Document:

pacsandss820100625ex10-1.htm

Exhibit 10.1

Pacific Sands, Inc. 2011 Compensation Plan for

Employees, Officers, Directors and Consultants

As Adopted June 21, 2010

1.           PURPOSE.

 

The purpose of this Plan is to provide incentives to attract retain and motivate eligible persons whose present and potential contributions are important to the success of the Company by offering them an opportunity to participate in the Company’s future performance through awards of Options, Restricted Stock and Stock Bonuses.  Capitalized terms not defined in the text are defined in Section 2.

2.           DEFINITIONS.

As used in this Plan, the following terms will have the following meanings:

“AWARD” means any award under this Plan, including any Option, Restricted Stock or Stock Bonus.

“AWARD AGREEMENT” means, with respect to each Award, the signed written agreement between the Company and the Participant setting forth the terms and conditions of the Award.

“BOARD” means the Board of Directors of the Company.

“CAUSE” means any cause, as defined by applicable law, for the termination of a Participant’s employment with the Company or a Parent or Subsidiary of the Company.

“CODE” means the Internal Revenue Code of 1986, as amended.

“COMPANY” means Pacific Sands, Inc., a Nevada corporation, or any successor corporation.

“DISABILITY” means a disability, whether temporary or permanent, partial or total, as determined by the Board.

“EXCHANGE ACT” means the Securities Exchange Act of 1934, as amended.

“EXERCISE PRICE” means the price at which a holder of an Option may purchase the Shares issuable upon exercise of the Option.

“FAIR MARKET VALUE” means, as of any date, the value of a share of the Company’s Common Stock determined as follows:

	
  

	
(a)

	
if such Common Stock is publicly traded and is then listed on a national securities exchange, its closing price on the date of determination on the principal national securities exchange on which the Common Stock is listed or admitted to trading as reported in The Wall Street Journal;

	
  

	
(b)

	
if such Common Stock is quoted on the NASDAQ National Market, its closing price on the NASDAQ National Market on the date of determination as reported in The Wall Street Journal;

  

  

  

	
  

	
(c)

	
if such Common Stock is publicly traded but is not listed or admitted to trading on a national securities exchange, the average of the closing bid and asked prices on the date of determination as reported by OTCBB.COM (operated by FINRA) or OTCMARKETS.COM, operated by OTC Markets, Inc.;

	
  

	
(d)

	
in the case of an Award made on the Effective Date, the price per share at which shares of the Company’s Common Stock are initially offered for sale to the public by the Company’s underwriters in the initial public offering of the Company’s Common Stock pursuant to a registration statement filed with the SEC under the Securities Act; or

	
  

	
(e)

	
if none of the foregoing is applicable, by the Board in good faith.

“INSIDER” means an officer or director of the Company or any other person whose transactions in the Company’s Common Stock are subject to Section 16 of the Exchange Act.

“OPTION” means an award of an option to purchase Shares pursuant to Section 6.

“PARENT” means any corporation (other than the Company) in an unbroken chain of corporations ending with the Company if each of such corporations other than the Company owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.

“PARTICIPANT” means a person who receives an Award under this Plan.

“PERFORMANCE FACTORS” means the factors selected by the Board, in its sole and absolute discretion, from among the following measures to determine whether the performance goals applicable to Awards have been satisfied:

	
  

	
(a)

	
Net revenue and/or net revenue growth;

	
  

	
(b)

	
Earnings before income taxes and amortization and/or earnings before income taxes and amortization growth;

	
  

	
(c)

	
Operating income and/or operating income growth;

	
  

	
(d)

	
Net income and/or net income growth;

	
  

	
(e)

	
Earnings per share and/or earnings per share growth;

	
  

	
(f)

	
Total stockholder return and/or total stockholder return growth;

	
  

	
(g)

	
Return on equity;

	
  

	
(h)

	
Operating cash flow return on income;

	
  

	
(i)

	
Adjusted operating cash flow return on income;

	
  

	
(j)

	
Economic value added; and

	
  

	
(k)

	
Individual confidential business objectives.

  

  

  

“PERFORMANCE PERIOD” means the period of service determined by the Board, not to exceed five years, during which years of service or performance is to be measured for Restricted Stock Awards or Stock Bonuses.

“PLAN” means this Pacific Sands, Inc. 2011 Compensation Plan for Employees, Officers, Directors and Consultants, as amended from time to time.

“RESTRICTED STOCK AWARD” means an award of Shares pursuant to Section 7.

“SEC” means the Securities and Exchange Commission.

“SECURITIES ACT” means the Securities Act of 1933, as amended.

“SHARES” means shares of the Company’s Common Stock reserved for issuance under this Plan, as adjusted pursuant to Sections 3 and 19, and any successor security.

“STOCK BONUS” means an award of Shares, or cash in lieu of Shares, pursuant to Section 8.

“SUBSIDIARY” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company if each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.

“TERMINATION” or “TERMINATED” means, for purposes of this Plan with respect to a Participant, that the Participant has for any reason ceased to provide services as an employee, officer, director, consultant, independent contractor, or advisor to the Company or a Parent or Subsidiary of the Company.  An employee will not be deemed to have ceased to provide services in the case of (i) sick leave, (ii) military leave, or (iii) any other leave of absence approved by the Company, provided that such leave is for a period of not more than 90 days, unless reemployment upon the expiration of such leave is guaranteed by contract or statute or unless provided otherwise pursuant to a formal policy adopted from time to time by the Company and issued and promulgated to employees in writing.  In the case of any employee on an approved leave of absence, the Board may make such provisions respecting suspension of vesting of the Award while on leave from the employ of the Company or a Subsidiary as it may deem appropriate, except that in no event may an Option be exercised after the expiration of the term set forth in the Option agreement.  The Board will have sole discretion to determine whether a Participant has ceased to provide services and the effective date on which the Participant ceased to provide services (the “TERMINATION DATE”).

“UNVESTED SHARES” means “Unvested Shares” as defined in the Award Agreement.

“VESTED SHARES” means “Vested Shares” as defined in the Award Agreement.

3.           SHARES SUBJECT TO THE PLAN.

3.1           Number of Shares Available.  Subject to Sections 3.2 and 19, the total aggregate number of Shares reserved and available for grant and issuance pursuant to this Plan will be 4,000,000, plus Shares that are subject to: (a) issuance upon exercise of an Option but cease to be subject to such Option for any reason other than exercise of such Option; (b) an Award granted hereunder but forfeited or repurchased by the Company at the original issue price; and (c) an Award that otherwise terminates without Shares being issued.  At all times the Company shall reserve and keep available a sufficient number of Shares as shall be required to satisfy the requirements of all outstanding Options granted under this Plan and all other outstanding but unvested Awards granted under this Plan.

  

  

  

3.2           Adjustment of Shares.  In the event that the number of outstanding shares is changed by a stock dividend, recapitalization, stock split, reverse stock split, subdivision, combination, reclassification or similar change in the capital structure of the Company without consideration, then (a) the number of Shares reserved for issuance under this Plan, (b) the Exercise Prices of and number of Shares subject to outstanding Options, and (c) the number of Shares subject to other outstanding Awards will be proportionately adjusted, subject to any required action by the Board or the stockholders of the Company and compliance with applicable securities laws; provided, however, that fractions of a Share will not be issued but will either be replaced by a cash payment equal to the Fair Market Value of such fraction of a Share or will be rounded up to the nearest whole Share, as determined by the Board.

4.           ELIGIBILITY.

ISOs (as defined in Section 6 below) may be granted only to employees (including officers and directors who are also employees) of the Company or of a Parent or Subsidiary of the Company.  All other Awards may be granted to employees, officers, directors, consultants, independent contractors and advisors of the Company or any Parent or Subsidiary of the Company; provided such consultants, contractors and advisors render bona fide services not in connection with the offer and sale of securities in a capital-raising transaction.

5.           ADMINISTRATION.

5.1           Board Authority.  This Plan will be administered by the Board.  Subject to the general purposes, terms and conditions of this Plan, the Board will have full power to implement and carry out this Plan.  Without limitation, the Board will have the authority to:

	
  

	
(a)

	
construe and interpret this Plan, any Award Agreement and any other agreement or document executed pursuant to this Plan;

	
  

	
(b)

	
prescribe, amend and rescind rules and regulations relating to this Plan or any Award;

	
  

	
(c)

	
select persons to receive Awards;

	
  

	
(d)

	
determine the form and terms of Awards;

	
  

	
(e)

	
determine the number of Shares or other consideration subject to Awards;

	
  

	
(f)

	
determine whether Awards will be granted singly, in combination with, in tandem with, in replacement of, or as alternatives to, other Awards under this Plan or any other incentive or compensation plan of the Company or any Parent or Subsidiary of the Company;

	
  

	
(g)

	
grant waivers of Plan or Award conditions;

	
  

	
(h)

	
determine the vesting, ability to exercise and payment of Awards;

	
  

	
(i)

	
correct any defect, supply any omission or reconcile any inconsistency in this Plan, any Award or any Award Agreement;

	
  

	
(j)

	
determine whether an Award has been earned; and

	
  

	
(k)

	
make all other determinations necessary or advisable for the administration of this Plan.

  

  

  

5.2           Board Discretion.  Any determination made by the Board with respect to any Award will be made at the time of grant of the Award or, unless in contravention of any express term of this Plan or Award, at any later time, and such determination will be final and binding on the Company and on all persons having an interest in any Award under this Plan.  The Board may delegate to one or more officers of the Company the authority to grant an Award under this Plan to Participants who are not Insiders of the Company.

