Document:

Exhibit 10.57

 

 

 

PENINSULA GAMING PARTNERS, LLC

AMENDED AND RESTATED

2004 INCENTIVE UNIT PLAN

 

PENINSULA GAMING PARTNERS
LLC

AMENDED AND RESTATED

2004 INCENTIVE UNIT PLAN

SECTION
1

GENERAL

1.1           Purpose.  The Peninsula Gaming Partners LLC Amended and
Restated 2004 Incentive Unit Plan (the “Plan”) has been established by
Peninsula Gaming Partners, LLC (the “Company”) to (i) attract and retain
Persons eligible to participate in the Plan; (ii) motivate Participants, by
means of appropriate incentives, to achieve long-range goals; (iii) provide
incentive compensation opportunities that are competitive with those of other
similar companies; (iv) compensate Participants for services or other
consideration provided, or to be provided, to the Company and (v) further
align Participants’ interests with those of the Company’s owners through
compensation that is based on a profits interest in the Company; and thereby
promote the long-term financial interest of the Company, including the growth
in value of the Company.

1.2           Participation.  Subject to the terms and conditions of the
Plan, the Executive Committee shall determine and designate, from time to time,
from among the Eligible Individuals identified from time to time by the Board,
those persons who will be granted one or more Awards under the Plan, and
thereby become “Participants” in the Plan. 
The Board may allow an Eligible Participant to designate an entity to
hold Covered Units and become a Participant in the Plan, so long as the
Eligible Participant (the “Principal” in such case) owns and controls such
entity.  If the Board allows an Eligible
Individual to designate an entity as the Participant, then such Eligible
Individual shall be required to provide the name of such entity and its federal
tax identification number to the Company as a prerequisite to participation,
and include in the constituent documents for such entity provisions required by
this Plan and related Award Agreement.

1.3           Operation,
Administration, and Definitions. 
The operation and administration of the Plan, including the Awards made
under the Plan, shall be subject to the provisions of Section 3
(relating to operation and administration). 
Capitalized terms used in the Plan shall be defined as set forth in the
Plan (including the definition provisions of Section 7).

1.4           Amendment and Restatement.  The terms, provisions, covenants and conditions
of the 2004 Incentive Unit Plan, effective as of June 16, 2004, are amended,
restated and superseded in their entirety by the Plan.

SECTION
2

NON-VOTING COMMON UNIT AWARDS

2.1           Non-Voting
Common Unit Award. 
Participants in the Plan shall receive Awards to the extent determined
by the Executive Committee, subject to approval by the Board.  A Non-Voting Common Unit Award shall be a
right to “Non-Voting Common Units,” subject to such terms, restrictions and
contingencies as set forth in this Plan and by the Executive Committee, subject
to approval of the Board.

 1
 

SECTION
3

OPERATION AND ADMINISTRATION

3.1           Effective
Date.  The Plan shall be
effective as of February 25, 2005 (the “Effective Date”).  The Plan shall be unlimited in duration and,
in the event of Plan termination, shall remain in effect as long as any Awards
under it are outstanding.

3.2           Non-Voting Common Units Subject to Plan.  The aggregate number of Non-Voting Common
Units available under the Plan (and LLC Agreement) shall initially be Two Hundred
Ten Thousand Eight Hundred Seventy-One and Fifty-Three One Hundreths
(210,871.53) which amount shall be adjusted as necessary from time to time to
equal a maximum aggregate amount representing 12% of the outstanding Units on a
fully diluted basis after giving effect to any additional issuances
thereunder.  If any Non-Voting Common
Units covered by an Award are forfeited and lawfully canceled, such Non-Voting
Common Units shall not be deemed to have been awarded for purposes of
determining the maximum number of Non-Voting Common Units available under the
Plan.

3.3           Grant of
Awards.  The Executive
Committee, subject to Board approval, shall establish, from time to time from
among the Eligible Individuals, those persons eligible to become Participants
and shall determine the maximum number of Non-Voting Common Units that may be
granted to any such Participant.

3.4           Distributions.  A Participant shall become eligible to
receive distributions with respect to Covered Units in accordance with the
terms of the LLC Agreement.

