Document:

Exhibit
10.1

AGREEMENT

made
as of the 30th day of March in the year of 2007

(In words,
indicate day, month and year)

 

BETWEEN the Owner:

(Name and
address)

 

DOVER
DOWNS, INC.

1131
NORTH DUPONT HIGHWAY

DOVER,
DELAWARE 19901

 

and
the Construction Manager:

(Name and
address)

 

T. N.
WARD COMPANY

129
COULTER AVENUE, P.O. BOX 191

ARDMORE,
PA 19003

 

The
Project is:

(Name, address
and brief description)

 

PHASE
VI CASINO EXPANSION

1131
NORTH DUPONT HIGHWAY

DOVER,
DELAWARE 19901

 

The
Architect is:

(Name and
address)

 

THE
FRIEDMUTTER GROUP

8025
BLACK HORSE PIKE

WEST
ATLANTIC CITY, NJ 08232

 

The
Owner and Construction Manager agree as set forth below:

 

TABLE OF CONTENTS

 

ARTICLE 1
  GENERAL PROVISIONS

§ 1.1
Relationship of the Parties

§ 1.2
General Conditions

 

ARTICLE 2
  CONSTRUCTION MANAGER’S RESPONSIBILITIES

§ 2.1
Preconstruction Phase

§ 2.2
Guaranteed Maximum Price Proposal and Contract Time

§ 2.3
Construction Phase

§ 2.4
Professional Services

§ 2.5
Hazardous Materials

 

ARTICLE 3
  OWNER’S RESPONSIBILITIES

§ 3.1
Information and Services

§ 3.2
Owner’s Designated Representative

§ 3.3
Architect

§ 3.4
Legal Requirements

 

ARTICLE 4
  COMPENSATION AND PAYMENTS FOR PRECONSTRUCTION PHASE SERVICES

§ 4.1
Compensation

§ 4.2
Payments

 

ARTICLE 5
  COMPENSATION FOR CONSTRUCTION PHASE SERVICES

§ 5.1
Compensation

§ 5.2
Guaranteed Maximum Price

§ 5.3
Changes in the Work

 

ARTICLE 6
  COST OF THE WORK FOR CONSTRUCTION PHASE

§ 6.1
Costs to Be Reimbursed

§ 6.2
Costs Not to Be Reimbursed

§ 6.3
Discounts, Rebates and Refunds

§ 6.4
Accounting Records

 

ARTICLE 7
  CONSTRUCTION PHASE

§ 7.1
Progress Payments

§ 7.2  Final Payment

 

ARTICLE 8
  INSURANCE AND BONDS

§ 8.1
Insurance Required of the Construction Manager

§ 8.2
Insurance Required of the Owner

§ 8.3
Performance Bond and Payment Bond

 

ARTICLE 9
  MISCELLANEOUS PROVISIONS

§ 9.1
Dispute Resolution

§ 9.2
Other Provisions

 

ARTICLE 10
  TERMINATION OR SUSPENSION

§ 10.1
Termination Prior to Establishing Guaranteed Maximum Price

§ 10.2
Termination Subsequent to Establishing Guaranteed Maximum Price

§ 10.3
Suspension

 

ARTICLE 11
  OTHER CONDITIONS AND SERVICES

 

ARTICLE 1   GENERAL PROVISIONS

§ 1.1
RELATIONSHIP OF PARTIES

The Construction Manager
accepts the relationship of trust and confidence established with the Owner by
this Agreement, and covenants with the Owner to furnish the Construction
Manager’s reasonable skill and judgment and to cooperate with the Architect in
furthering the interests of the Owner. The Construction Manager shall furnish
construction administration and management services and use the Construction
Manager’s best efforts to perform the Project in an expeditious and economical
manner consistent with the interests of the Owner. The Owner shall endeavor to
promote harmony and cooperation among the Owner, Architect, Construction
Manager and other persons or entities employed by the Owner for the Project.

§ 1.2
GENERAL CONDITIONS

For the Construction
Phase, the General Conditions of the contract shall be the AIA® Document A201TM—1997,
General Conditions of the Contract for Construction, amended and attached. For
the Preconstruction Phase, or in the event that the Preconstruction and
Construction Phases proceed concurrently, A201TM—1997 shall apply to the
Preconstruction Phase only as specifically provided in this Agreement. The term
“Contractor” as used in A201TM—1997 shall mean the Construction Manager.

ARTICLE 2   CONSTRUCTION MANAGER’S RESPONSIBILITIES

The Construction Manager
shall perform the services described in this Article. The services to be
provided under Sections 2.1 and 2.2 constitute the Preconstruction Phase
services. If the Owner and Construction Manager agree, after consultation with
the Architect, the Construction Phase may commence before the Preconstruction Phase
is completed, in which case both phases will proceed concurrently.

§ 2.1
PRECONSTRUCTION PHASE  (INTENTIONALLY DELETED)

§ 2.2
GUARANTEED MAXIMUM PRICE PROPOSAL AND CONTRACT TIME

§ 2.2.1
When the Drawings and Specifications are sufficiently complete, the
Construction Manager shall propose a Guaranteed Maximum Price, which shall be
the sum of the estimated Cost of the Work and the Construction Manager’s Fee.

§ 2.2.2
As the Drawings and Specifications may not be finished at the time the
Guaranteed Maximum Price proposal is prepared, the Construction Manager shall
provide in the Guaranteed Maximum Price for further development of the Drawings
and Specifications by the Architect that is consistent with the Contract
Documents and reasonably inferable therefrom as necessary to produce the
results intended by the Contract Documents.. Such further development does not
include such things as changes in scope, systems, kinds and quality of
materials, finishes or equipment, all of which, if required, shall be incorporated
by Change Order.  The Construction
Manager recognizes that the Guaranteed Maximum Price has been based on design
drawings and specifications which have not been released for construction and
accepts the responsibility to perform the entire work described in the released
for construction drawings and specifications for the Guaranteed Maximum Price
without regard to the fact that said work may have been modified or expanded
consistent with the original design intent.

§ 2.2.3
The estimated Cost of the Work shall include the Construction Manager’s
contingency, a sum established by the Construction Manager for the Construction
Manager’s exclusive use to cover costs arising under Section 2.2.2 and other
costs which are properly reimbursable as Cost of the Work but not the basis for
a Change Order.

§ 2.2.4
BASIS OF GUARANTEED MAXIMUM PRICE

The Construction Manager
shall include with the Guaranteed Maximum Price proposal a written statement of
its basis, which shall include:

.1                     A list of the
Drawings and Specifications, including all addenda thereto and the Conditions
of the Contract, which were used in preparation of the Guaranteed Maximum Price
proposal.

.2                     A list of
allowances and a statement of their basis.

.3                     A list of the
clarifications and assumptions made by the Construction Manager in the
preparation of the Guaranteed Maximum Price proposal to supplement the
information contained in the Drawings and Specifications.

.4                     The proposed
Guaranteed Maximum Price, including a statement of the estimated cost organized
by trade categories, allowances, contingency, and other items and the Fee that
comprise the Guaranteed Maximum Price.

.5                     The Date of
Substantial Completion upon which the proposed Guaranteed Maximum Price is
based, and a schedule of the Construction Documents issuance dates upon which
the date of Substantial Completion is based.

§ 2.2.5
The Construction Manager shall meet with the Owner and Architect to review the
Guaranteed Maximum Price proposal and the written statement of its basis. In
the event that the Owner or Architect discover any inconsistencies or
inaccuracies in the information presented, they shall promptly notify the
Construction Manager, who shall make appropriate adjustments to the Guaranteed
Maximum Price proposal, its basis, or both.

§ 2.2.6
Unless the Owner accepts the Guaranteed Maximum Price proposal in writing on or
before the date specified in the proposal for such acceptance and so notifies
the Construction Manager, the Guaranteed Maximum Price proposal shall not be
effective without written acceptance by the Construction Manager.

