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EXHIBIT 10.43
STOCK PURCHASE AGREEMENT
THIS STOCK PURCHASE AGREEMENT ("Agreement") is dated and effective as
of the 1st day of July, 1999, between HORSESHOE GAMING, L.L.C. ("Horseshoe"),
and XXXX XXXX ("Xxxx").
RECITALS:
A. Horseshoe is a casino owner/operator with its principal office in
Las Vegas, Nevada.
X. Xxxx is the current owner of a .139922% interest in Horseshoe and an
employee of Horseshoe by virtue of an Amended and Restated Employment Contract
dated February 1, 1999 by and between Horseshoe and Xxxx ("Employment
Contract").
C. Pursuant to his Employment Contract, Xxxx has certain put rights
with respect to his ownership ("Put Rights"). Xxxx has provided notice of his
intent to exercise his Put Rights and Horseshoe believes it is in its best
interest to acquire from Xxxx his .139922% ownership interest.
D. Horseshoe and Xxxx have agreed that the fair market value of the
.139922% interest in Horseshoe is $657,633 and that the value of his capital
account at June 30, 1999 was $82,664.
E. Pursuant to his Employment Contract with Horseshoe, Xxxx has
borrowed certain sums from Horseshoe and as of June 30, 1999, Xxxx is indebted
to Horseshoe in the principal amount of $52,000 plus interest of $10,320, for a
total due, as of June 30, 1999, of $62,320 (the "Xxxx Debt").
F. Horseshoe is party to an agreement pursuant to which it may acquire
(the "Acquisition") Empress Casino Xxxxxxx Corporation, an Indiana corporation
("Empress Hammond"), and Empress Casino Joliet Corporation, an Illinois
corporation ("Empress Joliet"), both of which are subsidiaries of Empress
Entertainment, Inc., a Delaware corporation (collectively, "Empress").
NOW, THEREFORE, in consideration of the premises and each act performed
by either party hereto, the parties agree as follows:
1. Xxxx hereby exercises his Put Right. Horseshoe hereby waives any
requirements of written notice and further waives the condition that the Put
Right can be exercised only in the event of termination of Xxxx'x employment.
2. Concurrently with the execution of this Agreement, Xxxx has sold to
Horseshoe, and Horseshoe has purchased from Xxxx, Xxxx'x .139922% interest in
Horseshoe at the price of $657,633, plus a return of capital of $82,664, for a
total purchase price of $740,297 ("Purchase Price"). In full and complete
satisfaction of the Xxxx Debt, the Purchase Price shall be reduced by the amount
of the Xxxx Debt. Xxxx hereby acknowledges the receipt of the Purchase Price
less the Xxxx Debt.
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3. Xxxx hereby unconditionally releases and discharges the Horseshoe
from any and all claims, known or unknown, directly or indirectly related to or
in any way connected with (i) Xxxx'x exercise of the Put Right, (ii) Xxxx'x
ownership of Horseshoe, and (iii) this Agreement and all of the agreements,
documents and instruments to be executed and delivered in connection with this
Agreement. Xxxx acknowledges and agrees that following the consummation of the
transaction contemplated by this Agreement, he shall have no equity ownership in
the Horseshoe nor will he have rights of any kind to acquire an ownership
interest in Horseshoe or any of its affiliates or subsidiaries; provided
however, that Xxxx shall have the rights, if any, afforded to him under
Horseshoe's option plan to be first effective on or after January 1, 1999.
4. If the Acquisition is closed (the date of such closing being
referred to as the "Acquisition Closing Date"), Horseshoe shall pay Xxxx in
addition to the Purchase Price an amount equal to $41,976.60 (the "Additional
Amount"). The parties hereto agree that the Acquisition shall be deemed to have
closed in any of the following circumstances: (i) the Acquisition is consummated
in accordance with its terms or as may be amended by the parties to the
Acquisition agreement, or their successors, assignees or transferees; (ii)
Horseshoe renegotiates the agreement relating to the Acquisition so as to allow
the merger to be consummated as to either Empress Xxxxxxx or Empress Joliet and
the merger is then consummated with either Empress Xxxxxxx or Empress Joliet;
(iii) Horseshoe combines with another party such that the Acquisition is
consummated with Horseshoe obtaining Empress Xxxxxxx or Empress Joliet and the
other party obtaining the other; (iv) Horseshoe consummates the Acquisition in
accordance with its terms or as may be amended by the parties to that agreement,
but either Empress Xxxxxxx or Empress Joliet is spun off such that the Horseshoe
is combined with only one; or (v) Horseshoe sells or transfers its interest in
the Acquisition agreement to an unrelated third party. The Additional Amount
shall be paid, together with the final payment, within forty-five (45) days of
Acquisition Closing Date.
5. Xxxx represents and warrants that he is the lawful record and
beneficial owner of the .139922% interest in Horseshoe, free and clear of any
liens, claims, encumbrances, marital property rights, security agreements,
equities, options, charges or restrictions of any kind.
6. This Agreement contains the entire agreement of the parties with
respect to the subject matter hereof and may be amended only by a writing signed
by each party hereto.
7. This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective heirs, legatees, personal representatives,
successors and assigns.
8. This Agreement shall be governed and interpreted in accordance with
the laws of the State of Nevada.
9. This Agreement may be executed in counterparts, each of which shall
be deemed an original and both of which together shall be deemed one Agreement.
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IN WITNESS WHEREOF, the parties have executed this Agreement as of this
_____ day of July, 1999.
"XXXX"
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Xxxx Xxxx
"COMPANY"
HORSESHOE GAMING, L.L.C.
By: Horseshoe Gaming Holding Corp.,
its Manager
By:
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Xxxx Xxxxxx, Chief Financial Officer
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