3.5           Transferability.  Except as otherwise provided in an Award
Agreement, and subject to the terms and restrictions of the LLC Agreement,
Non-Voting Common Units subject to an Award are not transferable by will or by
the laws of descent and distribution. 
With the approval of the Board, a Participant may transfer Covered Units
to a revocable living trust for the benefit of the Participant  (with the trustee of such revocable living
trust being obligated under the terms of such trust to hold such Units subject
to the terms and provisions of the Plan, the Award Agreement and the LLC
Agreement).

3.6           Agreement
With Company.  An Award under
the Plan shall be subject to such terms and conditions, not inconsistent with
the Plan or the LLC Agreement, as the Executive Committee, subject to approval
of the Board, shall, in its sole discretion, prescribe.  The terms and conditions of any Award to any
Participant shall be reflected in an Award Agreement, executed by the
Participant. A Participant shall also be required to execute a counterpart to
the LLC Agreement agreeing to be bound by all of the terms thereof.

3.7           Action
by Company or Subsidiary.  Any
action required or permitted to be taken by the Company or any Subsidiary under
this Plan or an Award Agreement shall be by action of the Executive Committee,
subject to approval of the Board, (except to the extent prohibited by
applicable law)  and shall be valid and
binding on the Company and each Subsidiary of the Company.

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3.8           Gender
and Number.  Where the context
admits, words in any gender shall include any other gender, words in the
singular shall include the plural and the plural shall include the singular.

3.9           Limitation of Implied Rights.

(a)                                  Nothing
contained in the Plan shall constitute a guarantee that the assets of the
Company or any Subsidiary shall be sufficient to pay any benefits to any
Person.

(b)                                 The
Plan does not constitute a contract of employment, and selection as a
Participant will not give any participating employee, Consultant, other individual
the right to be retained in the employ of the Company or any Subsidiary of the
Company or the right to continue to provide services to the Company or any
Subsidiary of the Company.

3.10         Evidence.  Evidence required of anyone under the Plan
may be by certificate, affidavit, document or other information which the
person acting on it considers pertinent and reliable, and signed, made or
presented by the proper party or parties.

SECTION 4

CHANGE OF CONTROL

In an Award Agreement, the Board shall have the right
to provide for the effect of a Change of Control or Recapitalization upon an
Award under this Plan.

SECTION 5

ADMINISTRATION OF THE PLAN

5.1           Administration.  The authority to control and manage the
operation of the Plan, and the authority to administer the Plan shall be vested
in the Executive Committee, all in accordance with the provisions of this Section
5.

5.2           Powers
of the Executive Committee. 
The Executive Committee’s authority to control, manage and administer
the Plan shall be as follows:

(a)                                  Subject
to the provisions of the Plan and the LLC Agreement, the Executive Committee
will have the authority and discretion to (i) select from among the Eligible
Individuals those persons who shall be eligible to receive Awards, (ii) to
determine the maximum number of Non-Voting Common Units covered by each of the
Awards, (iii) to establish the terms, conditions, restrictions, and other
provisions of such Awards under an Award Agreement, and (iv) subject to the
restrictions imposed by Section 6, to cancel or suspend Awards, in each
case subject to the approval of the Board.

(b)                                 The
Executive Committee will have the authority and discretion to interpret the
Plan, to establish, amend, and rescind any rules and regulations relating to
the Plan, and to determine or amend or waive any of the terms and provisions of
any Award Agreement made pursuant to the Plan, in each case subject to approval
of the Board.

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(c)                                  To
the extent that the Executive Committee determines that the restrictions
imposed by the Plan preclude the achievement of the material purposes of the
Awards to be granted under the Plan in jurisdictions outside the United States,
the Executive Committee will have the authority and discretion, subject to
approval of the Board, to modify those restrictions as the Executive Committee
determines to be necessary or appropriate to conform to applicable requirements
or practices of jurisdictions outside of the United States.

(d)                                 Any
interpretation of the Plan by the Executive Committee and approved by the Board
and any decision made by the Executive Committee and the Board under the Plan
is final and binding on all Persons, subject to rights and remedies available
to a Participant under an applicable Award Agreement.

(e)                                  In
interpreting and administering the Plan and any Award Agreement, the Executive
Committee shall take action in a manner that conforms to the LLC Agreement and
applicable state laws.

