Document:

Exhibit 10.7(A)

 

AMENDMENT
TO LEASE AGREEMENT

 

THIS FIRST AMENDMENT TO
EVANSVILLE RIVERBOAT LANDING LEASE (“Amendment”) is made on December                ,
2002, and effective as of December 1, 2001, by and among the City of
Evansville, Indiana (“City”) acting by and through the Redevelopment Commission
of the City of Evansville, Indiana, organized and operating under IC 36-7-14 (“Commission”),
and Aztar Indiana Gaming Company, LLC, a limited liability company, organized
and existing under the laws of the State of Indiana (“Aztar Indiana”), and
Aztar Corporation, a corporation organized and existing under the laws of the
State of Delaware (“Guarantor”). As used herein, the term “Local Government”
refers to the City, and the Commission.

 

RECITALS

 

A. Aztar Indiana
Gaming Corporation, an Indiana corporation (“Aztar Indiana Corp.”), the
Guarantor and the Local Government entered into that certain Project Agreement
made as of June 29, 1994, which was subsequently amended by a First
Amendment to Project Agreement made as of December 3, 1996 (together the “Project
Agreement”). The Project Agreement provided for development of a riverboat
casino and hotel with related facilities (the “Project”), and further provided
the terms for a lease from the Commission to Aztar Indiana Corp. for certain
riverfront property, all subject to issuance of a gaming license by the Indiana
Gaming Commission.

 

B. The City, acting
by and through the Commission, and Aztar Indiana Corp. entered into that
certain Evansville Riverboat Landing Lease (the “Lease”) made as of May 2,
1995, and recorded on May 5, 1995, in Lease Drawer 2, Card No. 2189,
in the records of the Recorder of Vanderburgh County, Indiana, for riverfront
property to be used under the Project Agreement for an initial term of ten (10) years
(the “Original Term”).

 

C. Guarantor
guaranteed the performance of all obligations of Aztar Indiana Corp. under the
Project Agreement and the Lease.

 

D. Effective December 31,
1999, with the consent of the Commission, Aztar Indiana Corp. assigned its
right, title and interest under the Project Agreement and the Lease to Aztar
Indiana, which assumed the obligations of Aztar Indiana Corp., with the consent
of Local Government and the Guarantor.

 

E. Under the terms
of the Lease, the Percentage Rent increased in Lease Year Six (6) of the
Lease which commenced on December 1, 2000.

 

F. In furtherance of
the objectives of the Act and the Downtown Redevelopment Area Plan, and in
order to address other development needs within the City, the Commission
desires to promote and facilitate further economic development projects in the
City of Evansville, some of which likely shall be in the vicinity of the
Project Area (the “Development Projects”), in order to enhance the level of
economic benefits to the City.

 

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G. The Commission
desires to continue receiving rentals on the same basis as such amounts were
paid during Lease Years One (1) through Five (5), but to permit the
increase in Percentage Rent to be applied to the design, development and
construction of the Development Projects.

 

NOW, THEREFORE, for good
and valuable consideration, receipt of which is hereby acknowledged, the
Commission, Aztar Indiana and the Guarantor agree to amend the Lease as follows.
Capitalized terms not otherwise defined herein shall have the meaning ascribed
thereto in the Lease.

 

1.  Amendment
of Rent Schedule. The Percentage Rent and Rental in Schedule 4.01 of
the Lease shall be modified and amended as set forth below. It is the intent of
this Agreement to divide the Percentage Rent and Rental due under the Lease for
Lease Years Seven (7) through Ten (10) into two categories, Base
Percentage Rent and Excess Percentage Rent, which when combined will equal the
Percentage Rent and Rental otherwise due under the Lease.

 

(a)   Base Percentage Rent.

 

(i)                  Definition. Commencing at the beginning of Lease Year Seven (7),
the Percentage Rent for the balance of the Original Term shall be calculated in
the same manner as for the initial five (5) Lease Years (i.e., two percent
of the AGR for the Lease Year up to $50,000,000, plus three percent of the AGR
for the Lease Year that is in excess of $50,000,000). In Lease Years Seven (7) through
Ten (10), such amount as so calculated shall be referred to as the “Base
Percentage Rent.”

