Document:

Exhibit 4.1

 

THE SECURITY REPRESENTED BY THIS CERTIFICATE WAS ORIGINALLY ISSUED ON MARCH 8,
2010, AND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED.  THIS WARRANT IS
NON-TRANSFERABLE, AND IS SUBJECT TO CERTAIN OTHER RESTRICTIONS SET FORTH
HEREIN, AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT ARE SUBJECT
TO CERTAIN TRANSFER AND OTHER RESTRICTIONS PURSUANT TO CERTAIN “GAMING LAWS”
(AS DEFINED HEREIN). THE ISSUER HEREOF (AS DEFINED BELOW, THE “COMPANY”)
RESERVES THE RIGHT TO REFUSE THE TRANSFER OF THIS WARRANT AND THE SECURITIES
ISSUABLE UPON EXERCISE OF THIS WARRANT EXCEPT IN ACCORDANCE WITH THE TERMS AND
CONDITIONS OF THIS WARRANT, A COPY OF WHICH SHALL BE FURNISHED WITHOUT CHARGE
BY THE COMPANY TO THE REGISTERED HOLDER HEREOF UPON WRITTEN REQUEST.

 

THE COMPANY IS CURRENTLY LICENSED OR REGISTERED OR HAS APPLIED FOR A
LICENSE OR REGISTRATION WITH CERTAIN “GAMING AUTHORITIES” (AS DEFINED
HEREIN) AND IS SUBJECT TO CERTAIN GAMING LAWS. 
THE PURPORTED SALE, ASSIGNMENT, TRANSFER, RESTRICTION OF TRANSFER,
PLEDGE, NEGATIVE PLEDGE, GRANTING OF ANY OPTION TO PURCHASE OR OTHER SIMILAR
TRANSACTION INVOLVING SUCH WARRANT SHALL BE INEFFECTIVE UNLESS IN ACCORDANCE
WITH THE APPLICABLE GAMING LAWS WHICH MAY INCLUDE PRIOR APPROVAL OF ONE OR
MORE GAMING AUTHORITIES.  IF AT ANY TIME
A REGISTERED HOLDER HEREOF BECOMES AN “UNSUITABLE PERSON” (AS DEFINED
HEREIN), THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT
SHALL BE SUBJECT TO REPURCHASE PURSUANT TO THE TERMS SET FORTH HEREIN.  BEGINNING ON THE DATE WHEN A GAMING AUTHORITY
SERVES NOTICE OF UNSUITABILITY UPON THE COMPANY, OR THE DATE WHEN THE
REGISTERED HOLDER OTHERWISE BECOMES AN UNSUITABLE PERSON, IT SHALL BE UNLAWFUL
FOR THE UNSUITABLE PERSON: (A) TO RECEIVE ANY DIVIDEND OR INTEREST OR ANY
PAYMENT OR DISTRIBUTION OF ANY KIND, INCLUDING OF ANY SHARE OF THE DISTRIBUTION
OF PROFITS OR CASH OR ANY OTHER PROPERTY, OR PAYMENTS UPON DISSOLUTION, FROM
THE COMPANY, OTHER THAN A RETURN OF CAPITAL AS REQUIRED ABOVE; (B) TO
EXERCISE DIRECTLY OR THROUGH ANY PROXY, TRUSTEE OR NOMINEE ANY VOTING RIGHT
CONFERRED BY THE REGISTERED HOLDER’S INTEREST IN THE COMPANY; (C) TO
PARTICIPATE IN THE MANAGEMENT OF THE COMPANY; (D) TO RECEIVE ANY
REMUNERATION (OTHER THAN THE REPURCHASE PRICE) IN ANY FORM FROM THE
COMPANY OR FROM 

 

 

ANY COMPANY HOLDING A GAMING LICENSE FOR SERVICES RENDERED OR
OTHERWISE; OR (E) TO CONTINUE IN AN OWNERSHIP OR ECONOMIC INTEREST IN THE
COMPANY OR ANY “AFFILIATED COMPANY” (AS DEFINED HEREIN).

 

IN ADDITION, THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS
WARRANT ARE SUBJECT TO RESTRICTIONS AND RIGHTS OF REPURCHASE CONTAINED IN THE
COMPANY’S ARTICLES OF INCORPORATION, AS THE SAME MAY BE AMENDED FROM TIME
TO TIME.

 

TROPICANA
ENTERTAINMENT INC.

 

STOCK
PURCHASE WARRANT

 

	
  Date of Issuance:
  March 8, 2010

  	
   

  	
  Certificate
  No. W-[    ]

  

 

FOR VALUE RECEIVED, Tropicana Entertainment Inc., a
Delaware corporation (the “Company”), hereby grants to [                            ]
(the “Registered Holder”) the right to purchase from the Company [                            ]
 shares of Warrant Stock at a
price per share of $0.01 (as adjusted from time to time hereunder, the “Exercise
Price”).  This Warrant is one of
several warrants (collectively, the “Warrants”) issued pursuant to the
terms of the Credit Agreement, dated as of December 29, 2009 (the “Credit
Agreement”), between the Company and certain lenders.  Certain capitalized terms used herein are
defined in Section 4.  The
amount and kind of securities obtainable pursuant to the rights granted
hereunder and the purchase price for such securities are subject to adjustment
pursuant to the provisions contained in this Warrant.

 

This Warrant is subject
to the following provisions:

 

Section 1.               Exercise
of Warrant.

 

1A.          Exercise
Period.  The Registered Holder may
exercise, in whole or in part, the purchase rights represented by this Warrant
at any time and from time to time after the Date of Issuance to and including June 5,
2010 (the “Exercise Period”).  The
Company shall give the Registered Holder written notice of the expiration of
the Exercise Period at least 30 days but not more than 60 days prior to the end
of the Exercise Period.

 

1B.          Exercise
Procedure.

 

(i)            This
Warrant shall be deemed to have been exercised when the Company has received
all of the following items (the “Exercise Time”):

 

(a)           a completed Exercise
Agreement, as described in paragraph 1C, executed by the Person
exercising all or part of the purchase rights represented by this Warrant (the “Purchaser”);

 

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(b)           this Warrant; and

 

(c)           a check payable to
the Company in an amount equal to the product of the Exercise Price multiplied
by the number of shares of Warrant Stock being purchased upon such exercise
(the “Aggregate Exercise Price”).

 

(ii)           Certificates
for shares of Warrant Stock purchased upon exercise of this Warrant shall be
delivered by the Company to the Purchaser within five business days after the
date of the Exercise Time.  Unless this
Warrant has expired or all of the purchase rights represented hereby have been
exercised, the Company shall prepare a new Warrant, substantially identical
hereto, representing the rights formerly represented by this Warrant which have
not expired or been exercised and shall, within such five-day period, deliver
such new Warrant to the Person designated for delivery in the Exercise
Agreement.

 

(iii)          The
Warrant Stock issuable upon the exercise of this Warrant shall be deemed to
have been issued to the Purchaser at the Exercise Time, and the Purchaser shall
be deemed for all purposes to have become the record holder of such Warrant
Stock at the Exercise Time.

 

(iv)          The
issuance of certificates for shares of Warrant Stock upon exercise of this
Warrant shall be made without charge to the Registered Holder or the Purchaser
for any issuance tax in respect thereof or other cost incurred by the Company
in connection with such exercise and the related issuance of shares of Warrant
Stock.  Each share of Warrant Stock
issuable upon exercise of this Warrant shall, upon payment of the Exercise
Price therefor, be fully paid and nonassessable and free from all liens and
charges with respect to the issuance thereof.

 

(v)           The
Company shall not close its books against the transfer of this Warrant or of any
share of Warrant Stock issued or issuable upon the exercise of this Warrant in
any manner which interferes with the timely exercise of this Warrant.  The Company shall from time to time take all
such action as may be necessary to assure that the par value per share of the
unissued Warrant Stock acquirable upon exercise of this Warrant is at all times
equal to or less than the Exercise Price then in effect.

 

(vi)          The
Company shall assist and cooperate with any Registered Holder or Purchaser
required to make any governmental filings or obtain any governmental approvals
prior to or in connection with any exercise of this Warrant (including, without
limitation, making any filings required to be made by the Company).