§ 2.2.7
Prior to the Owner’s acceptance of the Construction Manager’s Guaranteed
Maximum Price proposal and issuance of a Notice to Proceed, the Construction
Manager shall not incur any cost to be reimbursed as part of the Cost of the
Work, except as the Owner may specifically authorize in writing.

§ 2.2.8
Upon acceptance by the Owner of the Guaranteed Maximum Price proposal, the
Guaranteed Maximum Price and its basis shall be set forth in Amendment No. 1.
The Guaranteed Maximum Price shall be subject to additions and deductions by a
change in the Work as provided in the Contract Documents, and the Date of
Substantial Completion shall be subject to adjustment as provided in the
Contract Documents.

§ 2.2.9
The Owner shall authorize and cause the Architect to revise the Drawings and
Specifications to the extent necessary to reflect the agreed-upon assumptions
and clarifications contained in Amendment No. 1. Such revised Drawings and
Specifications shall be furnished to the Construction Manager in accordance
with schedules agreed to by the Owner, Architect and Construction Manager. The
Construction Manager shall promptly notify the Architect and Owner if such
revised Drawings and Specifications are inconsistent with the agreed-upon
assumptions and clarifications.

§ 2.2.10
The Guaranteed Maximum Price shall include in the Cost of the Work only those
taxes which are enacted at the time the Guaranteed Maximum Price is
established.

§ 2.3
CONSTRUCTION PHASE

§ 2.3.1
GENERAL

§ 2.3.1.1
The Construction Phase shall commence on the earlier of:

(1)                 the Owner’s
acceptance of the Construction Manager’s Guaranteed Maximum Price proposal and
issuance of a Notice to Proceed, or issuance of a building permit which ever is
later.

(2)                 the Owner’s first
authorization to the Construction Manager to:

(a) award a
subcontract, or

(b) undertake
construction Work with the Construction Manager’s own forces, or

(c) issue a
purchase order for materials or equipment required for the Work.

§ 2.3.2
ADMINISTRATION

§ 2.3.2.1
Those portions of the Work that the Construction Manager does not customarily
perform with the Construction Manager’s own personnel shall be performed under
subcontracts or by other appropriate agreements with the Construction Manager.
The Construction Manager shall obtain bids from Subcontractors and from
suppliers of materials or equipment fabricated to a special design for the Work
from the list previously reviewed and, after analyzing such bids, shall deliver
such bids to the Owner and Architect. The Owner will then determine, with the
advice of the Construction Manager and subject to the reasonable objection of
the Architect, which bids will be accepted. The Owner may designate specific
persons or entities from whom the Construction Manager shall obtain bids;
however, if the Guaranteed Maximum Price has been established, the Owner may
not prohibit the Construction Manager from obtaining bids from other qualified
bidders. The Construction Manager shall not be required to contract with anyone
to whom the Construction Manager has reasonable objection.

§ 2.3.2.2
If the Guaranteed Maximum Price has been established and a specific bidder
among those whose bids are delivered by the Construction Manager to the Owner
and Architect (1) is recommended to the Owner by the Construction Manager; (2)
is qualified to perform that portion of the Work; and (3) has submitted a bid
which conforms to the requirements of the Contract Documents without
reservations or exceptions, but the Owner requires that another bid be
accepted, then the Construction Manager may require that a change in the Work
be issued to adjust the Contract Time and the Guaranteed Maximum Price by the
difference between the bid of the person or entity recommended to the Owner by
the Construction Manager and the amount of the subcontract or other agreement
actually signed with the person or entity designated by the Owner.

 2
 

§ 2.3.2.3
Subcontracts and agreements with suppliers furnishing materials or equipment
fabricated to a special design shall conform to the payment provisions of
Sections 7.1.8 and 7.1.9 and shall not be awarded on the basis of cost plus a
fee without the prior consent of the Owner.

§ 2.3.2.4
The Construction Manager shall schedule and conduct meetings at which the
Owner, Architect, Construction Manager and appropriate Subcontractors can
discuss the status of the Work. The Construction Manager shall prepare and
promptly distribute meeting minutes.

§ 2.3.2.5
Promptly after the Owner’s acceptance of the Guaranteed Maximum Price proposal,
the Construction Manager shall prepare a schedule in accordance with Section
3.10 of A201TM—1997, including the Owner’s occupancy requirements.

§ 2.3.2.6
The Construction Manager shall provide monthly written reports to the Owner and
Architect on the progress of the entire Work. The Construction Manager shall
maintain a daily log containing a record of weather, Subcontractors working on
the site, number of workers, Work accomplished, problems encountered and other
similar relevant data as the Owner may reasonably require. The log shall be
available to the Owner and Architect.

§ 2.3.2.7
The Construction Manager shall develop a system of cost control for the Work,
including regular monitoring of actual costs for activities in progress and estimates
for uncompleted tasks and proposed changes. The Construction Manager shall
identify variances between actual and estimated costs and report the variances
to the Owner and Architect at regular intervals.

§ 2.4
PROFESSIONAL SERVICES

Section 3.12.10 of A201TM—1997
shall apply to both the Preconstruction and Construction Phases.

§ 2.5
HAZARDOUS MATERIALS

Section 10.3 of A201TM—1997
shall apply to both the Preconstruction and Construction Phases.

ARTICLE 3   OWNER’S RESPONSIBILITIES

§ 3.1
INFORMATION AND SERVICES

§ 3.1.1
The Owner shall provide full information in a timely manner regarding the
requirements of the Project, including a program which sets forth the Owner’s
objectives, constraints and criteria, including space requirements and
relationships, flexibility and expandability requirements, special equipment
and systems, and site requirements.

§ 3.1.2
The Owner shall, at the written request of the Construction Manager prior to
commencement of the Construction Phase and thereafter, furnish to the Construction
Manager reasonable evidence that financial arrangements have been made to
fulfill the Owner’s obligations under the Contract. Furnishing of such evidence
shall be a condition precedent to commencement or continuation of the Work.
After such evidence has been furnished, the Owner shall not materially vary
such financial arrangements without prior notice to the Construction Manager.

§ 3.1.3
The Owner shall establish and update an overall budget for the Project, based
on consultation with the Construction Manager and Architect, which shall
include contingencies for changes in the Work and other costs which are the
responsibility of the Owner.

§ 3.1.4
STRUCTURAL AND ENVIRONMENTAL TESTS, SURVEYS AND REPORTS

In the Preconstruction
Phase, the Owner shall furnish the following with reasonable promptness and at
the Owner’s expense. Except to the extent that the Construction Manager knows
of any inaccuracy, the Construction Manager shall be entitled to rely upon the
accuracy of any such information, reports, surveys, drawings and tests
described in Sections 3.1.4.1 through 3.1.4.4 but shall exercise customary
precautions relating to the performance of the Work.

§ 3.1.4.1
Reports, surveys, drawings and tests concerning the conditions of the site
which are required by law.

§ 3.1.4.2
Surveys describing physical characteristics, legal limitations and utility
locations for the site of the Project, and a written legal description of the
site. The surveys and legal information shall include, as applicable, grades
and lines of streets, alleys, pavements and adjoining property and structures;
adjacent drainage; rights-of-way, restrictions, easements, encroachments,
zoning, deed restrictions, boundaries and contours of the site; locations,
dimensions and necessary data pertaining to existing buildings, other
improvements and trees; and information concerning available utility services
and lines, both public and private, above and below grade, including inverts
and depths. All information on the survey shall be referenced to a project
benchmark.

 3
 

§ 3.1.4.3
The services of a geotechnical engineer when such services are requested by the
Construction Manager. Such services may include but are not limited to test
borings, test pits, determinations of soil bearing values, percolation tests,
evaluations of hazardous materials, ground corrosion and resistivity tests,
including necessary operations for anticipating subsoil conditions, with
reports and appropriate professional recommendations.

