Document:

Exhibit 10.16

 

FIRST AMENDMENT TO EMPLOYMENT AGREEMENT

 

THIS FIRST AMENDMENT TO EMPLOYMENT AGREEMENT (“Amendment”) is made and entered into as of this 9th day of January 2014 by and between Isle of Capri Casinos, Inc., a Delaware corporation (the “Company”), and Edmund L. Quatmann, Jr. (“Employee”).

 

WHEREAS, the Company and Employee are parties to that certain Employment Agreement dated as of July 1, 2008 (the “Agreement”);

 

WHEREAS, a Code Section 409A Compliance Addendum to the Agreement was entered into between the Company and Employee effective as of January 1, 2009; and

 

WHEREAS, amendment of the Agreement is now considered desirable.

 

NOW, THEREFORE, in consideration of the promises set forth herein and other good and valuable consideration, the Company and Employee hereby agree that the Agreement is hereby amended, effective as of December 2, 2013, by substituting the following for Section 4 of the Agreement:

 

“4.                                Change in Control of the Company.  If (i) there is a sale, acquisition, merger, or buyout of the Company to an unaffiliated person, or any person that is not an ‘affiliate’ (as such term is defined under the Securities Exchange Act of 1934) of the Company or any of its shareholders on July 1, 2008 becomes the legal and beneficial owner of more than 50% of the Company’s common stock (a ‘Change in Control’), and (ii) immediately prior to, on or within 12 months after such Change in Control, (A) the Company terminates the Term of Employment pursuant to Section 3(a)(ii) (for any reason without ‘cause’) or (B) Employee voluntarily terminates the Term of Employment pursuant to Section 3(a)(iii) in circumstances where there has been a significant reduction in the authority, responsibilities, position or compensation of Employee or Employee has been required to move the location of his principal residence a distance of more than 35 miles, and the Company has failed to remedy such situation within 30 days after receipt of Employee’s written notice thereof, then in lieu of the severance payments, if any, otherwise payable to Employee under Section 3 of the Agreement, Employee will be entitled to the following severance payments and benefits:

 

(a)                                 Two times Annual Base Salary payable in 24 monthly installments beginning on the first day following the six-month anniversary of Employee’s Termination of Employment (as defined in the Compliance Addendum—Code Section 409A to this Agreement); plus a lump sum payment equal to the amount of any earned but unpaid bonus plus the average of the previous 3 years bonus payment, inclusive of deferred amounts, if any, which lump sum shall be paid to Employee on the first day following the six-month anniversary of Employee’s Termination of Employment.

 

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Notwithstanding the foregoing, the Board of Directors may authorize that portion of the foregoing payments under this Section 4(a) that qualify as a 409A Exempt Payment (as defined in Section 3(a)(ii)) to be paid in a single lump sum to Employee on the first payroll date following Employee’s Termination of Employment; and the remaining Annual Base Salary amounts to be paid to Employee in 24 equal installments beginning on the six-month anniversary of Employee’s Termination of Employment and ending on the second anniversary of Employee’s Termination of Employment and the remaining bonus amount, if any, to be paid in a single lump sum on the six-month anniversary of Employee’s Termination of Employment.

 

(b)                                 During the 24-month period following Employee’s Termination of Employment (the ‘Continuation Period’) Employee will receive continuation coverage for himself and his spouse and dependents under the Company’s group medical, dental and vision plans (collectively, the ‘Medical Plan’), at Employee’s sole expense, consistent with the level of coverage otherwise in effect as of his Termination of Employment.  During the Continuation Period, the Company shall provide to Employee an amount such that, after the payment of all income and employment taxes due with respect to such amount, there remains an amount equal to the Company’s premium contribution paid with respect to its active employees for the level of coverage provided to Employee and his spouse and dependents under the Medical Plan during such period.  Any payment required pursuant to the preceding sentence shall be paid monthly during the Continuation Period; provided, however, that that payment for the period beginning on Employee’s Termination of Employment and ending on the six month anniversary of Employee’s Termination of Employment shall be paid in a lump sum on the first day following the six month anniversary of Employee’s Termination of Employment.  Nothing in this Section 4(b) shall be deemed to offset or otherwise limit the period of continuation coverage otherwise available to Employee and his spouse and dependents under Code Section 4980B, which shall be deemed to commence following the end of the Continuation period and shall be provided at Employee’s sole expense.

