Document:

EX-10.50

 Exhibit 10.50 
 EXECUTION COPY 
 AMENDMENT NO. 3 TO NOTE PURCHASE AGREEMENT AND 

LIMITED CONSENT 
 THIS AMENDMENT NO. 3 TO NOTE PURCHASE AGREEMENT AND LIMITED CONSENT (this “Amendment”) is entered into as of November 23, 2011, by and among KMG CHEMICALS,
INC., a Texas corporation (“KMG Chemicals”), KMG-BERNUTH, INC., a Delaware corporation (“KMG-Bernuth”), KMG ELECTRONIC CHEMICALS,
INC., a Texas corporation (“KMG ECI” and, together with KMG Chemicals and KMG-Bernuth, collectively, the “Companies” and each, individually, a “Company”), and the undersigned holders
of Notes (as hereinafter defined). 
 Recitals 

A. The Companies entered into a Note Purchase Agreement dated as of December 31, 2007 (as amended by Amendment
No. 1 to Note Purchase Agreement dated as of March 6, 2009, as amended by Amendment No. 2 to Note Purchase Agreement dated as of March 18, 2010, and as the same may be further amended, restated, supplemented or otherwise modified
from time to time, the “Note Agreement”), with the several Purchasers (as defined in the Note Agreement) listed in the Purchaser Schedule attached thereto, pursuant to which the Companies issued and sold to such Purchasers the
Companies’ 7.43% Senior Secured Notes due December 31, 2014, in the aggregate principal amount of $20,000,000 (together with any such promissory notes that may have been issued in substitution or exchange therefor prior to the date hereof,
the “Notes”). 
 B. The Companies have requested that the holders of Notes consent to an
increase in the maximum principal amount of the Credit Agreement Obligations (as defined in the Note Agreement) in respect of the Revolving Loans (as defined in the Credit Agreement (as defined in the Note Agreement)) from $50,000,000 to
$60,000,000, as set forth in this Amendment, and the undersigned holders of Notes, subject to the terms and conditions set forth herein, are willing to consent to such increase. 

C. The Companies desire to make certain amendments and modifications to the Note Agreement, as set forth in this
Amendment, and the undersigned holders of Notes, subject to the terms and conditions set forth herein, are willing to agree to such amendments and modifications. 

NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows: 
 1. Definitions.
Capitalized terms used and not otherwise defined herein shall have the respective meanings ascribed to them in the Note Agreement. 

 2. Amendments to Schedule B (Defined Terms).
Schedule B of the Note Agreement is hereby amended by adding the following new definitions in the appropriate alphabetical position therein: 

“Consolidated Current Assets” means, at any time, the consolidated current assets of the
Company Consolidated Group, as determined in accordance with GAAP. 
 “Consolidated
Current Liabilities” means, at any time, the consolidated current liabilities of the Company Consolidated Group, as determined in accordance with GAAP. 

