Document:

Amendment No 6 to Credit Agreement

 Exhibit 10.6 
 AMENDMENT NO. 6 
 This AMENDMENT NO. 6 (“AMENDMENT”) is made as of May 8, 2006,
by and among DOVER MOTORSPORTS, INC., a Delaware corporation, DOVER INTERNATIONAL SPEEDWAY, INC., a Delaware corporation, GATEWAY INTERNATIONAL MOTORSPORTS CORPORATION, an Illinois corporation, GATEWAY INTERNATIONAL SERVICES CORPORATION, an Illinois
corporation, MEMPHIS INTERNATIONAL MOTORSPORTS CORPORATION, a Tennessee corporation, M&N SERVICES CORP., a Tennessee corporation, and NASHVILLE SPEEDWAY USA, INC., a Tennessee corporation (collectively, “BORROWERS”); MERCANTILE-SAFE
DEPOSIT AND TRUST COMPANY, a Maryland banking corporation as agent (“AGENT”); MERCANTILE-SAFE DEPOSIT AND TRUST COMPANY, a Maryland banking corporation in its capacity as issuer of letters of credit (“ISSUING BANK”); and
WILMINGTON TRUST COMPANY, MERCANTILE-SAFE DEPOSIT AND TRUST COMPANY, WILMINGTON SAVINGS FUND SOCIETY, FSB and PNC BANK, DELAWARE (collectively, “LENDERS”). 
 RECITALS 
 The BORROWERS, the AGENT, the ISSUING BANK and the LENDERS are parties to that certain
Credit Agreement executed February 17, 2004 and effective as of February 19, 2004, as previously amended (“CREDIT AGREEMENT”), pursuant to which the LENDERS and the ISSUING BANK are providing to the BORROWERS certain credit
facilities (“CREDIT FACILITIES”). 
 The BORROWERS’ repayment obligations in connection with the CREDIT FACILITIES are
evidenced by: (a) the Amended and Restated Revolving Loan Promissory Note in the stated principal amount of Thirty-One Million Four Hundred Twenty-Eight Thousand Five Hundred Sixty-Eight Dollars ($31,428,568.00) from the BORROWERS to the order
of Mercantile-Safe Deposit and Trust Company effective as of February 19, 2004 (“MERCANTILE NOTE”); (b) the Amended and Restated Revolving Loan Promissory Note in the stated principal amount of Seventeen Million One Hundred
Forty-Two Thousand Eight Hundred Fifty-Six Dollars ($17,142,856.00) from the BORROWERS to the order of Wilmington Trust Company effective as of February 19, 2004 (“WILMINGTON TRUST NOTE”); (c) the Amended and Restated Revolving
Loan Promissory Note in the stated principal amount of Seventeen Million One Hundred Forty-Two Thousand Eight Hundred Fifty-Six Dollars ($17,142,856.00) from the BORROWERS to the order of PNC Bank, Delaware effective as of August 5, 2005
(“PNC NOTE”); and (d) the Amended and Restated Revolving Loan Promissory Note in the stated principal amount of Fourteen Million Two Hundred Eighty-Five Thousand Seven Hundred Twenty Dollars ($14,285,720.00) from the BORROWERS to
Wilmington Savings Fund Society, FSB effective as of August 5, 2005 (“WILMINGTON SAVINGS NOTE”). 
 As used herein the term
“LOAN DOCUMENTS” means collectively the CREDIT AGREEMENT, the MERCANTILE NOTE, the WILMINGTON TRUST NOTE, the PNC NOTE, the WILMINGTON SAVINGS NOTE and all other documents evidencing the obligations in connection with the CREDIT
FACILITIES. 

