Document:

Exhibit 10.7(F)

 

MEMORANDUM
OF UNDERSTANDING

 

THIS MEMORANDUM OF
UNDERSTANDING (“Agreement”), is made on June 7, 2005, 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”), as further amended by that certain Second Amendment to
Lease Agreement dated August 27, 2003 (the “Second Amendment”), and as
further amended by those certain Memorandums of Understanding made effective as
of December 1, 2004, March 15, 2005, and May 12, 2005,
respectively (the “MOUs,” and collectively with the Original Lease, the First
Amendment and the Second Amendment, the “Lease”).

 

B. Section 2.04
of the Original Lease, as amended by the MOUs, provides that options in favor
of the Tenant to extend the terms of the Lease shall be deemed to be
automatically exercised unless Tenant shall give City notice of the
relinquishment of such option and all succeeding options at least one hundred
sixty-five (165) days prior to the expiration of the Original Term or
prior Extended Term, as the case may be.

 

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. Exercise of
Option to Extend. Section 2.04 of the Original Lease, as amended by
the MOUs, is hereby amended in its entirety to read as follows:

 

“Section 2.04. Exercise of Option to Extend. The options
to extend the term of this Lease shall be deemed to be automatically exercised
unless Tenant shall give City notice of the relinquishment of such option and
all succeeding options in the manner hereinafter specified for notices not
later than July 19, 2005, prior to the expiration of the Original Term or
at least one hundred sixty-five (165) days prior to the expiration of the
prior Extended Term, as the case may be. The failure of Tenant to give such
notice within the time limited shall cause such option to be automatically
exercised and this Lease shall continue in full force and effect for the
succeeding Extended Term. The giving of notice of the relinquishment of an

 

 

option to extend the term
within the specified time periods prior to the expiration of the preceding term
shall cause such Extended Term and any succeeding Extended Terms to lapse and
become null and void and of no further force or effect, and this Lease and all
rights of Tenant hereunder shall expire and terminate as of the end of the
Original Term or Extended Term, as the case may be.”

 

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

 

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

 

	
  AZTAR
  INDIANA GAMING

  	
  AZTAR CORPORATION

  
	
  COMPANY,
  LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ James L. Brown  

  	
   

  	
  By:

  	
  /s/ Neil Ciarfalia

  
	
  Printed:

  	
  James L. Brown

  	
  Printed:

  	
  Neil Ciarfalia

  
	
  Title:

  	
  President/GM 

  	
  Title:

  	
  CFO, VP &
  Treasurer

  
					

 

	
  REDEVELOPMENT
  COMMISSION OF

  	
   

  
	
  THE CITY OF EVANSVILLE,
  INDIANA

  	
   

  
	
   

  	
   

  
	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
   

  
	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
   

  
	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
   

  
	
  /s/ [ILLEGIBLE]Exhibit 10.7(G)

 

THIRD
AMENDMENT TO LEASE AGREEMENT

 

THIS
THIRD AMENDMENT TO LEASE AGREEMENT (“Third Amendment”), is made on July 19, 2005, and
effective as of December 1, 2005, by and among the City of Evansville, Indiana
(the “City”) 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 (“Tenant”), and Aztar
Corporation, a corporation organized and existing under the laws of the State
of Delaware (“Guarantor”).

 

RECITALS

 

A. The Commission, Tenant
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”),
as further amended by that certain Second Amendment to Lease Agreement dated August
27, 2003 (the “Second Amendment”), and as further amended by those certain
Memorandums of Understanding made effective as of December 1, 2004, March 15,
2005, May 12, 2005, and June 7, 2005, respectively (the “MOUs,” and
collectively with the Original Lease, the First Amendment and the Second
Amendment, the “Lease”).

 

B. In furtherance of the
objectives of the Act and the Downtown Redevelopment Plan, and in order to
induce Tenant to exercise its right and option to extend the term of the Lease
for an additional term of five years from December 1, 2005 to November 30, 2010
(the “First Extended Term”), the Commission and Tenant desire to amend the
Lease.

 

NOW, THEREFORE, for good
and valuable consideration, receipt of which is hereby acknowledged, the
Commission, Tenant 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. Grant of Options
for Additional Extended Terms. Section 2.03 of the Original Lease is hereby
amended in its entirety to read as follows:

 

“Section 2.03. The Extended Term(s). If Tenant shall
comply with each of the terms, provisions and conditions of this Lease so that
at the end of the First Extended Term there is no uncured Event of Default of
Tenant hereunder, Tenant shall have the right and option to extend the term of
this Lease for an additional extended term of five (5) years (the “Second
Extended Term”). If Tenant shall comply with each of the terms, provisions and
commitments of this Lease so that at the end of the Second Extended Term there
is no uncured event of default of Tenant hereunder, Tenant shall have the right
and option to extend the term of this Lease for an additional term of five (5) years
(the “Third Extended Term”).

 

 

Tenant shall have the
right and option to extend the term of this Lease for four (4) additional terms
of five (5) years each following the Third Extended Term, provided that there
is no uncured event of default of Tenant hereunder at the end of the Third
Extended Term and at end of each succeeding extended term. The Second Extended
Term, the Third Extended Term and any succeeding extended term may be referred
to hereinafter as the “Extended Term” or “Extended Terms”.”

 

2. Rent Schedule. Section
4.01 of the Lease is hereby amended in its entirety to read as follows:

 

“Section 4.01. Rent Schedule. Tenant hereby agrees to pay
Rental to City for each year of the Demised Term as set forth in Schedule 4.01
attached hereto (the “Rent Schedule”), which shall include a percentage of the
Adjusted Gross Receipts (“AGR”) as defined in the Gambling Law (the “Percentage
Rent”).”

 

3. Use of Term “Lease
Year”. Section 4.02 of the Lease is hereby amended in its entirety to read
as follows:

 

“Section 4.02. Use of the Term “Lease Year”. Throughout
the Demised Term, the use of the term “Year” or “Lease Year” in this Lease
shall refer to a period commencing December 1 and terminating as of November 30
of the subsequent calendar year. For purposes of this Lease, the term “month”
shall be determined in reference to Tenant’s fiscal year, as set forth on
Schedule 4.02 attached hereto (the “Fiscal Year Schedule”), and shall not mean
a calendar month.”

 

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

 

5. Affirmation of
Guaranty. Guarantor hereby unconditionally guarantees and promises to
perform and reaffirms its obligations under the Lease, as amended by this Third
Amendment, and acknowledges that the Guaranty secures the obligations of Tenant
set forth in this Third Amendment.

 

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

 

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

 

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

 

2

 

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

 

	
  AZTAR
  INDIANA GAMING

  	
  AZTAR CORPORATION

  
	
  COMPANY,
  LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ James L. Brown  

  	
   

  	
  By:

  	
  /s/ Neil Ciarfalia

  
	
  Printed Name:

  	
  James L. Brown

  	
  Printed Name:

  	
  Neil Ciarfalia

  
	
  Title:

  	
  President/GM 

  	
  Title:

  	
  CFO, VP & Treasurer

  
					

 

	
  REDEVELOPMENT
  COMMISSION OF

  	
   

  
	
  THE CITY OF EVANSVILLE,
  INDIANA

  	
   

  
	
   

  	
   

  
	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
   

  
	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
   

  
	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

3

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