Document:

Exhibit 10.1

 

MODIFICATION
 AND REAFFIRMATION AGREEMENT

 

THIS MODIFICATION AND REAFFIRMATION AGREEMENT (this “Agreement”) is dated as of the 14th day of August, 2014, by and among DOVER DOWNS GAMING AND ENTERTAINMENT, INC., a Delaware corporation (“Borrower”), DOVER DOWNS, INC., a Delaware corporation (“Dover Downs”), and DOVER DOWNS GAMING AND MANAGEMENT CORP., a Delaware corporation (jointly and severally with Dover Downs, the “Guarantors”), and CITIZENS BANK, NATIONAL ASSOCIATION (formerly known as RBS Citizens, National Association), as agent (“Agent”), lead arranger, cash management bank and lender (“Citizens”), PNC BANK, NATIONAL ASSOCIATION, as lender (“PNC”), and WILMINGTON SAVINGS FUND SOCIETY, FSB, as lender (“WSFS” and collectively with Citizens and PNC, the “Lenders”).

 

Background

 

A.                                    Borrower, Agent and Lenders are parties to a Credit Agreement dated as of June 17, 2011 (as amended, the “Credit Agreement”), which provides for a revolving line of credit to the Borrower in the original principal amount of Ninety Million Dollars ($90,000,000).  Unless otherwise defined herein, initially capitalized terms have the meanings given them in the Credit Agreement.

 

B.                                    At Borrower’s request and as an accommodation to it, Lenders have agreed to amend the Credit Agreement as provided in this Agreement.

 

NOW, THEREFORE, in consideration of the Credit Agreement and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound and under seal, agree as follows:

 

Section 1.  Amendment to Credit Agreement.  Upon satisfaction of the Conditions Precedent (as defined herein), the Credit Agreement shall be amended as follows:

 

A.                                    The defined term “Assignment of Leases” is hereby added to Section 1.1 of the Credit Agreement in appropriate alphabetical order:

 

“Assignment of Leases” means that certain assignment of rents, leases and profits by Dover Downs, Inc. for the benefit of the Lender Parties on certain real property and improvements located on N. DuPont Highway, Dover, Delaware.

 

B.                                    The defined term “Loan Documents” in Section 1.1 of the Credit Agreement is hereby deleted and replaced with the following new definition:

 

“Loan Documents” mean this Agreement, any Notes, the Guaranty Agreement, the Mortgage, the Assignment of Leases, the Fee Letters and any other document entered into from time to time by the Obligors and the Lenders and designated as a “Loan Document”.

 

 

C.                                    The defined term “Maturity Date” in Section 1.1 of the Credit Agreement is hereby deleted and replaced with the following new definition:

 

“Maturity Date” means September 30, 2015.

 

D.                                    The defined term “Mortgage” is hereby added to Section 1.1 of the Credit Agreement in appropriate alphabetical order:

 

“Mortgage” means that certain mortgage and security agreement by Dover Downs, Inc. for the benefit of the Lender Parties on certain real property and improvements located on N. DuPont Highway, Dover, Delaware.

 

E.                                     Section 2.5(d) of the Credit Agreement is hereby deleted and replaced with the following new Section 2.5(d):

 

(d)                                 Scheduled Reduction of Commitments.  The Borrower shall reduce the total Commitments (and, if necessary, prepay Loans in accordance with Section 2.7 (Optional Prepayments) so that the total Revolving Exposures do not exceed the total Commitments) on each date set forth below to the aggregate amount set forth opposite such date:

 

	
Date
    	
 
    	
Total Commitments
    	
 
    
	
08/14/14
    	
 
    	
$
    	
55,000,000
    	
 
    
	
12/31/14
    	
 
    	
$
    	
50,000,000
    	
 
    
	
06/30/15
    	
 
    	
$
    	
47,500,000
    	
 
    

 

F.                                      Section 5.2 of the Credit Agreement is hereby deleted and replaced with the following new Section 5.2:

 

5.2                               Leverage Ratio

 

The Borrower will not permit the Leverage Ratio as at the last day of any period set forth below to exceed the ratio set forth opposite such period:

 

	
Period
    	
 
    	
Ratio
    	
 
    
	
06/30/14
    	
 
    	
4.75:1.0
    	
 
    
	
09/30/14
    	
 
    	
4.75:1.0
    	
 
    
	
12/31/14
    	
 
    	
4.5:1.0
    	
 
    
	
03/31/15
    	
 
    	
4.0:1.0
    	
 
    
	
06/30/15
    	
 
    	
