Document:

Exhibit 4.24

 

DIAMOND JO WORTH, LLC

AND

DIAMOND JO WORTH CORP.

(as Issuers)

$40,000,000

11% Senior Secured Notes due 2012

SECOND
SUPPLEMENTAL INDENTURE

DATED DECEMBER 21, 2006

TO THE

INDENTURE

DATED AS OF JULY 19, 2005

U.S.
BANK NATIONAL ASSOCIATION

(as Trustee)

 

SECOND SUPPLEMENTAL INDENTURE

THIS SECOND SUPPLEMENTAL
INDENTURE, dated as of December 21, 2006 (the “Supplemental Indenture”),
by and among Diamond Jo Worth, LLC (the “Company”, a Delaware limited
liability company, Diamond Jo Worth Corp. (“DJW Corp.”), a Delaware
corporation, and U.S. Bank National Association, as trustee (the “Trustee”).  Capitalized terms used but not otherwise
defined herein shall have the meanings ascribed to such terms in the Indenture
(as defined below).

RECITALS

WHEREAS, the Company, DJW
Corp. and the Trustee are parties to that certain Indenture, dated as of July
19, 2005, (the “Original Indenture”), relating to the Company’s and DJW
Corp.’s 11% Senior Secured Notes due 2012 (the “Notes”), as supplemented
and amended by the First Supplemental Indenture, dated as of August 31, 2006
(the “First Supplemental Indenture”, and together with the Original
Indenture, the “Indenture”);

WHEREAS, Section 9.2 of the
Indenture authorizes the Company, DJW Corp. and the Trustee, in accordance with
the terms thereof, to enter into this Supplemental Indenture with the consent
of the Holders of at least a majority in principal amount of the outstanding
Notes;

WHEREAS, the Company has
received consents from Holders of at least a majority in principal amount of
the outstanding Notes as of December 15, 2006, the record date established by
the Company approving this Supplemental Indenture; and

WHEREAS, the Company has
requested the Trustee and the Trustee has agreed to join in the execution of
this Supplemental Indenture pursuant to Section 9.2 of the Indenture on the
terms and subject to the conditions set forth below;

NOW, THEREFORE, in
consideration of the promises and mutual agreements herein contained, the
Company, DJW Corp. and the Trustee mutually covenant and agree for the equal
and proportionate benefit of the Holders from time to time of the Notes as
follows:

ARTICLE I

INDENTURE

1.1           Integral Part. 
This Supplemental Indenture constitutes an integral part of the
Indenture.

ARTICLE II

AMENDMENTS TO THE INDENTURE

2.1           Amendment to Section 1.1 Definitions.

(a)           The fourth paragraph
of the definition of “Excess Cash Flow” is hereby deleted in its entirety and
replaced with the following:

“minus (iii) the amount of (x) all payments permitted under
Section 4.9 of this Indenture, including, without limitation, payments under
Management Arrangements under clause (v) of Section 4.9(b), and made during
such period or any prior period by such Person and its Restricted Subsidiaries
to the extent not already deducted in computing Consolidated Net Income or
previously deducted pursuant to this paragraph in any prior period and (y) any
Permitted Investments made during such period by such Person and its Restricted
Subsidiaries to the extent 

 1
 

not already deducted in computing Consolidated Net Income, provided that, solely for the purpose of this calculation,
the aggregate amount that may be deducted pursuant to this clause (iii) shall
not exceed $1.0 million in any six month period ending March 31 or September
30, provided, further that if the amount
actually deducted pursuant to this clause (iii) is less than $1.0 million in
any six month period ending March 31 or September 30, then the difference
between such amount and $1.0 million shall be applied to increase the amount
that may be deducted pursuant to this clause (iii) in any subsequent six month
period ending March 31 or September 30, and provided, further
that, solely with respect to the six month period ending March 31, 2007,
payments permitted under Section 4.9 of this Indenture shall be deducted
pursuant to clause (x) of this paragraph only to the extent that such payments
exceed $35.0 million.”