 

(vii)         Notwithstanding
any other provision hereof, if an exercise of any portion of this Warrant is to
be made in connection with a registered public offering or the sale of the
Company, the exercise of any portion of this Warrant may, at the election of
the holder hereof, be conditioned upon the consummation of the public offering
or the sale of the Company in which case such exercise shall not be deemed to
be effective until the consummation of such transaction.

 

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(viii)        The
Company shall at all times reserve and keep available out of its authorized but
unissued shares of Warrant Stock solely for the purpose of issuance upon the
exercise of the Warrants, such number of shares of Warrant Stock issuable upon
the exercise of all outstanding Warrants.  The Company shall take all such actions as may
be necessary to assure that all such shares of Warrant Stock may be so issued
without violation of any applicable law or governmental regulation or any
requirements of any domestic securities exchange upon which shares of Warrant
Stock may be listed (except for official notice of issuance which shall be
immediately delivered by the Company upon each such issuance).  The Company shall not take any action which
would cause the number of authorized but unissued shares of Warrant Stock to be
less than the number of such shares required to be reserved hereunder for
issuance upon exercise of the Warrants.

 

(ix)           Upon
any exercise of this Warrant, the Company may require customary investment
representations from the Registered Holder and the Purchaser to assure that the
issuance of the Warrant Stock hereunder shall not require registration or
qualification under the Securities Act or any state securities laws.

 

1C.          Exercise
Agreement.  Upon any exercise of this
Warrant, the Exercise Agreement shall be substantially in the form set forth in
Exhibit I hereto, except that if the shares of Warrant Stock are
not to be issued in the name of the Person in whose name this Warrant is
registered, the Exercise Agreement shall also state the name of the Person to
whom the certificates for the shares of Warrant Stock are to be issued, and if
the number of shares of Warrant Stock to be issued does not include all the
shares of Warrant Stock purchasable hereunder, it shall also state the name of
the Person to whom a new Warrant for the unexercised portion of the rights
hereunder is to be delivered.  Such
Exercise Agreement shall be dated the actual date of execution thereof.

 

1D.          Exercise
Subject to Gaming Approval. 
Notwithstanding any other provision of this Warrant, the Registered
Holder of this Warrant may only exercise this Warrant upon receipt of any and
all required gaming approvals, including without limitation, findings of
suitability or licensing requirements from the applicable Gaming Authorities,
or waivers or exemptions from such required gaming approvals (collectively, the
“Gaming Approvals”).  The costs of
obtaining Gaming Approval and meeting any other requirements that the Gaming
Authorities may impose in connection with such exercise shall be borne solely
by the Registered Holder.  The Company
may require, as a condition to the exercise of this Warrant, that the
Registered Holder either (a) certify to the Company that, upon exercise of
this Warrant, the Registered Holder will be the beneficial owner of less than
five percent (5%) of the outstanding Common Stock, or (b) submit proof of
having obtained the requisite Gaming Approvals or an opinion of counsel,
reasonably satisfactory to the Company, that no Gaming Approvals are
required.  For purposes of this Section 1D,
beneficial ownership shall be determined in accordance with Rule 13d-3
under the Exchange Act.

 

Section 2.               Adjustment
of Exercise Price and Number of Shares. 
In order to prevent dilution of the rights granted under this Warrant,
the Exercise Price shall be subject to adjustment from time to time as provided
in this Section 2, and the number of shares of Warrant

 

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Stock obtainable upon
exercise of this Warrant shall be subject to adjustment from time to time as
provided in this Section 2.

 

2A.          Subdivision
or Combination of Common Stock.  If
the Company at any time subdivides (by any stock split, stock dividend,
recapitalization or otherwise) one or more classes of its outstanding shares of
Common Stock into a greater number of shares, the Exercise Price in effect
immediately prior to such subdivision shall be proportionately reduced and the
number of shares of Warrant Stock obtainable upon exercise of this Warrant shall
be proportionately increased.  If the
Company at any time combines (by reverse stock split or otherwise) one or more
classes of its outstanding shares of Common Stock into a smaller number of
shares, the Exercise Price in effect immediately prior to such combination
shall be proportionately increased and the number of shares of Warrant Stock
obtainable upon exercise of this Warrant shall be proportionately decreased.

 

2B.          Reorganization,
Reclassification, Consolidation, Merger or Sale.  Any recapitalization, reorganization,
reclassification, consolidation, merger, sale of all or substantially all of
the Company’s assets or other transaction, which in each case is effected in
such a way that the holders of Common Stock are entitled to receive (either directly
or upon subsequent liquidation) stock, securities or assets with respect to or
in exchange for Common Stock is referred to herein as “Organic Change.”  Prior to the consummation of any Organic
Change, the Company shall make appropriate provision (in form and substance
satisfactory to the Registered Holders of the Warrants representing a majority
of the Warrant Stock obtainable upon exercise of all Warrants then outstanding)
to insure that each of the Registered Holders of the Warrants shall thereafter
have the right to acquire and receive, in lieu of or addition to (as the case
may be) the shares of Warrant Stock immediately theretofore acquirable and
receivable upon the exercise of such holder’s Warrant, such shares of stock,
securities or assets as would have been issued or payable in such Organic
Change (if the holder had exercised this Warrant immediately prior to such
Organic Change) with respect to or in exchange for the number of shares of
Warrant Stock immediately theretofore acquirable and receivable upon exercise
of such holder’s Warrant had such Organic Change not taken place.  In any such case, the Company shall make
appropriate provision (in form and substance satisfactory to the Registered
Holders of the Warrants representing a majority of the Warrant Stock obtainable
upon exercise of all Warrants then outstanding) with respect to such holders’
rights and interests to insure that the provisions of this Section 2
and Section 3 shall thereafter be applicable to the Warrants.  The Company shall not effect any such
consolidation, merger or sale, unless prior to the consummation thereof, the
successor entity (if other than the Company) resulting from consolidation or
merger or the entity purchasing such assets assumes by written instrument (in form
and substance satisfactory to the Registered Holders of Warrants representing a
majority of the Warrant Stock obtainable upon exercise of all of the Warrants
then outstanding), the obligation to deliver to each such holder such shares of
stock, securities or assets as, in accordance with the foregoing provisions,
such holder may be entitled to acquire.

 

5

 

2C.          Notices.

 

(i)            Immediately
upon any adjustment of the Exercise Price, the Company shall give written
notice thereof to the Registered Holder, setting forth in reasonable detail and
certifying the calculation of such adjustment.

 

(ii)           The
Company shall give written notice to the Registered Holder at least 20 days
prior to the date on which the Company closes its books or takes a record (A) with
respect to any dividend or distribution upon the Common Stock, (B) with
respect to any pro rata subscription offer to
holders of Common Stock or (C) for determining rights to vote with respect
to any Organic Change, dissolution or liquidation.

 

(iii)          The
Company shall also give written notice to the Registered Holders at least 20
days prior to the date on which any Organic Change, dissolution or liquidation
shall take place.

 

Section 3.               Liquidating
Dividends.  If the Company declares
or pays a dividend upon the Common Stock payable otherwise than in cash out of
earnings or earned surplus (determined in accordance with generally accepted
accounting principles, consistently applied) except for a stock dividend
payable in shares of Common Stock (a “Liquidating Dividend”), then the
Company shall pay to the Registered Holder of this Warrant at the time of
payment thereof the Liquidating Dividend which would have been paid to such
Registered Holder on the Warrant Stock had this Warrant been fully exercised
immediately prior to the date on which a record is taken for such Liquidating
Dividend, or, if no record is taken, the date as of which the record holders of
Common Stock entitled to such dividends are to be determined.

 

Section 4.               Definitions.  The following terms have meanings set forth
below:

 

“Affiliate” shall have the meaning ascribed to
such term in Rule 12b-2 promulgated by the Securities and Exchange
Commission (the “SEC”) under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”).

 

“Affiliated Companies” shall mean
those companies directly or indirectly affiliated or under common Ownership or
Control with the Company, including, without limitation, subsidiaries, holding
companies and intermediary companies (as those and similar terms are defined in
the Gaming Laws of the applicable Gaming Jurisdictions) that are registered or
licensed under applicable Gaming Laws.

 

“Board of Directors” means the board of
directors of the Company.

 

“Common Stock” means, collectively, the Company’s
Common Stock and any capital stock of any class of the Company hereafter
authorized which is not limited to a fixed sum or percentage of par or stated
value in respect to the rights of the holders thereof to participate in dividends
or in the distribution of assets upon any liquidation, dissolution or winding
up of the Company.