6.           OPTIONS.

The Board may grant Options to eligible persons and will determine whether such Options will be Incentive Stock Options within the meaning of the Code (“ISO”) or Nonqualified Stock Options (“NQSOS”), the number of Shares subject to the Option, the Exercise Price of the Option, the period during which the Option may be exercised, and all other terms and conditions of the Option, subject to the following:

6.1           Form of Option Grant.  Each Option granted under this Plan will be evidenced by an Award Agreement that will expressly identify the Option as an ISO or an NQSO (hereinafter referred to as the “STOCK OPTION AGREEMENT”), and will be in such form and contain such provisions (which need not be the same for each Participant) as the Board may from time to time approve, and which will comply with and be subject to the terms and conditions of this Plan.

6.2           Date of Grant.  The date of grant of an Option will be the date on which the Board makes the determination to grant such Option, unless otherwise specified by the Board.  The Stock Option Agreement and a copy of this Plan will be delivered to the Participant within a reasonable time after the granting of the Option.

6.3           Exercise Period. Options may be exercisable within the times or upon the events determined by the Board as set forth in the Stock Option Agreement governing such Option; provided, however, that no Option will be exercisable after the expiration of ten (10) years from the date the Option is granted; and provided further that no ISO granted to a person who directly or by attribution owns more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or of any Parent or Subsidiary of the Company (“TEN PERCENT STOCKHOLDER”) will be exercisable after the expiration of five (5) years from the date the ISO is granted.  The Board also may provide for Options to become exercisable at one time or from time to time, periodically or otherwise, in such number of Shares or percentage of Shares as the Board determines.

6.4           Exercise Price.  The Exercise Price of an Option will be determined by the Board when the Option is granted and may be not less than 100% of the Fair Market Value of the Shares on the date of grant; provided that:  (a) the Exercise Price of an ISO will be not less than 100% of the Fair Market Value of the Shares on the date of grant; and (b) the Exercise Price of any ISO granted to a Ten Percent Stockholder will not be less than 110% of the Fair Market Value of the Shares on the date of grant.  Payment for the Shares purchased may be made in accordance with Section 9 of this Plan.

6.5           Method of Exercise.  Options may be exercised only by delivery to the Company of a written stock option exercise agreement  (the “EXERCISE AGREEMENT”) in a form approved by the Board, (which need not be the same for each Participant), stating the number of Shares being purchased, the restrictions imposed on the Shares purchased under such Exercise Agreement, if any, and such representations and agreements regarding Participant’s investment intent and access to information and other matters, if any, as may be required or desirable by the Company to comply with applicable securities laws, together with payment in full of the Exercise Price for the number of Shares being purchased.

6.6           Termination.  Notwithstanding the exercise periods set forth in the Stock Option Agreement, exercise of an Option will always be subject to the following:

  

  

  

(a)           If the Participant’s service is Terminated for any reason except death or Disability, then the Participant may exercise such Participant’s Options only to the extent that such Options would have been exercisable upon the Termination Date no later than three (3) months after the Termination Date (or such shorter or longer time period not exceeding five (5) years as may be determined by the Board, with any exercise beyond three (3) months after the Termination Date deemed to be an NQSO), but in any event, no later than the expiration date of the Options.

(b)          If the Participant’s service is Terminated because of Participant’s death or Disability (or the Participant dies within three (3) months after a Termination other than for Cause or because of Participant’s Disability), then Participant’s Options may be exercised only to the extent that such Options would have been exercisable by Participant on the Termination Date and must be exercised by Participant (or Participant’s legal representative or authorized assignee) no later than twelve (12) months after the Termination Date (or such shorter or longer time period not exceeding five (5) years as may be determined by the Board, with any such exercise beyond (i) three (3) months after the Termination Date when the Termination is for any reason other than the Participant’s death or Disability, or (ii) twelve (12) months after the Termination Date when the Termination is for Participant’s death or Disability, deemed to be an NQSO), but in any event no later than the expiration date of the Options.

(c)           Notwithstanding the provisions in paragraph 6.6(a) above, if a Participant’s service is Terminated for Cause, neither the Participant, the Participant’s estate nor such other person who may then hold the Option shall be entitled to exercise any Option with respect to any Shares whatsoever, after Termination, whether or not after Termination the Participant may receive payment from the Company or Subsidiary for vacation pay, for services rendered prior to Termination, for services rendered for the day on which Termination occurs, for salary in lieu of notice, or for any other benefits.  For the purpose of this paragraph, Termination shall be deemed to occur on the date when the Company dispatches notice or advice to the Participant that his service is Terminated.

6.7           Limitations on Exercise.  The Board may specify a reasonable minimum number of Shares that may be purchased on any exercise of an Option, provided that such minimum number will not prevent Participant from exercising the Option for the full number of Shares for which it is then exercisable.

6.8           Limitations on ISO.  The aggregate Fair Market Value (determined as of the date of grant) of Shares with respect to which ISO are exercisable for the first time by a Participant during any calendar year (under this Plan or under any other incentive stock option plan of the Company, Parent or Subsidiary of the Company) will not exceed $100,000.  If the Fair Market Value of Shares on the date of grant with respect to which ISO are exercisable for the first time by a Participant during any calendar year exceeds $100,000, then the Options for the first $100,000 worth of Shares to become exercisable in such calendar year will be ISO and the Options for the amount in excess of $100,000 that become exercisable in that calendar year will be NQSOs.  In the event that the Code or the regulations promulgated there under are amended after the Effective Date of this Plan to provide for a different limit on the Fair Market Value of Shares permitted to be subject to ISO, such different limit will be automatically incorporated herein and will apply to any Options granted after the effective date of such amendment.

6.9           Modification, Extension or Renewal.  The Board may modify, extend or renew outstanding Options and authorize the grant of new Options in substitution therefore, provided that any such action may not, without the written consent of a Participant, impair any of such Participant’s rights under any Option previously granted.  Any outstanding ISO that is modified, extended, renewed or otherwise altered will be treated in accordance with Section 424(h) of the Code.  The Board may reduce the Exercise Price of outstanding Options without the consent of Participants affected by a written notice to them; provided, however, that the Exercise Price may not be reduced below the minimum Exercise Price that would be permitted under Section 6.4 of this Plan for Options granted on the date the action is taken to reduce the Exercise Price.

  

  

  

6.10           No Disqualification.  Notwithstanding any other provision in this Plan, no term of this Plan relating to ISO will be interpreted, amended or altered, nor will any discretion or authority granted under this Plan be exercised, so as to disqualify this Plan under Section 422 of the Code or, without the consent of the Participant affected, to disqualify any ISO under Section 422 of the Code.

7.           STOCK AWARD.

A Stock Award is an offer by the Company to sell to an eligible person Shares that may or may not be subject to restrictions.  The Board will determine to whom an offer will be made, the number of Shares the person may purchase, the price to be paid (the “PURCHASE PRICE”), the restrictions to which the Shares will be subject, and all other terms and conditions of the Stock Award, subject to the following:

 

7.1           Form of Stock Award.  All purchases under a Stock Award made pursuant to this Plan will be evidenced by an Award Agreement (the “STOCK PURCHASE AGREEMENT”) that will be in such form (which need not be the same for each Participant) as the Board will from time to time approve, and will comply with and be subject to the terms and conditions of this Plan.  The offer of Stock will be accepted by the Participant’s execution and delivery of the Stock Purchase Agreement and full payment for the Shares to the Company within thirty (30) days from the date the Stock Purchase Agreement is delivered to the person. If such person does not execute and deliver the Stock Purchase Agreement along with full payment for the Shares to the Company within thirty (30) days, then the offer will terminate, unless otherwise extended by the Board.

7.2           Purchase Price.  The Purchase Price of Shares sold pursuant to a Stock Award will be determined by the Board on the date the Stock Award is granted, except in the case of a sale to a Ten Percent Stockholder, in which case the Purchase Price will be 100% of the Fair Market Value.  Payment of the Purchase Price must be made in accordance with Section 9 of this Plan.

7.3           Terms of Stock Awards.  Stock Awards shall be subject to such restrictions as the Board may impose.  These restrictions may be based upon completion of a specified number of years of service with the Company or upon completion of the performance goals as set out in advance in the Participant’s individual Stock Purchase Agreement. Stock Awards may vary from Participant to Participant and between groups of Participants.  Prior to the grant of a Stock Award, the Board shall:  (a) determine the nature, length and starting date of any Performance Period for the Stock Award; (b) select from among the Performance Factors to be used to measure performance goals, if any; and (c) determine the number of Shares that may be awarded to the Participant.  Prior to the payment of any Stock Award, the Board shall determine the extent to which such Stock Award has been earned.  Performance Periods may overlap and Participants may participate simultaneously with respect to Stock Awards that are subject to different Performance Periods and have different performance goals and other criteria.

7.4           Termination During Performance Period.  If a Participant is Terminated during a Performance Period for any reason, then such Participant will be entitled to payment (whether in Shares, cash or otherwise) with respect to the Stock Award only to the extent earned as of the date of Termination in accordance with the Stock Purchase Agreement, unless the Board determines otherwise.

8.           STOCK BONUSES.

8.1           Awards of Stock Bonuses. A Stock Bonus is an award of Shares (which may consist of Restricted Stock) for extraordinary services rendered to the Company or any Parent or Subsidiary of the Company.  A Stock Bonus will be awarded pursuant to an Award Agreement (the “STOCK BONUS AGREEMENT”) that will be in such form (which need not be the same for each Participant) as the Board will from time to time approve, and will comply with and be subject to the terms and conditions of this Plan.  A Stock Bonus may be awarded upon satisfaction of such performance goals as are set out in advance in the

  

  

  

Participant’s individual Award Agreement (the “PERFORMANCE STOCK BONUS AGREEMENT”) that will be in such form (which need not be the same for each Participant) as the Board will from time to time approve, and will comply with and be subject to the terms and conditions of this Plan.  Stock Bonuses may vary from Participant to Participant and between groups of Participants, and may be based upon the achievement of the Company, Parent or Subsidiary and/or individual performance factors or upon such other criteria as the Board may determine.

