Document:

Exhibit 10.1(A)

 

PARCEL II

 

EXCEPTION 3 (B)H

 

C

 

Levee Building

 

	
  AMENDMENT OF LEASE

  	
   

  	
  UNITED STATES OF
  AMERICA

  
	
  LESSOR: COHN REALTY
  CO., INC.

  	
   

  	
  STATE OF LOUISIANA

  
	
  LESSOR: JAZZ
  ENTERPRISES, INC.

  	
   

  	
  PARISM OF EAST BATON
  ROUGH

  

 

BE IT KNOWN, on the dates
indicated below, before the undersigned Notaries Public, duly commissioned and
qualified in and for their respective Parishes, State of Louisiana, therein
residing, and in the presence of the undersigned competent witnesses,
personally came and appeared.

 

COHN REALTY CO., INC., a
Louisiana corporation, domiciled in the Parish of East Baton Rouge, herein
represented by its duly authorised and empowered President, DR. Isidore Cohn, Jr.,
hereunto duly authorised by a resolution adopted by the unanimous consent of
the Board of Directors of such corporation, a certified copy of which is
attached hereto and made a part hereof (hereinafter called “LESSOR”); and

 

JAZZ ENTERPRISES, INC., a
Louisiana corporation, domiciled in the Parish of East Baton Rouge herein
represented by its duly authorised and empowered Vice President, Mark A.
Bradley, hereunto duly authorised by resolution adopted by the Board of
Directors of such corporation, a certified copy of which is attached hereto and
made a part hereof (hereinafter called “LESSEE”).

 

WHEREAS, the LESSOR
entered into a lease between LESSOR and Paul H. Due’, Richard J. Dodson, John
W. decravelles, David W. Robinson and Chastar John Caskey, affecting Lot 1,
Square “6” or “B”, Beauragard Town, East Baton Rouge Parish, Louisiana, recorded
on October 12, 1985, as ORIG 388 BNDL 10507 (the “Lease”); and

 

1

 

WHEREAS, Jass Enterprises, Inc.
became the tenant under the Lease by virtue of an Assignment of Lease dated as
of August 5, 1993; and

 

WHEREAS, LESSOR and
LESSEE have agreed to modify the terms of the Lease as provided herein.

 

NOW, THEREFORE, the
parties hereto hereby enter into this Amendment of Lease to modify in part the
terms and conditions of the Lease, as follows:

 

1. Paragraph 5(b) of
the Lease be and is hereby amended in its entirety as follows:

 

“5. (b) There shall
be a reevaluation and increase of the basic annual rent due hereunder as of
august 1 of each 5th year following August 1, 1988 (“Base Date”), The
first amended reevaluation and increase of the basic annual rental due
hereunder shall be as of August 1, 1993, five years after the Base Date
and thereafter a reevaluation and increase shall be as of August 1 of each
fifth year thereafter, all as set forth on Exhibit c attached
hereto. This reevaluation and increase shall be based on the Consumer Price
Index (“CPI”), which is the average of “all items” shown on the “U.S. City
average for urban wage earners and clerical workers (including single workers)
all items, groups, subgroups, and special groups of items” as promulgated by
the Bureau of the Labor Statistics of the United States Department of Labor.
For each five-year period beginning August 1, 1993, LESSEE shall pay
LESSOR, in addition to the basic annual rent for the preceding five-year
period, In amount equal to the basic annual rent for the preceding five-year
period, multiplied by the percentage of increase by which the CPI for the month
of May immediately preceding the beginning of each fifth calendar year
exceeds the CPI for the month of May immediately preceding the
commencement date of the preceding five-year period (the “Additional Rent for
the Subject Five-year Period”); provided that in no event shall the adjusted
basic annual rent for a new five-year period exceed 125% of the basic annual
rent for the preceding five-year period. Accordingly, from and after August 1,
1993, the basic annual rent due for each five-year period shall be the sum of
the

 

2

 

basic annual rent for the
preceding five-year period plus the Additional Rent for the Subject Five-Year
period. If the Nay CPI is not available as of the beginning of any five-year
period, LESSEE shall in good faith estimate the CPI and pay rental based on
that estimate until the CPI is available, at which time the rental for the
remainder of that five-year period shall be permanently adjusted and any
differences in amounts paid based on the estimated CPI shall be promptly paid
by LESSEE or refunded by LESSOR. No change in the CPI shall reduce the basic
annual rent for the preceding five-year period. In the event that the Bureau of
Labor Statistics shall change the base period (now 1982-84) and commence a new
series of index numbers after this Lease commences, then the new index numbers
may be used provided the index number for the month prior to the commencement
date of this Lease is adjusted to reflect its true relationship with the index
numbers under the new base period. For example, if the Bureau of Labor Statistics
would have determined to change the base year and commence a new series of
index numbers starting at 100 when the consumer price index under the 1982-84
base year (Illegible) 300, then the true relationship between the old index
numbers and the new index numbers would be that the old series must be divided
by three (3) in order to be used in the same computation with the new
index numbers.

 

In the event that the CPI
(or successor or substitute index) is not available, a reliable governmental or
other non-partisan publication evaluating the information theretofore used in
determining the CPI shall be used in Lieu of such CPI. Attached hereto as Exhibit A
is an example of how the calculation has been made for the five-year period
beginning August 1, 1993 and ending July 31, 1985, this example is
provided as an illustration of methodology only.

 

2. Paragraph 27
of the Lease be and is hereby amended to the effect that:

 

a   Any demand or notice which is
required to be given LESSEE under this paragraph 27, must also be given to the
guarantor of this Lease, as amended, and to any mortgages of LESSEE’S interests
under the Lease, as amended, and the guarantor as well as any such mortgages
shall also have the right to cure any default hereunder

 

3

 

within the same grace
period set forth in this paragraph 27. LESSOR acknowledges that as of the date
of this Amendment of Lease, Argosy Gaming Company, whose address is 219 Pissa
Street, Alton, Illinois 62002-6232 is (Illegible) guarantor of the Lease, as
amended. Upon receipt of notice from LESSEE that it has mortgaged its interests
under the Lease, as amended, in which the name and mailing address (with a
municipal street number) of the mortgages is set forth, LESSOR shall be bound
to give notice or make demand on such mortgages.