5.3           Information
to be Furnished to Board and Executive Committee.  The Company and its Subsidiaries shall furnish
the Board and the Executive Committee with such data and information as each of
them determines may be required for it to discharge its duties.  The records of the Company and its
Subsidiaries as to an employee’s or Participant’s employment (or other provision
of services), termination of employment (or cessation of the provision of
services), leave of absence, reemployment and compensation shall be conclusive
on all persons unless determined to be incorrect.  Participants and other persons entitled to benefits
under the Plan must furnish the Board and the Executive Committee such
evidence, data or information as the Board and the Executive Committee
considers desirable to carry out the terms of the Plan.

SECTION
6

AMENDMENT AND TERMINATION

The Board may, at any time, amend or terminate the
Plan, provided that (i) no amendment or termination may, in the absence of
written consent to the change by the affected Participant or, the Participant’s
Personal Representative, adversely affect the then existing rights of any
Participant or beneficiary under any Award granted under the Plan as of the
date such amendment is adopted by the Board, and (ii) no amendment to this Plan
that materially limits or modifies the powers and authority of the Executive
Committee as set forth herein shall be effective without the prior consent of
the Executive Committee.

SECTION
7

GAMING CONTROL; FINDING OF UNSUITABILITY; AND LEGENDS

7.1           Gaming Control.  The Company shall grant Awards in accordance
with the provisions of applicable Gaming Laws. 
The grant of any Award in violation of any Gaming Law shall be
ineffective, and Covered Units shall be deemed not to be issued or outstanding
until (1) the Company shall cease to be subject to the jurisdiction of Gaming
Authorities or (2) the Gaming Authorities shall, by affirmative action,
validate such issuance or waive any defect in 

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such issuance. No Non-Voting Common Units issued by
the Company under this Plan and no interest, claim, or charge therein or
thereto shall be transferred in any manner whatsoever except in accordance with
the provisions of applicable Gaming Laws. 
Any transfer in violation thereof shall be ineffective until (1) the
Company shall cease to be subject to the jurisdiction of applicable Gaming
Authorities, or (2) applicable Gaming Authorities shall, by affirmative action,
validate such transfer or waive any defect in such transfer.

7.2           Finding of Unsuitability or
Surrender of License.  If a Gaming
Authority finds that a Participant is unsuitable to hold or continue to hold  gaming licenses with respect to the Company
or if Participant shall voluntarily surrender his, her, or its gaming license,
then the Participant found to be unsuitable or otherwise surrendering his, her,
or its license shall sell, and the Company shall purchase, his, her, or its
Covered Units within such time frame and at the price required under the Gaming
Laws, and if not otherwise so provided, at the price set forth in the LLC
Agreement.

7.3           Legend.  In addition to legends required under the LLC
Agreement, including, without limitation, any legends required under applicable
Gaming Laws, each certificate for Covered Units shall contain a legend reading
substantially as follows:

Any sale,
assignment, transfer, pledge, or other disposition of the shares of stock
represented by this certificate is restricted by, and subject to, the terms and
provisions of the Peninsula Gaming Partners LLC — Amended and Restated 2004
Incentive Unit Plan (the “Plan”), and that certain Award Agreement entered into
thereunder.  A copy of the Plan and Award
Agreement are on file with the Secretary of the Company.  By acceptance of this certificate, the holder
hereof agrees to be bound by the terms of the Plan and the Award Agreement.

SECTION
8

MARITAL PROPERTY RIGHTS

No Award Agreement
shall be effective until the Company receives an explicit acknowledgment from
the spouse of a Participant or Principal that Covered Units shall be governed
by this Plan, the Award Agreement and the LLC Agreement.

SECTION
9

DEFINED TERMS

In addition to the
other definitions contained herein, the following definitions shall apply:

(a)                                                  Award.  The term “Award” shall mean the grant of
Non-Voting Common Units under the Plan.

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(b)                                                 Award Agreement.  The term “Award Agreement” shall mean the
written agreement between the Company and a Participant establishing the terms
and conditions of an Award.

(c)                           Board. 
The term “Board” shall mean the Board of Managers of the Company.

(d)                                                 Change of Control.  The term “Change of Control” shall have the
meaning ascribed to it in the LLC Agreement.

(e)                           Consultant.  The term “Consultant” shall mean any Person
who is engaged by the Company or any Subsidiary to render consulting or
advisory services to such entity.

(f)                                                    Covered Units.  The term “Covered Units” shall mean
Non-Voting Common Units subject to an Award.

