Document:

Exhibit 10.4

 

ISLE OF CAPRI CASINOS, INC. EMPLOYMENT AGREEMENT

Compliance Addendum - Code Section 409A

 

Executive (“Executive”): 
Edmund L. Quatmann, Jr.

 

Effective Date of Employment Agreement: July 1, 2008

 

Effective Date of This Addendum: January 1, 2009

 

Isle
of Capri Casinos, Inc., a corporation organized and existing under the
laws of the State of Delaware (the “Company”), previously entered into an
Employment Agreement with Executive dated the date set forth above (the “Agreement”),
providing for, among other things, the payment or provision of certain amounts
and benefits now subject to Section 409A of the Internal Revenue Code of
1986, as amended (the “Code”).  This
Addendum is intended to comply with the provisions of Code Section 409A
and the final regulations promulgated thereunder and is to be interpreted and
construed in a manner consistent with such intent.  To the extent the provisions of this Addendum
are inconsistent with the provisions of the Agreement, the terms of this
Addendum shall govern.

 

1.                                       Definitions.  Capitalized terms used in this Addendum shall have the meanings
ascribed to them in the Agreement, except:

 

a.                                       For all purposes under the Agreement, the
term “Disability” or “Disabled” shall mean that
Executive by reason of a medically determinable physical or mental impairment
that can be expected to result in death or last for a continuous period of not
less than 12 months (i) has been receiving income replacement benefits for
a period of not less than three months under a separate long-term disability
plan or policy maintained by the Company or an affiliate thereof, or (ii) is
unable to engage in any substantial gainful employment.

 

b.                                      For all purposes under the Agreement, the
term “Termination of Employment” or words of similar import shall mean the
later of the date on which (i) Executive’s employment with the Company and
its affiliates ceases, or (ii) the Company and Executive reasonably
anticipate that Executive will perform no further services for the Company and
its affiliates, whether as a common law employee or independent
contractor.  Notwithstanding the
foregoing, Executive may be deemed to incur a Termination of Employment if he
continues to provide services to the Company or an affiliate, whether as an
employee or an independent contractor, provided such services are not more than
20% of the average level of services performed by such Executive during the
immediately preceding 36-month period.

 

c.                                       The status of Executive as a “Specified
Employee” shall be determined in accordance with the provisions of Code Section 409A
and shall mean that as of his Separation Date, Executive is a “key employee” of
the Company or an affiliate within the meaning of Code Section 416(i),
(ii), or (iii), but determined without regard to paragraph (i)(5) thereof.  If Executive satisfies such requirements as
of a December 31st, he shall be considered a Specified Employee hereunder
during the 12-month period commencing on the immediately following April 1st.

 

2.                                       Specified Employee
Delay.  If Executive is a Specified Employee as of
his Termination of Employment, then any payment due to Executive on account of
such termination shall be made or commence as of the first business day of the
calendar month following such termination, to the extent then permitted under
Code Section 409A.  Any such payment
shall be made in the form prescribed in the Agreement.  Otherwise, payment shall be made at the time
or times and in the form prescribed under the Agreement.  Any payment required to be delayed as
provided in the Agreement, shall be made without liability for interest or
other loss of investment opportunity.

 

3.                                       Payments. Any provision of the Agreement purporting to
provide to the Board of Directors the discretionary authority to determine the
time or times of payment thereunder shall be void and of no effect.

 

4.                                       Reimbursements.  Any reimbursement due to Executive under the Agreement, including
business expense reimbursements under Section 2d thereof, shall be subject
to the following special rules:

 

 

a.                                       Executive shall claim reimbursement not later
than 90 days after the end of the calendar year in which the expense giving
rise to such claim for reimbursement is incurred.

 

b.                                      The Company shall promptly pay or reimburse
such proper expenses upon receipt of such information and supporting
documentation as it may reasonably request, but not later than December 31st
of the calendar year following the calendar year in which such expenses are
incurred.

 

c.                                       Any claim for reimbursement provided under
the Agreement shall be made no later than two years after Executive’s date of
death, at which time the Company’s obligations to reimburse under the Agreement
shall be extinguished.

 

5.                                       Continuation of
Benefits.   In lieu of the continuation of Executive’s
coverage under the Company’s welfare plans described in Sections 3(a)(ii) and
4(b) of the Agreement, the following shall apply:

 

a.                                       During the period described in Section 3(a)(ii) or
4(b), as the case may be, following Executive’s Termination of Employment,
Executive shall receive continuation coverage for herself and his spouse and
dependents under the Company’s major medical, dental and vision plans
(collectively, the “Medical Plan”), at Executive’s sole expense, consistent
with the level of coverage otherwise in effect as of his Termination Date;
provided that such coverage shall earlier cease in the event Executive, his
spouse or dependents, as the case may be, obtains alternative group coverage
during such period (the “Continuation Period”);

 

b.                                      During the Continuation Period, the Company
shall provide to Executive an amount such that, after the payment of all income
and employment taxes due with respect to such amount, there remains an amount  equal to the Company’s premium
contribution paid with respect to its active employees for the level of
coverage provided to Executive and his spouse and dependents under the Medical
Plan during such period; and

 

c.                                       Nothing contained herein shall be deemed to
offset or otherwise limit the period of continuation coverage otherwise available
to Executive and his spouse or dependents under Code Section 4980B, which
shall be deemed to commence following the end of the Continuation Period and
shall be provided at Executive’s sole expense.