 

b.      If the guarantor of this Lease, as amended, or a
mortgages of LESSEE’S interests hereunder shall acquire through voluntary
conveyuance or foreclosure, LESSEE’S rights hereunder, so long as there is no
default hereunder, the successor in interest of LESSEE’S rights hereunder shall
be recognized by LESSOR as the LESSEE under the Lease, as amended, for the
remainder of the term hereof and any extension thereof, subject to the same
provisions and conditions hereof, and as such, the successor in interest shall
thereupon become entitled to all of the rights and benefits of the LESSEE
hereunder, subject of course to the obligations, liabilities, covenants and
agreements of the LESSEE. Upon request, LESSOR shall execute an instrument in
appropriate recordable form to give effect to the rights of the successor in
interest hereunder, provided that the execution of such instrument shall not be
a condition to the exercise of the rights of such successor in interest.”

 

3. In all other
respects, the provisions of the Lease, as amended hereby, shall remain in full
force and effect.

 

4

 

THUS DONE AND PASSED on
this 4th day of August, 1993, in the City of New Orieans, Louisians, in the
presence of the undersigned competent witnesses and in the presence of the
undersigned Notary Public, after a reading of the whole.

 

	
  WITNESSES:

  	
   

  	
  COHN REALTY CO., INC.

  
	
   

  	
   

  	
   

  
	
  /s/ Laurie H. Zimmer

  	
   

  	
  By:

  	
  /s/ Dr. Isidore
  Cohn, Jr.

  
	
   

  	
   

  	
   

  	
  Dr. Isidore Cohn, Jr.

  
	
   

  	
   

  	
   

  	
  President

  
	
  /s/ Illegible

  	
   

  	
   

  

 

	
   

  	
  /s/ Illegible

  	
   

  
	
   

  	
  NOTARY PUBLIC

  	
   

  

 

THUS DONE AND PASSED on
this 5th day of August, 1993, in the City of Baton
Rouge, Louisians, in the presence of the undersigned competent witnesses and in
the presence of the undersigned Notary Public, after a reading of the whole.

 

	
  WITNESSES:

  	
   

  	
  JAZZ ENTERPRISES, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Illegible

  	
   

  	
  By:

  	
  /s/ Mark R. Bradley

  
	
   

  	
   

  	
   

  	
  Mark R. Bradley

  
	
   

  	
   

  	
   

  	
  Vice President

  
	
  /s/ Illegible

  	
   

  	
   

  

 

	
   

  	
  /s/ Illegible

  	
   

  
	
   

  	
  NOTARY PUBLIC

  	
   

  

 

5

 

LEVEE
BLDG

 

Amendment
to Levee Building Ground Lease, Section 5(b), Page 2

 

Beginning on August 1,
1993, and every fifth year thereafter, the reevaluation and increase of the
annual rent shall be computed based on the Consumer Price Index (“CPI”), which
is the average of “all items” shown on the “U.S. City average for urban wage
earners and clerical workers (including single workers) all items, groups,
sub-groups and special groups of items” as promulgated by the Bureau of Labor
Statistics of the United States Department of Labor.

 

The annual rent for each
five year period shall be computed by multiplying the then current annual rent
by the ratio of the CPI for May of the current year divided by the CPI for
May of the immediately preceding five period, but in no case shall the
ratio thus computed exceed 1.25 (25% increase). For example, using the current
annual rent for the Beauregard Building of $14,175.36 as of July 31, 1993,
the new annual rent for the next five year period shall computed as follows:

 

	
  CPI for May 1993

  	
   

  	
  144.2

  	
   

  
	
  CPI for May 1988

  	
   

  	
  117.5

  	
   

  

 

CPI(May 1993)/CPI(May 1988)
= 144.2/117.5 = 1.2272 < 1.25, OK

Current
annual rent, Levee Building = $14,175.36

New
annual rent = $14,175.36 x 1.2272 = $17,396.00Exhibit 10.2

 

AMENDED
AND RESTATED

 

LEASE
AGREEMENT

 

This Amended and Restated
Lease Agreement is entered into and made as of the 20th day of January, 1995,
between GREENVILLE MARINE CORPORATION with its principal place of business at P.O. Box
539, Greenville, Washington County, Mississippi (hereinafter referred to as “Lessor”),
and RAINBOW ENTERTAINMENT, INC., doing business at 1231 South Main, Greenville,
Mississippi (hereinafter referred to as “Lessee”). The parties hereby agree as
follows:

 

RECITALS

 

WHEREAS, Lessor is the
owner of that certain parcel of real property described below and Lessor
desires to lease the property to Lessee for the development and use of property
as a casino and gaming facility, with possible development of a hotel, motel,
restaurant and/or related facilities;

 

WHEREAS, Lessee desires
to develop and construct a casino and gaming facility, with possible
development of a hotel, motel, restaurant and related facilities as an amenity
to commercial developments in and about the area of Lessor’s property; and

 

WHEREAS, the parties
entered into a Lease Agreement dated April 27, 1993, as amended by a Lease
Amendment dated August 25, 1993 and a Second Lease Amendment dated July 12
and 15, 1994 (the “Second Lease Amendment”), which the parties desire to amend
and restate in its entirety.

 

Section 1.  Description of Property.

 

Lessor hereby leases to
Lessee the Premises owned by Lessor legally described on Exhibit A hereto,
consisting of certain existing buildings and site improvements, hereinafter
referred to as “the Premises.” A plat and site plan of the Premises is attached
hereto as Exhibit A and incorporated herein by reference. There is
excepted from this Lease that certain parcel of said property shaded in yellow
on the attached plat and described in note 1 of said plat. Such parcel is
excepted from this Lease and Lessor agrees during the term of this Lease not to
lease or let said property to any other person, firm or corporation.

