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EXHIBIT 10.35B
 
 
 

 

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AMENDMENT NO. 1
TO
FIRST PREFERRED SHIP MORTGAGE
ON THE WHOLE OF
THE BELLE OF ORLEANS (Official Number 1033140)

$50,000,000.00

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BELLE OF ORLEANS, L.L.C.
c/o Peninsula Gaming Partners, LLC
600 Star Brewery Dr., Suite 110
Dubuque, Iowa 52001
Attn:  Natalie Schramm

IN FAVOR OF

WELLS FARGO CAPITAL FINANCE, INC.,
Formerly known as Wells Fargo Foothill, Inc., as Agent
2450 Colorado Avenue
Santa Monica, California  90404
Attn:  Business Finance Division Manager
 

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Dated March 2, 2011
 

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Discharge Amount: $50,000,000.00 Together
With Interest, Expenses, Attorneys’ Fees
and Performance of Mortgage Covenants

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AMENDMENT NO. 1
TO FIRST PREFERRED SHIP MORTGAGE

         BELLE OF ORLEANS,
L.L.C.                                                                           *           UNITED
STATES OF AMERICA

                            TO                                                                          *           STATE
OF IOWA

WELLS FARGO CAPITAL FINANCE,
INC.,                                                         *           COUNTY
OF DUBUQUE
as Agent
             *

*           *           *           *           *           *           *

THIS AMENDMENT NO. 1 TO FIRST PREFERRED SHIP MORTGAGE (this “Amendment”) is made
this 2nd day of March, 2011, by and between BELLE OF ORLEANS, L.L.C., a
Louisiana limited liability company, whose mailing address is c/o Peninsula
Gaming Partners, LLC, 600 Star Brewery Dr., Suite 110, Dubuque, Iowa 52001,
Attn: Natalie Schramm, appearing herein through its duly authorized
representative pursuant to a resolution of its sole member (hereinafter called
“Mortgagor” and referred to in the neuter, singular without regard to gender or
number) and WELLS FARGO CAPITAL FINANCE, INC., as agent (the "Agent"; formerly
known as Wells Fargo Foothill, Inc. and referred to herein as "Mortgagee") under
that certain Amended and Restated Loan and Security Agreement dated as of
October 29, 2009 , by and among Mortgagor, Peninsula Gaming, LLC, a Delaware
limited liability company ("Parent"), Diamond Jo Worth, LLC, a Delaware limited
liability company ("DJW"), The Old Evangeline Downs, L.L.C., a Louisiana limited
liability company ("OED"), Diamond Jo, LLC, a Delaware limited liability company
("DJL") Kansas Star Casino, LLC, a Kansas limited liability company ("KSC")
(Mortgagor, Parent, DJW, OED, DJL and KSC are referred to hereinafter each
individually as "Borrower," and individually and collectively, jointly and
severally, as "Borrowers"), the lenders from time to time party thereto (the
"Lenders"), and Agent, as amended by that certain First Amendment to Amended and
Restated Loan and Security Agreement, dated as of June 15, 2010, and the Second
Amendment (as defined below) (as such instrument may be further amended,
restated, supplemented or otherwise modified from time to time, the “Loan
Agreement”).  Capitalized terms not otherwise defined herein shall have the
meaning set forth such terms in the Loan Agreement.

W I T N E S S E T H:

WHEREAS, Mortgagor executed and delivered to the Mortgagee that certain First
Preferred Ship Mortgage dated as of October 29, 2009 (the “Ship Mortgage”) to
secure the Secured Obligations (as defined in the Ship Mortgage) and pursuant
thereto Mortgagor granted to Mortgagee a first preferred mortgage lien on the
Belle of Orleans (Official Number 1033140);

WHEREAS, the Ship Mortgage was duly recorded on October 30, 2009 with the
National Vessel Documentation Center at 10:36 a.m. in Batch No. 717423, Doc ID
No. 11238600;

WHEREAS, the Borrowers, Peninsula Gaming Corp., a Delaware corporation
("Guarantor"), the Lenders and the Agent entered into a Second Amendment to
Amended and Restated Loan and Security Agreement dated as of February 2, 2011
(the "Second Amendment"); and

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WHEREAS, Mortgagor and Mortgagee now desire to enter into this Amendment to
effect or otherwise take into account the foregoing.

NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged,
Mortgagor and Mortgagee covenant and agree that the terms and provisions set
forth in the Ship Mortgage be and they are hereby amended as follows:
Each reference in the Ship Mortgage to the "Loan Agreement" is hereby amended
and shall hereafter be a reference to the Loan Agreement as defined herein.

2.           Each reference in the Ship Mortgage to Wells Fargo Foothill, Inc.
is hereby amended  and shall hereafter be a reference to Wells Fargo Capital
Finance, Inc.

3.           Section 3.4 of the Loan Agreement, Term, has been amended to
provide that January 15, 2015 shall be the Maturity Date.

4.           The Ship Mortgage shall be deemed amended to the extent necessary
to give effect to the foregoing.  Except as amended hereby, the Ship Mortgage
shall remain in full force and effect.

5.           All capitalized terms used in this Amendment without definition
shall have the respective meanings given them in the Ship Mortgage, as amended
hereby.

6.           As amended hereby, the Ship Mortgage is in all respects ratified
and confirmed, and all of the terms, provisions and conditions thereof shall be
and remain in full force and effect.  In particular, and without limiting the
foregoing, the Vessel shall remain subject to the first preferred lien of the
Ship Mortgage, as amended hereby, as security for the payment and performance of
the Secured Obligations.  All of the liens, privileges and priorities existing
under the Ship Mortgage are hereby renewed, extended and carried forward as
security for the payment and performance of the Secured Obligations and all
other sums due under the Ship Mortgage, as amended hereby.

7.           Nothing contained herein shall be construed (a) as a novation of
the Secured Obligations or the Ship Mortgage, or (b) to release, cancel,
terminate or otherwise impair the preferred status or priority of the preferred
lien created by the Ship Mortgage.

8.           The total amount of the Ship Mortgage, as amended hereby, is
reduced to $50,000,000.00, plus interest, expenses and costs as provided in the
Ship Mortgage, the Loan Agreement, as amended, and performance of the Ship
Mortgage covenants.  The discharge amount continues to be the same as the
principal obligations, together with interest, expenses, attorneys’ fees and
costs and performance of the covenants and agreements comprising a part of the
Ship Mortgage, as amended hereby, and the other Secured Obligations.  The
interest of Mortgagor in the Vessel is the entire 100% interest, and the
interest mortgaged in the Ship Mortgage covers the entire 100% interest in the
Vessel.

9.           THIS AMENDMENT, AND ALL OF THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER, AND THEIR RESPECTIVE SUCCESSORS AND ASSIGNS, SHALL BE
GOVERNED BY THE GENERAL MARITIME LAW OF THE UNITED STATES

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OF AMERICA.  IN THE EVENT THAT ANY PROVISIONS OR CLAUSE OF THIS AMENDMENT NO. 1
TO FIRST PREFERRED SHIP MORTGAGE CONFLICT WITH APPLICABLE LAWS, SUCH CONFLICT
SHALL NOT AFFECT OTHER PROVISIONS OF THIS AMENDMENT NO. 1 TO FIRST PREFERRED
SHIP MORTGAGE WHICH CAN BE GIVEN EFFECT WITHOUT THE CONFLICTING PROVISION, AND
TO THIS END THE PROVISIONS OF THIS AMENDMENT ARE DECLARED TO BE SEVERABLE.

10.           This Amendment may be executed by one or more of the parties
hereto on any number of separate counterparts (including by facsimile
transmission), and all of said counterparts taken together shall be deemed to
constitute one and the same instrument.

[Remainder of page intentionally left blank.]

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IN WITNESS WHEREOF, Mortgagor has executed this Amendment as of the day, month
and year first above written.

 
WITNESSES:
 
   
BELLE OF ORLEANS, L.L.C., a Louisiana limited liability company
 
 
 
/s/Nicole R. Johnson
   
/s/ Natalie Schramm
 
Printed Name:  Nicole R. Johnson
   
Name:  Natalie Schramm
 
 
   
Title:    Chief Financial Officer
  /s/Lori Nelson         Printed Name:  Lori Nelson        

 

[Remainder of page intentionally left blank.]

