisdiction thereof.
                           The Management Company shall notify Owner of all such
                           orders, determinations and requirements and any
                           alleged violation of any statute, ordinance, law,
                           rule, regulations, order determination or requirement
                           as soon as The Management Company receives notice
                           (formal or informal) thereof. The Management Company
                           shall make any alterations or repairs so ordered or
                           so required. Unless otherwise directed by Owner, The
                           Management Company, at Owner's expense may protest or
                           contest in an appropriate court or forum any order,
                           rule or regulation or claimed violation thereof
                           affecting the Operation. The Management Company may
                           settle or compromise any such claim for less than
                           $25,000.00 in its discretion (and shall notify Owner
                           promptly of such settlement or compromise). All fines
                           and penalties imposed on The Management Company or
                           Owner under this subsection except as a result of The
                           Management Company's gross negligence (unless at the
                           specific direction of Owner) shall be paid by the
                           Owner and Owner shall indemnify, protect and defend
                           The Management Company from and against any liability
                           therefore. All fines and penalties imposed upon
                           Owner, or imposed on The Management Company as the
                           result of The Management Company's compliance with
                           Owner's specific

                                       7
<PAGE>   10

                           directions, shall be paid by Owner. Legal fees for
                           any action shall be limited to $25,000.00 unless
                           otherwise agreed to by Owner.

                  3.1.12   Determine the number and types of gaming tables and
                           gaming machines, pay back percentages, table limits,
                           changes in table limits, number of decks and manner
                           of dealing blackjack, general casino rules and game
                           rules, treatment of customers by casino personnel and
                           dealers, settlement of disputes with patrons, the
                           conduct of casino personnel while off duty, including
                           but not limited to consumption of alcoholic
                           beverages, meals, break area, association with
                           casino, and other activities which reflect on the
                           business of the Owner and The Management Company.

                  3.1.13   Institute any necessary legal action or proceeding to
                           collect charges, rents or other income for, or debts
                           owing to the Operation or to oust or dispossess
                           guests, or other persons in possession or to cancel
                           or terminate any lease for the breach thereof or
                           default thereunder, all in accordance with Standard
                           Operating Procedures.

                  3.1.14   At Owner's expense, render statements to the Owner as
                           follows:

                           (a)      On or before the fifteenth (15th) day of
                                    each calendar month, The Management Company
                                    shall render to Owner, and to any persons
                                    designated by Owner, a detailed profit and
                                    loss statement prepared on a cash basis for
                                    the operation for the preceding calendar
                                    month and for the portion of the operating
                                    year ended on the last day of such preceding
                                    calendar month and for such calendar month
                                    and calendar year a statement of all capital
                                    expenditures made by The Management Company
                                    for the account of the Owner, a statement of
                                    management compensation, lease payments, and
                                    any amounts distributable to the Owner.

                           (b)      The Management Company shall render to
                                    Owner, to the certified public accountants
                                    designated Owner and to any other persons
                                    designated by Owner, in a timely fashion,
                                    copies of such records, reports, financial
                                    statements, audits and supplemental
                                    information as may be reasonably requested
                                    by Owner and a required by all applicable
                                    federal, state, county and city laws and
                                    regulations.

                           (c)      The Management Company shall make available
                                    to the Owner and its designated agents, who
                                    shall have the right to inspect, copy and
                                    analyze them, all journals, ledgers and any
                                    other original source documents, internal
                                    statements and reports, analyzes and other
                                    information kept or used by The Management
                                    Company in connection with rendering the
                                    reports, balance sheets and statements
                                    described in this Section 3.1, which are
                                    deemed necessary by Owner to determine and
                                    satisfy Owner that The Management Company is
                                    complying with this Agreement.

                                       8
<PAGE>   11

                          3.1.15(a) The Management Company shall, at Casino
                                    Padre's expense, maintain and repair the
                                    Ship, its furnishings, equipment in
                                    accordance with The Management Company's
                                    operational standards. Except as set forth
                                    in subsection (c) below, The Management
                                    Company is authorized to enter into in the
                                    name of and expense of Owner all contracts
                                    and agreements as are in The Management
                                    Company's opinion necessary for the
                                    operation, supply and maintenance of the
                                    Ship and to pay the same when due. It is
                                    accepted that over the term of this
                                    Agreement, expenditure on maintenance and
                                    repairs will average five (5%) of gross
                                    revenue annually.

