EXHIBIT 10.5
PROMISSORY NOTE
$7,500,000.00 March 1, 1999
For value received, the undersigned promises to pay to the order of Tunica
Partners, LP, the principal sum of Seven Million Five Hundred Thousand and
No/100 Dollars ($7,500,000), together with interest thereon at the rate of
eleven percent (11%) per annum. Payments shall be made at Payee's principal
office, or at such other place designated in advance by Payee, in twenty-three
(23) consecutive monthly payments of One Hundred Twenty-Eight Thousand, Four
Hundred Eighteen Dollars and Twenty-Seven Cents ($128,418.27) each, the first of
which shall be due April 1, 1999, with subsequent payments to be due on the same
day of the following twenty-two (22) months, and a final twenty-fourth (24th)
payment which shall be due on March 1, 2001, in the amount of Six Million,
Thirty-Four Thousand, Seven Hundred Sixty-Four Dollars and Thirty-Four Cents
($6,034,764.34).
This note is given for the Deferred Purchase Price as defined in the Asset
Purchase Agreement of October 7, 1998, as amended, by and between Maker and
Payee.
Maker waives presentment for payment, demand, protest, and notice of
dishonor and nonpayment of this note. This note may be prepaid in whole or in
part without penalty. In the event (i) Maker defaults in the payment of any
amount due under this note and such default continues for a period of ten (10)
business days after Maker receives notice of default from Payee, or (ii) Maker
or Isle of Capri Casinos, Inc. ("Isle of Capri"), fails to remain qualified
under Mississippi gaming laws and regulations to own and operate a casino gaming
facility, or (iii) any gaming commission of any jurisdiction requires Payee to
disassociate itself from Maker or Isle of Capri, then Payee shall
have the right, by written notice to Maker, to accelerate this note, in which
event all outstanding principal and interest shall become immediately due and
payable. In the event Maker, Isle of Capri or any other subsidiary of Isle of
Capri recapitalizes or refinances any existing debt, or in the event Maker, Isle
of Capri, or any other subsidiary of Isle of Capri incurs any additional debt
(other than debt to finance the acquisition of furniture, fixtures, and
equipment), then Maker shall make a prepayment of amounts due under this note in
the amount of the first net proceeds of any such recapitalization, refinancing,
or borrowing. Should this note be placed in the hands of an attorney for
collection or the services of an attorney become necessary in connection with
enforcing its provisions, the undersigned agrees to pay reasonable attorneys'
fees, together with all costs and expenses incident thereto.
ISLE OF CAPRI CASINO-TUNICA, INC.
By: /s/ Jack Galaway
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02/04/1999 Page 1
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TUNICA I FACILITY: ISLE OF CAPRI CASINO-TUNICA, INC.
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Compound Period........... Monthly
Nominal Annual Rate....... 11.000 %
Effective Annual Rate..... 11.572 %
Periodic Rate............. 0.9167 %
Daily Rate................ 0.03014%
CASH FLOW DATA
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Event Start Date Amount Number Period End Date
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1 Loan 03/07/1999 7,500,000.00 1
2 Payment 04/07/1999 128,418.27 23 Monthly 02/07/2001
3 Payment 03/07/2001 6,034,764.34 1
AMORTIZATION SCHEDULE - Normal Amortization
Date Payment Interest Principal Balance
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Loan 03/07/1999 7,500,000.00
1 04/07/1999 128,418.27 68,750.00 59,668.27 7,440,331.73
2 05/07/1999 128,418.27 68,203.04 60,215.23 7,380,116.50
3 06/07/1999 128,418.27 67,651.07 60,767.20 7,319,349.30
4 07/07/1999 128,418.27 67,094.04 61,324.23 7,258,025.07
5 08/07/1999 128,418.27 65,531.90 61,886.37 7,196,138.70
6 09/07/1999 128,418.27 65,964.60 62,453.67 7,133,685.03
7 10/07/1999 128,418.27 65,392.11 63,026.16 7,070,658,87
8 11/07/1999 128,418.27 64,814.37 63,603.90 7,007,054.97
9 12/07/1999 128,418.27 64,231.34 64,186.93 6,942,868.04
1999 Totals 1,155,764.43 598,632.47 557,131.96
10 01/07/2000 128,418.27 63,642.96 64,775.31 6,878,092.73
11 02/07/2000 128,418.27 63,049.18 65,369.09 6,812,723.64
12 03/07/2000 128,418.27 62,449.97 65,968.30 6,746,755.34
13 04/07/2000 128,418.27 61,845.26 66,573.01 6,680,182.33
14 05/07/2000 128,418.27 61,235.00 67,183.27 6,612,999.06
15 06/07/2000 128,418.27 60,619.16 67,799.11 6,545,199.95
16 07/07/2000 128,418.27 59,997.67 68,420.60 6,476,779.35
17 08/07/2000 128,418.27 59,370.48 69,047.79 6,407,731.56
18 09/07/2000 128,418.27 58,737.54 69,680.73 6,338,050.83
19 10/07/2000 128,418.27 58,098.80 70,319.47 6,267,731.36
20 11/07/2000 128,418.27 57,454.20 70,964.07 6,196,767.29
21 12/07/2000 128,418.27 56,803.70 71,614.57 6,125,152.72
2000 Totals 1,541,019.24 723,303.92 817,715.32
22 01/07/2001 128,418.27 56,147.23 72,271.04 6,052,881.68
23 02/07/2001 128,418.27 55,484.75 72,933.52 5,979,948.16
24 03/07/2001 6,034,764.34 54,816.18 5,979,948.16 0.00
2001 Totals 6,291,600.88 166,448.16 6,125,152.72
02/04/1999 Page 2
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TUNICA I FACILITY: ISLE OF CAPRI CASINO-TUNICA, INC.
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Date Payment Interest Principal Balance
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Grand Totals 8,988,384.55 1,488,384.55 7,500,000.00