 

This Compliance Addendum was executed in multiple counterparts, each
of which has been deemed an original, as of the dates set forth below, to be
effective as provided above.

 

	
  Executive:

  	
   

  	
  Isle of Capri Casinos, Inc.:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  Edmund L. Quatmann, Jr.

  	
   

  	
  By:

  	
  /s/ Ronald Burgess

  
	
   

  	
   

  	
   

  
	
  Date:
  December 22, 2008

  	
   

  	
  Title:

  	
  Senior
  Vice President, Human Resources

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:  

  	
  December 22,
  2008

  
						

 

2Exhibit 10.14

 

July 17, 2008

 

Steve Lipscomb

Chief Executive Officer
and President

WPT Enterprises, Inc.

5700 Wilshire Boulevard, Suite 350

Los Angeles, California
90035

 

Dear Steve:

 

This letter agreement
(the “Letter Agreement”) and the attached Standard Terms & Conditions
(the “STC”, and together with the Letter Agreement, the “Agreement”) set forth
the agreement between WPT Enterprises, Inc. (“Producer”) and National
Sports Programming, owner and operator of the Fox Sports Net programming
service (“FSN”) 10201 West Pico Boulevard, Building 103, Los Angeles,
California 90035, regarding the World Poker Tour television series of poker
tournaments (the “Series”).  The Letter
Agreement must be interpreted in conjunction with the STC and is incomplete in
isolation.

 

1)                                    Producer
will supply to FSN twenty-six (26) fully produced and broadcast quality sixty
(60) minute (between forty-two minutes twenty-one seconds (42:21) and
forty-four minutes twenty-one seconds (44:21) of content as determined by FSN)
episodes of the Series (the “Episodes”). 
The Episodes will highlight action from certain upcoming events of the
World Poker Tour (“Events”) presented by Producer.  As required for the production and delivery
of all Episodes, Producer will be responsible and pay for all associated costs
and shall provide the production staff and all other personnel, facilities and
services. Nothing in this Agreement shall restrict Producer from the production
or unrestricted exploitation of World Poker Tour events and programs other than
the Events and the Episodes provided for under this Agreement and FSN
acknowledges that such other programs are likely to be broadcast on other
networks during the Term of this Agreement.

 

2)                                     Producer
will submit each Episode in accordance with the requirements of the STC for
approval at least ten (10) days prior to such Episode’s initial telecast
date as scheduled by FSN (the “Approval Schedule”). Each Episode will be of
consistent quality as those produced by Producer and distributed during the
2007 Season, provided FSN acknowledges that there will be certain changes to
the presentation of the Episodes.

 

3)                                     Producer
will submit each approved Episode at least five (5) business days prior to
such Episode’s scheduled initial telecast date in accordance with the
requirements of the STC (the “Delivery Schedule”).

 

4)                                     Producer
will receive four (4) thirty-second (:30) units of commercial inventory
(the “Ad Time”) in the Initial Telecast and the Re-Telecast (as such terms are
defined below) of each Episode.  Producer
shall have the right to include billboards, in-show sponsorships and
entitlements in each Episode (“Integrations”). 
The Ad Time and Integrations are subject to the terms of the Agreement
including the STC.  FSN acknowledges that
Producer intends to include certain .net poker tutorial website (“Tutorial
Sites”) sponsorships as part of its Integrations and that the ability to
include such Integrations constitute essential components of Producer’s benefit
under this Agreement.  Notwithstanding
FSN’s approval rights set forth in Sections 1 & 2 of the STC, FSN
shall not use such approval rights to extract commercial benefit for itself
(e.g., refuse to approve an Integration unless a sponsor purchases ad time on
the network).  FSN further acknowledges
and agrees that in the event that the FSN Guidelines, requirements or policies
change so as to preclude all Tutorial Site Integrations as currently
contemplated under this Agreement, FSN’s exclusive rights during the Exclusive
Period (as defined in Section 7) shall become non-exclusive rights.  Without

 

 

limiting the foregoing,
if Producer desires to include references within the Episodes (e.g.,
Integrations) or the Ad Time to a Tutorial Site or other poker-related website
(collectively, “Websites”) then:

 

a.                                       Producer
shall notify FSN as far in advance as possible to allow FSN to review any
Websites to determine if they meet FSN’s requirements.  Producer acknowledges that all Websites must
meet FSN’s requirements, as they may change from time to time, as determined by
FSN in its sole discretion, at all times during the Broadcast Period; provided,
however, FSN agrees that such requirements shall be applied in a good faith
manner and consistent with similar network programming.