 

Section 2.  Purpose.

 

2.1. Lessee shall use the
Premises for the purposes of developing, constructing and operating a gaming
and casino riverboat or barge facility including parking and related
improvements. Lessee may also develop, construct and operate one

 

 

or more of the following
on the Premises in its discretion: hotel, motel, restaurant, business office,
and entertainment facilities for performing arts and music.

 

2.2. Lessee shall have
the sole and absolute discretion to determine the design, materials, method of
construction, location and all other matters with respect to development of the
Premises, construction of new improvements and renovation of existing
improvements; provided that Lessee shall keep the Lessor’s interest in the
Premises free of mechanic’s liens and shall materially comply with all
applicable laws, statutes and regulations.

 

Section 3.  Lease Term.

 

The initial term of this
Lease shall be for a period of five (5) years commencing July 1,
1994, through June 30, 1999. Additionally, Lessee may renew this Lease for
nine (9) additional periods of five (5) years each by giving Lessor
written notice of renewal at least twelve (12) months prior to expiration of
the initial or any renewal term.

 

Section 4.  Rental.

 

4.1. The monthly rental
for the first year of the initial term shall be the sum of $10,000.00 per month
paid in advance as “Base Rent” in addition to the “Base Percentage Rent” set
forth below. Beginning July 1, 1995, the Base Rent, paid in advance, shall
be $30,000.00 per month, and shall remain the Base Rent for the balance of the five
(5) year initial term. When Lessee commences gaming and casino operations
to the general public, in addition to the above monthly Base Rent provided
herein, Lessee agrees to pay to Lessor a monthly Base Percentage Rent of a sum
of money equal to two percent (2%) of the total Gross Gaming Revenues as
hereinafter defined on a monthly basis with credit being given for the Base
Rent which shall continue to be paid in advance on the first day of each month
so that Lessor shall receive a minimum Base Rent as set forth above even if the
monthly Percentage Rent shall be calculated to be less than the minimum monthly
Base Rent set forth herein. It is the intent of the parties that all sums paid
monthly in advance as Base Rent be included in the Base Percentage Rent.
Example: Base Rent of $10,000.00 is to be paid in advance on the first day of
each month. When the Base Percentage Rent is paid as set forth herein Lessee
shall receive credit for the Base Rent against the Base Percentage Rent. If in
this example the Base Percentage Rent is calculated to be $50,000.00 then
Lessee would receive a credit of $10,000.00 towards the Base Percentage Rent so
that the sum due to Lessor would be $40,000.00. In any event, Lessor would
always receive the Base Rent regardless of whether the Base Percentage Rent
would result in any additional payment to Lessor.

 

2

 

4.2. Lessee further
agrees to pay Lessor, in addition to the Base Percentage Rent, a sum equal to
eight (8%) percent of the amount by which annual Gross Gaming Revenues exceeds
$36,575,000.00 which shall be called the Secondary Percentage Rent. At such
time as Gross Gaming Revenues exceed $36,575,000.00 in any year, in addition to
the Base Percentage Rent, the Secondary Percentage Rent shall likewise be due.
The Base Percentage Rent and/or Secondary Percentage Rent with respect to a
month shall be paid within five (5) days after Lessee files its report of
Gross Gaming Revenue for such month with the Mississippi State Tax Commission.
The annual period used to determine the Secondary Percentage Rent shall
commence on the first day of the month after which gaming operations begin. As
to the Secondary Percentage Rent, the intent is as follows: Rainbow will pay to
Lessor eight percent (8%) of the total annual Gross Gaming Revenues over
$36,575,000.00 when annual gross revenues exceed $36,575,000.00 in any twelve
(12) month period. Once Gross Gaming Revenues exceed $36,575,000.00 in any
twelve (12) month period, the Secondary Percentage Rent is to be paid
monthly at the same time that the Base Percentage Rent is due. Example: if at
the end of the ninth month in any twelve (12) month period of the lease,
gross gaming revenues are $36,575,000.00 and at the end of the next month (the
tenth month), the Gross Gaming Revenues are $36,675,000.00, then the Secondary
Percentage Rent for the tenth month would be $8,000.00 ($100,000.00 x .08). The
Secondary Percentage Rent would then be calculated accordingly in months eleven
and twelve and then a new twelve (12) month period would begin.

 

4.3. If Lessee exercises
its options for renewal, the minimum monthly Base Rent, Base Percentage Rent
and Secondary Percentage Rent for the first renewal term, July 1, 1999,
through June 30, 2004, will be the same as for the last four (4) years
of the initial term of the lease. The minimum Base Rent after the first renewal
term and for all succeeding terms shall be $50,000.00 per month and the Base
Percentage Rent shall be a sum of money equal to four percent (4%) of the total
Gross Gaming Revenues as hereinafter defined in addition to the eight percent
(8%) Secondary Percentage Rent of annual gross revenues above $36,575,000.00
calculated as set forth above and payable as set forth above.

 

4.4. The term “Gross Gaming
Revenues” as used herein shall mean the total amount in dollars of Lessee’s
actual winnings from gaming operations as reported by Lessee to the Mississippi
State Tax Commission or any successor state authority. However, the term “Gross
Gaming Revenues” shall not include any payments, receipts or proceeds from the
sales of any related operations, goods and products which may be sold for the
convenience of Lessee’s customers on the Premises.

 

3

 

4.5. Lessee shall
maintain upon the Premises an accurate set of books and records of all Gross
Gaming Revenues and such records shall be open to inspection and audit by
Lessor and its agents at all reasonable times during ordinary business hours to
the extent allowable under Mississippi Law.

 

Section 5.  Sale, Assignment and Sublease.