§ 3.1.4.4
Structural, mechanical, chemical, air and water pollution tests, tests for
hazardous materials, and other laboratory and environmental tests, inspections
and reports which are required by law.

§ 3.1.4.5
The services of other consultants when such services are reasonably required by
the scope of the Project and are requested by the Construction Manager.

§ 3.2
OWNER’S DESIGNATED REPRESENTATIVE

The Owner shall designate
in writing a representative who shall have express authority to bind the Owner
with respect to all matters requiring the Owner’s approval or authorization.
This representative shall have the authority to make decisions on behalf of the
Owner concerning estimates and schedules, construction budgets, and changes in
the Work, and shall render such decisions promptly and furnish information
expeditiously, so as to avoid unreasonable delay in the services or Work of the
Construction Manager. Except as otherwise provided in Section 4.2.1 of A201TM—1997,
the Architect does not have such authority.

§ 3.3
ARCHITECT

The Owner shall retain an
Architect to provide Basic Services, including normal structural, mechanical
and electrical engineering services, other than cost estimating services,
described in the edition of AIA® Document B151TM—1997,  Abbreviated
Standard Form of Agreement Between Owner and Architect current as of
the date of this Agreement. The Owner shall authorize and cause the Architect
to provide those Additional Services described in B151TM—1997, requested by the Construction Manager which must
necessarily be provided by the Architect for the Preconstruction and
Construction Phases of the Work. Such services shall be provided in accordance
with time schedules agreed to by the Owner, Architect and Construction Manager.
Upon request of the Construction Manager, the Owner shall furnish to the
Construction Manager a copy of the Owner’s Agreement with the Architect, from
which compensation provisions may be deleted.

§ 3.4
LEGAL REQUIREMENTS

The Owner shall determine
and advise the Architect and Construction Manager of any special legal
requirements relating specifically to the Project which differ from those
generally applicable to construction in the jurisdiction of the Project. The
Owner shall furnish such legal services as are necessary to provide the
information and services required under Section 3.1.

ARTICLE 4   COMPENSATION AND PAYMENTS FOR PRECONSTRUCTION PHASE SERVICES

The Owner shall
compensate and make payments to the Construction Manager for Preconstruction
Phase services as follows:

§ 4.1
COMPENSATION (INTENTIONALLY DELETED)

ARTICLE 5   COMPENSATION FOR CONSTRUCTION PHASE SERVICES

§ 5.1
COMPENSATION

§ 5.1.1
For the Construction Manager’s performance of the Work as described in Section
2.3, the Owner shall pay the Construction Manager in current funds the Contract
Sum consisting of the Cost of the Work as defined in Article 7 and the
Construction Manager’s Fee determined as follows:

The Owner shall compensate the Construction Manager
for Construction Phase services as follows:

Base Fee — 3.25% of the GMP

Change Order — 10% overhead, plus 3.25% fee. (the
3.25% fee to apply only to the extent that the Cost of the Work exceeds 110% of
GMP).

No reduction in fee for
deductive changes.

(State
a lump sum, percentage of actual Cost of the Work or other provision for
determining the Construction Manager’s Fee, and explain how the Construction
Manager’s Fee is to be adjusted for changes in the Work.)

 4
 

§ 5.2
GUARANTEED MAXIMUM PRICE

§ 5.2.1
The sum of the Cost of the Work and the Construction Manager’s Fee are
guaranteed by the Construction Manager not to exceed the amount provided in
Amendment No. 1, subject to additions and deductions by changes in the Work as
provided in the Contract Documents. Such maximum sum as adjusted by approved
changes in the Work is referred to in the Contract Documents as the Guaranteed
Maximum Price. Costs which would cause the Guaranteed Maximum Price to be
exceeded shall be paid by the Construction Manager without reimbursement by the
Owner.

25% of the savings will
be paid to Construction Manager at the time of Final Payment, excluding savings
attributable to Construction Change Directives or savings due to paying less
for insurance premiums than as set forth in the GMP Proposal.  In no event shall Construction Manager be
paid in excess of $450,000 for its share of Savings. (“Savings” is understood
to mean the difference between the GMP (reduced by the contingency, and the
Construction Manager Fee) and the cost of the Work.)

(Insert
specific provisions if the Construction Manager is to participate in any
savings.)

The work shall be
substantially completed October 4, 2008 (the “Target Completion Date”).  If the Construction Manager achieves
Substantial Completion of the Work under the Contract after the Target
Completion Date, the Owner shall be entitled to retain or recover from the
Construction Manager, as liquidated damages and not as a penalty, the sum of
Two Thousand Dollars ($2,000) per day commencing on the day following the
Target Completion Date and continuing until the actual date of Substantial
Completion.  The portion of the Work
required to permit the grand opening of the new casino floor (“Grand Opening
Work”) shall be completed August 4, 2008 (the “Grand Opening Target Completion
Date”.) For the purposes of this Section, Grand Opening Work shall be all Work
other than the demolition and renovation of the G Cage and the demolition of
the Terrace Slots and their conversion to restrooms.  If the Construction manager achieves
Substantial Completion of the Grand Opening Work under the Contract after the
Grand Opening Target Completion Date, the Owner shall be entitled to retain or
recover from the Construction Manager, as liquidated damages and not as a
penalty, the sum of Five Thousand Dollars ($5,000) per day commencing on the
day following the Grand Opening Target Completion Date and continuing until the
actual date of Substantial Completion of the Grand Opening Work.

Liquidated damages
shall not exceed $5,000 per day (i.e. shall not be cumulative)

The Target
Completion Date and the Grand Opening Target Completion Date assume that
fencing and construction are permitted to begin June 4, 2007.  Accordingly, if this June 4, 2007 date is
delayed due to permitting or licensing issues or due to the fault of Owner,
then the Target Completion Date and Grand Opening Target Completion Date shall
each be extended by a number of days equal to the number of days of the delay.

§ 5.3
CHANGES IN THE WORK

§ 5.3.1
Adjustments to the Guaranteed Maximum Price on account of changes in the Work
subsequent to the execution of Amendment No. 1 may be determined by any of the
methods listed in Section 7.3.3 of A201TM—1997.

§ 5.3.2
In calculating adjustments to subcontracts (except those awarded with the Owner’s
prior consent on the basis of cost plus a fee), the terms “cost” and “fee” as
used in Section 7.3.3.3 of A201TM—1997 and the terms “costs” and “a reasonable
allowance for overhead and profit” as used in Section 7.3.6 of A201TM—1997 shall
have the meanings assigned to them in that document and shall not be modified
by this Article 5. Adjustments to subcontracts awarded with the Owner’s prior
consent on the basis of cost plus a fee shall be calculated in accordance with
the terms of those subcontracts.   Unless
specified in the GMP Proposal, no subcontracts shall be on a cost plus a fee
basis.

§ 5.3.3
In calculating adjustments to the Contract, the terms “cost” and “costs” as
used in the above-referenced provisions of A201TM—1997 shall mean the Cost of
the Work as defined in Article 6 of this Agreement, and the term “and a
reasonable allowance for profit” shall mean the Construction Manager’s Fee as
defined in Section 5.1.1 of this Agreement.

§ 5.3.4
If no specific provision is made in Section 5.1.1 for adjustment of the
Construction Manager’s Fee in the case of changes in the Work, or if the extent
of such changes is such, in the aggregate, that application of the adjustment
provisions of Section 5.1.1 will cause substantial inequity to the Owner or
Construction Manager, the Construction Manager’s Fee shall be equitably
adjusted on the basis of the Fee established for the original Work.

