Document:

Exhibit
10.1

 

 

 

ASSET PURCHASE AGREEMENT

 

DATED AS OF DECEMBER 1, 2010

 

BY AND AMONG

 

DELTA INVESTMENTS & DEVELOPMENT, LLC,

 

AS PURCHASER, AND

 

COLUMBIA PROPERTIES VICKSBURG, LLC

 

AS SELLER

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I
  Definitions

  	
  1

  
	
   

  	
   

  	
   

  
	
  1.1

  	
  CERTAIN DEFINITIONS

  	
  1

  
	
  1.2

  	
  OTHER DEFINITIONAL AND INTERPRETIVE MATTERS

  	
  9

  
	
   

  	
   

  	
   

  
	
  ARTICLE II
  Purchase and Sale of Assets; Assumption of Liabilities

  	
  10

  
	
   

  	
   

  	
   

  
	
  2.1

  	
  PURCHASE AND SALE OF ASSETS

  	
  10

  
	
  2.2

  	
  EXCLUDED ASSETS

  	
  11

  
	
  2.3

  	
  ASSUMPTION OF LIABILITIES

  	
  12

  
	
  2.4

  	
  EXCLUDED LIABILITIES

  	
  12

  
	
  2.5

  	
  PROCEDURES FOR ASSUMPTION OF AGREEMENTS

  	
  12

  
	
  2.6

  	
  FURTHER CONVEYANCES AND ASSUMPTIONS

  	
  13

  
	
  2.7

  	
  BULK SALES LAW

  	
  14

  
	
   

  	
   

  	
   

  
	
  ARTICLE III
  Consideration

  	
  14

  
	
   

  	
   

  	
   

  
	
  3.1

  	
  CONSIDERATION

  	
  14

  
	
  3.2

  	
  ESCROWED FUNDS

  	
  14

  
	
  3.3

  	
  PAYMENT OF PURCHASE PRICE; ASSUMPTION OF ASSUMED
  LIABILITIES

  	
  14

  
	
  3.4

  	
  RESERVED

  	
  14

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV
  Closing and Termination

  	
  14

  
	
   

  	
   

  	
   

  
	
  4.1

  	
  CLOSING DATE

  	
  14

  
	
  4.2

  	
  DELIVERIES BY THE SELLER

  	
  15

  
	
  4.3

  	
  DELIVERIES BY PURCHASER

  	
  15

  
	
  4.4

  	
  TERMINATION OF AGREEMENT

  	
  16

  
	
  4.5

  	
  PROCEDURE UPON TERMINATION

  	
  17

  
	
  4.6

  	
  EFFECT OF TERMINATION

  	
  17

  
	
   

  	
   

  	
   

  
	
  ARTICLE V
  Representations and Warranties of the Seller

  	
  18

  
	
   

  	
   

  	
   

  
	
  5.1

  	
  THE SELLER’S REPRESENTATIONS AND WARRANTIES

  	
  18

  
	
  5.2

  	
  ORGANIZATION AND GOOD STANDING

  	
  18

  
	
  5.3

  	
  AUTHORIZATION OF AGREEMENT

  	
  18

  
	
  5.4

  	
  CONFLICTS; CONSENTS OF THIRD PARTIES

  	
  19

  
	
  5.5

  	
  TITLE TO PURCHASED ASSETS

  	
  19

  
	
  5.6

  	
  FINANCIAL STATEMENTS

  	
  19

  
	
  5.7

  	
  ABSENCE OF CERTAIN CHANGES OR EVENTS

  	
  20

  
	
  5.8

  	
  PROPERTY

  	
  20

  
	
  5.9

  	
  AGREEMENTS, CONTRACTS AND COMMITMENTS

  	
  20

  
	
  5.10

  	
  LITIGATION; ORDERS

  	
  21

  
	
  5.11

  	
  ENVIRONMENTAL MATTERS

  	
  21

  
	
  5.12

  	
  LABOR MATTERS

  	
  21

  
	
  5.13

  	
  EMPLOYEE BENEFITS

  	
  22

  
	
  5.14

  	
  FINANCIAL ADVISORS

  	
  23

  
	
  5.15

  	
  PERMITS; COMPLIANCE WITH LAWS

  	
  23

  
	
  5.16

  	
  TAXES

  	
  23

  
	
  5.17

  	
  VESSEL

  	
  24

  

 

i

 

	
  5.18

  	
  ACCOUNTS AND NOTES RECEIVABLE AND PAYABLE

  	
  24

  
	
  5.19

  	
  NO OTHER REPRESENTATIONS OR WARRANTIES; SCHEDULES

  	
  25

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI
  Representations and Warranties of Purchaser

  	
  25

  
	
   

  	
   

  	
   

  
	
  6.1

  	
  PURCHASER’S REPRESENTATIONS AND WARRANTIES

  	
  25

  
	
  6.2

  	
  ORGANIZATION AND GOOD STANDING

  	
  26

  
	
  6.3

  	
  AUTHORIZATION OF AGREEMENT

  	
  26

  
	
  6.4

  	
  CONFLICTS; CONSENTS OF THIRD PARTIES

  	
  26

  
	
  6.5

  	
  LITIGATION

  	
  27

  
	
  6.6

  	
  FINANCIAL ADVISORS

  	
  27

  
	
  6.7

  	
  FINANCIAL CAPABILITY

  	
  27

  
	
  6.8

  	
  LICENSABILITY OF PURCHASER AND PRINCIPALS

  	
  27

  
	
  6.9

  	
  COMPLIANCE WITH GAMING LAWS AND LIQUOR LAWS

  	
  27

  
	
  6.10

  	
  CITIZENSHIP

  	
  28

  
	
  6.11

  	
  PURCHASED ASSETS “AS IS”; PURCHASER’S ACKNOWLEDGMENT
  REGARDING SAME

  	
  28

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII
  Indemnification

  	
  29

  
	
   

  	
   

  	
   

  
	
  7.1

  	
  INDEMNIFICATION OBLIGATIONS OF PURCHASER

  	
  29

  
	
  7.2

  	
  INDEMNIFICATION OBLIGATIONS OF THE SELLER

  	
  29

  
	
  7.3

  	
  LIMITATIONS.

  	
  29

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII
  Pre-Closing Covenants and Agreements

  	
  29

  
	
   

  	
   

  	
   

  
	
  8.1

  	
  ACCESS TO INFORMATION

  	
  29

  
	
  8.2

  	
  CONDUCT OF THE BUSINESS PENDING THE CLOSING

  	
  30

  
	
  8.3

  	
  REGULATORY APPROVALS

  	
  30

  
	
  8.4

  	
  FURTHER ASSURANCES

  	
  31

  
	
  8.5

  	
  CONFIDENTIALITY

  	
  31

  
	
  8.6

  	
  PRESERVATION OF RECORDS

  	
  31

  
	
  8.7

  	
  PUBLICITY

  	
  32

  
	
  8.8

  	
  SUPPLEMENTATION AND AMENDMENT OF SCHEDULES

  	
  32

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX
  Additional Agreements

  	
  32

  
	
   

  	
   

  	
   

  
	
  9.1

  	
  EMPLOYEES

  	
  32

  
	
  9.2

  	
  RESERVATIONS; CHIPS; CUSTOMER INFORMATION AND PROPERTY

  	
  33

  
	
  9.3

  	
  CERTAIN TRANSACTIONS

  	
  35

  
	
  9.4

  	
  INSURANCE POLICIES

  	
  35

  
	
  9.5

  	
  INSURANCE; CASUALTY AND CONDEMNATION

  	
  35

  
	
  9.6

  	
  POST-CLOSING USE OF MARKS ASSOCIATED WITH THE CASINO
  BUSINESS

  	
  36

  
	
  9.7

  	
  NO CONTROL

  	
  37

  
	
  9.8

  	
  EMPLOYEE SOLICITATION

  	
  37

  
	
   

  	
   

  	
   

  
	
  ARTICLE X
  Conditions to Closing

  	
  37

  
	
   

  	
   

  	
   

  
	
  10.1

  	
  CONDITIONS PRECEDENT TO OBLIGATIONS OF PURCHASER

  	
  37

  
	
  10.2

  	
  CONDITIONS PRECEDENT TO OBLIGATIONS OF THE SELLER

  	
  38

  
	
  10.3

  	
  CONDITIONS PRECEDENT TO OBLIGATIONS OF PURCHASER AND THE
  SELLER

  	
  38

  
	
  10.4

  	
  FRUSTRATION OF CLOSING CONDITIONS

  	
  39

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI
  Taxes

  	
  39

  

 

ii

 

	
  11.1

  	
  TRANSFER TAXES

  	
  39

  
	
  11.2

  	
  PURCHASE PRICE ALLOCATION

  	
  39

  
	
   

  	
   

  	
   

  
	
  ARTICLE XII
  Miscellaneous

  	
  39

  
	
   

  	
   

  	
   

  
	
  12.1

  	
  EXPENSES

  	
  39

  
	
  12.2

  	
  INJUNCTIVE RELIEF

  	
  39

  
	
  12.3

  	
  SUBMISSION TO JURISDICTION; CONSENT TO SERVICE OF PROCESS

  	
  39

  
	
  12.4

  	
  WAIVER OF RIGHT TO TRIAL BY JURY

  	
  40

  
	
  12.5

  	
  ENTIRE AGREEMENT; AMENDMENTS; WAIVERS AND CONFLICTS

  	
  40

  
	
  12.6

  	
  GOVERNING LAW

  	
  40

  
	
  12.7

  	
  NOTICES

  	
  40

  
	
  12.8

  	
  SEVERABILITY

  	
  41

  
	
  12.9

  	
  BINDING EFFECT; ASSIGNMENT

  	
  41

  
	
  12.10

  	
  RESERVED

  	
  41

  
	
  12.11

  	
  RELEASE

  	
  41

  
	
  12.12

  	
  TERMINATION OF REPRESENTATIONS AND WARRANTIES

  	
  42

  
	
  12.13

  	
  SCHEDULES

  	
  42

  
	
  12.14

  	
  COUNTERPARTS

  	
  42

  
	
  12.15

  	
  CONFIDENTIAL TREATMENT

  	
  42

  
	
  12.16

  	
  NO THIRD-PARTY BENEFICIARIES

  	
  42

  

 

	
  Exhibits

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A

  	
   

  	
  -

  	
   

  	
  Escrow
  Agreement

  
	
  Exhibit B

  	
   

  	
  -

  	
   

  	
  [Reserved]

  
	
  Exhibit C

  	
   

  	
  -

  	
   

  	
  Special
  Warranty Deed

  
	
  Exhibit D

  	
   

  	
  -

  	
   

  	
  Assignment
  of Leases

  
	
  Exhibit E

  	
   

  	
  -

  	
   

  	
  Assignment
  and Assumption Agreement

  
	
  Exhibit F

  	
   

  	
  -

  	
   

  	
  Bill
  of Sale

  
	
  Exhibit G

  	
   

  	
  -

  	
   

  	
  Customer
  Database

  
	
  Exhibit H

  	
   

  	
  -

  	
   

  	
  Non-Foreign
  Affidavit

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedules

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule
  1.1.1

  	
   

  	
  -

  	
   

  	
  Seller
  Knowledge Parties

  
	
  Schedule
  2.1(a)

  	
   

  	
  -

  	
   

  	
  Assumed
  Leased Real Property

  
	
  Schedule
  2.1(d)

  	
   

  	
  -

  	
   

  	
  Equipment

  
	
  Schedule
  2.1(f)

  	
   

  	
  -

  	
   

  	
  Assumed
  Agreements

  
	
  Schedule
  2.2(c)

  	
   

  	
  -

  	
   

  	
  Excluded
  Agreements

  
	
  Schedule
  2.2(k)

  	
   

  	
  -

  	
   

  	
  Excluded
  Intellectual Property

  
	
  Schedule
  5.4(a)

  	
   

  	
  -

  	
   

  	
  Conflicts

  
	
  Schedule
  5.4(b)

  	
   

  	
  -

  	
   

  	
  Seller
  Consents of Third Parties

  
	
  Schedule
  5.5

  	
   

  	
  -

  	
   

  	
  Title
  to Purchased Assets

  
	
  Schedule
  5.6

  	
   

  	
  -

  	
   

  	
  Financial
  Statements

  
	
  Schedule
  5.8(a)

  	
   

  	
  -

  	
   

  	
  Owned
  Real Property

  
	
  Schedule
  5.8(b)

  	
   

  	
  -

  	
   

  	
  Leased
  Real Property

  
	
  Schedule
  5.9

  	
   

  	
  -

  	
   

  	
  Material
  Contracts

  
	
  Schedule
  5.10

  	
   

  	
  -

  	
   

  	
  Litigation;
  Orders

  
	
  Schedule
  5.11

  	
   

  	
  -

  	
   

  	
  Compliance
  with Environmental Laws

  
	
  Schedule
  5.12(b)

  	
   

  	
  -

  	
   

  	
  Employment
  Agreements

  

 

iii

 

	
  Schedule
  5.12(e)

  	
   

  	
  -

  	
   

  	
  Employee
  Information

  
	
  Schedule
  5.13(a)

  	
   

  	
  -

  	
   

  	
  Seller
  Benefit Plans

  
	
  Schedule
  5.13(b)

  	
   

  	
  -

  	
   

  	
  Assumed
  Benefit Plans

  
	
  Schedule
  5.14

  	
   

  	
  -

  	
   

  	
  Financial
  Advisors

  
	
  Schedule
  5.15

  	
   

  	
  -

  	
   

  	
  Permits;
  Compliance with Laws

  
	
  Schedule
  5.17(a)

  	
   

  	
  -

  	
   

  	
  Vessel

  
	
  Schedule
  5.18(a)

  	
   

  	
  -

  	
   

  	
  Accounts
  and Notes Receivable and Payable

  
	
  Schedule
  9.2(a)

  	
   

  	
  -

  	
   

  	
  Reservations

  
	
  Schedule
  9.2(d)

  	
   

  	
  -

  	
   

  	
  Safe
  Deposit Boxes

  
	
  Schedule
  10.1(c)

  	
   

  	
  -

  	
   

  	
  Roof
  Repair and Mold Remediation

  
	
  Schedule
  11.2

  	
   

  	
  -

  	
   

  	
  Purchase
  Price Allocation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchaser Schedules

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule
  6.4(b)

  	
   

  	
  -

  	
   

  	
  Purchaser
  Consents of Third Parties

  
	
  Schedule
  6.6

  	
   

  	
  -

  	
   

  	
  Purchaser
  Financial Advisors

  
	
  Schedule
  10.1(b)

  	
   

  	
  -

  	
   

  	
  Purchaser
  Required Governmental Consents

  

 

iv

 

 

ASSET PURCHASE AGREEMENT

 

THIS ASSET PURCHASE AGREEMENT (“Agreement”), dated
as of December 1, 2010 (the “Effective Date”), is by and among COLUMBIA PROPERTIES VICKSBURG, LLC, a
Mississippi limited liability company (the “Seller”), and DELTA INVESTMENTS & DEVELOPMENT, LLC, a
Nevada limited liability company (“Purchaser”).  Each of the Seller and Purchaser is a “Party”
and collectively they are the “Parties” to this Agreement.

 

W I T N E S S E T H:

 

WHEREAS, the Seller presently owns and operates the
Horizon Vicksburg Casino in Vicksburg, Mississippi;

 

WHEREAS, the Seller desires to sell, transfer and
assign to Purchaser, and Purchaser desires to purchase, acquire and assume from
the Seller the Purchased Assets and the Assumed Liabilities, all as more specifically
provided herein;

 

WHEREAS, in connection with the execution and
delivery of this Agreement and concurrent with the same, Purchaser, the Seller
and Chicago Title and Trust Company, as escrow agent (the “Escrow Agent”)
have entered into the Escrow Agreement attached hereto as Exhibit A (the
“Escrow Agreement”), pursuant to which Purchaser has deposited Three
Hundred Thousand & No/100 Dollars ($300,000.00) (the “Escrowed Funds”)
with the Escrow Agent;

 

NOW, THEREFORE in consideration of the
premises and the mutual covenants and agreements hereinafter contained, the
Parties hereby agree as follows:

 

ARTICLE I

Definitions

 

1.1           Certain Definitions.  For purposes of this Agreement, the following
terms shall have the meanings specified or referenced below:

 

“Affiliate”
means, with respect to any Person, any other Person that, directly or
indirectly through one or more intermediaries, controls, or is controlled by,
or is under common control with, such Person, and the term “control” (including
the terms “controlled by” and “under common control with”) means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of such Person, whether through
ownership of voting securities, by contract or otherwise; provided, however,
that with respect to the Seller, the term does not include any shareholder of
Tropicana Entertainment Inc. or any of such shareholder’s Affiliates.

 

“Agreement”
has the meaning set forth in the Preamble.

 

“Ancillary
Agreements” means this Agreement, the Confidentiality Agreement, the Escrow
Agreement, the Bill of Sale, the Assignment and Assumption Agreement, and other
agreements contemplated by or under this Agreement.

 

“Assignment
and Assumption Agreement” has the meaning set forth in Section 4.2(b).

 

“Assumed
Agreements” means, collectively, those Contracts set forth on Schedule
2.1(f) to which the Seller is a party, but excluding the Excluded
Agreements.

 

1

 

“Assumed
Benefit Plan” has the meaning set forth in Section 5.13(b).

 

“Assumed
Intellectual Property” means the name “Horizon.”

 

“Assumed
Leased Real Property” means those certain leases and/or subleases and other
agreements listed on Schedule 2.1(a).

 

“Assumed
Liabilities” has the meaning set forth in Section 2.3.

 

“Audited
Financial Information” has the meaning set forth in Section 5.6.

 

“Bill
of Sale” has the meaning set forth in Section 4.2(d).

 

“Business
Day” means any day of the year on which national banking institutions in
New York City are open to the public for conducting business and are not
required or authorized to close.

 

“Cage
Cash” means all cash contained in the cage, TITO (Ticket In, Ticket Out)
exchange devices, slot change booths, count rooms and drop boxes at the Casino
Business.

 

“Casino
Business” means all of the Seller’s riverboat gambling, gaming,
hospitality, restaurant, entertainment and related businesses, as currently
conducted in Vicksburg, Mississippi.

 

“Challenge”
means, with respect to any Order, an appeal, notice of appeal, motion to amend
or make additional findings of fact, motion to alter or amend judgment, motion
for rehearing or motion for new trial, request for stay, motion or petition for
reconsideration, application or request for review, or other similar motion,
application, notice or request.

 

“Closing”
has the meaning set forth in Section 4.1.

 

“Closing
Date” has the meaning set forth in Section 4.1.

 

“Closing
Date Purchase Price” has the meaning set forth in Section 3.3.

 

“Code”
means the Internal Revenue Code of 1986, as amended and currently enacted as of
the Effective Date.

 

“Collective
Bargaining Agreement” means any Contract or other binding agreement or
arrangement with any labor union or organization, works council or other
similar employee representative.

 

“Confidentiality
Agreement” has the meaning set forth in Section 8.5.

 

“Contract”
means any indenture, note, bond, mortgage, deed of trust, deed of constitution
of mortgage, mortgage note pledge agreement, loan agreement, franchise agreement,
lease, sublease, license, sublicense, purchase order and other contract,
agreement, arrangement, commitment or instrument, whether written or oral, to
which the Seller is a party or by which it may be bound, or to which its
properties are or may be subject.

 

“Customer
Database” means all customer databases, customer lists, historical records
of customers and any other customer information collected and used by the
Seller in connection with marketing and promoting the Casino Business.

 

2

 

“Damages”
has the meaning set forth in Section 7.1.

 

“Deposits”
has the meaning set forth in Section 2.1(h).

 

“Disclosure
Schedules” means the Schedules and the Purchaser Schedules.

 

“Documents”
means all files, documents, instruments, papers, books, reports, records,
tapes, microfilms, photographs, letters, budgets, forecasts, ledgers, journals,
title policies, customer lists, regulatory filings, operating data and plans,
marketing documentation (sales brochures, flyers, pamphlets, web pages, etc.),
and other similar materials of the Seller, in each case whether or not in
electronic form.

 

“Effective
Date” has the meaning set forth in the Preamble.

 

“Employees”
means all individuals who are employed by the Seller as of the Effective Date,
together with individuals (a) who are hired after the Effective Date and prior
to the Closing or (b) who have or will have re-hire or reinstatement rights
with the Seller under applicable Law or pursuant to a Contract as of the
Closing.

 

“Encumbrance”
means any lien, encumbrance, pledge, mortgage, deed of trust, security
interest, claim, lease, charge, option, right of first refusal, easement,
servitude, proxy, voting trust or agreement, transfer restriction under any
shareholder or similar agreement or encumbrance, but does not include any
restrictions under licenses of, or other agreements related to, Intellectual
Property.

 

“Environmental
Laws” means all applicable federal, state, municipal, or local laws,
statutes or by laws or ordinances relating to the environment and any other
applicable environmental laws, in each case as amended from time to time.

 

“Equipment”
means all machinery, motors, equipment, furniture, fixtures, furnishings,
vehicles, spare parts, leasehold improvements, Gaming Equipment, Vessel
equipment, artwork, desks, chairs, tables, computer and computer-related
hardware and firmware, copiers, telephone lines and numbers, facsimile machines
and other telecommunication equipment, cubicles and miscellaneous office furnishings
and supplies, all food processing and preparation and washing equipment, racks,
trays, buffet tables, flatware, serving ware, utensils, crockery, plates,
cutlery and other similar items, uniforms, napkins, linens and other tangible
personal property held by the Seller.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended.

 

“ERISA
Affiliate” means, with respect to any entity, any trade or business,
whether or not incorporated, that together with such entity and its
subsidiaries would be deemed a “single employer” within the meaning of Section 4001
of ERISA.

 

“Escrow
Account” has the meaning set forth in Section 3.2.

 

“Escrow
Agent” has the meaning set forth in the Recitals.

 

“Escrow
Agreement” has the meaning set forth in the Recitals.

 

“Escrowed
Funds” has the meaning set forth in the Recitals.

 

“Excluded
Agreements” means the Contracts listed on Schedule 2.2(c).

 

“Excluded
Assets” has the meaning set forth in Section 2.2.

 

3

 

“Excluded
Intellectual Property” means all Intellectual Property (except for Assumed
Intellectual Property) of the Seller, including the Intellectual Property set
forth on Schedule 2.2(k).

 

“Excluded
Matter” means any one or more of the following: (a) the effect of any
changes in applicable Law or GAAP (b) any change, event or effect arising out
of or resulting from changes in or affecting the (i) travel, hospitality or
gaming industries generally, (ii) travel, hospitality or gaming industries in
the markets or jurisdictions where the Casino Business is located or (iii) the
financial, banking, currency or capital markets in general; (c) any change,
event or effect resulting from the entering into or public announcement of the
transactions contemplated by this Agreement (including any facts or
circumstances relating to Purchaser, its equity owners or investors or their
respective Affiliates (including their respective identities)); (d) any change,
event or effect resulting from any act of terrorism, commencement, escalation,
continuation or cessation of armed hostilities in the United States or
internationally or declaration of war by or against or otherwise involving the
United States; (e) any existing event or occurrence or circumstance with
respect to which Purchaser has knowledge as of the date hereof and any
transactions, changes or events arising in connection with any of the
foregoing; (f) any adverse change to, or effect on, the business of the Seller
that is cured in all material respects as of the Closing Date; and (g) any
change to, or effect on, any of the Excluded Assets.  Further, no event or condition that results
primarily from such events, including any breach or default or event of default
under indebtedness of the Seller or its Affiliates shall be deemed to have,
individually or in the aggregate, a Material Adverse Effect.

 

“Excluded
Liabilities” has the meaning set forth in Section 2.4.

 

“FCC
License” means the license(s) to operate a base station and two way
security radios at the Casino.

 

“Final
Order” means an Order of any court of competent jurisdiction: (a) as to
which no Challenge has been timely filed, or, if any of the foregoing has been
timely filed, it has been disposed of in a manner that upholds and affirms the
subject order in all material respects without the possibility for further
Challenge thereon; (b) as to which the time for instituting or filing a
Challenge shall have expired; and (c) as to which no stay is in effect; provided,
however, the possibility that a motion under Rule 59 or Rule 60 of the
Federal Rules of Civil Procedure (or its substantial equivalent) may be filed
with respect to such Order shall not prevent such Order from being deemed a
Final Order.

 

“Financial
Information” has the meaning set forth in Section 5.6.

 

“GAAP”
means generally accepted accounting principles in the United States as of the
Effective Date.

 

“Gaming
Approvals” means all Permits, authorizations, registrations, findings of
suitability, franchises, entitlements, waivers and exemptions issued by any Gaming
Authority required to permit the Parties to consummate the transactions
contemplated by this Agreement or necessary to permit Purchaser to acquire the
Purchased Assets, assume the Assumed Liabilities and operate the Casino
Business, in each case, after the Closing in substantially the same manner as
owned and operated by the Seller.

 

“Gaming
Authorities” means all Governmental Entities with regulatory control or
jurisdiction over the conduct of lawful gaming or gambling, including without
limitation the Mississippi Gaming Commission.

 

“Gaming
Equipment” means all gambling games, slot machines, tables, other gaming
equipment and associated gaming equipment of the Seller together with the
Seller’s inventory of gaming chips, 

 

4

 

tokens,
scrip, markers, gaming supplies and other items that are used by the Seller in
the operation of the Casino Business.

 

“Gaming
Laws” or “Gaming Regulations” means the laws, rules, regulations and
orders applicable to the casino, racing, gaming businesses or activities of the
Parties, as in effect from time to time, including the policies,
interpretations and administration thereof by the Gaming Authorities.

 

“Governmental
Approval” means any Permit, waiver, or other authorization issued, granted,
given, or otherwise made available by or under the authority of any
Governmental Entity or pursuant to any Law.

 

“Governmental
Entity” means any government or governmental or regulatory body thereof, or
quasi-governmental or quasi-regulatory body thereof, or political subdivision
thereof, whether supra-national, federal, state or local, or any agency,
instrumentality or authority thereof, or any court or arbitrator (public or
private).

 

“Hazardous
Materials” means any material, substance or waste to which liability or
standards of conduct may be imposed under any Environmental Laws.

 

“Intellectual
Property” means (a) patents, domestic and foreign, and patent disclosures
together with all reissuances, continuations, divisionals, continuations-in-part,
revisions, extensions and reexaminations thereof; (b) trademarks, service
marks, trade dress, trade names, corporate names, logos and slogans, domestic
and foreign (and all translations, adaptations, derivations and combinations of
the foregoing), together with all goodwill associated with each of the
foregoing; (c) copyrights and copyrightable works, domestic and foreign; (d) Internet
domain names and web sites; (e) registrations and applications for any of the
foregoing; (f) trade secrets, confidential and proprietary information,
processes, formulae, drawings, specifications, know-how and inventions; (g) computer
software and databases (including source code, executable code, firmware, data,
and technical documentation); (h) licenses; (i) all rights to sue for past
infringements of, and all rights to payment from licensees of, Intellectual
Property owned by the Seller; and (j) all other intellectual property.

 

“Inventory”
means all inventory of the Seller of merchandise held for resale or use in the
Casino Business and all food and beverage inventory, including rights to
vending and concession inventory, held for sale or service to patrons and/or
employees of the Casino Business.

 

“IRS”
means the Internal Revenue Service of the United States Department of the
Treasury.

 

“Knowledge
of Buyer” and “Buyer’s Knowledge” and words of similar import mean
the actual knowledge of those Persons identified on Schedule 1.1.1.

 

“Knowledge
of the Seller” and “Seller’s Knowledge” and words of similar import
mean the actual knowledge of those Persons identified on Schedule 1.1.1.

 

“Law”
means any federal, state, provincial, local or foreign law, statute, code,
ordinance, rule, regulation or policy.

 

“Leased
Real Property” means those certain leases and/or subleases and other
agreements listed on Schedule 5.8(b).

 

“Legal
Proceeding” means any judicial, administrative or arbitral actions, suits,
proceedings (public or private) or claims by or before a Governmental Entity.

