Document:

Exhibit 10.1

 

FIRST AMENDMENT TO CREDIT AGREEMENT

 

This
Amendment is entered into as of March 31, 2009 by and among Arctic Cat
Inc., a Minnesota corporation (the “Borrower”), Arctic Cat Sales Inc.,
a Minnesota corporation, Arctic Cat Production LLC, a Minnesota limited
liability company, Arctic Cat Production Support LLC, a Minnesota limited
liability company, and Arctic Cat Shared Services LLC, a Minnesota limited
liability company (the “Guarantors”), and Wells Fargo Bank, National Association, a national banking
association, as the Administrative Agent, Issuing Lender and sole Lender under
the Credit Agreement described below (in such capacities, the “Bank”).

 

The
Borrower and the Bank have entered into a Credit Agreement dated August 29,
2008, setting forth the terms on which the Bank would make advances to and
issue letters of credit for the account of the Borrower (together with all
amendments, modifications and restatements thereof, the “Credit Agreement”).

 

Pursuant
to their Guaranty dated August 29, 2008 (together with all amendments, modifications
and restatements thereof, the “Guaranty”), the Guarantors have
guarantied the payment and performance of all obligations of the Borrower
arising under the Credit Agreement and related documents.

 

Pursuant
to a Security Agreement dated August 29, 2008 (together with all
amendments, modifications and restatements thereof, the “Security Agreement”), the Borrower and the Guarantors
have granted the Bank a security interest in substantially all of their
personal property.

 

The
Borrower has asked the Bank to extend the revolving line of credit provided
under the Credit Agreement, and the Bank is willing to do so on the terms and
subject to the conditions set forth herein.

 

ACCORDINGLY,
in consideration of the mutual covenants contained in this Amendment and in the
other documents described herein, the parties hereby agree as follows:

 

1.                                      Definitions.

 

As used in this Amendment, capitalized
terms defined in the Credit Agreement and not otherwise defined herein shall have
the meanings given them in the Credit Agreement.

 

2.                                      Amendments

 

(a)                                  The following definitions in Section 1.1
of the Credit Agreement are hereby amended in their entirety to read, respectively,
as follows:

 

“Aggregate Revolving Commitment Amount” means $30,000,000, being an amount equal to
the sum of the Revolving Commitments, as such amount may be reduced from time
to time pursuant to Section 2.8 or amendment in accordance with this
Agreement.

 

“Facility Termination Date” means May 31, 2009, or the earlier date
of the termination of the Revolving Facility pursuant to Section 2.8 or
7.2.

 

“Floating Rate” means, at any time, an annual rate equal to
the sum of (i) 225 basis points (2.25% per annum), and (ii) the
greater of:

 

(A)          the Base Rate; or

 

(B)           the Federal Funds Rate, plus 50 basis points
(0.50% per annum).

 

The
Floating Rate shall change when and as the Base Rate or Federal Funds Rate
changes.

 

 

“LIBO Rate Margin” means 500 basis points (5.00% per annum).

 

(b)                                 Paragraph (a) of the definition of “Eligible
Receivables Value” in Section 1.1 of the Credit Agreement is hereby
amended in its entirety to read as follows:

 

(a)                                  (i)                                     That portion of Dealer Floorplan Finance
Receivables unpaid more than 5 calendar days after the applicable invoice date;

 

(ii)                                  that portion of other accounts receivable
unpaid more than 90 days after the applicable invoice date.

 

(c)                                  The following paragraph (h) is inserted
at the end of the definition of “Eligible Receivables Value” in Section 1.1
of the Credit Agreement:

 

(h)           Accounts
receivable owed by an account debtor whose chief executive office or principal
place of business is located outside the United States and Canada.

 

(d)                                 The phrase, “the Security Agreement”, is
deleted in the definition of “Material Adverse Effect” in Section 1.1 of
the Credit Agreement, and the phrase, “any Security Document”, is substituted
therefor.

 

(e)                                  The following definitions are hereby added to
Section 1.1 of the Credit Agreement in its appropriate alphabetical order:

 

“Borrowing Base” means, at any time, the lesser of:

 

(a)           the Aggregate
Revolving Commitment Amount, and

 

(b)           the sum of

 

(i)            60% of Eligible
Receivables Value,

 

(ii)           the lesser of (A) $20,000,000,
or (B) 50% of Eligible Finished Goods Value,

 

(iii)          20% of Eligible
Parts Value, and

 

(iv)          10% of Eligible Raw
Materials Value.