3.75:1.0
    	
 
    

 

G.                                    Section 5.4 of the Credit Agreement is hereby deleted and replaced with the following new Section 5.4:

 

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5.4.                            Minimum Consolidated EBITDA

 

The Borrower will not permit Consolidated EBITDA for the four Fiscal Quarters ending on the dates set forth below to be less than the dollar amount set forth opposite such dates:

 

	
Date
    	
 
    	
Consolidated   EBITDA
    	
 
    
	
06/30/14
    	
 
    	
$
    	
8,350,000
    	
 
    
	
09/30/14
    	
 
    	
$
    	
8,350,000
    	
 
    
	
12/31/14
    	
 
    	
$
    	
8,600,000
    	
 
    
	
03/31/15
    	
 
    	
$
    	
9,450,000
    	
 
    
	
06/30/15
    	
 
    	
$
    	
9,450,000
    	
 
    

 

Section 2.  Conditions Precedent.  This Agreement shall become effective upon the satisfaction by Borrower, as determined by Agent, of the following conditions (collectively, the “Conditions Precedent”).

 

A.                                    Proper execution by the parties of this Agreement and delivery of this Agreement to Agent;

 

B.                                    Proper execution of the Mortgage by Dover Downs and delivery of the Mortgage to Agent;

 

C.                                    Payment to the Agent of the amount required to reduce the outstanding principal balance of the Loan to $55,000,000.

 

D.                                    Payment to the Agent for the benefit of the Lender Parties of a fee in the amount of $82,500 in consideration of this Agreement;

 

E.                                     Payment to the Agent for its fees and expenses relating to this Agreement;

 

F.                                      Delivery to Agent of evidence of the insurance required by the Mortgage;

 

G.                                    Proper execution of the Assignment of Leases by Dover Downs and delivery of the Assignment of Leases to Agent;

 

H.                                   UCC-1 Financing Statements naming Dover Downs, as debtor, and Agent, as secured party;

 

I.                                        A current (i) title search of the property subject to the Mortgage acceptable to Agent and (ii) Delaware Secretary of State Uniform Commercial Code search of Dover Downs acceptable to Agent;

 

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J.                                        Resolutions of the respective board of directors of Borrower and Guarantor authorizing this Agreement, the Mortgage and the Assignment of Leases, as applicable;

 

K.                                   Currently dated good standing certificates issued by the Delaware Secretary of State for Borrower and Guarantors; and

 

L.                                     TBD.

 

Section 3.  Affirmations.  Borrower and Guarantors hereby affirm the execution and delivery of each of the Loan Documents, and agree that all of the obligations and liabilities of Borrower and Guarantors under the Loan Documents continue in full force and effect.  Borrower and Guarantors hereby also affirm that all of the collateral received by Agent in connection with the Credit Agreement is intended to and does in fact secure each of the obligations of Borrower described in the Credit Agreement.

 

Section 4.  Agreements, Acknowledgments and Waivers.   Borrower and Guarantors acknowledge that the obligations set forth in each of the Loan Documents are valid, binding, and enforceable against them and are not subject to any defense, counterclaim, recoupment or offset.  In addition, Borrower and Guarantors acknowledge that (i) the execution of this Agreement, (ii) the acceptance by Agent or Lenders of any payments hereunder, or (iii) any previous or subsequent delay by Agent or Lenders in exercising any or all of its rights or remedies under the Loan Documents, either separately or in combination, shall not constitute a waiver by Agent or Lenders of any of the rights of Agent or Lenders under the Loan Documents and shall not preclude Agent or Lenders from exercising its rights thereunder or at law.  Nothing herein shall be deemed a waiver of any of Agent’s or Lenders’ rights or remedies with respect to (i) any existing violation of any affirmative or negative pledge, covenant or warranty, (ii) any Event of Default, or (iii) any Default.

 

Section 5.  Miscellaneous.  The parties to this Agreement further agree as follows:

 

A.                                    Power and Authority.  The parties represent and warrant that each has the full power and authority to enter into and perform this Agreement, all of which has been duly authorized by all necessary corporate action and that this Agreement is valid, binding, and enforceable in accordance with its terms.

 

B.                                    References to Credit Agreement.  Any and all references to the Credit Agreement in any of the other Loan Documents shall be deemed to refer to the Credit Agreement as amended by this Agreement.

 

C.                                    Counterparts.  This Agreement may be executed by the parties hereto in any number of counterparts, each of which when so executed and delivered shall be an original and all of which together shall constitute one Agreement.