 

(ii)               Payment. Aztar Indiana shall continue to pay Base Percentage
Rent for Lease Years Seven (7) through Ten (10) in accordance with the
terms of the Lease, as amended hereby, and the past practices of the parties.

 

(b)       Calculation of Excess Percentage Rent. Commencing at the beginning of Lease
Year Seven (7), the Percentage Rent for the balance of the Original Term shall
also be calculated and determined on an annual basis, at the end of each Lease
Year, in the manner set forth in Schedule 4.01 of the Lease for the
remaining four years of the Original Term, which constitute Lease Years Seven (7) through
Ten (10). Such amount shall be deemed to accrue as of the end of the applicable
Lease Year, and as so calculated shall be referred to as the
“Schedule 4.01 Percentage Rent.” The difference between the
Schedule 4.01 Percentage Rent and Base Percentage Rent shall be referred
to herein as the “Excess Percentage Rent.” For purposes of this Amendment, the
term Excess Percentage Rent means only the difference between
Schedule 4.01 Percentage Rent and Base Percentage Rent occurring during
Lease Years Seven (7) through Ten (10), inclusive.

 

(c)        Accrual and Payment of Excess Percentage
Rent; Credits.

 

(i)                  City of Evansville Capital Development
Fund. Excess
Percentage Rent shall be made available for Development Projects as the “City
of Evansville Capital Development Fund,” which shall be separately accounted
for in the records of Aztar Indiana. Excess Percentage Rent

 

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shall be accrued
for in the records of Aztar Indiana, and paid or offset by Credits (as defined
below) at the times and in the amounts described herein.

 

(ii)               Credits. Excess Percentage Rent liability accounted for in
the City of Evansville Capital Development Fund shall be subject to offset for
credits allowable with respect to payments/investments made by Aztar Indiana in
Eligible Costs (as defined herein) for the Development Projects, and other
direct payments of certain Excess Percentage Rent to the Commission as provided
herein (the “Credits”).

 

(iii)    Final Payment. If the Credits earned by Aztar Indiana
as of the end of Lease Year Ten (10) are less than the aggregate accrued
Excess Percentage Rent (such difference, the “Final Balance”), the Final
Balance of Excess Percentage Rent shall be paid at the end of Lease Year Ten
(10), except for balances for which Credits may be earned during the two years
following the expiration of the Original Term with respect to Aztar Development
Projects pursuant to requirements set forth in Section 2(a)(ii).
With respect to that portion of the Final Balance, such amounts shall be
remitted at the end of each of the two years following the expiration of the
Original Term, respectively, if corresponding Credits have not been earned
pursuant to the requirements set forth in Section 2(a)(ii).

 

(d)       Calculation of Credits and Investment
Ratios and Confirmation.

 

(i)                  General Development Projects. Aztar Indiana shall receive Credits
against Excess Percentage Rent, calculated at the rate of $1.00 for each $1.00
invested by Aztar Indiana in or paid to the Commission, the Commission’s
designee, or a party approved by the Commission for Eligible Costs with respect
to General Development Projects (as defined herein), including the Stadium
Project (as defined herein).

 

(ii)               Aztar Development Projects. Aztar Indiana shall receive Credits
against Excess Percentage Rent, calculated at the rate of $1.00 for each $2.50
invested by Aztar Indiana in Eligible Costs for Aztar Development Projects (as
defined herein).

 

(iii)            Additional Credit. If the Stadium Land Lease (as defined herein) is
executed and Aztar Indiana acquires additional real estate to accommodate Aztar
Development Projects, irrespective of Credits earned under Section 1(d)(ii) above,
Aztar Indiana shall receive additional Credits in an amount up to the amount of
funds expended by Aztar Indiana in connection with such real estate
acquisition, not to exceed Three Hundred Thousand Dollars ($300,000); provided
that such additional Credits shall not be available until either Aztar Indiana
has incurred Committed Expenditures (as defined herein) for Aztar Development
Projects in excess of Fifteen Million Dollars ($15,000,000), or total accrued
Excess Percentage Rent, prior to application of any Credits available under
this Amendment,

 

3

 

exceeds by Sixteen
Million Dollars ($16,000,000) the amount of the Credits to be claimed under
this Section 1(d)(iii).

 

(iv)           Confirmation of Expenditures. As directed by the Commission, Aztar
Indiana shall supply copies of invoices, receipts or other reasonable
documentary evidence related to sums expended to earn Credits, in addition to
the items contemplated in Section 1(f) below.