 5
 

ARTICLE 6   COST OF THE WORK FOR CONSTRUCTION PHASE

§ 6.1
COSTS TO BE REIMBURSED

§ 6.1.1
The term “Cost of the Work” shall mean costs necessarily incurred by the
Construction Manager in the proper performance of the Work. Such costs shall be
at rates not higher than those customarily paid at the place of the Project
except with prior consent of the Owner. The Cost of the Work shall include only
the items set forth in this Article 6.

§ 6.1.2
LABOR COSTS

.1                     Wages of
construction workers directly employed by the Construction Manager to perform
the construction of the Work at the site or, with the Owner’s agreement, at
off-site workshops.

.2                     Wages or
salaries of the Construction Manager’s supervisory and administrative personnel
when stationed at the site with the Owner’s agreement, and all Project Management
and Purchasing Personnel regardless of location.

	
  Classification

  	
   

  	
  Name

  
	
   

  	
   

  	
   

  

 

(If
it is intended that the wages or salaries of certain personnel stationed at the
Construction Manager’s principal office or offices other than the site office
shall be included in the Cost of the Work, such personnel shall be identified
below.)

.3                     Wages and
salaries of the Construction Manager’s supervisory or administrative personnel
engaged, at factories, workshops or on the road, in expediting the production
or transportation of materials or equipment required for the Work, but only for
that portion of their time required for the Work.

.4                     Costs paid or
incurred by the Construction Manager for taxes, insurance, contributions,
assessments and benefits required by law or collective bargaining agreements,
and, for personnel not covered by such agreements, customary benefits such as
sick leave, medical and health benefits, holidays, vacations and pensions,
provided that such costs are based on wages and salaries included in the Cost
of the Work under Sections 6.1.2.1 through 6.1.2.3.

§ 6.1.3
SUBCONTRACT COSTS

Payments made by the
Construction Manager to Subcontractors in accordance with the requirements of
the subcontracts.

§ 6.1.4
COSTS OF MATERIALS AND EQUIPMENT INCORPORATED IN THE COMPLETED CONSTRUCTION

.1                     Costs,
including transportation, of materials and equipment incorporated or to be
incorporated in the completed construction.

.2                     Costs of
materials described in the preceding Section 6.1.4.1 in excess of those
actually installed but required to provide reasonable allowance for waste and
for spoilage. Unused excess materials, if any, shall be handed over to the
Owner at the completion of the Work or, at the Owner’s option, shall be sold by
the Construction Manager; amounts realized, if any, from such sales shall be
credited to the Owner as a deduction from the Cost of the Work.

§ 6.1.5
COSTS OF OTHER MATERIALS AND EQUIPMENT, TEMPORARY FACILITIES AND
RELATED ITEMS

.1                     Costs,
including transportation, installation, maintenance, dismantling and removal of
materials, supplies, temporary facilities, machinery, equipment, and hand tools
not customarily owned by the construction workers, which are provided by the
Construction Manager at the site and fully consumed in the performance of the
Work; and cost less salvage value on such items if not fully consumed, whether
sold to others or retained by the Construction Manager. Cost for items
previously used by the Construction Manager shall mean fair market value.

.2                     Rental
charges for temporary facilities, machinery, equipment and hand tools not
customarily owned by the construction workers, which are provided by the
Construction Manager at the site, whether rented from the Construction Manager
or others, and costs of transportation, installation, minor repairs and
replacements, dismantling and removal thereof. Rates and quantities of
equipment rented shall be subject to the Owner’s prior approval.

.3                     Costs of
removal of debris from the site.

.4                     Reproduction
costs, costs of telegrams, facsimile transmissions and long-distance telephone
calls, postage and express delivery charges, telephone at the site and
reasonable petty cash expenses of the site office.

.5                     That portion
of the reasonable travel and subsistence expenses of the Construction Manager’s
personnel incurred while traveling in discharge of duties connected with the
Work.

 6
 

§ 6.1.6
MISCELLANEOUS COSTS

.1                     That portion directly attributable
to this Contract of premiums for insurance and bonds.

(If charges for
self-insurance are to be included, specify the basis of reimbursement.)

.007 x GMP = Premium for General & Excess
Liability.

.2                     Sales, use or
similar taxes imposed by a governmental authority which are related to the Work
and for which the Construction Manager is liable.

.3                     Fees and
assessments for the building permit and for other permits, licenses and
inspections for which the Construction Manager is required by the Contract
Documents to pay.

.4                     Fees of
testing laboratories for tests required by the Contract Documents, except those
related to nonconforming Work other than that for which payment is permitted by
Section 6.1.8.2.

.5                     Royalties and
license fees paid for the use of a particular design, process or product
required by the Contract Documents; the cost of defending suits or claims for
infringement of patent or other intellectual property rights arising from such
requirement by the Contract Documents; payments made in accordance with legal
judgments against the Construction Manager resulting from such suits or claims
and payments of settlements made with the Owner’s consent; provided, however,
that such costs of legal defenses, judgment and settlements shall not be
included in the calculation of the Construction Manager’s Fee or the Guaranteed
Maximum Price and provided that such royalties, fees and costs are not excluded
by the last sentence of Section 3.17.1 of A201TM—1997 or other provisions of the
Contract Documents.

.6                     Data
processing costs related to the Work.

.7                     Deposits lost
for causes other than the Construction Manager’s negligence or failure to
fulfill a specific responsibility to the Owner set forth in this Agreement.

.8                     Legal,
mediation and arbitration costs, other than those arising from disputes between
the Owner and Construction Manager, reasonably incurred by the Construction
Manager in the performance of the Work and with the Owner’s written permission,
which permission shall not be unreasonably withheld.

.9                     Expenses
incurred in accordance with Construction Manager’s standard personnel policy
for relocation and temporary living allowances of personnel required for the
Work, in case it is necessary to relocate such personnel from distant
locations.

.10              For all trade work performed by CM cost plus 15% overhead.

§ 6.1.7
OTHER COSTS

.1                     Other costs
incurred in the performance of the Work if and to the extent approved in
advance in writing by the Owner.

§ 6.1.8
EMERGENCIES AND REPAIRS TO DAMAGED OR NONCONFORMING WORK

The Cost of the Work
shall also include costs described in Section 6.1.1which are incurred by the
Construction Manager:

.1                     In taking
action to prevent threatened damage, injury or loss in case of an emergency
affecting the safety of persons and property, as provided in Section 10.6 of
A201TM—1997.

.2                     In repairing
or correcting damaged or nonconforming Work executed by the Construction
Manager or the Construction Manager’s Subcontractors or suppliers, provided
that such damaged or nonconforming Work was not caused by the negligence or
failure to fulfill a specific responsibility to the Owner set forth in this
agreement of the Construction Manager or the Construction Manager’s foremen,
engineers or superintendents, or other supervisory, administrative or
managerial personnel of the Construction Manager, or the failure of the
Construction Manager’s personnel to supervise adequately the Work of the
Subcontractors or suppliers, and only to the extent that the cost of repair or
correction is not recoverable by the Construction Manager from insurance,
Subcontractors or suppliers.

§ 6.1.9
The costs described in Sections 6.1.1 through 6.1.8 shall be included in the
Cost of the Work notwithstanding any provision of AIA or A201TM—1997 other
Conditions of the Contract which may require the Construction Manager to pay
such costs, unless such costs are excluded by the provisions of Section 6.2.

 7
 

§ 6.2
COSTS NOT TO BE REIMBURSED

§ 6.2.1
The Cost of the Work shall not include:

.1                     Salaries and
other compensation of the Construction Manager’s personnel stationed at the
Construction Manager’s principal office or offices other than the site office,
except as specifically provided in Sections 6.1.2.2 and 6.1.2.3.  Unless otherwise agreed to between Owner and
Construction Manager, the only personnel to be charged that are not on-site shall
be: Project Management for Dover Downs Casino and personnel handling
estimating, purchasing and scheduling.

.2                     Expenses of
the Construction Manager’s principal office and offices other than the site
office, except as specifically provided in Section 6.1.