 

Upon the occurrence of a Change in Control, all stock options owned by Employee shall become fully vested and exercisable.  As a condition to receiving the payments described in clause (a) above, Employee shall be required to execute and deliver to the Company a general release in customary and agreed form, provided that if Employee fails to sign the release, Employee shall not be entitled to any severance payments or benefits under this Section 4; and provided further, if any severance payments or benefits are subject to Section 409A of the Code, Employee shall only be entitled to any such severance payments or benefits if such release has been executed, is effective and the applicable revocation period has expired no later than the date as of which such payment of the severance or benefits are otherwise to commence and if

 

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such requirements are not satisfied, Employee shall not be entitled to any such portion of the severance payments or benefits thereafter.”

 

This Amendment was executed on behalf of the Company by its duly authorized officer and by Employee as of the dates set forth below and effective as provided herein.  If this Amendment was executed in multiple counterparts, each of which has been deemed an original.

 

IN WITNESS HEREOF, each party has caused this Amendment to be executed in a manner appropriate for such party as of the date first above written.

 

	
ISLE   OF CAPRI CASINOS, INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Virginia McDowell
    	
 
    
	
Name:   Virginia McDowell
    	
 
    
	
Its:   President and Chief Executive Officer
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
EMPLOYEE
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/   Edmund L. Quatmann, Jr.
    	
 
    
	
Edmund   L. Quatmann, Jr.
    	
 
    
			

 

3Exhibit 10.49

 

FIFTH ADDENDUM TO LEASE AND AGREEMENT — SPRING 1995 (LOWER LOTS) AND
 FOURTH ADDENDUM TO LEASE AND AGREEMENT — SPRING 1995 (UPPER LOTS)

 

This Fifth Addendum to Lease and Agreement — Spring 1995 (Lower Lots) and Fourth Addendum to Lease and Agreement — Spring 1995 (Upper Lots) (this “Agreement”) is entered into this 11th day of December, 2013, by and between Andrianakos Limited Liability Company, a Colorado limited liability company (“Andrianakos LLC”) and the Isle of Capri Black Hawk, L.L.C., a Colorado limited liability company (the “Isle of Capri”) (Andrianakos LLC and Isle of Capri, collectively the “Parties”).

 

EXPLANATORY STATEMENT

 

A.  Andrianakos LLC and Anchor Coin d/b/a Colorado Central Station Casino entered into that certain Lease and Agreement — Spring 1995 (Lower Lots) dated August 15, 1995, as amended by Addendum to Lease and Agreement — Spring 1995 (Lower Lots) dated April 4, 1996, and by Second Addendum to Lease and Agreement — Spring 1995 (Lower Lots) effective as of March 21, 2003 (collectively the “Lower Lot Leases”).

 

B.  Andrianakos LLC and Anchor Coin d/b/a Colorado Central Station Casino entered into that certain Spring 1995 — Amended and Restated Vacant Ground Lease for Parking Lot Purposes and Agreement (Upper Lot) dated August 15, 1995 and Lease Addendum dated May 1, 2000 (collectively “Upper Lot Leases”).

 

C.  Anchor Coin d/b/a Colorado Central Station Casino assigned the Upper Lot Leases to CCSC/Blackhawk, Inc. effective January 1, 2002, and CCSC/Blackhawk, Inc. d/b/a Colorado Central Station Casino and Andrianakos LLC further amended the Upper Lot Leases for Parking Lot Purposes and Agreement (Upper Lot) dated effective April 22, 2003.

 

D.  Anchor Coin/b/a Colorado Central Station Casino assigned the Lease to CCSC/Blackhawk, Inc. effective January 1, 2002.

 

D.  CCSC/Blackhawk, Inc. assigned the Lower Lot Leases and the Upper Lot Leases and conveyed the real property described as “Isle Real Property” to Isle of Capri Black Hawk, L.L.C effective April 22, 2003.

 

E.  Andrianakos Limited Liability Company and Isle of Capri Black Hawk, L.L.C entered into that Third Addendum to Lease Agreement — Spring 1995 (Lower Lots) effective April 22, 2003 adding addition real property and otherwise amending and supplementing the Lower Lot Leases.