 

(e)        Limitation on Credits per Development
Project Category; Required Payments and Other Accommodations for Stadium
Project.

 

(i)                  Allocation. Credits available to be earned with respect to
General Development Projects and Aztar Development Projects shall not exceed
the limitations described below:

 

(A)          General. Excess Percentage Rent shall be allocated one-half
for General Development Projects, and one-half for Aztar Development Projects;
provided that, as set forth in clause 1(e)(ii)(A) below, if the General
Development Project is the Stadium Project then Aztar will provide minimum
funding of Ten Million Dollars ($10,000,000), irrespective of accrued Excess
Percentage Rent allocated for General Development Projects. Further, up to an
additional Two Million Dollars ($2,000,000) may be reallocated from Aztar
Development Projects to the extent Excess Percentage Rent exceeds Eighteen
Million Three Hundred Thousand Dollars ($18,300,000), as further described in
clause 1(e)(i)(B) below.

 

(B)            Special Allocation. In the event the City proceeds with the
Stadium Project and Excess Percentage Rent has accrued in excess of Eighteen
Million Three Hundred Thousand Dollars ($18,300,000) the Commission may, after
exhausting on the Stadium Project the first Ten Million Dollars ($10,000,000)
it may demand pursuant to Section 1(e)(ii)(A), require that certain Excess
Percentage Rent otherwise allocable for Aztar Development Projects be
reallocated to General Development Projects for payment of Eligible Costs
related to the Stadium Project. The maximum amount of Excess Percentage Rent
permitted to be reallocated hereunder is Two Million Dollars ($2,000,000), and
no reallocation may occur to the extent it results in less than Eight Million
Three Hundred Thousand Dollars ($8,300,000) being allocated for Aztar
Development Projects. Such reallocation shall also not occur except upon
presentation of evidence that qualifying Eligible Costs not paid from the
initial Ten Million Dollars ($10,000,000) referred to above have been incurred
or are otherwise due and owing, including repayment of bonds. Any demand for
reallocation must be made on or before the conclusion of Lease Year Ten (10).
In the event of any such reallocation,

 

4

 

Excess Percentage
Rent exceeding Twenty Million Three Hundred Thousands Dollars ($20,300,000)
shall be exclusively allocated for Aztar Development Projects, up to the up to
Two Million Dollar ($2,000,000) amount previously reallocated for the Stadium
Project. Thereafter, any remaining Excess Percentage Rent shall be allocated
equally for General Development Projects and Aztar Development Projects.

 

(ii)               Required Payments and Accommodations for
Stadium Project.

 

(A)          Payment. Notwithstanding whether sufficient Excess Percentage
Rent has accrued, in the event that the City shall give notice to Aztar Indiana
that the City has made a final and definitive decision to proceed with the
Stadium Project as the General Development Project (a “Stadium Notice”), Aztar
Indiana shall, upon the request of the Commission and upon presentation of
evidence that Eligible Costs with respect to the Stadium Project have been
incurred or are otherwise due and owing, pay to the Commission in exchange for
dollar-per-dollar Credits an amount equal to such Eligible Costs, up to a
maximum of Ten Million Dollars ($10,000,000). Such payment obligation shall be
absolute, and amounts paid shall not be subject to refund if insufficient
Excess Percentage Rent ultimately accrues, but any excess Credits shall apply
to reduce the balance allocated for Aztar Development Projects. Except as set
forth in the following sentence, Aztar Indiana shall have no payment obligation
under this clause 1(e)(ii)(A) if Aztar Indiana has not received a Stadium
Notice on or before December 31, 2003. Notwithstanding the foregoing, the
City may request and Aztar Indiana shall pay to the City, in exchange for
dollar-per-dollar Credits against Excess Percentage Rent, a portion of such Ten
Million Dollars ($10,000,000) set forth above prior to delivery of the Stadium
Notice. Such portion shall be applied against Eligible Costs with respect to
the proposed Stadium Project in the form of land acquisition or preliminary
costs (excluding construction costs), such as feasibility studies and
professional costs.