 

“Borrowing Base Certificate” means a certificate in substantially the form
attached hereto as Exhibit E, duly completed and certified by the Borrower,
pursuant to which the Borrower sets forth the Borrowing Base as of a particular
date.

 

“Dealer Floorplan Finance
Receivables” means amounts
owing to any Obligor under any Dealer Finance Agreement.

 

“First Amendment Date” means March 31, 2009.

 

“Security Documents” means the Security Agreement and each other
security agreement, mortgage, deed of trust, assignment or other instrument or
agreement now or hereafter directly or indirectly securing any Obligations of
the Borrower or any guaranty of any Obligations.

 

(f)                                    The definitions of “Adjusted Asset Value” and
“Asset Coverage Ratio” are hereby deleted.

 

(g)                                 The first two sentences of Section 2.1
of the Credit Agreement are hereby deleted, and the following is substituted
therefor:

 

2

 

Each
Lender agrees, severally but not jointly, on the terms and subject to the
conditions hereinafter set forth, to make Advances to the Borrower and to
participate in commercial and standby Letters of Credit for the account of the
Borrower from the date hereof through the Facility Termination Date; provided, however,
that (A) the Revolving Facility Outstandings shall at no time exceed the
Borrowing Base and (B) no Lender’s Percentage of the Revolving Facility
Outstandings shall at any time exceed that Lender’s Revolving Commitment. The
credit facility established under this Section 2.1 is revolving; within
the limits set forth herein, the Borrower may request Advances and Letters of
Credit through the Facility Termination Date, repay such Advances or terminate
such Letters of Credit, and reborrow or receive additional Letters of Credit, so
long as no Advance or Letter of Credit causes the limits set forth below to be
exceeded.

 

(h)                                 The second sentence of Section 2.3(e) of
the Credit Agreement is hereby deleted, and the following is substituted
therefor:

 

Unless
otherwise agreed by the Required Lenders in writing, the Borrower shall deposit
in the L/C Cash Collateral Account, not less than 5 Business Days before the
Facility Termination Date, an amount equal to 105% of the L/C Amount, less the
balance (if any) then outstanding in the L/C Cash Collateral Account.

 

(i)            The following is hereby inserted at the end of Section 2.4(b)
of the Credit Agreement:

 

Notwithstanding
any other provision of this Agreement, from and after the First Amendment Date,
the Borrower may not elect any Interest Period longer than one month to be
applicable to any LIBO Rate Funding.

 

(j)                                     The following new Section 2.15 is hereby
inserted at the end of Article II of the Credit Agreement:

 

Section 2.15 Borrowing Base Deficiencies.

 

If
the Revolving Facility Outstandings shall on any date exceed the Borrowing Base,
the Borrower, not later than the next Business Day following such date, shall
remit to the Administrative Agent an amount equal to such excess, without
notice or demand by the Administrative Agent or any Lender. Such remittance
shall be applied to the Obligations (whether or not due) in such order of
application as the Administrative Agent may in its sole discretion choose. To
the extent that the amount of such remittance exceeds the outstanding
non-contingent Obligations, such excess portion of the remittance shall be
deposited in the L/C Cash Collateral Account.

 

(k)           The following is hereby inserted at the end of Section 3.2
of the Credit Agreement:

 

Any
request for a Borrowing or a Letter of Credit, whether written, telephonic, telecopy
or otherwise, shall be deemed to be a representation by the Borrower that (i) the
amount of the requested Borrowing or Letter of Credit, when added to the
Revolving Facility Outstandings would not cause the sum of the Revolving
Facility Outstandings to exceed the Borrowing Base, and (b) the statements
set forth in this Section 3.2 are correct as of the time of the request.

 

(l)            Section 5.1(c)(i) of the Credit Agreement is
hereby amended in its entirety to read as follows:

 

(i)                                     Consolidated balance sheets of the Borrower
and its Subsidiaries as at the end of such month and related consolidated
statements of earnings of the Borrower and its Subsidiaries for such month and
for the year to date, in reasonable detail and stating in comparative form the
figures for the corresponding date and period in

 

3

 

the previous year, all prepared in accordance with GAAP, and certified
by the chief financial officer of the Borrower, subject to year-end audit
adjustments.