 

6

 

“Company Debt Securities” means any debt
securities of the Company having such terms and conditions as shall be approved
by the Company and, which, shall comprise all or a portion of the repurchase
price.

 

“Fair Value” shall
mean the value of this Warrant or the securities, assets or other property,
issued pursuant to the exercise of this Warrant as determined in good faith by
the Board of Directors; provided, however, if at any time such securities are
traded on a securities exchange or through the Nasdaq National Market (“Listed
Common Stock”), then the “Fair Value” shall be deemed to be the closing
price of the securities on such exchange or quotation system, or, if there has
been no sales on any such exchange or quotation system on any day, the average of
the highest bid and lowest asked prices on such exchange or quotation system as
of 4:00 p.m., New York time (the “Listed Fair Value”).

 

“Gaming” or “Gaming Activities” shall
mean the conduct of gaming and gambling activities, race books and sports pools, or the use of gaming devices, equipment
and supplies in the operation of a casino, simulcasting facility, card club or
other enterprise, including, without limitation, slot machines, gaming tables,
cards, dice, gaming chips, player tracking systems, cashless wagering systems
and related and associated equipment and supplies.

 

“Gaming Authorities” shall mean all
Governmental Authorities with authority over Gaming within any Gaming
Jurisdiction, and shall include all Liquor Authorities.

 

“Gaming Jurisdictions” shall mean all
jurisdictions, domestic and foreign, and their political subdivisions, in which
Gaming Activities are lawfully conducted.

 

“Gaming Laws” shall mean all laws, statutes and
ordinances pursuant to which any Gaming Authority possesses regulatory and
licensing authority over Gaming within any Gaming Jurisdiction, all orders,
decrees, rules and regulations over Gaming promulgated by such Gaming
Authority thereunder, all written and unwritten policies of the Gaming
Authorities, and all interpretations by the Gaming Authorities of laws,
statutes, ordinances, rules and regulations.

 

“Gaming Licenses” shall mean all licenses,
permits, approvals, authorizations, registrations, findings of suitability,
franchises and entitlements issued by a Gaming Authority necessary for or
relating to the conduct of Gaming Activities.

 

“Governmental Authority” shall mean any
government or any agency, public or regulatory authority, licensing body,
instrumentality, department, commission, court, arbitrator, ministry, tribunal
or board of any government or political subdivision thereof, in each case,
whether foreign or domestic and whether national, federal, tribal, state,
regional, local or municipal.

 

“Liquor Authorities” shall mean all
Governmental Authorities with regulatory and licensing authority over the sale
or service of alcoholic beverages within any Gaming Jurisdiction.

 

“Ownership or Control” (and derivatives
thereof) shall mean (i) ownership of record, (ii) “beneficial
ownership” as defined in Rule 13d-3 or Rule 16a-1(a)(2) promulgated
by

 

7

 

the SEC under the
Exchange Act, (iii) the power to direct and manage, by agreement,
contract, agency or other manner, the voting or management rights or disposition
of securities of the Company, and/or (iv) definitions of ownership or
control under applicable Gaming Laws.

 

“Person” shall mean an individual, partnership,
corporation, limited liability company, trust or other entity.

 

“Plan” shall mean the First Amended Joint Plan of Reorganization of Tropicana
Entertainment, LLC and Certain of Its Debtor Affiliates Under Chapter 11 of the
Bankruptcy Code.

 

“Redemption Date” shall mean the date set forth
in the Redemption Notice by which the securities Owned or Controlled by an
Unsuitable Person are to be redeemed by the Company.

 

“Redemption Notice” shall mean that notice of
redemption sent by the Company to an Unsuitable Person (or an Affiliate
thereof) if (x) a Gaming Authority requires the Company, or (y) the
Board of Directors, in its discretion and based on reasonably verifiable
information or information received from a Gaming Authority, deems it necessary
or advisable, to redeem such Unsuitable Person’s securities. Each Redemption
Notice shall set forth: (i) the Redemption Date; (ii) the number of
shares of securities to be redeemed; (iii) the Redemption Price and the
manner of payment therefor; (iv) the place where certificates for such
shares shall be surrendered for payment; and (v) any other requirements of
surrender of the certificates, including how they are to be endorsed, if at
all.

 

“Redemption Price” shall mean the per share
price for the repurchase of this Warrant, or securities issuable upon exercise
of this Warrant, pursuant to Section 7 hereof, which shall be that
price (if any) required by the Gaming Authority making the finding of
unsuitability to be paid, or if such Gaming Authority does not require a
certain price per share to be paid, the Redemption Price shall be equal to the
lesser of the Fair Value of the Repurchase Securities on the Date of Issuance
or the Fair Value of the Repurchase Securities on the Redemption Date.

 

“Unsuitable Person” shall mean a Person who
Owns or Controls any securities of the Company or any securities of or interest
in any Affiliated Company (i) that is determined by a Gaming Authority, or
that has been notified by the staff of a Gaming Authority that it will
recommend that the Gaming Authority determine the Person to be, unsuitable,
unqualified or disqualified to Own or Control such securities or unsuitable to
be connected with a Person engaged in Gaming Activities in that Gaming
Jurisdiction, or (ii) who, in the discretion of the Board of Directors,
based on reasonably verifiable information or information received from a
Gaming Authority, is deemed likely to preclude or materially delay, impede,
impair or jeopardize the Company’s or any Affiliated Company’s application for
or ability to obtain, right to the use of or ability to reinstate or retain any
Gaming License, or to result in the imposition of materially burdensome terms
of or conditions on any Gaming License

 

“Warrant Stock” means the Company’s Common
Stock, par value $0.01 per share; provided that if there is a change
such that the securities issuable upon exercise of the Warrants

 

8

 

are issued by an entity
other than the Company or there is a change in the type or class of securities
so issuable, then the term “Warrant Stock” shall mean one share of the security
issuable upon exercise of the Warrants if such security is issuable in shares,
or shall mean the smallest unit in which such security is issuable if such
security is not issuable in shares.

 

Other capitalized terms used in this Warrant but not
defined herein shall have the meanings set forth in the Plan.

 

Section 5.       No Voting Rights; Limitations of
Liability.  This Warrant shall not
entitle the holder hereof to any voting rights or other rights as a stockholder
of the Company.  No provision hereof, in
the absence of affirmative action by the Registered Holder to purchase Warrant
Stock, and no enumeration herein of the rights or privileges of the Registered
Holder shall give rise to any liability of such holder for the Exercise Price
of Warrant Stock acquirable by exercise hereof or as a stockholder of the
Company.

 

Section 6.               Warrant
Not Transferable.  This Warrant is
not transferable, in whole or in part. 
This Warrant may only be exercised by the Registered Holder hereof.

 

Section 7.               Repurchase
of Warrants.  If at any time (x) a
Gaming Authority finds that a Registered Holder hereof is an Unsuitable Person,
or (y) the Board of Directors, in its discretion and based on reasonably
verifiable information or information received from a Gaming Authority deems it
necessary or advisable, this Warrant and the securities issuable upon exercise
of this Warrant (together, the “Repurchase Securities”) shall be subject
to repurchase by the Company at any time at the sole discretion of the
Company.  The terms and conditions of
such repurchase shall be as follows:

 

1.               the Company
shall serve a Redemption Notice on the Registered Holder and shall purchase this Warrant or the securities issuable
upon exercise of this Warrant on the Redemption Date and for the Redemption
Price set forth in the Redemption Notice;

 

2.               from and after
the Redemption Date, such securities shall no longer be deemed to be
outstanding and all rights of the Unsuitable Person or any Affiliate of the
Unsuitable Person therein, other than the right to receive the Redemption
Price, shall cease;

 

3.               the Unsuitable
Person shall surrender the certificates for any securities to be redeemed in
accordance with the requirements of the Redemption Notice;

 

4.               the Redemption Price may be
paid in cash, or
Company Debt Securities, or both, as required by the applicable Gaming
Authority and, if not so required, as the Company elects in its sole
discretion;

 

5.               if less than all of the Repurchase
Securities held or otherwise owned by a Registered Holder are to be repurchased,
the Repurchase Securities to be repurchased shall be selected in such manner as
shall be determined by the

 

9

 

Company’s in its sole discretion, which may include selection of the
most recently acquired Repurchase Securities, selection of Repurchase
Securities by lot, or selection of Repurchase Securities in such other manner
as shall be determined by the Company;

 

6.               beginning on the date when a Gaming
Authority serves notice of unsuitability on the Company, or the date when the
Registered Holder hereof otherwise become an Unsuitable Holder, it shall be
unlawful for the Unsuitable Holder (a) to receive any dividend or interest
or any payment or distribution of any kind, including of any share of the
distribution of profits or cash or any other property, or payments upon
dissolution, from the Company, other than a return of capital as required
above, (b) to exercise directly or through any proxy, trustee or nominee
any voting right conferred by the Registered Holder’s interest in the company, (c) to
participate in the management of the Company or (d) to receive any
remuneration (other than the Repurchase Price) in any form the Company or from
any company holding a gaming license for services rendered or otherwise; and

 

7.               other such terms and conditions as the
Company shall determine in its sole discretion.