 

5

 

“Liability”
means any debt, liability or obligation (whether direct or indirect, known or
unknown, absolute or contingent, accrued or unaccrued, liquidated or
unliquidated, or due or to become due) and including all costs and expenses
relating thereto.

 

“Liquor
Authorities” means, in any jurisdiction in which the Parties sell and
distribute liquor, the applicable alcoholic beverage commission or other
governmental authority responsible for interpreting, administering and
enforcing the Liquor Laws, including, without limitation, the Alcoholic
Beverage Control Division of the Mississippi Department of Revenue.

 

“Liquor
Laws” means the laws, rules, regulations and orders applicable to or
involving the sale and distribution of liquor by the Parties in any
jurisdiction, as in effect from time, including the policies, interpretations
and administration thereof by the applicable Liquor Authorities.

 

“Liquor
License” means, in any jurisdiction in which the Parties sell and
distribute liquor, any license, permit, or other authorization to sell and
distribute liquor that is granted or issued by the applicable alcoholic
beverage commission or other governmental authority responsible for
interpreting, administering and enforcing the Liquor Laws.

 

“Master
Agreement” means the Amended and Restated Master Purchase and Sale
Agreement between the City of Vicksburg, Mississippi, and Columbia Properties
Vicksburg, LLC dated October 24, 2003.

 

“Material
Adverse Effect” means any event, circumstance, change or occurrence that
has a material adverse effect on the Purchased Assets or the business,
operations, assets, liabilities or condition (financial or otherwise) of the
Seller’s Casino Business taken as a whole other than any change to, or effect
on, on any of the Excluded Assets, or resulting from an Excluded Matter.

 

“Material
Contract” means any Contract, including any Assumed Agreement, that (a) has
a remaining obligation, whether annually or in the aggregate, for payment or
services by the Seller in excess of One Hundred Thousand Dollars ($100,000.00),
and (b) is not cancelable by the Seller upon thirty (30) days or less notice.

 

“Multiemployer
Plan” has the meaning set forth in Section 5.13(d).

 

“Order”
means any order, injunction, judgment, decree, ruling, writ, assessment or
arbitration award of a Governmental Entity.

 

“Ordinary
Course of Business” means the ordinary and usual course of normal
day-to-day operations of the Casino Business, consistent with past practice.

 

“Owned
Real Property” means those certain parcels of real property more
particularly described in Schedule 5.8(a).

 

“Party”
or “Parties” has the meaning set forth in the Preamble.

 

“Permits”
has the meaning set forth in Section 5.15.

 

“Permitted
Encumbrances” means (a) all defects, exceptions, restrictions, easements,
rights of way and encumbrances disclosed in the title policies previously made
available to Purchaser; (b) statutory liens for current Taxes, assessments or
other governmental levies, fees or charges not yet delinquent or the amount or
validity of which is being contested in good faith by appropriate proceedings
and for which 

 

6

 

(in
either such case) adequate reserves have been accrued on the balance sheet in
accordance with GAAP; (c) mechanics’, carriers’, workers’, repairers’ and
similar Encumbrances arising or incurred in the Ordinary Course of Business not
yet delinquent or the amount and validity of which is being contested in good
faith and that (in either case) are not material to the Casino Business and
that are not resulting from a breach, default or violation by the Seller or its
Affiliates of any Contract or Law; (d) zoning, building codes, entitlement and
other real property use and environmental laws and regulations by any Governmental
Entity provided that such regulations are not violated by the current use or
occupancy of such property or the operation of the Casino Business, or any
violation of which would not have a Material Adverse Effect on the Casino
Business; (e) title of a lessor under a capital or operating lease; (f) maritime
liens that arise by operation of Law during normal operations and that (i) have
not yet been recorded on any vessel abstract or judicially asserted and (ii) are
not past due or which are currently being contested in good faith by Legal
Proceedings disclosed on Schedule 5.10; (g) riparian, littoral and other
rights created by the fact that any portion of the Owned Real Property formerly
comprised, or currently comprises, shores or bottoms of navigable waters that
do not and will not materially interfere with the use of the property or assets
to which they relate in the manner and for the purposes theretofore used by the
Seller; (h) such other imperfections in title, charges, easements, covenants,
conditions, restrictions and other similar Encumbrances that do not or would
not materially interfere with the use or occupancy of the applicable property
and (i) any and all matters that would be disclosed by an accurate survey or
inspection of the applicable property that do not or would not materially
interfere with the use or occupancy of the applicable property.  The Purchaser shall have until December 10,
2010 to obtain a survey of the applicable property; and after such time,
subsection “(i)” of this definition of Permitted Encumbrances shall read as
follows: any and all matters that would be disclosed by an accurate survey or
inspection of the applicable property.

 

“Person”
means any individual, corporation, limited liability company, partnership,
firm, joint venture, association, joint-stock Seller, trust, unincorporated
organization, Governmental Entity or other entity.

 

“Property”
means the Owned Real Property, the Assumed Leased Real Property, the Vessel,
the Equipment, the Gaming Equipment, the Inventory and all other tangible
personal property, fixtures and improvements owned by the Seller and placed on,
attached to or located at or exclusively used in connection with the operation
of the Casino Business.

 

“Property
Lease” means the Second Riverboat Property Lease, dated as of June 23,
1993, by and between the Mayor and Aldermen of the City of Vicksburg,
Mississippi, as Lessee, and Harrah’s Vicksburg Corporation, as Lessor, as
amended, supplemented or modified.

 

“Purchase
Price” has the meaning set forth in Section 3.1.

 

“Purchased
Assets” has the meaning set forth in Section 2.1.

 

“Purchaser”
has the meaning set forth in the Preamble.

 

“Purchaser
Documents” has the meaning set forth in Section 6.3.

 

“Purchaser
Indemnified Parties” has the meaning set forth in Section 7.2.

 

“Purchaser
Permits” has the meaning set forth in Section 6.9(a).

 

“Purchaser
Schedules” has the meaning set forth in Section 6.1.

 

7

 

“Purchaser
Released Parties” has the meaning set forth in Section 12.11.

 

“Qualified
Plans” has the meaning set forth in Section 5.13(c).

 

“Real
Property” means the Owned Real Property and the Leased Real Property.

 

“Requested
Party” has the meaning set forth in Section 8.6.

 

“Required
Governmental Consents” has the meaning set forth in Schedule 10.3(c).

 

“Schedules”
has the meaning set forth in Section 5.1.

 

“Seller”
has the meaning set forth in the Preamble.

 

“Seller
Benefit Plans” has the meaning set forth in Section 5.13(a).

 

“Seller
Documents” has the meaning set forth in Section 5.3.

 

“Seller
Indemnified Parties” has the meaning set forth in Section 7.1.

 

“Seller
Released Parties” has the meaning set forth in Section 12.11.

 

“Shipping
Act” has the meaning set forth in Section 5.17(b).

 

“Tax”
and, with correlative meaning, “Taxes” mean (a) all federal, state or
local taxes, charges or other assessments, including all net income, gross
receipts, capital, sales, use, ad valorem,
value added, goods and services, transfer, franchise, profits, inventory,
capital stock, license, withholding, payroll, employment, social security,
unemployment, excise, severance, stamp, occupation, property and estimated
taxes, and (b) all interest, penalties, fines, additions to tax or additional
amounts imposed by any Tax Authority in connection with any item described in clause
(a).

 

“Tax
Authority” means any Governmental Entity, instrumentality or employee
thereof, charged with the administration of any Law relating to Taxes.

 

“Tax
Return” means all returns, declarations, reports, estimates, information
returns and statements required to be filed in respect of any Taxes.

 

“Termination
Date” has the meaning set forth in Section 4.4(b).

 

“Transfer
Taxes” has the meaning set forth in Section 11.1.

 

“Transferred
Employees” has the meaning set forth in Section 9.1(a).

 

“Unaudited
Financial Information” has the meaning set forth in Section 5.6.

 

“Vessel”
means the vessel known as The Star of Vicksburg, f/k/a the Merimac 3, Official
Number 587361, including:  (a) all
superstructure currently constructed thereon; (b) plans and specifications
therefor, if owned by the Seller; (c) existing warranties therefor, if any; and
(d) all engines, propellers, tenders, boats, parts, spares, tools, equipment,
machinery, gear, implements, broached and unbroached consumable stores,
provisions for furniture, fixtures, fuel, pumps, anchors, cables, chains,
apparel, rigging, tackle, fittings, accessories, appurtenances, appliances,
supplies therefor, inventory parts, ramps, generators and related equipment (including
existing walkways), and all other appurtenances and 

 

8

 

accessories
related to the Vessel and owned by the Seller, whether located onboard the
Vessel or elsewhere.

 

“Vessel
Bill of Sale” has the meaning set forth in Section 4.2(d).

 

“WARN
ACT” means the Worker Adjustment and Retraining Notification Act of 1988
and analogous state and local Law.

 

“Withdrawal
Liability” means liability to a Multiemployer Plan as a result of a
complete or partial withdrawal from such Multiemployer Plan, as those terms are
defined in Part 1 of Subtitle E of Title IV of ERISA.

 

1.2           Other Definitional and
Interpretive Matters.

 

(a)           Unless otherwise expressly
provided, for purposes of this Agreement, the following rules of interpretation
shall apply:

 

(i)            Calculation of Time Period.  When calculating the period of time before
which, within which or following which any act is to be done or step taken
pursuant to this Agreement, the date that is the reference date in calculating
such period shall be excluded.  If the
last day of such period is a non-Business Day, the period in question shall end
on the next succeeding Business Day.

 

(ii)           Dollars.  Any reference in this Agreement to $ shall
mean U.S. dollars.

 

(iii)          Exhibits/Schedules.  All Exhibits and Schedules annexed hereto or
referred to herein are hereby incorporated in and made a part of this Agreement
as if set forth in full herein.  Any
capitalized term used in any Schedule or Exhibit but not otherwise defined
therein shall have the meaning ascribed to such term in this Agreement.

 

(iv)          Gender and Number.  Any reference in this Agreement to gender
shall include all genders, and words imparting the singular number only shall
include the plural and vice versa.

 

(v)           Headings.  The provision of a Table of Contents, the
division of this Agreement into Articles, Sections and other subdivisions and
the insertion of headings are for convenience of reference only and shall not
affect or be utilized in construing or interpreting this Agreement.  All references in this Agreement to any “Section”
are to the corresponding Section of this Agreement unless otherwise specified.

 

(vi)          Herein; Including.  Words such as “herein,” “hereinafter,”
“hereof,” “hereby” and “hereunder” refer to this Agreement
as a whole and not merely to a subdivision in which such words appear, unless
the context otherwise requires.  The word
“including” shall be deemed to be followed by the words, “without
limitation” whenever used in this Agreement or the Schedules hereto.

 

(b)           The Parties have
participated jointly in the negotiation and drafting of this Agreement and, in
the event an ambiguity or question of intent or interpretation arises, this
Agreement shall be construed as jointly drafted by the Parties hereto and no
presumption or burden of proof shall arise favoring or disfavoring any Party by
virtue of the authorship of any provision of this Agreement.

 

9

 

 

ARTICLE II

PURCHASE AND SALE OF ASSETS; ASSUMPTION OF LIABILITIES

 

2.1           Purchase and Sale of Assets.  On the terms and subject to the conditions
set forth in this Agreement, at the Closing, pursuant to the terms of this
Agreement, Purchaser shall purchase, acquire and accept from the Seller and the
Seller shall sell, transfer, assign, convey and deliver to Purchaser, free and
clear of all Encumbrances (except for Permitted Encumbrances or Encumbrances
related to the Assumed Liabilities), all of the Purchased Assets.  “Purchased Assets” shall mean
(excluding the Excluded Assets) all of the Seller’s right, title and interest
in the properties, assets and rights of the Seller primarily related to the
Casino Business, including, but not limited to, the following:

 

(a)           the Owned Real Property;

 

(b)           the Assumed Leased Real
Property;

 

(c)           the Vessel;

 

(d)           all Equipment, including the
Gaming Equipment and the Equipment set forth on Schedule 2.1(d);

 

(e)           all Inventory;

 

(f)            the Assumed Agreements;

 

(g)           all Cage Cash of the Seller
as of the Closing Date;

 

(h)           security, vendor, utility,
and other similar deposits, prepayments or rebates (collectively, “Deposits”)
and prepaid payroll and withholding taxes;

 

(i)            all accounts receivable and
other current assets;

 

(j)            the prepaid rent of the
Seller associated with the Property Lease;

 

(k)           human resource Documents
related to Transferred Employees hired by Purchaser, to the extent allowed
under applicable Law;

 

(l)            all advertising, marketing
and promotional materials and all other printed or written materials;

 

(m)          all transferable Permits,
from all permitting, licensing, accrediting and certifying agencies, and the
rights to all data and records held by such permitting, licensing and
certifying agencies;

 

(n)           all warranties and
guaranties held by the Seller with respect to any improvements or personal
property located at the Casino Business, to the extent the same are
transferable;

 

(o)           all bookings and
reservations for guest, conference and banquet rooms or other facilities at the
Casino Business as of the Closing, together with all deposits held by Seller
with respect thereto;

 

(p)           all Assumed Intellectual
Property;

 

(q)           all landline telephone
numbers; and

 

10

 

(r)            all goodwill associated with
the Casino Business.

 

2.2           Excluded Assets.  Nothing herein contained shall be deemed to
sell, transfer, assign or convey the Excluded Assets to Purchaser, and the
Seller shall retain all right, title and interest to, in and under the Excluded
Assets.  “Excluded Assets” shall
mean the following assets of the Seller (but excluding the Purchased Assets):

 

(a)           all cash and cash
equivalents other than Cage Cash;

 

(b)           any and all rights under
this Agreement, claims, counterclaims, demands and causes of action of the
Seller;

 

(c)           the Excluded Agreements and
any and all rights thereunder;

 

(d)           the Closing Date Purchase
Price and the Purchase Price;

 

(e)           all rights (i) under the
Seller’s insurance policies relating to the Casino Business (including health
insurance, worker’s compensation insurance and life insurance), and any right
to refunds due with respect to such insurance policies arising prior to the
Closing Date and (ii) under or pursuant to all warranties (express or implied),
representations and guarantees made by third parties relating to any Excluded
Assets;

 

(f)            any (i) human resources
Documents related to any Employee who is not hired by Purchaser; (ii) Documents
that the Seller is required by Law to retain or that the Seller determines are
necessary or advisable to retain, including Tax Returns, financial statements
and corporate or other entity filings; provided, that Purchaser shall
have the right to make copies of any portions of such retained Documents that
relate to the Casino Business or any of the Purchased Assets at Purchaser’s
expense and request; (iii) any information management systems of the Seller,
other than those used or held for use exclusively in the Casino Business and
sixty (60) days of free usage by Purchaser, after Closing Date, of Seller’s
back of house systems related to accounts payable, payroll, general ledger
accounting, and human resources that will be provided and supported, assuming
Buyer negotiates with a software provider for short term software licensing,
free of charge; provided further, two (2) thirty (30) day extensions to the
initial usage period will be granted at a cost of ten thousand dollars
($10,000) per month to the Buyer that will compensate Seller for administrative
support of such systems; provided further, at the end of the two (2), thirty
(30) day extensions, access to the systems and support will cease; and (iv) minute
books, stock ledgers and membership certificates of the Seller;

 

(g)           any claim, right or interest
of the Seller in or to any refund, rebate, abatement or other recovery for
Taxes, together with any interest due thereon or penalty rebate arising
therefrom, for any Tax period (or portion thereof) ending on or before the
Closing Date;

 

(h)           any rights, claims or causes
of action of the Seller against third parties relating to assets, properties,
business or operations of the Seller arising out of events occurring on or
prior to the Closing Date;

 

(i)            the Seller’s rights, title
and interests in any assets not related to the Casino Business;

 

(j)            all assets associated with
any Seller Benefit Plan, including the Seller’s rights, title and interests in
any (i) assets related to a defined benefit or defined contribution retirement
plan and (ii) assets related to non-qualified deferred compensation plan
(except with respect to any Assumed 

 

11

 

Benefit Plan, or to the extent related Liabilities
of such Seller Benefit Plans are assumed by Purchaser); and

 

(k)           the Excluded Intellectual
Property.

 

2.3           Assumption of Liabilities.  On the terms and subject to the conditions
set forth in this Agreement, at the Closing, Purchaser shall assume, effective
as of the Closing, and shall timely perform and discharge in accordance with
their respective terms, the following Liabilities (the “Assumed Liabilities”):

 

(a)           all Liabilities under the
Assumed Agreements, including the Property Lease, the Owned Real Property and
the Assumed Leased Real Property;

 

(b)           all Liabilities relating to
amounts required to be paid by Purchaser hereunder;

 

(c)           all Transfer Taxes
applicable to the transfer of the Purchased Assets pursuant to this Agreement;

 

(d)           all Liabilities of the
Seller that arise or accrue following the Closing Date with respect to accrued
payroll (including accrued payroll Taxes), bonus, vacation pay, severance and
holiday pay of the Employees and any such other Liabilities assumed by
Purchaser pursuant to Section 9.1; and

 

(e)           all other Liabilities with
respect to the Casino Business and the Purchased Assets that arise or accrue
following the Closing Date.

 

2.4           Excluded Liabilities.  Notwithstanding anything in this Agreement to
the contrary, other than the Assumed Liabilities, Purchaser shall not assume,
and shall be deemed not to have assumed, any Liabilities of the Seller, other
than the Assumed Liabilities (the “Excluded Liabilities”).  For the avoidance of doubt, the Excluded
Liabilities shall include, but shall not be limited to, the following:

 

(a)           all Liabilities arising out
of Excluded Assets, including the Excluded Agreements;

 

(b)           all Liabilities for Taxes of
the Seller relating to the Purchased Assets for any Tax periods (or portions
thereof) ending on or before the Closing Date;

 

(c)           all Liabilities arising out
of or relating to any Seller Benefit Plan;

 

(d)           all Liabilities of the
Seller that arise or accrue prior to the Closing Date with respect to accrued
payroll (including accrued payroll Taxes), bonus, vacation pay, severance and
holiday pay of the Employees and any such other Liabilities with respect to the
Employees that arise or accrue prior to the Closing Date;

 

(e)           all other Liabilities with
respect to the Casino Business and the Purchased Assets that arise or accrue
prior to the Closing Date; and

 

(f)            all Liabilities of the
Seller under this Agreement.

 

2.5           Procedures for Assumption of
Agreements.

 

(a)           Subject to the receipt of
any required third-party consents, at the Closing, the Seller shall assume and
assign to Purchaser the Assumed Agreements.

 

12

 

(b)           Nothing herein shall be
deemed to require the conveyance, assignment or transfer of any Purchased Asset
that by its terms or by operation of Law cannot be conveyed, assigned,
transferred or assumed without approval or consent.  Seller and Purchaser shall cooperate with
each other’s reasonable requests for assistance in the solicitation of any such
required approvals or consents. Notwithstanding anything in this Agreement to
the contrary, to the extent that the sale, assignment, license, sublicense,
transfer, conveyance or delivery or attempted sale, assignment, transfer,
conveyance or delivery to Purchaser of any asset that would be a Purchased
Asset or any claim or right or any benefit arising thereunder or resulting
therefrom is prohibited by any applicable Law or would require any governmental
or third party authorizations, approvals, consents or waivers and such
authorizations, approvals, consents or waivers shall not have been obtained
prior to the Closing, the Closing shall proceed without the sale, assignment,
transfer, conveyance or delivery of such asset unless such failure causes a
failure of any of the conditions to Closing set forth in ARTICLE X, in
which event the Closing shall proceed only if the failed condition is waived by
the party entitled to the benefit thereof. 
In the event that the failed condition is waived (except for those
conditions set forth in Section 10.3 hereof, which cannot be waived) and
the Closing proceeds without the transfer or assignment of any such asset, then
following the Closing, Purchaser and the Seller shall use commercially
reasonable efforts, and cooperate with each other, to obtain promptly such
authorizations, approvals, consents and waivers.  Pending such authorization, approval, consent
or waiver, the Parties shall cooperate with each other in any mutually
agreeable arrangement designed to provide Purchaser with all of the benefits of
use of such asset and to the Seller the benefits, including any indemnities,
that they would have obtained had the asset been conveyed to Purchaser at the
Closing.  Once authorization, approval,
consent or waiver for the sale, assignment, transfer, conveyance or delivery of
any such asset not sold, assigned, transferred, conveyed or delivered at
Closing is obtained, the Seller shall assign, transfer, convey and deliver such
asset to Purchaser at no additional cost. 
To the extent that any such asset cannot be transferred or the full
benefits or use of any such asset cannot be provided to Purchaser following the
Closing pursuant to this Section 2.5(b), then Purchaser and the Seller
shall enter into such arrangements (including subleasing, sublicensing or
subcontracting) to provide to the parties hereto the economic (taking into
account Tax costs and benefits) and operational equivalent, to the extent
permitted, of obtaining such authorization, approval, consent or waiver and the
performance by Purchaser of the obligations thereunder.  The Seller shall hold in trust for and pay to
Purchaser promptly upon receipt thereof, all income, proceeds and other monies
received by the Seller derived from its use of any Purchased Asset in
connection with the arrangements under this Section 2.5(b).

 

2.6           Further Conveyances and
Assumptions.

 

(a)           From time to time following
the Closing, to the extent not transferred to Purchaser pursuant to Section 2.1(k)
and to the extent permitted under applicable Law, the Seller shall, and shall
cause its Affiliates to, make available to Purchaser such data in personnel
records of Transferred Employees as is reasonably necessary for Purchaser to
effect the transition of such Employees into Purchaser’s records, provided
that the Seller, at its election, shall be permitted to retain copies of such
data or records in electronic or paper format.

 

(b)           From time to time following
the Closing, the Seller and Purchaser shall, and shall cause their respective
Affiliates to, execute, acknowledge and deliver all such further conveyances,
assignments, consents, notices, assumptions, releases and acquaintances and
such other instruments, and shall take such further actions, as may be
reasonably necessary or appropriate to assure fully to Purchaser and its
respective successors or assigns, the transfer of all of the properties,
rights, titles, interests, estates, remedies, powers and privileges intended to
be conveyed to Purchaser under this Agreement and the Seller Documents and to
assure fully to the Seller and its Affiliates and successors and assigns, the
assumption of the liabilities and obligations intended to be assumed by
Purchaser under this Agreement 

 

13

 

and the Seller Documents, and to otherwise make
effective the transactions contemplated hereby and thereby.

 

2.7           Bulk Sales Law.  Purchaser hereby waives, in connection with
the transactions contemplated by this Agreement and the Seller Documents,
compliance by the Seller with the requirements and provisions of any “bulk-transfer”
provision of Article 6 of the Uniform Commercial Code as it is in effect in the
states where the Seller owns assets to be conveyed to Purchaser hereunder and
other similar bulk transfer notice provisions or Laws of any jurisdiction that
may otherwise be applicable with respect to the sale and transfer of any or all
of the Purchased Assets to Purchaser other than bulk-transfer tax notice
provisions.

 

ARTICLE III

CONSIDERATION

 

3.1           Consideration.  The aggregate consideration for the Purchased
Assets shall be (a) an amount in cash equal to Three Million Two Hundred Fifty
Thousand Dollars ($3,250,000.00) (the “Purchase Price”) and (b) the
assumption of the Assumed Liabilities.

 

3.2           Escrowed Funds.  Pursuant to the terms of the Escrow
Agreement, Purchaser has deposited the Escrowed Funds with the Escrow Agent by
wire transfer of immediately available funds to an account designated by the
Escrow Agent (the “Escrow Account”). 
The Escrowed Funds will be released by the Escrow Agent and delivered to
either Purchaser or the Seller in accordance with the provisions of this
Agreement and the Escrow Agreement.

 

3.3           Payment of Purchase Price;
Assumption of Assumed Liabilities.  On the Closing Date, (a) Purchaser shall pay
to the Seller, by wire transfer of immediately available United States federal
funds into an account designated by the Seller, an amount (the “Closing Date
Purchase Price”) equal to the Purchase Price (less the amount of the
Escrowed Funds applied to the Purchase Price pursuant to the terms and
conditions of the Escrow Agreement), (b) the Escrow Agent shall release and
deliver to the Seller the Escrowed Funds, pursuant to the terms and conditions
of the Escrow Agreement, and (c) the Purchaser shall assume the Assumed
Liabilities by executing and delivering to the Seller the Assignment and
Assumption Agreement, which shall be substantially in the form of Exhibit E;

 

3.4           Reserved.

 

ARTICLE IV

CLOSING AND TERMINATION

 

4.1           Closing Date.  Unless this Agreement is earlier terminated
pursuant to Section 4.4 hereof, and subject to the satisfaction of the
conditions set forth in Sections 10.1, 10.2 and 10.3
hereof (or the waiver thereof by the Party entitled to waive the applicable
condition), the closing of the purchase and sale of the Purchased Assets and
the assumption of the Assumed Liabilities provided for in ARTICLE II
hereof (collectively, the “Closing”) shall take place at the offices of
Balch & Bingham LLP located at 401 East Capitol Street, Suite 200, Jackson,
Mississippi 39201 (or at such other place as the Parties may designate in
writing) at 10:00 a.m. CT on the second Business Day following the satisfaction
or waiver of the conditions set forth in ARTICLE X (other than
conditions that by their nature are to be satisfied at the Closing, but subject
to the satisfaction or waiver of such conditions), unless another time or date,
or both, are agreed to in writing by the Parties.  The date on which the Closing shall be held
is referred to in this Agreement as the “Closing Date.”

 

14

 

4.2           Deliveries by the Seller.  At the Closing, the Seller shall deliver to
Purchaser (or Purchaser shall have otherwise received):

 

(a)           a duly executed special
warranty deed (as customary in the applicable jurisdiction) with respect to the
Owned Real Property, substantially in the form of Exhibit C;

 

(b)           a duly executed assignment
of leases for each of the leases comprising the Assumed Leased Real Property,
substantially in the form of Exhibit D;

 

(c)           a duly executed assignment
and assumption agreement for the Assumed Liabilities (the “Assignment and
Assumption Agreement”), substantially in the form of Exhibit E;

 

(d)           a duly executed bill of sale
(the “Bill of Sale”) and vessel bill of sale (“Vessel Bill of Sale”),
substantially in the form of Exhibit F;

 

(e)           a duly executed assignment
and assumption agreement relating to the Master Agreement and the Property
Lease;

 

(f)            such documentation,
identified by Purchaser at least five (5) days before the date of the Closing,
as may be necessary to change the authorized signatories on any bank accounts,
safety deposit boxes and lock boxes containing Purchased Assets;

 

(g)           the officer’s certificate
required to be delivered pursuant to Section 10.1(b);

 

(h)           a copy (in either electronic
or printed form as reasonably requested by Purchaser) of the Customer Database,
which shall be substantially in the format and contain the categories of
information set forth on Exhibit G and which information shall be
current as of the Closing;

 

(i)            duly executed payoff
letters, lien releases, UCC termination statements, and any such other document
as may be reasonably necessary, from each holder of an other Encumbrance that
is to be released or discharged at or prior to the Closing evidencing the
satisfaction, release or discharge of such other Encumbrance;

 

(j)            all other instruments of
conveyance and transfer as may be necessary to convey the Purchased Assets and
the Assumed Liabilities to Purchaser;

 

(k)           such other documents as the
Purchaser may reasonably request with respect to the transactions contemplated
by this Agreement;

 

(l)            any real estate transfer tax
declaration or similar documents required under applicable law in connection
with the conveyance of the Owned Real Property or the Assumed Leased Real
Property; and

 

(m)          a duly executed Non-Foreign
Affidavit substantially in the form attached hereto as Exhibit H.