(g)                                                 Eligible
Individual.  The term “Eligible
Individual” shall mean any executive, key employee, or Consultant of the
Company or a Subsidiary.  An Award may be
granted to an individual (including without limitation indirectly to a
Principal through an entity Participant) at any time in connection with hiring,
retention or otherwise, including prior to the date the individual first
performs services for the Company or the Subsidiaries, provided that such Awards
shall not become vested prior to the date the individual first performs such
services.

(h)                                                 Executive Committee.  The term “Executive Committee” shall have the
meaning ascribed to it in the LLC Agreement.

(i)                                                     Gaming Authority.  The term “Gaming Authority” shall mean any
agency, authority, board, bureau, commission, department, office or
instrumentality of any nature whatsoever of the United States or foreign
government, any state, province or any city or other political subdivision or
otherwise, whether now or hereafter in existence, or any officer or official
thereof,  with authority to regulate any
gaming operation (or proposed gaming operation) owned, managed or operated by
the Company or any of the Company’s Subsidiaries.

(j)                                                     Gaming Laws. The term “Gaming
Laws” shall mean the gaming laws of any jurisdiction or jurisdictions to which
the Company or any of the Company’s Subsidiaries are, or may at any time
become, subject.

(k)                                                  LLC Agreement.  The term “LLC Agreement” shall mean the
Second Amended and Restated Limited Liability Company Agreement of Peninsula
Gaming Partners, LLC, as the same may be amended or restated from time to time.

(l)                                                     Non-Voting Common Unit.  The term “Non-Voting Common Unit” shall have
the meaning ascribed to it in the LLC Agreement.

(m)                                               Person.  The term “Person” shall mean an individual, a
partnership, a corporation, a limited liability company, an association, a
joint stock company, a trust, a joint venture, 

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an
unincorporated organization and a governmental entity or any department, agency
or political subdivision thereof.

(n)                                                 Subsidiary.  The term “Subsidiary” means any corporation,
limited liability company, partnership, joint venture or other entity during
any period in which at least a fifty percent voting or profits interest is
owned, directly or indirectly, by the Company (or by any entity that is a
successor to the Company), and any other business venture designated by the
Board in which the Company (or any entity that is a successor to the Company)
has a significant interest, as determined in the discretion of the Board.

(o)                                                 Unvested Units.  The term “Unvested Units” means any
Non-Voting Common Unit issued pursuant to the Plan that is not vested pursuant
to the terms of the Award Agreement that granted such Non-Voting Common Unit to
a Participant.

 

 7Exhibit 10.58

FORM OF INCENTIVE UNIT

AWARD AGREEMENT

THIS AGREEMENT
(the “Agreement”), entered into as of the Grant Date (as defined in paragraph
1), by and between the Participant and Peninsula Gaming Partners, LLC (the “Company”);

WITNESSETH THAT:

WHEREAS, the
Company maintains the Peninsula Gaming Partners, LLC 2004 Incentive Unit Plan
(the “Plan”), which is incorporated into and forms a part of this Agreement,
established under the Second Amended and Restated Operating Agreement of the
Company (the “LLC Agreement”) which is incorporated into and forms a part of
this Agreement, and the Participant has been identified by the Board of
Managers of the Company to receive an Incentive Unit Award under the Plan;

NOW, THEREFORE, IT
IS AGREED, by and between the Company and the Participant, as follows:

1.             Terms
of Award.  The following terms used
in this Agreement shall have the meanings set forth in this paragraph 1:

(a)                                  The
“Participant” is                            ,
SS#/Tax I.D. No.                              .

(b)                                 The
“Grant Date” is                            .

(c)                                  The
“Covered Units” granted under this Agreement are initially                  
Non-Voting Common Units which amount shall be adjusted as necessary from time
to time to at all times equal                 percent (      %)
of the outstanding Units on a fully diluted basis.  “Covered Units” are subject to the terms of
this Agreement, the Plan and the LLC Agreement.

(d)                                 “Principal”
is                   .

Other terms used
in this Agreement are defined pursuant to paragraph 4 or elsewhere in this
Agreement.