.3                     Overhead and
general expenses, except as may be expressly included in Section 6.1.

.4                     The
Construction Manager’s capital expenses, including interest on the Construction
Manager’s capital employed for the Work.

.5                     Rental costs
of machinery and equipment, except as specifically provided in Section 6.1.5.2.

.6                     Except as
provided in Section 6.1.8.2, costs due to the negligence of the Construction
Manager or to the failure of the Construction Manger to fulfill a specific
responsibility to the Owner set forth in this Agreement.

.7                     Costs
incurred in the performance of Preconstruction Phase Services.

.8                     Except as
provided in Section 6.1.7.1, any cost not specifically and expressly               described in Section 6.1.

.9                     Costs which
would cause the Guaranteed Maximum Price to be exceeded.

§ 6.3
DISCOUNTS, REBATES AND REFUNDS

§ 6.3.1
Cash discounts obtained on payments made by the Construction Manager shall
accrue to the Owner if (1) before making the payment, the Construction Manager
included them in an Application for Payment and received payment therefor from
the Owner, or (2) the Owner has deposited funds with the Construction Manager
with which to make payments; otherwise, cash discounts shall accrue to the
Construction Manager. Trade discounts, rebates, refunds and amounts received
from sales of surplus materials and equipment shall accrue to the Owner, and
the Construction Manager shall make provisions so that they can be secured.

§ 6.3.2
Amounts which accrue to the Owner in accordance with the provisions of Section
6.3.1 shall be credited to the Owner as a deduction from the Cost of the Work.

§ 6.4
ACCOUNTING RECORDS

§ 6.4.1
The Construction Manager shall keep full and detailed accounts and exercise
such controls as may be necessary for proper financial management under this
Contract; the accounting and control systems shall be satisfactory to the
Owner. The Owner and the Owner’s accountants shall be afforded access to the
Construction Manager’s records, books, correspondence, instructions, drawings,
receipts, subcontracts, purchase orders, vouchers, memoranda and other data
relating to this Project, and the Construction Manager shall preserve these for
a period of three years after final payment, or for such longer period as may
be required by law.

ARTICLE 7   CONSTRUCTION PHASE

§ 7.1
PROGRESS PAYMENTS

§ 7.1.1
Based upon Applications for Payment submitted to the Architect by the
Construction Manager and Certificates for Payment issued by the Architect, the
Owner shall make progress payments on account of the Contract Sum to the
Construction Manager as provided below and elsewhere in the Contract Documents.

§ 7.1.2
The period covered by each Application for Payment shall be one calendar month
ending on the last day of the month, or as follows:

§ 7.1.3
Provided an Application for Payment is received by the Architect not later than
the 10th day of a month, the Owner shall make payment to the Construction
Manager not later than the 25th day of the same month. If an Application for
Payment is received by the Architect after the application date fixed above,
payment shall be made by the Owner not later than  twenty-five (25) days after the Architect
receives the Application for Payment.

§7.1.4 With
each Application for Payment, the Construction Manager shall submit computer
generated progress reports and any other evidence required by the Owner or
Architect to demonstrate that cash disbursements already made by the
Construction Manager on account of the Cost of the Work equal or exceed (1)
progress payments already  received by the
Construction Manager; less (2) that portion of those payments attributable to
the Construction Manager’s Fee; plus (3) payrolls for the period covered by the
present Application for Payment.

 8
 

In addition to other
required items, each Application for Payment shall be accompanied by the following,
all in form and substance satisfactory to the Owner and in compliance with
applicable Delaware statutes:

1.               A current Sworn
Statement from the Construction Manager setting forth all subcontractors and
materialmen with whom the Construction Manager has subcontracted, the amount of
such subcontract, the amount requested for any subcontractor or materialman in
the application for payment and the amount to be paid to the Construction
Manager from such progress payment, together with a current, duly executed
waiver of mechanics’ and materialmen’s liens from the Construction Manager
establishing receipt of payment or satisfaction of the payment requested by the
Construction Manager in the current Application for Payment;

2.               Commencing with the
second (2nd) Application
for Payment submitted by the Construction Manager, duly executed so-called “after
the fact” waivers of mechanics’ and materialmen’s and materialmen’s liens form
all subcontractors, materialmen and, when appropriate, from lower tier
subcontractors, establishing receipt of payment or satisfaction of payment of
all amounts requested on behalf of such entities and disbursed prior to
submittal by the Construction Manager of the current Application for Payment,
plus sworn statements from all subcontractors, materialmen and, where
appropriate, from lower tier subcontractors, covering all amounts described
above.

3.               Such other
information, documentation and materials as the Owner or the Architect may
require.

§ 7.1.5
Each Application for Payment shall be based upon the most recent schedule of
values submitted by the Construction Manager in accordance with the Contract
Documents. The schedule of values shall allocate the entire Guaranteed Maximum
Price among the various portions of the Work, except that the Construction
Manager’s Fee shall be shown as a single separate item. The schedule of values
shall be prepared in such form and supported by such data to substantiate its
accuracy as the Architect may require. This schedule, unless objected to by the
Architect, shall be used as a basis for reviewing the Construction Manager’s
Applications for Payment.

§ 7.1.6
Applications for Payment shall show the percentage completion of each portion
of the Work as of the end of the period covered by the Application for Payment.
The percentage completion shall be the lesser of (1) the percentage of that
portion of the Work which has actually been completed or (2) the percentage
obtained by dividing (a) the expense which has actually been incurred by the
Construction Manager on account of that portion of the Work for which the
Construction Manager has made or intends to make actual payment prior to the
next Application for Payment by (b) the share of the Guaranteed Maximum Price
allocated to that portion of the Work in the schedule of values.

§ 7.1.7
Subject to other provisions of the Contract Documents, the amount of each
progress payment shall be computed as follows:

.1                     Take that
portion of the Guaranteed Maximum Price properly allocable to completed Work as
determined by multiplying the percentage completion of each portion of the Work
by the share of the Guaranteed Maximum Price allocated to that portion of the
Work in the schedule of values. Pending final determination of cost to the
Owner of changes in the Work, amounts not in dispute may be included as
provided in Section 7.3.8 of A201TM—1997, even though the Guaranteed Maximum
Price has not yet been adjusted by Change Order.

.2                     Add that
portion of the Guaranteed Maximum Price properly allocable to materials and
equipment delivered and suitably stored at the site for subsequent
incorporation in the Work or, if approved in advance by the Owner, suitably
stored off the site at a location agreed upon in writing.

.3                     Add the
Construction Manager’s Fee, less retainage of ten (10%). The Construction
Manager’s Fee shall be computed upon the Cost of the Work described in the two
preceding Sections at the rate stated in Section 5.1.1 or, if the Construction
Manager’s Fee is stated as a fixed sum in that Section, shall be an amount which
bears the same ratio to that fixed-sum Fee as the Cost of the Work in the two
preceding Sections bears to a reasonable estimate of the probable Cost of the
Work upon its completion.

.4                     Subtract the
aggregate of previous payments made by the Owner.

.5                     Subtract the
shortfall, if any, indicated by the Construction Manager in the documentation
required by Section 7.1.4 to substantiate prior Applications for Payment, or
resulting from errors subsequently discovered by the Owner’s accountants in
such documentation.

.6                     Subtract
amounts, if any, for which the Architect has withheld or nullified a
Certificate for Payment as provided in Section 9.5 of A201TM—1997.

§ 7.1.8
Except with the Owner’s prior approval, payments to Subcontractors shall be
subject to retention of not less than ten (10%). The Owner and the Construction
Manager shall agree upon a mutually acceptable procedure for review and
approval of payments and retention for subcontracts.

Once the project is 50%
complete, provided the project is on schedule, no additional retention will be
withheld.