 

4.3           Deliveries by Purchaser.  At the Closing, Purchaser shall deliver to
the Seller:

 

(a)           the Closing Date Purchase
Price, in immediately available funds, as set forth in Section 3.2
hereof;

 

(b)           a duly executed copy of the
Assignment and Assumption Agreement;

 

15

 

(c)           a duly executed copy of the
Bill of Sale and a duly executed copy of the Vessel Bill of Sale;

 

(d)           a duly executed assignment
of leases for each of the leases comprising the Assumed Leased Real Property;

 

(e)           a duly executed assignment
and assumption agreement relating to the Master Agreement and the Property
Lease;

 

(f)            the officer’s certificate
required to be delivered pursuant to Section 10.2(b);

 

(g)           all other instruments of conveyance
and transfer as may be necessary to convey the Purchased Assets and the Assumed
Liabilities to Purchaser; and

 

(h)           such other documents,
instruments and certificates as the Seller may reasonably request with respect
to the transactions contemplated by this Agreement.

 

4.4           Termination of Agreement.  This Agreement may be terminated prior to the
Closing only as follows:

 

(a)           by mutual written consent of
the Seller and Purchaser;

 

(b)           by either Purchaser or
Seller, if the transactions contemplated hereby have not been consummated on or
prior to 5:00 p.m. CT on May 1, 2011 (as extended, the “Termination Date”);
provided, however, that, if the Closing shall not have occurred
due to the failure to obtain a necessary Permit, consent or approval of a
Governmental Entity and if all other conditions to the respective obligations
of the Parties to close hereunder that are capable of being fulfilled by the
Termination Date shall have been so fulfilled or waived, then no Party may
terminate this Agreement prior to 5:00 p.m. CT on November 1, 2011; provided,
further, that if the Closing shall not have occurred on or before the
Termination Date due to a breach of any representation, warranty, covenant or
agreement contained in this Agreement by Purchaser or the Seller, then the
breaching Party may not terminate this Agreement pursuant to this Section 4.4(b);

 

(c)           by the Purchaser or the
Seller, if (i) any Gaming Authority or Liquor Authority, as the case may be,
has issued an Order or notified either Party, in either case, that such Gaming
Authority or Liquor Authority, as the case may be, will deny or not grant
Purchaser any Gaming Approval or Liquor License, as the case may be, required
by the terms of this Agreement or by applicable Law as a condition to the consummation
of the transactions contemplated by this Agreement, (ii) any Gaming Authority
or Liquor Authority, as the case may be, has advised the Purchaser to withdraw
any application for Gaming Approvals or for a Liquor License, as the case may
be, (and such Gaming Authority or Liquor Authority, as the case may be, has not
advised Purchaser to resubmit such application with modification); or (iii) Purchaser
fails to comply with the covenants contained herein with respect to obtaining
any Gaming Approval or Liquor License, as the case may be, required by the
terms of this Agreement or by applicable Law as a condition to the consummation
of the transactions contemplated by this Agreement;

 

(d)           by either the Seller or
Purchaser, if a court of competent jurisdiction or other Governmental Entity
(other than a Gaming Authority or a Liquor Authority) shall have issued a Final
Order or taken any other nonappealable final action, in each case, having the
effect of permanently restraining, enjoining or otherwise prohibiting the
Closing and the transactions contemplated hereby; provided, that if such
Final Order or other nonappealable final action shall have been issued or taken
by 

 

16

 

such Governmental Entity due to a breach of any
representation, warranty, covenant or agreement contained in this Agreement by
Purchaser or the Seller, then the breaching Party may not terminate this
Agreement pursuant to this Section 4.4(d); provided  further,
that this Section 4.4(d) does not govern the denial of a Gaming Approval
or Liquor License to Purchaser as specified in Section 4.4(c), which
denial shall be governed instead exclusively by the terms of such Section;

 

(e)           by Purchaser, if the Seller
has breached any material representation, warranty, covenant or agreement
contained in this Agreement which breach (i) would result in a failure of a
condition set forth in Section 10.1 and (ii) is not cured in all
material respects within thirty (30) calendar days after written notice
thereof; provided, however, that if such breach cannot reasonably
be cured within such thirty (30) day period but can be reasonably cured prior
to the Termination Date, and the Seller is diligently proceeding to cure such
breach, this Agreement may not be terminated pursuant to this Section 4.4(e);
provided, further, that Purchaser’s right to terminate this
Agreement under this Section 4.4(e) shall not be available if, at the
time of such intended termination, the Seller has (or would have after the
passage of time) the right to terminate this Agreement under Section 4.4(c)(iii)
or Section 4.4(f);

 

(f)            by the Seller, if Purchaser
has breached any material representation, warranty, covenant or agreement
contained in this Agreement which breach (i) would result in a failure of a
condition set forth in Section 10.2 and (ii) is not cured in all
material respects within thirty (30) calendar days after written notice
thereof; provided, however, that if such breach cannot reasonably
be cured within such thirty (30) day period but can be reasonably cured prior
to the Termination Date, and Purchaser is diligently proceeding to cure such
breach, this Agreement may not be terminated pursuant to this Section 4.4(f);
provided, further, that (1) no cure period shall apply to Purchaser’s
obligations to pay the Closing Date Purchase Price at the Closing on the
Closing Date and (2) the Seller’s right to terminate this Agreement under this Section
4.4(f) shall not be available if, at the time of such intended termination,
Purchaser has (or would have after the passage of time) the right to terminate
this Agreement under Section 4.4(e); or

 

(g)           by the Purchaser, pursuant
to Section 9.5(c) or Section 9.5(d).

 

4.5           Procedure Upon Termination.  In the event of termination by Purchaser or
the Seller, or both, pursuant to Section 4.4 hereof, written notice
thereof shall be given to the other Party or Parties, and this Agreement shall
terminate (except that the provisions of ARTICLE I, this Section 4.5,
Section 4.6, ARTICLE VII, Section 8.7 and ARTICLE XII
hereof shall survive any such termination and shall be enforceable hereunder),
without further action by Purchaser or the Seller.  If this Agreement is terminated as provided
herein each Party shall redeliver or destroy all documents, work papers and
other material of any other Party relating to the transactions contemplated
hereby, whether so obtained before or after the execution hereof, to the Party
furnishing the same; provided that a Party may retain one copy of all such
documents, solely for purposes of litigation relating to this Agreement.

 

4.6           Effect of Termination.

 

(a)           In the event that this
Agreement is validly terminated as provided herein, then each of the Parties
shall be relieved of its duties and obligations arising under this Agreement
after the date of such termination (except that the provisions of ARTICLE I,
Section 4.5, Section 4.6, ARTICLE VII, Section 8.7
and ARTICLE XII hereof shall survive any such termination and shall be
enforceable hereunder) and, except as provided herein, such termination shall
be without liability to Purchaser or the Seller.

 

(b)           In addition to any right the
Purchaser may have under Section 12.2 of this Agreement, upon the
termination of this Agreement pursuant to Section 4.4(a), Section 4.4(d),
Section  

 

17

 

4.4(e), Section 9.5(c), or Section
9.5(d), the Escrow Agent shall release and pay the Escrowed Funds and all
interest accrued thereon to Purchaser, in accordance with the terms of the
Escrow Agreement.

 

(c)           In addition to any right the
Seller may have under Section 12.2 of this Agreement, upon the
termination of this Agreement pursuant to Section 4.4(b), Section 4.3(c)
or Section 4.4(f), the Escrow Agent shall release and pay the Escrowed
Funds and all interest accrued thereon to the Seller, in accordance with the
terms of the Escrow Agreement.

 

(d)           Nothing in this Section 4.6
shall relieve Purchaser or the Seller of any liability for a breach of this
Agreement prior to the date of termination.

 

(e)           The Confidentiality
Agreement shall survive any termination of this Agreement and nothing in this Section
4.6 shall relieve Purchaser, Seller or its Affiliates of their respective
obligations under the Confidentiality Agreement.

 

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF THE SELLER

 

5.1           The Seller’s Representations
and Warranties.  The Seller
represents and warrants to Purchaser that the statements contained in this ARTICLE
V are correct and complete as of the Effective Date and as of the Closing
Date, except, subject to Section 8.8, as expressly set forth in the
disclosure schedules delivered by the Seller to Purchaser on the date hereof
(the “Schedules”).  The
information disclosed in any numbered part shall be deemed to relate to and to
qualify only the particular representation or warranty set forth in the
corresponding numbered section in this Agreement; provided, however, any matter
disclosed in a Schedule by the Seller shall be deemed to constitute disclosure
against all other representations and warranties of the Seller to the extent it
is reasonably apparent on the face of such disclosure that the matter disclosed
is relevant to such other representations and warranties of the Seller.

 

5.2           Organization and Good
Standing.  The Seller
is a limited liability company duly organized, validly existing and in good
standing under the laws of the State of Mississippi and has all requisite
limited liability company power and authority to own, lease and operate its
properties and to carry on its business as now conducted.

 

5.3           Authorization of Agreement.  The Seller has all requisite limited
liability company power and authority to execute and deliver this Agreement and
each other agreement, document, instrument or certificate contemplated by this
Agreement or to be executed by the Seller in connection with the consummation
of the transactions contemplated by this Agreement (the “Seller Documents”),
to perform its obligations hereunder and thereunder and to consummate the
transactions contemplated hereby and thereby. 
The execution and delivery of this Agreement and the Seller Documents
and the consummation of the transactions contemplated hereby and thereby will
be duly authorized by all requisite limited liability company action on the
part of the Seller prior to the Closing. 
This Agreement has been, and each of the Seller Documents will be at or
prior to the Closing, duly executed and delivered by the Seller and (assuming
the due authorization, execution and delivery by the other Parties hereto and
thereto), this Agreement constitutes, and each of the Seller Documents when so
executed and delivered will constitute, legal, valid and binding obligations of
the Seller, enforceable against the Seller in accordance with their respective
terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium
and similar laws affecting creditors’ rights and remedies generally, and
subject, as to enforceability, to general principles of equity, including
principles of commercial reasonableness, good faith and fair dealing
(regardless of whether enforcement is sought in a proceeding at law or in
equity).

 

18

 

 

5.4                                 Conflicts;
Consents of Third Parties.

 

(a)                                  Except as set
forth on Schedule 5.4(a), none of the execution and delivery by the
Seller of this Agreement or the Seller Documents, the consummation of the
transactions contemplated hereby or thereby, or compliance by the Seller with
any of the provisions hereof or thereof will conflict with, or result in any
violation of or default (with or without notice or lapse of time, or both)
under, or give rise to a right of termination, cancellation, payment or acceleration
of any obligation or loss of any material benefit, or result in the creation of
any Encumbrance on any of the Purchased Assets under any provision of (i) the
certificate of formation and operating agreement of the Seller, (ii) any
Contract to which the Seller is a party or by which any of the Purchased Assets
is bound or subject to, or (iii) any applicable Law, except, in the case
of clauses (ii) and (iii), where such conflicts, violations,
defaults, terminations or cancellations would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

 

(b)                                 Except as set
forth on Schedule 5.4(b), no consent, waiver, approval, Order, Permit or
authorization of, or declaration or filing with, or notification to, any Person
or Governmental Entity is required on the part of the Seller in connection with
the execution and delivery of this Agreement or the Seller Documents, the
compliance by the Seller with any of the provisions hereof or thereof, the
consummation of the transactions contemplated hereby or the taking by the
Seller of any other action contemplated hereby, except for such other consents,
waivers, approvals, Orders, Permits, authorizations, declarations, filings and
notifications, where the failure of which to be obtained or made would not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

 

5.5                                 Title to
Purchased Assets.  Except as
set forth on Schedule 5.5 and for Permitted Encumbrances, the Seller has
good and marketable title to, or a valid leasehold interest in, the tangible
personal property constituting the Purchased Assets.  Immediately prior to Closing, the Seller will
have, and, upon delivery to Purchaser on the Closing Date of the instruments of
transfer contemplated by Section 4.2, the Seller will thereby
transfer to Purchaser, good title to, or, in the case of property leased or
licensed by the Seller, a valid leasehold or licensed interest in, all of the
Purchased Assets, free and clear of all Encumbrances, except (a) as set
forth on Schedule 5.5, (b) for the Assumed Liabilities and (c) for
Permitted Encumbrances.

 

5.6                                 Financial
Statements.

 

(a)                                  Schedule 5.6 contains a
true and complete copy of (i) the audited balance sheet of the Seller as
of, and statement of income for the twelve (12) month period ending, December 31,
2009, (the “Audited Financial Information”), and (ii) the unaudited
balance sheets as of and statements of income for the three (3) month
period ending June 30, 2010 (the “Unaudited Financial Information,”
and, collectively with the Audited Financial Information, the “Financial
Information”).  Except as noted
therein and except for normal period-end adjustments and the lack of footnotes
with respect to the Unaudited Financial Information, the Financial Information
was prepared in accordance with GAAP in effect at the time of such preparation
applied on a consistent basis throughout the periods involved (except as may be
indicated in the notes to such Financial Information) and fairly and accurately
presents in all material respects the consolidated financial position of the
Seller as of such date, subject, in the case of the Unaudited Financial
Information, to normally recurring year-end audit adjustments.  Notwithstanding the foregoing, Purchaser
acknowledges that the Unaudited Financial Information was prepared by the
Seller for internal purposes, the Financial Information reflects allocation of
some but not necessarily all costs incurred by Affiliates of the Seller for the
Seller’s benefit, and that no representation or warranty is made that Purchaser
will be able to operate the Casino Business for the costs reflected in the
Financial Information.  Schedule 5.6
sets forth a description of all material services provided by any 

 

19

 

Affiliate to the Seller and a description of all
material services provided by the Seller to any Affiliate and the manner in
which the Seller has been compensated for the costs of providing such services.

 

(b)                                 Other than (i) as
and to the extent reflected or reserved for on the Unaudited Financial
Information or (ii) Liabilities incurred in the ordinary course of
business consistent with past practice since the date of the latest balance
sheet, the Seller has no Liabilities, except for (A) Liabilities disclosed
in Schedule 5.6, (B) Liabilities under any Material Contract, but
only to the extent that such Liabilities do not relate to a breach of such
Material Contract prior to the Closing, and (C) other Liabilities in an
amount not in excess, individually or in the aggregate, of $100,000.

 

5.7                                 Absence of
Certain Changes or Events.

 

(a)                                  Since the date
of the Unaudited Financial Information, there has been no (i) change,
event or development that has had or would reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect; (ii) material
damage, destruction, loss or claim, whether or not covered by insurance, or
condemnation or other taking adversely affecting the Seller, the Leased Real
Property, or the Owned Real Property;

 

(b)                                 Since the date
of the Unaudited Financial Information, the Seller has not (i) made any
fundamental change in the business or operations of the Seller with respect to
the Casino Business; (ii) sold, pledged, leased, disposed of, granted or
encumbered any of the Purchased Assets, except for sales in the ordinary course
of business consistent with past practice, Permitted Encumbrances, or other
sales that do not exceed, individually or in the aggregate, $100,000; (ii) exercised
any option to purchase, sell or lease (whether as lessor or lessee) real
property or any Leased Real Property; (iii) cancelled any debts owed to or
claims held by the Seller with respect to the Casino Business and/or the
Purchased Assets, other than debts owed or claims held which do not exceed
$10,000, or in the ordinary course of business consistent with past practice; (iv) subjected
any of the Purchased Assets to an Encumbrance; (v) failed to maintain the
existing insurance coverage relating to the Owned Real Property and the Leased
Real Property; (vi) made any change in any method of accounting or
auditing practice other than those required by GAAP; (vii) terminated the
employment of or hired any person whose annual compensation is greater than or
equal to or reasonably expected to be greater than or equal to $100,000; or (viii) authorized,
committed or agreed to take any of the foregoing actions.

 

5.8                                 Property.

 

(a)                                  Schedule 5.8(a) sets
forth a legal description of the Owned Real Property.  The Seller has fee simple title to the Owned
Real Property, free and clear of all Encumbrances, except for (i) Permitted
Encumbrances, (ii) the Assumed Liabilities, and (iii) other
Encumbrances set forth on Schedule 5.7(a) that will be released or
discharged at or prior to the Closing.

 

(b)                                 Schedule 5.8(b) sets
forth a list of all real property leased by the Seller as of the date of this
Agreement (collectively, the “Leased Real Property”).  Except as would not reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect, the Seller
has a valid leasehold, license or other interest in the Leased Real Property,
free and clear of all Encumbrances, except for (i) Permitted Encumbrances,
(ii) the Assumed Liabilities and (iii) the other Encumbrances set
forth on Schedule 5.8(b) that will be released or discharged at or
prior to the Closing.

 

5.9                                 Agreements,
Contracts and Commitments.

 

(a)                                  All Contracts
that are Material Contracts are listed in Schedule 5.9.

 

20

 

(b)                                 Except as would
not reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect, the Material Contracts are valid and binding
obligations of the Seller, enforceable by the Seller in accordance with their
respective terms, subject, as to enforcement, to (i) applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting creditors’ rights generally and (ii) general principles of
equity (regardless of whether enforcement is sought in equity or at law).

 

(c)                                  Except as set
forth in Schedule 5.9, (i) the Seller is not (with or without the
lapse of time or the giving of notice, or both) in default under any of the
Material Contracts, and (ii) to the Knowledge of the Seller, no other
party to any of the Material Contracts is (with or without the lapse of time or
the giving of notice, or both) in default under any of the Material Contracts.

 

(d)                                 The Seller has
provided or made available to Purchaser a true and correct copy of all Material
Contracts.

 

5.10                           Litigation;
Orders.  Except as set forth in Schedule
5.10, (a) there is no Legal Proceeding pending or, to the Knowledge of
the Seller, threatened against the Seller or any of its properties or assets
(other than the Excluded Assets) that would reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect and (b) there
is no Order outstanding against the Seller that would reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect.  The Seller is not in default under any Order,
except for any such default or defaults that would not reasonably be expected
to have, individually or in the aggregate, a Material Adverse Effect.

 

5.11                           Environmental
Matters.  Except as set forth in Schedule
5.11, and except as would not reasonably be expected to have, individually
or in the aggregate, a Material Adverse Effect, (i) the Seller is in
material compliance with all applicable Environmental Laws, (ii) in the
past two (2) years the Seller has not received any written notice with
respect to the business of, or any property owned or leased by, the Seller from
any Governmental Entity or third party alleging that the Seller is not in
compliance with any Environmental Law and (iii) to the Knowledge of the
Seller, the Seller has not caused any “release” of a “hazardous substance,” as
such terms are defined under the Comprehensive Environmental Response,
Compensation, and Liability Act, 42 U.S.C. § 9601 et seq., as amended, on any
of the Owned Real Property that requires remediation or investigation under
Environmental Laws.  The representations
and warranties in this Section 5.11 constitute the sole
representations and warranties of the Seller concerning environmental matters.

 

5.12                           Labor Matters.

 

(a)                                  There are no
Collective Bargaining Agreements to which the Seller is a party or by which the
Seller is bound.

 

(b)                                 The following
are set forth in Schedule 5.12(b):

 

(i)                                     All written
employment agreements; and

 

(ii)                                  All employee
handbooks and affirmative action plans.

 

(c)                                  No Employees
are represented by any labor organization. 
No labor organization or group of Employees has made a pending demand
for recognition, and there are no representation proceedings or petitions
seeking a representation proceeding presently pending or, to the Knowledge of
the Seller, threatened to be brought or filed, with the National Labor
Relations Board or other labor relations tribunal.  There is no organizing activity involving the
Seller pending or, to the Knowledge of 

 

21

 

the Seller, threatened by any labor organization or
group of Employees nor has any such organizing activity occurred in the past
four (4) years.

 

(d)                                 There are no
strikes, work stoppages, slowdowns, lockouts, or arbitrations.

 

(e)                                  Schedule
5.12(e), which will be provided to the Purchaser on or before the Closing
Date, states the number of employees terminated by the Seller during the ninety
(90) day period prior to the Closing Date, and contains a complete and accurate
list of the following information for each employee of Seller who has been
terminated or laid off, or whose hours of work have been reduced by more than
fifty percent (50%) by Seller, in the six (6) months prior to the date of
this Agreement:  (i) the date of
such termination, layoff, or reduction in hours; (ii) the reason for such
termination, layoff, or reduction in hours; and (iii) the location to
which the employee was assigned, if any.

 

5.13                           Employee
Benefits.

 

(a)                                  Schedule 5.13(a) sets
forth an accurate and complete list of all (i) “employee welfare benefit
plans,” within the meaning of Section 3(1) of ERISA; (ii) “employee
pension benefit plans,” within the meaning of Section 3(2) of ERISA;
and (iii) bonus, stock option, stock purchase, restricted stock,
incentive, fringe benefit, profit-sharing, pension or retirement, deferred
compensation, medical, life insurance, disability, accident, salary
continuation, severance, accrued leave, vacation, sick pay, sick leave,
supplemental retirement, unemployment and other material employee benefit
plans, programs, agreements and arrangements (whether or not insured)
maintained or contributed to or required to be contributed to by (i) the
Seller or (ii) an Affiliate of the Seller (with respect to current or former
employees of the Seller) for the benefit of employees or former employees of
the Seller.  The plans, programs,
agreements and arrangements described in the preceding sentence are sometimes
referred to herein as the “Seller Benefit Plans.”  Additionally, Schedule 5.13(b) identifies
each Seller Benefit Plan which Purchaser or its Affiliates have or will have
any liability under, on or following the Closing Date, (each an “Assumed
Benefit Plan” and, collectively the “Assumed Benefit Plans”).  The Seller has made available to Purchaser
complete copies of each material written Seller Benefit Plan, as amended and
each summary plan description for such Seller Benefit Plan, to the extent
applicable.

 

(b)                                 With respect to
each Seller Benefit Plan, the Seller has, to the extent applicable, made
available to Purchaser a complete copy of: (i) each Seller Benefit Plan; (ii) the
most recent Annual Return/Report (Form 5500 Series) document and
amendments thereto, if any; (iii) the current summary plan description and
any material modifications thereto, if any; (iv) the most recent annual
financial and/or actuarial report, if any; and (v) the most recent
determination letter from the IRS, if any.

 

(c)                                  Schedule 5.13(a) identifies
each Seller Benefit Plan that is intended to be a “qualified plan” within the
meaning of Section 401(a) of the Code (“Qualified Plans”). The
IRS has issued a favorable determination letter with respect to each Qualified
Plan and the related trust that has not been revoked, and to the Seller’s
Knowledge, no event has occurred that would reasonably be expected to
materially adversely affect the qualified status of any Qualified Plan or the
related trust.  All material
contributions required to be made to any Seller Benefit Plan, for any period
through the date hereof have been timely made or, to the extent not required to
be made or paid on or before the date hereof, have been fully reflected on the
financial statements, to the extent required by GAAP. With respect to each
Seller Benefit Plan, except as would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect, (i) the Seller
has complied, and is now in compliance, with all Laws applicable to such Seller
Benefit Plan, and (ii) each Seller Benefit Plan has been administered in
all material respects in accordance with its terms.

 

22

 

(d)                                 No Seller
Benefit Plan is a Multiemployer Plan as defined in Section 4001(a)(3) of
ERISA (a “Multiemployer Plan”).

 

(e)                                  Except as set
forth in Schedule 5.13(a), neither the execution and delivery of this
Agreement nor the consummation of the transactions contemplated hereby could
reasonably be expected (either alone or in conjunction with any other event)
result in, cause the accelerated vesting, funding or delivery of, or increase
the amount or value of, any payment or benefit to any employee, officer or
director of the Seller under any Seller Benefit Plan.

 

(f)                                    No Seller
Benefit Plan is subject to Title IV of ERISA.

 

(g)                                 Except as set
forth in Schedule 5.13(a), there are no pending actions, claims or
lawsuits that have been asserted or instituted against the Seller Benefit
Plans, the assets of any of the trusts under the Seller Benefit Plans or the
sponsor or administrator of any of the Seller Benefit Plans, or against any
fiduciary of the Seller Benefit Plans with respect to the operation of any of
the Seller Benefit Plans (other than routine claims), and to the Seller’s
Knowledge, there is no existing set of facts that could form the basis for any
such claim or lawsuit.

 

5.14                           Financial
Advisors.  Except as
set forth on Schedule 5.14, no Person has acted, directly or indirectly,
as a broker, finder or financial advisor for the Seller in connection with the
transactions contemplated by this Agreement and no Person acting on behalf of
the Seller is entitled to any fee or commission or like payment from Purchaser
in respect thereof.  The Seller shall be
liable for any fees paid to any Persons in connection with any arrangement set
forth on Schedule 5.14.

 

5.15                           Permits;
Compliance with Laws.  The Seller
holds all permits, licenses and approvals of all Governmental Entities
(including all authorizations under Gaming Laws, Liquor Laws, the Merchant
Marine Act of 1920 and the Shipping Act of 1916 and Certificates of Inspection
issued by the U.S. Coast Guard) (collectively “Permits”), necessary to
conduct the Casino Business in the manner in which it is currently conducted,
except for such Permits, the failure of which to hold, would not reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect,
each of which Permit is in full force and effect in all material respects, and,
to the Seller’s Knowledge and except as set forth on Schedule 5.15, no
event has occurred that permits, or upon the giving of notice or passage of
time or both, would permit revocation, non-renewal, modification, suspension,
limitation or termination of any Permit that currently is in effect, the loss
of which, either individually or in the aggregate, would be reasonably likely
to have a Material Adverse Effect.  To
the Seller’s Knowledge and except as set forth on Schedule 5.15, the
Seller is in compliance with the terms of the Permits, except for such failures
to comply which would not, individually or in the aggregate, be reasonably
likely to have a Material Adverse Effect. 
To the Seller’s Knowledge, and except as set forth in Schedule 5.15,
the businesses conducted by the Seller are not being conducted in violation of
any applicable Law of any Governmental Entity (including any Gaming Laws),
except for possible violations which, individually or in the aggregate, do not
and would not be reasonably likely to have a Material Adverse Effect.  To the Seller’s knowledge and except as set
forth on Schedule 5.15, the Seller has not received a notice of any
investigation or review by any Governmental Entity with respect to the Seller
or the Casino Business that is pending, and, to the Knowledge of the Seller, no
investigation or review is threatened, nor has any Governmental Entity
indicated any intention to conduct the same, other than those the outcome of
which would not, individually or in the aggregate, be reasonably likely to have
a Material Adverse Effect.

 

5.16                           Taxes.

 

(a)                                  The Seller is
and has at all times been characterized as a disregarded entity for Federal
income tax purposes.

 

23

 

(b)                                 With respect to
the Seller and its assets and Liabilities, (i) all material Tax Returns
required to be filed on or before the Closing Date have been timely filed and
all such Tax Returns are true, complete and correct in all material respects;
and (ii) all Taxes required by Law to be paid have been timely paid.

 

(c)                                  There is no
action, suit, proceeding, investigation, audit, written claim or assessment
pending or proposed with respect to Taxes of the Seller or its assets and
Liabilities, and the Seller has not received any written notice from any taxing
authority or Governmental Entity that it intends to conduct an audit or
investigation.

 

(d)                                 There are no
waivers or extensions of, or agreements that have the effect of waiving or
extending, any applicable statute of limitations for the assessment or
collection of Taxes with respect to any Tax Return regarding the Seller or its
assets and Liabilities that remain in effect.

 

(e)                                  The Seller has
complied in all respects with all Laws relating to the payment and withholding
of any and all Taxes and all such withholding Taxes have been or shall be duly
and timely paid to the proper taxing authority or Governmental Entity.

 

5.17                           Vessel.

 

(a)                                  The Vessel is
currently documented with the United States Coast Guard.  The Seller has good and merchantable title to
the Vessel free and clear of all Encumbrances except Permitted Encumbrances and
other Encumbrances that will be released or discharged at or prior to Closing
set forth on Schedule 5.17(a). 
The Seller does not make any representations or warranties as to the
condition or seaworthiness of the Vessel.

 

(b)                                 The Seller is,
and on the Closing Date, will be, a citizen of the United States, within the
meaning of Section 2 of the Shipping Act, 1916, as amended (“Shipping
Act”), and the Vessel is U.S. flagged, U.S. built and fully qualified to
engage in the coastwise trade of the United States.  To the Seller’s Knowledge (i) at no time
has the Vessel been sold, leased or chartered to a person other than a citizen
of the United States within the meaning of the Shipping Act, and (ii) at
no time has the Vessel been flagged, documented, registered or operated under
the authority or registry of a country other than the United States.