8.2           Terms of Stock Bonuses.  The Board will determine the number of Shares to be awarded to the Participant.  If the Stock Bonus is being earned upon the satisfaction of performance goals pursuant to a Performance Stock Bonus Agreement, then the Board will: (a) determine the nature, length and starting date of any Performance Period for each Stock Bonus; (b) select from among the Performance Factors to be used to measure the performance, if any; and (c) determine the number of Shares that may be awarded to the Participant.  Prior to the payment of any Stock Bonus, the Board shall determine the extent to which such Stock Bonuses have been earned.  Performance Periods may overlap and Participants may participate simultaneously with respect to Stock Bonuses that are subject to different Performance Periods and different performance goals and other criteria.  The number of Shares may be fixed or may vary in accordance with such performance goals and criteria as may be determined by the Board.  The Board may adjust the performance goals applicable to the Stock Bonuses to take into account changes in law and accounting or tax rules and to make such adjustments as the Board deems necessary or appropriate to reflect the impact of extraordinary or unusual items, events or circumstances to avoid windfalls or hardships.

8.3           Form of Payment.  The earned portion of a Stock Bonus may be paid to the Participant by the Company either currently or on a deferred basis, with such interest or dividend equivalent, if any, as the Board may determine.  Payment may be made in the form of cash or whole Shares or a combination thereof, either in a lump sum payment or in installments, all as the Board will determine.

9.           PAYMENT FOR SHARE PURCHASES.

9.1           Payment.  Payment for Shares purchased pursuant to this Plan may be made in cash (by check) or, where expressly approved for the Participant by the Board and where permitted by law:

                      (a)           by cancellation of indebtedness of the Company to the Participant;

	
  

	
(b)

	
by surrender of shares that either: (1) have been owned by Participant for more than one year and have been paid for within the meaning of Rule 144 of the Securities Act of 1933; or (2) were obtained by Participant in the public market;

	
  

	 	
(c)

	
by waiver of compensation due or accrued to the Participant for services rendered;

	
  

	
(d)

	
with respect only to purchases upon exercise of an Option, and provided that a public market for the Company’s stock exists:

	
  

	 	
(1)

	
through a “same day sale” commitment from the Participant and a broker-dealer that is a member of the National Association of Securities Dealers (an “NASD DEALER”) whereby the Participant irrevocably elects to exercise the Option and to sell a portion of the Shares so purchased to pay for the Exercise Price, and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward the Exercise Price directly to the Company; or

	
  

	 	
(2)

	
through a “margin” commitment from the Participant and a NASD Dealer whereby the Participant irrevocably elects to exercise the Option and to pledge the Shares so purchased to the NASD Dealer in a margin account as security for a loan from the NASD Dealer in the amount of the Exercise Price, and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward the Exercise Price directly to the Company; or

  

  

  

	
   

	
  (e)            by any combination of the foregoing.

10.           WITHHOLDING TAXES.

10.1           Withholding Generally.  Whenever Shares are to be issued in satisfaction of Awards granted under this Plan, the Company may require the Participant to remit to the Company an amount sufficient to satisfy federal, state and local withholding tax requirements prior to the delivery of any certificate or certificates for such Shares.  Whenever, under this Plan, payments in satisfaction of Awards are to be made in cash, such payment will be net of an amount sufficient to satisfy federal, state, and local withholding tax requirements.

10.2           Stock Withholding.  When, under applicable tax laws, a participant incurs tax liability in connection with the exercise or vesting of any Award that is subject to tax withholding and the Participant is obligated to pay the Company the amount required to be withheld, the Board may allow the Participant to satisfy the minimum withholding tax obligation by electing to have the Company withhold from the Shares to be issued that number of Shares having a Fair Market Value equal to the minimum amount required to be withheld, determined on the date that the amount of tax to be withheld is to be determined.  All elections by a Participant to have Shares withheld for this purpose will be made in accordance with the requirements established by the Board and be in writing in a form acceptable to the Board.

11.           PRIVILEGES OF STOCK OWNERSHIP.

11.1           Voting and Dividends.  No Participant will have any of the rights of a stockholder with respect to any Shares until the Shares are issued to the Participant.  After Shares are issued to the Participant, the Participant will be a stockholder and will have all the rights of a stockholder with respect to such Shares, including the right to vote and receive all dividends or other distributions made or paid with respect to such Shares; provided, that if such Shares are Restricted Stock, then any new, additional or different securities the Participant may become entitled to receive with respect to such Shares by virtue of a stock dividend, stock split or any other change in the corporate or capital structure of the Company will be subject to the same restrictions as the Restricted Stock; provided, further, that the Participant will have no right to retain such stock dividends or stock distributions with respect to Shares that are repurchased at the Participant’s Purchase Price or Exercise Price pursuant to Section 12.

11.2           Financial Statements.  The Company will provide financial statements to each Participant prior to such Participant’s purchase of Shares under this Plan, and to each Participant annually during the period such Participant has Awards outstanding; provided, however, the Company will not be required to provide such financial statements to Participants whose services in connection with the Company assure them access to equivalent information.

12.           TRANSFERABILITY.

Awards granted under this Plan, and any interest therein, will not be transferable or assignable by Participant, and may not be made subject to execution, attachment or similar process, other than by will or by the laws of descent and distribution.  During the lifetime of the Participant an Award will be exercisable only by the Participant.  During the lifetime of the Participant, any elections with respect to an Award may be made only by the Participant unless otherwise determined by the Board and set forth in the Award Agreement with respect to Awards that are not ISOs.

  

  

  

13.           RESTRICTIONS ON SHARES.

At the discretion of the Board, the Company may reserve to itself and/or its assignee(s) in the Award Agreement a right to repurchase a portion of or all Unvested Shares held by a Participant following such Participant’s Termination at any time within ninety (90) days after the later of (a) Participant’s Termination Date, or (b) the date Participant purchases Shares under this Plan.  Such repurchase by the Company shall be for cash and/or cancellation of purchase money indebtedness, and the price per share shall be the Participant’s Exercise Price or the Purchase Price, as applicable.

14.           CERTIFICATES.

All certificates for Shares or other securities delivered under this Plan will be subject to such stock transfer orders, legends and other restrictions as the Board may deem necessary or advisable, including restrictions under any applicable federal, state or foreign securities law, or any rules, regulations and other requirements of the SEC or any stock exchange or automated quotation system upon which the Shares may be listed or quoted.

15.           ESCROW; PLEDGE OF SHARES.

To enforce any restrictions on a Participant’s Shares, the Board may require the Participant to deposit all certificates representing Shares, together with stock powers or other instruments of transfer approved by the Board appropriately endorsed in blank, with the Company or an agent designated by the Company to hold in escrow until such restrictions have lapsed or terminated, and the Board may cause a legend or legends referencing such restrictions to be placed on the certificates.  Any Participant who is permitted to execute a promissory note as partial or full consideration for the purchase of Shares under this Plan will be required to pledge and deposit with the Company all or part of the Shares so purchased as collateral to secure the payment of Participant’s obligation to the Company under the promissory note; provided, however, that the Board may require or accept other or additional forms of collateral to secure the payment of such obligation and, in any event, the Company will have full recourse against the Participant under the promissory note notwithstanding any pledge of the Participant’s Shares or other collateral.  In connection with any pledge of the Shares, Participant will be required to execute and deliver a written pledge agreement in such form as the Board will from time to time approve.  The Shares purchased with the promissory note may be released from the pledge on a pro rata basis as the promissory note is paid.

16.           EXCHANGE AND BUYOUT OF AWARDS.

The Board may, at any time or from time to time, authorize the Company, with the consent of the respective Participants, to issue new Awards in exchange for the surrender and cancellation of any or all outstanding Awards.  The Board may at any time buy from a Participant an Award previously granted with payment in cash, Shares (including Restricted Stock) or other consideration, based on such terms and conditions as the Board and the Participant may agree.

17.           SECURITIES LAW AND OTHER REGULATORY COMPLIANCE.

An Award will not be effective unless such Award is in compliance with all applicable federal and state securities laws, rules and regulations of any governmental body, and the requirements of any stock exchange or automated quotation system upon which the Shares may then be listed or quoted, as they are in effect on the date of grant of the Award and also on the date of exercise or other issuance. Notwithstanding any other provision in this Plan, the Company will have no obligation to issue or deliver certificates for Shares under this Plan prior to: (a) obtaining any approvals from governmental agencies that the Company determines are necessary or advisable; and/or (b) completion of any registration or other qualification of such Shares under any state or federal law or ruling of any governmental body that the Company determines to be necessary or advisable. The Company will be under no obligation to register the Shares with the SEC or to effect compliance with the registration, qualification or listing requirements of any state securities laws, stock exchange or automated quotation system, and the Company will have no liability for any inability or failure to do so.

  

  

  

18.           NO OBLIGATION TO EMPLOY.

 Nothing in this Plan or any Award granted under this Plan will confer or be deemed to confer on any Participant any right to continue in the employ of, or to continue any other relationship with, the Company or any Parent or Subsidiary of the Company or limit in any way the right of the Company or any Parent or Subsidiary of the Company to terminate Participant’s employment or other relationship at any time, with or without cause.