 

Section 8.               Warrant
Exchangeable for Different Denominations. 
This Warrant is exchangeable, upon the surrender hereof by the
Registered Holder at the principal office of the Company, for new Warrants of
like tenor representing in the aggregate the purchase rights hereunder, and
each of such new Warrants shall represent such portion of such rights as is
designated by the Registered Holder at the time of such surrender.  The date the Company initially issues this
Warrant shall be deemed to be the “Date of Issuance” hereof regardless
of the number of times new certificates representing the unexpired and
unexercised rights formerly represented by this Warrant shall be issued.  All Warrants representing portions of the
rights hereunder are referred to herein as the “Warrants.”

 

Section 9.               Replacement.  Upon receipt of evidence reasonably
satisfactory to the Company (an affidavit of the Registered Holder shall be satisfactory)
of the ownership and the loss, theft, destruction or mutilation of any
certificate evidencing this Warrant, and in the case of any such loss, theft or
destruction, upon receipt of indemnity reasonably satisfactory to the Company (provided
that if the holder is a financial institution or other institutional investor
its own agreement shall be satisfactory), or, in the case of any such
mutilation upon surrender of such certificate, the Company shall (at its
expense) execute and deliver in lieu of such certificate a new certificate of
like kind representing the same rights represented by such lost, stolen,
destroyed or mutilated certificate and dated the date of such lost, stolen,
destroyed or mutilated certificate.

 

Section 10.             Notices.  Except as otherwise expressly provided
herein, all notices, demands or other communications referred to in this
Warrant shall be in writing and shall be deemed to have been given (i) when
delivered personally to the recipient, (ii) when sent

 

10

 

to the recipient by
confirmed electronic mail or facsimile if sent during normal business hours of
the recipient; but if not, then on the next business day, (iii) one
business day after it is sent to the recipient by reputable overnight courier
service (charges prepaid) or (iv) three days after it is mailed to the
recipient by first class mail, return receipt requested, and shall be addressed
(a) to the Company, at its principal executive offices and (b) to the
Registered Holder of this Warrant, at such holder’s address as it appears in
the records of the Company (unless otherwise indicated by any such holder).

 

Section 11.             Amendment
and Waiver.  Except as otherwise
provided herein, the provisions of the Warrants may be amended and the Company
may take any action herein prohibited, or omit to perform any act herein
required to be performed by it, only if the Company has obtained the written
consent of the Registered Holders of Warrants representing a majority of the
shares of Warrant Stock obtainable upon exercise of the Warrants; provided
that no such action may change the Exercise Price of the Warrants or the number
of shares or class of stock obtainable upon exercise of each Warrant without
the written consent of the Registered Holders of Warrants representing at least
80% of the shares of Warrant Stock obtainable upon exercise of the Warrants.

 

Section 12.             Descriptive
Headings; Governing Law.  The
descriptive headings of the several Sections and paragraphs of this Warrant are
inserted for convenience only and do not constitute a part of this
Warrant.  The corporation laws of the
State of Delaware shall govern all issues concerning the relative rights of the
Company and its stockholders.  All other
questions concerning the construction, validity, enforcement and interpretation
of this Warrant shall be governed by the internal law of the State of New York,
without giving effect to any choice of law or conflict of law provision or rule (whether
of the State of New York or any other jurisdictions) that would cause the
application of the laws of any jurisdictions other than the State of New York.

 

*    *    *    *

 

11

 

IN WITNESS WHEREOF, the Company has caused this
Warrant to be signed and attested by its duly authorized officers under its
corporate seal and to be dated the Date of Issuance hereof.

 

	
   

  	
  TROPICANA ENTERTAINMENT INC.

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Scott C. Butera,
  President and CEO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [Corporate Seal]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attest: Marc Rubinstein

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Secretary

  	
   

  	
   

  

 

Penny Warrant

 

 

EXHIBIT I

 

EXERCISE AGREEMENT

 

	
   

  	
   

  	
   

  	
  Dated:

  
	
   

  	
   

  	
   

  
	
  To:

  	
  Tropicana Entertainment
  Inc.

  	
   

  
	
   

  	
  Attn: Marc Rubinstein

  	
   

  
	
   

  	
  3930 Howard Hughes
  Parkway, 4th Floor

  	
   

  
	
   

  	
  Las Vegas, NV 89169

  	
   

  
	
   

  	
  Fax: (702)589-3889

  	
   

  
	
   

  	
  E-mail:
  mrubinstein@tropicanaentertainment.com

  	
   

  

 

 

The undersigned, pursuant to the provisions set forth
in the attached Warrant (Certificate No. W-[    ]), hereby agrees to subscribe for the
purchase of [                            ]
shares of the Warrant Stock covered by such Warrant and makes payment herewith
in full therefor at the price per share provided by such Warrant.

 

	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address

  	
   

  

 

Penny WarrantEXHIBIT
10.1

 

C

 

(Illegible)

 

	
   

  	
   

  	
   

  	
  Sch A, Parcel II H

  
	
   

  	
   

  	
   

  	
  ALSO Sch B-II, C.5,

  
	
   

  	
   

  	
   

  	
  b-i.

  
	
   

  	
   

  	
   

  
	
  CONTRACT OF LEASE

  	
   

  	
  UNITED STATES OF
  AMERICA

  
	
   

  	
   

  	
   

  
	
  By: COHN REALTY CO.,
  INC.

  	
   

  	
  STATE OF LOUISIANA

  
	
   

  	
   

  	
   

  
	
  In Favour of: PAUL H.
  DUE’

  	
   

  	
  PARISM OF EAST BATON
  ROUGE

  
	
  RICHARD J.
  DODSON, JOHN W.

  	
   

  	
   

  
	
  DECRAVILLES,
  DAVID W. ROBINSON

  	
   

  	
  CITY OF BATON ROUGE

  
	
  and CHESTER J.
  (Illegible)

  	
   

  	
   

  

 

BE IT KNOWN, that on the
date shown below

 

BEFORE ME, 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 competant 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 authorized and empowered President, Dr. Isidore
Cohn, Jr., hereunto duly authorized by a resolution adopted by the Board
of Directors of the said Cohn Realty Co., Inc., held at its office in the
City of Baton Rouge, Louisiana, on the 26th day of April,1982, a certified copy of which
is attached hereto and made a part hereof, (hereinafter called “LESSOR”) and

 

PAUL H. DUE’, RICHARD J.
DODSON, JOHN W. DECRAVLLES, DAVID W. ROBINSON and CHESTER J. CASKEY, residents
of lawful age of Baton Rouge, East Baton Rouge Parish, Louisiana, whose
permanent mailing address is One Maritime Plaza, (hereinafter called “LESSEE”).