(b)           The definition of “Management
Arrangements” is hereby amended by deleting the words in clause (y) in the
parentheses in the proviso of such definition and replacing them with the
following:

“(y)
Parent or PGL solely to the extent such payments are made for the purpose of
(i) satisfying payment obligations under employment arrangements approved by
the Managers of PGP entered into in the ordinary course of business with any
Person other than an Excluded Person or (ii) paying directors’ or managers’
fees to Managers of PGP who are not employees of PGP or its direct or indirect
subsidiaries)”

(c)           The definition of “Permitted
Tax Distributions” is hereby amended as follows:

(i)  The words “minus (iv) the aggregate Tax Loss Benefit
Amount for the Company for such year or portion thereof” beginning in the
eleventh line of the first paragraph of such definition are hereby deleted; and

(ii)  The words “or the aggregate Tax Loss Benefit Amount
carried forward to such taxable year” beginning in the sixth line of the third
paragraph of such definition are hereby deleted.

(d)           The definition of “Tax
Loss Benefit Amount” is hereby deleted in its entirety.

2.2           Amendment to
Section 4.7 Limitation on Incurrence of Additional Indebtedness and
Disqualified Equity Interests.

(a)           The following
provision is hereby inserted as a new clause immediately following clause (xv)
(which was added pursuant to the First Supplemental Indenture) in Section
4.7(b):

“(xvi)  Indebtedness evidenced by
Additional Notes in an aggregate principal amount not to exceed $36.5 million
(the proceeds of which, notwithstanding any other provision in this Indenture
or the Cash Collateral and Disbursement Agreement to the contrary, shall be
available to the Issuers and the Restricted Subsidiaries for general corporate
or other purposes permitted by the terms of this Indenture and shall not, in
whole or in part, be subject to the Cash Collateral and Disbursement Agreement
or required to be deposited in the Construction Disbursement Account or the
Interest Reserve Account.”

(b)           Section 4.7(b)(xiv)
is hereby amended to delete the reference to the amount “$2,500,000” and insert
in its place the amount “$1,000,000”.

 2
 

(c)           Section 4.7(c) is
hereby amended to delete the words “except that all incurrences under the
Notes, the Subsidiary Guaranties and this Indenture shall be deemed to have
been incurred pursuant to Section 4.7(b)(vi) above” at the end of such
paragraph.

2.3           Amendment to Section 4.9 Limitation on Restricted
Payments.  Section 4.9(b)(ix) is
hereby amended to replace the reference to the amount “$1.0 million” with the
amount “$36.0 million”.

2.4           Amendment to Section 4.13 Limitation on Asset Sales.  The reference to “(a)” and “(b)” in Section
4.13(a)(ii) are hereby deleted and the text of clause (b) of Section
4.13(a)(ii) of the Indenture is hereby deleted in its entirety.

ARTICLE III

MISCELLANEOUS

3.1           The Trustee. 
The recitals in this Supplemental Indenture shall be taken as the
statements of the Company and DJW Corp. and the Trustee assumes no
responsibility for their correctness. 
The Trustee makes no representations as to the validity or sufficiency
of this Supplemental Indenture.

3.2           Limited Effect. 
This Supplemental Indenture shall be deemed to be an amendment to the
Indenture, and the Indenture, as amended hereby, is hereby ratified, approved
and confirmed in each and every respect. All references to the Indenture in the
Notes or any other document, instrument, agreement or writing shall hereafter
be deemed to refer to the Indenture as amended hereby.

3.3           Counterparts; Facsimile Signatures.  This Supplemental Indenture may be executed
by the parties hereto in separate counterparts, including by facsimile, each of
which when so executed and delivered shall be an original, but all such
counterparts shall together constitute but one and the same instrument.

3.4           GOVERNING LAW. 
THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, INCLUDING
SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW BUT
EXCLUDING TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW ALL OTHER CONFLICTS
OF LAWS PRINCIPLES AND CHOICE OF LAW RULES OF NEW YORK.

 3
 

IN WITNESS WHEREOF, the
parties hereto have caused this Supplemental Indenture to be duly executed as
of the date and year first written above.

	
  

  	
  DIAMOND JO WORTH LLC

  
	
   

  	
  By:

  	
  /s/ Natalie Schramm

  
	
   

  	
  Name: Natalie Schramm

  
	
   

  	
  Title:   Chief Financial Officer

  
	
   

  	
  DIAMOND JO WORTH CORP.