 

(m)                               The following paragraphs are inserted after paragraph (m) in Section 5.1
of the Credit Agreement:

 

(n)                                 On the third Business Day of every calendar
month, a Borrowing Base certificate as of the end of the immediately preceding
calendar month.

 

(o)                                 On each Wednesday, a cash flow budget for the
13-week period commencing on the immediately preceding Sunday, including
forecasted financing needs during such period (including a forecast of borrowings
hereunder) and the income, expense and other information supporting such
forecast, all presented on a week-by-week basis in such detail as the
Administrative Agent may reasonably request.

 

(n)                                 Sections 5.9, 5.10 and 5.11 of the Credit
Agreement are hereby deleted.

 

(o)                                 Section 6.1(h) of the Credit Agreement
is hereby amended in its entirety to read as follows:

 

(h)                                 Liens granted to the Administrative Agent
pursuant to any Security Documents.

 

(p)                                 The following new paragraph (n) is
hereby added to Section 7.1 of the Credit Agreement:

 

(n)           The aggregate
payments made by the Borrower and its Subsidiaries on account of repurchase or
similar obligations or liabilities under Dealer Finance Agreements in any
single calendar month, after deducting any payments received during such month
on account of returned and repossessed goods that have been the subject of such
obligations or liabilities, shall exceed $2,000,000.

 

(q)                                 Section 7.2(c) of the Credit Agreement
is hereby amended in its entirety to read as follows:

 

(c)           If any Letter of
Credit remains outstanding, the Administrative Agent may, by notice to the
Borrower, require the Borrower to deposit in the L/C Cash Collateral Account
immediately available funds equal to 105% of the L/C Amount, less the balance (if
any) then outstanding in the L/C Cash Collateral Account.

 

(r)                                    The amount, “$75,000,000”, in the table in Exhibit A
to the Credit Agreement is hereby deleted, and the amount, “$30,000,000”, is
substituted therefor.

 

(s)                                  The address and telecopier number for the
Bank (both as Administrative Agent and as a Lender) in Exhibit A are
hereby deleted, and the following is substituted therefor:

 

90 South Seventh Street

MAC N9305-198

Minneapolis, Minnesota 55479

Attention: Jason Wells

Telecopier: 612-316-1491

 

(t)                                    Exhibit C to the Credit Agreement is
hereby amended in its entirety to read as set forth in Exhibit C to this Amendment.

 

(u)                                 Exhibit E to this Amendment is hereby
inserted as Exhibit E to the Credit Agreement.

 

4

 

3.                                      Loan Documents.

 

This Amendment and the
Patent and Trademark Security Agreement, mortgages, deeds of trust and other
agreements required under paragraphs (d), (e) or (f) of Section 9
shall each be deemed a Loan Document, as defined in the Credit Agreement, and
any breach of any obligation of the Borrower under any such document shall
constitute an Event of Default, as defined in the Credit Agreement.

 

4.                                      Post-Closing Deliveries.

 

(a)                                  Not later than April 10, 2009, the
Borrower shall deliver an opinion of Austrian counsel for the Borrower, confirming
that the Administrative Agent’s security interest in 65% of the stock of Arctic
Cat ACE Holding GmbH has been duly perfected, together with such documents as
may be required by such counsel as a condition to delivering such opinions.

 

(b)                                 Not later than May 15, 2009, the
Borrower shall deliver a report, prepared by Alliance Management or another
independent consultant acceptable to the Bank, assessing the reasonableness of
the Borrower’s projected cash flow budget for its fiscal year ending March 31,
2010.

 

(c)                                  As soon as practical, and in any event not
later than May 15, 2009, the Borrower shall deliver to the Administrative
Agent:

 

(i)                                     Evidence of recording of the Mortgages (as
defined below) in the real estate records of the jurisdiction where the related
real property is located.

 

(ii)                                  A final mortgagee’s title policy issued by a
title insurance company acceptable to the Administrative Agent, in favor of the
Administrative Agent, insuring that the Mortgages are valid and enforceable
first priority Liens on the applicable Obligor’s fee simple title to the real
estate therein described, free and clear of all standard exceptions and defects
and Liens except such as the Administrative Agent in its sole discretion may
approve, including the following endorsements: ALTA form 9.0, ALTA form 3.1 (with
parking), contiguity, access to open street, utility, last dollar, separate tax
parcel, no special assessments, usury, forced removal, revolving credit, mortgage
registry tax and such other endorsements as the Administrative Agent may
reasonably require.