 

And said appearers
declared that they have entered into and do hereby enter into a contract of
lease in words and figures subject to the following terms and conditions,
to-wit:

 

1. DESCRIPTION OF
LEASED PREMISES. Lessor covenants that for and in consideration of the rents
hereinafter stipulated to be paid by Lessee, Lessor has leased, let and
demised, and done by these presents Lease, let and demise to Lessee, its
successors and assigns, the following described property located in the Parish
of East Baton Rouge, Louisiana, to-wit:

 

 

That certain square of
ground with all improvements thereon measuring approximately sixty four feet
(64’) by one hundred twenty eight feet (128’) bounded on the North by France
Street, on the South by LOT TWO (2) of SQUARE 6 or 8 of Beauregard Town,
on the East by Front Street (formerly (Illegilbe) Street), and being identified
as LOT NUMBER ONE (1), SQUARE 6 or 8, BEAUREGARD TOWN, Parish of East
Baton Rouge

 

2. PEACEFUL
POSSESSION. Lessor warrants and convenants that it is the sole owner in fee
simple of the hereinabove described property, that it has full right and
authority to make this lease of the hereinabove described property and the
every part and parcel thereof and that the said property is unencumbered by any
mortgage or lien or whatsoever nature which will prejudice these presents,
except such (Illegible) restrictions as may be provided by law and this lease
shall be subject to such restrictions. Lessor further convenants that, if
Lessee should fully observe and perform all of the convenants, conditions and
stipulations of this lease to be by it observed and performed, Lessee will be
maintained by Lessor in the peaceful and undisturbed possession and enjoyment
of the leased premises during the term hereof as is or may be required by law.

 

3. DELIVERY OF
POSSESSION. Lessor convenants that it will deliver possession of the leased
premises to Lessee on the commencement date of this lease.

 

4. TERM. The primary
term of this lease shall be seventeen (17) years, beginning on the first
day of August,1983.

 

5. RENTALS.

 

(a) Lessee shall,
during the first five (5) years of the primary term of this lease, pay to
the Lessor at ROSENTHAL & ASSOCIATES, 751 Court Street (P.O. Box
718). Port Allen, Louisiana 70767, or at such other place as Lessor may, from
time to time, in writing designate, a basic annual rental of THIRTEEN THOUSAND
SIX HUNDRED NINETY SIX AND NO/100 ($13,696.00) DOLLARS payable in equal monthly
installments of ONE THOUSAND ONE HUNDRED FORTY ONE AND 33/100 ($1,141.33)
DOLLARS on the first day of each month during the course of the year, for each
of said first five years.

 

(b) There shall be a
reevaluation and increase of the basic annual rent on August 1, of each 5th year following
commencement date

 

2

 

of this Lease. The first
reevaluation and increase of the basic annual rental shall be five years after
the commencement of this lease or on May 1, 1987 and thereafter a
reevaluation and increase shall be on May 1 of each fifth year thereafter,
all as illustrated 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, sub-groups
and special groups of items” as promulgated by the Bureau of the Labor
Statistics of the United States Department of Labor. If the CPI on the
commencement date of this Lease is less than the CPI on the first day of each
fifth calendar year during the term or extension hereof, then Lessee shall pay
Lessor, in addition to the basic annual rent, 25% of the basic annual rent
multiplied by the percentage of increases by which the CPI at the beginning of
each fifth calendar year exceeds the CPI on the commencement date of the
preceding five year period. Until the CPI is available for 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 annual
rent below 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
1967) 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 1967 base year reach 300, then the true relationship between
the old index numbers and the new index numbers

 

3

 

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-(Illegible) 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 above calculations are to be made; this example is
provided as an illustration of methodology only.

 

(c) On August 1
of the thirtieth year following the commencement date of this lease, the rental
payable hereunder shall be totally revised on the basis of an appraisal. The
subject property shall be appraised as warehouse space in its unimproved state
(as if Lessee had made no improvements). In other words, the appraisal shall
reflect the characteristics, amenities and features of the property as of the
date of this agreement, and be revised to reflect the market conditions for use
as warehouse space at the time of the appraisal contemplated herein thirty
years hence.

 

The revised rents for
this lease shall be fixed at seventy (70%) percent of the appraised rental
value of the warehouse space of the building. In order to establish this
figure, each party hereto shall appoint a qualified appraiser of real estate to
appraise such space. In the event that the appraisers fail to reach a mutually
agreed upon amount, the two appraisers shall select a third qualified
appraiser, the appraisal of whom shall be final. If no third appraiser can be
agreed upon within thirty (30) days, then the appraised warehouse rental
value shall be determined by a Court of competent jurisdiction and the new rent
shall be seventy (70%) percent thereof. Attached hereto as Exhibit B is an
example of how the above calculations are to be made; this example is provided
as an illustration of methodology only.

 

In the event that seventy
(70%) percent of the appraised rental value is less than the rental computed in
accordance with sub-paragraph (b) above, the rental as determined by
sub-paragraph (b) shall apply.

 

4

 

(d) The rental
amount established under sub-paragraph (c) above shall be adjusted every
five (5) years according to the provisions of sub-paragraph (b) above.

 

6. OPTIONS TO RENEW.
Leasee shall have the right and option of renewing and extending this lease for
an initial extension of three (3) years and then eight (8) additional
periods of ten (10) years each, on the same terms and conditions as are
set forth herein below in this Paragraph 6. Such options shall be
automatically exercised unless Leasee gives written notice to Lessor of its
intention not to exercise same on or before ninety (90) days prior to the
end of the primary term to the term of the then effective extension or renewal period,
which-ever is applicable.

 

The basic annual and the
additional rentals for each five (5) year period during said extension or
removal periods shall be computed under the same formula as the basic annual
and the additional rentals for the second five (5) years of the primary
term, adjusted every five (5) years using the index at the beginning and
end of each five (5) year period.

 

Attached as Exhibit “C”
is an example of the applicable rentals for the seventeen (17) year primary
term, the initial three (3) year extension, and the eight (8) additional
periods of Ten (10) years each.

 

7. INTEREST ON RENT.
Any installment of rent which shall not be paid when due shall bear interest at
the rate of eight (8%) per cent per annum from due date when such payment should
have been paid.

 

8. LESSEE TO PAY AD
VALORM TAXES. As part of the consideration for this lease and in addition to
the rents and other payments herein provided, Lassee shall, before they become
delinquent, pay all lawful ad valoram taxes, assessments, forced contributions,
and other govermental charges in the nature thereof, general and special,
ordinary and extraordinary, of every nature and kind whatsoever, which may be
levied, assumed or imposed upon the leased premises or any building or other
improvements hereafter erected on the leased premises, but not further or
otherwise, it being the intent hereof that Lease is obligated to pay only such
taxes, levies and assessments as may be directly

 

5

 

levied, assessed or
imposed upon or against said leased premises and any building hereafter erected
or other improvements hereafter made on the leased premises; provided, that
such taxes for the first year of this lease and for the last year of the lease
or extension or renewal, as the case may be shall be prorated between Lessor
and Lessee based on their respective periods of occupancy. Nothing in this
lease contained shall require Lessee to pay any franchise tax, gift tax, estate
tax inheritance tax or other death tax or capital levy or transfer tax levied
or assessed against Lessor on any income, excess profits, or revenue tax or any
other tax assessment, charge or levy of transfer tax levied or assessed against
Lessor on any income, excess profits, or revenue tax or any other tax
assessment, charge or levy of Lessor upon the rents payable by Lessee under
this lease, and if Lessee is required by law to any of the same, Lessor shall
reimburse Lessee with interest at the rate of eight (8%) percent per annum, or
any sum so paid may be deducted from the rents due hereunder.

 

9. PRIORITY OF LEASE
AND RIGHT OF FIRST REFUSAL. Lessor covenants that in case Lessor shall at any
time hereafter alienate or encumber the leased premises or any part or parcel
thereof, such sale or encumbrance shall be made expressly subject and
subordinate to the provisions of this lease and to the rights of lessee
hereunder. If at any time during the primary term of this Lease or renewal
period,and provided Lessee is not in default of this lease, Lessor shall,
before it sells all or any portion of the property, give Lessee in writing the
option to purchase the property or portion thereof on the same terms and
conditions. Such option must be exercised by Lessee by notice in writing
forty-five (45) days and the closing must take place within thirty
(30) days after the date of such notice. If lessee fails to exercise such
option or to close the sale timely, Lessor shall be free to sell the property
on those same terms and conditions, but subject to this lease.

 

10. HOLD HARMLESS. Lessee
will at all times during the term of this lease save harmless Lessor and the
leased premises and the improvements thereon from all taxes, assessments,
forced contributions and charges provided in paragraph 8 hereinabove to be paid
by Lessee, and from all liens and penalties in conjunction therewith, and from
all

 

6

 

public requirements with
respect to the construction, reconstruction maintenance or repair of streets
and sidewalls adjacent to the leased premises; and upon written application of
Lessor, Lessee shall furnish to Lessor for inspection and such other use as may
be proper for the protection of lessor’s interest in the leased premises,
written evidence that any and all of the taxes, agreements, forced
contributions and charges hereinabove set forth in Paragraph 8 hereof to
be paid by lessee have been duly satisfied and paid, or otherwise discharged.