2.             Award.  The Participant is hereby granted the number
of Covered Units set forth in paragraph 1. 
All certificates representing Covered Units shall remain in the custody
of the Company until such time as such Covered Units, or an Installment
thereof, are vested pursuant to paragraph 3, at which time the Board shall
deliver the certificates to Participant. 
Participant has delivered to the Board, a stock power duly endorsed in blank
for transfer of Covered Units. By execution hereof, Participant appoints the
Chief Executive Officer of the Company Participant’s attorney-in-fact to
transfer the Units representing Covered Units on the register of the Company in
the event of a forfeiture, and irrevocably consents to the cancellation of the
Units so forfeited, the reissue to Participant of certificate(s) for Covered
Units not so forfeited.

 1
 

3.             Distribution and Forfeiture of
Non-Voting Common Units.  If the Date
of Termination (as defined below) does not occur prior to the vesting date
described in this paragraph 3 with respect to any Installment of the Covered
Units  (the “Restricted Period”), then,
at the end of the Restricted Period for such Covered Units, the Participant
shall become vested in the Installment of Covered Units.  With respect to all Covered Units, the
applicable Restricted Period shall begin on the Grant Date.  The Restricted Period with respect to each
Installment shown on the schedule shall end on the Vesting Date applicable to
such Installment:

	
  INSTALLMENT

  	
   

  	
  VESTING DATE APPLICABLE TO

  INSTALLMENT

  
	
        % of Covered Units

  	
   

  	
  Immediately on date of Grant Date

  
	
        % of Covered Units

  	
   

  	
   

  
	
        % of Covered Units

  	
   

  	
   

  
	
        % of Covered Units

  	
   

  	
   

  

 

Notwithstanding
the foregoing provisions of this paragraph 3, the Participant shall become
vested in the Covered Units prior to the end of the Restricted Period as
follows:

(a)                                  The
Participant shall become vested in all Covered Units prior to the date the
Covered Units would otherwise become vested, if the Employment Agreement is
terminated by the Company without Cause or by reason of Constructive Discharge.

(b)                                 In
the event of a Change of Control or Recapitalization of the Company, the
portion of the Participant’s Covered Units which have not become vested as of
the date of the Change of Control or Recapitalization shall immediately vest
concurrently with the closing of such Change of Control or Recapitalization.

Subject to the additional restrictions on transferability set forth
from time to time in the LLC Agreement, Covered Units may not be sold,
assigned, transferred, pledged or otherwise encumbered until the expiration of
the Restricted Period or, if earlier, until the Participant is vested in the
Covered Units; provided, however, that if required by Participant’s lender
described in Section 11.17 of the LLC Agreement,  Participant shall be permitted to pledge all
of Participant’s Covered Units to such lender. 
Except as otherwise provided in this paragraph 3, the Participant shall
forfeit the unvested portion of the Covered Units as of a Date of Termination
that occurs during the Restricted Period

4.             Definitions.  For purposes of this Agreement, the terms
used in this Agreement shall be subject to the following:

(a)                                  Business.  The term “Business” shall mean any business
conducted, engaged in or proposed to be conducted or engaged in by the Company
or any of its direct or indirect parents or subsidiaries as of the Grant Date
or at any time during the Participant’s 
performance of consulting services to the Company or its direct or
indirect parents or subsidiaries.

 2
 

(b)                                 Cause.  The term “Cause” shall mean the valid
termination by Company of Participant’s Employment Agreement, pursuant to               
of the Employment Agreement.

(c)                                  Change
of Control.  The term “Change of
Control” shall have the meaning ascribed to such term in the LLC Agreement.

(d)                                 Constructive
Discharge.  A Participant shall be
considered to have been subject to a “Constructive Discharge” by the Company or
its successor if, without the Participant’s express written consent (and except
as a result of a prior termination of the Participant’s Employment Agreement),
(i) the compensation to which Participant is entitled under the Employment
Agreement is materially reduced or (ii) the Participant’s authority,
perquisites, position or responsibility as set forth in the Employment
Agreement are materially diminished, in each case, other than as a result of a
breach by Participant under the Employment Agreement.

(e)                                  Date
of Termination.  The term “Date of
Termination” means the date the Company validly terminates the Employment
Agreement.

(f)                                    Employment
Agreement.  The term “Employment
Agreement” shall mean that certain Employment Agreement between Company and
Participant dated as of                     ,
as the same may be amended or restated from time to time.