 On October 20, 2005 the BORROWERS and MERCANTILE-SAFE DEPOSIT AND TRUST COMPANY entered into an ISDA
Master Agreement and Schedule (“INTEREST RATE SWAP AGREEMENT”) setting forth the terms pursuant to which they would enter into interest rate swap transactions from time to time. As set forth in a Confirmation dated October 24, 2005
the BORROWERS and MERCANTILE-SAFE DEPOSIT AND TRUST COMPANY (“CONFIRMATION”) entered into an interest rate swap transaction in the original notional amount of Thirty-Seven Million Five Hundred Thousand Dollars ($37,500,000.00) with an
effective date of November 1, 2005 (“SWAP TRANSACTION”). With the intention of creating a tranche under the REVOLVING LOANS that would correspond to the SWAP TRANSACTION, on November 1, 2005 the BORROWERS obtained a “LIBOR
BORROWING” (as defined in the CREDIT AGREEMENT) under the “REVOLVING LOANS” (as defined in the CREDIT AGREEMENT) in the amount of Thirty-Seven Million Five Hundred Thousand Dollars ($37,500,000.00) (including all renewals thereof
which correspond to the CONFIRMATION, and as the amount of such borrowing reduces in accordance with the CONFIRMATION, the “SWAP LIBOR BORROWING”). The payment terms of the SWAP LIBOR BORROWING does not exactly match the payment terms
under the SWAP TRANSACTION and the BORROWERS have requested that the terms of the CREDIT AGREEMENT be modified in order to have the such terms match. 
 The AGENT, the LENDERS and the ISSUING BANK are willing to consent to the requests of the BORROWERS subject to the terms and provisions of this AMENDMENT. 
 NOW, THEREFORE, in consideration of the premises, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged,
the parties agree as follows: 
 Section 1. Recitals. The parties acknowledge the accuracy of the above recitals and hereby
incorporate the recitals into this AMENDMENT. 
 Section 2. Amendment to Credit Agreement. Effective as of the date of this
AMENDMENT and for the period in which the SWAP LIBOR BORROWING is in existence, the CREDIT AGREEMENT as it relates to the SWAP LIBOR BORROWING (and not as it relates as to any other obligations, borrowings, loans or credit facilities) is amended as
follows: 
 a. In connection with the SWAP LIBOR BORROWING the definition of “INTEREST PERIOD” in Article 1 of the
CREDIT AGREEMENT is hereby amended to provide that the term “INTEREST PERIOD” means the one month period commencing on the first day of each month and continuing to but excluding the first day of the following month; provided that any
INTEREST PERIOD which would otherwise start or end on a day which is not a BUSINESS DAY shall be extended to the next succeeding BUSINESS DAY; and (b) no INTEREST PERIOD will end after any applicable MATURITY DATE. 
  

 2 

 b. In connection with the SWAP LIBOR BORROWING the definition of “LIBOR RATE”
in Article 1 of the CREDIT AGREEMENT is hereby amended to provide as follows: 
 LIBOR Rate. The term “LIBOR
RATE” means the published rate for deposits in U.S. Dollars for a period equal to the INTEREST PERIOD selected which appears on the Bloomberg reporting service that displays an average British Bankers Association Interest Settlement Rate for
dollar deposits, determined at approximately 11:00 a.m. London time, two (2) London business days prior to the commencement of the applicable INTEREST PERIOD. If, for any reason, such published rate is not available, then the term “LIBOR
RATE” shall mean the weighted average rounded, if necessary, to the nearest one-hundredth of one percent (.01%) of the rate quotation offered to the AGENT by five (5) leading banks in the London Interbank Eurodollar Market for United
States dollar deposits for amounts in immediately available funds comparable to the amount of the LIBOR BORROWING to be made for such INTEREST PERIOD and for a term comparable to such INTEREST PERIOD, as of 11:00 a.m. London time or as soon
thereafter as practicable, two (2) London business days prior to the commencement of such INTEREST PERIOD. 
 c. In
connection with the SWAP LIBOR BORROWING Section 2.4.2. of the CREDIT AGREEMENT is hereby amended to provide that, subject to the provisions of Section 2.4.2.c., upon the expiration of each INTEREST PERIOD for the SWAP LIBOR BORROWING, the
SWAP LIBOR BORROWING shall automatically continue as a LIBOR BORROWING with a new one month INTEREST PERIOD; provided that the amount of the SWAP LIBOR BORROWING shall be reduced as of November 1 of each year in accordance with the
CONFIRMATION. 
 Section 3. Other Terms. Except as specifically modified herein, all other terms and provisions of the CREDIT
AGREEMENT and all other documents evidencing or otherwise documenting the terms and provisions of the credit facilities being provided by the LENDERS and the ISSUING BANK to the BORROWERS remain in full force and effect and are hereby ratified and
confirmed. 
 Section 4. Choice of Law. The laws of the State of Maryland (excluding, however, conflict of law principals) shall
govern and be applied to determine all issues relating to this AMENDMENT and the rights and obligations of the parties hereto, including the validity, construction, interpretation and enforceability of this AMENDMENT. 
  