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IN WITNESS WHEREOF, Agent has executed this Amendment as of the day, month and
year first above written.

WITNESSES:
 
   
WELLS FARGO CAPITAL FINANCE, INC., as Agent
 
 
 
/s/Nicholas Ply
   
/s/ Patrick McCormack
 
Printed Name:  Nicholas Ply
   
Name:  Patrick McCormack
 
 
   
Title:    V.P.
  /s/Sabrina Zist         Printed Name:  Sabrina Zist      

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ACKNOWLEDGMENT

STATE OF IOWA

COUNTY OF DUBUQUE

BE IT KNOWN, that on March 2nd, 2011, personally appeared before me, Notary
Public, duly commissioned and qualified and the undersigned authority for the
said state and parish, and within my jurisdiction, Natalie Schramm (“Appearer”),
who, being duly sworn, did depose, acknowledge and say:

That Appearer is Chief Financial Officer of Belle of Orleans, L.L.C., the
limited liability company described in and which executed the foregoing
Amendment No. 1 to First Preferred Ship Mortgage; that by order and authority of
said limited liability company Appearer signed his name thereto and acknowledged
to me that he executed said Amendment No. 1 to First Preferred Ship Mortgage as
such officer of said limited liability company; and that the same is the free
and voluntary act and deed of said limited liability company, and of herself as
such officer thereof, for the uses and purposes therein expressed, after first
having been duly authorized by said limited liability company so to do.

IN WITNESS WHEREOF, Appearer has signed this Acknowledgment in the presence of
the two undersigned witnesses and me, Notary, on the day and in the month and
year first above written.
 
WITNESSES:
 
       
/s/Nicole R. Johnson
   
/s/ Natalie Schramm
 
Printed Name:  Nicole R. Johnson
   
Name:  Natalie Schramm
 
 
        /s/Lori Nelson         Printed Name:  Lori Nelson        

 
 

 

         
 
   
/s/Karen M. Beetem
 
 
   
NOTARY PUBLIC
 
 
   
Notarial/Bar Roll Number: 130029
 

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ACKNOWLEDGMENT

STATE OF                                

COUNTY OF                                           

BE IT KNOWN, that on March ___, 2011, personally appeared before me, Notary
Public, duly commissioned and qualified and the undersigned authority for the
said state and parish, and within my jurisdiction, ___________________
(“Appearer”), who, being duly sworn, did depose, acknowledge and say:

That Appearer is __________________ of Wells Fargo Capital Finance, Inc., the
company described in and which executed the foregoing Amendment No. 1 to
Preferred Ship Mortgage; that by order and authority of the Board of Directors
of said banking association Appearer signed his name thereto and acknowledged to
me that he executed said Amendment No. 1 to First Preferred Ship Mortgage as
such officer of said banking association; and that the same is the free and
voluntary act and deed of said banking association, and of himself as such
officer thereof, for the uses and purposes therein expressed, after first having
been duly authorized by said banking association so to do.

IN WITNESS WHEREOF, Appearer has signed this Acknowledgment in the presence of
the two undersigned witnesses and me, Notary, on the day and in the month and
year first above written.
 
WITNESSES:
 
       
/s/Nicholas Ply
   
/s/ Patrick McCormack
 
Printed Name:  Nicholas Ply
   
Name:  Patrick McCormack
 
 
        /s/ Daniel Whitwer         Printed Name:  Danie Whitwer        

 
 

State of CALIFORNIA

County of Los Angeles

On March 3, 2011, before me, Christy S. Walsh, Notary Public, personally
appeared Patrick McCormack, who proved to me on the basis of satisfactory
evidence to be the person whose name is subscribed to the within instrument and
acknowledged to me that he executed the same in his authorized capacity and that
by his signature on the instrument the person, or the entity upon behalf of
which the person acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California
that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

         
Signature:
 /s/Christy Sayeg Walsh
 (Seal)
             

         
 
   
 
 
 
   
 
 
 
   
 
 

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