Document:

Exhibit 4.3

 

EXECUTION VERSION

 

 

 

FIRST SUPPLEMENTAL INDENTURE

 

August 7, 2012

 

BY AND AMONG

 

U.S. BANK NATIONAL ASSOCIATION,
 TRUSTEE,

 

ISLE OF CAPRI CASINOS, INC.

 

AND

 

THE SUBSIDIARY GUARANTORS 
 LISTED ON THE SIGNATURE PAGES HEREOF

 

 

7% SENIOR SUBORDINATED NOTES DUE 2014

 

 

 

FIRST SUPPLEMENTAL INDENTURE (this “First Supplemental Indenture”), dated as of August 7, 2012, by and among Isle of Capri Casinos, Inc., a Delaware corporation (the “Company”), the guarantors listed on the signature pages hereto (the “Subsidiary Guarantors”) and U.S. Bank National Association, as trustee (the “Trustee”).

 

RECITALS OF THE COMPANY AND THE SUBSIDIARY GUARANTORS

 

A.            The Company and the Subsidiary Guarantors have heretofore executed and delivered to the Trustee an Indenture dated as of March 3, 2004 (the “Indenture”), by and among the Company, the Subsidiary Guarantors and the Trustee, pursuant to which the Company issued its 7% Senior Subordinated Notes due 2014 (the “Notes”).

 

B.            The Company has offered to purchase for cash any and all outstanding Notes pursuant to the Offer to Purchase and Consent Solicitation Statement dated July 24, 2012, as amended or supplemented from time to time (the “Tender Offer”).

 

C.            In connection with the Tender Offer, the Company has requested that Holders of the Notes deliver their consents with respect to the deletion of certain provisions of the Indenture.

 

D.            Section 9.02 of the Indenture provides that, subject to certain exceptions inapplicable hereto, the Company, the Subsidiary Guarantors and the Trustee may amend or supplement the Indenture and the Notes with the consent of the Holders of not less than a majority in aggregate principal amount of the then outstanding Notes (including, without limitation, consents obtained in connection with a tender offer for the Notes).

 

E.             The Holders of a majority in aggregate principal amount of the Notes outstanding have duly consented to the proposed modifications set forth in this First Supplemental Indenture in accordance with Section 9.02 of the Indenture.

 

F.             The Company has heretofore delivered or is delivering contemporaneously herewith to the Trustee (i) one or more Board Resolutions authorizing the execution of this First Supplemental Indenture, (ii) evidence of the written consent of the Holders set forth in the immediately preceding recital and (iii) the Officers’ Certificate and the Opinion of Counsel described in Sections 1.02 and 9.03 of the Indenture.

 

G.            All conditions necessary to authorize the execution and delivery of this First Supplemental Indenture and to make this First Supplemental Indenture valid and binding have been complied with or have been done or performed.

 

NOW, THEREFORE, THIS FIRST SUPPLEMENTAL INDENTURE WITNESSETH:

 

It is mutually covenanted and agreed, for the equal and proportionate benefit of all Holders of the Notes, as follows:

 

1

 

ARTICLE I

 

AMENDMENT OF INDENTURE

 

Section 1.1             Amendments.

 

Subject to Section 2.1, the Indenture is hereby amended by deleting in their entireties Sections 5.01(e), 5.01(f), 5.01(g), 5.01(h), 5.01(i), 5.14, 7.05(a), 8.01(a)(iii), 8.01(a)(v), 8.01(a)(vii), 8.01(a)(viii), 8.01(b)(iii), 10.04, 10.05, 10.06, 10.07, 10.09, 10.10, 10.11, 10.12, 10.13, 10.14, 10.15, 10.16, 10.17, 10.18, 10.19, 10.20 and 10.21 of the Indenture and replacing such sections with “[Intentionally Omitted.]”.  None of the Company, any Subsidiary Guarantor, the Trustee or other parties to or beneficiaries of the Indenture shall have any rights, obligations or liabilities under such sections, and such sections shall not be considered in determining whether an Event of Default has occurred or whether the Company or any Subsidiary Guarantor has observed, performed or complied with the provisions of the Indenture.

 

Section 1.2             Amendments to Definitions and Section References.

 

(a)           Subject to Section 2.1, the Indenture is hereby amended by deleting any definitions from the Indenture with respect to which references have been eliminated as a result of the amendments to the Indenture pursuant to Section 1.1.

 

(b)           Subject to Section 2.1, the Indenture is hereby amended by deleting therefrom any references to sections of the Indenture which have been deleted as a result of the amendments to the Indenture pursuant to Section 1.1 and replacing such references with “[Intentionally Omitted.]”.

 

ARTICLE II

 

MISCELLANEOUS PROVISIONS

 

Section 2.1             Effect of First Supplemental Indenture.