3. Amendment to Section 9.13(a) (Maintaining Bank Accounts). Section 9.13(a) of the
Note Agreement is hereby amended by restating it in its entirety to read as follows: 
 (a) Each
Company shall maintain all of their principal bank accounts (collectively, the “Bank Accounts”), including any Deposit Accounts and disbursement accounts, with Wells Fargo Bank, National Association (the “Approved Bank
Accounts”). 
 4. Amendment to Section 10.1(b) (Financial Covenants).
Section 10.1(b) of the Note Agreement is hereby amended by restating it in its entirety to read as follows: 
 (b) A ratio of Consolidated Current Assets to Consolidated Current Liabilities of not less that 1.50 to 1.00. For purposes of this covenant, Consolidated Current Liabilities shall exclude any payment
required to be made on the stated maturity date of the Notes. 
 5. Limited Consent.
Subject to the terms and conditions set forth herein, and in reliance upon the representations and warranties of the Companies set forth herein, the undersigned holders of Notes hereby consent to the execution, delivery and performance of the
Companies’ obligations under the Third Amendment to Amended and Restated Credit Agreement, dated as of November 23, 2011 (the “Credit Agreement Amendment”), among the Companies and the Lender Parties, including the
increase in the maximum principal amount of the Revolving Loans from $50,000,000 to $60,000,000 effected thereby, to the extent that such Credit Agreement Amendment would otherwise violate Section 10.13(f) of the Note Agreement. This
consent shall not be a precedent for any subsequent requested waiver of (or consent under) this or any other covenant or other provision of the Note Agreement. 
 6. Representations and Warranties of the Companies. Each Company hereby represents and warrants that it is a corporation duly organized and validly existing in good standing under the
laws of its jurisdiction of incorporation, and is duly qualified as a foreign corporation and is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so
qualified or in good standing could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Each Company has the corporate power and authority to execute and deliver this Amendment and to perform its
obligations under this Amendment and the Note Agreement as amended hereby. The execution and delivery by each Company of this Amendment and the performance by each such Company of its obligations under this Amendment and the Note Agreement as
amended hereby have been duly authorized by all necessary corporate action on the part of each Company. Each Company has duly executed and delivered this Amendment, and this Amendment and the Note Agreement as amended hereby constitute the legal,
valid and binding obligations of each Company, enforceable against each such Company in accordance with its terms. 

  
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 7. Conditions to Effectiveness. The parties hereto
agree that this Amendment and the consent and amendments to the Note Agreement contained herein shall become effective, as of the date first written above (the “Effective Date”), upon the satisfaction of each of the following
conditions: 
 (a) Representations and Warranties. Each of the representations and warranties made in
this Amendment and the other Note Documents shall be true and correct on and as of the Effective Date as if made on and as of such date, both before and after giving effect to this Amendment. 

(b) No Default or Event of Default. No Default or Event of Default shall exist, both before and after giving
effect to this Amendment. 
 (c) Execution and Delivery of this Amendment. The holders of Notes shall
have received a copy of this Amendment executed and delivered by the Companies and the Required Holders. 
 (d)
Credit Agreement Amendment. The holders of Notes shall have received a copy of the Credit Agreement Amendment executed and delivered by the Companies and the Lender Parties, which Credit Agreement Amendment shall be in form and substance
satisfactory to the Required Holders. 
 (e) Intercreditor Agreement Amendment. The holders of Notes
shall have received an amendment to the Intercreditor Agreement executed and delivered by the parties thereto, which amendment to the Intercreditor Agreement shall be in form and substance satisfactory to Required Holders. 

(f) Officer’s Certificates. The holders of Notes shall have received Officer’s Certificates executed and
delivered by the Companies, which Officer’s Certificates shall be in form and substance satisfactory to the Required Holders. 
 8. Miscellaneous. 
 (a) References to Note
Agreement. Upon and after the date of this Amendment, each reference to the Note Agreement in the Note Agreement, the Notes or any other instrument or agreement entered into in connection therewith or otherwise related thereto shall mean and be
a reference to the Note Agreement as amended by this Amendment. 
 (b) Ratification and Confirmation.
Except as specifically amended herein, the Note Agreement shall remain in full force and effect, and is hereby ratified and confirmed. 
 (c) No Waiver. The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of any holder of Notes, nor, except as expressly provided
herein, constitute a waiver or amendment of any provision of the Note Agreement, any Note or any other instrument or agreement entered into in connection therewith or otherwise related thereto. 

  
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 (d) Note Document. This Amendment is a Note Document and all of the
provisions of the Note Agreement that apply to Note Documents apply hereto. 
 (e) Expenses. Each Company
agrees to pay promptly all expenses of the holders of Notes related to this Amendment and all matters contemplated hereby, including, without limitation, all fees and expenses of the holders’ special counsel. 