  
	
   

  	
  By:

  	
  /s/ Natalie Schramm

  
	
   

  	
  Name: Natalie Schramm

  
	
   

  	
  Title:   Chief Financial Officer

  
	
   

  	
  U.S. BANK NATIONAL
  ASSOCIATION

  
	
   

  	
  By:

  	
  /s/ Raymond Haverstock

  
	
   

  	
  Name: Raymond Haverstock

  
	
   

  	
  Title:   Vice President

  

 

 4Exhibit
4.25

THIRD
AMENDMENT TO LOAN AND SECURITY AGREEMENT AND CONSENT

This THIRD
AMENDMENT TO LOAN AND SECURITY AGREEMENT AND CONSENT (this “Consent”) is
entered into as of December 6, 2006, among DIAMOND JO, LLC (formerly
known as Peninsula Gaming Company, LLC), a Delaware limited liability company (“DJL”),
THE OLD EVANGELINE DOWNS, L.L.C., a
Louisiana limited liability company (“OED”, and together with DJL,
referred to hereinafter each individually as a “Borrower”, and
individually and collectively, as “Borrowers”), the Lenders (as defined
in the hereinafter defined Loan Agreement) signatories hereto, and WELLS FARGO FOOTHILL, INC., a California corporation, as the
arranger and agent for the Lenders (“Agent”).

W I T N E
S S E T H:

WHEREAS,
Borrowers, Agent, and the Lenders are parties to that certain Loan and Security
Agreement dated as of June 16, 2004, as amended by that certain First Amendment
to Loan and Security Agreement dated as of November 10, 2004, and that certain
Second Amendment to Loan and Security Agreement dated as of July 12, 2005, and
as supplemented by that certain Borrower Supplement No. 1 dated as of May 13,
2005 (as amended and supplemented and as otherwise amended, restated,
supplemented or otherwise modified from time to time, the “Loan Agreement”;
capitalized terms used herein and not otherwise defined herein shall have the
meanings ascribed to such terms in the Loan Agreement), pursuant to which the
Lender Group has agreed to make the Term Loan, Advances and other extensions of
credit to Borrowers from time to time pursuant to the terms and conditions
thereof and the other Loan Documents;

WHEREAS, Borrowers
have requested that the Lenders, notwithstanding the provisions of Section
7.20(b), Capital Expenditures, of the Loan Agreement, agree to permit
OED to make, in addition to the capital expenditures permitted by Sections
7.20(b)(i) and 7.20(b)(ii) of the Loan Agreement, capital expenditures in an
aggregate amount not to exceed $25,000,000 for the project to design, develop,
construct, equip and operate that certain hotel and event center to be owned by
OED and connected  to the casino and racetrack of
OED in Opelousas, St. Landry Parish, Louisiana (the “OED Hotel”) (such
project, the “OED Hotel Project”), and the Lenders are willing to agree
to the requested consent on the terms and conditions provided herein;

WHEREAS, Borrowers
have further requested that certain terms and conditions of the Loan Agreement
be amended, and the Lender Group and, by their respective acknowledgment hereof,
Guarantors have agreed to the requested amendments on the terms and conditions
provided herein;

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

1.             Consent.  The Lenders hereby consent to the making by
OED of capital expenditures, in addition to the capital expenditures permitted
by Sections 7.20(b)(i) and 7.20(b)(ii) of the Loan Agreement, in an aggregate
amount not to exceed $25,000,000 for the 

OED Hotel Project,
so long as no Default or Event of Default has occurred and is continuing or
would result as a consequence thereof.