 

Nothing herein contained,
however, shall be construed as preventing or interfering with the contestation
by Lessee, at its own expense, of any tax, assessment, forced contribution,
charge, lien or claim or any kind in respect to the leased premises or any
building or other improvement, now or hereafter situated thereon, which may be
considered by Lessee to be unlawful or excessive, and for that purpose Leasee
may sue or defend, in its own name or in the name of Lessor, as the case may
require, but the Lessee shall, if the Lessor in writing requires the same,
furnish reasonable security for the payment of all liability, costs, and
expense at the end of the litigation, and Lessee so long as the matter shall
remain undetermined by final judgment, shall not be considered in default
hereunder for the nonpayment thereof; provided, however, that Lessor may not,
under the provisions of this Paragraph permit the leased premises or any
building or other improvement now or hereafter situated thereon to be sold or
forfeited, and any sale or forfeiture shall be deemed to be a default hereunder.

 

11. LESSEE TO COMPLY WITH
LAW. During the term hereof Lessee shall conform to and observe all laws,
ordinances, rules and regulations of the United States of America, State
of Louisiana and the Parish of East Baton Rouge, and all public authorities,
boards or offices relating to the leased premises or the improvements upon
same, or the use thereof, and will not during said term permit the same to be
used for any illegal or immoral purposes, business or occupation; provided that
nothing herein contained shall be construed as preventing or interfering with
the contestation by Lessee, at its own expense, of any such law or ordinance,
and for that purpose Lessee may one or

 

7

 

defend, in its own name
or in the name of Lessor, as the case may require, but Lessee shall, if Lessor
in writing requires name, furnish to Lessor reasonable security for the payment
of all liability, costs and expense at the end of the litigation, and Lessee,
so long as the matter shall remain undetermined by final judgement, shall not
be considered in default in the nonobservance thereof.

 

12. OBLIGATION OF
LESSEE TO DEVELOP LEASED PREMISES. Lessee hereby agrees that it will go forward
with the renovation and development of the property herein leased for
commercial office, retail store, restaurant purposes or for any other lawful
purpose as soon as practical and Lessee further agrees that upon undertaking
the construction of any renovation and development work, and upon completion of
same that it will be free of mechanics’, contractors’, subcontractors’,
materialmens’, laborers’, and other liens or the possibility thereof. Lessee
further agrees not to commence construction of any development on said property
until such time as Lessee shall have furnished to Lessor certificates of
Owners, Landlords and Tenants and Construction Liability insurance, with
minimum policy limits of $500,000 per occurrence, naming Lessor as an
additional insured party at interest. All such certificates shall contain a
provision whereby the Lessor shall be entitled to ten (10) days notice of
cancellation. Lessor shall have the right to review and approve all plans and
specifications prior to the commencement of any such work. Upon submission by
Lessee of plans and specifications, Lessor shall have twenty (20) days to
notify Lessees of any objection. After the twenty (20) days period has
elapsed and Lessee has not been notified in writing of any specific objection,
Lessee may unequivocally assume that Lessor has approved the plans and
specifications. Lessor’s approval shall not be unreasonably withheld.

 

13. LESSEE TO
MAINTAIN INSURANCE. Lessee covenants and agrees that Lessee will, throughout
the term of this lease, at Lessee’s cost and expense, maintain the Owners’,
Landlords and Tenants insurance described in Paragraph 12, and will keep
all buildings and improvements on the leased premises insured in good and
solvent insurance companies, legally authorised to transact business in the
State of Louisiana,

 

8

 

against damage or
destruction by fire, or other hazards covered by normal extended insurance
coverage, subject to the usual and customary exclusions and limitation, is an
amount equal to 80%, or the maximum obtainable, of the insurable value of said
buildings and improvements, with the addition of a replacement cost
endorsement. However, if insurance coverage is not available in the amount set
forth herein-above, then Lessee covenants and agrees that it will at all times,
at its cost and expense, keep all buildings and improvements on the leased
premises insured in the maximum amount obtainable. Lessee covenants and agrees
that it will not do or omit to do anything which would vitiate the insurance
hereinabove in this paragraph provided for, or which would prevent the
obtaining thereof. Lessee will carry its policies of insurance with Lessor also
named as an insured and will furnish Lessor with certificates of insurance upon
request for same. All such certificates shall contain a provision whereby the
Lessor shall be entitled to ten days notice of cancellation.

 

Lessor and Lessee agree
that in the event of any loss or damage to the building on the leased premises,
or of the contents, improvements, fixtures or equipment of Leases located
therein, by fire or any other perils which lessor and Lessee have insured
against or have obligated themselves under this lease to insure against,
regardless of the cause thereof, and whether or not the same be caused by the
carelessness or negligence of Lessor or Lessee, their respective servants,
employees, agents, invitees, visitors or licensees. Neither Lessor, Lessee nor
their respective insurance carrier shall have any right of subrogation over or
against the other, their servants, employees, agents, invitees, visitors or
licensees, for any such damage or loss so sustained. Neither Lessor nor Lessee
shall be under obligation to pay any amount to the other, its successors or
assigns, or to pay any amount to the insurance company issuing the policy of
insurance for the amount of insurance or damages even though the loss or damage
is caused by the negligence of the other, its agents, servants, invitees,
employees, visitors or licensees. Lessor and Lessee shall each cause its
respective insurance carrier or carriers to waive rights of subrogation

 

9

 

in conformity with the
terms of this lease and shall promptly furnish each other with proper
endorsements or appropriate evidence with respect thereto.

 

14. LESSEE TO COMPLY
WITH LAWS, ORDINANCES, ETC., IN DEMOLITION OR CONSTRUCTION WORK. In the
demolition, excavating for, and construction of any building or buildings on
the premises covered by this lease, and in the removing, rebuilding, repairs,
altering, addition to or extending any party walls and foundations, Lessee will
conform to and observe all laws, applicable thereto, and will further protect
all buildings on adjacent premises to the extent required by laws, ordinances,
building codes, rules and regulations, and at all times will keep Lessor
and the premises hereby leased indemnified against and discharged of any charge
or liability in favor of the owners of such adjacent premises arising out of
such operations by Lessee, and will pay and discharge all liability and damages
occasioned to any person or persons resulting from such demolition, excavation
or construction or from such removing, rebuilding, repairing, altering,
addition or extending any such party walls foundations.

 

15. LESSEE TO HOLD
LESSOR HARMLESS AGAINST LIENS, JUDGEMENT OR ENCUMBRANCES. Lessee will indemnify
and hold harmless Lessor from and against the payment of all loss, damages,
legal costs and charges, inclusive of counsel fees, by Lessor lawfully and
reasonably incurred or expended in or about the prosecution or defense of any
suit or other proceeding in the discharging of the leased premises, or any
party thereof, from any lien, judgment or encumbrance created, or permitted to
be created, by Lessee upon, or against the same or against Lessee’s leasehold
estate (except mortgage liens placed on such leasehold estate by Lessee), and
also any costs and charges, inclusive of counsel fees, incurred on account of
proceedings by Lessor in obtaining possession of the premises covered by this
lease after the termination of the lease by forfeiture or otherwise.

 

16. LESSEE TO KEEP
BUILDING IN REPAIR. Lessee shall at all times during the term of this lease,
and at its own expense, keep all buildings and improvements situated on the
premises covered by this

 

10

 

lease, except for the
structural components of the roof and the exterior walls, in good order,
condition and repair, ordinary wear and tear excepted, and shall at all times
save and keep Lessor free and harmless from any and all damages or liability,
occasioned by any act or neglect of Lessee, or any agent or employee of Lessee
or any tenant or person holding under Lessee, and shall indemnify and save
harmless Lessor against and from any loss, costs, damage and expenses arising
out of or in connection with the erection of any building or improvement upon
said premises, or out of any accident or injury to any person or damage to
property, whomsoever and whatever, due directly or indirectly to the use of
said premises, or any part thereof, by Lessee, or any other person or persons
holding under Lessee, unless such accident, injury or damage results from the
active negligence or willful act of Lessor. For purposes of clarification,
attached as Exhibits are examples of the type of roof and exterior wall maintenance
required by Lessee and Lessor.