                                (b) In addition to ordinary maintenance and
                                    repair, Owner authorizes The Management
                                    Company to expend such amounts for ordinary
                                    capital replacement items as are required to
                                    operate the Ship in accordance with The
                                    Management Company's standards and comply
                                    with The Management Company's programs for
                                    renovation, modernization and improvement
                                    then in effect. There shall be deducted in
                                    each fiscal month an amount equal to Ten
                                    Thousand Dollars ($10,000.00) per month for
                                    a "reserve fund" which shall be recorded on
                                    the books of account as "Reserve for Capital
                                    Replacements" (appearing as a deduction
                                    below the "net profit after tax" level in
                                    the income and expense statement). Each
                                    fiscal month , the amount so deducted shall
                                    be placed into an interest bearing account
                                    established in Owner's name at a financial
                                    institution of Owner's selection with The
                                    Management Company's designees being the
                                    only authorized signatories on said account.
                                    Any expenditures for capital replacements,
                                    substitutions or additions, which have been
                                    budgeted, may be made without Owner's
                                    approval, by The Management Company to the
                                    extent available from the reserve fund
                                    (including unused accumulations from earlier
                                    years).

                                    In the event that the reserve fund balance
                                    is below budget for the ensuring year, Owner
                                    shall supply the necessary funds by deposit
                                    to that account within ten (10) days of
                                    receipt of notice to that effect. All
                                    amounts remaining in the reserve fund at the
                                    close of each fiscal year shall be carried
                                    forward and retained in the reserve until
                                    fully used as herein provided.

                                    Upon termination of this Agreement, The
                                    Management Company's rights to any unused
                                    portion of the reserve fund shall terminate
                                    and the balance of the fund shall be paid
                                    over to Owner.

                                (c) The Management Company shall be required to
                                    obtain the prior written consent of Owner,
                                    which shall not be unreasonably withheld,
                                    before entering into any contract, agreement
                                    or purchase involving structural repair or
                                    rehabilitation of the Ship or the repair

                                       9
<PAGE>   12

                                    or replacement of any furnishings, fixtures
                                    and equipment if the amount payable under
                                    such contract exceeds the sum of Twenty-Five
                                    Thousand Dollars ($25,000.00) unless said
                                    amount was approved as an annual or
                                    quarterly budgeted item. The foregoing
                                    amount is based upon the purchasing power of
                                    money at the date of this Agreement and
                                    shall be adjusted by The Management Company
                                    when deemed necessary to retain the same
                                    purchasing power, using the Cost of Living
                                    Index figures of the United States Bureau of
                                    labor Statistics as may be adjusted. In the
                                    event of an emergency situation requiring
                                    immediate action to protect persons or
                                    property or if required by governmental
                                    regulations, The Management Company in its
                                    sole discretion is hereby authorized upon
                                    notice to Owner but without Owner's prior
                                    consent, to enter into contracts occasioned
                                    by such emergency or governmental
                                    regulations in excess of such sum.

                                (d) The Management Company shall have the right
                                    to make such alterations, additions or
                                    improvements in or to the Ship as are
                                    customarily made in the operation of ships,
                                    provided, however, that no alterations,
                                    additions or improvements involving a
                                    fundamental change in the character of the
                                    Ship shall be made without Owner's prior
                                    written approval if the amount payable under
                                    the contract for said alteration, addition
                                    or improvement exceeds the sum of
                                    Twenty-Five Thousand Dollars ($25,000.00)
                                    which amount shall be adjusted as provided
                                    in (c), immediately above.

4.       THE MANAGEMENT COMPANY'S COMPENSATION

         4.1      INITIAL TERM FEES. During the Pre-Operational Phase (i.e., the
                  Initial Term), and in accordance with the plan and budgets
                  prepared jointly by the Owner and The Management Company, no
                  fees shall be paid to The Management Company for its services
                  provided pursuant to this Agreement, except for training of
                  the Casino employees in anticipation of the Casino opening
                  ("Pre-Opening Casino Employee Training Services"). Owner shall
                  bear all out-of-pocket training costs incurred by The
                  Management Company and pay in advance such sums as may be
                  reasonably requested by The Management Company for anticipated
                  training costs. The Management Company will use its best
                  efforts to coordinate such training activities within the two
                  months preceding an anticipated Casino opening date, subject
                  to any changes therein.