2.             Amendments to
the Loan Agreement.

(a)           Section 1.1 of the Loan Agreement, Definitions,
is hereby modified and amended by deleting the definitions of “Applicable
Margin” and “Operating Assets” in their respective entirety from
such Section and inserting in lieu thereof, respectively, the following:

““Applicable Margin”
means, as of any date of determination, effective as of July 1, 2006, the
applicable percentage indicated below that corresponds to Combined EBITDA for
the 12-month period ended immediately prior to the date of determination:

	
  Pricing Level

  	
   

  	
  Combined

  EBITDA as of

  the end of each

  fiscal quarter

  	
   

  	
  Applicable

  Margin for

  Revolving

  Advances that

  are Base Rate

  Loans

  	
   

  	
  Applicable

  Margin for

  Revolving

  Advances that

  are LIBOR

  Rate Loans

  	
   

  	
  Applicable

  Margin for

  Letter of

  Credit Fee

  	
   

  
	
  Level I

  	
   

  	
  Less than

  $35,000,000

  	
   

  	
  0.50

  	
  %

  	
  3.00

  	
  %

  	
  2.50

  	
  %

  
	
  Level II

  	
   

  	
  Greater than

  or equal to

  $35,000,000,

  but less than

  $52,000,000

  	
   

  	
  0.25

  	
  %

  	
  2.50

  	
  %

  	
  2.50

  	
  %

  
	
  Level III

  	
   

  	
  Greater than

  or equal to

  $52,000,000,

  but less than

  $62,000,000

  	
   

  	
  0.00

  	
  %

  	
  2.25

  	
  %

  	
  2.25

  	
  %

  
	
  Level IV

  	
   

  	
  Greater than

  or equal to

  $62,000,000

  	
   

  	
  0.00

  	
  %

  	
  2.00

  	
  %

  	
  2.00

  	
  %

  

 

The Applicable Margin for
each Revolving Advance and the Letter of Credit Fee shall be determined as of
the end of each fiscal quarter by reference to Combined EBITDA for the 12-month
period then ending; provided, however, that (a) no change in the
Applicable Margin shall be effective until 3 Business Days after the date on
which Agent receives financial statements pursuant to Section 6.3(a),
and a certificate of the chief financial officer of Parent demonstrating such
amount, attaching thereto a schedule in form reasonably satisfactory to Agent
of the computations used by Parent in determining such Combined EBITDA for such
preceding 12 month period ending as of the end of the most recently ended
fiscal quarter, and (b) the Applicable Margin shall be the interest rate margin
set forth for Level I above with respect to the applicable Revolving Advances
and the 

 2
 

Letter of Credit Fee,
respectively, (i) if Parent has not submitted to Agent the information
described in clause (a) of this proviso as and when required under Section
6.3(a), for so long as such information has not been received by Agent, and
(ii) at the election of Agent or the Required Lenders, upon the occurrence and
during the continuation of any Event of Default (whether or not the Default
Rate of interest shall then be in effect).

“Operating Assets”
means, collectively (i) the Ice Harbor Facility and (ii) the casino and
racetrack and related Real Property owned by OED and located in Opelousas, St.
Landry Parish, Louisiana, and the OED Hotel.”

(b)           Section 1.1 of the Loan Agreement, Definitions,
is hereby further modified and amended by deleting the “and” appearing
immediately after clause (g) of the definition of “Permitted Dispositions”
and by adding the following to the end of such definition:

“and (i) so long as no Event of Default has occurred
and is then continuing, dispositions of Equipment used in connection with the
operation of the OED Hotel (other than FF&E Collateral) with an aggregate
fair market value not to exceed $1,000,000 during the term of this Agreement”

(c)           Section 1.1 of the Loan Agreement, Definitions,
is hereby further modified and amended by amending and restating clause (q) of
the definition of “Permitted Lien” in its entirety as follows:

“(q)         leases or subleases of Real Property
(other than the Real Property comprising the Racino Project, the OED Hotel
Project and the Ice Harbor Facility) granted to others that do not interfere in
any material respect with the business of Borrowers or any of the Restricted
Subsidiaries or materially detract from the value of the relative assets of
Borrowers or any Restricted Subsidiary;”

(d)           Section 1.1 of the Loan Agreement, Definitions,
is hereby further modified and amended by adding the following definitions
thereto in the appropriate alphabetical order:

““OED Hotel” means
that certain hotel and event center to be owned by OED and connected to the
casino and racetrack of OED in Opelousas, St. Landry Parish, Louisiana.

“OED Hotel Project”
means the project to design, develop, construct, equip and operate the OED
Hotel.

“Patriot Act” has
the meaning set forth in Section 17.10.

“Third Amendment
Closing Date” means December 6, 2006.”