 

D.                                    Rules of Construction.  As used herein, unless the context clearly indicates a contrary intent or unless otherwise specifically provided herein, the singular shall

 

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include the plural and the plural the singular, and the masculine, feminine or neuter gender shall include the other genders.

 

E.                                     Choice of Laws.  This Agreement shall be construed and interpreted in accordance with the internal laws of the State of Delaware, without regard for principles of conflicts of laws.

 

F.                                      Acknowledgments.  Each party to this Agreement acknowledges that it has executed this Agreement voluntarily, with a full knowledge and a complete understanding of the terms and effect of this Agreement and that it has been fully advised by competent counsel as to the nature and effect of the applicable terms and provisions hereof.

 

G.                                    Representations and Warranties.  Borrower represents and warrants that the representations and warranties set forth in the Loan Documents remain true and accurate in all material respects as of the date of this Agreement (provided that references to December 31, 2010 in Sections 4.4(c) and 4.4(d) shall refer to June 30, 2014).

 

H.                                   Remaining Force and Effect.  Except as specifically amended hereby, the Credit Agreement and other Loan Documents remain in full force and effect in accordance with their terms.

 

{remainder of page intentionally left blank}

 

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IN WITNESS WHEREOF, the undersigned have set their hands and seals or caused these presents to be executed by their proper corporate officers or authorized managers and sealed with their seal the day and year first above written.

 

	
 
    	
DOVER   DOWNS GAMING AND ENTERTAINMENT, INC., 
   a Delaware corporation 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Timothy R. Horne                       
    	
(SEAL)   
    
	
 
    	
 
    	
Name:   Timothy R. Horne 
    
	
 
    	
 
    	
Title:   Senior Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
DOVER   DOWNS, INC., 
    
	
 
    	
a   Delaware corporation 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Timothy R. Horne                       
    	
(SEAL)   
    
	
 
    	
 
    	
Name:   Timothy R. Horne 

Title:   Senior Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
DOVER   DOWNS GAMING AND 

MANAGEMENT   CORP.,  
    
	
 
    	
a   Delaware corporation 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Timothy R. Horne                       
    	
(SEAL)   
    
	
 
    	
 
    	
Name:   Timothy R. Horne 

Title:   Senior Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
CITIZENS   BANK, NATIONAL ASSOCIATION  
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Edward S.   Winslow                  
    	
(SEAL)   
    
	
 
    	
 
    	
Edward   S. Winslow 

Senior   Vice President
    

 

	
{signatures   continue on following page)
    

 

 

	
 
    	
PNC   BANK, NATIONAL ASSOCIATION  
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Joanne Hampson
    	
(SEAL)   
    
	
 
    	
 
    	
Name:   Joanne Hampson
    
	
 
    	
 
    	
Title:   Senior Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
WILMINGTON   SAVINGS FUND SOCIETY, FSB  
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   James A.   Walls                          
    	
(SEAL)   
    
	
 
    	
 
    	
Name:   James A. Walls 
    
	
 
    	
 
    	
Title:   Vice President — Business BankingEX-10.1

 Exhibit 10.1 

AMEDICA CORPORATION 

EXECUTIVE RETENTION PROGRAM AND AGREEMENT 

This Executive Retention Program and Agreement (the “Agreement”) is entered into as of the 8th day of August, 2014 (the “Effective Date”) by and between Amedica Corporation, a Delaware corporation (the “Company”) and
                    (the “Executive”). 

WHEREAS, the Executive and Company are parties to a Severance and Change in Control Agreement dated December 17, 2013 (the “CIC
Agreement”); 
 WHEREAS, the Company recognizes that the Executive’s service to the Company is very important to the future
success of the Company; 
 WHEREAS, the Company seeks to continue to retain the Executive as
                    , and provide an incentive and certain financial protections to the Executive; and 

WHEREAS the Board of Directors of the Company (the “Board”) has determined that it is in the best interests of the Company to enter
into this Agreement. 
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the Company and the Executive agree as follows: 
  

	 	1.	Retention Award and Equity Vesting. 

  

	 	a.	Retention Award. Upon execution of this Agreement, Executive will be entitled to the cash and equity retention awards set forth below. 