 

5.18                           Accounts and
Notes Receivable and Payable.

 

(a)                                  To the Seller’s
Knowledge, all accounts and notes receivable of the Seller have arisen from bona fide transactions in the Ordinary
Course of Business consistent with past practice and are payable on ordinary
trade terms.  All accounts and notes
receivable of the Seller reflected on the Financial Information are good and collectible
at the aggregate recorded amounts thereof, net of any applicable reserve for
returns or doubtful accounts reflected thereof. 
Schedule 5.18(a) sets forth a list of all accounts and notes
receivable of the Seller as of the close of business on the day before the
Closing Date.  To the Knowledge of the
Seller, all of the accounts and notes receivable on Schedule 5.18(a) are
good and collectible at the aggregate recorded amounts thereof.  To the Knowledge of the Seller, none of the
accounts or the notes receivable of the Seller (i) are subject to any
setoffs or counterclaims; or (ii) represent obligations for goods sold on
consignment, on approval or on a sale-or-return basis or subject to any other
repurchase or return arrangement.

 

(b)                                 All accounts
payable of the Seller reflected in the Financial Information or arising after
the date thereof are the result of bona fide
transactions in the Ordinary Course of Business 

 

24

 

and have been paid or are not yet due and
payable.  Schedule 5.18(a) sets
forth a list of all accounts payable of the Seller as of the close of business
on the day before the Closing Date.

 

5.19                           No Other
Representations or Warranties; Schedules.

 

(a)                                  Except for the
representations and warranties contained in this ARTICLE V (as
modified by the Schedules hereto), neither the Seller nor any other Person
makes any other express or implied representation or warranty with respect to
the Seller, the Casino Business, the Purchased Assets (including the value,
condition or use of any Purchased Asset), the Assumed Liabilities or the
transactions contemplated by this Agreement, and the Seller disclaims any other
representations or warranties, whether made by the Seller, any Affiliate of the
Seller or any of their respective officers, directors, employees, agents or
representatives.  Except for the
representations and warranties contained in this ARTICLE V (as
modified by the Schedules hereto), the Seller (i) expressly disclaims and
negates any representation or warranty, expressed or implied, at common law, by
statute or otherwise, relating to the condition of the Purchased Assets
(including any implied or expressed warranty of merchantability or fitness for
a particular purpose, or of the probable success or profitability of the
ownership, use or operation of the Purchased Assets by Purchaser after the
Closing), and (ii) disclaims all liability and responsibility for any
representation, warranty, projection, forecast, statement or information made,
communicated or furnished (orally or in writing) to Purchaser or its Affiliates
or representatives (including any opinion, information, projection or advice
that may have been or may be provided to Purchaser by any director, officer,
employee, agent, consultant or representative of the Seller or any of its
Affiliates).  The Seller makes no
representations or warranties to Purchaser regarding the probable success or
profitability of the Casino Business. 
The disclosure of any matter or item in any Schedule hereto shall not be
deemed to constitute an acknowledgment that any such matter is required to be
disclosed or is material or that such matter would result in a Material Adverse
Effect.

 

(b)                                 In connection
with Purchaser’s review of the Seller and the Purchased Assets, Purchaser has
received or may receive from the Seller certain projections, forward-looking
statements and other forecasts and certain business plan information.  Purchaser acknowledges that (i) there
are uncertainties inherent in attempting to make such estimates, projections
and other forecasts and plans, (ii) Purchaser is familiar with such
uncertainties, (iii) Purchaser is taking full responsibility for making
its own evaluation of the adequacy and accuracy of all estimates, projections
and other forecasts and plans so furnished to it (including the reasonableness
of the assumptions underlying such estimates, projections, forecasts or plans),
and (iv) Purchaser shall have no claim against anyone with respect
thereto, except in the case of fraud, willful misconduct, recklessness, or gross
negligence.  Accordingly, Purchaser
acknowledges that the Seller makes no representation or warranty with respect
to such estimates, projections, forecasts or plans (including the
reasonableness of the assumptions underlying such estimates, projections,
forecasts or plans).

 

ARTICLE VI

REPRESENTATIONS AND WARRANTIES OF PURCHASER

 

6.1                                 Purchaser’s
Representations and Warranties.  Purchaser represents and warrants to the
Seller that the statements contained in this ARTICLE VI are correct
and complete as of the Effective Date and as of the Closing Date, except,
subject to Section 8.8, as expressly set forth in the disclosure
schedules delivered by Purchaser to the Seller on the date hereof (the “Purchaser
Schedules”).  The information
disclosed in any numbered part shall be deemed to relate to and to qualify only
the particular representation or warranty set forth in the corresponding
numbered section in this Agreement; provided, however, any matter disclosed in
a Purchaser Schedule by Purchaser shall be deemed to constitute disclosure
against all other representations and warranties of Purchaser to the extent it
is reasonably 

 

25

 

apparent on the face of such disclosure that the
matter disclosed is relevant to such other representations and warranties of
Purchaser.

 

6.2                                 Organization
and Good Standing.  Purchaser
is a limited liability company duly organized, validly existing and in good
standing under the laws of the State of Nevada and has all requisite corporate
power and authority to own, lease and operate its properties and to carry on
its business as now conducted.

 

6.3                                 Authorization
of Agreement.  Purchaser
has full limited liability company power and authority to execute and deliver
this Agreement and each other agreement, document, instrument or certificate
contemplated by this Agreement or to be executed by Purchaser in connection
with the consummation of the transactions contemplated by this Agreement (the “Purchaser
Documents”), to perform its obligations hereunder and thereunder and to
consummate the transactions contemplated hereby and thereby.  The execution and delivery by Purchaser of
this Agreement and the Purchaser Documents and the consummation of the transactions
contemplated hereby and thereby will be duly authorized by all requisite
corporate action on behalf of Purchaser prior to Closing.  This Agreement has been, and each Purchaser
Document will be at or prior to the Closing, duly executed and delivered by
Purchaser and (assuming the due authorization, execution and delivery by the
other parties hereto and thereto) this Agreement constitutes, and each
Purchaser Document when so executed and delivered will constitute, the legal,
valid and binding obligations of Purchaser, enforceable against Purchaser in
accordance with their respective terms, subject to applicable bankruptcy,
insolvency, reorganization, moratorium and similar laws affecting creditors’
rights and remedies generally, and subject, as to enforceability, to general
principles of equity, including principles of commercial reasonableness, good
faith and fair dealing (regardless of whether enforcement is sought in a
proceeding at law or in equity).

 

6.4                                 Conflicts;
Consents of Third Parties.

 

(a)                                  None of the
execution and delivery by Purchaser of this Agreement or the Purchaser
Documents, the consummation of the transactions contemplated hereby or thereby,
or compliance by Purchaser with any of the provisions hereof or thereof will
conflict with, or result in any violation of or default (with or without notice
or lapse of time, or both) under, or give rise to a right of termination or
cancellation under any provision of (i) the articles of organization and
operating agreement of Purchaser, (ii) any contract to which Purchaser is
a party or by which Purchaser or its assets is bound or subject to or (iii) any
applicable Law, except, in the case of clauses (ii) and (iii),
where such conflicts, violations, defaults, terminations or cancellations would
not, individually or in the aggregate, reasonably be expected to have a
material adverse effect on the ability of Purchaser to perform its obligations
under this Agreement or the Purchaser Documents or to consummate the
transactions contemplated hereby or thereby.

 

(b)                                 Except as set
forth on Schedule 6.4(b), no consent, waiver, approval, Order, Permit or
authorization of, or declaration or filing with, or notification to, any Person
or Governmental Entity is required on the part of Purchaser in connection with
the execution and delivery of this Agreement or the Purchaser Documents, the
compliance by Purchaser with any of the provisions hereof or thereof, the
consummation of the transactions contemplated hereby or the taking by Purchaser
of any other action contemplated hereby, or for Purchaser to conduct the Casino
Business, except for compliance with the applicable requirements of the Gaming
Laws, the Liquor Laws, and the Hart-Scott-Rodino (HSR) Act or any other
applicable Antitrust Law, and except to the extent the same would not
reasonably be expected to have a material adverse effect on the ability of
Purchaser to perform its obligations under this Agreement or the Purchaser
Documents or to consummate the transactions contemplated hereby or thereby.

 

26

 

6.5                                 Litigation.  There are no Legal Proceedings pending or, to
the knowledge of Purchaser, threatened against Purchaser, or to which Purchaser
is otherwise a party before any Governmental Entity, which, if adversely
determined, would reasonably be expected to have a material adverse effect on
the ability of Purchaser to perform its obligations under this Agreement or the
Purchaser Documents or to consummate the transactions hereby or thereby.  Purchaser is not subject to any Order of any
Governmental Entity except to the extent the same would not reasonably be
expected to have a material adverse effect on the ability of Purchaser to
perform its obligations under this Agreement or the Purchaser Documents or to
consummate the transactions contemplated hereby or thereby.

 

6.6                                 Financial
Advisors.  Other than
as set forth on Schedule 6.6, no Person has acted, directly or
indirectly, as a broker, finder or financial advisor for Purchaser in
connection with the transactions contemplated by this Agreement and no Person
acting on behalf of Purchaser is entitled to any fee or commission or like
payment from the Seller in respect thereof. 
Purchaser shall be liable for any fees payable to the Persons set forth
on Schedule 6.6.

 

6.7                                 Financial
Capability.  Purchaser
has, and at Closing shall have, (i) sufficient financial resources
available to pay the Purchase Price and any expenses incurred by Purchaser in
connection with the transactions contemplated by this Agreement, and (ii) the
resources and capabilities (financial or otherwise) to perform its obligations
hereunder.

 

6.8                                 Licensability
of Purchaser and Principals.  Neither Purchaser nor any of its Affiliates
nor any of their respective owners, members, managers, general or limited
partners, directors, officers, key employees or Persons performing management
functions similar to those of an officer (collectively, “Representatives”)
has been denied, or had limited, terminated, suspended or revoked, or had
voluntarily or otherwise withdrawn an application for, a gaming license by a
Governmental Entity or Gaming Authority. 
Purchaser, each of its Affiliates and each of their respective
Representatives are in good standing or their gaming licenses are in full force
and effect in each of the jurisdictions in which Purchaser or any of its
Affiliates owns or operates gaming facilities. 
To the Knowledge of Purchaser, there are no facts, which if known to any
Gaming Authority or Liquor Authority, would (a) be reasonably likely to
result in the delay, denial, non-renewal, termination, revocation, limitation,
modification or suspension of a gaming license or liquor license currently
held, or which may be sought pursuant to this Agreement, by Purchaser, any of
its Affiliates or any of their respective Representatives, or (b) be reasonably
likely to result in a negative outcome in connection with any finding of
suitability proceedings currently pending, or under any future suitability
proceedings necessary for the consummation of this Agreement, including with
respect to Purchaser or any of its Affiliates or any of their respective
Representatives under any Gaming Laws or Liquor Laws.

 

6.9                                 Compliance with
Gaming Laws and Liquor Laws.

 

(a)                                  Purchaser, each
of its Affiliates, and each of their respective Representatives hold or will
hold all Permits necessary to conduct the business and operations of Purchaser
or its Affiliates, as applicable (the “Purchaser Permits”), each of
which Purchaser Permit is or will be in full force and effect in all material
respects as of the Closing Date, and no event has occurred that permits, or,
upon the giving of notice or passage of time or both would permit, delay,
denial, non-renewal, termination, revocation, 
limitation, modification or suspension of any Purchaser Permit.  At Closing, Purchaser, each of its Affiliates
and each of their respective Representatives will be in compliance in all
material respects with the terms and conditions of the Purchaser Permits.  As of the Effective Date, neither Purchaser
nor any of its Affiliates nor any of their respective Representatives has
received notice of any investigation or review by any Governmental Entity under
any Gaming Law or Liquor Law with respect to Purchaser or any of its Affiliates
or any of their respective Representatives that is unresolved, and, to the
knowledge of 

 

27

 

Purchaser, no investigation or review is threatened,
nor has any Governmental Entity indicated any intention to conduct the same.

 

(b)                                 Neither
Purchaser nor any of its Affiliates nor any of their respective Representatives
has received any written claim, demand, notice, complaint, court order or
administrative order from any Governmental Entity in the past three (3) years
under or relating to any violation or possible violation of any Gaming Laws
which did or would be reasonably likely to result in fines or penalties of
$50,000 or more in the aggregate.  To the
knowledge of Purchaser, there are no facts, which if known to the Gaming
Authorities or Liquor Authorities, will or would reasonably be expected to
result in the non-renewal, termination, revocation, limitation, modification or
suspension of an existing material license, finding of suitability,
registration, permit or approval of Purchaser or any of its Affiliates or any
of their respective Representatives under any Gaming Laws or Liquor Laws.  None of Purchaser, its Affiliates or any of
their respective Representatives has suffered a denial, non-renewal,
termination, revocation, limitation, modification or suspension of any Purchaser
Permit held under the Gaming Laws or Liquor Laws.

 

6.10                           Citizenship.  On the Closing Date, Purchaser shall be a
citizen of the United States, within the meaning of Section 2 of the
Shipping Act.

 

6.11                           Purchased
Assets “AS IS”; Purchaser’s Acknowledgment Regarding Same.Notwithstanding
anything contained in this Agreement to the contrary, Purchaser acknowledges
and agrees that the Seller is not making any representations or warranties
whatsoever, express or implied, beyond those expressly given by the Seller in ARTICLE V
hereof (as modified by the Schedules thereto), and Purchaser acknowledges and
agrees that, except for the representations and warranties contained therein,
the Purchased Assets and the Casino Business are being transferred on a “WHERE
IS” and, as to condition, “AS IS” basis. 
Purchaser agrees, warrants, and represents that, except as set forth in
this Agreement, Purchaser has relied, and shall rely, solely upon Purchaser’s
own investigation of all such matters, and that Purchaser assumes all risks
with respect thereto.  EXCEPT AS SET
FORTH IN THIS AGREEMENT, THE SELLER MAKES NO EXPRESS WARRANTY, NO WARRANTY OF
MERCHANTABILITY, NO WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, NOR ANY
IMPLIED OR STATUTORY WARRANTY WHATSOEVER WITH RESPECT TO ANY REAL OR PERSONAL
PROPERTY OR ANY FIXTURES OR THE PURCHASED ASSETS.  Any claims Purchaser may have for breach of
representation or warranty shall be based solely on the representations and
warranties of the Seller set forth in ARTICLE V hereof (as modified
by the Schedules thereto).  Purchaser
further represents that neither the Seller nor any of its Affiliates nor any
other Person has made any representation or warranty, express or implied, as to
the accuracy or completeness of any information regarding the Seller, the
Casino Business, the Purchased Assets, the Assumed Liabilities or the
transactions contemplated by this Agreement not expressly set forth in this
Agreement, and neither the Seller nor any of its Affiliates or any other Person
will have or be subject to any liability to Purchaser or any other Person
resulting from the distribution to Purchaser or its representatives or
Purchaser’s use of, any such information, including any confidential memoranda
distributed on behalf of the Seller relating to the Casino Business or other
publications or data room information provided to Purchaser or its
representatives, or any other document or information in any form provided to
Purchaser or its representatives in connection with the sale of the Casino Business
and the transactions contemplated hereby. 
Purchaser represents that it is a sophisticated entity that was advised
by knowledgeable counsel and financial and other advisors and hereby
acknowledges that it has conducted to its satisfaction, its own independent
investigation of the Casino Business, the Purchased Assets and the Assumed
Liabilities and has had an opportunity to inspect and examine the Purchased
Assets, in making the determination to proceed with the transactions
contemplated by this Agreement, Purchaser has relied solely on the results of
its own independent investigation.

 

28

 

ARTICLE VII

INDEMNIFICATION

 

7.1                                 Indemnification
Obligations of Purchaser.

 

From
and after the Closing, Purchaser shall indemnify, save and hold harmless the
Seller, its Affiliates, and their respective members, managers, officers,
directors, employees, financial advisors, legal advisors, agents or other
representatives, successors, and assigns (each a “Seller Indemnified Party”
and, collectively, the “Seller Indemnified Parties”) from and against
any and all costs, losses, Liabilities, damages, claims, demands, expenses,
including interest, penalties, reasonable attorneys’ fees and amounts paid in
investigation, defense, or settlement of the foregoing (collectively, “Damages”),
paid or incurred, in connection with, arising out of or resulting from (i) any
breach of any warranty or the inaccuracy of any representation of Purchaser
contained or referred to in this Agreement or any certificate delivered by or
on behalf of Purchaser pursuant hereto or in any Ancillary Agreement; (ii) any
breach of or failure to perform any covenant or agreement made, or to be
performed, by Purchaser in this Agreement or in any Ancillary Agreement; or (iii) any
Damages resulting from the ownership, operation or control of the Purchased
Assets or the Casino Business from the Closing Date.

 

7.2                                 Indemnification
Obligations of the Seller.

 

From
and after the Closing, Seller shall indemnify, save and hold Purchaser and its
Affiliates and their respective members, managers, officers, directors,
employees, financial advisors, legal advisors, agents or other representatives,
successors, and assigns (each a “Purchaser Indemnified Party” and,
collectively, the “Purchaser Indemnified Parties”) from and against any
and all Damages paid or incurred, in connection with, arising out of or resulting
from (i) any breach of any warranty or the inaccuracy of any
representation of Seller contained or referred to in this Agreement or any
certificate delivered by or on behalf of the Seller pursuant hereto or in any
Ancillary Agreement; (ii) any breach of or failure to perform any covenant
or agreement made, or to be performed, by Seller in this Agreement or in any
Ancillary Agreement; or (iii) any Damages resulting from the ownership,
operation or control of the Purchased Assets or the Casino Business up to and
until the Closing Date.

 

7.3                                 Limitations.

 

Seller
shall not be required to indemnify a Purchaser Indemnified Party for an
aggregate amount exceeding the Purchase Price (the “Aggregate Indemnity
Amount”).  Any Damages paid by the
Seller or any Affiliate of the Seller under this Agreement or any other
agreement between an Affiliate of the Seller and the Purchaser shall reduce,
dollar for dollar, the amount of the Aggregate Indemnity Amount.  In no event shall a Party be liable for, nor
shall the definition of Damages include, any indirect, incidental, special,
consequential, punitive or exemplary damages arising out of a breach of this
Agreement.  Any claim for which
indemnification is available under this Article VII shall be
reduced by the amount of insurance proceeds actually realized by and paid to or
on behalf of such Party.  Upon making any
indemnification payment under this Article VII, the indemnifying
Party shall be subrogated to all rights of the indemnified Party against any
third party in respect of the claims, if any, to which the indemnification
payment relates.

 

ARTICLE VIII

PRE-CLOSING COVENANTS AND AGREEMENTS

 

8.1                                 Access to
Information.  The Seller
agrees that, prior to the Closing Date, Purchaser shall be entitled, through
its officers, employees and representatives (including its legal advisors and
accountants), to make such investigation of the properties, businesses and
operations of the Casino 

 

29

 

Business and such examination of the books and
records of the Casino Business, the Purchased Assets and the Assumed
Liabilities as it reasonably requests and to make extracts and copies of such
books and records; provided that, the Purchaser shall obtain the prior consent
of the Seller before entering the Property to conduct such investigation.  Any such investigation and examination shall
be conducted during regular business hours upon reasonable advance notice and
under reasonable circumstances.  The
Seller shall cause the officers, employees, consultants, agents, accountants,
attorneys and other representatives of the Seller to cooperate with Purchaser
and Purchaser’s representatives in connection with such investigation and
examination, and Purchaser and its representatives shall cooperate with the
Seller and its representatives and shall use their reasonable efforts to
minimize any disruption to the Casino Business. 
Purchaser will not contact any employee, customer or supplier of the
Seller or the Casino Business with respect to this Agreement without the prior
written consent of the Seller.  Purchaser
agrees to repair at its sole cost any damage to the Real Property or any of the
Purchased Assets or the Excluded Assets caused by Purchaser’s investigation.

 

8.2                                 Conduct of the
Business Pending the Closing.

 

(a)                                  Prior to the
Closing, except (i) as required by applicable Law, (ii) as otherwise
expressly contemplated by this Agreement, or (iii) with the prior written
consent of Purchaser (which consent shall not be unreasonably withheld, delayed
or conditioned), the Seller shall conduct the Casino Business and maintain the
Purchased Assets in the Ordinary Course of Business and repair, normal wear and
tear excepted.

 

(b)                                 Notwithstanding
anything in this Agreement (including the restrictions set forth in Section 8.2(a)),
nothing herein shall preclude, the Seller or any of the Seller’s Affiliates
from taking any action that is necessary to maintain the viability and
marketability of the Property or the Casino Business and to prevent the
destruction, removal, wasting, deterioration, or impairment of the Property or
the Casino Business, except for ordinary wear and tear (including regular
repair and maintenance efforts, continuation of any planned capital
expenditures, and marketing and promotional programs), or any action that the
Seller in good faith determines, after consultation with Purchaser, is
reasonably required in order to consummate the transactions contemplated by
this Agreement or the Ancillary Agreements in accordance with the terms hereof
or thereof.

 

8.3                                 Regulatory
Approvals.

 

(a)                                  Prior to
Closing, Purchaser shall use its best efforts to (i) obtain all Permits of
all Governmental Entities and all other Persons required to be obtained by
Purchaser to effect the transactions contemplated by this Agreement and (ii) take,
or cause to be taken, all action, and to do, or cause to be done, all things
necessary or proper, consistent with applicable Law, to consummate and make
effective in an expeditious manner the transactions contemplated hereby.

 

(b)                                 Purchaser and
the Seller shall cooperate with each other in connection with any investigation
or other inquiry of any Governmental Entity. 
Each Party shall use commercially reasonable efforts to furnish to each
other all information required for any application or other filing to be made
pursuant to any applicable Law in connection with the transactions contemplated
by this Agreement.  Each such Party shall
promptly inform the other Parties of any communication with any Governmental
Entity regarding any such filings or any such transactions.  No Party hereto shall independently
participate in any meeting with any Governmental Entity in respect of any such
filings, investigation or other inquiry without giving the other Party prior
notice of the meeting and, to the extent permitted by such Governmental Entity,
the opportunity to attend and/or participate; provided, however that
this requirement shall not extend to any discussion regarding any finding of
suitability application of a Representative of Purchaser.

 

30

 

(c)                                  Each of
Purchaser and the Seller shall use its commercially reasonable efforts to
resolve such objections, if any, as may be asserted by any Governmental Entity
with respect to the transactions contemplated by this Agreement, including, in
the case of Purchaser, mandatory disassociation with a Representative of
Purchaser or any of its Affiliates if reasonably requested by the Governmental
Entity. In connection therewith, if any Legal Proceeding is instituted (or
threatened in writing to be instituted) challenging that any transaction
contemplated by this Agreement, each of Purchaser and the Seller shall
cooperate and use its commercially reasonable efforts to contest and resist any
such Legal Proceeding, and to have vacated, lifted, reversed or overturned any
decree, judgment, injunction or other order whether temporary, preliminary or
permanent, that is in effect and that prohibits, prevents or restricts
consummation of the transactions contemplated by this Agreement, including by
pursuing all reasonably available avenues of administrative and judicial appeal
and all reasonably available legislative action, unless either the Purchaser or
the Seller reasonably decides that litigation is not in its best interests.

 

8.4                                 Further
Assurances.  Each of the
Seller and Purchaser shall use its commercially reasonable efforts to (a) take
all actions necessary or appropriate to consummate the transactions
contemplated by this Agreement and (b) cause the fulfillment at the
earliest practicable date of all of the conditions to their respective
obligations to consummate the transactions contemplated by this Agreement; and,
in connection with the foregoing, respond to inquiries from the other Party
regarding the status of such actions or conditions.

 

8.5                                 Confidentiality.  Purchaser acknowledges that the Confidential
Information (as defined in the Confidentiality Agreement) provided to it and
its Representatives (as defined in the Confidentiality Agreement) in connection
with this Agreement (including under Section 8.1) and the
contemplation and consummation of the transactions contemplated hereby, is
subject to the terms of the confidentiality agreement previously dated October 15,
2010 entered into between the Purchaser and the Seller (the “Confidentiality
Agreement”), the terms of which are incorporated herein by reference.

 

8.6                                 Preservation of
Records.  For a period ending seven (7) years
after the Closing Date (or such longer period as may be required by any Governmental
Entity or ongoing claim), to the extent allowed by applicable Law, each Party
(the “Requested Party”) shall allow the other Party and any of its
directors, officers, employees, counsel, representatives, accountants and
auditors, at the requesting Party’s sole cost and expense, reasonable access
during normal business hours, and upon reasonable advance notice, to all
employees and files of the Requested Party and any books and records and other
materials included in the Purchased Assets relating to periods prior to the
Closing Date in connection with the general business purposes of the Seller,
whether or not relating to or arising out of this Agreement or the transactions
contemplated hereby, including the preparation of Tax Returns, amended Tax
Returns or claims for refund (and any materials necessary for the preparation
of any of the foregoing), financial statements for periods ending on or prior
to the Closing Date, the management and handling of any audit, investigation,
litigation or other proceeding in, whether such audit, investigation,
litigation or other proceeding is a matter with respect to which
indemnification may be sought hereunder), and complying with the rules and
regulations of the IRS, the Securities and Exchange Commission or any other
Governmental Entity or otherwise relating to the Seller’s other businesses or
operations or such causes of action, provided that after the Closing Date, any
Party in possession of such books and records and other materials may dispose
of such books and records and other materials after such Party gives the other
Party a reasonable opportunity, at such other Party’s expense, to segregate and
remove such books and records and other materials as such Party may
select.  Purchaser hereby agrees that it shall
use its commercially reasonable efforts to make Transferred Employees available
to participate in any claim, litigation or investigation brought by any
Governmental Entity or any other Person against the Seller or any of its
Affiliates or any former officer, director, or employee of the Seller to the
extent that such participation has been requested by the Seller or any of its
Affiliates or any Governmental Entity.

 

31

 

8.7                                 Publicity.  Except as required by Law or any filings by
the Seller or its Affiliates with the Governmental Entities, including without
limitation the Securities and Exchange Commission and Federal Trade Commission,
neither the Seller nor Purchaser shall issue any press release or public
announcement concerning this Agreement or the transactions contemplated hereby
without obtaining the prior written approval of the other Party hereto, which
approval will not be unreasonably withheld or delayed, provided that the Party
intending to make any such release it deems required by Law shall use its
commercially reasonable efforts consistent with such applicable Law to consult
with the other Party with respect to the text thereof.

 

8.8                                 Supplementation
and Amendment of Schedules.  From time to time prior to Closing, the
Seller and the Purchaser may supplement or amend its Schedules with respect to
any matter hereafter arising or discovered after the delivery of the Schedules
pursuant to this Agreement.  Any such
supplement or amendment shall supplement and amend the Schedules for all
purposes hereunder including the satisfaction of the conditions to Closing set
forth in ARTICLE X.

 

ARTICLE IX

ADDITIONAL AGREEMENTS

 

9.1                                 Employees.  Subject to operating the Casino Business in
the Ordinary Course of Business with respect to hiring and firing decisions,
the Seller shall continue to employ all Employees up to and including the
Closing Date, and shall terminate all Employees on the day after the Closing
Date. Purchaser shall offer employment effective as of the Closing to all
active, full-time Employees on terms that are, in the aggregate, substantially
similar to their employment with Seller with respect to then current
compensation and benefits.  Such active,
full-time Employees who accept Purchaser’s offer of employment shall be
referred to as the “Transferred Employees.”  To facilitate Purchaser’s obligations under
this Section 9.1, upon request, the Seller shall provide Purchaser
within a reasonable period prior to the Closing a true and correct list of all
full-time Employees, including with respect to any inactive Employee, the
reason for such inactive status and, if applicable, the anticipated date of
return to active employment.