 

(iii)                               Copies of such land surveys of the Owned Real
Property as may be in the possession of any Obligor.

 

(iv)                              A certified environmental audit of the real
estate referred to in each Mortgage and the improvements thereon.

 

(v)                                 A certified appraisal conforming to all
applicable requirements of the Financial Institutions Reform, Recovery and
Enforcement Act of 1989, as amended, covering the land and improvements referred
to in each Mortgage and establishing the fair market value of such property.

 

(d)                                 As promptly as practicable (and in any event
not more than 45 days) following any request by the Administrative Agent, two
copies of a perimeter land survey covering the land referred to in each
Mortgage and all related appurtenant easements, prepared by a licensed, registered
surveyor and incorporating the legal description of such land, showing the
location of all points and lines referred to in the legal description and, with
respect to each such parcel which has significant improvements thereon, the
location of all existing material improvements, including driveways and parking,
as being within the exterior boundaries of such land and the location of all
utilities and the location of all easements and encroachments onto or from such
land that are visible on

 

5

 

such
land, known to the surveyor preparing the survey or of record, identifying
easements of record by recording data.

 

Each item required to be
delivered under this Section 4 shall be in form and substance satisfactory
to the Administrative Agent, in its reasonable discretion.

 

5.                                      Collateral Account and
Lockbox.

 

Concurrent with the
execution and delivery of this Amendment by the Borrower, the Borrower shall
deliver to the Administrative Agent a Restricted Account Agreement, Four Party
Wholesale Lockbox Agreement and Master Agreement for Treasury Management
Services, duly executed by each Obligor and in form and substance satisfactory
to the Administrative Agent, together with such other documents as the
Administrative Agent may require to ensure that all payments on accounts
receivable of the Obligors are paid to the lockbox and account established
thereunder. Each Company will promptly direct its customers to mail all
payments to any Company to the post office box identified in or pursuant to
such agreements.

 

6.                                      Collateral Audit.

 

The Borrower acknowledges
that (i) the Administrative Agent intends to conduct a collateral audit of
the Borrower, (ii) the Administrative Agent has the right to conduct such
collateral audit pursuant to Section 5.2 of the Credit Agreement, among
other provisions, and (iii) pursuant to Section 2.6 (c) of the Credit
Agreement, the Borrower is obligated to pay all reasonable fees charged by the
Administrative Agent in connection with such audit, together with actual
out-of-pocket costs and expenses incurred in conducting such audit.

 

7.                                      Amendment Fee.

 

Concurrently with the
execution and delivery of this Amendment, the Borrower shall pay to the Bank an
amendment fee in the amount of $50,000. Such fee shall be deemed fully earned
by the Bank’s execution and delivery of this Amendment.

 

8.                                      Representations and
Warranties.

 

The Borrower and the Guarantors
each hereby represent and warrant to each Lender Party as follows:

 

(a)                                  Each of the Borrower and each Guarantor has
all requisite power and authority, corporate or otherwise, to execute and
deliver this Amendment and to perform this Amendment and the Credit Agreement
as amended hereby. This Amendment has been duly and validly executed and
delivered to the Administrative Agent by the Borrower and the Guarantors, and
this Amendment and the Credit Agreement as amended hereby constitute the legal,
valid and binding obligations of the Borrower and the Guarantors, enforceable
in accordance with their terms, except as enforceability may be limited by
bankruptcy, insolvency, fraudulent conveyance or similar laws affecting
creditors’ rights generally and general principles of equity (regardless of
whether the application of such principles is considered in a proceeding in
equity or at law).

 

(b)                                 The execution, delivery and performance by
the Borrower and the Guarantors of this Amendment, and the performance of the
Credit Agreement as amended hereby, have been duly authorized by all necessary
action (corporate or otherwise) and do not and will not (i) require any
authorization, consent or approval by any governmental department, commission, board,
bureau, agency or instrumentality, domestic or foreign (other than consents and
approvals that have been obtained and remain in full force and effect), (ii) violate
the Organizational Documents of the Borrower or any Guarantor or any provision
of any law, rule, regulation or order presently in effect having applicability
to the Borrower or any Guarantor, or (iii) except where such breach or
default would not have a Material Adverse Effect, result in a breach of or
constitute a default

 

6

 

under
any indenture or agreement to which the Borrower or any Guarantor is a party, or
by which the Borrower or any Guarantor or any property of the Borrower or any
Guarantor may be bound or affected.