19.           CORPORATE TRANSACTIONS.

19.1           Assumption or Replacement of Awards by Successor.  In the event of (a) a dissolution or liquidation of the Company, (b) a merger or consolidation in which the Company is not the surviving corporation (other than a merger or consolidation with a wholly-owned subsidiary, a reincorporation of the Company in a different jurisdiction, or other transaction in which there is no substantial change in the stockholders of the Company or their relative stock holdings and the Awards granted under this Plan are assumed, converted or replaced by the successor corporation, which assumption will be binding on all Participants), (c) a merger in which the Company is the surviving corporation but after which the stockholders of the Company immediately prior to such merger (other than any stockholder that merges, or which owns or controls another corporation that merges, with the Company in such merger) cease to own their shares or other equity interest in the Company, (d) the sale of substantially all of the assets of the Company, or (e) the acquisition, sale, or transfer of more than 50% of the outstanding shares of the Company by tender offer or similar transaction, any or all outstanding Awards may be assumed, converted or replaced by the successor corporation (if any), which assumption, conversion or replacement will be binding on all Participants.  In the alternative, the successor corporation may substitute equivalent Awards or provide substantially similar consideration to Participants as was provided to stockholders (after taking into account the existing provisions of the Awards). The successor corporation may also issue, in place of outstanding Shares of the Company held by the Participant, substantially similar shares or other property subject to repurchase restrictions no less favorable to the Participant.  In the event such successor corporation (if any) refuses to assume or substitute Awards, as provided above, pursuant to a transaction described in this Subsection 19.1, such Awards will expire on such transaction at such time and on such conditions as the Board will determine.  Notwithstanding anything in this Plan to the contrary, the Board may provide that the vesting of any or all Awards granted pursuant to this Plan will accelerate upon a transaction described in this Section 19.  If the Board exercises such discretion with respect to Options, such Options will become exercisable in full prior to the consummation of such event at such time and on such conditions as the Board determines, and if such Options are not exercised prior to the consummation of the corporate transaction, they shall terminate at such time as determined by the Board.

19.2           Other Treatment of Awards.  Subject to any greater rights granted to Participants under the foregoing provisions of this Section 19, in the event of the occurrence of any transaction described in Section 19.1, any outstanding Awards will be treated as provided in the applicable agreement or plan of merger, consolidation, dissolution, liquidation, or sale of assets.

19.3           Assumption of Awards by the Company.  The Company, from time to time, also may substitute or assume outstanding awards granted by another company, whether in connection with an acquisition of such other company or otherwise, by either: (a) granting an Award under this Plan in substitution of such other company’s award; or (b) assuming such award as if it had been granted under this Plan if the terms of such assumed award could be applied to an Award granted under this Plan.  Such substitution or assumption will be permissible if the holder of the substituted or assumed award would have been eligible to be granted an Award under this Plan if the other company had applied the rules of this Plan to such grant.  In the event the Company assumes an award granted by another company, the terms and conditions of such award will remain unchanged (except that the exercise price and the number and nature of Shares issuable  upon exercise of any such option will be adjusted appropriately pursuant to Section 424(a) of the Code).  In the event the Company elects to grant a new Option rather than assuming an existing option, such new Option may be granted with a similarly adjusted Exercise Price.

  

  

  

20.           ADOPTION AND STOCKHOLDER APPROVAL.

This Plan will become effective on the date on which it is adopted by the Board (the “EFFECTIVE DATE”).  This Plan shall be approved by the stockholders of the Company within twelve (12) months before or after the date this Plan is adopted by the Board.  Upon the Effective Date, the Board may grant Awards pursuant to this Plan.  In the event that stockholder approval of this Plan is not obtained within the time period provided herein, all Awards granted hereunder shall be cancelled, any Shares issued pursuant to any Awards shall be cancelled and any purchase of Shares issued hereunder shall be rescinded.

21.           TERM OF PLAN/GOVERNING LAW.

Unless earlier terminated as provided  herein, this Plan will terminate ten (10) years from the date this Plan is adopted by the Board or, if earlier, the date of stockholder approval.  This Plan and all agreements there under shall be governed by and construed in accordance with the laws of the State of Wisconsin.

22.           AMENDMENT OR TERMINATION OF PLAN.

The Board may at any time terminate or amend this Plan in any respect, including without limitation amendment of any form of Award Agreement or instrument to be executed pursuant to this Plan; provided, however, that the Board will not, without the approval of the stockholders of the Company, amend this Plan in any manner that requires such stockholder approval.

23.           NONEXCLUSIVITY OF THE PLAN.

Neither the adoption of this Plan by the Board, the submission of this Plan to the stockholders of the Company for approval, nor any provision of this Plan will be construed as creating any limitations on the power of the Board to adopt such additional compensation arrangements as it may deem desirable, including, without limitation, the granting of stock options and bonuses otherwise than under this Plan, and such arrangements may be either generally applicable or applicable only in specific cases.

24.           ACTION BY BOARD.

Any action permitted or required to be taken by the Board or any decision or determination permitted or required to be made by the Board pursuant to this Plan shall be taken or made in the Board’s sole and absolute discretion.Exhibit 10.1

 

AGREEMENT

 

THIS AGREEMENT is made as of June 27, 2010 by and
among the following parties (individually a “Party” and collectively the
“Parties”):

 

(1)           Isle
of Capri Casinos, Inc., a Delaware corporation (the “Company”); and

 

(2)           Mr. Jeffrey
D. Goldstein, Mr. Robert S. Goldstein, Mr. Richard A. Goldstein,
Goldstein Group, Inc., an Iowa corporation, B.I.J.R.R. Isle, Inc., a
Missouri corporation, B.I. Isle Partnership, L.P., a Missouri limited
partnership, Rob Isle Partnership, L.P., a Missouri limited partnership, Rich
Isle Partnership, L.P., a Missouri limited partnership, Jeff Isle Partnership,
L.P., a Missouri limited partnership, I.G. Isle Partnership, L.P., a
Missouri limited partnership, The Robert S. Goldstein 2008 Irrevocable Trust, a
trust formed under the laws of the State of Missouri, Nathan Millan and Joshua
Millan (collectively, the “Goldstein Family Group”).

 

Capitalized
terms used herein but not otherwise defined shall have the meaning set forth in
Article 1 of this Agreement.

 

RECITALS

 

WHEREAS, as of the date of this Agreement, the Goldstein
Family Group Beneficially Owns, and has the right to vote, 16,241,486 shares of
the Company’s common stock, par value $.01 per share (the “Company Common
Stock”), representing 50.10% of the outstanding Company Common Stock on the
date hereof;

 

WHEREAS, on April 30, 2010, the Company received a
letter from counsel to the Goldstein Family Group requesting that the Company
give appropriate consideration to the effects of possible future issuances of
common stock on the Goldstein Family Group’s interests;

 

WHEREAS, the Board of Directors of the Company (the “Board”)
created a special committee of the Board of Directors (the “Special
Committee”), composed entirely of independent, non-interested directors, to
consider, with the assistance of independent legal and financial advisors, the
effects of possible future issuances of common stock on the Goldstein Family
Group’s interests; and

 

WHEREAS, the Company and the Goldstein Family Group have
agreed that it is in their mutual interests to enter into this Agreement,
pursuant to which, among other things (i)  the Board has agreed to
recommend that the Company’s stockholders adopt, and submit to the Company’s
stockholders for their consideration, approval and adoption, certain amendments
to the Company’s Certificate of Incorporation in substantially the form set
forth in Exhibit A hereto (the “Charter Amendments”), (ii) the
Board has agreed to approve and adopt all necessary amendments to the By-Laws
to be consistent with the terms of this Agreement and the Charter Amendments,
and (iii) the Company has agreed to nominate certain members of Goldstein
Family Group for election to the Board.

 

 

NOW, THEREFORE, in consideration of the mutual covenants
and agreements contained herein, and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties hereto
agree as follows:

 

ARTICLE 1

 

CERTAIN DEFINITIONS

 

Section 1.1.            In addition to the other definitions
contained elsewhere in this Agreement, the following terms shall have the
meanings specified below for the purposes hereof:

 

(a)           “Affiliate” has the meaning ascribed to it in Rule 12b-2
promulgated under the Exchange Act.

 

(b)           “By-Laws” means the by-laws of the Company, as the
same may be amended from time to time.

 

(c)           “Certificate of Incorporation” means the
certificate of incorporation of the Company, as may the same may be amended
from time to time.

 

(d)           “Beneficial Owner” and “Beneficially Own”
have the same meanings as set forth in Rule 13d-3 promulgated by the SEC
under the Exchange Act; provided, however, that for purposes of
this Agreement, any option, warrant, right, conversion privilege or arrangement
to purchase, acquire or vote Voting Securities, regardless of the time period
during, or the time at which, it may be exercised, and regardless of the
consideration paid, shall be deemed to give the holder thereof beneficial
ownership of the Voting Securities to which it relates.

 

(e)           “Exchange Act” means the Securities Exchange Act of
1934, as amended, and the rules and regulations promulgated by the SEC
under such statute.

 

(f)            “GFIL” means GFIL Holdings, LLC, a Delaware
limited liability company, or a similarly named limited liability company
formed by the Goldstein Family Group prior to the effective date of the Charter
Amendments (it being understood that, upon formation, GFIL will be 100% owned
and controlled by the Goldstein Family Group).