 9
 

§ 7.1.9
Except with the Owner’s prior approval, the Construction Manager shall not make
advance payments to suppliers for materials or equipment which have not been
delivered and stored at the site.

§ 7.1.10
In taking action on the Construction Manager’s Applications for Payment, the
Architect shall be entitled to rely on the accuracy and completeness of the
information furnished by the Construction Manager and shall not be deemed to
represent that the Architect has made a detailed examination, audit or
arithmetic verification of the documentation submitted in accordance with
Section 7.1.4 or other supporting data, that the Architect has made exhaustive
or continuous on-site inspections or that the Architect has made examinations
to ascertain how or for what purposes the Construction Manager has used amounts
previously paid on account of the Contract. Such examinations, audits and
verifications, if required by the Owner, will be performed by the Owner’s
accountants acting in the sole interest of the Owner.

§7.1.11
No retention shall be held on insurance, permits or Subguard.

§ 7.2
FINAL PAYMENT

§ 7.2.1
Final payment shall be made by the Owner to the Construction Manager when (1)
the Contract has been fully performed by the Construction Manager except for
the Construction Manager’s responsibility to correct nonconforming Work, as
provided in Section 12.2.2 of A201TM—1997, and to satisfy other requirements, if
any, which necessarily survive final payment; (2) a final Application for
Payment and a final accounting for the Cost of the Work have been submitted by
the Construction Manager and reviewed by the Owner’s accountants; and (3) a
final Certificate for Payment has then been issued by the Architect; such final
payment shall be made by the Owner not more than 30 days after the issuance of
the Architect’s final Certificate for Payment, or as follows:

Once substantial
completion is achieved, Owner agrees to consider payments out of retention to
subcontractors that have fully performed.

§ 7.2.2
The amount of the final payment shall be calculated as follows:

.1                     Take the sum
of the Cost of the Work substantiated by the Construction Manager’s final
accounting and the Construction Manager’s Fee, but not more than the Guaranteed
Maximum Price.

.2                     Subtract
amounts, if any, for which the Architect withholds, in whole or in part, a
final Certificate for Payment as provided in Section 9.5.1 of A201TM—1997 or
other provisions of the Contract Documents.

.3                     Subtract the
aggregate of previous payments made by the Owner.

If the aggregate of
previous payments made by the Owner exceeds the amount due the Construction
Manager, the Construction Manager shall reimburse the difference to the Owner.

§ 7.2.3
The Owner’s accountants will review and report in writing on the Construction
Manager’s final accounting within 30 days after delivery of the final
accounting to the Architect by the Construction Manager. Based upon such Cost
of the Work as the Owner’s accountants report to be substantiated by the
Construction Manager’s final accounting, and provided the other conditions of
Section 7.2.1 have been met, the Architect will, within seven days after
receipt of the written report of the Owner’s accountants, either issue to the
Owner a final Certificate for Payment with a copy to the Construction Manager
or notify the Construction Manager and Owner in writing of the Architect’s
reasons for withholding a certificate as provided in Section 9.5.1 of A201TM—1997
.. The time periods stated in this Section 7.2 supersede those stated in Section
9.4.1 of A201TM—1997.

§ 7.2.4
If the Owner’s accountants report the Cost of the Work as substantiated by the
Construction Manager’s final accounting to be less than claimed by the
Construction Manager, the Construction Manager shall be entitled to proceed in
accordance with Article 9 without a further decision of the Architect. Unless
agreed to otherwise, a demand for mediation or arbitration of the disputed
amount shall be made by the Construction Manager within 60 days after the
Construction Manager’s receipt of a copy of the Architect’s final Certificate
for Payment. Failure to make such demand within this 60-day period shall result
in the substantiated amount reported by the Owner’s accountants becoming
binding on the Construction Manager. Pending a final resolution of the disputed
amount, the Owner shall pay the Construction Manager the amount certified in
the Architect’s final Certificate for Payment.

§ 7.2.5
If, subsequent to final payment and at the Owner’s request, the Construction
Manager incurs costs described in Section 6.1 and not excluded by Section 6.2
(1) to correct nonconforming Work or (2) arising from the resolution of disputes,
the Owner shall reimburse the Construction Manager such costs and the
Construction Manager’s Fee, if any, related thereto on the same basis as if
such costs had been incurred prior to final payment, but not in excess of the
Guaranteed Maximum Price. If the Construction Manager has participated in
savings, the amount of such savings shall be recalculated and appropriate
credit given to the Owner in determining the net amount to be paid by the Owner
to the Construction Manager.

 10
 

ARTICLE 8   INSURANCE AND BONDS

§ 8.1
INSURANCE REQUIRED OF THE CONSTRUCTION MANAGER

During  the Project, the Construction Manager shall
purchase and maintain insurance as set forth in Section 11.1 of A201TM—1997.
Such insurance shall be written for not less than the following limits, or
greater if required by law

§ 8.1.1
Workers’ Compensation and Employers’ Liability meeting statutory limits
mandated by state and federal laws. If (1) limits in excess of those required
by statute are to be provided, or (2) the employer is not statutorily bound to
obtain such insurance coverage or (3) additional coverages are required,
additional coverages and limits for such insurance shall be as follows:

§ 8.1.2
Commercial General Liability including coverage for Premises-Operations,
Independent Contractors’ Protective, Products-Completed Operations, Contractual
Liability, Personal Injury and Broad Form Property Damage (including coverage
for Explosion, Collapse and Underground hazards):

1,000,000/2,000,000      Each Occurrence

2,000,000     
General Aggregate

1,000,000     
Personal and Advertising Injury

2,000,000      Products-Completed Operations Aggregate

 1.     The policy shall be endorsed to have the
General Aggregate apply to this Project only.

 2.                  Products and Completed Operations
insurance shall be maintained for a minimum period of at least (2) year(s)
after either 90 days following Substantial Completion or final payment,
whichever is earlier.

 3.                  The Contractual Liability insurance
shall include coverage sufficient to meet the obligations in Section 3.18 of
A201TM—1997.

§ 8.1.3
Automobile Liability (owned, non-owned and hired vehicles) for bodily injury
and property damage:

 1,000,000    
Each Accident

§ 8.1.4
Other coverage:

 Umbrella Excess Liability - $25,000,000

(If
Umbrella Excess Liability coverage is required over the primary insurance or
retention, insert the coverage limits. Commercial General Liability and
Automobile Liability limits may be attained by individual policies or by a
combination of primary policies and Umbrella and/or Excess Liability policies.
If Project Management Protective Liability Insurance is to be provided, state
the limits here.)

§ 8.2
INSURANCE REQUIRED OF THE OWNER

During both phases of the
Project, the Owner shall purchase and maintain liability and property
insurance, including waivers of subrogation, with contractor and all
subcontractors named additionally insured. as set forth in Sections 11.2 and
11.4 of A201TM—1997. Such insurance shall be written for not less than the
following limits, or greater if required by law:

§ 8.2.1
Property Insurance: $320 Million

$100,000     
Deductible Per Occurrence

N/A      Aggregate Deductible

§ 8.2.2
Boiler and Machinery insurance with a limit of: $5,000,000/occurrence.

(If
not a blanket policy, list the objects to be insured.)

 11
 

§8.2.3
Builder’s Risk.  Construction Manager
shall procure builder’s risk coverage for new work in amount equal to at least
full GMP value.

§8.2.4  Construction Manager shall be responsible for
any deductibles relative to damage to property under either the property or the
builder’s risk policies to the extent the covered loss is due to the acts or
omissions of Construction Manager or its subcontractors.  Owner shall be responsible for any
deductibles relative to business interruption coverage under either the
property or the builder’s risk policies.

§ 8.3
PERFORMANCE BOND AND PAYMENT BOND

§ 8.3.1
The Construction Manager shall furnish bonds covering faithful performance of
the Contract and payment of obligations arising thereunder.   Bonds may be obtained through the
Construction Managers unusal source, and the cost thereof shall be included in
the Cost of the Work.  The amount of each
bond shall be equal to the Guaranteed Maximum Price, less cost of the bonds.