 

B.                 Land Use. Aztar Indiana agrees that if the City makes a final
and definitive decision by December 31, 2003 to proceed with the Stadium
Project as the General Development Project, Aztar Indiana shall lease to the
Commission or its designee for use in connection with the Stadium Project what
the parties presently estimate to be three and forty-six one hundredths (3.46)
acres of land located on the Northwestern portion of the approximately seven (7) acre
parcel presently owned by Aztar Indiana in the vicinity of the Project Area,
and bounded on the south by the south edge of the vacated First Street
right-of-way. The actual acreage of such leased land shall be determined by the
actual acreage

 

5

 

within the
boundaries described above. Such lease (the “Stadium Land Lease”) shall contain
mutually acceptable customary terms, but in any event the term shall be forty
(40) years and rental shall be one dollar ($1.00) per year. The landlord under
the Stadium Land Lease shall pay all required ad valorem real estate taxes on
the unimproved land and the Stadium Land Lease shall contain customary
covenants of possession and quiet enjoyment for the benefit of the tenant. The
tenant under the Stadium Land Lease shall pay all taxes related to any
improvements, and the tenant shall maintain or cause to be maintained primary
insurance as reasonably required by the landlord to insure the landlord under
the Stadium Land Lease against all liability related to the Stadium Project or
operations or uses on the land described in the Stadium Land Lease. Such
requirements shall include that all insurers be duly licensed and possess at
all relevant times an AM Best, Inc. rating of A-, VII or better or if
unlicensed, be an admitted surplus lines carrier, that such coverage include
workers compensation insurance, commercial general liability covering bodily
injury, broad form property damage, personal injury, blanket contractual
liability, independent contractors, products and completed operations, and
liquor coverage, commercial/business automobile liability, and umbrella excess
liability. Policy amounts shall be subject to change from time to time based
upon the landlord’s requirements to be fully insured and reflect changes in
economic and risk circumstances, but shall initially be One Million Dollars
($1,000,000) for worker’s compensation, One Million Dollars ($1,000,000) each
occurrence and general aggregate limit for commercial general liability, One
Million Dollars ($1,000,000) for commercial/business automobile liability, and
Two Million Dollars ($2,000,000) for umbrella/excess liability. The Stadium
Land Lease shall also provide for customary events of default, remedies, and
reasonable cure periods, and shall include as an event of default the taking by
eminent domain or similar process any of such approximately seven (7) acres
described above not subject to the Stadium Land Lease, together with any
adjacent or proximately located land acquired by Aztar Indiana or an affiliate
prior to December 1, 2007 for Aztar Development Projects (collectively,
the “Remaining Property”). Subject to necessary design components of the
Stadium Project, the parties shall cooperate on matters of ingress and egress
between the Stadium Project, Aztar Development Projects, and other Aztar
Indiana facilities. The Stadium Land Lease shall contain an option for the
tenant to purchase the leased land at anytime during the Stadium Land Lease at
fair market value as established at the time the Stadium Land Lease is
executed. Fair market value shall be determined on the basis of an average of
two appraisals, one commissioned by the Commission and conducted by David
Matthews and one commissioned by Aztar Indiana and conducted by William

 

6

 

Bartlett, which
appraisals shall be conducted prior to the execution of the lease. Upon the
execution of the Stadium Land Lease, a short form memorandum thereof, suitable
for recording, shall be placed of record. If the purchase option is exercised,
the deed conveying such property shall be subject to a restrictive covenant of
reversion in the event of a subsequent exercise of eminent domain or similar
process against any portion of the Remaining Property, which covenant shall
terminate on the forty (40) year anniversary of the execution of the
Stadium Land Lease.

 

C.                 Relocation of Flood Wall. In the event the existing flood wall is
relocated in connection with the Stadium Project, Aztar Indiana shall have no
financial responsibility for such relocation, but Aztar Indiana shall retain
the right to reasonably approve the design and location of the relocated flood
wall, such approval to be predicated upon Aztar Indiana’s interest in
preserving the utility and value of the Remaining Property and Aztar Indiana’s
existing facilities. It is the preference of Aztar Indiana that the flood wall
be relocated to the South side of Riverside Drive, which Local Government shall
make a good faith effort to accommodate. In any event, any flood wall relocated
along the North or South side of Riverside Drive shall be designed in
appearance similarly to the renovated flood wall located at the Dress
Plaza/Riverfront esplanade.