 

(a)                                  Following the
Closing Date, Purchaser shall use commercially reasonable efforts to provide
continued employment for the Transferred Employees for a period of at least
thirty (30) days (the “Probationary Period”).  Purchaser anticipates retaining the majority
of the Transferred Employees and anticipates that fewer than fifty (50)
full-time employees will experience any employment loss following the
Probationary Period.

 

(b)                                 Effective as of
the Closing Date, the Seller or its Affiliates shall take all actions
reasonably necessary to terminate the participation of each Transferred
Employee in any Seller Benefit Plan that is not an Assumed Benefit Plan.  Purchaser shall or shall cause its Affiliates
to take commercially reasonable efforts so that there shall be in effect as of
the Closing Date “employee welfare benefit plans,” within the meaning of Section 3(1) of
the ERISA (including medical, life insurance and other such employee welfare
benefit plans) that provide Transferred Employees with similar benefits
(including medical, life insurance and other such employee welfare benefit
plans) as provided under the Seller Benefit Plans as of the Closing Date.  Purchaser shall recognize the dollar amount
of all expenses incurred by each Transferred Employee (and his or her eligible
dependents) during the calendar year in which the Closing occurs for purposes
of satisfying such year’s deductible and co-payment limitations or exclusions
under the relevant welfare benefit plans in which they will be eligible to
participate from and after the Closing, to the extent such deductibles and co-payments
credits are permitted by Purchaser’s benefit plans.  Effective as of the Closing Date, Purchaser
shall be responsible for providing, either under an Assumed Benefit Plan or a
welfare benefit plan sponsored by the Purchaser or its Affiliate, the 

 

32

 

continuation of group health coverage required by Section 4980B(f) of
the Code to each “M&A Qualified Beneficiary” as defined under Section 54.4980B-9
of the Treasury Regulations.

 

(c)                                  Purchaser
acknowledges and agrees that any employment loss within the meaning of the WARN
Act suffered by any Employee immediately upon or within ninety (90) days after
the Closing Date shall have been caused by Purchaser’s decision not to continue
the employment of such employee, and not by the sale of the Purchased
Assets.  Purchaser shall be responsible
to and shall indemnify and hold harmless the Seller and its Affiliates for any
and all claims asserted under the WARN Act because of a “plant closing” or “mass
layoff,” as defined therein, occurring after the Closing Date due in whole or
in part to the actions or omissions of Purchaser.  The Seller shall be responsible to and shall
indemnify and hold harmless the Purchaser for any and all claims asserted under
the WARN Act because of a “plant closing” or “mass layoff,” as defined therein,
occurring prior to or on the Closing Date due in whole or in part to the
actions or omissions of the Seller.

 

(d)                                 For purposes of
this Agreement, the Closing Date is and shall be the same as the “effective
date” of the sale within the meaning of the WARN Act.  The Seller is required to give all notices
that may be required under and otherwise to comply with all provisions of the
WARN Act for all terminations of the Employees that occur up to and including
the Closing.  Further, the Purchaser
shall have no such obligation with respect to WARN Act Liabilities that arise
due to the actions or omissions of Seller up to and including the Closing.  Purchaser is only required to give all
notices required under and otherwise to comply with all provisions of the WARN
Act for all involuntary terminations of the Employees that occur after the
Closing Date.  The Seller agrees to
cooperate with Purchaser so that Purchaser may comply with the WARN Act, including
providing Purchaser with information regarding the Employees’ status as
full-time or part-time as defined by the WARN Act, providing Purchaser with
information regarding involuntary employee terminations during the ninety (90)
days prior to Closing, and giving Purchaser access to the Employees to
disseminate a notice pursuant to the WARN Act in the event Purchaser determines
in its sole discretion that such notice must be given to the Employees prior to
Closing due to terminations it will execute during the ninety (90) days
immediately following Closing.  If
Purchaser determines in its sole discretion that notice must be given to the
Employees prior to Closing pursuant to the WARN Act, the providing of such
notice shall not be deemed to violate any of the confidentiality or publicity
provisions contained in this Agreement.

 

(e)                                  The provisions
of this Section 9.1 are for the sole benefit of the parties to this
Agreement and nothing herein, expressed or implied, is intended or shall be
construed to confer upon or give to any Person (including, for the avoidance of
doubt, any Employees), other than the parties hereto and their respective
permitted heirs, executors, administrators, successors and assigns, any legal
or equitable or other rights or remedies (with respect to the matters provided
for in this Section 9.1) under or by reason of any provision of
this Agreement.  Nothing in this Section 9.1
or any other provision of this Agreement shall be construed to modify, amend,
or establish any benefit plan, program or arrangement or in any way affect the
ability of the Parties hereto to modify, amend or terminate any of its benefit
plans, programs or arrangements.

 

9.2                                 Reservations;
Chips; Customer Information and Property.

 

(a)                                  Reservations.  Following Closing, Purchaser shall honor the
terms and rates of all pre-Closing reservations (in accordance with their
terms) with respect to the Casino Business by customers, including advance
reservation cash deposits, for services confirmed by the Seller for any time subsequent
to the Closing, to the extent that such reservations were made in the Ordinary
Course of Business.  Prior to the Closing
Date, the Seller may continue to accept reservations for periods after the
Closing in the Ordinary Course of Business in operating the Casino
Business.  Purchaser recognizes that such
reservations may include discounts or other benefits, including benefits
extended under the Seller’s 

 

33

 

or its Affiliates’ player loyalty program or any
other frequent player or casino awards programs, group discounts, or other
discounts or requirements that food, beverage or other benefits be delivered by
the Seller to the guest or guests, as the case may be, holding such
reservations.  Purchaser shall honor all
banquet facility and service agreements which have been granted to groups,
persons or other customers for periods after the Closing Date at the rates and
on the terms provided in such agreements, to the extent that such agreements
were made prior to Closing in the Ordinary Course of Business.  Purchaser agrees that the Seller cannot make
any representation or warranty that any party holding a reservation or
agreement for facilities or services shall utilize such reservation or honor
such agreement.  Purchaser, by the
execution hereof, solely assumes the risk of non-utilization of reservations
and non-performance of such agreements from and after the Closing.  Schedule 9.2(a) sets forth all of
the Seller’s outstanding reservations with respect to the Casino Business as of
the date of this Agreement.  Seller
agrees to supplement and update such schedule as of the Closing Date.

 

(b)                                 Disposition of
Chips.  From and after (i) the
Closing Date, Purchaser shall be solely responsible and liable for compliance
with applicable Mississippi Gaming Regulations, other Gaming Laws or any
applicable Order with respect to any of the Seller’s or its Affiliates’ gaming
chips, tokens or plaquemines, including any obligation to destroy the same; and
(ii) the date that is ninety (90) days after the Closing Date, Purchaser
shall cease to issue or use and shall not reissue or reuse any of the Seller’s
or its Affiliates’ gaming chips, tokens or plaquemines.

 

(c)                                  Guests’ Baggage
and Other Items.  On the Closing Date,
employees, agents or representatives of the Parties jointly shall make a
written inventory of all baggage, boxes and similar items checked in or left in
the care of the Seller at the Casino Business, and the Seller shall deliver to
Purchaser the keys to any secured area which such baggage and other items are
stored (and thereafter such baggage, boxes and other items inventoried shall be
deemed the “Inventoried Baggage”). 
Purchaser shall be responsible for, and shall indemnify and hold
harmless the Seller and its directors, officers, employees, Affiliates, agents,
successors and permitted assigns for any and all claims asserted or losses
incurred by any of the Seller and its directors, officers, employees,
Affiliates, agents, successors and permitted assigns with respect to any theft,
loss or damage to any Inventoried Baggage from and after the time of such
inventory, and any other baggage, boxes or similar items left in the care of
Purchaser which was not inventoried by the Parties.

 

(d)                                 Safe Deposit
Boxes.  Prior to the Closing, the Seller
shall notify all guests or customers who are then using a safe deposit box at
the Casino Business advising them of the pending change in ownership of the
Casino Business and requesting them to conduct an inventory and verify the
contents of such safe deposit box.  All
inventories by such guests or customers shall be conducted under the joint
supervision of employees, agents or representatives of the Parties.  Upon such inventory and verification, the
Seller shall deliver to Purchaser all keys, receipts and agreements for such
safe deposit box (and thereafter such safe deposit box shall be deemed an “Inventoried
Safe Deposit Box”).  If this
Agreement is terminated after such inventory, Purchaser shall return all keys,
receipts and agreements to the Seller for such Inventoried Safe Deposit Boxes
immediately upon such termination.  Upon
Closing, the Seller shall deliver to Purchaser all keys in the Seller’s
possession for all safe deposit boxes not then in use, and a list of all safe
deposit boxes which are then in use, but not yet inventoried by the depositor,
with the name and room number of such depositor.  After the Closing, the Parties shall make
appropriate arrangements for guests and customers at the Casino Business to
inventory and verify the contents of the safe deposit boxes that are not
Inventoried Safe Deposit Boxes, and upon such inventory and verification, the
Seller shall deliver to Purchaser all keys, receipt and agreements for such
safe deposit box (and such safe deposit box thereafter shall constitute an
Inventoried Safe Deposit Box).  Purchaser
shall be responsible for, and shall indemnify and hold harmless the Seller and
its directors, officers, employees, Affiliates, agents, successors and
permitted assigns for any and all claims asserted or losses incurred by any of
the Seller and its directors, officers, employees, Affiliates, agents,
successors and permitted assigns 

 

34

 

with respect to any theft, loss or damage to the
contents of any safe deposit box from and after the time such safe deposit box
is deemed an Inventoried Safe Deposit Box pursuant to this Section 9.2(d).

 

9.3                                 Certain
Transactions.  Prior to
the Closing, neither Purchaser nor its Affiliates nor any of their respective
Representatives shall take, or agree to commit to take, any action that (or
fail to take, or agree to fail to take, any action, which failure to take)
would or is reasonably likely to delay the receipt of, or to adversely impact
the ability of Purchaser to obtain, any Governmental Approval necessary for the
consummation of the transactions contemplated by this Agreement or necessary to
permit Purchaser to acquire the Purchased Assets and operate the Casino
Business, in each case, after the Closing in substantially the same manner as
owned and operated by the Company prior to the Closing.  Without limiting the foregoing:

 

(a)                                  Neither
Purchaser nor any of its Affiliates nor any of their respective Representatives
shall withdraw, rescind, revoke or otherwise terminate or cancel any
applications, filings or other submissions made in connection with obtaining
any Governmental Approvals (or cause any of the foregoing to occur), unless
requested by the applicable Governmental Authority to resubmit such application
with modification; and

 

(b)                                 If (i) any
Governmental Entity has issued an Order or taken any other action denying or
given any indication it might not grant to Purchaser any necessary Governmental
Approvals or determining or indicating that such Governmental Entity will not
issue to Purchaser all necessary Governmental Approvals, or (ii) a court
of competent jurisdiction or other Governmental Entity shall have issued an
Order or taken any other action having the effect of permanently restraining,
enjoining or otherwise prohibiting the Closing and the transactions
contemplated hereby, Purchaser, and its Affiliates shall use their respective
best efforts, including mandatory disassociation with a Representative of
Purchaser or any of its Affiliates if reasonably requested by the Governmental
Entity, to have vacated, lifted, reversed or overturned any such order, decree,
ruling or action and to have issued such Governmental Approvals (including
exhausting all available remedies, challenges and appeals).

 

9.4                                 Insurance
Policies.  The Seller’s
fire and casualty insurance and other insurance policies shall be cancelled by
the Seller or its applicable Affiliate as of the Closing Date, and any refunded
premiums shall be retained by the Seller. 
Purchaser shall be solely responsible for acquiring and placing its
casualty insurance, business interruption insurance, liability insurance and
other insurance policies for periods after the Closing.

 

9.5                                 Insurance;
Casualty and Condemnation.

 

(a)                                  If, before the Closing,
the Purchased Assets are damaged by fire or other casualty and such damage is
less than $100,000, the Closing shall proceed as scheduled and the Company
shall, as of the Closing, (i) promptly pay to Purchaser all insurance
proceeds received by the Company or its Affiliates with respect to such damage,
destruction or other loss, less any proceeds applied to the physical
restoration of the Purchased Assets and (ii) assign to Purchaser all
rights of the Company and its Affiliates against third parties (including its
insurance carriers) with respect to any causes of action, whether or not
litigation has commenced as of the Closing Date, in connection with such
damage, destruction or other loss, and such proceeds shall constitute full
compensation for the damage to the Purchased Assets, and the Company shall have
no responsibility for restoration or repair of the Purchased Assets or any
resultant loss, directly, by subrogation, or otherwise.

 

(b)                                 In the event
that a condemnation proceeding or payment in lieu of condemnation occurs in
relation to any part of the Purchased Assets prior to the Closing Date and such
payment is less than $100,000, the Closing shall proceed as scheduled and the
Company shall assign and turn over to 

 

35

 

Purchaser effective as of the Closing, and Purchaser
shall be entitled to receive and keep, all awards for the taking by
condemnation and Purchaser shall be deemed to have accepted the Purchased
Assets subject to the taking without reduction in the Purchase Price.

 

(c)                                  If, before the
Closing, the Purchased Assets are damaged by fire or other casualty and such
damage is greater than $100,000 and (i) the Seller has failed to cure such
damage within thirty (30) days from the date of such fire or other casualty; or
(ii) in the case of damage that cannot reasonably be cured within thirty
(30) days and the Seller has commenced and is diligently and continuously
prosecuting the cure during such thirty (30) day period, the Seller has failed
to cure such damage within ninety (90) days from the date of such fire or other
casualty, then the Purchaser, at its sole option, may elect to (x) proceed
with the Closing as scheduled, in which case Section 9.5(a) will
apply; or (y) terminate this Agreement.

 

(d)                                 In the event
that a condemnation proceeding or payment in lieu of condemnation occurs in
relation to any part of the Purchased Assets prior to the Closing Date and such
payment is greater than $100,000, then the Purchaser, at its sole option, may elect
to (i) proceed with the Closing as scheduled, in which case Section 9.5(b) will
apply; or (ii) terminate this Agreement.

 

9.6                                 Post-Closing
Use of Marks Associated with the Casino Business.

 

(a)                                  Purchaser
agrees that at and after the Closing, except as expressly permitted by Section 9.6(c),
Purchaser shall not have the right to use any Excluded Intellectual Property,
including the words “Tropicana” or any other Intellectual Property that is
derived from, relates to or is deceptively or confusingly similar to such name
or that would in any way suggest a relationship or affiliation with the Seller
or any of its Affiliates.  Without
limiting the foregoing, except as expressly permitted by Section 9.6(c),
promptly following the Closing (and in no event later than the 90th day after
the Closing) Purchaser shall delete the words “Tropicana” and “TROP” and all
other Excluded Intellectual Property from the names, logos, marks, d/b/a’s (if
any), and any other uses in association with the Purchased Assets.

 

(b)                                 Without
limiting the foregoing, except as expressly permitted by Section 9.6(c),
as soon as reasonably practicable after the Closing Date, but in any event no
later than ninety (90) days from the Closing Date, Purchaser shall remove or
cover the names “Tropicana” or “TROP” and any other Excluded Intellectual
Property from all signs, buildings, billboards, advertising materials,
websites, chips, cards, gaming supplies and equipment, telephone listings,
labels, stationery, office forms, packaging or other materials included in the
Purchased Assets, and thereafter, Purchaser shall not use such names or any
other Excluded Intellectual Property.

 

(c)                                  Notwithstanding
the foregoing provisions of this Section 9.6(c), Purchaser may,
during the ninety (90)-day period following the Closing Date, continue to use
the names “Tropicana” or “TROP” to the extent that it is not practicable to
remove or cover up such Intellectual Property. 
Any use of the names “Tropicana” or “TROP” by Purchaser pursuant to this
Section 9.6(c) shall: (i) be in conformity with the
practices of the Seller as of the Closing Date, (ii) be in a manner that
does not in any way harm or disparage the Seller or its Affiliates or the
reputation or goodwill of the Tropicana or TROP Marks and (iii) be
contingent on Purchaser maintaining the quality of goods and services used in
connection with the Tropicana or TROP Marks at a standard at least as high as
that of the goods and services offered and sold by the Seller as of the Closing
Date.

 

(d)                                 Each Party
hereby acknowledges and agrees that the remedy at Law for any breach of the
requirements of this Section 9.6 would be inadequate, and agrees
and consents that without intending to limit any additional remedies that may
be available, temporary and permanent injunctive and 

 

36

 

other equitable relief may be granted without proof
of actual damage or inadequacy of legal remedy in any Legal Proceeding which
may be brought to enforce any of the provisions of this Section 9.6.

 

9.7                                 No Control.  Except as permitted by the terms of this
Agreement, prior to the Closing, Purchaser shall not directly or indirectly
control, supervise, direct or interfere with, or attempt to control, supervise,
direct or interfere with, the Casino Business or the Employees.  Until the Closing, the operations and affairs
of the Casino Business and the Purchased Assets are the sole responsibility of
and under the Seller’s complete control, except as otherwise provided in this
Agreement.

 

9.8                                 Employee
Solicitation.

 

(a)                                  Beginning on
the date of this Agreement and ending on the date that is the first anniversary
of the Closing Date, neither the Seller nor any of the Seller’s Affiliates
shall, directly or indirectly, solicit, entice, or encourage any person who
shall have been an Employee during such time, or any other employee of the
Seller during such time, to leave such person’s employment with Purchaser; provided,
however, that the foregoing shall not apply to (i) a general
solicitation of the public for employment so long as such general solicitation
is not specifically targeted to employees, officers or directors of Purchaser
or (ii) to individuals who initiate contact with the Seller or any of the
Seller’s Affiliates regarding such employment without any encouragement or
solicitation by the Seller or any of its Affiliates.

 

(b)                                 Beginning on
the date of this Agreement and ending on the date that is one year following
the earlier of the termination of this Agreement and the Closing, neither
Purchaser nor any of its Affiliates shall, directly or indirectly, solicit,
entice, or encourage any Employee that is not a Transferred Employee or any
other person who shall have been an employee of the Seller or its Affiliates
(other than with respect to the Transferred Employees) during such time, and
with whom Purchaser or any of its Affiliates had contact in connection with, or
who was specifically identified to Purchaser or any of its Affiliates for
purposes of, the transactions contemplated by this Agreement to leave such
person’s employment with the Seller or its Affiliates (other than with respect
to the Transferred Employees); provided, however, that the
foregoing shall not apply to (i) a general solicitation of the public for
employment so long as such general solicitation is not specifically targeted to
employees, officers or directors of the Seller or any of its Affiliates, as the
case may be, or (ii) to individuals who initiate contact with Purchaser or
any of its Affiliates regarding such employment without any encouragement or
solicitation by Purchaser or any of its Affiliates.

 

ARTICLE X

CONDITIONS TO CLOSING

 

10.1                           Conditions
Precedent to Obligations of Purchaser.  The obligation of Purchaser to consummate the
transactions contemplated by this Agreement is subject to the satisfaction, on
or prior to the Closing Date, of each of the following conditions (any or all
of which may be waived by Purchaser in writing in whole or in part to the
extent permitted by applicable Law):

 

(a)                                  each of the
representations and warranties of the Seller set forth in this Agreement
qualified as to materiality or Material Adverse Effect shall be true and
correct, and those not so qualified shall be true and correct in material
respects, at and as of the Closing, except to the extent such representations
and warranties expressly relate to an earlier date (in which case such
representations and warranties qualified as to materiality shall be true and
correct, and those not so qualified shall be true and correct in all material respects
on and as of such earlier date);

 

37

 

(b)                                 the Seller
shall have performed and complied in all material respects with all obligations
and agreements required in this Agreement to be performed by or complied with
it prior to the Closing Date, and Purchaser shall have received a certificate
signed by an authorized officer of the Seller, dated the Closing Date,
certifying to the matters set forth in Section 10.1(a) and
this Section 10.1(b);

 

(c)                                  the Seller shall
have caused to be repaired by a licensed, bonded and insured general contractor
the roof damage more particularly described and set forth on Schedule 10.1(c) and
shall have performed any reasonably necessary remediation to those rooms
containing mold as are more particularly described and set forth on Schedule
10.1(c), and such repair and remediation has been performed in a manner
satisfactory to the Purchaser; and

 

(d)                                 the Seller
shall have delivered, or caused to be delivered, to Purchaser all of the items
set forth in Section 4.2.

 

10.2                           Conditions
Precedent to Obligations of the Seller.  The obligations of the Seller to consummate
the transactions contemplated by this Agreement are subject to the
satisfaction, prior to or on the Closing Date, of each of the following
conditions (any or all of which may be waived by the Seller in whole or in part
to the extent permitted by applicable Law):

 

(a)                                  each of the
representations and warranties of Purchaser set forth in this Agreement
qualified as to materiality or material adverse effect shall be true and
correct, and those not so qualified shall be true and correct in all material
respects, at and as of the Closing Date as though made on the Closing Date,
except to the extent such representations and warranties relate to an earlier
date (in which case such representations and warranties qualified as to
materiality shall be true and correct, and those not so qualified shall be true
and correct in all material respects, on and as of such earlier date);

 

(b)                                 Purchaser shall
have performed and complied in all material respects with all obligations and
agreements required by this Agreement to be performed or complied with by
Purchaser on or prior to the Closing Date, and the Seller shall have received a
certificate signed by an authorized officer of Purchaser, dated the Closing
Date, certifying to the matters set forth in Section 10.2(a) and
this Section 10.2(b); and

 

(c)                                  Purchaser shall
have delivered, or caused to be delivered, to the Seller all of the items set forth
in Section 4.3.

 

10.3                           Conditions
Precedent to Obligations of Purchaser and the Seller.  The respective obligations of Purchaser and
the Seller to consummate the transactions contemplated by this Agreement are
subject to the satisfaction, on or prior to the Closing Date, of each of the
following conditions (any or all of which may be waived by Purchaser and the
Seller in whole or in part to the extent permitted by applicable Law):

 

(a)                                  there shall not
be in effect any Order restraining, enjoining or otherwise prohibiting the
consummation of the transactions contemplated hereby;

 

(b)                                 Tropicana
Entertainment Inc. shall have been released by the City of Vicksburg as a
guarantor from the Master Agreement or the Property Lease, as applicable; and,

 

(c)                                  Purchaser shall
have obtained all (i) Required Governmental Consents as set forth on Schedule
10.3(c); and (ii) Permits, including Gaming Approvals, required by the
terms of this Agreement or any applicable Law.

 

38

 

(d)                                 Seller shall
have received all lien releases and other releases set forth in Section
4.2(i) and required by Section 5.5 hereof.

 

10.4                           Frustration of
Closing Conditions.  Neither the
Seller nor Purchaser may rely on the failure of any condition set forth in Section
10.1, 10.2 or 10.3, as the case may be, if such failure was
caused by such Party’s failure to comply with any provision of this Agreement.

 

ARTICLE XI

TAXES

 

11.1                           Transfer Taxes.  Purchaser shall be responsible for (and shall
indemnify and hold harmless the Seller and its members, managers, directors,
officers, employees, Affiliates, agents, successors and permitted assigns
against) any sales, value added, excise, use, stamp, documentary stamp, filing,
recording, transfer or similar fees or taxes or governmental charges (including
any interest and penalty thereon) in connection with the transfer of the
Purchased Assets (collectively “Transfer Taxes”).  To the extent that any Transfer Taxes are
required to be paid by the Seller (or such Transfer Taxes are assessed against
the Seller), Purchaser shall promptly reimburse the Seller for such Transfer
Taxes.  The Seller and Purchaser shall
cooperate and consult with each other prior to filing any Tax Returns in
respect of Transfer Taxes.  The Seller and
Purchaser shall cooperate and otherwise take commercially reasonable efforts to
obtain any available refunds for Transfer Taxes.

 

11.2                           Purchase Price
Allocation.  The
Purchase Price shall be allocated, apportioned and adjusted among the Purchased
Assets as set forth on Schedule 11.2.

 

ARTICLE XII

MISCELLANEOUS

 

12.1                           Expenses.  Except as otherwise provided in this
Agreement, the Seller and Purchaser shall bear their own expenses, including
attorney’s fees, incurred in connection with the negotiation and execution of
this Agreement and each other agreement, document and instrument contemplated
by this Agreement and the consummation of the transactions contemplated hereby
and thereby; provided that, in the event of a Legal Proceeding by any Party to
enforce obligations under this Agreement, the prevailing party shall be
entitled to recover from the non-prevailing Party its expenses of litigation,
including reasonable attorney’s fees.

 

12.2                           Injunctive
Relief.  Damages at law may be an
inadequate remedy for the breach of any of the covenants, promises and
agreements contained in this Agreement, and, accordingly, any Party hereto
shall be entitled to injunctive relief with respect to any such breach,
including specific performance of such covenants, promises or agreements or an
order enjoining a Party from any threatened, or from the continuation of any
actual, breach of the covenants, promises or agreements contained in this
Agreement.  The rights set forth in this Section
12.2 shall be in addition to any other rights which a Party may have at law
or in equity pursuant to this Agreement.

 

12.3                           Submission to
Jurisdiction; Consent to Service of Process.

 

(a)                                  The Parties
agree to unconditionally and irrevocably submit to the exclusive jurisdiction
of any state or federal court located in the State of Mississippi and any
appellate court from any thereof, for the resolution of any such claim or
dispute.  The Parties hereby irrevocably
waive, to the fullest extent permitted by applicable law, any objection which
they may now or hereafter have to the laying of venue of any such dispute
brought in such court or any defense of inconvenient forum for the maintenance
of such dispute, waiving thereby their right to any other jurisdiction to which
they may be 

 

39

 

entitled to by reason of their present or future
domiciles or otherwise.  Each of the
Parties hereto agrees that a judgment in any such dispute may be enforced in
other jurisdictions by suit on the judgment or in any other manner provided by
law.

 

(b)                                 Each of the
Parties hereby consents to process being served by any Party in any suit,
action or proceeding by delivery of a copy thereof in accordance with the
provisions of Section 12.8.

 

12.4                           WAIVER OF RIGHT
TO TRIAL BY JURY.  EACH PARTY
TO THIS AGREEMENT WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY ACTION, MATTER OR
PROCEEDING REGARDING THIS AGREEMENT OR ANY PROVISION HEREOF.

 

12.5                           Entire
Agreement; Amendments; Waivers and Conflicts.  This Agreement (including the schedules and
exhibits hereto) and the Ancillary Agreements represent the entire
understanding and agreement between the Parties with respect to the subject
matter hereof.  This Agreement can be
amended, supplemented or changed, and any provision hereof can be waived, only
by written instrument making specific reference to this Agreement signed by the
Party against whom enforcement of any such amendment, supplement, modification
or waiver is sought.  No action taken
pursuant to this Agreement, including any investigation by or on behalf of any
Party, shall be deemed to constitute a waiver by the Party taking such action
of compliance with any representation, warranty, covenant or agreement
contained herein.  The waiver by any Party
of a breach of any provision of this Agreement shall not operate or be
construed as a further or continuing waiver of such breach or as a waiver of
any other or subsequent breach.  No
failure on the part of any Party to exercise, and no delay in exercising, any
right, power or remedy hereunder shall operate as a waiver thereof, nor shall
any single or partial exercise of such right, power or remedy by such Party
preclude any other or further exercise thereof or the exercise of any other
right, power or remedy.

 

12.6                           Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the State of Mississippi applicable to
contracts made and performed in such State.

 

12.7                           Notices.  All notices and other communications under
this Agreement shall be in writing and shall be deemed given (a) when delivered
personally by hand (with written confirmation of receipt), (b) when sent by
facsimile (with written confirmation of transmission) or (c) one (1) Business
Day following the day sent by overnight courier (with written confirmation of
receipt), in each case at the following addresses and facsimile numbers (or to
such other address or facsimile number as a Party may have specified by notice
given to the other Party pursuant to this provision):

 

If
to the Seller, to:

 

Columbia
Properties Vicksburg, LLC

c/o
Tropicana Entertainment Inc.