 

b.                                      Neither
any Website, the Episodes nor the Ad Time shall contain any reference, whether
written or otherwise, to any entity, party or website (including, without
limitation, any WPTE owned, controlled, affiliated and/or operated website or
any website owned by any parent or affiliated entity of WPTE or under common
control with WPTE or any third party website) that aids, abets, facilitates,
promotes, provides an advertisement for and/or enables any form of
wagering/gambling in the Territory (as defined below) or conducts or facilitates
any activity that is in violation of any United States Federal, state or local
law, rule or regulation.

 

c.                                       Any
Website appearing or referenced in any Episode or in the Ad Time shall not aid,
abet, facilitate, promote, provide an advertisement for or otherwise enable any
wagering/gambling activities and does not and will not “link,” directly or
indirectly, to or otherwise direct a viewer to any other website that enables
wagering/gambling activities in the Territory.

 

d.                                      The
Episodes and the Ad Time shall not in any way aid, abet, facilitate, promote or
otherwise enable any wagering/gambling activities (e.g., by making any
references to any online wagering/gambling site or by providing a telephone
number to a wagering/gambling business, etc.).

 

5)                                     FSN
will use commercially reasonable efforts to clear the Initial Telecast, the
Re-Telecast and the Additional Telecasts of each Episode in a minimum of 50
million homes (the “Clearance Threshold”) in accordance with the terms of the
STC. As used in this Agreement, “commercially reasonable efforts” shall not
mean that FSN is relieved of its clearance or time placement obligations to
Producer in order to take commercial advantage of the clearance and time slots
anticipated for airing of the Episodes (e.g., deal shopping).

 

6)                                      FSN
will use commercially reasonable efforts to initially clear each Episode (the “Initial
Telecast”) on a Sunday between 6:00 PM and 10:00 PM (local time) (the “Timeslot”)
and a repeat clearance within seven (7) days of the Initial Telecast (the “Re-Telecast”)
in accordance with the terms of the STC. 
In addition, FSN will use commercially reasonable efforts to distribute
each Episode at least two (2) additional times within one (1) year of
the Initial Telecast (the “Additional Telecasts”) in accordance with the terms
of the STC.

 

7)                                      Notwithstanding
anything to the contrary set forth in the STC, Producer shall not be required
to pay a distribution fee for distribution of the Series.

 

8)                                      FSN is hereby granted the following Telecast (as
defined in the STC) rights:

 

Exclusive rights to each Episode in the United States and its
territories, possessions, commonwealths and military installations (the “Territory”), from the period beginning the
date of this Agreement and ending on the earlier of (a) the one year
anniversary of the Initial Telecast of such Episode on the FSN programming
service and (b) the date fifteen (15) months after Producer’s delivery of
such approved Episode to FSN  (the “Exclusive
Period”) and the non-exclusive rights ending on the earlier of (i) the
three year anniversary of the Initial Telecast of the final Episode on the FSN
programming service and (ii) the date thirty-nine (39) months after
Producer’s delivery of the final approved Episode to FSN (including the
Exclusive Period, the “Broadcast Period”). Notwithstanding anything in this
Agreement to the contrary, Producer shall

 

 

have the right to distribute separate and distinct Spanish-language
productions (i.e., unique footage and not just dubs of the Episodes into
Spanish) of action from the Events in the Territory via Telecast and otherwise
beginning two (2) weeks after the Initial Telecast of the final Episode on
the FSN programming service.

 

In addition to FSN’s Telecast rights, FSN may distribute portions of the
Episodes not to exceed two (2) minutes for any single clip or three (3) minutes
in the aggregate from any Episode online without territorial restriction solely
for purposes of promoting FSN’s distribution of the Episodes on the Fox Sports
Net programming service.  For avoidance
of doubt, except as set forth in the preceding sentence FSN shall not have the
right to distribute the Episodes or portions thereof online without Producer’s
consent.

 

Producer reserves all rights not granted to FSN herein (e.g., online and
wireless distribution) within and outside the Territory.  Notwithstanding the foregoing, in addition to
Producer’s restrictions preventing Telecast of the Episodes during the
Exclusive Period, Producer agrees that it will not distribute any Episode in
its entirety (or substantially in its entirety) in the Territory by any means
of distribution including, without limitation, Telecast, online or wireless
distribution, at any time prior to seven (7) days after FSN’s initial
distribution of such Episode.  The foregoing
sentence shall not prevent Producer from distributing portions of such Episodes
via means of distribution other than Telecast.

 

9)                                      The
parties shall negotiate for future rights to the Series during the period
from March 1, 2009 to May 15, 2009 (the “Negotiation Period”) in
accordance with the requirements of the STC.

 

ACKNOWLEDGED AND AGREED,
as of the effective date of this Agreement specified above.

 

	
  PRODUCER

  	
   

  	
  NATIONAL
  SPORTS PROGRAMMING

  
	
   

  	
   

  	
   

  	
  owner and operator of
  the Fox Sports Net programming service

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Adam Pliska

  	
   

  	
  By:

  	
  /s/ George Greenberg

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  General Counsel

  	
   

  	
  Title:

  	
  EVP
  Programming & Production

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  July 17, 2008

  	
   

  	
  Date:

  	
  July 17, 2008

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