Exhibit 10.14
FIRST AMENDMENT
TO
SUBLEASE AGREEMENT
THIS FIRST AMENDMENT TO SUBLEASE AGREEMENT (the "First Amendment") is made
and entered into effective as of the 15th day of July, 1999, by and between
DUBUQUE RACING ASSOCIATION, LTD., an Iowa non-profit corporation (the "Lessor")
and GREATER DUBUQUE RIVERBOAT ENTERTAINMENT COMPANY, L.C., an Iowa limited
liability company (the "Lessee").
WHEREAS, pursuant to that certain Sublease Agreement, dated October 18,
1993 (the "Sublease Agreement"), the Lessor subleased to Lessee certain parking
and dock facilities located in the Ice Harbor area in Dubuque, Iowa; and
WHEREAS, the Lessor and Lessee desire to amend certain provisions of the
Sublease Agreement.
NOW, THEREFORE, the Lessor and Lessee mutually agree as follows:
1. Paragraph 1 of the Sublease Agreement is hereby amended by deleting
Paragraph 1 in its entirety and substituting in lieu thereof the following:
"1. Term. The term of this Sublease shall commence on the 18th day
of October, 1993 and shall terminate at 11:59 p.m. on December 31, 2008.
Notwithstanding the foregoing, a default by Lessor or Lessee under
that certain Operating Agreement between the parties dated February 22,
1993, as amended (the "Operating Agreement"), shall be deemed a default
under this Sublease. The defaulting party shall have thirty (30) days
after receipt of written notice from the nondefaulting party to cure the
default. In the event such default under the Operating Agreement has not
been cured within the thirty (30) day cure period, Lessor or Lessee, as
applicable, shall have all rights available to such party pursuant to
paragraph 10 of this Sublease as if such default was a default under this
Sublease. This Sublease shall automatically terminate immediately upon the
termination of the Operating Agreement. In addition, it is agreed that
either party may elect to terminate this Sublease upon thirty (30) days'
advance written notice to the other party in the event either Lessor's or
Lessee's license to conduct riverboat gambling under the provisions of
Chapter 99F of the Iowa Code is suspended, revoked, surrendered, or
expires without renewal."
2. Subparagraph 4(e) of the Sublease Agreement is hereby amended by
deleting subparagraph 4(e) in its entirety and substituting in lieu thereof the
following:
"The Lessee agrees that, at all times during the Sublease term, the
Lessee shall, at its own expense, maintain, preserve and keep the leased
premises in good repair and in good working order and condition,
including, but not limited to, snow removal, mowing, landscaping, sweeping
of parking areas, lighting, cleaning, removal of litter, and repair and
replacement of surfaces. Notwithstanding the foregoing, upon receipt by
Lessee of a legal opinion from the legal counsel of Lessor that the
current maintenance responsibilities of Lessee with respect to the leased
premises may jeopardize Lessor's federal tax exempt status, Lessee's
responsibility for the maintenance, preservation and upkeep of the leased
premises shall immediately terminate and all such responsibilities shall
be with the Lessor. In the event of a shift of responsibility of the
maintenance of the leased premises, Lessor shall charge Lessee and Lessee
shall pay to Lessor an annual maintenance fee to be determined by Lessor,
provide, however, such maintenance fee shall not exceed $30,000 per year."
3. Paragraph 5 of the Sublease Agreement is hereby amended by adding the
following to the end of the first sentence:
"provided, however, Lessee shall have the absolute right to assign
and transfer this Sublease, and all of its rights and obligations
thereunder, to a third party that has been licensed by the Iowa Racing and
Gaming Commission to operate an excursion gambling boat at Dubuque, Iowa,
if said third party agrees to operate and comply with the terms and
conditions of this Sublease and the terms and conditions of the Operating
Agreement between Lessor and Lessee."
4. This First Amendment is subject to and conditioned upon the following:
(a) The extension of that certain Lease Agreement dated February 28,
1990 between the City of Dubuque as Lessor and Dubuque Racing
Association, Ltd. as Lessee through December 31, 2008; and
(b) The extension of that certain Ice Harbor Parking Agreement dated
July 2, 1990, by and among the City of Dubuque, Dubuque Racing
Association, Ltd., Dubuque Casino Belle, Inc. and Robert River
Rides, Inc. through December 31, 2008, and pursuant to Paragraph 19
of the Parking Agreement, Greater Dubuque Riverboat Entertainment
Company, L.C., or its assignee, shall be accorded the benefits of
such Parking Agreement originally give to Dubuque Casino Belle, Inc.
under the Parking Agreement; and
(c) The effective execution by all parties of the Tenth Amendment to the
Operating Agreement between Dubuque Racing Association, Ltd. and
Greater Dubuque Riverboat Entertainment Company, L.C.; and
(d) The effective execution by all parties of the Seventh Amendment to
that certain Lease Agreement dated February 28, 1990, between the
City of Dubuque, as Lessor, and Dubuque Racing Association, Ltd., as
Lessee, providing Dubuque Racing Association, Ltd., with lease
rights in river and harbor frontage adjoining Lot A and Lot B and
making certain other changes in said Lease.
5. Except as expressly modified herein, the terms of the Sublease
Agreement shall remain in full force and effect.
6. This First Amendment and the Sublease Agreement shall be binding on and
benefit the parties and their successors and assigns.
IN WITNESS WHEREOF, the parties hereto have executed this First Amendment
effect as of the date and year first above written.
LESSOR: LESSEE:
Dubuque Racing Association, Ltd. Greater Dubuque Riverboat
Entertainment Company, L.C.
By: /s/ Bruce W. Wentworth By: /s/ Don Iverson
---------------------------- ----------------------------
Bruce W. Wentworth Don Iverson
General Manager Chairman, Management Committee
CONSENT
The City of Dubuque, Iowa, a municipal corporation, does hereby consent to
the terms and provisions of the foregoing First Amendment to Sublease Agreement
between Dubuque Racing Association, Ltd., as Lessor, and Greater Dubuque
Riverboat Entertainment Company, L.C., as Lessee.
Dated this _______ day of July, 1999.
CITY OF DUBUQUE, IOWA
By: ______________________________
Mayor
Attest:
__________________________
Clerk