3930
Howard Hughes Parkway, Fourth Floor

Las Vegas, NV 
89169

Attn:  Legal
Dept.

Telephone:
(702) 589-3888

Facsimile:  (702) 589-3889

 

40

 

with
a copy (which shall not constitute notice) to:

 

Balch
& Bingham LLP

401
East Capitol Street, Suite 200

Jackson,
Mississippi 39201

Attn:
Matthew McLaughlin, Esquire

Telephone:
601-965-8162

Facsimile:  866-811-7321

 

If
to Purchaser, to:

 

Delta
Investments & Development, LLC

2520
St. Rose Parkway, Suite 212

Henderson,
NV 89074

Attn:  J. Michael Caldwell

Telephone:
864-422-2396

Facsimile:  864-422-2328

 

With
a copy (which shall not constitute notice) to:

 

Nelson
Mullins Riley & Scarborough, L.L.P.

Suite
900, Poinsett Plaza

104
S. Main Street

Greenville,
SC 29601

Attn:  John M. Campbell, Jr., Esquire

Telephone:
864-250-2234

Facsimile:  864-250-2388

 

12.8                           Severability.  If any term or other provision of this
Agreement is invalid, illegal or incapable of being enforced by any law or
public policy, all other terms or provisions of this Agreement shall
nevertheless remain in full force and effect so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner
adverse to any Party.

 

12.9                           Binding Effect;
Assignment.  This
Agreement shall be binding upon and inure to the benefit of the Parties and
their respective successors and permitted assigns.  Nothing in this Agreement shall create or be
deemed to create any third party beneficiary rights in any Person or entity not
a Party to this Agreement except as provided below.  No assignment of this Agreement or of any
rights or obligations hereunder may be made by the Seller or Purchaser (by
operation of law or otherwise) without the prior written consent of the other
Parties hereto and any attempted assignment without the required consents shall
be void.

 

12.10                     Reserved.

 

12.11                     Release.  Except as provided in the following sentence,
upon the Closing, the Seller shall be deemed to release, discharge and acquit
each of the Purchaser, the officers, directors, equityholders, agents,
professionals, representatives, employees, subsidiaries and Affiliates of each,
and each of the successors, assigns, heirs, and representatives of each (collectively,
the “Purchaser Released Parties”) and the Purchaser shall be deemed to
release, discharge and acquit each of the Seller, the officers, members,
managers, directors, equityholders, agents, professionals, representatives,
employees, subsidiaries and Affiliates of each, and each of the successors,
assigns, heirs, and representatives of each (collectively, the 

 

41

 

“Seller Released Parties”) from any and all
claims, rights, demands, injuries, debts, damages, liabilities, omissions,
contracts, agreements, actions, and causes of action related to the
transactions contemplated by this Agreement, whether at law or in equity, and
whether based on contract, tort, or otherwise, known or unknown, suspected or
unsuspected, of every kind and nature, which the Seller or its successors,
assigns, heirs, and representatives at any time had, now have, or hereafter can
or may have against any of the Purchaser Released Parties, or which Purchaser
or its successors, assigns, heirs, and representatives at any time had, now
have, or hereafter can or may have against any of the Seller Released Parties,
as appropriate, in any way arising from or related to any action or inaction in
connection with the transactions contemplated by this Agreement of any of the
Purchaser Released Parties or Seller Released Parties, as appropriate, to the
extent that such claims, rights, demands, injuries, debts, damages,
liabilities, omissions, accounts, contracts, agreements, actions, and causes of
action arise out of any action or inaction by any of the Purchaser Released
Parties or Seller Released Parties, as appropriate, relating to actions taken
or inaction to date or in the future may be taken or not taken.  The releases provided in this Section
12.11 do not extend to any claims, rights or causes of action related to
breaches of (a) this Agreement, (b) any agreement entered into in connection
herewith, or (c) any claim of actual fraud.

 

12.12                     Termination of
Representations and Warranties.  Except for the representations and warranties
set forth in Section 5.11, all representations and warranties made by the
Seller and the Purchaser in this Agreement shall terminate on the Closing Date
upon the purchase of the Purchased Assets by Purchaser and neither the Seller
nor the Purchaser shall have any liability after the Closing Date for any
breach of any representation or warranty. 
The representations and warranties made by the Seller in Section 5.11
shall survive the Closing for a period of one year following the Closing Date,
and the Seller shall not have any liability for a breach of any representation
or warranty set forth in Section 5.11 unless Purchaser notifies Seller of such
breach on or before the first anniversary of the Closing Date.

 

12.13                     Schedules.  The Parties may, at their respective options,
include in the Schedules or the Purchaser Schedules, as the case may be, items
that are not material to avoid any misunderstanding, and such inclusion, or any
references to dollar amounts, shall not be deemed to be an acknowledgement or
representation that such items are material, to establish any standard of
materiality or to define further the meaning of such terms for purposes of this
Agreement.

 

12.14                     Counterparts.  This Agreement may be executed in one or more
counterparts, each of which will be deemed to be an original copy of this
Agreement and all of which, when taken together, will be deemed to constitute
one and the same agreement.

 

12.15                     Confidential
Treatment.  If the
Seller or Purchaser reasonably believe that information to be listed on any of
the Schedules contains competitively sensitive, proprietary, confidential or
other information that the Parties agree should remain confidential, such
information shall be listed on a Schedule to remain confidential subject to
reasonable confidentiality agreements or protective orders, with a reference to
the Schedule on which such information would be listed but for the desire to
keep such information confidential. 
Inclusion of any information on such confidential Schedule shall be
deemed to be included on the Schedule so referenced.

 

12.16                     No Third-Party
Beneficiaries.  Except as
otherwise expressly provided in Sections 9.2, 12.10, and 12.11,
this Agreement is for the sole benefit of the parties hereto and their
permitted assigns and nothing herein, express or implied, is intended to or
will confer upon any other Person any legal or equitable right, benefit or
remedy of any nature whatsoever under or by reason of this Agreement.

 

*       *       *       *       *

 

42

 

IN
WITNESS WHEREOF, the Parties hereto have caused this Asset Purchase Agreement
to be executed by their respective officers, as of the date first written
above.

 

	
   

  	
  PURCHASER

  
	
   

  	
   

  
	
   

  	
  DELTA INVESTMENTS & DEVELOPMENT, LLC, a

  Nevada limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  J. MICHAEL CALDWELL

  
	
   

  	
  Name:

  	
  J.
  Michael Caldwell

  
	
   

  	
  Title:

  	
  Member

  
				

 

43

 

	
   

  	
  SELLER

  
	
   

  	
   

  
	
   

  	
  COLUMBIA PROPERTIES VICKSBURG, LLC, a

  Mississippi limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  LANCE J. MILLAGE

  
	
   

  	
  Name:

  	
  Lance
  J. Millage

  
	
   

  	
  Title:

  	
  SVP
  — Finance & Treasurer

  
				

 

44

 

Exhibit A

 

ESCROW
AGREEMENT

 

THIS ESCROW AGREEMENT (this “Agreement”)
is made and entered into as of the 1st day of December,
2010 (the “Effective Date”), by and among Columbia Properties Vicksburg,
LLC, a Mississippi limited liability company (“Seller”), Delta
Investments & Development, LLC a Nevada limited liability company (“Purchaser”),
and Chicago Title and Trust Company (the “Escrow Agent”).

 

RECITALS

 

WHEREAS, Seller and Purchaser have
entered into an Asset Purchase Agreement dated as of the 1st day of December, 2010 (the “Purchase Agreement”),
pursuant to which Purchaser has agreed to purchase from Seller all of the
Purchased Assets (as defined in the Purchase Agreement);

 

WHEREAS, pursuant to Section 3.2 of
the Purchase Agreement, Purchaser is required to deposit certain funds into escrow
pursuant to the terms of this Agreement as prepayment of a portion of the
Purchase Price (as defined in the Purchase Agreement); and

 

WHEREAS, on August 5, 2010,
Tropicana Entertainment, Inc., a Delaware corporation (“Parent”) and the
Escrow Agent entered into a Sale Order Agreement (the “Prior Escrow
Agreement”) concerning the deposit of $75,325.00 (which included $75,000.00
(the “First Deposit”) and a $325.00 escrow fee and $25.00 wire fee).

 

WHEREAS, this Agreement supersedes the
Prior Escrow Agreement and such Prior Escrow Agreement is hereby terminated;

 

WHEREAS, any capitalized terms not
defined herein shall have the meanings set forth in the Purchase Agreement; and

 

WHEREAS, Escrow Agent is willing to
act as escrow agent hereunder.

 

NOW, THEREFORE, in consideration of the premises and the mutual
promises, covenants and agreements contained herein, the parties hereto,
intending to be legally bound, hereby agree as follows:

 

ARTICLE I

ESTABLISHMENT OF ESCROW FUND

 

Under
the Prior Escrow Agreement, Purchaser delivered the First Deposit.  Simultaneously with the execution hereof,
Purchaser has delivered to Escrow Agent for deposit into an account by wire
transfer of immediately available funds the sum of $225,000.00 (the “Second
Deposit”, and together with the First Deposit, the “Escrowed Funds”).
Escrow Agent shall initially deposit the Escrowed Funds in a separate trust
account and shall invest and reinvest the Escrowed Funds and the interest
therefrom in such investment grade securities as Purchaser and Seller may
direct from time to time pursuant to joint written instructions.  All amounts so earned from such investments
and reinvestments shall be deemed to be included in the Escrowed Funds.  The Escrowed Funds shall be held by Escrow
Agent subject to the terms and conditions hereinafter set forth. The Parent and
the Escrow Agent hereby agree that this agreement supersedes the Prior Escrow
Agreement and such prior escrow agreement is hereby terminated.

 

Exhibit A-1

 

Escrow
Agent shall not have any liability for any loss sustained as a result of any
investment made pursuant to the instructions of the parties or as a result of
any liquidation of any such investment prior to its maturity or for the failure
of the parties to give Escrow Agent any instruction to invest or reinvest the
Escrowed Funds or any earnings thereon.

 

ARTICLE II

DISTRIBUTION OF ESCROWED FUNDS

 

Section 2.1                                   Distribution of Escrowed Funds.  Escrow Agent shall distribute the Escrowed
Funds as follows:

 

(a)                                  Termination of
Purchase Agreement.

 

(i)                                     In the event
that the Purchase Agreement is terminated pursuant to Section 4.4(a), Section
4.4(d), Section 4.4(e), Section 9.5(c) or Section 9.5(d) thereof, Purchaser may
thereafter terminate the Purchase Agreement by providing written notice to
Seller and Escrow Agent.  Within five (5)
days after its receipt of such written notice from Purchaser, Escrow Agent
shall release and distribute the Escrowed Funds to Purchaser.  In such event, Purchaser and Seller
acknowledge and agree that such notice from Purchaser shall effectively
terminate the Purchase Agreement.

 

(ii)                                  In the event
that the Purchase Agreement is terminated pursuant to Section 4.4(b), 4.4(c),
or Section 4.4(f) thereof, Seller may thereafter terminate the Purchase
Agreement by providing written notice to Purchaser and Escrow Agent.  Within five (5) days after its receipt of
such written notice from Seller, Escrow Agent shall release and distribute the
Escrowed Funds to Seller.  In such event,
Purchaser and Seller acknowledge and agree that such notice from Seller shall
effectively terminate the Purchase Agreement.

 

(b)                                 Closing of
Transaction.  In the
event Purchaser provides written notice to Escrow Agent that the transaction
contemplated by the Purchase Agreement is closing, Escrow Agent shall release
and distribute the Escrowed Funds to Seller on the Closing Date, to an account
as directed by Seller.

 

(c)                                  Mutual Consent.  Within five (5) days after its receipt of joint
written instructions from Purchaser and Seller, Escrow Agent shall release and
distribute the Escrowed Funds in any other manner as so directed.  If such distribution is intended to result in
the termination of this Escrow Agreement, both Purchaser and Seller shall
confirm that fact for Escrow Agent in writing.

 

Section 2.2                                   Full Disbursement.  Upon distribution of all of the Escrowed
Funds by Escrow Agent pursuant to Section 2.1, this Agreement shall terminate;
provided, however, Escrow Agent shall still be entitled to recover any unpaid
fees and expenses that it is due hereunder.

 

Exhibit A-2

 

ARTICLE III

ESCROW AGENT

 

Section 3.1                                   Obligations of Escrow Agent.

 

(a)                                  Duties.  It is agreed that the duties and obligations
of Escrow Agent are those herein specifically provided and no other.  Escrow Agent shall have no liability or
obligation with respect to the Escrowed Funds except for Escrow Agent’s willful
misconduct or gross negligence.  Escrow
Agent’s sole responsibility shall be for the safekeeping, investment, and
disbursement of the Escrowed Funds in accordance with the terms of this
Agreement.  Escrow Agent shall have no
implied duties or obligations and shall not be charged with knowledge or notice
of any fact or circumstance, except as specifically set forth herein or in a
notice delivered pursuant hereto.

 

(b)                                 Right to Follow
Instructions.  Escrow
Agent shall not incur any liability for following the instructions herein
contained or expressly provided for, or written instructions given by the
parties hereto.

 

(c)                                  No Duty to
Verify.  Escrow Agent shall not have
any responsibility for the genuineness or validity of any document or other
material presented to or deposited with it nor any liability for any action
taken, suffered or omitted in accordance with any written instructions or
certificates given to it hereunder and believed by it to be signed by the
proper party or parties.

 

(d)                                 Conflicting
Instructions.  In the
event that Escrow Agent shall be uncertain as to its duties or rights hereunder
or shall receive instructions, claims or demands from any party hereto which,
in its opinion, conflict with any of the provisions of this Agreement, it shall
be entitled to refrain from taking any action until receipt of a Final
Determination.

 

(e)                                  Legal
Proceedings.  Escrow
Agent shall not be required to institute legal proceedings of any kind and
shall not be required to initiate or defend any legal proceedings which may be
instituted against it in respect of the subject matter of this Agreement.  If Escrow Agent does elect to act it will do
so only to the extent that it is indemnified to its satisfaction against the
cost and expense of such defense or initiation. In the event of any
disagreement between any of the parties to this Agreement or between any of
them and any other person which   may
result in adverse claims or demands being made in connection with the Escrowed
Funds or this Agreement or in the event that the Escrow Agent, in good faith,
should be in doubt as to what action it should take hereunder, Escrow Agent
may, at its option, refuse to comply with any claims or demands on it or refuse
to take any other action hereunder. 
Escrow Agent may consult with legal counsel of its choice in the event
of any dispute or question as to the construction of any of the provisions
hereof or its duties hereunder, and it shall incur no liability and shall be
fully protected in acting in accordance with the opinion and instructions of
such counsel.  So long as any such disagreement
or doubt continues to exist, Escrow Agent shall not be or become liable in any
way whatsoever or to any person for its failure or refusal to comply with
directions or instructions that would otherwise be mandatory with respect to
the Escrowed Funds.  The Escrow Agent
shall be entitled to continue to so refrain from acting until (i) the
rights of all parties shall have been fully and finally adjudicated by a court
of competent jurisdiction, or (ii) all differences shall have been
adjusted and all doubt resolved by agreement among all interested persons, and
the Escrow Agent shall have been notified thereof in writing signed by all such
persons.  The rights of the Escrow Agent
under this paragraph are cumulative of all other rights that it may have by law
or otherwise.  Escrow Agent specifically
reserves the right to deposit all property in its possession in connection with
this Agreement into the registry of a court of competent jurisdiction in
Illinois an interpleader or other proceeding upon directing notice to Purchaser
and Seller as provided hereinabove and thereby shall be relieved of any further
responsibility under this Agreement.  The
Escrow Agent shall be entitled to reimbursement for all legal fees and costs
incurred by it in connection with any interpleader or other action filed by
Escrow Agent hereunder and in connection with any dispute or claim involving
the Escrowed Funds or this Agreement.

 

(f)                                    Changes to the
Agreement.  Escrow
Agent shall not be bound by any modification, amendment, termination,
cancellation, rescission or supersession of this Agreement unless the same
shall be in writing and signed by all of the other parties hereto and, if its
rights, duties, immunities or indemnities as Escrow Agent are affected thereby,
unless it shall have given its prior written consent thereto.

 

Section 3.2                                   Release of Escrow Agent.  Escrow Agent (and any successor escrow agent)
may at any time resign by giving written notice of its resignation to the
parties hereto at their respective addresses set forth in this Agreement, at
least thirty (30) days prior to the date specified for such resignation to take
effect, and upon the effective date of such resignation, all property then held
by Escrow Agent shall be delivered by it to such person as may be jointly
designated in writing by Purchaser and Seller, whereupon all of Escrow Agent’s
duties and obligations hereunder shall cease and terminate.  Escrow Agent’s sole responsibility thereafter
shall be to keep safely all property then held by it pursuant to this Agreement
and to deliver the same to a person or persons designated in accordance with
any Final Determination.  Any successor
escrow agent shall execute, acknowledge and deliver to Purchaser and Seller an instrument
accepting such duties and obligations hereunder; and thereupon such successor
escrow agent, without any further act, deed or conveyance, shall become fully
vested with all rights, duties and obligations of its predecessor under this
Agreement, with like effect as if originally named Escrow Agent.

 

Section 3.3                                   Indemnity of Escrow Agent. Purchaser and Seller
severally agree to indemnify Escrow Agent for, and hold it harmless from, and
against one-half of any loss, liability or expense incurred by Escrow Agent
arising out of or in connection with its duties, obligations or 

 

Exhibit A-3

 

performance
as Escrow Agent hereunder, except as caused by its gross negligence or willful
misconduct, including the reasonable legal costs and expenses of defending
itself against any claim or liability in connection with its performance
hereunder.  The terms of this Section
shall survive the termination of this Agreement and, with respect to claims
arising in connection with Escrow Agent’s duties while acting as such, the
resignation or removal of Escrow Agent.

 

Section 3.4                                   Fees of Escrow Agent. Escrow Agent shall be
entitled to compensation for services according to the Fee Schedule attached
hereto as Schedule A.  All fees shall be paid in United States currency
and payable in the United States at the office of Escrow Agent.  Escrow Agent shall have a first lien on the
Escrowed Funds held by it for compensation reimbursement and indemnification.  Purchaser and Seller agree that, as between
themselves, Escrow Agent’s fees shall be shared equally by both parties.

 

ARTICLE IV

MISCELLANEOUS

 

Section 4.1                                   Binding Effect.  This
Agreement shall inure to the benefit of and shall be binding upon Purchaser,
Seller and Escrow Agent and their respective successors and assigns.  Without the prior written consent of the
other parties, none of the parties to this Agreement may assign their rights,
duties or obligations hereunder to any other person or entity.

 

Section 4.2                                   Governing Law.  This
Agreement shall be governed by and construed in accordance with the laws of the
State of Mississippi (without giving effect to the conflict of law principles
thereof).

 

Section 4.3                                   Headings.  The section
and paragraph headings contained in this Agreement are for reference purposes
only and shall not affect in any way the meaning or interpretation of this
Agreement.

 

Section 4.4                                   Notices.  All notices
and other communications under this Agreement shall be in writing and shall be
deemed given (a) when delivered personally by hand (with written confirmation
of receipt), (b) when sent by facsimile (with written confirmation of
transmission) or (c) one (1) business day following the day sent by overnight
courier (with written confirmation of receipt), in each case at the following
addresses and facsimile numbers (or to such other address or facsimile number
as a party may have specified by notice given to the other party pursuant to
this provision):

 

	
  To
  Purchaser:

  	
  Delta
  Investments & Development, LLC

  
	
   

  	
  2520
  St. Rose Parkway, Suite 212

  
	
   

  	
  Henderson,
  Nevada 89074

  
	
   

  	
  Fax:  (864) 422-2328

  
	
   

  	
  Attn:  J. Michael Caldwell

  
	
   

  	
   

  
	
  With
  a copy to:

  	
  John
  M. Campbell, Jr., Esq. 

  
	
   

  	
  Nelson
  Mullins Riley & Scarborough LLP

  
	
   

  	
  104
  S. Main Street, Suite 900

  
	
   

  	
  Greenville,
  South Carolina 29601

  
	
   

  	
  Fax:
  (864) 250-2388

  

 

Exhibit A-4

 

	
  To
  Seller:

  	
  Columbia
  Properties Vicksburg, LLC

  
	
   

  	
  c/o Tropicana Entertainment, Inc.

  
	
   

  	
  3930
  Howard Hughes Parkway, Fourth Floor

  Las Vegas, Nevada 89169

  
	
   

  	
  Fax:  (702) 589-3889

  Attn:  Legal Department

  
	
   

  	
   

  
	
  With
  a copy to:

  	
  Matthew
  McLaughlin, Esq.

  Balch & Bingham LLP

  
	
   

  	
  401
  East Capitol Street, Suite 200

  
	
   

  	
  Jackson,
  Mississippi 39201

  
	
   

  	
  Fax:  (866) 811-7321

  
	
   

  	
   

  
	
  To
  Escrow Agent:

  	
  Chicago
  Title and Trust Company

  
	
   

  	
  171
  North Clark

  
	
   

  	
  Chicago,
  Illinois 60601

  
	
   

  	
  Fax:
  (312) 223-2108

  
	
   

  	
  Attn:
  Nancy Castro

  

 

or
such other address or addresses as shall be designated by a party hereto to the
others in writing.  Any such notice,
claim or other communication shall be deemed conclusively to have been given
and received (i) on the first business day following the day timely received by
a national overnight courier, with the cost of delivery prepaid; or (ii) when
otherwise personally delivered to the addressee.

 

Section 4.5                                   Entire Agreement.  This Agreement constitutes the entire agreement
among the parties hereto with respect to the subject matter hereof, and
supersedes all prior oral or written agreements, commitments or understandings
among them with respect to the matters provided for herein.

 

Section 4.6                                   Counterparts.  This
Agreement may be executed in two or more counterparts, each of which shall be
deemed to be an original but all of which together shall constitute one and the
same instrument.

 

Section 4.7                                   Modification.  This
Agreement may be modified, altered or amended only by a written instrument
signed by each of the parties hereto.

 

Section 4.8                                   Method of Payment.  All transfers of funds pursuant to this
Agreement shall be made by wire transfer of immediately available United States
funds.

 

Section 4.9                                   References to Other Documents.  It is expressly understood and agreed by the
parties hereto that all references in this Agreement to the Purchase Agreement
are for the convenience of Purchaser and Seller and that Escrow Agent shall
have no obligations or duties with respect thereto.

 

Section 4.10                            Waiver of Breach.  The waiver by Purchaser of a breach of this
Agreement by Escrow Agent shall not constitute a waiver of any right or remedy
Purchaser may have against Seller under the Purchase Agreement or hereunder.  The waiver by Seller of a breach of this
Agreement by Escrow Agent shall not constitute a waiver of any right or remedy
Seller may have against Purchaser under the Purchase Agreement or hereunder.

 

Exhibit A-5

 

Section 4.11                            Additional Actions and Documents.  Each of the parties hereto hereby agrees to
take or cause to be taken such further actions, to execute, deliver and file or
cause to be executed, delivered and filed such further documents and
instruments, and to obtain such consents as may be necessary or as may be
reasonably requested in order to fully effectuate the purposes, terms and
conditions of this Agreement.

 

Section 4.12                            Waiver of Terms.  Any
of the terms or conditions of this Agreement may be waived, but only in
writing, at any time by the party which is entitled to the benefits
thereof.  No waiver of any of the
provisions of this Agreement shall be deemed to or shall constitute a waiver of
any other provision hereof (whether or not similar).

 

Section 4.13                             Defined Terms. 
Capitalized terms used herein and not otherwise defined herein or in the
Purchase Agreement shall have the meaning set forth below:

 

“Final Determination” means (i) joint
written instructions from Purchaser and Seller; (ii) the final and
unappealable order of competent jurisdiction regarding the matter; or (iii) a
final arbitration award regarding the matter.

 

[Signatures Appear
on the Following Page]

 

Exhibit A-6

 

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

 

	
   

  	
  PURCHASER:

  
	
   

  	
   

  	
   

  
	
   

  	
  DELTA
  INVESTMENTS & DEVELOPMENT, LLC, a Nevada limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:
  

  	
  J.
  Michael Caldwell

  
	
   

  	
  Title:

  	
  Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SELLER:

  
	
   

  	
   

  	
   

  
	
   

  	
  COLUMBIA
  PROPERTIES VICKSBURG, LLC, a Mississippi limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ESCROW AGENT:

  
	
   

  	
   

  	
   

  
	
   

  	
  CHICAGO TITLE AND TRUST COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
  Nancy
  Castro

  
	
   

  	
  Title:

  	
  Escrow
  Officer

  

 

Exhibit A-7

 

SCHEDULE A

 

ESCROW AGENT’S FEE SCHEDULE

 

Escrow Agent’s fees shall be
as follows:  (a) $300.00 for the
first ninety (90) day period commencing as of the Effective Date, and (b) $150.00
for each ninety (90) day period thereafter. 
All such fees shall be payable in advance on the first day of the period
to which such fees relate and shall be prorated for any partial period.

 

 

Exhibit B

 

[RESERVED]

 

Exhibit B-1

 

Exhibit C

 

Instrument
Prepared by

and
Return to:

Balch &
Bingham LLP

Attn:  Matthew P. McLaughlin

MS
Bar # 100691

P.O. Box
22587

Jackson,
MS 39201

(601)-961-9900

 

STATE
OF MISSISSIPPI

COUNTY
OF WARREN

 

SPECIAL WARRANTY DEED

 

	
  GRANTOR’S
  ADDRESS:

  	
   

  	
  GRANTEE’S
  ADDRESS:

  
	
  COLUMBIA
  PROPERTIES VICKSBURG, LLC

  	
   

  	
  DELTA
  INVESTMENTS &

  
	
  Attn:
  Marc Rubenstein

  	
   

  	
  DEVELOPMENT,
  LLC

  
	
  3930
  Howard Hughes Parkway, Fourth Floor

  	
   

  	
   

  
	
  Las
  Vegas, NV 89169

  	
   

  	
  Phone:
  (     ) 

  
	
  Phone:
  (     ) 

  	
   

  	
   

  

 

 

Indexing
Instructions:                       [                                 ]

 

Exhibit C-1

 

For
and in consideration of the sum of Ten and No/100 Dollars ($10.00), cash in
hand paid, and other good and valuable consideration, the receipt of which is
hereby acknowledged, Columbia Properties Vicksburg, LLC, a Mississippi
liability company (“Grantor”), does hereby sell, convey and warrant specially
unto Delta Investments & Development, LLC, a Nevada limited liability
company, (“Grantee”), the property situated and being in Warren County,
Mississippi, more particularly described as follows, to-wit:

 

This
conveyance is made subject to any and all easements, restrictive covenants and
conditions, and prior oil, gas, and mineral reservations of record.

 

Taxes
for the year 2010 are assumed by the Grantees.

 

WITNESS
THE DULY AUTHORIZED SIGNATURE effective the            
day of                              ,
2010.

 

	
   

  	
  GRANTOR:

  
	
   

  	
   

  	
   

  
	
   

  	
  COLUMBIA
  PROPERTIES VICKSBURG, LLC, a Mississippi limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
  BY:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ITS:

  	
   

  

 

 

Prepared
without the benefit of title examination.

 

Exhibit C-2

 

STATE
OF [                                    ]

COUNTY
OF [                             ]

 

Personally
appeared before me, the undersigned authority in and for the said county and
state, on this the          day of
                 ,
2010, within my jurisdiction, the within named                                                        ,
who acknowledged that he/she is the                   
of Columbia Properties Vicksburg, LLC, a Mississippi limited liability company,
and as the act and deed of said limited liability company, he/she executed the
above and foregoing instrument, after first having been duly authorized so to
do.