 

17.  LESSOR MAY PAY
TAXES, INSURANCE PREMIUMS, ETC., FOR LESSEE’S ACCOUNT. In case of any default
on the part of Lessee in the payment of any taxes, assessments, forced
contribution, public charges or premiums on insurance, or the payment of any
amount herein provided to be paid (other than amounts payable as rents) or in
procuring insurance as herein provided, Lessor may, on behalf of Lessee, make
any such payment or payments, or procure any such insurance, and Lessee covenants
thereupon to reimburse and pay Lessor any amount reasonably so paid and
expended (with interest thereon at the rate of eight (8%) percent per annum
from the date of the payment so made until paid by Lessee) on the date on which
the next installment of rent shall be payable. Any demand for rent or other
payment made on Lessee, after the same shall have become due and payable, shall
have the same force and effect as though made at the time of its becoming due
and payable.

 

18. SALE, ASSIGNMENT
OR SUBLEASE OF LEASE. So long as Lessee shall not be in default of any of its
obligations under this lease agreement, it shall have the full right to sell or
assign this lease to any other person, firm or corporation capable of accepting
such sale or

 

11

 

assignment. No sale or
assignment shall be made of less than the whole of the lease for the whole
unexpired term thereof. The right to sell or assign this lease conveyed herein
and the right to sublease the whole of the leased premises is conditioned upon
first obtaining approval in writing to such sale, assignment or sublease from
Lessor, provided, however, that Lessor may not arbitrarily refuse to approve
and accept a bona fide purchaser, assignee or sublessee of good character and
sound financial standing. Lessee notwithstanding such sale or assignment, shall
remain liable for the payment of the monthly rents and other charges stipulated
by this lease for the remainder of the primary term or renewal and the performance
and observance of all of the covenants, conditions, and stipulations herein
give expressed, and contained on the part and behalf of Lessee to be performed
and observed. Any purchaser or assignee of Lessee may, subject to the
provisions hereof and upon the same terms and conditions, sell or assign the
leasehold, and like subsequent sales or assignments may be made from time to
time by any one at any time holding the leasehold.

 

Lessee shall have the
right to sublease from time to time and at any time any part of the premises
covered by this lease, provided it is less than the whole of the leased
premises and/or any part of the buildings or other improvements thereon to any
person, firm or corporation capable of taking such sublease upon such terms, stipulations,
and conditions as Lessee may determine. The right of Lessee to sublease a part
of the leased premises and/or buildings located thereon is not conditioned on
the prior consent or permission of Lessor.

 

Any such sale, assignment
or sub-lease shall be made subject to all of the provisions contained in this
lease.

 

19.  LESSOR TO JOIN
IN APPLICATIONS FOR PERMITS, LICENSES, ETC. Lessor agrees that within ten (10) days
after the receipt of written request from Lessee it will join in any and all
applications for permits, licenses, zoning classification charges, designation
of the property as an historical site, or other authorizations required by any
governmental or other body claiming jurisdiction in connection with any work or
repair and/or alternations and changes or erection which Lessee

 

12

 

may do hereunder, and
will also join in such applications for electric, telephone, gas, water,
(Illegibe) and other public utilities and facilities as may be reasonably
necessary in the operation of the premises covered by this lease or of the
buildings and improvements that may erected thereon.

 

20. LESSEE ENTITLED
TO SALVAGE. All material and salvage resulting from any repair, alteration or
change shall become and be the property of Lessee without payment of any
compensation therefor to Lessor.

 

21. RIGHTS OF LESSEE
NOT LIMITED BY ENUMERATION. The foregoing and succeeding enumeration of rights
of Lessee is not intended in anyway to limit or restrict the rights of Lessee
to these listed or enumerated in this lease agreement, but to the contrary it
is expressly recognized that Lessee shall have all of the rights and privileges
granted to it in any part of this lease or to which it would otherwise be
entitled by law if not herein specifically denied.

 

22. RIGHT OF LESSEE
TO MORTAGE LEASEHOLD. Lessee may at any time and from time to time as it may
see fit, subject always to the terms and conditions of this lease, in any legal
manner, mortgage or otherwise hypothecate its leasehold estate and/or its
interest or rights hereunder or any part thereof for a period not extending
beyond the term of this lease plus any renewals thereof. Lessee will deliver
the leased premises to the Lessor free and clear of all mortgages and encumbrances
at the end of the terms of this lease.

 

23. EFFECT OF WAIVER
OF BREACH. No waiver of any condition or covenant in this instrument contained,
or of any breach thereof, shall be taken to constitute a waiver of any
subsequent breach. No payment by Lessor, in case of default on the part of
Lesses in that respect, of any taxes, assessments, public charges, or premiums
of insurance of the payment of any amount herein provided to be paid, other
than rents, or in the procuring of insurance as hereinabove provided, shall
constitute or be construed as a waiver or condonance by Lessor of the default
of Lessee in that respect.

 

13

 

24. LEASE NOT
AFFECTED BY DAMAGE OR DESTRUCTION OF BUILDING. Except as provided below, no
damage to or destruction of any buildings or building hereafter located on the
premises covered by this lease by natural disaster, fire or other casualty
shall be taken to entitle Lessee to surrender possession of the premises
covered by this lease, or to terminate this lease, or to have an abatement or
any part of the rents, the laws of the State of Louisiana to the contrary
notwithstanding; and neither party hereto shall be released, by reason of the
damages or destruction of any such building or buildings on the premises
covered by this lease, from the obligations created or imposed by virtue of
this lease.

 

However, if the buildings
on the leased premises are totally destroyed by a natural disaster or by fire,
casualty, or any other cause during the last twelve (12) years of the
primary term or the last five (5) years of any renewal term to such an
extent that at least seventy (70%) percent of the normally usable floor space
is not usable, then Lessee may terminate this lease in lieu of rebuilding the
leased premises provided that all mortgages and other encumbrances on the
leasehold interest are paid in full, and further provided that the leased
premises are leveled and cleared of all debris by Lessee. Should Lessee
terminate this lease as permitted by the preceding sentences, all outstanding
encumbrances created by Lessee shall be first paid out of any insurance
available to cover the loss, and the balance, if any, of the available
insurance shall then be divided between Lessor and Lessee in the following
manner: Lessor shall receive a portion equal to present value of the income
stream of the unexpired term of the lease. Lessee shall receive the balance of
the insurance proceeds.

 

25. SERVICES OF NOTICES.
All notices, demands and requests which may or are required to be given by
either Party to the other shall be in writing. All notices, demands and
requests by Lessor to Lessee shall be deemed to have been properly give if
served personally on Lessee or if sent by United States certified mail, postage
prepaid, addressed to Lessee at One Maritime Plaza, Baton Rouge, LA 70802, or

 

14

 

at such other place as
Lessee may from time to time designate hereafter in a written notice to Lessor.
All notices, demands, and requests by Lessee to Lessor shall be deemed to have
been properly given, if served personally on an officer of Lessor or if sent by
United States certified mail, postage prepaid, addressed to Lessor c/o
Rosenthal & Associates, 751 Court Street (P.O. Box 718), Port
Allen, LA 70767, or at such other place as Lessor may form time to time
hereafter designate in a written notice to Lessee.

 

26. EXPROPRIATION OF
LEASED PREMISES. In case any part of the premises covered by this lease less
than the whole shall be taken under the power of eminent domain, this lease
shall not be terminated, but from and after the date on which Lessee shall have
been so deprived the possession of any part of the premises covered by this
lease, the rent thereafter payable under the provisions of this lease shall be
reduced in the proportion which the value of the land and improvements so taken
bears to the value of the land and improvements subject to this lease.

 

In the event that Lessor
and Lessee cannot agree upon the amount of such reduction, it shall be fixed by
arbitration or by a Court of competent jurisdiction.

 

In the event of
disagreement, Lessee shall, until the amount of the reduction has been so fixed
by arbitration, continue to pay the full amount of rent which would be due
under the provisions of this lease in the absence of any taking under the power
of eminent domain loss on undisputed reduction, subject to retroactive
adjustment of such rent back to the data on which Lessee shall have been so
deprived of possession to conform to the decision of the arbitrators, and
Lessor shall promptly, after the rendition of such decision, refund to Lessee
the amount of reduction in rent as determined in such decision of the
arbitrators.