 

5.1. Subject to
Sections 5.2 and 5.3 below, Lessee may assign this Lease Agreement or
sublet all or a portion of the Premises during the term of this Lease Agreement
only after first obtaining prior written consent from Lessor which consent may
not be unreasonably withheld. However, the making of any sublease shall not
release Rainbow Entertainment, Inc. from, or otherwise affect in any
manner, any of Lessee’s obligations hereunder. Except as provided in Section 12
below, neither this Lease nor the leasehold estate of Lessee nor any interest
of Lessee hereunder in the Premises or in the buildings or improvements thereon
shall be subject to involuntary assignment, transfer, or sale, or to
assignment, transfer or sale, by operation of law in any manner whatsoever, and
any such attempted involuntary assignment, transfer or sale shall be void and
of no effect and shall, at the option of Lessor, terminate this Lease.

 

5.2. Lessor hereby consents
to the assignment of all of Lessee’s rights, title and interest in this Lease
to Greenville Riverboat LLC, a Mississippi limited liability company at any
time during the term hereof.

 

5.3. Lessee shall have
the right to sublease up to two and one-half (2 1/2) acres of the Premises (the
“Subparcel”) to WIMAR TAHOE CORPORATION (“Subtenant”) or any affiliate of Wimar
Tahoe Corporation on such terms and conditions as Lessee determines are
acceptable in its reasonable business judgment (the “Sublease”). The Subtenant
shall have the right to develop, construct and operate a motel or hotel
(including a restaurant, bar and other related facilities) on the Subparcel;
provided, however, the Subparcel will not be utilized in any way for gaming
purposes or operations, except that which is operated at the Premises by the
Lessee (or the Lessor and his assigns if the lease is terminated). The motel or
hotel shall be constructed and maintained as a full-service quality facility
similar to hotels and motels operated under nationally-known franchises which
charge the same rates as Subtenant. Subtenant shall agree to keep the hotel in
good condition and repair, excepting ordinary wear and tear, and such covenant
shall be enforceable by Lessor. Subtenant and Lessee shall share parking
availability on the Premises as agreed in the Sublease. In the event that this
Lease is terminated for any reason, Lessor agrees not to disturb, terminate or
alter in any manner the tenancy of the Subtenant under the Sublease, so long as
the Subtenant attorns to the Lessor. Upon Subtenant agreeing to such
attornment, Subtenant’s tenancy shall not be disturbed so long as it complies
with all the terms and conditions of the Sublease; provided that the

 

4

 

Subtenant’s rent payable
to Lessor in such event shall be $6,250.00 per month, increased annually from
the date hereof by a percentage equal to the increase, if any, in the Consumer
Price Index, All Urban Consumers, or the sum actually due under the Sublease,
whichever is greater. Subtenant shall have the right to grant a mortgage on, or
assign under a deed of trust, all of the Subtenant’s sublease interest in the
Subparcel upon the terms and conditions contained in Section 12.

 

5.4. At Lessee’s request and
expense, Lessor shall fully cooperate in a subdivision of the Premises to make
a separate parcel for the hotel.

 

5.5. The Lessee hereby
covenants that the Sublease shall not contain any provision which will restrict
or prohibit the conduct of a gaming operation by Lessee (or Lessor if the Lease
if terminated) on the Premises.

 

Section 6.  Sewer, Utilities and Access.

 

Lessee shall solely be
responsible for all utility services used or consumed by Lessee on the Premises
and such utility services shall be in the name of Lessee and Lessee shall
solely be liable for the payment of all utility services it receives. Lessee
shall also be responsible for utilities consumed in order to provide reasonable
security systems for the existing buildings located on the Premises. Lessor
agrees to cooperate with Lessee in obtaining any and all utility services.
Lessor agrees not to at any time interfere with the right of Lessee and its
employees, agents, customers and invitees to have full and complete access to
the Premises.

 

Section 7.  Taxes.

 

Lessor shall pay the 1994
ad valorem taxes on said property which amount shall be the base ad valorem tax
amount. Lessee shall be responsible for the ad valorem taxes on the Premises
for 1995 and thereafter during the term of the Lease. Lessee shall be entitled
to a credit against the Base Rent and/or Base Percentage Rent each year equal
to the base ad valorem tax amount of $2,634.33.

 

Section 8.  Insurance.

 

Lessee shall carry fire
and all risk insurance covering the improvements located on the Premises for
not less than the cost of construction which insurance shall be issued by a
reliable insurance company, and Lessor shall be named as an additional loss
payee to the extent of its interest in any improvements. Lessee shall obtain liability
insurance in the amount of $1,000,000.00 for each accident or occurrence on the
Premises (with umbrella coverage with limits of not less than $10,000,000.00)
and $50,000.00 for property damage, and Lessor shall be named as an additional
insured under such policies.

 

5

 

Lessee shall furnish to
Lessor copies of all insurance policies required to be maintained by Lessee
hereunder or under the rules of the State Gaming Commission.

 

Section 9.  Condemnation.

 

This Lease Agreement
shall terminate in the event of a total condemnation of the Premises by a
government agency. Partial condemnation of Premises shall only terminate the
Lease Agreement at the option of the Lessee, but if Lessee elects to continue
this Lease Agreement, Lessee shall be entitled to a partial abatement of rent
proportionate to the loss of the use of Premises suffered by Lessee. All
compensation awarded for any taking of the Premises or any interest thereon
shall be shared by Lessor and Lessee as follows: (i) Lessor shall be
entitled to receive such portion of the award as shall represent compensation
for vacant land and, if they are still located thereon at such time, any
compensation awarded for the two buildings and any other improvements which
currently exist on the Premises; (ii) Lessee shall be entitled to the
portion of the award for the then fair market value of the improvements made by
Lessee, the fair market value of Lessee’s leasehold interest, and any award for
the damage or loss of Lessee’s business.

 

Section 10.  Warranty of Title.