§ 8.3.2  The Construction Manager shall deliver the
required bonds, using AIA Document A312 to the Owner at least three days before
the commencement of any work at the Project site.

§ 8.3.3  Construction Manager shall purchase Subguard
coverage in an amount equal to the amount of subcontracted work and shall have
the policy endorsed to cover Owner’s financial interests.  In addition, if there is a refund of any of
the premium paid for this coverage upon completion of the Work, the refund
shall be paid to Owner.

ARTICLE 9   MISCELLANEOUS PROVISIONS

§ 9.1
DISPUTE RESOLUTION

§ 9.1.1   The parties shall not be obligated to engage
in either mediation or arbitration but may choose to do so on a case by case
basis.  Any references herein to such
forms of dispute resolution shall be deemed to apply to the parties rights
relative to litigation.

§ 9.2
OTHER PROVISIONS

§ 9.2.1
Unless otherwise noted, the terms used in this Agreement shall have the same
meaning as those in A201TM—1997, General
Conditions of the Contract for Construction.

§ 9.2.2
EXTENT OF CONTRACT

This Contract, which
includes this Agreement and the other documents incorporated herein by
reference, represents the entire and integrated agreement between the Owner and
the Construction Manager and supersedes all prior negotiations, representations
or agreements, either written or oral. This Agreement may be amended only by
written instrument signed by both the Owner and Construction Manager. If
anything in any document incorporated into this Agreement is inconsistent with
this Agreement, this Agreement shall govern.

§ 9.2.3
OWNERSHIP AND USE OF DOCUMENTS

Article 1.6 of A201TM—1997
shall apply to both the Preconstruction and Construction Phases.

§ 9.2.4
GOVERNING LAW

The Contract shall be
governed by the law of the place where the Project is located.

§ 9.2.5
ASSIGNMENT

The Owner and
Construction Manager respectively bind themselves, their partners, successors,
assigns and legal representatives to the other party hereto and to partners,
successors, assigns and legal representatives of such other party in respect to
covenants, agreements and obligations contained in the Contract Documents.
Except as provided in Section 13.2.2 of A201TM—1997, neither party to the
Contract shall assign the Contract as a whole without written consent of the
other. If either party attempts to make such an assignment without such
consent, that party shall nevertheless remain legally responsible for all
obligations under the Contract.

ARTICLE 10 TERMINATION OR SUSPENSION

§ 10.1
TERMINATION PRIOR TO ESTABLISHING GUARANTEED MAXIMUM PRICE

§ 10.1.1
Prior to execution by both parties of Amendment No. 1 establishing the
Guaranteed Maximum Price, the Owner may terminate this Contract at any time
without cause, and the Construction Manager may terminate this Contract for any
of the reasons described in Section 14.1.1 of A201TM—1997.

 12
 

§ 10.1.2
If the Owner or Construction Manager terminates this Contract pursuant to this
Section 10.1 prior to commencement of the Construction Phase, the Construction
Manager shall be equitably compensated for Preconstruction Phase Services
performed prior to receipt of notice of termination.

§ 10.1.3
If the Owner or Construction Manager terminates this Contract pursuant to this
Section 10.1 after commencement of the Construction Phase, the Construction
Manager shall, in addition to the compensation provided in Section 10.1.2, be
paid an amount calculated as follows:

.1                     Take the Cost
of the Work incurred by the Construction Manager.

.2                     Add the
Construction Manager’s Fee computed upon the Cost of the Work to the date of
termination at the rate stated in Section 5.1, but not less than $300,000.  If the Construction Manager’s Fee is stated
as a fixed sum in that Section, an amount which bears the same ratio to that
fixed-sum Fee as the Cost of the Work at the time of termination bears to a
reasonable estimate of the probable Cost of the Work upon its completion.

.3                     Subtract the
aggregate of previous payments made by the Owner on account of the Construction
Phase.

The Owner shall also pay
the Construction Manager fair compensation, either by purchase or rental at the
election of the Owner, for any equipment owned by the Construction Manager
which the Owner elects to retain and which is not otherwise included in the
Cost of the Work under Section 10.1.3.1. To the extent that the Owner elects to
take legal assignment of subcontracts and purchase orders (including rental
agreements), the Construction Manager shall, as a condition of receiving the
payments referred to in this Article 10, execute and deliver all such papers
and take all such steps, including the legal assignment of such subcontracts
and other contractual rights of the Construction Manager, as the Owner may
require for the purpose of fully vesting in the Owner the rights and benefits
of the Construction Manager under such subcontracts or purchase orders.

Subcontracts, purchase
orders and rental agreements entered into by the Construction Manager with the
Owner’s written approval prior to the execution of Amendment No. 1 shall
contain provisions permitting assignment to the Owner as described above. If
the Owner accepts such assignment, the Owner shall reimburse or indemnify the
Construction Manager with respect to all costs arising under the subcontract,
purchase order or rental agreement except those which would not have been
reimbursable as Cost of the Work if the contract had not been terminated. If
the Owner elects not to accept the assignment of any subcontract, purchase
order or rental agreement which would have constituted a Cost of the Work had
this agreement not been terminated, the Construction Manager shall terminate such
subcontract, purchase order or rental agreement and the Owner shall pay the
Construction Manager the costs necessarily incurred by the Construction Manager
by reason of such termination.

§ 10.2
TERMINATION SUBSEQUENT TO ESTABLISHING GUARANTEED MAXIMUM PRICE

Subsequent to execution
by both parties of Amendment No. 1, the Contract may be terminated as provided
in Article 14 of A201TM—1997.

§ 10.2.1
In the event of such termination by the Owner, the amount payable to the
Construction Manager pursuant to Section 14.1.3 of A201TM—1997 shall not exceed
the amount the Construction Manager would have been entitled to receive
pursuant to Sections 10.1.2 and 10.1.3 of this Agreement.

§ 10.2.2
In the event of such termination by the Construction Manager, the amount to be
paid to the Construction Manager under Section 14.1.3 of A201TM—1997 shall not
exceed the amount the Construction Manager would have been entitled to receive
under Sections 10.1.2 and 10.1.3 above, except that the Construction Manager’s
Fee shall be calculated as if the Work had been fully completed by the
Construction Manager, including a reasonable estimate of the Cost of the Work
for Work not actually completed.

§ 10.3
SUSPENSION

The Work may be suspended
by the Owner as provided in Article 14 of A201TM—1997; in such case, the
Guaranteed Maximum Price, if established, shall be increased as provided in
Section 14.3.2 of A201TM—1997 except that the term “cost of performance of the
Contract” in that Section shall be understood to mean the Cost of the Work and
the term “profit” shall be understood to mean the Construction Manager’s Fee as
described in Sections 5.1.1 and 5.3.4 of this Agreement.

 13
 

ARTICLE 11 OTHER CONDITIONS AND SERVICES

§11.1  Construction Manager shall use its best
efforts ( and shall cause its subcontractors) not to interfere in any way with
Owner’s and its affiliates existing operations at its casino, hotel, Conference
center, Dining facilities, harness track, simulcasting facilities, speedway and
related facilities (the “Existing Facilities”) and not to inconvenience or
offend patrons of the Existing Facilities or employees working there.  Parking for Construction Manager and its
subcontractors and storage of equipment and materials shall be limited to those
areas designated by Owner.  Fencing
requirements shall be as required to keep the entire site secure and as may be
reasonably required by Owner from time to time. 
Construction Manager is aware that Owner and its affiliates conduct a
major speedway event at the Existing Facilities two (2) times per year, in June
and September. Construction Manager further agrees to curtail and secure all
construction activities for the week prior to the speedway event in accordance
with the Owner’s requirements. It shall be the Construction Manager’s responsibility
to obtain the exact dates of all the events that occur during the construction
period, inform all subcontractors and schedule all activities accordingly.  Weekday Work hours shall be between the hours
of 7:00 am and 4:00 pm. Any alteration of this work schedule must have the
approval of the Owner. All weekend work must be approved by and coordinated
with the Owner. Construction Manager understands that construction activities
are immediately adjacent to existing casino operations. and will make every
effort possible to limit construction noise decibel levels to an absolute
minimum. Excessive complaints will require an alteration of construction
schedule & activities.