 

(c)                                  All of the representations and warranties
contained in Article IV of the Credit Agreement are correct in all
material respects on and as of the date hereof as though made on and as of such
date, except to the extent that such representations and warranties relate
solely to an earlier date, in which case such representations and warranties
shall be correct only as of such date.

 

(d)                                 Schedule 1 to this Amendment is a complete
list of all patents, applications for patents, trademarks, applications for
trademarks, service marks, applications for service marks, mask works, trade
dress and copyrights for which any Obligor is the registered owner (the “Owned Intellectual
Property”). Except as disclosed on Schedule 1, (i) each Obligor
owns its Owned Intellectual Property free and clear of all restrictions (including
covenants not to sue a third party), court orders, injunctions, decrees, writs
or Liens, whether by written agreement or otherwise, (ii) no Person other
than an Obligor owns or has been granted any right in the Owned Intellectual
Property, (iii) all Owned Intellectual Property is valid, subsisting and
enforceable and (iv) each Obligor has taken all commercially reasonable
action necessary to maintain and protect the Owned Intellectual Property owned
by it.

 

(e)                                  Schedule 2 to this Amendment sets forth each
parcel of real property owned by any Obligor (the “Owned Real Property”), including
for each parcel the owner, street address and complete legal description
thereof.

 

(f)                                    Schedule 3 to this Amendment sets forth each
deposit account and securities account (as those terms are defined in the
Uniform Commercial Code) owned by any Obligor, including for each account the
owner thereof, the nature thereof (including whether such account is a deposit
account or a securities account), the depository bank or securities
intermediary with which such account is maintained, and the approximate value
of such account.

 

9.                                      Conditions Precedent.

 

The amendments set forth in Section 2
are subject to the conditions precedent that, on or before the date hereof (or
such later date as the Bank may approve in writing), the Borrower shall have
delivered to the Bank each of the following, each in form and substance
satisfactory to the Bank:

 

(a)           This Amendment, duly executed by the Borrower.

 

(b)           The amendment fee specified in Section 7.

 

(c)           A Borrowing Base Certificate as of March 31, 2009.

 

(d)                                 A Patent and Trademark Security Agreement, duly
executed by each Obligor that holds any Owned Intellectual Property, in form
suitable for filing with the Patent and Trademark Office.

 

(e)                                  Such mortgages and deeds of trust (the “Mortgages”) as
may be required to grant the Administrative Agent a mortgage lien on each
parcel of Owned Real Property, together with copies of all surveys, title
insurance polices, title insurance opinions, environmental reports and other
documents related to the Owned Real Property as the Administrative Agent may
request.

 

(f)                                    The agreements identified in Section 5.

 

(g)                                 A signed copy of the opinion of counsel for
the Borrower, addressed to the Administrative Agent and the Lenders, confirming
the matters set forth in paragraphs (a) and (b) of Section 8
above, and such other matters as the Administrative Agent may request.

 

7

 

10.          Release.

 

The Borrower and the
Guarantors each hereby waive, release, relinquish and forever discharge the
Bank, and its past and present directors, officers, agents, employees, parents,
subsidiaries, affiliates, insurers, attorneys, representatives and assigns, and
each and all thereof (collectively, the “Released Parties”), of and from
any and all manner of action or causes of action, suits, claims, demands, judgments,
damages, levies, and the execution of whatsoever kind, nature and/or
description arising on or before the date hereof, including, without limitation,
any claims, losses, costs or damages, including compensatory and punitive
damages, in each case whether known or unknown, liquidated or unliquidated, fixed
or contingent, direct or indirect, which the Borrower or any Guarantor ever had
or now has or may claim to have against any of the Released Parties, with
respect to any matter whatsoever, including, without limitation, the
administration of the Loan Documents and the negotiations relating to this
Amendment.

 

11.          WAIVER OF JURY TRIAL.

 

THE
BORROWER, THE GUARANTORS AND THE BANK EACH IRREVOCABLY WAIVE ANY AND ALL RIGHT
TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT, THE NOTE AGREEMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.
THE GUARANTORS AND THE BANK EACH REPRESENT TO EACH OTHER THAT THIS WAIVER IS
KNOWINGLY, WILLINGLY AND VOLUNTARILY GIVEN.