         4.2      OPERATIONAL TERM MANAGEMENT FEE. In consideration of the
                  services to be provided by The Management Company pursuant to
                  the provisions of this Agreement, Owner shall pay to The
                  Management Company fee (hereinafter referred to as the
                  "Operational Term Management Fee") in an amount equal to the
                  sum of the following:

                                       10
<PAGE>   13

                  4.2.1    Basic Management Fee. An amount equal to two (2%)
                           percent of the accumulated "Gross Revenue" payable
                           monthly in arrears on the 10th day of each month.

                  4.2.2    Incentive Management Fee. An amount equal to seven
                           (7%) percent of Operating Profit referred to as
                           "Earnings Before Interest Taxes Depreciation and
                           Amortization" (EBITDA), as such terms are hereinafter
                           defined, payable quarterly.

         4.3.     Gross Revenue. For purposes of computing the Operational Term
                  Management Fee herein, "Gross Revenue" shall mean revenue from
                  all sources at the Operation including, but not limited to,
                  ticket fares, food and beverage sales, gift shop sales, casino
                  win, as well as the proceeds of any business interruption
                  insurance policy carried by Owner. Gross Revenue shall not
                  include interest income or tips given to employees.

         4.4      Operating Profit shall be defined as gross revenue, less all
                  operational expenses of the operation excluding however;

                  (a)      Depreciation of furniture, fixtures, and equipment.
                  (b)      Debt service payments including principal and
                           interest, under mortgages or liens on the operation
                           or personal property or rental payments under leases
                           of capital assets with options to purchase.
                  (c)      Property taxes and assessments
                  (d)      Amortization of pre-opening expenses
                  (e)      Capital expenditures including replacement of
                           furniture, fixtures, and equipment, but not excluding
                           maintenance and normal repairs.
                  (f)      Charter payments for the vessel.

         4.5      Management fees and all reimbursable expenses due The
                  Management Company shall be a first charge and priority on
                  gross revenue and shall be paid prior to the payment of any
                  other expenses incurred in said operation and shall be paid in
                  arrears monthly on the tenth day of each month during the term
                  hereof. Any adjustments to the Management fees shall be based
                  on the final adjustments to the Company's operating statements
                  by its auditors.

5.       OWNER'S DUTIES

         5.1      Owner shall provide consultants, policy support, and
                  information to reasonably assist The Management Company in the
                  discharge of The Management Company's duties and
                  responsibilities hereunder.

         5.2      During the Operational Term, Owner shall be responsible for
                  providing and maintaining all necessary cash and cash reserves
                  adequate for the opening of the operation and the day-to-day
                  operation.

                                       11
<PAGE>   14

         5.3      During the term of this Agreement, Owner shall provide
                  sufficient funds to bankroll gaming operations and working
                  capital in amounts which the Owner and The Management Company
                  mutually agree are adequate to assure the uninterrupted and
                  efficient operation.

6.       INSURANCE

         6.1      The Management Company shall maintain, at Owner's expense,
                  insurance of such kinds and amounts as shall be required to
                  carry pursuant to the provisions of any deed of trust, loan
                  agreement, lease, charter or other agreement affecting the
                  operation, as well as any other insurance that may be required
                  or necessary by applicable gaming regulations. The Management
                  Company shall provide the Owner with copies of all insurance
                  policies as The Management Company may from time to time
                  request.

         6.2      There shall be maintained, at the expense of Owner, throughout
                  the term of this Agreement such fidelity and other bonds as
                  may be required from time to time for the protection of the
                  respective interests of the Owner and The Management Company.
                  Any such bonds shall also protect the interests of the holder
                  of any mortgage, or deed of trust, and shall be in such
                  amounts and obtained from such surety companies as The
                  Management Company, lender or mortgage holder shall direct.

         6.3      All policies insuring against liability, damage to the Ship or
                  portions thereof or interruption of business, rent or the like
                  and fidelity and other bonds shall name Owner, The Management
                  Company, and such other parties as may be required by the
                  provisions of any mortgage, lease, other agreement or
                  regulation as the insured thereunder, as their respective
                  interest may appear. All policies of hazard insurance shall
                  include loss payment clauses in the form required by any deed
                  of trust, lease or other agreement. All insurance and bond
                  premiums shall be paid from the Casino operating accounts.
                  Certificates of all policies of insurance and duplicates
                  thereof shall be delivered to the Owner, The Management
                  Company, any holder of any deed of trust or to such other
                  persons or governmental authorities as Owner shall direct.