(e)           Section 2.1 of the Loan Agreement, Advances,
is hereby modified and amended by amending and restating subsection (b) of such
Section in its entirety as follows:

 3
 

“(b)         Anything to the contrary in this Section
2.1 notwithstanding, Agent shall have the right to establish reserves in
such amounts, and with respect to such matters, as Agent in its Permitted
Discretion shall deem necessary or appropriate, against the Borrowing Base,
including reserves with respect to (i) sums that Borrowers are required to pay
(such as taxes, assessments, insurance premiums, or, in the case of leased
assets, rents or other amounts payable under such leases) and has failed to pay
under any Section of this Agreement or any other Loan Document, and (ii)
amounts owing by Borrowers or their Subsidiaries to any Person to the extent
secured by a Lien on, or trust over, any of the Collateral (other than any
existing Permitted Lien set forth on Schedule P-1 which is specifically
identified thereon as entitled to have priority over the Agent’s Liens), which
Lien or trust, in the Permitted Discretion of Agent, likely would have a
priority superior to the Agent’s Liens (such as Liens or trusts in favor of
landlords, warehousemen, carriers, mechanics (including, without limitation,
any Liens in favor of mechanics or subcontractors arising in connection with
the Racino Project or the OED Hotel Project), materialmen, laborers, or
suppliers, or Liens or trusts for ad valorem, excise, sales, or other taxes
where given priority under applicable law) in and to such item of the
Collateral.”

(f)            Section 5.1 of the Loan Agreement, No
Encumbrances, is hereby modified and amended by amending and restating such
Section in its entirety as follows:

“5.1        No Encumbrances.  Each Borrower and its Subsidiaries has good
and indefeasible title to their personal property assets and good and
marketable title to their Real Property, including the Diamond Jo Vessels and
the Real Property comprising the Racino Project, the Ice Harbor Facility and,
upon the commencement thereof, the OED Hotel Project, in each case free and
clear of Liens except for Permitted Liens and except for defects in title that
do not interfere in any material respect with its ability to conduct its
business or to utilize such property for its intended purpose.”

(g)           Section 6.2 of the Loan Agreement, Reporting,
is hereby further modified and amended by amending and restating subsection (c)
of such Section in its entirety as follows:

“(c) a detailed itemized
report showing actual and estimated constructions costs and a statement
reflecting the construction related costs incurred or reasonably expected to be
incurred by Borrowers in connection with the OED Hotel Project prior to or
through the construction completion date and any variances thereof,”

(h)           Section 6.3 of the Loan Agreement, Financial
Statements, Reports, Certificates, is hereby modified and amended by
amending and restating subsection (g) of such Section in its entirety as
follows:

“(g)         as soon as any Borrower has knowledge
that the construction of the OED Hotel Project cannot be completed, or has
knowledge that such Borrower cannot meet its obligations under any construction
documents, 

 4
 

notice thereof and a
statement of the curative action that Borrowers propose to take with respect
thereto,”

(i)            Section 6.3 of the Loan Agreement, Financial
Statements, Reports, Certificates, is hereby further modified and amended
by amending and restating subsection (h) of such Section in its entirety as
follows:

“(h)         as soon as any Borrower has knowledge
thereof, notice of any proposed legislation or administrative action
specifically affecting any Borrower’s or any Subsidiary of a Borrower’s gaming
activities, the Racino Project, the Ice Harbor Facility or the OED Hotel
Project submitted to the floor for business before any Governmental Authority
in the state of Louisiana or Iowa (including the state legislature or any
committee thereof),”

(j)            Section 6.20 of the Loan Agreement, Intentionally
Omitted, is hereby modified and amended by amending and restating such
Section in its entirety as follows:

“Section 6.20       Post-Closing Conditions.  Within 30 days after the Third Amendment
Closing Date (or such later date as Agent approves in writing, in its sole and
absolute discretion), deliver to Agent (a) a detailed budget on construction
costs at the OED Hotel Project, in form and substance reasonably satisfactory
to Agent and (b) all executed agreements, instruments and other documents
required by Section 4.4 of the Loan Agreement, and all Mortgage Policies, to
create, perfect and insure Liens in favor of Agent on any Real Property
acquired after the Closing Date not currently subject to a Lien in favor of
Agent, in form and substance satisfactory to Agent.”