(f) GOVERNING LAW. THIS AMENDMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS OF THE
PARTIES SHALL BE GOVERNED BY, THE LAW OF THE STATE OF NEW YORK. 
 (g) Counterparts. This Amendment
may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the
same instrument. Each counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by all, the parties hereto. Delivery of this Amendment may be made by telecopy or electronic transmission of a duly
executed counterpart copy hereof; provided that any such delivery by electronic transmission shall be effective only if transmitted in .pdf format, .tif format or other format in which the text is not readily modifiable by any recipient
thereof. 
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 IN WITNESS WHEREOF, the undersigned have caused this Amendment to be
executed and delivered by their duly authorized officers as of the date first above written. 
  

			
	KMG CHEMICALS, INC.
		
	By:	 	 /s/ J. Neal Butler

	Name:	 	 J. Neal Butler

	Title:	 	President and Chief Executive Officer
	
	KMG-BERNUTH, INC.
		
	By:	 	 /s/ J. Neal Butler

	Name:	 	J. Neal Butler
	Title:	 	President and Chief Executive Officer
	
	KMG ELECTRONIC CHEMICALS, INC.
		
	By:	 	 /s/ J. Neal Butler

	Name:	 	J. Neal Butler
	Title:	 	President and Chief Executive Officer
	
	THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
		
	By:	 	 /s/ Brian N. Thomas

	Name:	 	Brian N. Thomas
	Title:	 	Vice President

  

Signature page to Amendment No. 3 to Note Purchase Agreement and Limited ConsentEX-10.(hh)

 EXHIBIT 10(hh) 
 CHURCHILL DOWNS INCORPORATED 
 STOCK OPTION AGREEMENT 

THIS STOCK OPTION AGREEMENT (“Agreement”) is made as of the 27th day of September, 2010, between Churchill Downs Incorporated,
a Kentucky corporation, with its principal place of business at 700 Central Avenue, Louisville, Kentucky 40208 (“Company”), and Robert S. Evans (“Executive”). 

WHEREAS, Company and Executive are parties to that certain employment agreement dated as of August 14, 2006, as amended by the First
Amendment to Employment Agreement dated November 25, 2008 (collectively, the “Prior Employment Agreement”); 

WHEREAS, Company and Executive have entered into the Amended and Restated Employment Agreement of even date herewith (the
“Employment Agreement”); 
 WHEREAS, under the terms of the Employment Agreement the Executive is to receive certain
grants of equity compensation as a consequence of his employment by Company; 
 WHEREAS, Company maintains the Churchill Downs
Incorporated 2007 Omnibus Stock Incentive Plan (the “Plan”) which was approved by shareholders of the Company at the 2007 Annual Meeting of Shareholders on June 28, 2007; 

WHEREAS, the Plan provides for the granting of options to purchase shares of Company’s common stock, no par value per share in
accordance with the terms and provisions thereof and the Executive is a person eligible for participation under the Plan; 

WHEREAS, the Compensation Committee (the “Committee”) of the Board of Directors of Company at its meeting on September 23,
2010 authorized and directed Company to make an award of options to the Executive under the terms and conditions set forth in this Agreement; and 
 WHEREAS, the parties desire to enter into this Agreement to set forth the terms and conditions of such award. 
 NOW, THEREFORE, in consideration of the foregoing and the mutual undertakings herein contained, and for other good and valuable consideration, the mutuality, receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows: 
  

	1.	DEFINITIONS. 

  

	 	a.	“Board” means Company’s Board of Directors. 

  

	 	b.	“Change in Control” shall have the meaning ascribed to such term in the Employment Agreement. 

 

	 	c.	“Code” means the Internal Revenue Code of 1986, as amended. 

	 	d.	“Common Stock” means Company’s common stock, no par value, or the common stock or securities of a Successor that have been substituted therefore
pursuant to Section 10. 

  

	 	e.	“Company” means Churchill Downs Incorporated, a Kentucky corporation, with its principal place of business at 700 Central Avenue, Louisville, Kentucky
40208. 

  

	 	f.	“Disability” has the meaning ascribed to such term in the Employment Agreement. 

 

	 	g.	“Employment Agreement” has the meaning set forth in the recitals above. 