 

The provisions of this First Supplemental Indenture shall be effective only upon execution and delivery of this instrument by the parties hereto.  Notwithstanding the foregoing sentence, the provisions of this First Supplemental Indenture shall become operative only upon the purchase by the Company, pursuant to the Tender Offer, of at least a majority in aggregate principal amount of the outstanding Notes, with the result that the amendments to the Indenture effected by this First Supplemental Indenture shall be deemed to be revoked retroactive to the date hereof if such purchase shall not occur.  The Company shall notify the Trustee promptly after the occurrence of such purchase or promptly after the Company shall determine that such purchase will not occur.  Except as amended hereby, the Indenture is in all respects ratified and confirmed and all the terms shall remain in full force and effect.  This First Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of Notes heretofore or hereafter authenticated and delivered under the Indenture shall be bound hereby and all terms and conditions of both shall be read together as though they constitute a single instrument, except that in the case of conflict the provisions of this First Supplemental Indenture shall control.

 

2

 

Section 2.2             Capitalized Terms.

 

Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.

 

Section 2.3             Successors.

 

All covenants and agreements in this First Supplemental Indenture by the Company and the Subsidiary Guarantors shall bind their successors and assigns, whether so expressed or not.

 

Section 2.4             Separability Clause.

 

In case any provision in this First Supplemental Indenture shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

Section 2.5             Governing Law.

 

This First Supplemental Indenture shall be governed by and construed in accordance with the laws of the State of New York.  This First Supplemental Indenture is subject to the provisions of the Trust Indenture Act that are required to be part of this First Supplemental Indenture and shall, to the extent applicable, be governed by such provisions.

 

Section 2.6             Counterparts.

 

This First Supplemental Indenture may be signed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument.

 

[Signature Page Follows]

 

3

 

IN WITNESS WHEREOF, the parties hereto have caused this First Supplemental Indenture to be duly executed, and their respective corporate seals to be hereunto affixed and attested, all as of the day and year first above written.

 

 

	
 
    	
ISLE OF CAPRI CASINOS, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Edmund L. Quatmann, Jr.
    
	
 
    	
 
    	
Name:
    	
Edmund L. Quatmann, Jr.
    
	
 
    	
 
    	
Title:
    	
Chief Legal Officer and Secretary
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
U.S. BANK NATIONAL ASSOCIATION,
    
	
 
    	
as Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Kathy L. Mitchell
    
	
 
    	
 
    	
Name:
    	
Kathy L. Mitchell
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

 

	
 
    	
BLACK HAWK HOLDINGS, L.L.C.
    
	
 
    	
CCSC/BLACKHAWK, INC.
    
	
 
    	
IC HOLDINGS COLORADO, INC.
    
	
 
    	
IOC BLACK HAWK COUNTY, INC.
    
	
 
    	
IOC-BLACK HAWK DISTRIBUTION COMPANY, LLC
    
	
 
    	
IOC-BOONVILLE, INC.
    
	
 
    	
IOC CAPE GIRARDEAU, LLC
    
	
 
    	
IOC-CARUTHERSVILLE, L.L.C.
    
	
 
    	
IOC-DAVENPORT, INC.
    
	
 
    	
IOC HOLDINGS, L.L.C.
    
	
 
    	
IOC-KANSAS CITY, INC.
    
	
 
    	
IOC-LULA, INC.
    
	
 
    	
IOC-NATCHEZ, INC.
    
	
 
    	
IOC SERVICES, L.L.C.
    
	
 
    	
IOC-VICKSBURG, INC.
    
	
 
    	
IOC-VICKSBURG, L.L.C.
    
	
 
    	
ISLE OF CAPRI BETTENDORF, L.C.
    
	
 
    	
ISLE OF CAPRI BETTENDORF MARINA CORPORATION
    
	
 
    	
ISLE OF CAPRI BLACK HAWK CAPITAL CORP.
    
	
 
    	
ISLE OF CAPRI BLACK HAWK, L.L.C.
    
	
 
    	
ISLE OF CAPRI MARQUETTE, INC.
    
	
 
    	
PPI, INC.
    
	
 
    	
RAINBOW CASINO-VICKSBURG PARTNERSHIP, L.P.
    
	
 
    	
RIVERBOAT CORPORATION OF MISSISSIPPI
    
	
 
    	
RIVERBOAT SERVICES, INC.
    
	
 
    	
ST. CHARLES GAMING COMPANY, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Edmund L. Quatmann, Jr.
    
	
 
    	
Name:
    	
Edmund L. Quatmann, Jr.
    