 

(g)           “Nomination Expiration Date” means the earlier to
occur of:  (1) the tenth anniversary
of the date of this Agreement; and (2) such time as the sum of (i) and
(ii) below do not equal in the aggregate at least 22.5% of the then
outstanding shares of Company Common Stock, not including any shares of the
Company’s Class B Common Stock or shares of Common Stock issued upon
conversion of any preferred stock :

 

(i) the total number of
Physical Shares of Company Common Stock directly owned by members of the
Goldstein Family Group in the aggregate; and

 

(ii) the total number
of Physical Shares of Company Common Stock owned by GFIL multiplied by a
fraction, the numerator of which is equal to the total number of 

 

2

 

Physical Shares of the membership interests of GFIL
directly owned by members of the Goldstein Family Group and the denominator of
which is equal to the then total outstanding membership interests of GFIL.

 

For
example, if GFIL owns Physical Shares of Company Common Stock equal to 45% of
the then outstanding shares of Company Common Stock and members of the
Goldstein Family Group own in the aggregate Physical Shares of membership
interests of GFIL equal to 50% of the then outstanding membership interests of
GFIL, the Goldstein Family Group is deemed to own Physical Shares of Company
Common Stock equal to 22.5% of the then outstanding shares of Company Common
Stock.

 

(h)           “Person” means a natural person or any legal,
commercial or governmental entity, including, but not limited to, a
corporation, partnership, joint venture, trust, limited liability company,
group acting in concert or any person acting in a representative capacity.

 

(i)            “Physical Shares” means shares, units or interests
of a corporation or other entity (such as a limited liability company, limited
partnership or trust) Beneficially Owned by any Person as to which such Person
directly or indirectly has voting and investment power and which are held
either of record by such Person or through a broker, dealer, agent, custodian
or other nominee who is the holder of record of such shares.  For the avoidance of doubt, it is understood
that (i) “Physical Shares” shall not include shares Beneficially Owned by
any Person solely as a result of the operation of (x) the proviso in Section 1.1(d) hereof
or (y) Rule 13d-3(d)(1)(i)(A)-(B) promulgated under the Exchange
Act, and (ii) the fact that shares are held in a margin account or are
pledged as collateral pursuant to customary loan documentation shall not
prevent such shares from being considered Physical Shares unless and until such
shares are liquidated pursuant to a margin call or otherwise foreclosed upon by
the applicable broker, lender or other third party.

 

(j)            “Public Offering” means a firm commitment
underwritten offering of shares of common stock of the Company registered under
the Securities Act of 1933, as amended, resulting in net proceeds to the
Company of at least $25 million.

 

(k)           “SEC” means the United States Securities and
Exchange Commission.

 

(l)            “Voting Securities” means any securities of the
Company entitled, or which may be entitled, to vote in the election of
directors, or securities convertible into or exercisable or exchangeable for
such securities, whether or not subject to passage of time or other
contingencies.

 

3

 

ARTICLE 2

 

CERTAIN REPRESENTATIONS AND
WARRANTIES

 

Section 2.1.            Representations and Warranties of
the Company.  The Company represents
and warrants to each member of the Goldstein Family Group as follows.

 

(a)           The Company has the corporate power and authority to enter
into and perform all of its obligations under this Agreement.  This
Agreement has been duly and validly executed and delivered by the Company and
constitutes a valid and binding agreement of the Company, enforceable against
the Company in accordance with its terms, subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general
applicability relating to or affecting creditors’ rights and to general equity
principles.

 

(b)           None of the execution and delivery of this Agreement by
the Company, the consummation by the Company of any of the transactions
contemplated hereby or compliance by the Company with any of the provisions
hereof (i) conflicts with, or results in any breach of, any provision of
the Certificate of Incorporation or By-Laws of the Company, (ii) violates
any order, writ, injunction, decree, judgment, law, statute, rule or
regulation applicable to the Company, any of its subsidiaries or any of their
respective properties or assets or (iii) except for the requirements of
the Exchange Act, requires any filing with, or permit, authorization, consent
or approval of, any governmental entity, except in the case of clauses (ii) and
(iii) where such violations or failures to make or obtain any filing with,
or permit, authorization, consent or approval of, any governmental entity would
not, individually or in the aggregate, materially impair the ability of the
Company to perform this Agreement.

 

Section 2.2.            Representations and Warranties of
the Goldstein Family Group.  Each
member of the Goldstein Family Group represents and warrants to the Company as
follows.

 

(a)           As of the date hereof, the Goldstein Family Group has
Beneficial Ownership of the Voting Securities set forth on Schedule A to
this Agreement.  As of the date hereof,
none of the Goldstein Family Group Beneficially Owns any Voting Securities
other the Voting Securities set forth on Schedule A.  As of the date of this Agreement, all of the
equity interests in and all of the beneficial interests in each entity in the
Goldstein Family Group that is not a natural person are Beneficially Owned by Mr. Jeffrey
D. Goldstein, Mr. Robert S. Goldstein, Mr. Richard A. Goldstein
and/or the spouse, child (including a person legally adopted before the age of
five), or grandchild of any of Mr. Bernard Goldstein (deceased), Mr. Jeffrey
D. Goldstein, Mr. Robert S. Goldstein, Mr. Richard A. Goldstein.

 

(b)           Each member of the Goldstein Family Group has the
requisite power to agree to all of the matters set forth in this Agreement with
respect to the Company Common Stock it Beneficially Owns, and has the full
authority to vote, transfer and hold all the Company Common Stock it
Beneficially Owns, with no limitations, qualifications or restrictions on such
power, subject to applicable securities laws, applicable employee benefit plans
of the Company and the terms of this Agreement.

 

4

 

(c)           Each member of the Goldstein Family Group has the legal capacity
and authority to enter into this Agreement and to perform all of its
obligations under this Agreement.  This
Agreement has been duly and validly executed and delivered by each member of
the Goldstein Family Group and constitutes a valid and binding agreement of
each member of the Goldstein Family Group, enforceable against each member of
the Goldstein Family Group in accordance with its terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws of
general applicability relating to or affecting creditors’ rights and to general
equity principles.

 

(d)           None of the execution and delivery of this Agreement by
any member of the Goldstein Family Group, the consummation by any member of the
Goldstein Family Group of any of the transactions contemplated hereby or
compliance by any member of the Goldstein Family Group with any of the
provisions hereof (i) conflicts with, or results in any breach of, any
organizational documents applicable to any member of the Goldstein Family
Group, (ii) violates any order, writ, injunction, decree, judgment, law,
statute, rule or regulation applicable to any member of the Goldstein
Family Group or any member’s properties or assets or (iii) except for the
requirements of the Exchange Act, requires any filing with, or permit,
authorization, consent or approval of, any governmental entity, except in the
case of clauses (ii) and (iii) where such violations or failures to
make or obtain any filing with, or permit, authorization, consent or approval
of, any governmental entity would not, individually or in the aggregate,
materially impair the ability of any member of the Goldstein Family Group to
perform this Agreement.

 

(e)           Except as permitted by this Agreement, the shares of
Company Common Stock currently held by the Goldstein Family Group are free and
clear of all liens, proxies, powers of attorney, voting trusts and voting
agreements and arrangements (collectively, “liens”), except for any such
liens arising hereunder, under any applicable employee benefit plans of the
Company, or under applicable federal and state securities laws and/or liens
that are not material to performance of any of the obligations of the Goldstein
Family Group under this Agreement.

 

(f)            Each member of the Goldstein Family Group has consulted
with counsel of its choice in connection with its decision to enter into and be
bound by this Agreement or waived its right to so consult.

 

ARTICLE 3

 

ACTIONS BY THE PARTIES

 

Section 3.1.            Governance Amendments.  The Company shall (i) immediately
following the execution of an underwriting agreement for a Public Offering (the
“Underwriting Agreement”), submit for approval by the Company’s stockholders by
written consent in lieu of a meeting, the Charter Amendments and (ii) use
its commercially reasonable efforts in good faith to take, or cause to be
taken, all actions, and to do, or cause to be done, all things necessary,
proper or desirable, or advisable under applicable laws, so as to effect the
Charter Amendments, including, without limitation, the preparation and
dissemination of a proxy statement or information statement to the Company’s
stockholders and the filing of such document with the SEC, the preparation and
filing with the State of Delaware of an amendment to the Certificate of
Incorporation and the adoption of all necessary amendments to the By-Laws to be
consistent 

 

5

 

with the terms of this Agreement and the Charter
Amendments (including, without limitation, the amendments set forth on Exhibit B)
(the “By-Law Amendments”); provided, however, if the
Underwriting Agreement is not executed on or prior to July 23, 2010 (or
such later date as may be mutually agreed to by the Company and the Goldstein
Family Group) (the “Abandonment Date”), the Company shall abandon
efforts to effect the Charter Amendments and the By-Law Amendments and shall
take all steps necessary to effect such abandonment (an “Abandonment”).  Not less than one business day prior to the
dissemination to stockholders or filing with the SEC of any proxy statement or
information statement with respect to the matters set forth herein, the Company
shall furnish copies of such documents to the Goldstein Family Group and its
counsel for their review and comment.

 

Section 3.2.            Actions by the Goldstein Family
Group.

 

(a)           Each member of the Goldstein Family Group who is a
director of the Company shall vote to adopt the Charter Amendments at the board
of directors meeting at which they are considered or by written consent.  Each member of the Goldstein Family Group
shall, effective immediately following the execution of the Underwriting
Agreement and, without the consent of the Company, no later and no earlier than
that time,  execute and duly deliver in
accordance with applicable law the written consent attached hereto as Exhibit C
in order to approve the Charter Amendments and shall not withdraw that action
by consent without the consent of the Company. 
In the case of an Abandonment, each member of the Goldstein Family Group
shall take all steps reasonably requested by the Company to effect the
Abandonment.