 

In case the whole of the
premises covered by this lease shall be taken under the power of eminent
domain, or as a result of a taking of a portion of the property, it renders the
property unsuitable for its intended purpose, than Lessee has the option to
terminate the lease

 

15

 

effective as of the date
of the expropriation. If Lessor and Lessee cannot agree whether the property
has been rendered “unsuitable for its intended purpose” a determination thereof
shall be made by a Court of competant jurisdiction.

 

In the event of any
taking under the power of eminent domain, Lessor shall be entitled to receive
the portion of the award attributable to the present value of the income stream
of the unexpired term of the Lease of which Lessor has been deprived by said
action of eminent domain, Lessee shall be entitled to recover the portion of
the award representing its leasehold rights and the fair market value of
leasehold improvements. If there is any portion of the award left after payment
to the Lessor and Lessee as above mentioned it shall be paid to Lessor.

 

If at the time Lessee is
entitled to receive any such award, Lessee shall be in default in the
observance or performance of any of the covenants in this lease contained,
there shall be deducted from the award otherwise payable to Lessee and added to
the award to be received by Lessor such amount as may be required to satisfy
and cure such default. It is further understood between the parties hereto that
should Lessee elect to terminate this lease pursuant to the provisions of this
paragraph, than in that event all outstanding Lessee encumbrance shall be first
paid out of any expropriation award for the leasehold interest.

 

27. DEFAULT CLAUSE. (1) In
case default be made by Lessee at any time in the due payment of any
installment of rent or in the due payment or any other sum payable by Lessee to
Lessor under the provisions hereof, and such default shall continue for a
period of thirty (30) days after written demand by Lessor, or (2) if
default shall be made by Lessee in the due observance and performance of any
other covenant, condition, or stipulation herein agreed by Lessee to be by it
observed or performed, and such default shall continue for a period of thirty
(30) days from date of written notice by Lessor to Lessee detailing the
particular of such default and requiring it to make good any such last
mentioned default, then and in any such event described

 

16

 

in (1) or (2) hereinabove,
Lessor at any time thereafter shall have the full right, at its election to
enter in, into, and upon the premises covered by this lease and take possession
of the same together with all buildings and improvements thereon, and from time
of such entry, this lease shall become void and of no effect and Lessor may
enter upon, take possession, hold and retain the said premises and all
buildings and improvements thereto as of its first or former estate, and this
lease shall be forfeited to Lessor, and Lessor may bring suit for and collect
all the rents, taxes, assessments, charges, liens, penalties and damages
including damages to Lessor by reason of such breach or default on the part of
Lessee which shall have accrued up to the time of such entry, and Lessor may,
if it elects so to do, bring suit to collect all such rents, taxes,
assessments, charges, liens, penalties and damages in the event of any default
as aforesaid without voiding this lease; provided, however, that any mortgagee
of any leasehold interest under this lease, who Lessor has agreed to notify in
case of default, may avoid forfeiture of this lease as herein provided by
satisfying and curing, within a period of thirty (30) days, as the case
may be, after written demand upon it by Lessor, the default consequent whereon
such right of forfeiture shall accure. All things so done and performed by such
a mortgagee to cure a default by Lessee shall be effective to prevent a
forfeiture of the rights of Lessee under this lease as the same would have been
if done and performed by Lessee instead of a mortgages.

 

If Lessor considers that
Lessee has failed to comply with one or more of its obligations hereunder,
either expressed or implied, and whether the alleged breach be either active or
passive, and Lessor undertakes to give Lessee written notice of default as
provided for herein, Lessor shall in said written notice set out specifically
in what respects Lessor claims Lessee has breached this lease. If within thirty
(30) days, as the case may be, after receipt of such notice Lessee shall
meet or commence to meet the breaches alleged by Lessor, Lessee shall not be
deemed in default hereunder. The service of written notice with itemized and
particularized allegations of breach,

 

17

 

and the lapse of thirty
(30) days, as the cast may be, without Lessee’s meeting or commencing to
meet the alleged breaches shall be a condition precedent to any action, be it
legal or otherwise by Lessor on this lease.

 

28. LESSOR TO HAVE
TITLE TO BUILDINGS AT TERMINATION. Upon the termination of this lease by
forfeit or lapse of time or for any cause whatsoever (except for failure of
Lessor’s title) Lessee will at once surrender the above described premises,
together with all buildings and improvements thereon but excluding any trade
fixtures, furniture, furnishings, leasehold improvements not permanently
attached and other movable property, and all the buildings and improvements
then standing upon said premises shall belong to Lessor, and no compensation shall
be allowed or paid therefore. Lessee shall have thirty (30) days after
termination to remove movable property as above set forth.

 

29. REMOVAL OF
TRACKAGE. Lessor will not object to removal or all or a portion of any railroad
trackage serving the property whether on the leased premises, on adjacent
public streets, or elsewhere.

 

30. USE OF SINGULAR
OR PLURAL, MASCULINE, FEMININE OR NEUTER GENDER. Any word herein importing the
singular number shall as well include the plural, and any pronoun importing
gender shall as well include the masculine, feminine or neuter gender.

 

31. PURPOSE OF
ARTICLE CAPTIONS. It is agreed that the article captions contained in this
instrument are inserted merely for the purpose of convenience in reference, and
that such article captions shall be in no way construed as forming part of this
lease or in any way limiting or qualifying the provisions hereof.

 

THIS DONE AND PASSED on
the day, month and year hereinafter set forth, in the City of New Orleans,
Louisians, and in the City of Baton Rouge respectively in the presence of the
undersigned competent

 

18

 

witnesses residing in
said Cities, and in the presence of the undersigned Notaries Public, after due
reading of the whole.

 

	
  WITNESSES:

  	
   

  	
  COHN REALTY CO., INC.

  
	
   

  	
   

  	
   

  
	
  /s/ Illegible

  	
   

  	
  By:

  	
  /s/ Illegible

  
	
   

  	
   

  	
   

  	
  (Illegible)

  
	
   

  	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Illegible

  	
   

  	
   

  	
  /s/ Illegible

  
	
   

  	
   

  	
   

  	
  (Illegible)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Illegible

  
	
   

  	
   

  	
   

  	
  (Illegible)

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Illegible

  	
   

  	
   

  	
  /s/ Illegible

  
	
   

  	
   

  	
   

  	
  (Illegible)

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Illegible

  	
   

  	
   

  	
  /s/ Illegible

  
	
   

  	
   

  	
   

  	
  (Illegible)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Illegible

  
	
   

  	
   

  	
   

  	
  (Illegible)

  

 

19

 

STATE OF LOUISIANA

PARISH OF ORLEANS

 

BEFORE ME, the
undersigned Notary Public, on this day personally came and appeared: Katusha M.
Zeller, who, being by me duly sworn, stated under oath that she was one of the
subscribing witnesses to the foregoing instrument and that the same was signed
by LESSOR, (Illegible) REALTY CO., INC., by its President, Dr. Isidora
Cohn, Jr. in her presence and in the presence of the subscribing witness.

 

 

	
   

  	
  /s/ Illegible

  

 

 

SWORN TO AND SUBSCRIBED
before me, Notary Public, on this 26th day of August, (Illegible), at New Orleans
Louisiana.

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Illegible

  
	
   

  	
  Notary Public

  

 

20

 

STATE OF LOUISIANA

PARISH OF EAST BATON
ROUGE

 

BEFORE ME, the
undersigned Notary Public, on this day personally came and appeared: CAROLE P.
CROSS, who, being by me duly sworn, stated under oath that she was one of the
subscribing witnesses to the foregoing instrument and that the same was signed
by LESSEE, PAUL H. DUE’, RICHARD J. DODSON, JOHN W. DEGRAVELLES, DAVID W.
ROBINSON and CHESTER J. CASKEY, in her presence and in the presence of the
subscribing witness.

 

 

	
   

  	
  /s/ Illegible

  
	
   

  	
  CAROLE P. CROSS

  

 

SWORN TO AND SUBSCRIBED
before me, Notary Public, on this 29th day of August, 1982, at Baton Rouge,
Louisiana.

 

 

	
   

  	
  /s/ Illegible

  
	
   

  	
  Notary Public

  

 

 

(Illegible)

 

21

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