Document:

Exhibit
4.2

FIRST
AMENDMENT TO THE

HORSESHOE GAMING HOLDING CORP.

401(K) PLAN

This First Amendment to the
Horseshoe Gaming Holding Corp. 401(k) Plan (“Plan”) is hereby adopted by
Horseshoe Gaming Holding Corp. (“Company”).

BACKGROUND

A.            The Company adopted the Plan to provide retirement
benefits to the employees of the Company and all participating affiliated
employers.

B.            The Company reserved the right to amend the Plan pursuant
to Section 12.1 thereof.

C.            The Company now wishes to amend the Plan in certain
respects.

AMENDMENT

Therefore, the Company
hereby amends the Plan, effective as specifically provided herein, as follows:

1.                                       The first
paragraph of Section 1.7, defining compensation, is hereby amended, effective
January 1, 2001, to read as follows:

“COMPENSATION” shall mean the regular compensation
paid to a Participant by the Employer for the Plan Year, including annual bonus
amounts and paid time off, but exclusive of any extraordinary compensation,
awards, or benefits, any severance benefits, any program of deferred
compensation or additional benefits payable other than in cash and any
compensation received prior to his becoming a Participant in the Plan.”

2.                                       The first
paragraph of Section 4.1(a) of the Plan, relating to elections of benefits, is
hereby amended, effective January 1, 2001, to read as follows:

“(a)                            Elections. A Participant
may elect to defer a portion of his Compensation for a Plan Year. The amount of
a Participant’s Compensation that is deferred in accordance with the
Participant’s election shall be withheld by the Employer from the Participant’s
Compensation on a ratable basis throughout the Plan Year. The amount deferred
on behalf of each Participant shall be contributed by the Employer to the Plan
and allocated to the Participant’s Account.”

3.                                       Section 4.2(a)
of the Plan, relating to matching contributions, is hereby amended, effective
January 1, 2001, to read as follows:

“(a)                            For each Plan
Year, the Employer may contribute to the Plan, on behalf of each Participant a
discretionary matching contribution equal to a

 

 

percentage (as determined by
the Employer’s board of directors) of the elective deferrals made by each such
Participant each payroll period.

Notwithstanding the foregoing, a Participant shall
be entitled to receive a supplemental Employer matching contribution for the
Plan Year to the extent necessary to ensure that the rate of Employer matching
contributions made on behalf of such Participant for the Plan Year is the same
as the rate of Employer matching contributions for any other Participant with
the same rate of elective deferrals for the Plan Year.

To be eligible for an allocation of a supplemental
Employer matching contribution under this Section 4.2(a), a Participant must be
employed by the Employer on the last day of the Plan Year; provided, however,
that if the Participant’s failure to be employed by the Employer on the last
day of the Plan Year is due to the Participant’s Disability, death or
retirement on or after his Normal Retirement Date during such Plan Year, such
Participant shall nevertheless be entitled to share in the allocation of any
supplemental Employer matching contribution for such Plan Year as provided in
this Section 4.2(a).

The Employer’s board of directors may also determine
to suspend or reduce its contributions under this Section for any Plan Year or
any portion thereof. Allocations under this Section shall be subject to the
special rules of Section 13.3 in any Plan Year in which the Plan is a Top-Heavy
Plan (as defined in Section 13.2(c)).”

4.                                       Section 8.1(a)
of the Plan, relating to Plan loans, is hereby amended to read as follows:

“(a)                            Permissible
Amount and Procedures.  Upon the application of a
Participant, the Administrator may, in accordance with a uniform and
nondiscriminatory policy, direct the Trustee to grant a loan to the
Participant, which loan shall be secured by the Participant’s vested Account
balance. The Participant’s signature shall be required on a promissory note. In
determining a rate of interest on such loans, the Administrator may refer to
the rate of interest used for obligations of a comparable nature by commercial
lending institutions within a radius of fifty (50) miles of the Employer’s
principal place of business. Participant loans shall be treated as segregated
investments, and interest repayments shall be credited only to the Participant’s
Account.”

5.                                       The first
sentence of Section 8.2, relating to hardship distributions, is hereby amended
to read as follows:

“82                              HARDSHIP
DISTRIBUTIONS. In the case of a financial hardship resulting from a proven
immediate and heavy financial need, a Participant may receive a distribution
not to exceed the lesser of (i) the vested value of the Participant’s Account,
without regard to earnings on his elective deferrals after December 31, 1988,
and without regard to any “fail safe”

 

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contributions made under
Section 10.2, or (ii) the amount necessary to satisfy the financial hardship.”

6.                                       Section 8.3 of
the Plan, relating to withdrawals after age 59-1/2, is hereby amended to read
as follows:

“8.3                           WITHDRAWALS
AFTER AGE 59 1/2. After attaining age fifty-nine and one-half (59 1/2), a
Participant, by giving notice to the Administrator, may withdraw from the Plan
a sum (a) not in excess of the credit balance of his vested Account and (b) not
less than such minimum amount as the Administrator may establish from time to
time to facilitate administration of the Plan. Any such withdrawals shall be
made in accordance with nondiscriminatory and objective standards consistently
applied by the Administrator.”

7.                                       Section 8.4 of
the Plan, relating to withdrawals of rollover contributions, is hereby amended
to read as follows:

“8.4                           WITHDRAWALS OF
ROLLOVER CONTRIBUTIONS. A Participant, by giving written notice to the
Administrator, may withdraw from the Plan a sum (a) not in excess of the credit
balance of the Participant’s Account attributable to his rollover contributions
and (b) not less than such minimum amount as the Administrator may establish
from time to time to facilitate administration of the plan. Any such
withdrawals shall be made in accordance with nondiscriminatory and objective
standards consistently applied by the Administrator.”