(k)           Section 6 of the Loan Agreement, Affirmative
Covenants, is hereby further amended and modified by adding the following
Section to the end of such Section:

“Section 6.21       Patriot Act.  Following any request therefor, provide all
documentation and other information required by bank regulatory authorities
under applicable “know your customer” and anti-money laundering rules and regulations,
including the Patriot Act.”

(l)            Section 7.4 of the Loan Agreement, Disposal
of Assets, is hereby modified and amended by amending and restating
subsection (a) of such Section in its entirety as follows:

“(a)         Make any sale, lease, exchange, or other
disposition, in one or a series of related transactions, of the OED Hotel, or
of all or any portion of the assets of Borrowers that compose the Ice Harbor
Facility or the Racino Project (in each case, other than a sale or other
disposition that is a Permitted Disposition);”

(m)          Section 7.4 of the Loan Agreement, Disposal
of Assets, is hereby further modified and amended by amending and restating
the introduction to subsection (b) of such Section in its entirety as follows:

 5
 

“Make any Asset Sale
other than Permitted Dispositions; provided, however, that an
Asset Sale (other than a Permitted Disposition, an Asset Sale of the OED Hotel,
an Asset Sale comprised of any assets that compose the Ice Harbor Facility or
the Racino Project or, to the extent not otherwise covered in the foregoing, an
Asset Sale of any FF&E Collateral) may be made if:”

(n)           Section 8 of the Loan Agreement, Events
of Default, is hereby modified and amended by amending and restating
Section 8.16 of such Section in its entirety as follows:

“8.16.     If any Governmental Authority (including
the Louisiana state legislature) restricts the ability of any Borrower to
operate, or restricts, limits or prohibits any Borrower from operating, its
gaming business as conducted on the Closing Date or operating the Racino
Project or the Ice Harbor Facility in the manner contemplated on the Closing
Date or operating the OED Hotel Project in the manner contemplated on December
6, 2006, and such restriction, limit or prohibition results in a Material Adverse
Change;”

(o)           Section 8 of the Loan Agreement, Events
of Default, is hereby further modified and amended by deleting “or” from
the end of Section 8.19 of such Section, by deleting “.” from the end of
Section 8.20 of such Section and in place thereof inserting “; or” and by
adding the following Section 8.21 to the end of such Section:

“8.21.     If, for a period of 30  consecutive days, any Governmental Authority terminates,
suspends, amends, revokes, repeals or fails to renew any law, license,
franchise, registration, qualification, finding of suitability or other
approval or authorization required to enable any Borrower or any of its
Subsidiaries to own, operate, or otherwise conduct or manage the OED Hotel.”

(p)           Section 17 of the Loan Agreement, General
Provisions, is hereby amended and modified by adding the following Section
to the end of such Section:

“Section
17.10  USA Patriot Act Notice.  Agent (for itself and not on behalf of any
Lender) and each Lender that is subject to the USA Patriot Act (Title III of
Pub.L. 107 56 (signed into law October 26, 2001)) (the “Patriot Act”),
hereby notify Borrowers, their Subsidiaries and Guarantors that, pursuant to
the requirements of the Patriot Act, it is required to obtain, verify and
record information that identifies such Persons, or any of them, which
information includes the name and address of such Persons, or any of them, and
other information that will allow such Lender or Agent, as applicable, to
identify such Persons, or any of them, in accordance with the Patriot Act.”

3.             Waiver. 
The Lenders hereby waive the requirements of Section 3 of that certain
Second Amendment to Loan and Security Agreement dated as of July 12, 2005,
among DJL, OED, Diamond Jo Worth, LLC, the Lenders signatories thereto, and
Agent; provided, however, that such waiver shall not in any
manner waive the requirements of Section 4.4 of the Loan Agreement.