         6.4      Provided The Management Company or Owner shall procure and
                  keep in force all of the procurable insurance mutually agreed
                  upon by Owner and The Management Company and required to be
                  obtained pursuant to the foregoing provisions of this Section,
                  and shall name The Management Company as additional insured
                  thereon, then to the extent that the same are covered by such
                  insurance, neither Owner nor The Management Company shall
                  assert against the other any claims for any losses, damages,
                  liability or expenses (including attorneys' fees) incurred or
                  sustained by either of them on account of damage or injury to
                  person or property arising out of the ownership, operation or
                  maintenance of the Casino. The parties agree that all policies
                  of insurance to be procured by The Management Company or Owner
                  shall permit the foregoing waiver.

                                       12
<PAGE>   15

         6.5      Owner shall give to The Management Company, and The Management
                  Company shall give to Owner, prompt notice of any claim made
                  against Owner or The Management Company in excess of Five
                  Thousand and no/100 Dollars ($5,000.00), and each party shall
                  cooperate fully with each other and with any insurance carrier
                  to the end that all such claims will be properly investigated,
                  defended and compromised. Claims should be promptly submitted
                  to the insurance carrier, and if said claims are less than the
                  deductible, they may be settled by The Management Company, in
                  its sole discretion.

7.       INDEMNIFICATION

         7.1      Owner shall indemnify and hold The Management Company, its
                  officers, directors, agents, employees or affiliates harmless
                  against any losses, damages or expenses, or claims of third
                  parties (including legal and other fees) in excess of the
                  amount of any insurance proceeds paid to The Management
                  Company, which is incurred or sustained by The Management
                  Company as a result of or attributable to any breach of this
                  Agreement, negligent or intentional acts, violation of any
                  law, rule, regulation or agreement with any governmental
                  authority by Owner or any person or entity acting on behalf of
                  or who is under the control or supervision of Owner.

         7.2      The Management Company shall indemnify and hold Owner, its
                  officers, directors, agents, employees or affiliates harmless
                  against any losses, damages or expenses, or claims of third
                  parties (including legal and other fees) in excess of the
                  amount of any insurance proceeds paid to Owner, which is
                  incurred or sustained by Owner as a result of or attributable
                  to any breach of this agreement with any governmental
                  authority by Owner or any person or entity acting on behalf of
                  or who is under the control or supervision of Manager.

8.       CONFLICTS OF INTEREST

         The Company may be subject to conflicts of interest arising out of its
         relationship with The Management Company. The Management Company,
         through its officers and directors intends to exercise its best
         business judgment and discretion in resolving such conflicts which may
         rise but do not intend necessarily to accord priority to the Company
         with respect to any other company or entity with which it may be
         affiliated. The conflicts of interest which may arise include, but are
         not limited to, the following:

         8.1      Other Investments by The Management Company. The Management
                  Company may in the future, directly or indirectly engage in
                  other business ventures, including casino vessels or casino
                  ventures, and neither the Company nor any Unit Holder will be
                  entitled to any interest with respect to such other ventures.
                  These other business ventures could be in competition with the
                  business of this Company. The Management Company intends to
                  continue other activities in the casino industry and to enter
                  into other ventures in the future.

         8.2      Lack of Separate Representation. The Company and The
                  Management Company are not represented by separate counsel.
                  The attorneys, accountants and other experts performing
                  services for the Company in connection with the formation of

                                       13
<PAGE>   16

                  the Company and this offering also have represented The
                  Management Company and may provide future services to both
                  entities. Should a dispute arise between the Company and The
                  Management Company, the Management Company will, if and when
                  appropriate, cause the Company to retain separate counsel. The
                  Company has not retained independent counsel to represent
                  interests of investors in connection with the offering of the
                  Units or the preparation of the Management. SUCH COUNSEL DO
                  NOT PURPORT TO HAVE ACTED ON BEHALF OF THE UNIT HOLDERS. EACH
                  PROSPECTIVE INVESTOR SHOULD CONSULT INDEPENDENT COUNSEL IN
                  CONNECTION WITH AN INVESTMENT IN THE COMPANY.

9.       CASUALTY

         9.1      In the event of any damage or loss to the Casino by fire or
                  other casualty, The Management Company shall act as follows:
                  If the damage or loss involves more than Five Thousand Dollars
                  ($5,000.00), The Management Company shall give immediate
                  written notice thereof to Owner.