 

12.          Payment of Costs.

 

The Borrower reaffirms its
obligation under the Credit Agreement, and specifically agrees, to pay or reimburse
the Bank on demand for all costs and expenses incurred by the Bank in
connection with the Loan Documents, including but not limited to all fees and
disbursements of legal counsel to the Bank, and specifically including all
costs and expenses of the Bank, including attorneys fees, incurred in
connection with the drafting and preparation of this Amendment and any related
documents.

 

13.          Miscellaneous.

 

This Amendment sets forth
the entire agreement of the parties with respect to the subject matter hereof. It
cannot be waived, modified or amended except by a writing signed by the party
against which enforcement is sought. Except as expressly amended by this
Amendment, all of the terms and conditions of the Credit Agreement shall remain
in full force and effect. This Amendment shall be governed by the internal law
of Minnesota. This Amendment shall be binding upon and shall accrue to the
benefit of the parties and their successors and assigns. This Amendment may be
executed in any number of counterparts, each of which when so executed and
delivered shall be deemed to be an original and all of which counterparts of
this Amendment, taken together, shall constitute but one and the same
instrument.

 

Signature pages follow

 

8

 

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as
of the day and year first above-written.

 

	
   

  	
  ARCTIC
  CAT INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Timothy
  C. Delmore

  
	
   

  	
  Name: Timothy C. Delmore

  
	
   

  	
  Title: Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ARCTIC
  CAT SALES INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Timothy
  C. Delmore

  
	
   

  	
  Name:
  Timothy C. Delmore

  
	
   

  	
  Title:
  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ARCTIC
  CAT PRODUCTION LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Timothy
  C. Delmore

  
	
   

  	
  Name:
  Timothy C. Delmore

  
	
   

  	
  Title:
  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ARCTIC
  CAT PRODUCTION SUPPORT LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Timothy
  C. Delmore

  
	
   

  	
  Name:
  Timothy C. Delmore

  
	
   

  	
  Title:
  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ARCTIC
  CAT SHARED SERVICES LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Timothy
  C. Delmore

  
	
   

  	
  Name: Timothy C. Delmore

  
	
   

  	
  Title: Chief Financial Officer

  

 

Signature page to First Amendment to Arctic Cat Inc. Credit Agreement

 

 

	
   

  	
  WELLS FARGO BANK, NATIONAL 

  
	
   

  	
   

  	
  ASSOCIATION, as Administrative Agent, 

  
	
   

  	
   

  	
  Issuing Lender and Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Jason
  D. Wells

  
	
   

  	
  Name:
  Jason D. Wells

  
	
   

  	
  Title:
  Assistant Vice-President

  

 

Signature
page to First Amendment to Arctic Cat Inc. Credit AgreementExhibit 10.1

 

AMENDING AGREEMENT

 

AMENDING AGREEMENT (the “Agreement”),
dated as of April 1, 2009, by and among Magna Entertainment Corp. (“MEC”), a Delaware corporation,
Gulfstream Park Racing Association, Inc., a Florida corporation, GPRA
Commercial Enterprises, Inc., a Florida corporation, GPRA Thoroughbred
Training Center, Inc., a Delaware corporation, MEC Land Holdings
(California) Inc., a California corporation, MEC Maryland Investments, Inc.,
a Delaware corporation, MEC Texas Racing, Inc., a Delaware corporation,
Pacific Racing Association, a California corporation, Racetrack Holdings, Inc.,
a Delaware corporation, 30000 Maryland Investments LLC, a Delaware limited
liability company, XpressBet, Inc., a Delaware corporation, and MI
Developments Inc., an Ontario corporation (“MID”).

 

RECITALS:

 

A.                                   The parties hereto have entered into a purchase agreement dated as
of March 5, 2009 (the “Purchase
Agreement”).

 

B.                                     The parties hereto desire to amend the Purchase Agreement on the
terms contained in this Agreement.