 

D.                Stadium Project Defined. For purposes of this Amendment, the
term “Stadium Project” means the construction and equipping of a stadium for
use by an affiliated minor league baseball club and other community purposes,
as outlined in the “Report to the Mayor of Evansville on the Feasibility of a
Downtown Baseball Stadium,” dated October 1, 2002, presented by the
Mayor’s Baseball Study Committee.

 

(f)          Verification of Expenditures, Excess
Percentage Rent and Credits. Within twenty (20) days after the end of each
month during the Original Term and each month thereafter until the Final
Balance has been paid in full or recouped through Credits, Aztar Indiana shall
deliver to the Commission a statement showing in reasonable detail the amount
and category of all expenditures made in respect of Development Projects during
the prior month and to date on a cumulative basis for each Development Project
separately and for all Development Projects collectively. Such statement also
shall include a calculation of anticipated Excess Percentage Rent, anticipated
remaining Excess Percentage Rent and Credits accumulated during the prior month
and to date on a cumulative basis. Such statement shall be certified by the
chief financial officer of Aztar Indiana to be true, correct and complete.

 

2.             Concerning the Development Projects. As further set forth below, the
Commission and Aztar Indiana commit and agree to proceed in good faith to
identify and approve Development Projects during the Original Term and
subsequent periods as contemplated

 

7

 

in Section 2(a)(ii) below,
subject to the following terms and provisions which shall apply to the
identification, approval, development and administration of the Development
Projects by Aztar Indiana and the Commission or its designated agent:

 

(a)        Categories. The Commission has identified the following
categories of Development Projects which will entitle Aztar Indiana to receive
Credits against Excess Percentage Rent in exchange for investment by Aztar
Indiana in or payments made with respect to the Eligible Costs of Development
Projects:

 

(i)                  General Development Projects. The Commission desires to create jobs,
increase tax revenues, provide direct economic benefits and promote tourism and
additional economic development by promoting the construction or acquisition of
real estate or facilities or capital projects to be owned by the City, the
Commission, or parties approved by the Commission (the “General Development
Project(s)”). The parties presently contemplate that the Stadium Project will
be the General Development Project and funding thereof will occur as set forth
in Section 1(e)(ii)(A). In the event the Stadium Project does not proceed
as contemplated, the parties shall agree in good faith on alternative General
Development Projects and the funding thereof from allocated Excess Percentage
Rent, but the balance of this Amendment shall not be affected.

 

(ii)               Aztar Development Projects. In order to create jobs, increase tax
revenues, provide direct economic benefits and promote tourism and economic development,
the Commission desires to support certain Development Projects which Aztar
Indiana might propose to construct upon the approximately seven acre parcel
currently owned by Aztar Indiana contiguous to the Project Area or upon any
other parcels of real estate which Aztar Indiana might acquire in the vicinity
of the Project Area (all such parcels are referred to herein as the
“Development Real Estate”). The types of facilities contemplated for
development upon and about the Development Real Estate include the construction
of new facilities or square footage expansions of existing Aztar Indiana
facilities to constitute hotels, restaurants, entertainment facilities,
conference facilities and other related tourism facilities (the “Aztar
Development Projects”). Aztar Indiana, or its designee, shall own and shall be
solely responsible for the selection, acquisition, design, development,
construction, operation, maintenance and repair of the types of facilities
constituting Aztar Development Projects. Aztar Indiana shall use good faith
efforts to announce its first project by April 1, 2003 and break ground by
October 1, 2003. Aztar Indiana will either incur Committed Expenditures
(as defined below) that correlate to Two Million Dollars ($2,000,000) of
Credits under Section 1(d)(ii) (i.e., Five Million Dollars
($5,000,000) of Committed Expenditures in each of the years ending November 30,
2003, 2004 and 2005 or pay with respect to Excess Percentage Rent at the end of
each such year the correlated amount to which Committed Expenditures do not
meet the applicable target amount, provided that under no circumstance shall
such payment be required until

 

8

 

such payments,
when added to the initial Ten Million Dollars ($10,000,000) available for the
Stadium Project equal the total amount of accrued Excess Percentage Rent.
Committed Expenditures incurred in a year that correlate to Credits in excess
of Two Million Dollars ($2,000,000) shall carry forward to subsequent years to
apply against any shortfall otherwise occurring in such year. With respect to
any final balance of Excess Percentage Rent allocated for Aztar Development
Projects as of November 30, 2005 that has not been offset by Credits or
otherwise paid, Aztar Indiana shall either incur Committed Expenditures that
correlate to Credits or pay such portion of the final balance during the years
ending November 30, 2006 and 2007 as follows: one-half in the year ended November 30,
2006 and one-half in the year ended November 30, 2007. For purposes
hereof, “Committed Expenditures” means Eligible Costs paid or contractually
committed with respect to Aztar Development Projects.