 3 

 Section 5. Delivery by Telecopier. This AMENDMENT may be delivered by telecopier and a
facsimile of any party’s signature hereto shall constitute an original signature for all purposes. 
 Section 6.
Counterparts. This AMENDMENT may be executed in counterparts each of which shall be binding upon the signatories but all of which shall constitute one and the same agreement. 
 IN WITNESS WHEREOF, the parties have executed this AMENDMENT with the specific intention of creating a document under seal. 
  

					
	BORROWERS:
	
	DOVER MOTORSPORTS, INC.,
	A Delaware Corporation
			
	By:	 	 /s/ Thomas G. Wintermantel
	 	(SEAL)
	Name:	 	Thomas G. Wintermantel	 	
	Title:	 	Treasurer & Asst. Secretary	 	
	
	DOVER INTERNATIONAL SPEEDWAY, INC.,
	A Delaware Corporation
			
	By:	 	 /s/ Thomas G. Wintermantel
	 	(SEAL)
	Name:	 	Thomas G. Wintermantel	 	
	Title:	 	Treasurer & Asst. Secretary	 	
	
	GATEWAY INTERNATIONAL MOTORSPORTS CORPORATION,
	An Illinois Corporation
			
	By:	 	 /s/ Thomas G. Wintermantel
	 	(SEAL)
	Name:	 	Thomas G. Wintermantel	 	
	Title:	 	Treasurer & Asst. Secretary	 	

  

 4 

					
	BORROWERS (cont.):
	
	GATEWAY INTERNATIONAL SERVICES CORPORATION, An Illinois Corporation
			
	By:	 	 /s/ Tony R. Evans
	 	(SEAL)
	Name:	 	Tony R. Evans	 	
	Title:	 	Treasurer & Secretary	 	
	
	MEMPHIS INTERNATIONAL MOTORSPORTS CORPORATION, A Tennessee Corporation
			
	By:	 	 /s/ Thomas G. Wintermantel
	 	(SEAL)
	 Name:
	 	Thomas G. Wintermantel	 	
	 Title:
	 	Treasurer & Asst. Secretary	 	
	
	M&N SERVICES CORP.,
	A Tennessee Corporation
			
	By:	 	 /s/ Tony R. Evans
	 	(SEAL)
	Name:	 	Tony R. Evans	 	
	Title:	 	Treasurer & Secretary	 	
	
	NASHVILLE SPEEDWAY USA, INC.,
	 A Tennessee Corporation

			
	By:	 	 /s/ Thomas G. Wintermantel
	 	(SEAL)
	Name:	 	Thomas G. Wintermantel	 	
	Title:	 	Treasurer & Asst. Secretary	 	

  

 5 

					
	AGENT:
	
	MERCANTILE-SAFE DEPOSIT AND TRUST COMPANY, A Maryland Banking Corporation
			
	By:	 	 /s/ C. Douglas Sawyer
	 	(SEAL)
	Name:	 	C. Douglas Sawyer	 	
	Title:	 	Senior Vice President	 	
	
	LENDERS:
	
	WILMINGTON TRUST COMPANY
			
	By:	 	 /s/ Michael B. Gast
	 	(SEAL)
	Name:	 	Michael B. Gast	 	
	Title:	 	Vice President	 	
	
	MERCANTILE-SAFE DEPOSIT AND TRUST COMPANY
			
	By:	 	 /s/ C. Douglas Sawyer
	 	(SEAL)
	Name:	 	C. Douglas Sawyer	 	
	Title:	 	Senior Vice President	 	
	