 

Lessor covenants that
Lessor owns the Premises in fee simple and has full right to make and enter
into this Lease that Lessee shall have quiet and peaceable possession of the
Premises during the term of this Lease Agreement and any renewals thereof.
Lessor shall obtain a nondisturbance agreement from any person or entity
holding a mortgage or deed of trust on the Premises for the benefit of Lessee
in form reasonably acceptable to Lessee, in exchange for which Lessee shall
agree to attorn to such mortgagee.

 

Section 11.  Government Approval.

 

Lessor, at Lessee’s sole
cost and expense, shall assist in obtaining all government approvals, including
Zoning, Levee Board, Corps of Engineers and City of Greenville in order for
Lessee to conduct gaming operations and the other business operations
contemplated herein on the Premises. Lessor agrees to cooperate fully with
Lessee in obtaining any and all governmental approvals for Lessee to conduct
its gaming operations and other business operations on the Premises.

 

Section 12.  Encumbrances of Lessee’s Leasehold
Interest.

 

12.1. On one or more
occasions without Lessor’s consent, Lessee and/or Subtenant may mortgage, grant
a deed of trust or otherwise encumber Lessee’s or Subtenant’s leasehold estate
in the Premises under one or more leasehold mortgages or deeds of trust and
assign this Lease as security; provided that

 

6

 

the proceeds of the
initial mortgage granted by Lessee with respect to the Premises must be used
exclusively to improve the Premises and the initial mortgage granted by
Subtenant with respect to the Subparcel must be used exclusively to improve the
Subparcel. The proceeds from any refinancing of such mortgages may be used by
Lessee or Subtenant for any purpose. For purposes of this Section 12, the
term “mortgages” includes deeds of trust, and the term “leasehold mortgagee”
shall mean the beneficiary of a deed of trust or mortgage with respect to the
Lease and/or the Sublease.

 

12.2. If Lessee mortgages
its leasehold estate in the Premises or Subtenant mortgages its subleasehold
estate in the Premises, Lessee shall give Lessor notice of such mortgage within
thirty (30) days after the mortgage is executed and such notice shall
include the name and address of the mortgagee. Lessor shall promptly upon
notice of the communication purporting to constitute the notice acknowledge by
an instrument in recordable form receipt of such communication as constituting
the notice required herein.

 

12.3. Lessor upon
providing Lessee with any notice of default under this Lease, termination of
this Lease or matter on which Lessor may predicate or claim a default shall at
the same time provide copies of such notice to every leasehold mortgagee of
which Lessor has been given written notice. No such notice shall have been
deemed to be duly given unless a copy thereof has been provided to every
leasehold mortgagee of which Lessor has been given written notice. After such
notice has been given to a leasehold mortgagee, such leasehold mortgagee shall
have the same period after receiving such notice for remedying any default or
causing the same to be remedied as is given Lessee under the Lease.

 

12.4. Any provision
contained in this Lease to the contrary notwithstanding, if any default shall
occur which entitles Lessor to terminate this Lease, Lessor shall have no right
to terminate this Lease unless following the expiration of the period of time
given Lessee to cure such default Lessor shall notify every leasehold mortgagee
of Lessor’s intent to so terminate at least thirty (30) days in advance of
the proposed effective date of such termination if such default is capable of
being cured by the payment of money and at least forty-five (45) days in
advance of the proposed effective date of termination if such default is not
capable of being cured by payment of money. The provisions of Subsection 12.6
below shall apply if during such thirty or forty-five day termination notice
period any leasehold mortgagee shall (1) notify Lessor of such leasehold
mortgagee’s desire that the Lease not terminate; (2) pay or cause to be
paid all Base Rent, Base Percentage Rent, Secondary Percentage Rent or other
payments then due or in arrears as specified in the termination notice to such
leasehold mortgagee and which may become due during the thirty or forty-five
day period; and (3) comply or in good faith, with reasonable

 

7

 

diligence and continuity,
commence to comply with all nonmonetary requirements of this Lease when in
default and reasonably susceptible of being complied with by such leasehold
mortgagee, provided however, that such leasehold mortgagee shall not be
required to cure or commence to cure any default consisting of Lessee’s failure
to satisfy and discharge any lien, charge or encumbrance against the Lessee’s
interest in the Lease or the Premises junior in priority to the lien of the
mortgage held by such leasehold mortgagee.

 

12.5. If Lessor shall terminate
this Lease by reason of any default of Lessee, and the leasehold mortgagee
shall proceed in the manner provided for by Subsection 12.4 of this section,
the specified date of termination of the Lease as fixed by Lessor in its
termination notice shall be extended for a period of six (6) months
provided that such leasehold mortgagee shall, during such six (6) month
period: (1) pay or cause to be paid the Base Rent, Base Percentage Rent,
Secondary Percentage Rent and other monetary obligations attendant under this
Lease (including without limitation the payment of premiums for the insurance
required under Section 8, below) as the same become due and continue its
good faith efforts to perform all of Lessee’s obligations under this Lease
excepting (A) obligations of Lessee to satisfy or otherwise discharge any
lien, charge or encumbrance against Lessee’s interest in this Lease or the
Premises junior in priority to the lien on the mortgage held by leasehold
mortgagee and (B) nonmonetary obligations then in default and not
reasonably susceptible to being cured by leasehold mortgagee, and (2) if
not enjoined or stayed, take steps to acquire or sell Lessee’s interest in this
Lease by foreclosure of the leasehold mortgage or other appropriate means and
prosecute the same to completion with due diligence.