 

F.  Pursuant to Section A-3 of the Lower Lot Leases and Upper Lot Leases the term of such leases shall automatically renew unless the Isle of Capri gives its notice of non-renewal not less than six months prior to the end of any term.

 

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G.  Andrianakos Limited Liability Company and Isle of Capri Black Hawk, L.L.C. entered into that Fourth Addendum to Lease and Agreement Spring 1995 (Lower Lots) and Third Addendum to Lease and Agreement Spring 1995 (Upper Lots), dated November 26, 2013, thereby extending the notice period under Section A-3 of the Lower Lot Leases and Upper Lot Leases for an additional thirty (30) days up to and including 5:00 PM (MST) on Tuesday, December 31, 2013 in order to give the parties additional time to draft and finalize this Fifth Addendum to Lease and Agreement — Spring 1995 (Lower Lots) and this Fourth Addendum to Lease and Agreement — Spring 1995 (Upper Lots).

 

H.  Andrianakos Limited Liability Company and Isle of Capri Black Hawk, L.L.C. have mutually agreed to amend and modify the terms of the Lower Lot Leases and Upper Lot Leases as stated herein.

 

NOW THEREFORE, in consideration of the foregoing Explanatory Statement that is made a substantive part of this Agreement and for other good and valuable consideration the receipt and sufficiency of which is acknowledged, the Parties agree as follows:

 

1.              Incorporation of the Upper Lot Lease into the Lower Lot Leases. The Upper Lot Leases are hereby incorporated into and made part of the Lower Lot Leases resulting in one lease for the real property that currently is subject to the Lower Lot Leases and the Upper Lot Leases and the combined Lower Lot Leases and the Upper Lot Leases shall be referred to as the “Isle of Capri Blackhawk Lease.”

 

2.              Term of the Isle of Capri Blackhawk Lease. The Term of the Isle of Capri Blackhawk Lease shall commence as of the date of this Agreement through May 31, 2019 at 12:00 PM MDT.

 

3.              Rental Rate. The rental rate for the Isle of Capri Blackhawk Lease shall be Two Hundred Fourteen Thousand Four Hundred and Fifty One Dollars and Sixty Eight Cents ($214,451.68) per month from the date of this Agreement through the term ending May 31, 2019 at 12:00 PM MDT. The foregoing rental rate includes the rent for all real property that was previously subject to the Lower Lot Leases and the Upper Lot Leases.

 

4.              Renewals. Section A-3 of both the Lower Lot Leases and the Upper Lot Leases that is now the Isle of Capri Blackhawk Lease are deleted in their entirety and replaced with the following:

 

“A-3. Renewals. This Lease may be renewed at Lessee’s sole option for up to fifteen (15) terms of five (5) years each commencing June 1, 2019. Renewal shall be automatic for each term unless Lessee gives its notice of non-renewal not less than six (6) months prior to the end of any term.”

 

5.              Rental Rate Indexing. Section A-5 Rental Rate Indexing of the Lower Lots Leases that is now the Isle of Capri Blackhawk Lease shall be deleted in its entirety and replaced with the following that shall apply to the real property that that was previously subject to both the Lower Lot Leases and the Upper Lot Leases:

 

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“The rental rate for the current renewal (June 1, 2014 to May 31, 2019) shall remain the same and not change.  The rental rate thereafter shall be adjusted annually by the Consumer Price Index (CDI) figures for the Denver/Boulder Standard Metropolitan Statistical Area released by the U.S. Department of Commerce, or its successor, most recently preceding the June first of the subject year to determine any change in the cost of living.”

 

6.              Miscellaneous. As modified herein, all other terms and conditions of the Lower Lot Leases and Upper Lot Leases, incorporated into one lease as set forth in Section 2 above, shall remain in full force and effect and are hereby ratified and confirmed.  This Agreement may be executed in counterparts.

 

 

	
LESSEE
    	
 
    	
LESSOR
    
	
 
    	
 
    	
 
    
	
Isle of Capri Black Hawk, L.L.C.
    	
 
    	
Andrianakos Limited Liability Company
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Brian P. Watts
    	
 
    	
By:
    	
/s/ Ioannis E. Andrianakos
    
	
 
    	
Brian P. Watts, Vice President & GM
    	
 
    	
 
    	
Ioannis E. Andrianakos, Manager
    

 

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