	
 
    	
Title:
    	
Chief Legal Officer and SecretaryExhibit 10.1

 

	
Jim   Jerome
    	
 
    
	
 
    	
 
    
	
 
    	
 
    

 

December 18, 2008

 

Re: Amendment to Performance Options

 

Dear Jim:

 

I am pleased to inform you that the Compensation Committee of NetSpend Holdings, Inc. (the “Company”) has favorably amended your performance stock options (with respect to 50,000 shares of common stock granted to you on May 8, 2008 (the “Option”) under the Amended and Restated NetSpend Holdings, Inc. 2004 Stock Option Plan (the “Plan”)).  Prior to this amendment, the Option could not vest unless a performance target was achieved in connection with a Change in Control or an IPO and you remained employed for a specified period of time.  This amendment generally provides that the Option will vest if you remain employed with the Company for six years (measured from the Vesting Measurement Date, as defined in your Option) unless a Change in Control occurs during this six-year period and the performance target is  not achieved in connection with the Change in Control.

 

To effect this amendment, the “Vesting and Exercise Schedule” set forth in your Notice of Grant (“Option Notice”) and Section 8(b) of your Stock Option Agreement has been amended as set forth below.  If there is any confusion as to which of your stock options has been amended pursuant to the terms of this letter, the first sentence of the “Vesting and Exercise Schedule” has not changed.  Also, if there is any conflict between the preceding paragraph and the amended provisions below, the amended provisions will govern.

 

Amended Vesting and Exercise Schedule in Option Notice (This replaces the Vesting and Exercise Schedule in your Option Notice)

 

Vesting and Exercise Schedule

 

(a)  This Option shall become vested subject to two conditions, a performance-based vesting condition and, to the extent the performance-based vesting condition is met, a time-based vesting condition, each as described herein.  Subject to the time vesting condition set forth in the next sentence, 100% of the Option shall become eligible for vesting on the date the Company achieves the Target (as defined below).  For purposes of this Notice of Grant, the Company shall have achieved the “Target” on the date that the Company’s Equity Value equals or exceeds for the first time the Equity Value Hurdle (each as defined below).  If you have remained continuously employed through the date the Company

 

 

achieves the Target, the Option shall vest in four equal annual installments, beginning on the first anniversary of the Vesting Measurement Date, subject to your continued service employment through the applicable vesting date.

 

(b)  Notwithstanding the foregoing, in the event that prior to or in connection with a Change in Control (excluding any Change in Control that also constitutes an Initial Public Offering), the Company has achieved or achieves, as applicable, the Target, if the Option is not being assumed by, or substituted for new options covering the stock of, the surviving, successor or purchasing corporation, or a parent or subsidiary thereof, 100% of the portion of the Option that has not met the time-based condition shall terminate and shall no longer be exercisable upon the consummation of such Change in Control.  For purposes of clarification and notwithstanding any provision of this Notice of Grant or the Stock Option Agreement to the contrary, if the Company has not achieved the Target on or prior to a Change in Control, the Option shall terminate and shall no longer be exercisable as of the consummation of such Change in Control.

 

(c)  100% of the Option, to the extent not previously vested or terminated, shall vest on the sixth anniversary of the Vesting Measurement Date so long as you have remained continuously employed with the Company or an Affiliate through such date.  For purposes of clarification and notwithstanding any provision of this Notice of Grant or the Stock Option Agreement to the contrary, if the Company has not achieved the Target on or prior to a Change in Control, the Option shall terminate as of the consummation of such Change in Control and shall no longer be exercisable.

 

(d)  Determination of whether the Equity Value Hurdle (as defined below) has been achieved shall be made only (i) in connection with a Change in Control of the Company and/or (ii) upon or at any time, and from time to time, following an Initial Public Offering (as defined below), all as provided below.  The initial “Equity Value Hurdle” (measured as of January 1, 2008) is $1.0 billion and shall be increased from time to time as follows (without duplication):

 

(i)                                     in the event that the Company raises additional capital from the sale of equity by the Company, the proceeds of which are used to fund acquisitions by the Company or any subsidiary thereof, based on the following formula:

 

a.               I = (EVH/(1-N/FD))-EVH, where

 

	
i.
    	
 
    	
I   is the amount of the increase in each Equity Value Hurdle,
    
	
 
    	
 
    	
 
    
	
ii.
    	
 
    	
EVH   is the Equity Value Hurdle in effect immediately prior to such issuance,
    
	
 
    	
 
    	
 
    
	
iii.
    	
 
    	
N   is the number of common stock equivalents of the Company issued in connection   with such sale of equity, and
    
	
 
    	
 
    	
 
    
	
iv.
    	
 
    	
FD   is the fully diluted number of common stock equivalents of the Company   outstanding after giving effect to such issuance.
    