 

(b)           Each member of the Goldstein Family Group shall take all
actions reasonably requested by the Company to support the Company’s efforts to
raise capital through the issuance of additional shares of Company Common
Stock.

 

(c)           At all times until the Nomination Expiration Date, all of
the equity interests in and all of the beneficial interests in each entity in
the Goldstein Family Group that is not a natural person (other than GFIL) will
be Beneficially Owned by Mr. Jeffrey D. Goldstein, Mr. Robert S.
Goldstein, Mr. Richard A. Goldstein and/or the spouse, child (including
any personal legally adopted before the age of five), or grandchild of any of Mr. Bernard
Goldstein, Mr. Jeffrey D. Goldstein, Mr. Robert S. Goldstein, Mr. Richard
A. Goldstein.

 

Section 3.3.            Director Nominations.

 

(a)           Effective upon the filing with the Secretary of State of
the Charter Amendments, Messrs. Jeffrey D. Goldstein, Robert S. Goldstein
and Richard A. Goldstein (collectively, the “Goldstein Directors”) shall
be appointed to Classes I, II and III of the Board, respectively.

 

(b)           Prior to the Nomination Expiration Date, upon each
subsequent election of the class of directors to which each of the Goldstein
Directors is appointed pursuant to Section 3.3(a), the Company shall take
all action reasonably necessary for the Board to nominate and recommend for
election as a director of the Company each of the Goldstein Directors, subject
to each Goldstein Director satisfying and continuing to satisfy applicable
Nasdaq requirements and other applicable law.

 

6

 

(c)           Prior to the Nomination Expiration Date, in the event that
any of the Goldstein Directors dies or becomes legally incapacitated, the
Company shall take all action reasonably necessary to nominate for election as
a director of the Company any descendant of Bernard Goldstein (including a
person legally adopted before the age of five) who is suitable to serve as a
director of the Company pursuant to applicable Nasdaq requirements and other
applicable law and designated by the remaining Goldstein Directors who then are
competent; provided, however, that if the Company’s Board
reasonably objects to such designee another descendant reasonably acceptable to
the Board may be so designated by the remaining qualified Goldstein
Directors.  For the avoidance of doubt,
the Company may at any time or from time to time increase or decrease the size
of the Board and/or change its composition, provided that such increase or
decrease may not affect the tenure of any Goldstein Director or any director
nominated pursuant to this subsection (c) or any of the Company’s
obligations under this Section 3.3.

 

(d)           Prior to the Nomination Expiration Date, the Company shall
schedule and hold its annual shareholders meeting with respect to the election
of directors in accordance with its past practices and shall not delay its
annual shareholder meetings in a manner which deprives the Goldstein Family
Group of the benefits of this Section 3.3. Nothing herein shall prevent
the Company from changing its fiscal year end if deemed advisable by the
Company’s Board.

 

(e)           It is understood and agreed that this Section 3.3
shall, without any further action of any party, automatically terminate and be
of no further force and effect immediately upon the occurrence of an
Abandonment.

 

Section 3.4.            Future Share Acquisitions.  Nothing in this Agreement shall be deemed to
restrict the ability of the Goldstein Family Group or any member of the
Goldstein Family Group to acquire additional shares of Company Common Stock or
the ability of the Board to act in a manner consistent with its fiduciary
duties and in the best interest of all the Company’s stockholders with respect
to acquisitions of Company Common Stock by any Person.  It is understood and agreed that this Section 3.4
shall, without any further action of any party, automatically terminate and be
of no further force and effect immediately upon the occurrence of an
Abandonment.

 

ARTICLE 4

 

MISCELLANEOUS

 

Section 4.1.            Entire Agreement.  This Agreement constitutes the entire
agreement of the Parties with respect to its subject matter and supersedes any
and all prior representations, agreements or understandings, whether written or
oral, between or among any of them with respect to such subject matter.  This Agreement may be amended only by a
written agreement duly executed by the Parties. During any period in which the
Company has a class of equity securities listed on a national securities
exchange, any material amendment to this
Agreement must be approved by a majority of the independent, non-interested
directors of the Company, or a special committee of the board of directors of
the Company comprised solely of independent, non-interested directors.

 

7

 

Section 4.2.            Notices.  All notices and other communications
hereunder shall be in writing and shall be deemed duly given (i) on the
date of delivery if delivered personally, or by telecopy or facsimile, upon
confirmation of receipt, (ii) on the first business day following the date
of dispatch if delivered by a recognized next-day courier service, or (iii) on
the third business day following the date of mailing if delivered by registered
or certified mail, return receipt requested, postage prepaid.  All notices hereunder shall be delivered as
set forth below or pursuant to such other instructions as may be designated in
writing by the party to receive such notice.

 

If to the Company:

 

Isle
of Capri Casinos, Inc.

600 Emerson Drive, Suite 300

St. Louis, Missouri 63141

Facsimile: (314) 813-9467

Attention: Chief Executive Officer

 

with a copy to:

 

Isle of Capri Casinos, Inc.

600 Emerson Drive, Suite 300

St. Louis, Missouri 63141

Facsimile: (314) 813-9481

Attention: General Counsel

 

If
to the Goldstein Family Group:

 

Robert
S. Goldstein

700 Office Parkway

St. Louis, Missouri 63141

Facsimile:  (314) 872-2461

Attention:  Robert S. Goldstein

 

with
a copy to:

 

Robert
G. Ellis

2117 State St. 

Bettendorf, Iowa 52722

Facsimile:  (563) 344-5317

Attention:  Robert G. Ellis

 

8

 

and

 

Thompson Coburn LLP

One US Bank Plaza 

St. Louis, Missouri 63101

Facsimile:  (314) 552-7072

Attention:  Thomas A. Litz, Esq.

 

Section 4.3.            Governing Law and Venue;
Submission to Jurisdiction.  This
Agreement shall be governed in all respects, including as to validity,
interpretation and effect, by the laws of the State of Delaware, without giving
effect to its principles or rules of conflict of laws.  Each party irrevocably submits to the
jurisdiction of the Court of Chancery of the State of Delaware (the “Chosen
Court”), for the purposes of any suit, action or other proceeding arising
out of this Agreement or any transaction contemplated hereby.  Each party agrees to commence any action,
suit or proceeding relating hereto in the Chosen Court.  Each party irrevocably and unconditionally
waives any objection to the laying of venue of any action, suit or proceeding
arising out of this Agreement or the transactions contemplated hereby in the
Chosen Court, and hereby further irrevocably and unconditionally waives and
agrees not to plead or claim in such Chosen Court that any such action, suit or
proceeding brought in such Chosen Court has been brought in an inconvenient
forum.  Each party further irrevocably
consents to and grants the Chosen Court jurisdiction over the person of such
parties and, to the extent legally effective, over the subject matter of any
such dispute and agrees that mailing of process or other papers in connection
with any such action or proceeding in the manner provided in Section 4.2
or in such other manner as may be permitted by applicable law, shall be valid
and sufficient service thereof.  The
parties agree that a final judgment in any such suit, action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by applicable law.

 

Section 4.4.            Waiver of Jury Trial.  EACH OF THE PARTIES HEREBY WAIVES TRIAL BY
JURY IN ANY JUDICIAL PROCEEDING IN ANY WAY ARISING OUT OF, RELATED TO, OR
CONNECTED WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

Section 4.5.            Specific Performance.  Each of the members of the Goldstein Family
Group, on the one hand, and the Company, on the other hand, acknowledges and
agrees that irreparable injury to the other party hereto would occur in the
event any of the provisions of this Agreement were not performed in accordance
with their specific terms or were otherwise breached and that such injury would
not be adequately compensable in damages. It is accordingly agreed that the
members of the Goldstein Family Group or any of them, on the one hand, and the
Company, on the other hand (the “Moving Party”), shall each be entitled
to specific enforcement of, and injunctive relief to prevent any violation of,
the terms hereof, and the other party hereto will not take action, directly or
indirectly, in opposition to the Moving Party seeking such relief on the
grounds that any other remedy or relief is available at law or in equity.

 

Section 4.6.            Assignment.  This Agreement may not be assigned by any
Party without the prior written consent of the other Parties.  This Agreement shall be binding upon, and 

 

9

 

inure to the benefit of, the respective successors
and permitted assigns of the Parties. 
This Agreement shall confer no rights or benefits upon any Person other
than the Parties.

 

Section 4.7.            Waiver.  Any waiver by any Party of a breach of any
provision of this Agreement shall not be deemed to be a waiver of any other
breach of such provision or of any breach of any other provision of this
Agreement.

 

Section 4.8.            Counterparts.  This Agreement may be executed in one or more
counterparts, and by facsimile or .pdf format, all of which shall be considered
one and the same agreement and shall become effective when one or more
counterparts have been signed by each of the parties and delivered to the other
party, it being understood that all parties need not sign the same counterpart.

 

Section 4.9.            Expenses.  All costs and expenses incurred in connection
with this Agreement and the transactions contemplated hereby shall be paid by
the Party incurring such expenses.

 

[Signature Pages Follow]

 

10

 

IN WITNESS WHEREOF, this Agreement has been
executed by each of the Parties, through their respective duly authorized
representative, as of the date first above written.

 

 

	
   

  	
  ISLE OF CAPRI
  CASINOS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edmund L. Quatmann, Jr.

  
	
   

  	
   

  	
  Name: Edmund L. Quatmann, Jr.