(g)                                 LLC
Agreement.  The term “LLC Agreement”
means the Second Amended and Restated Limited Liability Company Agreement of
Peninsula Gaming Partners, LLC, as the same may be amended or restated from
time to time.

(h)                                 Recapitalization.  The term Recapitalization shall mean any
recapitalization, refinancing, or reclassification of the equity securities of
the Company or any of its direct or indirect parents or subsidiaries (whether
by recapitalization, refinancing, reclassification, merger, consolidation,
transfer of equity securities or otherwise), other than a Permitted C-Corp.
Conversion (as defined in the LLC Agreement).

(i)                                     Restricted
Period.  The term “Restricted Period”
shall have the meaning ascribed to it in paragraph 3 above.

(j)                                     Units.  The term “Units” shall have the meaning
ascribed to it in the LLC Agreement.

(k)                                  Plan
and LLC Agreement Definitions. 
Except where the context clearly implies or indicates the contrary, a
word, term, or phrase used in the Plan or LLC Agreement is similarly used in
this Agreement.

5.             Heirs and Successors.  This Agreement shall be binding upon, and
inure to the benefit of, the Company and its successors and assigns, and upon
any person acquiring, whether by merger, consolidation, purchase of assets or
otherwise, all or substantially all of the Company’s assets and business.  Subject to the transfer restrictions and
rights and options contained in Article XI of the LLC Agreement, the Personal
Representative of a deceased or Disabled Participant shall succeed to the
ownership of the Participant’s Covered Units. 
The death or disability of the Principal shall give the other Members of
the Company and the 

 3
 

Company,
respectively, the right and option to acquire the Covered Units from the
Participant under the terms and conditions of Sections 11.5 and 11.6 of the LLC
Agreement, as if the Principal, and not the Participant, was the “Decedent
Individual Member” as defined in Section 11.5 of the LLC Agreement, or the “Affected
Member” as defined in Section 11.6 of the LLC Agreement.

6.             Administration.  The authority to manage and control the
operation and administration of this Agreement shall be vested in the Board
(except as delegated), and the Board shall have all powers with respect to this
Agreement as it has with respect to the Plan. 
Any interpretation of the Agreement by the Board or its delegates and
any decision made by either of them with respect to the Agreement is final and
binding.

7.             Plan and LLC Agreement Govern.  Notwithstanding anything in this Agreement to
the contrary, the terms of this Agreement shall be subject to the terms of the
Plan and the LLC Agreement, copies of which may be obtained by the Participant
from the office of the Secretary of the Company.  Participant shall evidence Participant’s
agreement to be subject to all terms and conditions of the LLC Agreement by
execution of the a counterpart to the LLC Agreement, if not already a Member.

8.             Legend.  In addition to legends required under the LLC
Agreement, including, without limitation, and legends required under the Gaming
Laws, each certificate for Covered Units shall contain a legend reading
substantially as follows:

ANY SALE, ASSIGNMENT, TRANSFER, PLEDGE, OR OTHER
DISPOSITION OF THE UNITS REPRESENTED BY THIS CERTIFICATE IS RESTRICTED BY, AND
SUBJECT TO, THE TERMS AND PROVISIONS OF THE PENINSULA GAMING PARTNERS LLC
AMENDED AND RESTATED 2004 INCENTIVE UNIT PLAN, AND AN AWARD AGREEMENT, ENTERED
INTO THEREUNDER.  A COPY OF THE PLAN AND
AWARD AGREEMENT ARE ON FILE WITH THE SECRETARY OF THE COMPANY.  BY ACCEPTANCE OF THIS CERTIFICATE, THE HOLDER
HEREOF AGREES TO BE BOUND BY THE TERMS OF THE PLAN AND AWARD AGREEMENT.

9.             Purchase Option.  Participant acknowledges that the Covered
Units are subject to the transfer restrictions set forth in the LLC Agreement.

10.           Taxes.  For purposes of complying with Section 7.3 of
the LLC Agreement, the aggregate “Capital Accounts” of the Members immediately
prior to the grant of Covered Units pursuant to this Agreement will be revalued
pursuant to Treasury Regulation Section 1.704-1(b)(2)(iv) and in the aggregate
shall equal $                ($              
per Unit).  No credit shall be made to
the Capital Account of the Participant in connection with the grant of Covered
Units. Participant assumes all responsibility for any and all potential tax
liability on account of this Agreement and the issuance of the Covered
Units.  If Participant makes any tax
election relating to the treatment of Covered Units under the Internal Revenue
Code, at the time of such election Participant shall promptly notify Company of
such election.