 

(ii)                                  in the event that the Company issues securities of the Company in connection with any acquisition by the Company or any subsidiary thereof (whether by way of merger, acquisition or similar transaction), joint venture, corporate partnering arrangement or similar arrangement, based on the following formula:

 

a.                                       I = (EVH/(1-N/FD))-EVH, where

 

 

	
i.
    	
 
    	
I   is the amount of the increase in each Equity Value Hurdle,
    
	
 
    	
 
    	
 
    
	
ii.
    	
 
    	
EVH   is the Equity Value Hurdle in effect immediately prior to such issuance,
    
	
 
    	
 
    	
 
    
	
iii.
    	
 
    	
N   is the number of common stock equivalents of the Company issued in connection   with such acquisition, joint venture, corporate partnering arrangement or   similar arrangement, and
    
	
 
    	
 
    	
 
    
	
iv.
    	
 
    	
FD   is the fully diluted number of common stock equivalents of the Company   outstanding after giving effect to such issuance.
    

 

(iii)                               by the aggregate value of other consideration (including assumed indebtedness) paid by the Company or any subsidiary thereof (as determined in good faith by the Board) in connection with any such acquisition, transaction or arrangement by the Company or any subsidiary thereof.

 

The Company shall promptly determine the amount of any such increase in the Equity Value Hurdle and shall provide written notice to you of any such increase in the Equity Value Hurdle.

 

(e)  The following is an example (and assumes that no Change in Control occurs):  If the Company achieves the Target 13 months following the Vesting Measurement Date in connection with an Initial Public Offering, 25% of the Option will vest on the date the Company achieves the Target and the remainder of the Option will vest in three equal annual installments on the next three anniversaries of the Vesting Measurement Date, subject to your continued employment with the Company or an Affiliate through the applicable vesting date.  If the Company achieves the Target five years following the Vesting Measurement Date, 100% of the Option will vest on the date the Company achieves the Target so long as you have remained employed with the Company or an Affiliate through the date the Company achieves the Target.

 

(f)  Prior to an Initial Public Offering, the Option will only be eligible to vest upon a Change in Control (based on the Equity Value as of the Change in Control) or upon the sixth anniversary of the Vesting Measurement Date, as applicable.

 

(g)  For purposes of this Notice of Grant, the Stock Option Agreement and the Plan:

 

(i)  “Initial Public Offering” or “IPO” means the first firm commitment underwritten public offering for shares of Common Stock pursuant to an effective registration statement under the Securities Act with aggregate gross proceeds of at least $40,000,000.

 

(ii)  “Equity Value” means, with respect to a determination made in connection with a Change in Control, the aggregate value of the fully-diluted equity of the Company, as determined in good faith by the Board based on the proceeds received in connection with a Change in Control.  With respect to a determination made upon or at any time, and from time to time, following the date of an IPO and not made in connection with a Change in Control, a particular Equity Value Hurdle shall be deemed to be achieved only upon the aggregate market capitalization of the Common Stock being equal to or greater than the applicable Equity Value Hurdle for thirty consecutive trading days.  For purposes

 

 

of the foregoing, the market capitalization of the Common Stock shall be determined by multiplying the average of the closing sale prices (without regard to after-hours trading) of the Common Stock on the applicable securities exchange for the applicable 30 consecutive trading days by the weighted average number of shares of the Common Stock outstanding during such 30-day trading period.

 

Amended Section 8(b) of Stock Option Agreement

 

The last two sentences of Section 8(b) of the Stock Option Agreement underlying the Option are hereby amended and restated to read as follows:

 

Notwithstanding the foregoing or any provision of the Plan or this Agreement to the contrary, in the event of a Change in Control, if (i) prior to or in connection therewith the Company achieves or has achieved the Target (as defined in the Notice of Grant) and (ii) the Option is not being assumed by, or substituted for new options (“New Options”) covering the stock of, the surviving, successor or purchasing corporation, or a parent or subsidiary thereof, 100% of the Option shall vest upon the consummation of such Change in Control.  Notwithstanding the foregoing or any provision of the Plan or this Agreement to the contrary, in the event of a Change in Control, if (i) prior to or in connection therewith the Company achieves or has achieved the Target (as defined in the Notice of Grant) and (ii) the Option is not being assumed by, or substituted for new options covering the stock of, the surviving, successor or purchasing corporation, or a parent or subsidiary thereof, 100% of the portion of the Option that has not met the time-based vesting condition shall terminate and shall no longer be exercisable as of the consummation of such Change in Control.

 

*              *              *

 

Except as modified above, your Option shall remain in full force and effect.

 

	
 
    	
Sincerely   yours,
    
	
 
    	
 
    
	
 
    	
/s/   Dan Henry
    
	
 
    	
 
    
	
 
    	
Dan   Henry

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