 

12.6. If at the end of
such six (6) month period such leasehold mortgagee is complying with
Subsection 12.5 this Lease shall not then terminate and the term for completion
of such leasehold mortgagee of its proceedings to foreclose its mortgage shall
continue as long as such leasehold mortgagee is enjoined or stayed from
foreclosing and thereafter so long as such leasehold mortgagee proceeds to
complete steps to acquire or sell Lessee’s interest in this Lease by foreclosure
of the leasehold mortgage or upon other appropriate means by reasonable
diligence and continuity. Nothing in this subsection however shall be construed
to extend the Lease beyond the original Term thereof as extended by a renewal
option properly exercised by Lessee or leasehold mortgagee nor to require
leasehold mortgagee to continue such foreclosure proceedings after the default
has been cured. If the default shall be cured and the leasehold mortgagee shall
discontinue foreclosure proceedings, this Lease shall continue in full force
and effect as if Lessee had not defaulted under the Lease.

 

8

 

12.7. If the leasehold
mortgagee is complying with Subsection 12.5, upon the acquisition of Lessee’s
estate herein by such leasehold mortgagee or its designee or any purchaser at a
foreclosure sale or otherwise this Lease shall continue in full force and
effect as if Lessee had not defaulted under this Lease.

 

12.8. For purposes of
this Lease the making of a leasehold mortgage shall not be deemed to constitute
an assignment or transfer of this Lease nor shall any leasehold mortgagee, as
such, be deemed to be an assignee or transferee of this Lease. Furthermore, the
making of a leasehold mortgage shall not be deemed to require such leasehold
mortgagee, as such, to assume the performance of any of the terms, covenants or
conditions on the part of the Lessee to be performed hereunder, but the
purchaser at any sale of this Lease in any proceedings for the foreclosure of
any leasehold mortgage or the assignee or transferee of this Lease under any
instrument of assignment or transfer in lieu of foreclosure of any leasehold
mortgage shall be deemed to be an assignee or transferee and shall be deemed to
have agreed to perform all the terms, covenants and conditions on the part of
the Lessee to be performed hereunder from and after the date of such purchase
and assignment but only so long as such purchaser or assignee is the owner of
the leasehold estate.

 

12.9. Any leasehold
mortgagee or other acquirer of the leasehold estate of Lessee pursuant to
foreclosure, assignment in lieu of foreclosure or other proceedings may, upon
acquiring Lessee’s leasehold estate, without further consent of Lessor, sell
and assign the leasehold estate on such terms and to such persons and
organizations as are acceptable to such mortgagee or acquirer and thereafter be
relieved of all obligations under this Lease; provided that such assignee
delivers to Lessor its written agreement to be bound by all the provisions of
this Lease and such assignee has a “Net Worth” equal to or in excess of Lessee’s
as of the date that Lessee commences gaming operations increased by a
percentage equal to the increase, if any, in the Consumer Price Index, All
Urban Consumers, for the period between the date hereof and the date of the
proposed transfer. The term “Net Worth” shall mean the excess of assets over
liabilities as shown on an entity’s balance sheet prepared in accordance with
sound accounting principles.

 

12.10. Notwithstanding
any other provision of this Lease, any sale of this Lease in any proceeding for
the foreclosure or any leasehold mortgage or assignment or transfer of this
Lease in lieu of foreclosure of any leasehold mortgage shall be deemed to be a
permitted transfer or assignment of this Lease and Lessor hereby consents to
such assignment and transfer. Lessor agrees to execute such additional
documents, agreements and instruments as may reasonably be required to
encourage or facilitate a leasehold mortgage.

 

9

 

Section 13.  Improvements.

 

Upon expiration or
termination of this Lease, all improvements to the Premises (including site
improvements, buildings, and non-trade fixtures) shall remain with the Premises
and become the property of the Lessor except equipment (including without
limitation gaming equipment), furniture and furnishings, trade fixtures and any
vessel, boat or barge (including without limitation any dam, supporting
structure or moorings to the extent Lessee desires to remove such items), all
of which shall remain the property of Lessee and may be removed by Lessee. Upon
removal of such property, Lessee shall repair any damage to the Premises caused
by the removal. If Lessee desires to use the existing structures on the
Premises, the Lessee shall have the right to make alterations, improvements and
changes to the structures now located on said Premises as provided in Section 2.2.
All alterations, improvements and changes or additions or fixtures of a
permanent nature made to any such structures shall be the property of Lessor
and Lessee shall only have a leasehold interest therein; provided, however,
Lessee may at any time remove from the Premises any alteration, improvement,
change or addition, including fixtures, if such removal may be made without
damage to the structure or to the Premises. Lessee shall raze and remove the
office building and shop building located on the Premises as part of its site
preparation, and prior to such removal Lessee shall pay to Lessor $112,500 for
the office building and $250,000 for the shop building. Lessor shall have
reasonable access to the Premises to remove the overhead gantry crane and
fixtures owned by Lessor and located on the Premises.

 

Section 14.  Sheriff’s Use.

 

Lessor and Lessee hereby
consent to the use of the shop building on the Premises by the Washington
County Sheriff’s Rescue Unit until such time as Lessee needs use of this part
of the Premises. Attached as Exhibit “B” is a letter dated July 6,
1994, from the Washington County Sheriff’s Department setting forth the terms
and conditions of the use of the property by the rescue unit. This letter is
incorporated for all purposes herein. Lessee agrees to give seven (7) days
notice to vacate the Premises to the rescue unit at such time as Lessee needs
possession of this portion of the Premises.

 

Section 15.  Licenses.

 

15.1. Both Lessor and
Lessee shall use their best efforts to secure the necessary approval and
licenses for Lessee to operate a gaming facility at the Premises, including
approvals and licenses from the Army Corps of Engineers and local building
authorities. If Lessor is not approved by the Gaming Commission and Lessor does
not obtain such approval at its sole expense within ninety (90) days of
such disapproval by the Gaming Commission, then Lessee shall have the option to
immediately

 

10

 

terminate this Lease and
no rent shall be due for the period following the Gaming Commissions initial
disapproval. If Lessee fails to obtain the approval of the Gaming Commission
for operation of a casino/gaming facility, Lessee at its option may terminate
this Lease by giving thirty (30) days prior written notice of termination to
Lessor.