	WILMINGTON SAVINGS FUND SOCIETY, FSB
			
	By:	 	 /s/ M. Scott Baylis
	 	(SEAL)
	Name:	 	M. Scott Baylis	 	
	Title:	 	Senior Vice President	 	

  

 6 

					
	PNC BANK, DELAWARE
			
	By:	 	 /s/ Warren C. Engle
	 	(SEAL)
	Name:	 	Warren C. Engle	 	
	Title:	 	Senior Vice President	 	
	
	ISSUING BANK:
	
	MERCANTILE-SAFE DEPOSIT AND TRUST COMPANY
			
	By:	 	 /s/ C. Douglas Sawyer
	 	(SEAL)
	Name:	 	C. Douglas Sawyer	 	
	Title:	 	Senior Vice President	 	

  

 7Description of Annual Salary

 Exhibit 10.35 
 Description of Annual Salary and Certain Discretionary Incentives to Executive Officers 
 1. The following executive
officers are employed “at-will” and their annual salary, as previously reported, is as set forth below: 
  

						
	 Executive Officer
	 	 Title
	 	Annual Salary
	 Denis McGlynn
	 	President and CEO	 	$	250,000
	 Patrick J. Bagley
	 	Senior Vice President-Finance & CFO	 	$	235,000
	 Klaus M. Belohoubek
	 	Senior Vice President-General Counsel & Secretary	 	$	172,000
	 Michael A. Tatoian
	 	Executive Vice President	 	$	175,000
	 Thomas G. Wintermantel
	 	Treasurer and Assistant Secretary	 	$	178,000

 2. Chief Executive Officer Discretionary Incentive 
 As previously reported, the Compensation and Stock Incentive Committee adopted the following resolution on January 3, 2007 relative to a
discretionary annual incentive for the Chief Executive Officer. 
 RESOLVED, that, effective as of January 1, 2007, the salary for the
Chief Executive Officer of the Company shall remain $250,000 per annum and the determination of a discretionary annual incentive for fiscal year ending 2007 will be dependent upon an overall favorable evaluation of the Chief Executive Officer’s
performance and be calculated as five percent of the year over year increase in the Company’s pre-tax earnings less $100,000, as determined by this Committee in its sole discretion. 
 3. Executive Vice President Discretionary Incentive 
 As previously reported, the Compensation and Stock
Incentive Committee adopted the following resolution on November 27, 2006 relative to a discretionary annual incentive for the Executive Vice President. 
 FURTHER RESOLVED, that the determination of a discretionary annual incentive for the Executive Vice President for fiscal year ending 2007 will be dependent upon an overall favorable evaluation of the Executive Vice
President’s performance and be calculated as one percent of the year over year increase in the Company’s pre-tax earnings, as determined by this Committee in its sole discretion. 
 4. Special Budget Based Incentive 
 An annual discretionary
incentive tied to the Company’s annual budget has been established for ten senior officers of the Company and its subsidiaries, including the Company’s executive officers, pursuant to which each may be entitled to receive a cash incentive
payment of up to $15,000 based upon the attainment by the Company of certain financial metrics. The metrics are based upon exceeding certain measures contained in the Company’s operating budget for the year and are intended to be aggressive but
reasonably attainable goals. The formal terms of this incentive are as set forth below: 
 1. The amount will be paid within 30 days after our
financials for 2007 have been signed off by our independent auditors. If it is clear to the Executive Committee that the goal will be met, we may choose to pay the amount earlier. As most of our events are concluded by this time of year, payment
could easily be made at our 2008 budget meeting. 
 2. The amount paid will be less normal payroll withholdings. 
 3. The calculation of EBITDA will be as calculated by the Company, at its sole discretion. Extraordinary items may be excluded from the calculation (such
as a sale of assets outside the ordinary course of business). 
 4. Participation in this program does not in any way affect your status as an
“at-will” employee. In order to receive your payment, you must be an employee in good standing at the time the payment is made. 
 5. The Company reserves the right to modify or terminate this plan, in whole or in part. No one has any earned or vested entitlement to a payment under this plan. All payments remain at the sole discretion of the Executive Committee.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00119-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00119-of-00352.parquet"}]]