11.           Amendment.  Subject to compliance with applicable Gaming
Laws, this Agreement may be amended in accordance with the provisions of the
Plan, and may otherwise be 

 4
 

amended by written
agreement of the Participant and the Company without the consent of any other
person.

12.           Applicable Law.  The provisions of this Agreement shall be
construed in accordance with the laws of the State of Delaware, without regard
to the conflict of law provisions of any jurisdiction.  With respect to matters having to do with
Gaming Laws, this Agreement shall be governed by the laws of the States
properly asserting jurisdiction as to those matters.  Any and all disputes, claims or controversies
of any and every kind or nature whatsoever arising from or regarding any of the
terms or provisions of this Agreement, as well as arising from or regarding any
aspect of the termination of this Agreement, shall be settled and concluded by
final and binding arbitration as provided in the Employment Agreement.

13.           Gaming Control.  No Covered Units and no interest, claim, or
charge therein or thereto shall be transferred in any manner whatsoever except
in accordance with the provisions of the Gaming Laws.  Any transfer in violation thereof shall be
ineffective.  If a Gaming Authority finds
that Participant or a Principal is unsuitable to hold or continue to hold
gaming licenses with respect to the Company or if Participant or the Principal
shall voluntarily surrender his, her, or its gaming license, then the
Participant found to be unsuitable or otherwise surrendering his, her, or its
license shall sell, and the Company shall purchase, his, her, or its Covered
Units within such time frame and at the price required under the Gaming Laws,
and if not otherwise so provided, at the price set forth in the LLC Agreement.

14.           Securities Law Compliance.  Covered Units have not been registered under
the Securities Act and are being, issued to Participant in reliance upon the
exemption from such registration provided by Section 4(2) of the Securities
Act.  As an inducement to Company to
issue Covered Units to Participant, and in order to establish the suitability
of Participant for such an investment, Participant hereby represents and
warrants to Company as set forth on attached Exhibit A.

15.           Principal. The Principal shall
evidence the acceptance of the benefits of this Agreement and shall be bound by
all of the terms and conditions of this Agreement, as though a Party hereto, by
Principal’s execution of this Agreement at the line provided below.

16.           Consent of Spouse.   Participant/Principal covenants that all
right, title and interest in and to Participant Units whether separate or
community property, shall be governed by this Agreement and the LLC Agreement,
and the spouse of Participant/Principal shall execute the consent attached
hereto as Exhibit B.  It is
expressly acknowledged that in case of divorce, the spouse executing the
attached consent hall have no continuing interest in the Company and said
spouse does hereby waive any right to a continuing interest.  Any interest said spouse may have shall be
determined by the divorce court in the form of a money order or judgment
against Participant/Principal.

 5
 

IN WITNESS WHEREOF, the Participant has executed this
Agreement, and the Company has caused these presents to be executed in its name
and on its behalf, all as of the Grant Date.

 

	
  

  	
   

  	
   

  
	
  Participant

  	
   

  
	
   

  	
   

  
	
   

  	
  Peninsula Gaming
  Partners, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Its:

  	
   

  	
   

  
	
   

  	
   

  
	
  AGREED AND
  ACCEPTED:

  	
   

  
	
   

  	
   

  
	
  Principal

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
				

 

 6
 

EXHIBIT A

SECURITIES
REPRESENTATIONS

COMPANY:                                                                              Peninsula
Gaming Partners,  LLC, a Delaware limited
liability company.

SECURITY:                                                                                  Covered
Units as defined in the INCENTIVE UNIT AWARD AGREEMENT to which this is an
Exhibit.

In connection with
the acquisition of the above-listed Security, Participant, represents and
warrants to Company the following:

(a)           Participant has such knowledge and
experience  in financial and business
matters that Participant is capable of evaluating the merits and risks of the
acquisition of the Security in return for the performance of the services.
Participant is aware that the performance of the Consulting Services in return
for the issuance of the Security involves a high degree of risk, and
Participant and Participant’s owners have sufficient economic resources to bear
the economic risk of the investment in the Security.  Participant is aware of Company’s business
affairs and financial condition and has acquired sufficient information about
Company to reach an informed and knowledgeable decision to acquire the
Security. Participant is  purchasing the
Security for Participant’s own account for investment purposes only and not
with a view to, or for the resale in connection with, any “distribution”
thereof for purposes of the Securities Act of 1933 (“Securities Act”).