This Agreement entered into as of the day and year
first written above.

 

	
  OWNER

  	
   

  	
  CONSTRUCTION MANAGER

  
	
   

  	
   

  	
   

  
	
  /s/ Edward J.
  Sutor

  	
   

  	
  /s/ Thomas Falvey

  
	
  (Signature)

  	
   

  	
  (Signature)

  
	
   

  	
   

  	
   

  
	
  Edward J. Sutor,

  Executive Vice President

  	
   

  	
  Thomas A. Falvey,

  President

  
	
  (Printed
  name and title)

  	
   

  	
  (Printed name and title)

  
	
   

  	
   

  	
   

  
	
  03-29-07

  	
   

  	
  03-28-07

  
	
  Date

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ATTEST

  	
   

  	
  ATTEST

  

 

 

 14Exhibit 10.2

SIXTH AMENDMENT TO AMENDED AND
RESTATED

CREDIT AGREEMENT

This
SIXTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) is
made and entered into as of the 30th day of March, 2007, by and among Dover
Downs Gaming & Entertainment, Inc. (the “Borrower”) and Wilmington Trust
Company, a Delaware banking corporation, its successors and assigns (“WTC”),
and Mercantile-Safe Deposit & Trust Company, a Maryland banking
corporation, its successors and assigns (“Mercantile,”  and
together with WTC, the “Banks”) and WTC, as agent (the “Agent”).

WHEREAS,
the Borrower, WTC, PNC Bank, Delaware, a Delaware banking corporation (“PNC
Delaware”), Mercantile and the Agent have entered into an Amended and Restated
Credit Agreement, dated as of March 25, 2002, as amended by the Amendment to
Amended and Restated Credit Agreement, dated as of August 12, 2002, the Second
Amendment to Amended and Restated Credit Agreement, dated as of
February 19, 2004, the Third Amendment to Amended and Restated Credit Agreement,
dated as of November 5, 2004, the Fourth Amendment to Amended and Restated
Credit Agreement, dated as of December 14, 2005, and the Fifth Amendment to
Amended and Restated Credit Agreement, dated as of April 18, 2006 (as so
amended, the “Agreement”), pursuant to which WTC, PNC Delaware and Mercantile
agreed to make available certain credit facilities to the Borrower; and

WHEREAS,
PNC Delaware and Mercantile have become affiliated banks and PNC Delaware has
assigned to Mercantile its obligations as a Bank under the Agreement; and

WHEREAS,
the Borrower, the Banks and the Agent desire to amend the Agreement as set
forth herein.

NOW
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, and intending to be legally bound hereby, the
parties hereto hereby agree as follows:

SECTION 1.  Defined Terms.  Capitalized terms used herein and not
otherwise defined are used as defined in the Agreement.

SECTION 2.  Amendments.

2.1.          The definition of
Required Banks found in Section 1.1 of the Agreement is hereby amended and
restated in its entirety to read as follows:

““Required
Banks”:  shall mean all of the Banks.”

2.2.          The definition of
Termination Date found in Section 1.1 of the Agreement is hereby amended and
restated in its entirety to read as follows:

““Termination
Date”:  the earlier of (a)
April 17, 2012, or such later date to which the Termination Date shall
have been extended pursuant to Section 2.10(d) and (b) the date the
Commitments are terminated as provided herein.”

2.3.          Schedule I of the
Agreement is hereby amended and restated in its entirety to read as set forth
in Schedule I attached hereto.

SECTION 3.  Representations and Warranties.  The Borrower hereby represents and warrants
to the Agent and the Banks as follows:

(a)           Each of the
representations and warranties of the Borrower in the Agreement is true and
correct in all material respects on and as if made as of the date hereof after
giving effect to this Amendment.

(b)           As of the date
hereof, and after giving effect to this Amendment, no Default or Event of
Default exists.

(c)           No consent, approval
or authorization of, or registration with any Person is required in connection
with the execution, delivery or performance by the Borrower of this Amendment.

SECTION 4.  Closing Fees.  The Borrower shall pay to the Agent for the
account of the Banks pro  rata in accordance with Section 2.16 of
the Agreement an extension fee in the amount of $15,000.00 payable upon the
parties’ execution of this Amendment.

SECTION 5.  Binding Effect.  This Amendment shall be binding upon, and
shall inure to the benefit of, the parties hereto and their respective
successors and assigns.

SECTION 6.  Execution in Counterparts.  This Amendment may be executed in any number
of counterparts, all of which taken together shall constitute one and the same
instrument, and any of the parties hereto may execute this Amendment by signing
any such counterpart.

SECTION 7.  Agreement in Effect.  Except as hereby amended, the Agreement shall
remain in full force and effect.

SECTION 8.  Governing Law.  This Amendment shall be governed by, and
construed in accordance with, the laws of the State of Delaware without regard
to its principles of conflict of laws, all rights and remedies being governed
by Delaware’s substantive laws.

[SIGNATURE PAGE
FOLLOWS]

 2
 

IN
WITNESS WHEREOF, the parties hereto have duly executed this Amendment as of the
date first above written.

	
  

  	
   

  	
  DOVER DOWNS GAMING & ENTERTAINMENT, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Timothy R. Horne

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
  Timothy R. Horne

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Sr. Vice President — Finance

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WILMINGTON TRUST COMPANY, as Agent and as a Bank

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Michael B. Gast

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
  Michael B. Gast

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MERCANTILE-SAFE DEPOSIT & TRUST COMPANY,
  as a Bank

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ C. Douglas Sawyer

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
  C. Douglas Sawyer

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Sr. Vice President

  

 

 

	
  Acknowledged and Agreed as of

  	
   

  	
   

  	
   

  	
   

  
	
  March 30, 2007

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DOVER DOWNS, INC., as
  Guarantor

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ Timothy R. Horne

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Timothy R. Horne

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  Sr. Vice President — Finance

  	
   

  	
   

  	
   

  	
   

  

 

 3

SCHEDULE I

BANK AND COMMITMENT INFORMATION

	
  Bank and Address

  	
   

  	
  Commitment

  	
   

  	
  Swing Line

  Commitment

  	
   

  
	
  Wilmington Trust
  Company 

  121 South State Street 

  Dover, DE19901 

  Attn: Michael B. Gast

  	
   

  	
  $55,000,000 through September  30, 2007, 

  then $65,000,000 through December 31, 

  2009, then $52,000,000 through December 31, 

  2010, then $44,200,000 through December 31,
  2011, 

  then $39,000,000 thereafter

  	
   

  	
  $

  	
  5,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Mercantile-Safe Deposit
  & Trust Company 

  Two Hopkins Plaza, 5th Floor 

  Baltimore, MD 21201 

  Attn: C. Douglas Sawyer

  	
   

  	
  $50,000,000 through September 30, 2007 

  then $60,000,000 through December 31, 

  2009, then $48,000,000 through December 31, 

  2010, then $40,800,000 through December 31, 

  2011, then $36,000,000 thereafter

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total:

  	
   

  	
  $105,000,000 through
  September 30, 2007, 

  then
  $125,000,000 through December 31, 

  2009, then
  $100,000,000 through December 31, 

  2010, then
  $85,000,000 through December 31, 

  2011, then
  $75,000,000 thereafter

  	
   

  	
  $

  	
  5,000,000

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]