 

15.2. Lessee represents
to Lessor that Lessee will use due diligence to secure site approval from the
State Gaming Commission together with its permit to improve and utilize the
property for gaming purposes from the Corp of Engineers.

 

15.3. Lessee shall
commence substantial improvements to the Premises within sixty (60) days
after it receives a 404 permit from the Army Corps of Engineers and necessary
building permits from local authorities with respect to the development of the
Premises. Lessee shall make improvements to the Premises costing in excess of
$1,000,000.00 within twelve (12) months after Lessee secures such permit.
For these purposes, the cost of improvements shall include the cost of any
hotel built on the Premises by Lessee, Subtenant, or any sublessee.

 

Section 16.  Waiver.

 

The waiver by Lessor of,
or the failure of Lessor to take action with respect to, any breach of any
term, covenant, or condition contained in this Lease Agreement shall not be
deemed to be a waiver of such term, covenant, or condition, or subsequent
breach of the same, or any other term, covenant, or condition contained in this
Lease Agreement.

 

Section 17.  Effect of Lessee’s Holding Over.

 

Any holding over after
the expiration of the term of this Lease Agreement, with the consent of Lessor,
shall be construed to be a tenancy from year-to-year, at the same Base Rental,
Base Percentage Rent and Secondary Percentage Rent or Percentage Rent as
required to be paid by Lessee for the period immediately prior to the
expiration of the term of this Lease Agreement, and shall otherwise be on the
terms and conditions specified in this Lease Agreement, so far as applicable.

 

Section 18.  Parties Bound.

 

The covenants and
conditions contained in this Lease Agreement shall, subject to the provisions
as to assignment, transfer, and subletting, apply to and bind the successors
and assigns of all of the parties to the Lease Agreement.

 

Section 19.  Time of the Essence.

 

Time is of the essence of
this Lease Agreement, and of each and every covenant, term, condition, and
provision of this Lease Agreement.

 

11

 

Section 20.  Section Captions.

 

The captions appearing
under the section number designations of this Lease Agreement are for
convenience only and are not a part of this Lease Agreement and do not in any
way limit or amplify the terms and provisions of this Lease Agreement.

 

Section 21.  Governing Law.

 

It is agreed that this
Lease Agreement shall be governed by, construed, and enforced in accordance
with the laws of the State of Mississippi including but not limited to the
Mississippi Gaming Control Act.

 

Section 22.  Entire Agreement.

 

This Lease Agreement shall
constitute the entire agreement between the parties. Any prior understanding or
representation of any kind preceding the date of this Lease Agreement shall not
be binding upon either party except to the extent incorporated in this
Agreement.

 

Section 23.  Modification of Agreement.

 

Any modification of this
Lease Agreement or additional obligation assumed by either party in connection
with this Lease Agreement shall be binding only if evidenced in a writing
signed by each party or an authorized representative of each party.

 

Section 24.  Additional Documents.

 

The parties agree to
execute whatever papers and documents may be necessary to effectuate the terms
of this Lease Agreement. At the request of Lessee, Lessor shall execute an
estoppel certificate from time to time in a form reasonably satisfactory to
Lessee.

 

Section 25.  Notice.

 

Any notice due hereunder
shall be deemed sufficient notice if mailed, postage prepaid, United States
Mail, to Lessor or to Lessee at the following addresses or such other addresses
as they may designate:

 

	
  If to Lessor:

  	
   

  	
  Mr. D. John
  Nichols

  
	
   

  	
   

  	
  Greenville Marine
  Corporation

  
	
   

  	
   

  	
  Post Office Box 539

  
	
   

  	
   

  	
  Greenville, Mississippi
  38702-0539

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  L. Carl Hagwood

  
	
   

  	
   

  	
  Campbell, DeLong,
  Hagwood & Wade

  
	
   

  	
   

  	
  Post Office Box 1856

  
	
   

  	
   

  	
  Greenville, Mississippi
  38702-1856

  

 

12

 

	
  If to Lessee:

  	
   

  	
  Rainbow
  Entertainment, Inc.

  
	
   

  	
   

  	
  5175 Elmore Road,
  Suite 3

  
	
   

  	
   

  	
  Memphis, Tennessee
  38134

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Wimar Tahoe Corporation

  
	
   

  	
   

  	
  (proposed subtenant)

  
	
   

  	
   

  	
  207 Grandview Drive

  
	
   

  	
   

  	
  Ft. Mitchell, KY 41017

  
	
   

  	
   

  	
  Attn: William C.
  Beegle, Vice

  
	
   

  	
   

  	
  President

  

 

Section 26.  Default.

 

Any one or more of the
following events shall constitute an “Event of Default”:

 

26.1. Failure of the
Lessee to make payments of Base Rent, Percentage Base Rent, or Secondary
Percentage Rent when due hereunder and the expiration of seven (7) days
after Lessee receives written notice from Lessor of such nonpayment.

 

26.2. A vacation or
abandonment of the Premises after gaming operations have first commenced.
Vacation or abandonment of the Premises shall include the failure to occupy the
Premises for a continuous period of sixty (60) days or more whether or not
Rent is paid.

 

26.3. The breach by
Lessee of any of the covenants, conditions or provisions of this Lease when
such breach shall continue for a period of thirty (30) days after Lessee
shall have received written notice thereof from Lessor; provided however, that
if the nature of the Lessee’s noncompliance is such that more than thirty
(30) days are reasonably required for its cure then Lessee shall not be
deemed to be in default if Lessee commences such cure within said thirty (30)
day period and thereafter diligently pursues such cure to completion.

 

26.4. The making by
Lessee of any general arrangement or general assignment for the benefit of
creditors, Lessee becoming a debtor as defined in 11 U.S.C. Section 101 or
any successor statute thereto (unless, in the case of a petition filed against
Lessee, the same is dismissed within sixty (60) days), or the appointment
of a trustee or receiver to take possession of substantially all of Lessee’s
assets located at the Premises when such is not discharged within thirty
(30) days.