 

	 	h.	“Option Price” means the price to be paid for Common Stock upon the exercise of an option, in accordance with Section 3. 

 

	 	i.	“Executive’s Representative” means the personal representative of Executive’s estate, and after final settlement of Executive’s estate,
the successor or successors entitled thereto by law. 

  

	 	j.	“Subsidiary” means any corporation that at the time an option is granted under the Plan qualifies as a subsidiary of Company as defined by Code
Section 424(f). 

  

	 	k.	“Successor” means the entity surviving a merger or consolidation with Company, or the entity that acquires all or a substantial portion of
Company’s assets or outstanding capital stock (whether by merger, purchase or otherwise). 

  

	2.	GRANT OF NON-QUALIFIED STOCK OPTION. Company hereby grants to the Executive the right and option to purchase from Company an aggregate of 180,000 shares of
Common Stock (the “Options”), which Options are not intended to constitute an incentive stock option under Code §422. 

  

	3.	OPTION PRICE. The price to be paid for the Common Stock upon exercise of the Options is $35.19 (closing price of Company’s Common Stock as of the close of
business on September 27, 2010). 

  

	4.	OPTION EXPIRATION. The Options shall expire, and cease to be exercisable, at the earlier of the following times: 

 

	 	a.	November 14, 2016; or 

  

	 	b.	ninety (90) days after Executive’s Termination of Employment (as defined in the Employment Agreement). 

  
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	5.	VESTING OF OPTIONS. 

  

	 	a.	Vesting Period. No part of the Options may be exercised unless and until such Options or part thereof shall have become vested based upon the continuous
employment of Executive after September 27, 2010. The Option shall vest and become exercisable over a three (3) year period as follows: 

  

			
	 Number of Options to Vest
	  	 Vesting Date

		
	 7,500
	  	September 30, 2010
	 15,000
	  	December 31, 2010
	 15,000
	  	March 31, 2011
	 15,000
	  	June 30, 2011
	 15,000
	  	September 30, 2011
	 15,000
	  	December 31, 2011
	 15,000
	  	March 31, 2012
	 15,000
	  	June 30, 2012
	 15,000
	  	September 30, 2012
	 15,000
	  	December 31, 2012
	 15,000
	  	March 31, 2013
	 15,000
	  	June 30, 2013
	 7,500
	  	August 14, 2013

 In the event the Executive’s employment is terminated other than for Cause (as defined in the
Employment Agreement), Disability (as defined in the Employment Agreement) or death, or if the Executive resigns for Good Reason (as defined in the Employment Agreement) for purposes of determining the vesting of Options under this Section 5,
the Executive’s employment shall be considered to have continued until the last day of the calendar quarter in which his Termination of Employment occurs. 
  

	 	b.	Acceleration of Option Vesting. In the event of a Change in Control (as defined in the Employment Agreement) during the Employment Term (as defined in the
Employment Agreement), fifty percent (50%) of the Options that shall not have theretofore become vested and non-forfeitable under Section 5(a) above, shall become vested and non-forfeitable immediately upon the occurrence of such Change in
Control. The options that are subject to accelerated vesting pursuant to this Section 5(b) shall be taken pro rata from each tranche of then un-vested options and the remaining portion of such tranche shall vest according to the terms of this
Agreement. If, during the 2-year period following such Change in Control during the Employment Term, (i) the Executive is terminated by Company other than for Cause (as defined in the Employment Agreement), Disability or death, or (ii) if
the Executive voluntarily resigns for Good Reason all Options shall become non-forfeitable as of the date of such Termination of Employment and shall not be forfeited as a result of such termination. 