         9.2      Regardless of the amount of such damage or loss, as agent for
                  Owner, The Management Company shall promptly make claim for
                  the proceeds of any insurance covering such damage or loss,
                  and in owner's name shall litigate or negotiate for payment of
                  such proceeds, selecting counsel if necessary for such
                  purpose, unless counsel is designated by Owner.

         9.3      The Management Company shall give written notice of any
                  proposed settlement to Owner, shall settle such claim and, on
                  behalf of Owner, collect the proceeds thereof; provided that,
                  Owner's written consent, which shall not be unreasonably
                  withheld or delayed, shall be required to validate the
                  settlement of any claim for loss or damage in excess of
                  Twenty-Five Thousand Dollars ($25,000.00).

10.      EARLY TERMINATION OF AGREEMENT

         10.1     Except as to liabilities or claims which shall have accrued or
                  arisen prior to such termination, including, without
                  limitation, the amount of all accrued Operational Term
                  Management Fee payable to The Management Company pursuant to
                  Section 4.2, through the date of any such termination (which
                  shall survive termination), at the election of Owner, all
                  obligations hereunder may be terminated only upon the
                  occurrence of any of the following events:

                  (1)      If The Management Company or any of it's officers or
                           Directors convicted of a felony or misdemeanor (other
                           than a conviction for a traffic offense), or if the
                           Owner reasonably believes The Management Company
                           jeopardizes or causes the withdrawal of any gaming
                           license, permit or authorization necessary to conduct
                           the business of the Owner, or

                  (2)      If there shall be filed by The Management Company in
                           any court pursuant to any statute either of the
                           United States or of any state a petition in
                           bankruptcy or insolvency or for a reorganization or
                           for the appointment of

                                       14
<PAGE>   17

                           a receiver or trustee of all or a substantial part of
                           The Management Company's property, or if The
                           Management Company makes an assignment for or
                           petitions for or enters into an arrangement for the
                           benefit of creditors or if an involuntary petition in
                           bankruptcy is filed against The Management Company
                           which is not dismissed within ninety (90) days
                           thereafter.

         10.2     Except as to liabilities or claims which shall have accrued or
                  arisen prior to such termination, including, without
                  limitation, the amount of all accrued Operational Term
                  management Fee payable to The Management Company pursuant to
                  Section 4.2, through the date of any such termination (which
                  shall survive termination), at the election of The Management
                  Company, all obligations hereunder may be terminated only upon
                  the occurrence of any of the following events:

                  (1)      If the Owner shall fail or refuse to provide the
                           capital and operating funds required pursuant to a
                           budget previously approved by owner, after ten days
                           prior written notice of such failure or refusal, or

                  (2)      Owner's failure or refusal to pay The Management
                           Company the Operational Term Management Fee payable
                           to The Management Company pursuant to Section 4.2, or

                  (3)      the occurrence of a default under any of the Loan
                           Agreements, or

                  (4)      In the event of the sale of all or substantially all
                           of the assets of the Operation, in which event The
                           Management Company may elect to terminate this
                           Agreement and Owner shall pay The Management Company
                           the sum of One Hundred Thousand Dollars ($100,000.00)
                           which shall be paid at the time of the closing of any
                           such sale. Owner and The Management Company have
                           negotiated the amount provided for above and agree
                           and acknowledge that it represents fair payment and
                           is not intended to be nor shall it be deemed to be a
                           penalty, or

                  (5)      In the event more than fifty (50%) percent of the
                           outstanding voting capital stock of Owner is sold, or
                           in the event of the merger or liquidation and
                           dissolution of Owner, or

                  (6)      If there shall be filed by Owner in any court
                           pursuant to any statute either of the United States
                           or of any state a petition in bankruptcy or
                           insolvency or for a reorganization or for the
                           appointment of a receiver or trustee of all or a
                           substantial part of Owner's property, or if Owner
                           makes an assignment for or petitions for or enters
                           into an arrangement for the benefit of creditors or
                           if an involuntary petition in bankruptcy is filed
                           against Owner which is not dismissed within ninety
                           (90) days thereafter.

         10.3     Upon termination of this Agreement by either party, The
                  Management Company shall turn over to Owner all property,
                  books and records of the Casino, and Owner

                                       15
<PAGE>   18

                  and The Management Company shall fully cooperate with each
                  other in connection with all matters relating to the Casino
                  which took place prior to termination.