 

(b)       Eligible Costs. Those types of fees, costs, and
expenses which Aztar Indiana agrees to advance in connection with the
Development Projects and which will entitle Aztar Indiana to receive Credits
against Excess Percentage Rent shall include direct payment or reimbursement of
all reasonable and customary fees, costs and expenses associated with feasibility
studies, design, development, real estate acquisition, construction,
installation and equipping of potential Development Projects, and all
reasonable and customary fees, costs and charges for architects, engineers,
attorneys, consultants, contractors, vendors, suppliers, surveyors, title
evidence, permits, licenses and other related requirements with respect to
Development Projects, and repayment of indebtedness of the City or the
Commission incurred to finance any of the foregoing (“Eligible Costs”);
provided, however, that with respect to Aztar Development Projects, Eligible
Costs shall not include any management fees paid by Aztar Indiana to third
party operators of such projects.

 

(c)        Project and Design Approval. In general, the nature and design of
all Aztar Development Projects shall be subject to the approval of the
Commission or its designated agent, who shall not unreasonably withhold consent
to a design proposal of Aztar Indiana. Each such approval shall be in writing,
and shall include, but otherwise be generally limited to, approval of (i) the
scope of the proposed development, (ii) general aspects of the design of
facilities, including elevations, and (iii) the reasonable use of the
facility to assure conformity with community standards. Each such approval may
also, at the direction of the Commission, set forth a listing of operations and
uses that do not conform to community standards, and set forth reasonable
recourse if a non-conforming operation or use is introduced within a designated
period of time. The Commission or its designated agent shall control the nature
and design of all General Development Projects. As part of the review and
approval of Aztar Development Projects, Aztar Indiana shall provide to the City
or its designated agent estimates of the Eligible Costs by general category
(such as construction costs, professional costs, site acquisition, construction
contingency). Prior to incurring any costs or expenses on a Development
Project, Aztar Indiana and the

 

9

 

Commission shall
agree upon a proposed budget for each general category of expense for such
project, including a reasonable contingency for unanticipated construction
costs, which will include a maximum permitted amount that will qualify as
Eligible Costs pursuant to this section (the “Maximum Budget Amount”). Aztar
Indiana will receive Credits only with respect to Eligible Costs that equal the
lesser of (i) the Maximum Budget Amount, or (ii) the actual costs
incurred (if less than the Maximum Budget Amount), for such Development
Project.

 

(d)       Further Assurances. The Commission and Aztar Indiana agree
to execute such documents and instruments, and to take such actions, as either
party reasonably may require to carry out the purpose and intent of this
Amendment concerning the design, development and construction of the
Development Projects.

 

3.   Lease
in Full Force and Effect. Except as expressly amended by this Amendment,
the Lease shall remain unchanged and in full force and effect, as amended
herein.

 

4.   Affirmation
of Guaranty. Guarantor hereby unconditionally guarantees and promises to
perform and reaffirms its obligations under the Lease, as amended by this
Amendment, and acknowledges that the Guaranty secures the obligations of Aztar
Indiana set forth in this Amendment, particularly with respect to the City of
Evansville Capital Development Fund and the payment of the Final Balance.

 

5.   Third
Party Approvals. This Amendment is subject to approval by any lender to
Aztar Indiana or to Guarantor and by the Indiana Gaming Commission, if
required.

 

6.   Authorization.
The Parties respectively represent to one another that the execution, delivery
and performance of this Amendment have been duly authorized and this Amendment
constitutes the legally binding obligation of the respective Parties.

 

7.   Definitions.
All of the capitalized terms used herein, but not defined in this Amendment,
shall have the meaning set forth in the Project Agreement and the Lease.

 

IN WITNESS WHEREOF, the
parties have caused their duly authorized representatives to execute this
Amendment as of the day and year first above written.