  
	
   

  	
   

  	
  Title: SVP, General Counsel
  and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GOLDSTEIN GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert S. Goldstein

  
	
   

  	
   

  	
  Name: Robert S. Goldstein

  
	
   

  	
   

  	
  Title: Co-Chairman

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  B.I.J.R.R. ISLE, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert S. Goldstein

  
	
   

  	
   

  	
  Name: Robert S. Goldstein

  
	
   

  	
   

  	
  Title: Co-Chairman

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  B.I. ISLE PARTNERSHIP,
  L.P.

  
	
   

  	
   

  	
  By: B.I.J.R.R. ISLE, INC., ITS SOLE GENERAL PARTNER

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert S. Goldstein

  
	
   

  	
   

  	
  Name: Robert S. Goldstein

  
	
   

  	
   

  	
  Title: Co-Chairman

  

 

 

	
   

  	
  ROB ISLE PARTNERSHIP, L.P.

  
	
   

  	
   

  	
  By: B.I.J.R.R. ISLE, INC., ITS SOLE GENERAL PARTNER

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert S. Goldstein

  
	
   

  	
   

  	
  Name: Robert S. Goldstein

  
	
   

  	
   

  	
  Title: Co-Chairman

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  RICH ISLE PARTNERSHIP,
  L.P.

  
	
   

  	
   

  	
  By: B.I.J.R.R.
  ISLE, INC., ITS SOLE GENERAL PARTNER

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert S. Goldstein

  
	
   

  	
   

  	
  Name: Robert S. Goldstein

  
	
   

  	
   

  	
  Title: Co-Chairman

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  JEFF ISLE PARTNERSHIP,
  L.P.

  
	
   

  	
   

  	
  By: B.I.J.R.R.
  ISLE, INC., ITS SOLE GENERAL PARTNER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert S. Goldstein

  
	
   

  	
   

  	
  Name: Robert S. Goldstein

  
	
   

  	
   

  	
  Title: Co-Chairman

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  I.G. ISLE PARTNERSHIP,
  L.P.

  
	
   

  	
   

  	
  By: B.I.J.R.R.
  ISLE, INC., ITS SOLE GENERAL PARTNER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert S. Goldstein

  
	
   

  	
   

  	
  Name: Robert S. Goldstein

  
	
   

  	
   

  	
  Title: Co-Chairman

  

 

 

	
   

  	
  ROBERT S. GOLDSTEIN 2008
  IRREVOCABLE TRUST

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Marc Goldstein

  
	
   

  	
   

  	
  Name: Marc Goldstein

  
	
   

  	
   

  	
  Title: Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Jeffrey D. Goldstein

  
	
   

  	
  JEFFREY D. GOLDSTEIN

  
	
   

  	
   

  
	
   

  	
  /s/ Robert S. Goldstein

  
	
   

  	
  ROBERT S. GOLDSTEIN

  
	
   

  	
   

  
	
   

  	
  /s/ Richard A. Goldstein

  
	
   

  	
  RICHARD A. GOLDSTEIN

  
	
   

  	
   

  
	
   

  	
  /s/ Joshua Millan

  
	
   

  	
  JOSHUA MILLAN

  
	
   

  	
   

  
	
   

  	
  /s/ Nathan Millan

  
	
   

  	
  NATHAN MILLAN

  

 

 

Schedule A

 

Goldstein Family Group Beneficial Ownership of the Voting Securities

 

	
  Record
  Owner/Account Name

  	
   

  	
  Number of Shares

  	
   

  
	
  BI Isle Partnership, L.P.

  	
   

  	
  4,502,625

  	
   

  
	
  Goldstein Group, Inc.

  	
   

  	
  2,898,243

  	
   

  
	
  Jeff Isle Partnership, L.P.

  	
   

  	
  1,400,000

  	
   

  
	
  Rob Isle Partnership, L.P.

  	
   

  	
  1,400,000

  	
   

  
	
  Rich Isle Partnership, L.P.

  	
   

  	
  1,400,000

  	
   

  
	
  Jeffrey D. Goldstein - brokerage account

  	
   

  	
  817,109

  	
   

  
	
  Robert S. Goldstein Trust

  	
   

  	
  780,966

  	
   

  
	
  Richard A. Goldstein Trust

  	
   

  	
  676,024

  	
   

  
	
  I.G. Isle Partnership, L.P.

  	
   

  	
  570,490

  	
   

  
	
  Jeffrey D. Goldstein 2008 Irrevocable Trust

  	
   

  	
  540,000

  	
   

  
	
  Robert S. D. Goldstein 2008 Irrevocable Trust

  	
   

  	
  540,000

  	
   

  
	
  Richard A. Goldstein 2008 Irrevocable Trust

  	
   

  	
  540,000

  	
   

  
	
  Goldstein Family Foundation

  	
   

  	
  75,000

  	
   

  
	
  Restricted Stock – Robert S. Goldstein

  	
   

  	
  28,333

  	
   

  
	
  IRA Beneficiary Account – Spousal Participant

  	
   

  	
  24,476

  	
   

  
	
  Restricted Stock – Jeffrey D. Goldstein

  	
   

  	
  14,803

  	
   

  
	
  Joshua Millan

  	
   

  	
  12,649

  	
   

  
	
  Nathan Millan

  	
   

  	
  12,500

  	
   

  
	
  Restricted Stock – Richard A. Goldstein

  	
   

  	
  8,268

  	
   

  
	
   

  	
   

  	
  16,241,486

  	
   

  

 

 

Exhibit A — Charter Amendments

 

 

CERTIFICATE OF AMENDMENT TO

CERTIFICATE OF INCORPORATION OF

ISLE OF CAPRI CASINOS, INC.

 

Isle of Capri Casinos, Inc. (the “Corporation”),
a corporation organized and existing under and by virtue of the General
Corporation Law of the State of Delaware, as amended (the “DGCL”), DOES
HEREBY CERTIFY:

 

FIRST:  That the Board of Directors of the
Corporation adopted resolutions proposing and declaring advisable the following
amendment to the Certificate of Incorporation of the Corporation:

 

RESOLVED,
that the Certificate of Incorporation of the Corporation be amended so that Section 4.1
of Article 4 thereof shall be amended to read in its entirety as follows:

 

“4.1)  The aggregate number of
shares the corporation has authority to issue shall be 65,000,000 shares, of
which 60,000,000 shares of the par value $.01 shall be designated as “Common
Stock,” 3,000,000 shares of the par value $.01 shall be designated as “Class B
Common Stock,” 2,000,000 shares of the par value $.01 shall be designated as “Preferred
Stock.””

 

RESOLVED,
that the Certificate of Incorporation of the Corporation be amended so that the
following Article 13 be added immediately after the existing Article 12:

 

“ARTICLE 13 — CERTAIN GOVERNANCE PROVISIONS

 

13.1.        Special Vote
Requirement

 

(a)           The affirmative vote or consent of the holders of at
least two-thirds of the voting power of the corporation, voting as a single
class, shall be required for (i) the adoption of any agreement providing
for the merger or consolidation of the corporation with or into any other
corporation or entity, or similar transaction in which the shares of stock of
the corporation are exchanged for or changed into other stock or securities,
cash and/or other property, (ii) the adoption of any agreement providing
for the sale or lease of all or substantially all of the assets or property of
the corporation and its subsidiaries (taken as a whole), (iii) spin-off,
split-up or extraordinary dividend to shareholders and (iv) the
liquidation, dissolution or winding up of the corporation. Such affirmative
vote or consent shall be in addition to the votes or consents of the holders of
stock of the corporation otherwise required by law or any agreement between the
corporation and any national securities exchange.

 

 

(b)           This Section 13.1, and the terms and conditions
contained herein, shall, without any action of any person or entity,
automatically expire and be null and void and of no further effect upon the
first to occur of (i) (A) the Goldstein Family Group (as defined
below) and/or (B) GFIL (as defined below) ceasing to hold common stock of
the corporation representing at least 22.5% of the corporation’s outstanding
common stock, not including any shares of Class B common stock or shares
of common stock issued upon conversion of any preferred stock (provided,
however, that if GFIL, or a similarly named limited liability company that is
100% owned and controlled as of the Article 13 Effective Time by the
Goldstein Family Group (“GFIL”) has not been formed by the Goldstein Family
Group as of the Article 13 Effective Time, subclause (B) of this
clause (i) shall be null and void and the terms of this clause (i) shall
be based solely on the ownership of the Goldstein Family Group) and (ii) the
tenth anniversary of the Article 13 Effective Time (as defined below)(the
time at which the first of the matters set forth in the foregoing clauses (i) and
(ii) occurs is referred to herein as the “Supermajority Expiration Time”).

 

(c)           For purposes of this certificate of incorporation, “Goldstein
Family Group” means (i) each of Jeffrey D. Goldstein, Richard A.
Goldstein, Robert S. Goldstein, Joshua Millan and Nathan Millan (each, a “Goldstein
Individual Stockholder”, and collectively, the “Goldstein Individual
Stockholders”); (ii) each spouse, child or grandchild of such Goldstein
Individual Stockholder or child or grandchild of such Goldstein Individual
Stockholder’s spouse, and upon the death of such Goldstein Individual
Stockholder, by the will or other instrument taking effect at the death of such
Goldstein Individual Stockholder or by applicable laws of descent and
distribution, such Goldstein Individual Stockholder’s estate, executors,
administrators and personal representatives and then such Goldstein Individual
Stockholder’s heirs, legatees or distributes, (iii) each trust created for
the benefit of one or more of such Goldstein Individual Stockholders or the
persons listed in clause (ii) above, including the Robert S. Goldstein
2008 Irrevocable Trust, and (iv) each corporation, limited partnership or
limited liability company controlled by such Goldstein Individual Stockholder
or one or more of the persons listed in clauses (i) and (ii) above,
including the Goldstein Group, Inc., B.I.J.R.R. Isle, Inc., B.I. Isle
Partnership, L.P., Rob Isle Partnership, L.P., Rich Isle Partnership, L.P.,
Jeff Isle Partnership, L.P., I.G. Isle Partnership, L.P. and GFIL.  For purposes of this paragraph, a person
adopted before the age of five shall be deemed to be the child or the
grandchild of the adoptive parents or grandparents, as the case may be.