 

 

	
   

  	
   

  
	
   

  	
  NOTARY
  PUBLIC

  
	
   

  	
  My
  Commission Expires:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [S E A L]

  

 

Exhibit C-3

 

Exhibit D

 

ASSIGNMENT OF LEASES

 

THIS ASSIGNMENT OF LEASES (this “Assignment”),
made as of                        
              ,
2010, by and between Columbia Properties Vicksburg, LLC, a Mississippi limited
liability company (“Assignor”),
and Delta Investments & Development, LLC, a Nevada limited liability
company (“Assignee”).

 

W I T N E S S E T H:

 

WHEREAS, Assignor and Assignee entered into that certain Asset Purchase
Agreement dated                      
          , 2010 (the “Agreement”), for the purchase and sale of
certain real property (“Property”)
more particularly described in Schedule 5.8(a) attached to the Agreement.

 

WHEREAS, this Assignment is being made pursuant to the terms of the
Agreement for the purpose of assigning to Assignee all of Assignor’s right,
title and interest in and to those certain leases as are set forth in Exhibit “A”
attached hereto and incorporated herein by reference (the “Leases”).

 

NOW THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree
as follows:

 

1.                                       Assignment of
Leases.  Assignor hereby grants,
assigns, transfers, conveys and delivers to Assignee the Leases and all of the
right, title, estate, interest, benefits and privileges of the lessor
thereunder, and Assignee hereby accepts such assignment, provided, however,
that Assignor hereby retains all contract rights under the Leases which accrued
prior to the transfer of the Property to Assignee, including, without
limitation, any and all rights and causes of action to recover past-due rent or
other charges due under the Leases.

 

2.                                       Assumption of
Obligations.  By
acceptance of this Assignment, Assignee hereby assumes and agrees to perform
and to be bound by all of the terms, covenants, conditions and obligations
imposed upon or assumed by Assignor under the Leases.  Said assumption shall have application only
to those obligations under the Leases first accruing or arising on or after the
delivery of this Assignment and shall have no application to obligations
accruing or arising prior to said date. 
Without limiting the generality of the foregoing, Assignee acknowledges
receipt from Assignor of the security deposits held under the Leases and
Assignee hereby assumes the obligation to return the security deposit to the
tenant under the Lease in accordance with the terms of the Leases.  Assignee shall defend, indemnify and hold
harmless Assignor from and against any and all “Claims” asserted against or
incurred by Assignor as a result of any acts or omissions occurring on or after
the date of this Assignment in connection with the Leases.  Assignor shall defend, indemnify and hold
harmless Assignee from and against any and all Claims asserted against or
incurred by Assignee as a result of any acts or omissions of Assignor occurring
prior to the date of this Assignment in connection with the Leases.  “Claims” means claims, demands, causes of
action, losses, damages, liabilities, judgments, costs and expenses (including
attorneys’ fees, whether suit is instituted or not).

 

Exhibit D-1

 

3.                                       EXCEPT AS MAY BE
SET FORTH IN ANOTHER DOCUMENT OR AGREEMENT, THE LEASES AND DEPOSITS ARE BEING
ASSIGNED WITHOUT ANY REPRESENTATION OR WARRANTY WHATSOEVER.  ASSIGNEE IS HEREBY ACQUIRING THE LEASES AND
DEPOSITS BASED SOLELY UPON ASSIGNEE’S OWN INDEPENDENT INVESTIGATIONS AND NOT IN
RELIANCE ON ANY INFORMATION PROVIDED BY ASSIGNOR OR ASSIGNOR’S AGENTS OR
CONTRACTORS.  ASSIGNOR SPECIFICALLY
DISCLAIMS ANY WARRANTY, GUARANTY OR REPRESENTATION, ORAL OR WRITTEN, PAST OR
PRESENT, EXPRESSED OR IMPLIED, CONCERNING THE LEASES AND DEPOSITS OR ASSIGNOR’S
TITLE THERETO.

 

4.                                       Successors and
Assigns.  This Assignment shall be
binding upon and inure to the benefit of the successors, assigns, personal
representatives, heirs and legatees of the respective parties hereto.

 

5.                                       Attorneys’ Fees.  In the event of the bringing of any action or
suit by a party hereto against another party hereunder by reason of any breach
of any of the covenants, conditions, agreements or provisions on the part of
the other party arising out of this Assignment, then in that event the
prevailing party shall be entitled to have and recover of and from the other
party all costs and expenses of the action or suit, including reasonable
attorneys’ fees.

 

6.                                       Governing Law.  This Assignment shall be governed by,
interpreted under, and construed and enforceable with, the laws of the State of
Mississippi.

 

7.                                       Counterparts.  This Assignment may be executed in multiple
counterparts, each of which shall be deemed an original, but all of which,
together, shall constitute one and the same instrument.

 

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

 

Exhibit D-2

 

SIGNATURE PAGE

ASSIGNMENT OF LEASES

 

 

	
   

  	
  Assignor: Columbia Properties
  Vicksburg, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:
  

  	
   

  
	
   

  	
  Title:

  	
   

  

 

Exhibit D-3

 

SIGNATURE PAGE

ASSIGNMENT OF LEASES

 

 

	
   

  	
  Assignee: Delta Investments &
  Development, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:
  

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

Exhibit D-4

 

Exhibit A

of

Assignment of Leases

 

List
of the “Leases”

 

Exhibit A-1

 

Exhibit E

 

ASSIGNMENT AND ASSUMPTION AGREEMENT

 

THIS
ASSIGNMENT AND ASSUMPTION AGREEMENT (this “Agreement”),
made and entered into as of this         
day of                                 ,
2010, is by and between Columbia Properties Vicksburg, LLC, a Mississippi
limited liability company (the “Assignor”),
and Delta Investments & Development, LLC, a Nevada limited liability
company (the “Assignee”).

 

W I T N E S S E T H:

 

WHEREAS,
Assignor and Assignee are parties to that certain Asset Purchase Agreement
dated as of                                 ,
2010 (the “Asset Purchase Agreement”);
and

 

WHEREAS,
Assignor is a party to certain agreements, contracts and commitments related to
the business of Assignor being sold and transferred to Assignee pursuant to the
Asset Purchase Agreement; and

 

WHEREAS,
pursuant to the Asset Purchase Agreement, Assignor has sold and transferred
certain of its business and assets to Assignee, and Assignee has agreed to
assume certain liabilities and obligations of Assignor; and

 

WHEREAS,
Assignor and Assignee now desire to evidence Assignor’s assignment of certain
of its agreements, contracts and commitments to Assignee, and Assignee’s
assumption of certain of the liabilities and obligations of Assignor;

 

NOW
THEREFORE, in consideration of the premises and of the mutual covenants and
agreements hereinafter set forth and set forth in the Asset Purchase Agreement,
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto, intending to be legally
bound, hereby agree as follows:

 

1.                                       Assignment by
Assignor.  Assignor
hereby assigns, transfers, sells and conveys, by these presents, to Assignee,
all of Assignor’s rights, title and interest in and to the following
(collectively, the “Contracts”):

 

(a)                                  all contracts,
agreements, licenses, equipment leases or arrangements (if any) that are listed
or described on Schedule 2.1(f) to the Asset Purchase Agreement;

 

(b)                                 all guaranties,
warranties and service contracts relating to the Purchased Assets.

 

2.                                       Assumption by
Assignee.  Assignee
does hereby assume and agree to perform, pay and discharge all obligations of
Assignor under the Contracts that arise after the Effective Date. In addition,
Assignee agrees to assume all obligations with respect to subscription
fulfillment after the Effective Date.

 

3.                                       Further
Assurances.  Assignor,
upon the reasonable request of Assignee at any time and from time to time after
the date hereof, will forthwith, at its own expense, execute and deliver such
further instruments of assignment, transfer, conveyance, endorsement, direction
or authorization and do all things necessary or proper, as such requesting
party or its counsel may reasonably request, in order

 

Exhibit E-1

 

to
vest perfect or confirm, of record or otherwise, the right, title and interest
of Assignee, its successors and assigns, in and to the Purchased Assets.

 

4.                                       Defined Terms.  Unless otherwise indicated, capitalized terms
used but not defined in this Agreement shall have the respective meanings
ascribed to them in the Asset Purchase Agreement.

 

5.                                       Other
Agreements.  This
Agreement shall be subject to the terms and conditions of the Asset Purchase
Agreement, and shall in no way alter the provisions of the Asset Purchase
Agreement, or the rights and responsibilities of the parties thereto.

 

6.                                       Headings.  The headings contained in this Agreement as
to the contents of particular sections or other subdivisions contained herein
are inserted for convenience of reference only and are in no way to be
construed as part of this Agreement or as limitations on the scope of particular
sections or other subdivisions to which they refer and shall not affect the
interpretation or meaning of this Agreement.

 

7.                                       Governing Law.  This Agreement shall be governed by, and
controlled, construed and enforced in accordance with the laws of the State of
Mississippi, without regard to its choice of laws principles.

 

8.                                       Counterparts.  This Agreement may be executed simultaneously
and in any number of counterparts, each of which shall be deemed an original
but all of which together shall constitute one and the same instrument.

 

9.                                       Successor and
Assigns.  This Agreement shall bind and
inure to the benefit of and be enforceable by the parties hereto and their
respective successors and assigns.

 

10.                                 Miscellaneous.  This Agreement may be amended or modified
only in a written instrument signed by each of the parties hereto.

 

[Remainder of Page Intentionally Left Blank]

 

Exhibit E-2

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed on their respective behalves by their respective duly authorized
officers all as of the day and year first above written.

 

	
   

  	
  COLUMBIA
  PROPERTIES VICKSBURG, LLC

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Its

  	
   

  
	
   

  	
   

  
	
   

  	
  DELTA
  INVESTMENTS & DEVELOPMENT, LLC

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Its

  	
   

  

 

Exhibit E-3

 

Exhibit F

 

BILL OF SALE

 

THIS
BILL OF SALE is executed and delivered as of the         
day of                               ,
2010, by COLUMBIA PROPERTIES VICKSBURG, LLC,
a Mississippi limited liability company (“Seller”),
for the benefit of DELTA INVESTMENTS &
DEVELOPMENT, LLC, a Nevada limited liability company (“Buyer”).

 

W  I  T
N  E  S  S  E  T  H:

 

WHEREAS, Seller has sold and conveyed to Buyer the
real property identified as                         
(the “Property”) more particularly
described in that certain Quitclaim Deed executed by Seller in favor of Buyer
dated as of the date hereof; and

 

WHEREAS, in connection with such conveyance of the
Property, Seller has agreed to sell to Buyer and Buyer has agreed to purchase
from Seller all right, title and interest of Seller in and to the tangible
personal property located on the Property and used in connection with operation
and maintenance of the improvements on the Property, if any (the “Personal Property”);

 

NOW, THEREFORE, for and in consideration
of the sum of Ten and No/100 Dollars ($10.00) in hand paid at or before the
execution, sealing and delivery hereof, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged by
Seller, Seller hereby agrees as follows:

 

1.                                       Sale and
Conveyance.  Seller
hereby sells, transfers and conveys unto Buyer, its successors and assigns, to
the extent assignable without third party consents or any cost or expense to
Seller, all right, title and interest of Seller in and to the Personal
Property.

 

2.                                       Disclaimer.  This Bill of Sale is made without warranty,
representation, or guaranty by, or recourse against Seller of any kind
whatsoever.

 

3.                                       Governing Law.  This Bill of Sale shall be governed by and
construed in accordance with the internal laws of the state in which the
Property is located, without reference to the conflicts of laws or choice of
law provisions thereof.

 

4.                                       Binding Effect.  This Bill of Sale shall be binding upon and
shall inure to the benefit of the parties hereto and their respective heirs,
executors, administrators, legal representatives, successors and assigns.

 

Exhibit F-1

 

IN WITNESS WHEREOF, Seller has caused this
Bill of Sale to be executed by its duly authorized signatory as of the day and
year first above written.

 

	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  COLUMBIA PROPERTIES VICKSBURG, LLC

  
	
   

  	
  BY:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ITS:

  	
   

  

 

Exhibit F-2

 

Exhibit G

 

Customer Database

 

Exhibit G-1

 

Exhibit H

 

Non-Foreign Affidavit

 

Exhibit H-1

 

Schedule 1.1.1

 

Seller Knowledge Parties

 

Scott
Butera

Lance
Millage

 

Purchaser Knowledge Parties

 

J.
Michael Caldwell

 

 

Schedule 2.1(a)

 

Assumed Leased Real Property

 

	
  Company Party

  	
   

  	
  Other Party

  	
   

  	
  Conveyance

  Instrument

  	
   

  	
  Execution Date

  	
   

  	
  Expiration Date

  
	
  Columbia Properties Vicksburg, LLC

  	
   

  	
  City of Vicksburg

  	
   

  	
  Riverboat Property Lease

  	
   

  	
  6/23/1993

  	
   

  	
  6/23/2023

  
	
  Columbia Properties Vicksburg, LLC

  	
   

  	
  City of Vicksburg

  	
   

  	
  Amended and Restated Master Agreement

  	
   

  	
  10/22/2003

  	
   

  	
  10/22/2023

  
	
  Columbia Properties Vicksburg, LLC

  	
   

  	
  City of Vicksburg

  	
   

  	
  Master Agreement

  	
   

  	
  1/23/1993

  	
   

  	
   

  
	
  Columbia Properties Vicksburg, LLC

  	
   

  	
  Sally S. McDaniel, a/k/a Sally Sheffield

  	
   

  	
  Data Warehouse Lease Agreement

  	
   

  	
  3/01/2009

  	
   

  	
  2/28/2011

  

 

2

 

Schedule 2.1(c)

 

Equipment

 

See
the attached list of gaming equipment.

 

Hotel Equipment needs to be added.

 

3

 

Schedule 2.1(f)

 

Assumed Agreements

 

	
  Contract

  	
   

  	
  Company Party

  	
   

  	
  Third Party

  	
   

  	
  Execution Date

  	
   

  	
  Term

  
	
  Electronic Table System Lease Agreement

  	
   

  	
  Horizon Casino Hotel

  	
   

  	
  Shuffle Master

  	
   

  	
  6/10/2010

  	
   

  	
  Month to month

  
	
  Rental Participation Agreement

  	
   

  	
  Columbia Properties Vicksburg, LLC

  	
   

  	
  Bally Gaming, Inc.

  	
   

  	
  4/30/2010

  	
   

  	
  Month to month

  
	
  Vehicle Lease Agreement (Ford Escape)

  	
   

  	
  Columbia Properties Vicksburg, LLC

  	
   

  	
  Enterprise Fleet Management

  	
   

  	
  6/28/2010

  	
   

  	
  4 Years

  
	
  Lease Agreement Dishmachine Equipment

  	
   

  	
  Columbia Properties Vicksburg, LLC

  	
   

  	
  Ecolab, Inc.

  	
   

  	
  5/27/2010

  	
   

  	
  1 year

  Auto annual renewal

  
	
  Gaming Device Lease

  	
   

  	
  Tropicana Entertainment, Inc. d/b/a Horizon Hotel and Casino

  	
   

  	
  Aruze Gaming America, Inc.

  	
   

  	
  9/16/2010

  	
   

  	
  180 Days - 3/10/2011

  (Automatic monthly renewals)

  
	
  Gaming Device Agreement

  	
   

  	
  Columbia Properties Vicksburg, LLC

  	
   

  	
  Aristocrat Technologies, LLC

  	
   

  	
  6/15/2010

  	
   

  	
  180 Days (Automatic 180 day renewals)

  
	
  Addendum to Proprietary Game Master Agreement

  	
   

  	
  Tropicana Holdings, LLC

  	
   

  	
  AC Coin & Slot Service Co., Inc.

  	
   

  	
  6/8/2010

  	
   

  	
  Month to month

  
	
  Software Maintenance Agreement

  	
   

  	
  Columbia Properties, Vicksburg, LLC

  	
   

  	
  Micros

  	
   

  	
  9/1/2010 

  	
   

  	
  1 Year

  
	
  General Terms & Conditions Agreement

  Software License Agreement

  	
   

  	
  Columbia Properties Vicksburg, LLC

  	
   

  	
  IGT

  	
   

  	
  3/01/2010

  	
   

  	
  1 Year

  
	
  Mitsubishi UPS and Battery Service/Maintenance Agreement

  	
   

  	
  Horizon Casino

  	
   

  	
  Electronic Power Systems, Inc.

  	
   

  	
  1/01/2010

  	
   

  	
  1 Year

  
	
  Addendum to Vertical Transportation Agreement

  	
   

  	
  Tropicana Entertainment, Inc.

  	
   

  	
  Thyssenkrupp Elevator Corporation

  	
   

  	
  4/1/2010

  	
   

  	
  unknown

  
	
  Sign Rental 

  	
   

  	
  Horizon Casino

  	
   

  	
  Vision Outdoor, 

  	
   

  	
  7/23/2010

  	
   

  	
  1 Year

  

 

4

 

	
  Agreement

  	
   

  	
   

  	
   

  	
  LLC

  	
   

  	
   

  	
   

  	
   

  
	
  The Lamar Companies Contract (Contract # 1293905)

  	
   

  	
  Horizon Casino Vicksburg by  Tropicana
  Entertainment, Inc.

  	
   

  	
  Lamar Company

  	
   

  	
  6/16/2010

  	
   

  	
  Unknown (copy no legible)

  
	
  The Lamar Companies Contract (Contract # 1146258)

  	
   

  	
  Horizon Casino - Vicksburg

  	
   

  	
  Lamar Company

  	
   

  	
  1/20/2010

  	
   

  	
  Unknown (copy no legible)

  
	
  The Lamar Companies Contract (Contract # 1298454)

  	
   

  	
  Tropicana Entertainment, Inc.

  	
   

  	
  Lamar Company

  	
   

  	
  6/16/2010

  	
   

  	
  Unknown (copy no legible)

  
	
  The Lamar Companies Contract (Contract # 1304304)

  	
   

  	
  Horizon Casino

  	
   

  	
  Lamar Company

  	
   

  	
  7/20/2010

  	
   

  	
  Unknown (copy no legible)

  
	
  Yellow Pages Advertising

  	
   

  	
  Horizon Casino Hotel Vicksburg

  	
   

  	
  Yellow Book USA

  	
   

  	
  3/10/2010

  	
   

  	
  Unknown (copy no legible)

  
	
  Trademark and Domain Name Assignment Agreement

  	
   

  	
  Tropicana Entertainment, LLC

  	
   

  	
  Wimar Tahoe Corporation

  	
   

  	
  6/12/2009

  	
   

  	
   

  
	
  Easement

  Agreement for Sidewalk

  	
   

  	
  Columbia Properties Vicksburg, LLC

  	
   

  	
  Midsouth Rail Corporation

  	
   

  	
  6/21/1993

  	
   

  	
   

  

 

Below Agreements also shown on Schedule 2.1(b) Assumed
Lease Real Property

 

	
  Company Party

  	
   

  	
  Other Party

  	
   

  	
  Conveyance

  Instrument

  	
   

  	
  Execution Date

  	
   

  	
  Expiration Date

  
	
  Columbia Properties Vicksburg, LLC

  	
   

  	
  City of Vicksburg

  	
   

  	
  Riverboat Property Lease

  	
   

  	
  6/23/1993

  	
   

  	
  6/23/2023

  
	
  Columbia Properties Vicksburg, LLC

  	
   

  	
  City of Vicksburg

  	
   

  	
  Amended and Restated Master Agreement

  	
   

  	
  10/22/2003

  	
   

  	
  10/22/2023

  
	
  Columbia Properties Vicksburg, LLC

  	
   

  	
  City of Vicksburg

  	
   

  	
  Master Agreement

  	
   

  	
  1/21/1993

  	
   

  	
   

  
	
  Columbia Properties Vicksburg, LLC

  	
   

  	
  Sally S. McDaniel a/k/a Sally Sheffield

  	
   

  	
  Data Warehouse Lease Agreement

  	
   

  	
  3/01/2009

  	
   

  	
  2/28/2011

  

 

5

 

Purchaser reserves the right to assume or exclude the
following agreements once copies are provided to Purchaser for review.

 

	
  Glory (USA), Inc. Service Agreement

  	
   

  	
  Columbia Properties Vicksburg, LLC

  	
   

  	
  Glory (USA), Inc. 

  	
   

  	
  10/01/2009

  	
   

  	
   

  
	
  Konami Gaming, Inc. — in connection with UCC filed10/8/2010

  	
   

  	
  Columbia Properties Vicksburg, LLC

  	
   

  	
  Konami Gaming

  	
   

  	
  10/  /2010

  	
   

  	
   

  
	
  WMS Gaming, Inc. — in connection with UCC filed 8/31/2004  &
  Continued until 8/31/2014

  	
   

  	
  Columbia Properties Vicksburg, LLC

  	
   

  	
  WMS Gaming, Inc.

  	
   

  	
  ?

  	
   

  	
   

  
	
  Atlantic City Coin and Slot Service Company - in connection with UCC
  filed

  	
   

  	
  Columbia Properties Vicksburg, LLC

  	
   

  	
  Atlantic City Coin and Slot Service Company

  	
   

  	
   

  	
   

  	
   

  

 

6

 

Schedule 2.2(c)

 

Excluded Agreements

 

	
  Contract

  	
   

  	
  Company

  Party

  	
   

  	
  Third Party

  	
   

  	
  Execution

  Date

  	
   

  	
  Term

  
	
  Computer Rental Agreement

  	
   

  	
  Columbia Properties Vicksburg, LLC d/b/a Horizon Casino Hotel

  	
   

  	
  SCA Promotions, Inc.

  	
   

  	
  3/01/2010

  	
   

  	
  1 Year

  
	
  License,/Lease/Service Agreement — ACE shuffler

  	
   

  	
  Columbia Properties Vicksburg, LLC d/b/a Horizon Casino — Vicksburg

  	
   

  	
  Shuffle Master, Inc.

  	
   

  	
  7/18/2009

  	
   

  	
  Month to month

  
	
  Financial Advisors Letter of Intent

  	
   

  	
  Columbia Properties Vicksburg, LLC

  	
   

  	
  MFR Partners, LLC f/k/a GEM Advisors, Inc.

  	
   

  	
  5/1/2007

  Amended 2/25/08

  	
   

  	
   

  

 

7

 

Schedule 2.2(k)

 

Excluded Intellectual Property

 

The
following domain names:

 

www.horizonvicksburgcasino.com

www.horizonvicksburg.com

www.horizoncasinovicksburg.com

www.horizoncasino.com

 

8

 

Schedule 5.4(a)

 

Conflicts

 

Certain
of the Purchased Assets are subject to a Deed of Trust, Assignment of Rents,
Security Agreement and Fixture Filing in favor of Ichan Agency Services LLC and
secure a $150,000,000 Credit Facility with Tropicana Entertainment, Inc.
as Borrower.

 

9

 

Schedule 5.4(b)

 

Seller Consents of Third Parties

 

1.             Seller must surrender its
Mississippi Gaming Commission operator’s license upon licensure of Purchaser.

 

2.             The following third parties
must consent to the assignment to Purchaser of their contracts with Seller:

 

	
  Party Requiring Consent

  	
   

  	
  Contract

  
	
  MFR
  Partners LLC

  	
   

  	
  Financial
  Advisors Letter of Intent

  
	
  Aristocrat
  Technologies, Inc.

  	
   

  	
  Gaming
  Device Agreement

  
	
  Bally
  Gaming, Inc.

  	
   

  	
  Rental
  Participation Agreement

  
	
  Electronic
  Power Systems, Inc.

  	
   

  	
  Annual
  Service Agreement

  
	
  International
  Game Technology

  	
   

  	
  Software
  License and Maintenance Agreement

  
	
  Micros

  	
   

  	
  Standard
  Terms and Conditions of Sales Contract (One Year Warranty)

  
	
  SGA
  Promotions, Inc.

  	
   

  	
  Computer
  Rental Agreement

  
	
  City
  of Vicksburg

  	
   

  	
  Second
  Riverboat Property Lease and Amended and Restated Master Agreement of
  Purchase and Sale

  
	
  Sally
  Sheffield

  	
   

  	
  Data
  Warehouse Lease Agreement

  
	
  Lay,
  Pitman & Associates, Inc.

  	
   

  	
  Consulting
  Agreement

  
	
  Vision
  Outdoor, LLC

  	
   

  	
  Sign
  Rental Agreement

  
	
  AC
  Coin & Slot Service Co., Inc.

  	
   

  	
  Addendum
  to Proprietary Game Master Agreement

  
	
  Ichan
  Agency Services LLC

  	
   

  	
  Deed
  of Trust, Assignment of Rents, Security Agreement and Fixture Filing and
  other credit facility documents

  

 

10

 

Schedule 5.5

 

Title to Purchased Assets

 

Certain
of the Purchased Assets are subject to a Deed of Trust, Assignment of Rents,
Security Agreement and Fixture Filing in favor of ICHAN Agency Services LLC and
secure a $150,000,000 Credit Facility with Tropicana Entertainment Inc. as
Borrower.  This Deed of Trust, Assignment
of Rents, Security Agreement and Fixture Filing will be discharged in relation
to the Purchased Assets at or prior to Closing.

 

11

 

Schedule 5.6

 

Financial Statements

 

See
the following attached financial statements:

 

1.     The audited
balance sheet of and statement of income for the twelve (12) month period
ending December 31, 2009.

2.     The unaudited
balance sheets as of and statements of income for the three (3) month
period ending September 30, 2010.

 

Seller to provide a description of all material services
provided by any Affiliate to the Seller and those provided by Seller to any
Affiliate, and the respective compensation for the costs of the services.

 

12

 

Schedule 5.8(a)

 

Owned Real Property

 

Legal
descriptions to be inserted or attached hereto.

 

13

 

Schedule 5.8(b)

 

Leased Real Property

 

	
   

  	
   

  	
   

  	
   

  	
  Conveyance

  	
   

  	
   

  	
   

  	
   

  
	
  Company Party

  	
   

  	
  Other Party

  	
   

  	
  Instrument

  	
   

  	
  Execution Date

  	
   

  	
  Expiration Date

  
	
  Columbia
  Properties Vicksburg, LLC

  	
   

  	
  City
  of Vicksburg

  	
   

  	
  Riverboat
  Property Lease

  	
   

  	
  6/23/1993

  	
   

  	
  6/23/2023

  
	
  Columbia
  Properties Vicksburg, LLC

  	
   

  	
  City
  of Vicksburg

  	
   

  	
  Amended
  and Restated Master Agreement

  	
   

  	
  10/22/2003

  	
   

  	
  10/22/2023

  
	
  Columbia
  Properties Vicksburg, LLC

  	
   

  	
  City
  of Vicksburg

  	
   

  	
  Master
  Agreement

  	
   

  	
  1/23/1993

  	
   

  	
   

  
	
  Columbia
  Properties Vicksburg, LLC

  	
   

  	
  Sally
  Sheffield

  	
   

  	
  Data
  Warehouse Lease Agreement

  	
   

  	
  3/01/2009

  	
   

  	
  2/28/2011

  

 

14

 

Schedule 5.9

 

Material Contracts

 

	
  Contract

  	
   

  	
  Company Party

  	
   

  	
  Third Party

  	
   

  	
  Execution Date

  	
   

  	
  Term

  
	
  Addendum to Proprietary Game Master Agreement

  	
   

  	
  Horizon Casino Hotel

  	
   

  	
  AC Coin & Slot Service Co., Inc.

  	
   

  	
  12/12/2009

  	
   

  	
  Month to month

  
	
  Sign Rental Agreement

  	
   

  	
  Horizon Casino

  	
   

  	
  Vision Outdoor, LLC

  	
   

  	
  7/23/2010

  	
   

  	
  1 Year

  
	
  Gaming Device Agreement

  	
   

  	
  Columbia Properties Vicksburg, LLC

  	
   

  	
  Aristocrat Technologies, Inc.

  	
   

  	
  6/15/2010

  	
   

  	
  180 Days (Automatic renewal)

  
	
  Gaming Device Lease

  	
   

  	
  Tropicana Entertainment, Inc. d/b/a Horizon Hotel and Casino

  	
   

  	
  Aruze Gaming America, Inc.