 

	
  AZTAR
  INDIANA GAMING COMPANY, LLC

  	
   

  	
  AZTAR CORPORATION

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ James L. Brown

  	
   

  	
  By:

  	
  /s/ Robert M. Haddock

  
	
  Printed:

  	
  JAMES L. BROWN

  	
   

  	
  Printed:

  	
  Robert M. Haddock

  
	
  Title:

  	
  PRESIDENT/GM

  	
   

  	
  Title:

  	
  President &
  CFO

  

 

10

 

	
  REDEVELOPMENT
  COMMISSION OF

  
	
  THE CITY OF EVANSVILLE,
  INDIANA

  
	
   

  
	
  [ILLEGIBLE]

  	
   

  
	
   

  	
   

  
	
  [ILLEGIBLE]

  	
   

  
	
   

  	
   

  
	
  [ILLEGIBLE]

  	
   

  
	
   

  	
   

  
	
  [ILLEGIBLE]

  	
   

  
	
   

  	
   

  
	
  [ILLEGIBLE]

  	
   

  

 

11Exhibit 10.7(B)

 

SECOND
AMENDMENT TO LEASE AGREEMENT

 

THIS SECOND AMENDMENT TO
EVANSVILLE RIVERBOAT LANDING LEASE (“Second Amendment”) is made on August 27th, 2003, and effective as of December 1, 2001, by and
among the City of Evansville, Indiana acting by and through the Redevelopment
Commission of the City of Evansville, Indiana, organized and operating under IC
36-7-14 (“Commission”), Aztar Indiana Gaming Company, LLC, a limited liability
company, organized and existing under the laws of the State of Indiana (“Aztar
Indiana”), and Aztar Corporation, a corporation organized and existing under
the laws of the State of Delaware (“Guarantor”).

 

RECITALS

 

A. The Commission, Aztar
Indiana and Guarantor are the parties in interest to that certain Evansville
Riverboat Landing Lease dated May 2, 1995 (the “Original Lease”), as amended by
an Amendment to Lease Agreement effective December 1, 2001 (the “First
Amendment,” and collectively with the Original Lease, the “Lease”).

 

B. Section 2(a)(i) of the
First Amendment contemplates that in the event the Stadium Project does not
proceed as the sole General Development Project, the parties shall agree in
good faith on additional General Development Projects and the funding thereof,
and Aztar is willing to confirm guaranteed funding commitments for additional
General Development Projects, as set forth herein.

 

NOW, THEREFORE, for good
and valuable consideration, receipt of which is hereby acknowledged, the
Commission, Aztar Indiana and the Guarantor agree to amend the Lease as
follows. Capitalized terms not otherwise defined herein shall have the meaning
ascribed thereto in the Lease.

 

1. Additional General
Development Projects. Notwithstanding whether sufficient Excess Percentage
Rent has accrued, Aztar Indiana shall make available, in exchange for Credits,
$10,000,000 of aggregate minimum funding for General Development Projects. Such
payment obligation shall be absolute, and amounts paid shall not be subject to
refund if insufficient Excess Percentage Rent ultimately accrues, but any
excess Credits shall apply to reduce the balance allocated for Aztar
Development Projects. Such funds shall be disbursed to the Commission upon
request to pay or reimburse itself for Eligible Costs of General Development
Project(s) that are due and owing or have been paid.

 

2. Confirmation.
The Lease, to the extent not inconsistent with the terms hereof, is hereby
confirmed.

 

1

 

IN WITNESS WHEREOF, the
parties have caused their duly authorized representatives to execute this
Second Amendment as of the day and year first above written.

 

	
  AZTAR
  INDIANA GAMING

  	
  AZTAR CORPORATION

  
	
  COMPANY,
  LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ James L. Brown  

  	
   

  	
  By:

  	
  /s/ Robert M. Haddock  

  
	
  Printed:

  	
  James L. Brown

  	
  Printed:

  	
  Robert M. Haddock

  
	
  Title:

  	
  Pres./GM

  	
  Title:

  	
  President & CFO

  
					

 

	
  REDEVELOPMENT
  COMMISSION OF THE

  	
   

  
	
  CITY OF EVANSVILLE,
  INDIANA

  	
   

  
	
   

  	
   

  
	
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Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}]]