 

(d)           From the Article 13 Effective Time until the
Supermajority Expiration Time, the corporation shall not amend, modify or
repeal this Section 13.1 unless such amendment, modification or repeal is
approved

 

 

by the affirmative vote or
consent of the holders of at least two-thirds of the voting power of the
corporation, voting as a single class.

 

13.2         Classes of
Directors

 

(a)           The Board of Directors of the corporation shall be
divided into three classes, designated Class I, Class II and Class III.  Each class of directors shall consist, as
nearly as may be possible, of one-third of the total number of directors
constituting the entire board of directors of the corporation.  Upon the filing with the Secretary of State
of the Certificate of Amendment to this Certificate of Incorporation that
provides for the inclusion of this Article 13 in this Certificate of
Incorporation (the “Article 13 Effective Time”), the Board of Directors
shall consist of the members appointed to the following classes:

 

Class I: Jeffrey D. Goldstein, Shaun R. Hayes,
Lee S. Wielansky, John G. Brackenbury

 

Class II: Robert S. Goldstein, Gregory J.
Kozicz, W. Randolph Baker

 

Class III: Richard A. Goldstein, Alan J.
Glazer, James B. Perry

 

The terms of the initial Class I directors
shall expire at the first annual meeting of shareholders to be held after the Article 13
Effective Time; the terms of the initial Class II directors shall expire
at the second annual meeting of shareholders to be held after the Article 13
Effective Time; and the terms of the initial Class III directors shall
expire at the third annual meeting of shareholders to be held after the Article 13
Effective Time.

 

(b)           At each annual meeting of shareholders, successors
to the class of directors whose terms expire at that annual meeting shall be
elected for a three-year term.

 

(c)           A director shall hold office until the annual
meeting of shareholders for the year in which his or her term expires and until
his or her successor shall be elected and shall qualify, subject, however, to
prior death, resignation, retirement, disqualification or removal from office.

 

(d)           Any vacancy on the Board of Directors of the
corporation may be filled by a majority of the Board of Directors then in
office and any director elected to fill such a vacancy shall have the same
remaining term as that of his or her predecessor.

 

(e)           From the Article 13 Effective Time until the
Supermajority Expiration Time, the corporation shall not amend, modify or
repeal this Section 13.2 unless such amendment, modification or repeal is
approved

 

 

by
the those members of the Goldstein Family Group who hold a majority of the
total shares of common stock of the corporation held by the Goldstein Family
Group.”

 

SECOND:  That in lieu of a meeting and vote of
stockholders, the stockholders have given their written consent to this
amendment in accordance with the provisions of Section 228 of the DGCL.

 

THIRD:  That the aforesaid amendment was duly adopted
in accordance with the applicable provisions of Sections 242 and 228 of the
DGCL.

 

IN
WITNESS WHEREOF, the Corporation has caused this Certificate of Amendment to be
executed by its duly authorized officer this
           day of
          , 2010.

 

 

	
   

  	
  Isle of Capri Casinos, Inc., a Delaware
  corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

Exhibit B — By-Law Amendments

 

1.                                       The last
sentence of Section 3.1 of the Company’s By-Laws shall be amended to read
in its entirety as follows:

 

“A
director shall hold office until the annual meeting of shareholders for the
year in which his or her term expires and until his or her successor shall be
elected and shall qualify, subject, however, to prior death, resignation,
retirement, disqualification or removal from office.”

 

2.                                       Section 3.2
of the Company’s By-Laws shall be amended to read in its entirety as follows:

 

“Vacancies
on Board of Directors.  Any vacancy
on the Board of Directors of the corporation may be filled by a majority of the
Board of Directors then in office and any director elected to fill such a
vacancy shall have the same remaining term as that of his or her predecessor.”

 

 

Exhibit C — Stockholder Consent

 

 

WRITTEN CONSENT OF THE HOLDERS OF

 

A MAJORITY OF THE COMMON STOCK OF

 

ISLE OF CAPRI CASINOS, INC.

 

PURSUANT TO SECTION 228 OF THE

 

GENERAL CORPORATION LAW OF THE STATE OF DELAWARE

 

June       , 2010

 

Pursuant
to Section 228 of the General Corporation Law of the State of Delaware and
Section 7.3 of the Bylaws of Isle
of Capri Casinos, Inc., a Delaware corporation (the “Corporation”),
Jeffrey D. Goldstein, Richard A. Goldstein, Robert S. Goldstein, Goldstein
Group, Inc., B.I.J.R.R. Isle, Inc., B.I. Isle Partnership, L.P., Rob
Isle Partnership, L.P., Rich Isle Partnership, L.P., Jeff Isle Partnership,
L.P., I.G. Isle Partnership, L.P., Robert S. Goldstein 2008 Irrevocable
Trust, Joshua Millan and Nathan Millan, each of whom or which owns and has the
power to vote on the date set forth above the number of shares of Common Stock
of the Corporation set forth opposite his or its name on the signature pages below
(as evidenced by the copies of brokerage account statements or stock
certificates attached hereto as Exhibit A) and who or which
collectively own and have the power to vote on the date set forth above [                            ]
shares of Common Stock of the Corporation, do hereby consent to, with respect
to all shares of Common Stock held by them as of the date hereof, the amendment
of the Certificate of Incorporation of the Corporation in the form set forth as
Exhibit B without a meeting.

 

THE ACTIONS TAKEN BY THIS CONSENT SHALL HAVE THE SAME FORCE AND EFFECT
AS IF TAKEN AT ANY MEETING OF THE STOCKHOLDERS OF THE CORPORATION, DULY CALLED
AND CONSTITUTED PURSUANT TO THE LAWS OF THE STATE OF DELAWARE.

 

 

This
Action by Written Consent may be executed in one or more counterparts, each of
which shall be deemed an original, but all of which shall constitute one and
the same instrument.

 

IN WITNESS WHEREOF, each of the undersigned
has executed this Action by Written Consent as of the date below indicated.

 

 

	
  Number of Shares

  of Common Stock

  	
   

  
	
   

  	
   

  
	
   

  	
  shares

  	
   

  
	
   

  	
   

  	
  Jeffrey
  D. Goldstein 

  
	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  shares

  	
   

  
	
   

  	
   

  	
  Richard
  A. Goldstein 

  
	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  shares

  	
   

  
	
   

  	
   

  	
  Robert
  S. Goldstein 

  
	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  shares

  	
  Goldstein
  Group, Inc., an Iowa corporation   
  

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  shares

  	
  B.I.J.R.R.
  Isle, Inc., a Missouri corporation   
  

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  

 

 

	
  Number of Shares

  of Common Stock

  	
   

  
	
   

  	
   

  
	
   

  	
  shares

  	
  B.I.
  Isle Partnership, L.P., a Missouri limited partnership

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:
  

  	
  B.I.J.R.R.
  Isle, Inc., a Missouri corporation, its general partner 

  
	
   

  	
   

  	
  By:
  

  	
   

  
	
   

  	
   

  	
  Name:
  

  	
   

  
	
   

  	
   

  	
  Title:
  

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  shares

  	
  Rob
  Isle Partnership, L.P., a Missouri limited partnership 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:
  

  	
  B.I.J.R.R.
  Isle, Inc., a Missouri corporation, its general partner 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:
  

  	
   

  
	
   

  	
   

  	
  Name:
  

  	
   

  
	
   

  	
   

  	
  Title:
  

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  shares

  	
  Rich
  Isle Partnership, L.P., a Missouri limited partnership

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:
  

  	
  B.I.J.R.R.
  Isle, Inc., a Missouri corporation, its general partner 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:
  

  	
   

  
	
   

  	
   

  	
  Name:
  

  	
   

  
	
   

  	
   

  	
  Title:
  

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  shares

  	
  Jeff
  Isle Partnership, L.P., a Missouri limited partnership 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:
  

  	
  B.I.J.R.R.
  Isle, Inc., a Missouri corporation, its general partner 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:
  

  	
   

  
	
   

  	
   

  	
  Name:
  

  	
   

  
	
   

  	
   

  	
  Title:
  

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  

 

 

	
  Number of Shares

  of Common Stock

  	
   

  
	
   

  	
   

  
	
   

  	
  shares

  	
  I.G.
  Isle Partnership, L.P., a Missouri limited partnership  

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:
  

  	
  B.I.J.R.R.
  Isle, Inc., a Missouri corporation, its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:
  

  	
   

  
	
   

  	
   

  	
  Name:
  

  	
   

  
	
   

  	
   

  	
  Title:
  

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  shares

  	
  Robert
  S. Goldstein 2008 Irrevocable Trust, a Missouri trust 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:
  

  	
   

  
	
   

  	
   

  	
  Name:
  

  	
   

  
	
   

  	
   

  	
  Title:
  

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  shares

  	
   

  
	
   

  	
   

  	
  Joshua
  Millan 

  
	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  shares

  	
   

  
	
   

  	
   

  	
  Nathan
  Millan 

  
	
   

  	
   

  	
  Date:

  	
   

  

 

 

 

EXHIBIT A

 

Evidence of Common Stock
Ownership

 

See attached.

 

 

EXHIBIT B

 

Certificate of Amendment to Certificate of Incorporation

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