11.      DAMAGE OR DESTRUCTION OF SHIP

         11.1     Subject to the requirements of any deed of trust, mortgage or
                  other security device encumbering the Ship or its property and
                  to the extent that there are insurance proceeds available to
                  Owner, if the Ship, or any portion thereof, shall be damaged
                  or destroyed at any time or times during the term of this
                  Agreement by storm, fire or any other casualty, Owner, at no
                  expense or risk to The Management Company, shall apply
                  available insurance proceeds to repair, rebuild or replace the
                  same (such repairing, rebuilding or replacing being herein
                  called "restoration") so that after such restorations the Ship
                  shall be substantially the same as prior to such damage or
                  destruction, and all proceeds of insurance, other than
                  business interruption, shall be made available to Owner for
                  such purpose; provided that, The Management Company shall have
                  the right to ensure that such proceeds of insurance shall be
                  applied to such restoration. If Owner fails to undertake such
                  restoration within ninety (90) days after such storm, fire or
                  other casualty, or shall fail to complete the same diligently,
                  The Management Company may, but shall not be obligated to
                  undertake or complete such restoration and, to the extent of
                  available insurance proceeds, shall be entitled, upon demand,
                  to be repaid therefor, including all necessary incidental
                  costs and expense incurred in connection therewith, together
                  with interest on the aggregate out-of-pocket amount expended
                  at a per annum rate equal to the prime or base rate for
                  commercial loans publicly announced by Chase Manhattan Bank,
                  National Association, or its successors, at the time of such
                  expenditure, plus two percent (2%) per annum (but not to
                  exceed the maximum interest allowed by law) from the date of
                  making such expenditure or expenditures until repayment
                  thereof. In such case, the proceeds of insurance shall be made
                  available to The Management Company for this purpose; provided
                  that, Owner shall have the right to ensure that such proceeds
                  of insurance shall be applied to such restoration. If the
                  restoration costs less than One Hundred Thousand and 00/100
                  Dollars ($100,000.00) to complete, The Management Company
                  shall supervise all aspects of the restoration at no
                  additional cost to the Owner, provided, however, if the
                  proceeds of insurance provide for a supervisory fee, such fee
                  shall be paid to The Management Company up to an amount not to
                  exceed Twenty Five Thousand and 00/100 Dollars ($25,000.00).

         11.2     Notwithstanding anything contained in this Section 11.2 to the
                  contrary, if, in connection with any casualty, the Ship shall
                  be so damaged or destroyed such that it cannot be restored
                  within nine (9) months after the casualty, and Owner shall
                  elect not to use the proceeds of insurance to rebuild, repair
                  or restore the Ship, then either Owner or The Management
                  Company shall have the right, exercisable by written notice to
                  the other, given within ninety (90) days form the occurrence
                  of such casualty, to terminate this Agreement as to such
                  damaged or destroyed Ship.

                                       16
<PAGE>   19

         11.3     Should the period of restoration exceed ninety (90) days, then
                  commencing on the 91st day, The Management Company shall be
                  entitled to one-half of its Management Fees during the
                  remaining period of restoration based on the average monthly
                  fee paid to The Management Company during the three months
                  immediately preceding the casualty.

12.      ARBITRATION

         The parties agree that any dispute arising out of interpretation or
         performance of this Agreement involving an aggregate sum of Two Hundred
         Thousand and 00/100 Dollars ($200,000.00) or less, shall be submitted
         to binding arbitration in Pensacola, Florida in accordance with the
         Commercial Arbitration Rules of the American Arbitration Association by
         arbitrators chosen and paid for as provided in this Section 12. Owner
         and The Management Company shall each select and pay the fees and
         expenses of one arbitrator and those two shall select a third
         arbitrator. The fees of the third arbitrator shall be paid one-half by
         the Owner and one-half by The Management Company. The arbitrators shall
         have the power to award attorneys' fees and costs of arbitration to the
         prevailing party in any arbitration under this Section. The arbitrators
         shall set forth the reasons for any decision.

13.      NO PARTNERSHIP OR JOINT VENTURE

         Unless specifically provided for by a separate written agreement, the
         relationship between the Owner and The Management Company is not
         intended to be nor shall it be deemed a partnership or joint venture.
         The Owner and The Management Company agree that neither shall pledge
         the other's credit in any manner and sum and that all property in and
         about the Ship shall be and will remain the property of the Owner free
         and clear of all liens and security interests of or incurred by The
         Management Company except as may otherwise be specifically provided for
         in this Agreement.