 6
 

4.             No Other Amendments or Waivers.  Except in connection with the amendments and
the waiver set forth above, the execution, delivery and effectiveness of this
Consent shall not operate as an amendment of any right, power or remedy of
Agent or the Lenders under the Loan Agreement or any of the other Loan
Documents, nor constitute a waiver of any provision of the Loan Agreement or
any of the other Loan Documents.  Except
for the amendments set forth above, the text of the Loan Agreement and all
other Loan Documents shall remain unchanged and in full force and effect and
Borrowers hereby ratify and confirm their respective obligations thereunder.  This Consent shall not constitute a
modification of the Loan Agreement or any of the other Loan Documents or a
course of dealing with Agent or the Lenders at variance with the Loan Agreement
or the other Loan Documents such as to require further notice by Agent or the
Lenders to require strict compliance with the terms of the Loan Agreement and
the other Loan Documents in the future, except as expressly set forth
herein.  Borrowers acknowledge and
expressly agree that Agent and the Lenders reserve the right to, and do in
fact, require strict compliance with all terms and provisions of the Loan
Agreement and the other Loan Documents, as amended herein.  Borrowers have no knowledge of any challenge
to Agent’s or any Lender’s claims arising under the Loan Documents, or to the
effectiveness of the Loan Documents.

5.             Conditions Precedent to Effectiveness.  This Consent shall become effective as of the
date hereof when, and only when, Agent shall have received, in form and
substance satisfactory to Agent:

(a)           counterparts of this Consent duly
executed and delivered by Borrowers, Agent and the Lenders;

(b)           opinions of Borrowers’ and Guarantors’
counsel in form and substance satisfactory to Agent, such opinions to include
regulatory opinions as to the due issuance and valid existence of Borrowers’
Gaming Licenses; and

(c)           evidence in form and substance
satisfactory to Agent that Borrowers shall have received all licenses
(including the Gaming Licenses), approvals or evidence of other actions
required by any Governmental Authority, including the Louisiana Regulatory
Authorities and the Iowa Gaming Authorities, necessary for the execution and
delivery by Borrowers of this Consent.

6.             Representations and Warranties of Borrowers.  In consideration of the execution and delivery
of this Consent by Agent and the Lenders, each Borrower hereby represents and
warrants in favor of Agent and the Lenders as follows:

(a)           as to each Borrower, the execution,
delivery, and performance by such Borrower of this Consent have been duly authorized
by all necessary action on the part of such Borrower;

(b)           as to each Borrower, the execution,
delivery, and performance by such Borrower of this Consent do not and will not
(i) violate any provision of federal, state, or local law or regulation applicable
to any Borrower, the Governing Documents of any Borrower, or any order,
judgment, or decree of any court or other Governmental Authority binding on any
Borrower, (ii) conflict with, result in a breach of, or constitute (with due
notice or lapse of time 

 7
 

or both) a default under
any material contractual obligation of any Borrower (including any of the
Senior Note Documents), (iii) result in or require the creation or imposition
of any Lien of any nature whatsoever upon any properties or assets of any
Borrower, other than Permitted Liens, or (iv) require any approval of any
Borrower’s members or shareholders or any approval or consent of any Person
under any material contractual obligation of any Borrower;

(c)           the execution, delivery, and
performance by such Borrower of this Consent do not and will not require any
registration with, consent or approval of, notice to, or other action with or
by, any Governmental Authority or other Person, other than any consent or
approval that has been obtained and remains in full force and effect;

(d)           as to each Borrower, the Loan
Documents to which such Borrower is a party (including, without limitation, the
Loan Agreement, this Consent and all other documents contemplated hereby), when
executed and delivered by such Borrower, will be the legally valid and binding
obligations of such Borrower, enforceable against such Borrower in accordance
with their respective terms, except as enforcement may be limited by equitable
principles or by bankruptcy, insolvency, reorganization, moratorium, or similar
laws relating to or limiting creditors’ rights generally;

(e)           no Default or Event of Default exists
under the Loan Agreement or the other Loan Documents; and

(f)            as of the date hereof, all
representations and warranties of Borrowers set forth in the Loan Agreement and
the other Loan Documents are true, correct and complete in all material
respects, except to the extent such representation or warranty expressly
relates to an earlier date (in which case such statement was true and correct
on and as of such earlier date).