 

NOW THEREFORE, in consideration of the mutual
covenants and agreements contained in this Agreement and other good and
valuable consideration, the parties hereto covenant and agree as follows:

 

1.                                       The parties hereby agree to amend Section 9.1 of the Purchase
Agreement by deleting such section in its entirety and replacing it with the
following:

 

“This Agreement may be
terminated by the Sellers or by MID, in their or its sole option and
discretion, in the event that (a) MID or any Seller, as the case may be,
breaches the covenants set forth in Article V hereof, (b) the Sale
Order and Confirmation Order are not entered by the Bankruptcy Court on or
prior to August 30, 2009 or (c) the Ontario Securities Commission
determines that minority approval (as defined in Multilateral Instrument 61-101
— Protection of Minority Security Holders in Special Transactions) is required
in respect of this Agreement or any of the transactions provided for herein;
provided that if MID in its discretion elects to call a meeting of the
shareholders of MID to seek such minority approval, neither the Sellers nor MID
shall terminate this agreement pursuant to this clause (c) unless such
approval is not obtained at such  meeting
of shareholders;  provided further,
however, that, in the event that the Sale Motion is denied by the Bankruptcy
Court, unless otherwise agreed to by MID and the Sellers, the Agreement shall
terminate automatically without any further notice or action by any person.”

 

2.                                       The parties hereby agree to amend
clause (i) of section 2.3(b) of the Purchase Agreement by deleting
such clause in its entirety and replacing it with the following:

 

 

“by
the Sellers or MID pursuant to Section 9.1(b) or 9.1(c) or
automatically pursuant to the second proviso to Section 9.1 or”

 

3.                                       Except for the specific amendments provided for herein, the Purchase
Agreement is in all other respects ratified and confirmed and the Purchase
Agreement as amended hereby shall be read, taken and construed as one and the
same instrument and remains in full force and effect.

 

4.                                       This Agreement shall be governed by and construed in accordance with
the internal laws of the State of New York, without giving effect to any
principles of conflicts of law.

 

2

 

IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be executed as of the day and year first above written.

 

 

	
   

  	
  MI DEVELOPMENTS INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:  

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MAGNA ENTERTAINMENT CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Blake Tohana

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and Chief
  Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
  William G. Ford

  
	
   

  	
   

  	
  Title:

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GULFSTREAM PARK RACING ASSOCIATION, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Blake Tohana

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and Chief
  Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  William G. Ford

  
	
   

  	
   

  	
  Title:

  	
  Secretary

  

 

3

 

	
   

  	
  GPRA COMMERCIAL ENTERPRISES, INC.

  
	
   

  	
   

  
	
   

  	
  By:  

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Blake Tohana

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and Chief
  Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
  William G. Ford

  
	
   

  	
   

  	
  Title:

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  GPRA THOROUGHBRED TRAINING CENTER, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Blake Tohana

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and Chief
  Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
  William G. Ford

  
	
   

  	
   

  	
  Title:

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MEC LAND HOLDINGS (CALIFORNIA) INC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Blake
  Tohana 

  
	
   

  	
   

  	
  Title:
  

  	
  Executive
  Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:
  

  	
  William
  G. Ford 

  
	
   

  	
   

  	
  Title:
  

  	
  Secretary

  

 

4

 

	
   

  	
  MEC MARYLAND INVESTMENTS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:  

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Blake Tohana

  
	
   

  	
   

  	
  Title: 

  	
  Executive Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  William G. Ford

  
	
   

  	
   

  	
  Title: 

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MEC TEXAS RACING, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Blake Tohana

  
	
   

  	
   

  	
  Title: 

  	
  Executive Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
  William G. Ford

  
	
   

  	
   

  	
  Title:

  	
   

  

 

5

 

	
   

  	
  PACIFIC RACING ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:  

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Blake Tohana
  

  
	
   

  	
   

  	
  Title: 

  	
  Executive
  Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  William G.
  Ford 

  
	
   

  	
   

  	
  Title: 

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  RACETRACK HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Blake Tohana
  

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
  William G.
  Ford 

  
	
   

  	
   

  	
  Title: 

  	
  Secretary

  

 

6

 

	
   

  	
  XPRESSBET, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Blake Tohana

  
	
   

  	
   

  	
  Title: 

  	
  Executive
  Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  William G.
  Ford

  
	
   

  	
   

  	
  Title: 

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  30000 MARYLAND INVESTMENTS LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Blake Tohana

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
  William G. Ford
  

  
	
   

  	
   

  	
  Title: 

  	
  Secretary

  

 

7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]