  	
   

  	
  9/16/2010

  	
   

  	
  180 Days (Automatic renewal)

  
	
  Rental Participation Agreement

  	
   

  	
  Columbia Properties Vicksburg, LLC

  	
   

  	
  Bally Gaming, Inc.

  	
   

  	
  4/30/2010

  	
   

  	
  Month to month

  
	
  Vehicle Lease Agreement (Ford Escape)

  	
   

  	
  Columbia Properties Vicksburg, LLC

  	
   

  	
  Enterprise Fleet Management

  	
   

  	
  6/28/2010

  	
   

  	
  4 Years

  
	
  Mitsubishi UPS and Battery Service/Maintenance Agreement

  	
   

  	
  Horizon Casino

  	
   

  	
  Electronic Power Systems, Inc.

  	
   

  	
  1/01/2010

  	
   

  	
  1 Year

  
	
  Glory (USA), Inc. Service Agreement

  	
   

  	
  Columbia Properties Vicksburg, LLC

  	
   

  	
  Glory (USA), Inc. 

  	
   

  	
  10/01/2009

  	
   

  	
   

  
	
  General Terms & Conditions Agreement

  Software License Agreement

  	
   

  	
  Columbia Properties Vicksburg, LLC

  	
   

  	
  IGT

  	
   

  	
  3/02/2010

  	
   

  	
   

  
	
  Maintenance Service Agreement

  	
   

  	
  JMBS Casino, LLC d/b/a Horizon Casino Vicksburg

  	
   

  	
  Kossen Equipment, Inc.

  	
   

  	
  6/29/2010

  	
   

  	
   

  
	
  The Lamar Companies Contract (Contract # 1293905)

  	
   

  	
  Tropicana Entertainment, Inc.

  	
   

  	
  Lamar Company

  	
   

  	
  6/16/2010

  	
   

  	
   

  
	
  The Lamar Companies Contract 

  	
   

  	
  Tropicana Entertainment,

  	
   

  	
  Lamar Company

  	
   

  	
  1/20/2010

  	
   

  	
   

  

 

15

 

	
  (Contract # 1146258)

  	
   

  	
  Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The Lamar Companies Contract (Contract # 1298454)

  	
   

  	
  Tropicana Entertainment, Inc.

  	
   

  	
  Lamar Company

  	
   

  	
  7/20/2010

  	
   

  	
   

  
	
  Computer Rental Agreement

  	
   

  	
  Horizon Casino Hotel

  	
   

  	
  SCA Promotions, Inc.

  	
   

  	
  3/01/2010

  	
   

  	
  1 Year

  
	
  Electronic Table System Lease Agreement

  	
   

  	
  Horizon Casino Hotel

  	
   

  	
  Shuffle Master

  	
   

  	
  5/20/2010

  	
   

  	
  Month to month

  
	
  The Lamar Companies Contract (Contract # 1304304)

  	
   

  	
  Tropicana Entertainment, Inc.

  	
   

  	
  Lamar Company

  	
   

  	
  7/20/2010

  	
   

  	
   

  
	
  License and Lease Agreement

  	
   

  	
  Horizon Casino Hotel

  	
   

  	
  Shuffle Master

  	
   

  	
  6/25/2009

  	
   

  	
  Month to month

  
	
  Trademark License Agreement

  	
   

  	
  Tropicana Entertainment, LLC

  	
   

  	
  Lake Tahoe Casino Realty I, LLC

  	
   

  	
   

  	
   

  	
   

  
	
  Trademark Sublicense Agreement

  	
   

  	
  Lake Tahoe Casino Realty I, LLC

  	
   

  	
  LV Casino, LLC

  	
   

  	
   

  	
   

  	
   

  
	
  Financial Advisors Letter of Intent

  	
   

  	
  Columbia Properties Vicksburg, LLC

  	
   

  	
  MFR Partners LLC

  	
   

  	
   

  	
   

  	
   

  
	
  Easement Agreement for Sidewalk

  	
   

  	
  Columbia Properties Vicksburg, LLC

  	
   

  	
  Midsouth Rail Corporation

  	
   

  	
  6/21/1993

  	
   

  	
   

  

 

16

 

Schedule 5.10

 

Litigation; Orders

 

See
the attached list of litigation matters and open claims.

 

17

 

Schedule 5.11

 

Compliance with Environmental Laws

 

OSHA
Complaint 207562364

 

The
Seller addressed the issues brought to light in this complaint and has not received
any further correspondence from OSHA.

 

18

 

Schedule 5.12(b)

 

Employment Agreements

 

There
are no employment agreements.

 

19

 

Schedule 5.12(e)

 

Employee Information

 

This
will be provided prior to Closing.

 

20

 

Schedule 5.13(a)

 

Seller Benefit Plans

 

	
  Plan Type

  	
   

  	
  Description

  	
   

  	
  Rules

  	
   

  	
  Number of Vicksburg

  Employee Participating

  
	
  Medical:  CIGNA

  	
   

  	
  Two Plans;

  HRA — Choice Plan

  OAP — Open Access Plus
  Plan

  	
   

  	
  Hourly employees are
  eligible 1st of the month following 90 days from DOH

  Salaried employees are
  eligible 1st of the month following DOH

  	
   

  	
  HRA:  97

  OAP:  0

  
	
  Dental:  Delta Dental

  	
   

  	
  One Plan

  	
   

  	
  If the employee elects the
  medical HRA, dental is bundled.

  If the employee elects the
  medical OAP, they have the option of not electing the dental plan.

  	
   

  	
  97

  
	
  Vision:  CIGNA

  	
   

  	
  One Plan

  	
   

  	
  If the employee elects the
  medical HRA, vision is bundled.

  If the employee elects the
  medical OAP, they have the option of not electing the vision plan.

  	
   

  	
  97

  
	
  401K:  T. Rowe Price

  	
   

  	
  One Plan

  	
   

  	
  No employer Match

  	
   

  	
  14

  
	
  Flexible Spending Accounts

  	
   

  	
  Two Plans;

  FSA — Health Care

  FSA — Dependent Care

  	
   

  	
   

  	
   

  	
  Medical:  2

  Dependent: 0

  
	
  Short Term Disability
  (Executive Plan)

  	
   

  	
  Company Paid Plan for GM
  only

  	
   

  	
  Company pays STD for
  coverage up to the maximum of $1,500 per week or 60% of salary, whichever is
  less.

  	
   

  	
  1

   

  
	
  Short Term Disability
  (Executive Plan)

  	
   

  	
  Employee Paid Plan for GM
  only

  	
   

  	
  Executive may elect to
  purchase additional STD for coverage up to the maximum of $1,500 per week or
  60% of salary, whichever is less.

  	
   

  	
  0

  
	
  Short Term Disability

  	
   

  	
  Company Paid Plan

  	
   

  	
  If the employee elects the
  medical HRA, Co paid STD is provided.  The benefit pays 60% of salary up
  to $250/week.

  	
   

  	
  97

  
	
  Short Term Disability

  	
   

  	
  Employee Paid Plan

  	
   

  	
  Can purchase extra STD up
  to a maximum of 950/week or 60% of salary whichever is less.

  	
   

  	
  8

  
	
  Long Term Disability
  (Executive 

  	
   

  	
  Company Paid Plan for GM
  only

  	
   

  	
  Company pays LTD for
  coverage up to the maximum of $15,000 per month or 60% of salary, whichever
  is less.

  	
   

  	
  1

  

 

21

 

	
  Plan)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Long Term Disability

  	
   

  	
  Employee Paid Plan

  	
   

  	
  Employee can purchase LTD
  up to a maximum or $5,000 per month or 60% of salary whichever is less.

  	
   

  	
  32

  
	
  Life Insurance

  	
   

  	
  Company Paid

  	
   

  	
  If the employee elects the
  medical HRA, Co paid Life is provided.  The benefit pays 1xsalary up to
  $150,000.

  	
   

  	
  97

  
	
  Life Insurance

  	
   

  	
  Voluntary

  	
   

  	
  Employee can purchase Life
  Insurance 5x salary up to $500,000.  EOI required at 300,000.

  	
   

  	
  58

  
	
  Life Insurance

  	
   

  	
  Spouse

  	
   

  	
  Employee can purchase Life
  Insurance for spouse up to a maximum coverage of $20,000

  	
   

  	
  19

  
	
  Life Insurance

  	
   

  	
  Children

  	
   

  	
  Employee can purchase Life
  Insurance for children up to a maximum coverage of $20,000

  	
   

  	
  30

  

 

22

 

Schedule 5.13(b)

 

Assumed Benefit Plans

 

None

 

23

 

Schedule 5.14

 

Financial Advisors

 

GEM
Advisors, Inc. n/k/a MFR Partners, LLC

 

24

 

Schedule 5.15

 

Permits; Compliance with Laws

 

	
  Permit/License

  	
   

  	
  Type

  	
   

  	
  Issuing Agency

  	
   

  	
  Renewed

  	
   

  	
  Frequency

  	
   

  	
  Due Date

  
	
  593

  	
   

  	
  Gaming License

  	
   

  	
  Mississippi Gaming Commission

  	
   

  	
  10/27/2009

  	
   

  	
  3 years

  	
   

  	
  10/26/2012

  
	
  587361 (Star of Vicksburg)

  	
   

  	
  Homeland Security Vessel

  	
   

  	
  United States Coast Guard

  	
   

  	
  3/23/2010

  	
   

  	
  Annual

  	
   

  	
  3/31/2011

  
	
  C1002-MS-13

  	
   

  	
  Marine Inspection

  	
   

  	
  ABS Consulting Risk/Marine Services

  	
   

  	
   

  	
   

  	
  Annual

  	
   

  	
  8/17/2011

  
	
  4240038

  	
   

  	
  Food Permit (Employee Café.)

  	
   

  	
  Mississippi Department of Health

  	
   

  	
   

  	
   

  	
  Annual

  	
   

  	
  11/24/2010

  
	
  4240040

  	
   

  	
  Food Permit (Josh’s Steak House)

  	
   

  	
  Mississippi Department of Health

  	
   

  	
   

  	
   

  	
  Annual

  	
   

  	
  12/09/2010

  
	
  4240028

  	
   

  	
  Food Permit (Casino 1 Captain)

  	
   

  	
  Mississippi Department of Health

  	
   

  	
   

  	
   

  	
  Annual

  	
   

  	
  11/24/2010

  
	
  21934

  	
   

  	
  Alcoholic Beverage Permit

  	
   

  	
  Mississippi Department of Revenue/ABC

  	
   

  	
   

  	
   

  	
  Annual

  	
   

  	
  11/02/2010

  
	
  75-13070-8

  	
   

  	
  Beer Permit and Privilege License

  	
   

  	
  Mississippi Department of Revenue

  	
   

  	
   

  	
   

  	
  Annual

  	
   

  	
  9/01/2011

  
	
  2009-11188

  	
   

  	
  Privilege License

  	
   

  	
  City of Vicksburg

  	
   

  	
   

  	
   

  	
  Annual

  	
   

  	
  9/30/2010

  
	
  AC# 075-13070-8

  	
   

  	
  Sales and Use Tax

  	
   

  	
  Mississippi Department of Revenue

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  208107 (2009-82)

  	
   

  	
  Privilege License (Music Machine)

  	
   

  	
  City of Vicksburg

  	
   

  	
   

  	
   

  	
  Annual

  	
   

  	
  1/31/2011

  
	
  15USC1173

  	
   

  	
  Gambling Device Registration

  	
   

  	
  Attorney General’s Office

  	
   

  	
   

  	
   

  	
  Annual

  	
   

  	
  12/31/2010

  
	
  WQCQ826

  	
   

  	
  Security Radios

  	
   

  	
  Federal Communications Commission

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  5/04/2015

  

 

25

 

Schedule 5.17(a)

 

Vessel

 

The
Vessel is subject to a First Preferred Ship Mortgage in favor of Ichan Agency
Services LLC and secures a $150,000,000 Credit Facility with Tropicana
Entertainment Inc. as Borrower.  This
First Preferred Ship Mortgage will be discharged and released from the Vessel
at or prior to the Closing.

 

26

 

Schedule 5.18(a)

 

Accounts and Notes Receivable and Payable

 

This
will be provided prior to Closing.

 

27

 

Schedule 9.2(a)

 

Reservations

 

See
the attached list of reservations.

 

28

 

Schedule 9.2(d)

 

Safe Deposit Boxes

 

See
the attached list of safe deposit boxes.

 

Seller to provide list of safe deposit boxes.

 

29

 

Schedule 9.4

 

Insurance Policies

 

General
Liability

 

Insurer:
Liability Insurance Underwriters

Policy
Number: EGL-NY-206106-100

Coverage
Limit: $1,000,000

 

Automobile
Liability

 

Insurer:
Zurich American Insurance Co.

Policy
Number: BAP 5095788-00

Coverage
Limit: $2,000,000

 

Garagekeepers
Liability

 

Insurer:
Zurich American Insurance Co.

Policy
Number: BAP 5095788-00

Coverage
Limit: $1,000,000

 

Excess
Liability

 

Carrier
(Layer 1): Catlin Insurance Co. (UK) Ltd.

Policy
Number: XSA 10006-0609

Coverage
Limit: $15,000,000

 

Carrier
(Layer 2): Lexington Insurance Co.

Policy
Number: 117-28-82

Coverage
Limit: $20,000,000

 

Carrier
(Layer 3): Allied World National Assurance

Policy
Number: C010907/001

Coverage
Limit: $15,000,000

 

Carrier
(Layer 4): Lexington Insurance Co.

Policy
Number: 668-47-04

Coverage
Limit: $25,000,000

 

Carrier
(Layer 5): Navigators Insurance Co.

Policy
Number: NY09EXC086738NV

Coverage
Limit: $25,000,000

 

Carrier
(Layer 6): Illinois Union Insurance Company

Policy
Number: G24101174 001

 

30

 

Coverage
Limit: $25,000,000

 

Carrier
(Layer 7): Torus Insurance (Bermuda) Limited

Policy
Number: BDA FF01-2009-0024

Coverage
Limit: $25,000,000

 

Carrier
(Layer 8): Endurance American Specialty Insurance Co.

Policy
Number: ELD1000182700

Coverage
Limit: $25,000,000

 

Carrier
(Layer 9): AXIS Surplus Insurance Co.

Policy
Number: ENU751048/01/2010

Coverage
Limit: $25,000,000

 

Carrier
(Layer 10): The American Assurance Company

Policy
Number: SHX 00074387333

Coverage
Limit: $25,000,000

 

Carrier
(Layer 11): Ohio Casualty Insurance Company

Policy
Number: ECO (10) 54377316

Coverage
Limit: $25,000,000

 

Worker’s
Compensation

 

Insurer:
American Zurich Insurance Co.

Policy
Number: WC 5095787-00

Coverage
Limit: $1,000,000

 

Non-Owned
Aircraft Liability

 

Insurer:
Arch Insurance Company

Policy
Number: 11NOA70516 02

Coverage
Limit: $1,000,000

 

Storage
Tank Liability

 

Insurer:
Illinois Union Insurance Company

Policy
Number: UST G24887315 001

Coverage
Limit: $5,000,000

 

Water
Quality Pollution Liability

 

Insurer:
Water Quality Insurance Syndicate

Policy
Number: 43-50940

Coverage
Limit A (Oil Discharge): varies per vessel

Coverage
Limit B (Hazardous Substance Discharge): $5,000,000

 

31

 

Coverage
Limit C (Defense Cost Assoc. to A & B): included in limits

Coverage
Limit D (Fines & Penalties): $157,500

Coverage
Limit E (Other than Oil and Hazardous Substance): $1,000,000

Coverage
Limit F (Salvaging, Cleanup, Offloading Etc.): $1,000,000

Coverage
Limit G (Public Relations): $100,000

 

32

 

Schedule 10.1(c)

 

Hotel Roof Repair and Mold Remediation

 

Roof
Repairs: The roof is made up of a single ply membrane area and a sheet metal
mansard area. The membrane area was carefully inspected and no defects were
found. The sheet metal mansard area was carefully inspected and the source of
the water infiltration was found to be leaks in the gutter system. The gutter system
is accessible only from the exterior of the roof. R&R Sheet Metal has been
contracted to repair the gutter system by the application of specialty mastic
material and will be reinforced with fabric. This work is contingent on weather
conditions but should be complete by mid December 2010.

 

Mold
Remediation: Forensic Analytical Consulting Services conducted a mold
assessment and identified 10 rooms that required professional remediation on October 20,
2010. This service was contracted and is underway now. This work will be
monitored and checked for compliance by FACS when the work is complete which is
expected by the end of Nov. There were several areas of minor nuisance
mold which the staff was trained to remediate those areas by FACS.

 

33

 

Schedule 11.2

 

Purchase Price Allocation

 

34

 

Purchaser Schedules

 

35

 

Schedule 6.4(b)

 

Purchaser Consents of Third Parties

 

1.                                       Mississippi
Gaming Commission — Seller must obtain certain approvals relative to the sale
of the Purchased Assets, including the licensure of the Purchaser and the
findings of suitability of certain individuals and entities associated
therewith.

 

2.                                       Mississippi
Department of Revenue, Alcoholic Beverage Control Division — The Alcoholic
Beverage Control Division of the Mississippi Department of Revenue must approve
the transfer of Seller’s on-premises alcoholic beverage retailer’s permit to
Purchaser.

 

3.                                       Mississippi
Department of Revenue — Purchaser must register with the Mississippi Department
of Revenue and obtain a Retail Beer Permit and Privilege License.

 

4.                                       Mississippi
Department of Revenue, Miscellaneous Tax Division — Purchaser must provide a
surety bond as required for gaming establishments to the Mississippi Department
of Revenue.

 

5.                                       United States
Coast Guard — Purchaser must obtain a new vessel registration certificate.

 

6.                                       Mississippi
Department of Health — Purchaser must obtain food service permits.

 

7.                                       United States
Department of the Treasury, Alcohol and Tobacco Tax and Trade Bureau —
Purchaser must register as an alcohol dealer.

 

8.                                       United States
Department of Justice — Purchaser must submit to the Department of Justice its
Request for Registration under the Gambling Devices Act.

 

9.                                       City of
Vicksburg — Purchaser must obtain privilege licenses from the City of
Vicksburg.

 

10.                                 Federal
Communications Commission — Purchaser must obtain a license from the Federal
Communications Commission to operate certain security radios.

 

36

 

Schedule 6.6

 

Purchaser Financial Advisors

 

None.

 

37

 

Schedule 10.1(b)

 

Purchaser Required Governmental Consents

 

1.                                       Mississippi
Gaming Commission — Seller must obtain certain approvals relative to the sale
of the Purchased Assets, including the licensure of the Purchaser and the
findings of suitability of certain individuals and entities associated
therewith.

 

2.                                       Mississippi Department
of Revenue, Alcoholic Beverage Control Division — The Alcoholic Beverage
Control Division of the Mississippi Department of Revenue must approve the
transfer of Seller’s on-premises alcoholic beverage retailer’s permit to
Purchaser.

 

3.                                       Mississippi
Department of Revenue — Purchaser must register with the Mississippi Department
of Revenue and obtain a Retail Beer Permit and Privilege License.

 

4.                                       Mississippi
Department of Revenue, Miscellaneous Tax Division — Purchaser must provide a
surety bond as required for gaming establishments to the Mississippi Department
of Revenue.

 

5.                                       United States
Coast Guard — Purchaser must obtain a new vessel registration certificate.

 

6.                                       Mississippi
Department of Health — Purchaser must obtain food service permits.

 

7.                                       United States
Department of the Treasury, Alcohol and Tobacco Tax and Trade Bureau —
Purchaser must register as an alcohol dealer.

 

8.                                       United States
Department of Justice — Purchaser must submit to the Department of Justice its
Request for Registration under the Gambling Devices Act.

 

9.                                       City of
Vicksburg — Purchaser must obtain privilege licenses from the City of
Vicksburg.

 

10.                                 Federal
Communications Commission — Purchaser must obtain a license from the Federal
Communications Commission to operate certain security radios.

 

38Exhibit
10.2

 

Indemnification Agreement

 

This
INDEMNIFICATION AGREEMENT (this “Agreement”), dated as of December 1, 2010, is
by and between Tropicana Entertainment, Inc., a Delaware corporation (“Parent”),
and Delta Investments & Development, LLC, a Nevada limited liability
company (“Purchaser”).

 

Background

 

A.                                   Purchaser is a
party to that certain Asset Purchase Agreement (the “APA”), dated December 1,
2010, by and between Purchaser and Columbia Properties Vicksburg, LLC, a
Mississippi limited liability company (“Seller”), a subsidiary of Parent.

 

B.                                     In order to
induce Purchaser to enter into the APA, Parent has agreed to indemnify
Purchaser upon the occurrence of certain events, subject to the terms and
conditions of this Agreement.

 

Accordingly,
the parties agree as follows:

 

1.                                       Indemnification.  Notwithstanding any provision to the contrary
in the APA, from and after the Closing, Parent shall indemnify, save and hold
the Purchaser Indemnified Parties harmless from and against any and all Damages
paid or incurred, in connection with, arising out of or resulting from the
following (the “Indemnified Damages”):

 

a.                                       Environmental
Matters.

 

i.                  Any Liabilities
arising out of or relating to the Seller’s non-compliance with any
Environmental Law on or prior to the Closing Date;

 

ii.               Any Liabilities
arising out of or relating to any “hazardous substance,” as such term is
defined under the Comprehensive Environmental Response Compensation and
Liability Act, 42 U.S.C. § 9601 et seq., as amended, or other contaminants (including,
but not limited to, mold and/or mold spores) that were present on any of the
Purchased Assets at any time on or prior to the Closing Date;

 

iii.            The breach of
any warranty or the inaccuracy of any representation of Seller contained or
referred to in Section 5.11 of the APA;

 

iv.           The Seller’s
failure to properly repair the roof damage set forth in Schedule 10.1(c) of the
APA or to properly remediate those rooms containing mold set forth on Schedule
10.1(c) of the APA;

 

b.                                      WARN Act.  Any Liability under the WARN Act or any
similar state or local Law that may result from an Employment Loss, as defined
by 29 U.S.C. § 2101(a)(6), caused by any action of Seller on or prior to the
Closing Date; or

 

c.                                       Pre-Closing
Liabilities.  Any Liability arising out of
or resulting from the ownership, operation or control of the Casino Business or
the Purchased Assets on or prior to the Closing Date.

 

1

 

2.                                       Limitations.

 

a.                                       Maximum
Amount.  Parent shall not be required to
indemnify a Purchaser Indemnified Party for any amounts exceeding, in the
aggregate, One Million Five Hundred Thousand Dollars ($1,500,000) (the “Aggregate
Indemnity Amount”).

 

b.                                      During the
Indemnity Term, the Aggregate Indemnity Amount shall be reduced dollar for
dollar for any amounts paid by either the Seller or the Parent towards
Indemnified Damages or otherwise under the APA and this Agreement.

 

c.                                       Time
Limitation.  Parent will have no
liability (for indemnification or otherwise) with respect to its
indemnification obligations set forth in Section 1(a) above unless Purchaser
notifies Parent of a claim on or before the first anniversary of the Closing
Date (the “Indemnity Term”).

 

3.                                       Miscellaneous.

 

a.                                       Definitions.  Capitalized terms have the meanings assigned
to them in this Agreement.  Other
capitalized terms that are undefined in this Agreement shall have the meanings
assigned to them in the APA.

 

b.                                      Governing
Law.  This Agreement shall be governed by
and construed in accordance with the laws of the State of Mississippi
applicable to contracts made and performed in such State.

 

c.                                       Submission to
Jurisdiction; Consent to Service of Process. 
Parent and Purchaser unconditionally and irrevocably submit to the
exclusive jurisdiction of any state or federal court located in the State of
Mississippi and any appellate court from any thereof, for the resolution of any
such claim or dispute.  Parent and
Purchaser hereby irrevocably waive, to the fullest extent permitted by
applicable law, any objection which they may now or hereafter have to the
laying of venue of any such dispute brought in such court or any defense of
inconvenient forum for the maintenance of such dispute, waiving thereby their
right to any other jurisdiction to which they may be entitled to by reason of
their present of future domiciles or otherwise. 
Parent and Purchaser each agree that a judgment in any such dispute may
be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law.  Parent and
Purchaser each hereby consent to process being served by the other party in any
suit, action or proceeding by delivery of a copy thereof in accordance with the
provisions of Section 3(d).

 

d.                                      Notices.  All notices and other communications under
this Agreement shall be in writing and shall be deemed given (a) when delivered
personally by hand (with written confirmation of receipt); (b) when sent by
facsimile (with written confirmation of transmission); or (c) one (1) Business
Day following the day sent by overnight courier (with written confirmation of
receipt), in each case at the following addresses and facsimile numbers (or to
such other address or facsimile number as a party may have specified by notice
given to the other party pursuant to this provision):

 

i.                                          If to Parent:

 

2

 

Tropicana
Entertainment Inc.

3930
Howard Hughes Parkway, Fourth Floor

Las
Vegas, NV 89169

Attn:  Legal Dept.

Telephone:
702- 589-3888

Facsimile:  702-589-3889

 

With a copy (which copy will not constitute notice) to:

 

Balch & Bingham LLP

401 East Capitol Street, Suite 200

Jackson, MS 39201

Attn: Matthew McLaughlin, Esquire

Telephone: 601-965-8162

Facsimile: 866-811-7321

 

 

ii.                                       If to
Purchaser:

 

Delta Investments & Development, LLC

2520 St. Rose Parkway, Suite 212

Henderson, NV 89074

Attn:  J.
Michael Caldwell

Telephone: 864-422-2396

Facsimile: 
864-422-2328

 

With a copy (which copy will not constitute notice) to:

 

Nelson Mullins Riley & Scarborough, LLP

104 S. Main Street, Suite 900

Greenville, SC 29601

Attn:  John M. Campbell, Jr.,
Esquire

Telephone:  864-250-2234

Facsimile: 864-250-2388

 

e.                                       Severability.  If any term or other provision of this
Agreement is invalid, illegal or incapable of being enforced by any law or
public policy, all other terms or provisions of this Agreement will
nevertheless remain in full force and effect so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner
adverse to Parent or Purchaser.

 

f.                                         Headings.  The division of this Agreement into Sections
and subdivisions and the insertion of headings are for convenience of reference
only and shall not affect or be utilized in construing or interpreting this
Agreement.  All references to any Section
are to the corresponding Section of this Agreement unless otherwise specified.

 

g.                                      Binding Effect;
Assignment.  This Agreement shall be
binding upon and inure to the benefit of the parties and their respective
successors and permitted assigns. 
Nothing in this Agreement shall create or be deemed to create any third
party beneficiary rights in any Person or entity not a party to this
Agreement.  No assignment of this
Agreement or of any rights or obligations hereunder may be made by the Parent
or Purchaser (by 

 

3

 

operation of law or otherwise) without the prior written consent of the
other party.  Any attempted assignment
without the required consent shall be void.

 

h.                                      Counterparts.  This Agreement may be executed in one or more
counterparts, each of which will be deemed to be an original copy of this
Agreement and all of which, when taken together, will be deemed to constitute
on and the same agreement.

 

4

 

IN
WITNESS WHEREOF, the parties have caused this Indemnification Agreement to be
executed by their respective officers, as of the date first written above.

 

	
   

  	
  Purchaser

  
	
   

  	
   

  
	
   

  	
  Delta
  Investments & Development, LLC, a Nevada

  limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  J. MICHAEL CALDWELL

  
	
   

  	
  Name:

  	
  J.
  Michael Caldwell

  
	
   

  	
  Title:

  	
  Member

  
	
   

  	
  :

  
	
   

  	
   

  
	
   

  	
  Parent

  
	
   

  	
   

  
	
   

  	
  Tropicana
  Entertainment, Inc., a Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /S/
  LANCE J. MILLAGE

  
	
   

  	
  Name:

  	
  Lance
  J. Millage

  
	
   

  	
  Title:

  	
  SVP
  — Finance & Treasurer

  
	
   

  	
  :

  	
   

  

 

5

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