8.                                       Except as
expressly provided in this Amendment, the Plan shall remain unchanged.

IN WITNESS WHEREOF, the
Employer, by its duly authorized officer, has caused this Amendment to be
executed on the 2nd day of January, 2001.

	
   

  	
  HORSESHOE GAMING HOLDING
  CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Roger Wagner

  
	
   

  	
  Title:

  	
  President

  

 

3Exhibit 4.3

SECOND AMENDMENT TO

HORSESHOE GAMING HOLDING CORP. 401(k) PLAN

WHEREAS, Horseshoe
Gaming Holding Corp. (the “Employer”) heretofore adopted the Horseshoe Gaming
Holding Corp. 401(k) Plan (the “Plan”); and

WHEREAS, the Employer
reserved the right to amend the Plan; and

WHEREAS, the Employer
desires to amend the Plan;

NOW,
THEREFORE, the Plan is hereby amended, effective immediately,
unless provided otherwise, as follows:

1.                                       Section 1.7 of
the Plan is hereby amended by adding the following paragraph to the conclusion
of said section:

“For limitation years beginning on and after January
1, 2001, for purposes of applying the limitations described in Section 11.1 of
the Plan, compensation paid or made available during such limitation years
shall include elective amounts that are not includible in the gross income of
the eligible Employee by reason of Section 132(f)(4) of the Code.

This amendment shall also apply to the definition of
compensation for purposes of Section 1.14 and Article Thirteen of the Plan for
Plan Years beginning on and after January 1, 2001.”

2.                                       Section 1.16 of
the Plan is hereby amended by changing the first sentence to read as follows:

“1.16                 LEASED  EMPLOYEE” shall mean, effective January 1,
1997, any person who, pursuant to an agreement between the Employer and any
other person or organization, has performed services for the Employer
(determined in accordance with Code Section 414(n)(6)) on a substantially
full-time basis for a period of at least one (1) year and where such services are
performed under the primary direction and control of the Employer.”

3.                                       Section
7.8(b)(i) is hereby amended, effective as of January 1, 2000, by deleting it in
its entirety and replacing it with the following:

“(i)                               Eligible
Rollover Distribution.  An eligible
rollover distribution is any distribution of all or any portion of the balance
to the credit of the distributee, except that an eligible rollover distribution
does not include: any distribution that is one of a series of substantially
equal periodic payments (not less frequently than annually) made for the life
(or life expectancy) of the distributee or the joint lives (or joint life
expectancies) of the distributee and the distributee’s designated Beneficiary,
or for a specified period of ten (10) years or more; any distribution to the
extent such distribution is required under Section 401(a)(9) of the Code; any

 

 

hardship distribution
described in Section 401(k)(2)(B)(i)(IV) of the Code received after December
31, 1999; and the portion of any distribution that is not includable in gross
income (determined without regard to the exclusion for net unrealized
appreciation with respect to employer securities).”

4.                                       Section 10.2(a)
of the Plan is hereby amended by deleting the third paragraph and replacing it
with the following:

“Notwithstanding the foregoing, if elected by the
Employer, the foregoing percentage tests shall be applied as though the
references therein to “the prior Plan Year” read “such Plan Year;” provided,
however, the change in testing methods complies with the requirements set forth
in Notice 98-1 and any other superceding guidance.  Such election was made for the Empress Plan
for the 1997, 1998 and 1999 Plan Years. In addition, the election was made for
the Plan for the 2000 Plan Year.”

5.                                       Section 10.3(a)
of the Plan is hereby amended by deleting the first paragraph in its entirety
and replacing it with the following:

“(a)                            Average
Contribution Percentage Test.  The provisions
of this Section shall apply if Employer matching contributions are made in any
Plan Year under Section 4.2(a) and such matching contributions are not used to
satisfy the average actual deferral percentage test of Section 10.2.”

6.                                       Section 10.3(a)
of the Plan is hereby further amended by deleting the third paragraph and replacing
it with the following:

“Notwithstanding the foregoing, if elected by the
Employer, the foregoing percentage tests shall be applied as though the
references therein to “the prior Plan Year” read “such Plan Year;” provided,
however, the change in testing methods complies with the requirements set forth
in Notice 98-1 and any other superseding guidance. Such election was made for
the Empress Plan for the 1997, 1998 and 1999 Plan Years. In addition, the
election was made for the Plan for the 2000 Plan Year.”

7.                                       Section 14.4 of
the Plan is hereby amended, effective as of August 5, 1997, by deleting the
first paragraph and replacing it with the following:

“Except as provided in Section 414(p) of the Code
with respect to “qualified domestic relations orders,” or except as provided in
Section 401(a)(13)(C) of the Code with respect to certain judgments and
settlements, the rights of any Participant or his Beneficiary to any benefit or
payment hereunder shall not be subject to voluntary or involuntary alienation
or assignment.”

8.                                       Except as
hereinabove amended, the provisions of the Plan shall continue in full force
and effect.

 

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IN WITNESS
WHEREOF, the Employer, by its duly authorized officer, has
caused this Amendment to be executed as of the 9th day of August, 2002.

	
   

  	
  HORSESHOE GAMING HOLDING CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Kirk Saylor

  
	
   

  	
  Title:  Chief Financial Officer

  

 

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