14.      SEVERABILITY

         If any provisions of this Agreement shall be determined by a court of
         competent jurisdiction to be illegal, invalid or unenforceable, such
         determination shall not effect or impair the validity, legality, or
         enforceability of the remaining provisions contained herein.

15.      NOTICES

         Any notice, demand, request or other instrument which may be or is
         required to be given under this Agreement shall be delivered in person
         by prepaid recognized national or international courier service, return
         receipt requested, or sent by United States registered or certified
         mail, postage prepaid, return receipt requested, addressed to the
         respective parties at the addresses set forth on the signature page(s)
         below or at such other address as such party shall designate by like
         written notice, and shall be effective upon receipt. A copy of any
         notice, demand, request or other instrument which may be or is required
         to be given under this Agreement shall be sent to:

                                       17
<PAGE>   20

                              (names and addresses)

         A copy of each notice, demand, request or other instrument transmitted
         in accordance with this Section shall simultaneously be transmitted by
         facsimile machine to the Owner, The Management Company, and above-named
         counsel at the following telephone numbers:

                  Owner Facsimile No:
                  The Management Company Facsimile No: (850) 433-5409

16.      ASSIGNMENT

         Neither this agreement nor any other rights or obligations hereunder
         may be assigned or transferred by either party without express written
         consent of The Management Company and Owner, which consent shall not be
         unreasonably withheld.

17.      CONTROLLING LAW

         This Agreement shall be governed by and construed in accordance with
         the laws of the United States where applicable and otherwise by the
         laws of the State of Florida, except those pertaining to choice of law.
         Venue for all disputes shall be in the State of Florida, USA, and the
         parties consent to such venue in all cases.

18.      BINDING EFFECT

         This Agreement shall be only for the benefit of and binding upon the
         Owner and The Management Company and their respective successors and
         assigns.

19.      COUNTERPARTS

         This Agreement may be executed in counterparts, each of which shall be
         deemed an original of this Agreement.

20.      INTERPRETATION AND RULES OF CONSTRUCTION

         Section and subsection headings are for reference purposes only and are
         not intended to affect the meaning, interpretation, or construction of
         this Agreement. All references to amounts expressed in dollars shall
         refer to the lawful currency of the United States of America. Owner and
         The Management Company acknowledge and agree that they have each
         reviewed this Agreement and that any rule of construction resolving
         ambiguities against the drafting party shall not be employed in the
         interpretation of this Agreement or any amendment, exhibit or schedule
         hereto.

                                       18
<PAGE>   21

21.      FURTHER ASSURANCES

         Owner and The Management Company hereby agree for themselves and for
         their respective successors and assigns to execute and deliver any
         instruments and to perform any acts which may be necessary or helpful
         to carry out the purposes of this Agreement.

22.      ATTORNEYS' FEES

         In the event a suit or proceeding is brought by Owner or The Management
         Company to enforce or to defend its provisions, or to seek remedy for
         any breach hereof, the prevailing party shall be entitled to receive
         its reasonable attorneys' fees and disbursements incurred in connection
         with such suit or proceeding, including fees and expenses incurred in
         any appellate proceedings.

23.      ENTIRE AGREEMENT

         This Agreement contains the final and entire agreement between the
         parties hereto regarding management of the Casinos. No change or
         modification of this agreement shall be valid or binding upon the
         parties hereto unless such change or modification shall be in writing
         and signed by the parties hereto, and neither the parties nor their
         agents shall be bound by any terms, conditions, statements, warranties
         or representations, oral or written, not herein contained.

         IN WITNESS WHEREOF, the parties hereto have signed and sealed this
Agreement the day and year first above written.

                                  OWNER

                                  CASINO  PADRE  INVESTMENT  COMPANY  LLC, A
                                        NEVADA LIMITED LIABILITY COMPANY
                                  ONE PADRE BOULEVARD
                                  SOUTH PADRE ISLAND TX 78597
WITNESS:

                                  BY:
-----------------------------         ------------------------------------------

                                  ITS:
                                       -----------------------------------------

                                  THE MANAGEMENT COMPANY

                                  sureBET CASINOS, INC., A UTAH CORPORATION
                                  1610 BARRANCAS AVENUE
                                  PENSACOLA FL 32501

                                  BY:
-----------------------------         ------------------------------------------

                                  ITS:
                                       -----------------------------------------

                                       19

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