 

	6.	 EXERCISE OF OPTIONS. To exercise an Option, Executive shall deliver to Company, or to a broker-dealer in the Common Stock with the original copy
to Company, the following: [i] seven (7) day prior written notice specifying the number of shares as to which the Option is being exercised and, if determined by counsel for Company to be necessary, representing that such shares are being
acquired for investment purposes only 

  
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and not for purpose of resale or distribution; and [ii] payment by Executive, or the broker-dealer, of the Option Price for such shares in cash, or if the Committee in its discretion agrees to so
accept, by delivery to Company of other Common Stock owned by Executive, or in some combination of cash and Common Stock acceptable to the Committee. At the expiration of the seven (7) day notice period, and provided that all conditions
precedent contained in this Agreement are satisfied, Company shall, without transfer or issuance tax or other incidental expenses to Executive, deliver to Executive, at the offices of Company, a certificate or certificates for the Common Stock. If
Executive fails to accept delivery of the Common Stock, Executive’s right to exercise the applicable portion of the Options shall terminate. The Options may be exercised in whole or in part at any time before its expiration. If payment of the
Option Price is made in Common Stock, the value of the Common Stock used for payment of the Option Price shall be the fair market value of the Common Stock on the business day preceding the day written notice of exercise is delivered to Company. The
fair market value of Common Stock shall be the closing price for the Common Stock in the over-the-counter market, as reported by the National Association of Securities Dealers Automated Quotation System, on the business day immediately preceding the
date of grant. The Option Price shall be subject to adjustments in accordance with the provisions of Section 10. 

  

	7.	NONTRANSFERABILITY. The Options are not transferable other than by will or by the laws of descent and distribution. During Executive’s lifetime, the Options
are exercisable only by Executive, and after Executive’s death, to the extent exercisable by Executive on the date of Executive’s death, by Executive’s Representative at any time before expiration of said Options. Any attempted
assignment, transfer, pledge, hypothecation or other disposition of an Option or levy or attachment or similar process not specifically permitted herein, shall be null and void and without effect. 

 

	8.	INVESTMENT REPRESENTATION. Upon demand by the Committee for such a representation, Executive or Executive’s Representative shall deliver to the Committee at
the time of exercise a written representation that the shares to be acquired upon exercise of the Options are to be acquired for investment and not for resale or distribution. Upon such demand, delivery of such representation before delivery of
Common Stock shall be a condition precedent to the right of Executive or Executive’s Representative to purchase Common Stock. 

  

	9.	COMPLIANCE WITH OTHER LAWS AND REGULATIONS. The grant and exercise of Options and the obligation of Company to sell and deliver shares under the Options shall be
subject to all applicable federal and state laws, rules and regulations and to such approvals by any government or regulatory agency as may be required. Company shall not be required to issue or deliver certificates for shares of Common Stock before
[i] the listing of such shares on any stock exchange or over-the-counter market, such as NASDAQ, on which the Common Stock may then be listed or traded, and [ii] the completion of any registration or qualification of any governmental body which
Company shall, in it sole discretion, determine to be necessary or advisable. 

  
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	10.	ADJUSTMENTS IN OPTIONS. 

  

	 	a.	In the event of any change in the outstanding Common Stock by reason of a stock dividend or distribution (or distribution on Common Stock of any security convertible
into securities of Company), recapitalization, merger, consolidation, split-up, combination, subdivision, reclassification, exchange of shares or the like, the Committee shall make equitable adjustments in the Options so that the Options represent
the same percentage of Company’s equity as was the case immediately prior to such change. Any new, additional or different securities to which the Executive shall be entitled in respect of the Options by reason of such adjustment shall be
deemed to be subject to the same terms, conditions and restrictions of the Options so adjusted. 

  

	 	b.	In the event Company merges, consolidates or effects a share exchange with another entity, or all or a substantial portion of Company’s assets or outstanding
capital stock are acquired (whether by merger, purchase or otherwise) by another entity (any such entity being hereafter referred to as the “Successor”) each of the Options shall automatically be converted into and replaced by options for
shares of common stock, or such other class of securities having rights and preferences no less favorable than Company’s Common Stock, of the Successor, and the number of shares subject to the Options and the purchase price per share upon
exercise of the Options shall be correspondingly adjusted, so that Executive shall have the right to purchase [a] that number of shares of common stock of the Successor that have a value equal, as of the date of the merger, conversion or
acquisition, to the value, as of the date of the merger, conversion or acquisition, of the shares of Common Stock of Company theretofore subject to Executive’s Options, [b] for a purchase price per share that, when multiplied by the number of
shares of common stock of the Successor subject to the Options, shall equal the aggregate exercise price at which Executive could have acquired all of the shares of Common Stock of Company theretofore optioned by Executive. 