 

	 	b.	Outstanding RSU Award. Notwithstanding the terms set forth in the Amended and Restated RSU Agreement entered into between the Company and the Executive (the “RSU Agreement”) to the contrary, and
provided Executive has executed an amendment to the lock-up agreement (the “Lock-Up Agreement”) entered into between Executive and JMP Securities LLC in connection with the Company’s initial public offering pursuant to which the
Executive agrees to extend the sale and other restrictions set forth in the Lock-Up Agreement until the earlier of November 15, 2014 or the filing of the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30,
2014, Executive’s RSUs (as such term is defined in the RSU Agreement) shall become one hundred percent (100%) vested effective upon the Company’s termination of Executive’s employment without Cause (as defined in the CIC
Agreement) or the Executive’s resignation for any reason provided that the shares of Company common stock to be received by the Executive pursuant to the RSU Agreement will be issued upon the date of the expiration of the Lock-Up Agreement, as
amended, provided that in the event the window is closed for trading in securities of the Company on such date, then the securities shall not be issued until such date as the trading window is open but in no event later than March 15, 2015.

	 	c.	Vesting of Equity-Based Awards. Effective as of the consummation of a Change in Control or termination of Executive’s employment relationship by the Company without Cause (and other than due to his death or
Disability), all outstanding options, restricted stock unit awards, and other similar rights held by the Executive shall become one hundred percent (100%) vested. 

 

	 	2.	Company Bonus Plan. Executive shall be eligible to receive a cash bonus for 2014 performance with the target amount of such bonus equal to     percent (    %) of
Executive’s annual base salary in effect as of the Effective Date, provided that the actual amount of the bonus may be greater or less than such target amount. The amount of the bonus shall be determined based on the attainment of
objectives aligned with the key strategic initiatives to be set by management and the Compensation Committee. These objectives will be agreed to and approved by 8/22/14. The determination of whether a bonus shall be paid shall be made by the Board
or the Compensation Committee in its sole discretion, and shall be paid to Executive no later than March 15, 2015. Executive must be employed by Company on the date on which the bonus is paid in order to be eligible for, and to be deemed as
having earned, such bonus. 

  

	 	3.	Retention Payments. Executive shall be entitled to the following Retention Payments: 

  

	 	a.	The Company shall pay to the Executive an amount equal to 15% of Executive’s base salary as in effect on the Effective Date payable in the pay period immediately following the Effective Date (the “Initial
Retention Payment”); provided, however, should Executive terminate his employment with the Company voluntarily prior to December 31, 2014, other than by death or Disability or For Good Reason, the Executive shall repay to the Company the
net amount of the Initial Retention Payment no later than the tenth business day following the effective date of Executive’s termination. 

  

	 	b.	If Executive continues to be employed by the Company on June 30, 2015 and has not given notice of his resignation prior to such date, the Company will pay to the Executive an amount equal to 20% of Executive’s
base salary as in effect on such date in the pay period immediately following such date. 

  

	 	4.	On the later of the Effective Date and August 13, 2014, the Company shall grant Executive a stock option for                  shares
of common stock of the Company with following terms: 

  

	 	•	 	Option shall vest over a three year period as to 16.67% of the shares on every 6 month anniversary of the grant date as long Executive is employed by the Company on each vesting date and vesting shall be accelerated as
per the terms of this Agreement. 

  

	 	•	 	Option shall be granted pursuant to the Company’s Amended and Restated 2012 Equity Incentive Plan (the “Plan”) and form of stock option agreement previously approved by the Board. 

 

	 	•	 	Option shall have an exercise price equal to the Fair Market Value (as defined in the Plan) of a share of common stock as of the grant date. 

  
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	 	•	 	Option shall be to the maximum extent possible, an “incentive stock option” within the meaning of Section 422 of the Code. 

The stock option award is made in connection with the Company’s annual comprehensive stock option award program to Company employees,
executives and members of the Board of Directors. 
  

	 	5.	Governing Law. This Agreement and the rights and obligations of the parties hereunder shall be construed in accordance with and governed by the law of the State of Utah, without giving effect to the conflict of
law principles thereof. 

  

	 	6.	Withholding. The Company is authorized to withhold, or cause to be withheld, from any payment or benefit under the Agreement the full amount of any applicable withholding taxes. 

 

	 	7.	Tax Consequences. The Company does not guarantee the tax treatment or tax consequences associated with any payment or benefit arising under this Agreement. 

 

	 	8.	Acknowledgment. The Executive acknowledges that he has had the opportunity to discuss this matter with and obtain advice from his private attorney, has had sufficient time to, and has carefully read and fully
understands all the provisions of the Agreement, and is knowingly and voluntarily entering into the Agreement. 

  

	 	9.	Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 

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

 

			
	COMPANY:
	
	AMEDICA CORPORATION
		
	By:	 	  

	Name:	 	Eric Olson
	Title:	 	Chief Executive Officer
	
	EXECUTIVE:
	
	  

	
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