(b)           Participant understands that in
connection with the transfer of the Security to Participant, the Company is
relying upon a specific exemption under the Securities Act, which exemption
depends upon, among other things, the bona fide nature of Participant’s  investment intent as expressed herein.  In this connection Participant understand
that, in the view of the Securities and Exchange Commission (“SEC”), the
statutory basis for such exemption may be unavailable if Participants
representations are predicated solely upon a present intention to hold the
Security for the minimum capital gains period specified under tax statutes, for
a deferred sale, for or until an increase or decrease in the market price of
the Security or for a period of one year or any other fixed period in the
future.

(c)           Participant further understand that
the Security must be held indefinitely unless subsequently registered under the
Securities Act or unless an exemption from registration is otherwise available.
Moreover, Participant understand that Company is under no obligation to
register the Security.

(d)           Participant is aware of the
provisions of Rule 144, promulgated under the Securities Act, which in
substance, permits limited public resale of “restricted securities” acquired,
directly or indirectly from the issuer thereof (or from an affiliate of such
issuer), in a non-public offering subject to the satisfaction of certain
conditions, including, among other things: 
The availability of certain public information about Company; the resale
occurring not less than two years after the party has purchased and paid for
the securities to be sold; the sale being made through a broker in an
unsolicited “broker’s transaction” or in transactions directly 

 7
 

with a market
maker (as said term is defined under the Securities Exchange Act of 1934) and
the amount of securities being sold during any three-month period not exceeding
the specified limitations stated therein.

(e)           Participant further understand that
at the time Participant wishes to sell the Security there may be no public
market upon which to make such a sale, and that, even if such a public market
then exists Company may not be satisfying the current public information
requirements of Rule 144, and that, in such event, Participant would be
precluded from selling the Security under Rule 144 even if the two-year minimum
holding period had been satisfied.

(f)            Participant further understands that
in the event all of the requirements of Rule 144 are not satisfied,
registration under the Securities Act, compliance with Regulation A or some
other registration exemption will be required; and that, notwithstanding the
fact that Rule 144 is not exclusive, the staff of the SEC has expressed its
opinion that  proposing to sell private
placement securities other than in a registered offering and otherwise than
pursuant to Rule 144 will have a substantial burden of proof in establishing
that an exemption from registration is available for such offers or sales and
that such Persons and their respective brokers who participate in such
transaction do so at their own risk.

(g)           Participant has had access to the
books and records of Company which has enabled Participant to obtain
information concerning Company in order to evaluate the merits and risks of the
investment in the Security.  Participant
has been furnished any documents, records, and other information relating to
Company which Participant has requested and has been afforded the opportunity
to obtain any additional information necessary to verify the accuracy of any
information provided by Company.

(h)           Participant recognizes and covenants
that the certificate for the Security will bear the legends set forth in the
Agreement.

	
  DATED:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  

 

 8
 

EXHIBIT B

SPOUSE’S CONSENT

I acknowledge that I have read the foregoing Agreement
and that I know its contents.  I hereby
approve of the provisions of the Agreement, and agree that the Units held by my
spouse in the Company and my interest in them are subject to the provisions of
the Agreement and that I will take no action at any time to hinder operation of
the Agreement on those Units or my interest in them.

I acknowledge and agree that any community property
interest held by me in the Units shall be governed by the terms of the
Agreement as though entirely owned by my spouse as his separate property.

I further acknowledge and agree that my spouse has and
will continue to have the right, power and authority to represent and bind the
community on all matters relating to such interest, and I appoint my spouse as
attorney-in-fact for such purpose.  In
the event of dissolution of our marriage, I agree that I will not, in any
divorce proceeding or agreement settling community or other property rights and
obligations between my spouse and myself, seek to become a legal or beneficial
owner of, or holder of a security interest in, any Units subject to this Agreement.

Dated the       day
of                , 2004.

	
  

  	
   

  
	
   

  	
  Spouse of
  Participant/Principal

  

 

 9

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