 

Section 27.  Remedies.

 

Upon any Event of
Default, Lessor may at any time thereafter with thirty (30) days prior
written notice terminate Lessee’s right to possession of the Premises in which
case this Lease and the term thereof shall terminate and Lessee shall
immediately surrender possession of the Premises to Lessor. In such event
Lessor shall be entitled to recover from Lessee all damages

 

13

 

incurred by Lessor by
reason of Lessee’s default including but not limited to the cost of recovering
possession of the Premises, and the then present value of the amount by which
the unpaid Base Rent for the balance of the Term after the time of such default
exceeds the amount of rent that would be paid for the Premises by a new tenant
if reasonable efforts were used by Lessor to relet the Premises. In no event
shall Lessor have any lien or claim against Lessee’s assets including without
limitation any lien against or on any vessel, barge or boat of Lessee.

 

Section 28.  Amendment.

 

This Amended and Restated
Lease Agreement amends and restates the Lease between the parties in its
entirety and renders void all previous leases, documents and amendments between
them. The failure of the Lessee to perform any duties or obligations contained
in the original Lease with Lessor, as amended, (including but not limited to
the failure of Lessee to pay Lessor $250,000.00 under Section 10 of the
Second Lease Amendment) shall not constitute a default or breach of this
Amended and Restated Lease Agreement.

 

Section 29.  Environmental Matters.

 

29.1. Lessor hereby
represents and warrants to Lessee that to the best of Lessor’s knowledge no “Hazardous
Substance” is located on the Premises.

 

29.2. Lessor hereby
represents and warrants to Lessee that Lessor has not released, generated,
deposited, located or stored any Hazardous Substance on the Premises.

 

29.3. For purposes of
this Agreement the term “Hazardous Substance” means any substance, material,
pollutant or contaminant the use, disposal or storage of which is regulated
under any environmental law, statute, regulation, rule or court decision.

 

Section 30.  Memorandum of Lease.

 

Lessor and Lessee shall
execute and record a Memorandum of this Lease in the real estate records of the
county in which the Premises are located.

 

IN WITNESS WHEREOF, each
party to this Agreement has caused it to be executed as of the date indicated
above.

 

	
  GREENVILLE MARINE
  CORPORATION

  	
  RAINBOW ENTERTAINMENT,
  INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BY:

  	
  /s/ D. John Nichols

  	
   

  	
  BY:

  	
  /s/ Marvin Cato

  
	
   

  	
  D. John Nichols,
  President

  	
   

  	
   

  	
  Marvin Cato, President 

  

 

14

 

ALEXANDER
ENGINEERING, P.A.

346 S. GAMWYN DRIVE, P.O. BOX 1281

GREENVILLE, MISSISSIPPI 38701

(601) 332-1655

 

DESCRIPTION:

 

Commencing at Station 213
+ 65.16 of the Bank Protection Work Base Line; thence South 42 degrees 06
minutes 10 seconds East 15.26 feet to an iron pipe and the Point of Beginning
of the tract herein described; thence South 33 degrees 06 minutes 34 seconds
West 434.39 feet; thence South 44 degrees 27 minutes 49 seconds West 143.39
feet to an iron pipe; thence South 50 degrees 28 minutes 46 seconds West 26.29
feet to an iron pipe; thence North 42 degrees 06 minutes 10 seconds West 126.60
feet to an iron pipe on the high bank of Lake Ferguson; thence continuing North
42 degrees 06 minutes 10 seconds West 147 feet to the mean low water mark of
Lake Ferguson; thence meandering said low water mark the following three calls:
North 26 degrees 57 minutes 24 seconds East 630.66 feet; North 33 degrees 06
minutes 34 seconds East 60.00 feet; North 37 degrees 34 minutes East 187.63
feet; thence South 42 degrees 06 minutes 10 seconds East 147 feet to an iron
pipe on the high bank of Lake Ferguson; thence continuing South 42 degrees 06
minutes 10 seconds East 222.30 feet; thence South 33 degrees 06 minutes 34
seconds West 250.90 feet to the Point of Beginning, and being located in Section 4,
Township 18 North Range 8 West, Washington County, Mississippi.

 

I certify that I have
made a survey of the lands shown hereon, and that the same is true and correct
to the best of my knowledge and belief.

 

	
  /s/ G.E. Alexander  

  	
   

  	
   

  
	
  G.E.
  Alexander, Jr., P.E., P.L.S. 

  	
   

  
	
  February 10, 1995

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

 

 

 

STATE OF MISSISSIPPI

COUNTY OF WASHINGTON

 

This day personally
appeared before me, the undersigned authority in and for the State and County
aforesaid, D. John Nichols, President of Mississippi
Marine Corporation, a Mississippi corporation, who acknowledged that
for and on its behalf, he signed, sealed and delivered the foregoing Amended
and Restated Lease Agreement on the day and year therein mentioned as its act
and deed, being first duly authorized so to do.

 

Given under my hand and
official seal of office, this the 13th day of March, 1995.

 

	
   

  	
  /s/ [ILLEGIBLE]

  
	
   

  	
  Notary Public

  

 

[ILLEGIBLE]

 

My Commission Expires: August 7,
1998

STATE OF MISSISSIPPI

COUNTY OF WASHINGTON

 

This day personally
appeared before me, the undersigned authority in and for the State and County
aforesaid, Marvin Cato, President of Rainbow
Entertainment, Inc., who acknowledged that for and on its
behalf, he signed, sealed and delivered the foregoing Amended and Restated
Lease Agreement on the day and year therein mentioned as its act and deed,
being first duly authorized so to do.

 

Given under my hand and
official seal of office, this the 13th day of March, 1995.

 

	
   

  	
  /s/ [ILLEGIBLE]

  
	
   

  	
  Notary Public

  

 

[ILLEGIBLE]

My Commission Expires: August 7,
1998

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