7.             Counterparts. 
This Consent may be executed in multiple counterparts, each of which
shall be deemed to be an original and all of which, taken together, shall
constitute one and the same agreement. 
In proving this Consent in any judicial proceedings, it shall not be
necessary to produce or account for more than one such counterpart signed by
the party against whom such enforcement is sought.  Any signatures delivered by a party by
facsimile transmission or by e-mail transmission of an adobe file format
document (also known as a PDF file) shall be deemed an original signature
hereto.

8.             Reference to and Effect on the Loan Documents.  Upon the effectiveness of this Consent, on
and after the date hereof, each reference in the Loan Agreement to “this
Agreement,” “hereunder,” “hereof” or words of like import referring to the Loan
Agreement, and each reference in the other Loan Documents to “the Loan
Agreement” “thereunder,” “thereof” or words of like import referring to the
Loan Agreement, shall mean and be a reference to the Loan Agreement as amended
hereby.

9.             Affirmation of Guaranty.  By executing this Consent, each Guarantor
hereby acknowledges, consents and agrees that all of its obligations and
liability under the Guaranty to which it is a party remain in full force and
effect, and that the execution and delivery of this Consent and any and all
documents executed in connection herewith shall not alter, amend, 

 8
 

reduce or modify its
obligations and liability under such Guaranty or any of the other Loan
Documents to which it is a party.

10.           Costs, Expenses and Taxes.  Borrowers agree, jointly and severally, to
pay on demand all costs and expenses in connection with the preparation,
execution, and delivery of this Consent and the other instruments and documents
to be delivered hereunder, including, without limitation, the fees and
out-of-pocket expenses of counsel for Agent with respect thereto and with
respect to advising Agent as to its rights and responsibilities hereunder and
thereunder.  In addition, Borrowers
agree, jointly and severally, to pay any and all stamp and other taxes payable
or determined to be payable in connection with the execution and delivery of
this Consent and the other instruments and documents to be delivered hereunder,
and agree to save Agent and the Lenders harmless from and against any and all
liabilities with respect to or resulting from any delay in paying or omission
to pay such taxes.  Borrowers hereby
acknowledge and agree that Agent may, without prior notice to Borrowers, charge
such costs and fees to Borrowers’ Loan Account pursuant to Section 2.6(d) of
the Loan Agreement.

11.           Section Titles.  The section titles contained in this Consent
are included for the sake of convenience only, shall be without substantive
meaning or content of any kind whatsoever, and are not a part of the agreement
between the parties.

12.           Entire Agreement.  This Consent and the other Loan Documents
constitute the entire agreement and understanding between the parties hereto
with respect to the transactions contemplated hereby and thereby and supersede
all prior negotiations, understandings and agreements between such parties with
respect to such transactions.

13.           GOVERNING LAW.  THE VALIDITY, INTERPRETATION AND ENFORCEMENT
OF THIS CONSENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

14.           Loan Document.  This Consent shall be deemed to be a Loan
Document for all purposes.

[Remainder of page
intentionally left blank.]

 

 9

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

	
  BORROWERS:

  	
  DIAMOND JO, LLC, a Delaware
  limited liability 

  
	
   

  	
  company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE OLD EVANGELINE DOWNS, L.L.C., a
  Louisiana limited liability company 

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
  AGENT AND LENDERS:

  	
  WELLS FARGO FOOTHILL, INC., a
  California corporation, as Agent and as a Lender 

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  D.B. ZWIRN SPECIAL OPPORTUNITIES FUND, L.P. (formerly
  known as Highbridge/Zwirn Special Opportunities Fund, L.P.) a Delaware
  limited partnership, as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
    By:  

  	
  D.B. Zwirn Partners, LLC, its General 

  
	
   

  	
   

  	
   

  	
  Partner

  
	
   

  	
   

  	
   

  	
  By: 

  	
  Zwirn Holdings, LLC, its 

  
	
   

  	
   

  	
   

  	
   

  	
  Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

[Signatures continue on
following page.]

[Signatures continued from
previous page.]

	
  ACKNOWLEDGED AND AGREED:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  GUARANTORS:

  	
  PENINSULA GAMING, LLC, a Delaware limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PENINSULA GAMING CORP. (formerly known as The Old Evangeline Downs
  Capital Corp.), a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]