 

	11.	TAX WITHHOLDING. Company shall have the right to: [i] withhold from any payment due to Executive or Executive’s Representative; or [ii] require the
Executive or the Executive’s Representative to remit to Company; or [iii] retain cash or Common Stock otherwise deliverable to Executive or Executive’s Representative, in an amount sufficient to satisfy applicable tax withholding
requirements resulting from the grant or exercise of the Options pursuant to this Agreement. 

  

	12.	NO RIGHTS AS SHAREHOLDER. Executive or Executive’s Representative shall have no rights as a shareholder with respect to Common Stock subject to the Options
before the date of transfer to Executive of a certificate for such shares. 

  

	13.	NO RIGHTS TO CONTINUED EMPLOYMENT. Nothing contained in this Agreement nor any award herewith shall confer upon Executive any right with respect to continuance
of employment by Company or Subsidiary nor interfere with the right of Company or Subsidiary to terminate Executive’s employment. 

  
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	14.	NOTICES. Notices shall be deemed delivered if delivered personally or if sent by registered or certified mail to Company at its principal place of business, as
set forth above, and to Executive at the address set forth above, or at such other address as either party may hereafter designate in writing to the other. 

 

	15.	SEVERABILITY. The invalidity or unenforceability of any provision of the Agreement shall not affect the validity and enforceability of the remaining provisions
of the Agreement, and such invalid or unenforceable provision shall be stricken to the extent necessary to preserve the validity and enforceability of the Agreement with the parties agreeing in such event to make all reasonable efforts to replace
such invalid or unenforceable provision with a valid provision that will place the parties in approximately the same economic position as contemplated hereunder. 

 

	16.	BINDING EFFECT. This Agreement shall be binding upon and inure to the benefit of the parties and their heirs, personal representatives, successors and assigns.
Executive accepts the award of Options hereunder subject to all of the terms and conditions of this Agreement. Executive hereby agrees to accept as binding, conclusive and final all reasonable decisions and interpretations of the Committee upon any
questions arising under this Agreement, including without limitation, the interpretation of the terms, conditions and restrictions applicable to the Options granted hereunder and the terms and conditions of this Agreement. 

 

	17.	GOVERNING LAW; JURISDICTION: SERVICE OF PROCESS. This Agreement shall be governed by the laws of the Commonwealth of Kentucky. Executive consents to the
exclusive jurisdiction of the courts of the Commonwealth of Kentucky and of any federal court located in Jefferson County, Kentucky in connection with any action or proceeding arising out of or relating to this Agreement, any document or instrument
delivered pursuant to or in connection with this Agreement, or any breach of this Agreement or any such document or instrument. 

  

	18.	ENTIRE AGREEMENT. This Agreement contains the entire agreement between the parties hereto with respect to the subject matter hereof. 

 

	19.	AMENDMENT. This Agreement may not be amended, modified or supplemented except with the consent of the Committee and by written instrument duly executed by the
Executive and Company. 

  

	20.	COUNTERPARTS AND SIGNATURES. This Agreement may be signed in counterparts, each of which shall be an original, with the effect as if the signatures thereto and
hereto were upon the same instrument. Signatures conveyed by facsimile or PDF file shall constitute original signatures. 

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 IN WITNESS WHEREOF, Company and the Executive have executed and delivered this Agreement as
of the date first above written. 
  

			
	CHURCHILL DOWNS INCORPORATED
		
	By:	 	 /s/ Leonard Coleman

		 	Leonard Coleman,
		 	Chair of the Compensation Committee of the Board of Directors (Authorized Representative)
	
	EXECUTIVE:
		
	By:	 	 /s/ Robert L. Evans

  
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