Subsidiary Guaranty Agreement Dated as of January 18, 2011 from The Subsidiary Guarantors Named Herein for the benefit of The Holders of the Notes Re: $65,000,000 4.63% Series 2011A Senior Notes due January 18, 2021 of International Speedway Corporation
Exhibit 10.2
Dated as of January 18, 2011
from
The Subsidiary Guarantors Named Herein
for the benefit of
The Holders of the Notes
Re:
$65,000,000 4.63% Series 2011A Senior Notes due January 18, 2021
of
International Speedway Corporation
Table of Contents
| Section | Heading | Page | ||
Section 1.
|
Guaranty | 2 | ||
Section 2.
|
Representations and Warranties | 3 | ||
Section 3.
|
Subsidiary Guarantor’s Obligations Unconditional | 5 | ||
Section 4.
|
Full Recourse Obligations; Pari Passu Ranking | 10 | ||
Section 5.
|
Waiver | 11 | ||
Section 6.
|
Waiver of Subrogation | 11 | ||
Section 7.
|
Subordination | 12 | ||
Section 8.
|
Effect of Bankruptcy Proceedings, Etc. | 12 | ||
Section 9.
|
Term of Guaranty | 13 | ||
Section 10.
|
Contribution | 13 | ||
Section 11.
|
Limitation of Liability | 14 | ||
Section 12.
|
Negative Pledge | 14 | ||
Section 13.
|
Supplemental Agreement | 14 | ||
Section 14.
|
Definitions and Terms Generally | 15 | ||
Section 15.
|
Notices | 15 | ||
Section 16.
|
Amendments, Etc. | 16 | ||
Section 17.
|
Consent to Jurisdiction; Service of Process | 16 |
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| Section | Heading | Page | ||
Section 18.
|
Waiver of Jury Trial | 17 | ||
Section 19.
|
Survival | 17 | ||
Section 20.
|
Severability | 18 | ||
Section 21.
|
Successors and Assigns | 18 | ||
Section 22.
|
Table of Contents; Headings | 18 | ||
Section 23.
|
Counterparts | 18 | ||
Section 24.
|
Governing Law | 18 | ||
Section 25.
|
Release | 18 | ||
Section 26.
|
Covenant Compliance | 18 |
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This Subsidiary Guaranty Agreement, dated as of January 18, 2011 (the
“Guaranty”), from each of:
| (i) | Americrown Service Corporation; | ||
| (ii) | The California Speedway Corporation; | ||
| (iii) | Chicago Holdings, Inc.; | ||
| (iv) | Daytona International Speedway, LLC; | ||
| (v) | Event Equipment Leasing, LLC; | ||
| (vi) | HBP, Inc.; | ||
| (vii) | International Speedway, Inc.; | ||
| (viii) | XXX.XXX, LLC; | ||
| (ix) | Kansas Speedway Corporation; | ||
| (x) | Martinsville International, Inc.; | ||
| (xi) | Miami Speedway Corp.; | ||
| (xii) | Michigan International Speedway, Inc.; | ||
| (xiii) | Motorsports Acceptance Corporation; | ||
| (xiv) | The Motorsports Alliance, LLC; | ||
| (xv) | Phoenix Speedway Corp.; | ||
| (xvi) | Raceway Associates, LLC; | ||
| (xvii) | Richmond International Raceway, Inc.; | ||
| (xviii) | Talladega Superspeedway, LLC; and | ||
| (xix) | such Subsidiaries as shall become parties hereto in accordance with Section 13 hereof (each a “Subsidiary Guarantor” and collectively the “Subsidiary Guarantors”), |
for the benefit of the holders from time to time of the Notes (as defined below) (the “Holders”).
Capitalized terms used herein are defined in Section 14 hereof or the Note Purchase Agreement
referred to below.
Whereas, International Speedway Corporation, a Florida corporation (the “Company”)
will authorize the issue and sale of $65,000,000 4.63% Series 2011A Senior Notes due January 18,
2021 (the “Series 2011A Notes”), pursuant to a Note Purchase Agreement, dated as of the date hereof
(as amended, modified or supplemented from time to time, the “Note Purchase Agreement”) among the
Company and the purchasers named therein.
Whereas, the Company is authorized to issue Additional Notes (as such term is defined
in the Note Purchase Agreement) of one or more separate series from time to time in an aggregate
principal amount not to exceed $400,000,000 pursuant to Section 2.2 of the Note Purchase Agreement.
Whereas, the Additional Notes together with the Series 2011A Notes are collectively
referred to as the “Notes”.
Whereas, each of the Subsidiary Guarantors is a Subsidiary of the Company.
Whereas, the Company has agreed that the Subsidiary Guarantors will guarantee the
Company’s obligations under the Notes and the Note Purchase Agreement.
Whereas, the Subsidiary Guarantors each acknowledge that they will derive substantial
benefits from the issuance of the Notes.
Now, Therefore, in consideration of the premises and to induce the Holders to
purchase the Notes, each of the Subsidiary Guarantors, intending to be legally bound, hereby agrees
for the benefit of the Holders, as follows:
Section 1. Guaranty.
Each Subsidiary Guarantor with all other Subsidiary Guarantors, hereby absolutely,
unconditionally and irrevocably guarantees, jointly and severally, as a primary obligor and not
merely as a surety, to each Holder and its successors and assigns, the full and punctual payment
and performance when due, whether at stated maturity, by acceleration or otherwise, of the
principal of and Make-Whole Amount, and interest on (including, without limitation, interest,
whether or not an allowable claim, accruing after the date of filing of any petition in bankruptcy,
or the commencement of any bankruptcy, insolvency or similar proceeding relating to the Company)
the Notes and all other amounts under the Note Purchase Agreement and all other obligations,
agreements and covenants of the Company now or hereafter existing under the Note Purchase Agreement
whether for principal, Make-Whole Amount, interest (including interest accruing or becoming owing
both prior to and subsequent to the commencement of any proceeding against or with respect to the
Company under any chapter of the Bankruptcy Code), indemnification payments, expenses (including
reasonable attorneys’ fees and expenses) or otherwise, and all reasonable costs and expenses, if
any, incurred by any Holder in connection with enforcing any rights under this Guaranty (all such
obligations being the “Guaranteed Obligations”), and agrees to pay any and all reasonable expenses
incurred by each Holder in enforcing this Guaranty; provided that, notwithstanding anything
contained herein or in the Note Purchase Agreement to the contrary, the maximum liability of each
Subsidiary Guarantor hereunder and under the Note Purchase Agreement shall in no event exceed such
Guarantor’s Maximum Guaranteed Amount, and provided further, each Subsidiary Guarantor shall be
unconditionally required to pay all amounts demanded of it hereunder prior to any determination of
such Maximum Guaranteed Amount and the recipient of such payment, if so required by a final
non-appealable order of a court of competent jurisdiction, shall then be liable for the refund of
any excess amounts. If any such rebate or refund is ever required, all other Subsidiary Guarantors
(and the Company) shall be fully liable for the repayment thereof to the maximum extent allowed by
applicable law. This Guaranty is an absolute, unconditional, present and continuing guaranty of
payment and not of collectibility and is in no way conditioned upon any attempt to collect from the
Company or any other action, occurrence or circumstance whatsoever. Each Subsidiary Guarantor
agrees that the Guaranteed Obligations may at any time and from to time exceed the Maximum
Guaranteed Amount of such Subsidiary Guarantor without impairing this Guaranty or affecting the
rights and remedies of the Holders hereunder.
Notwithstanding any stay, injunction or other prohibition preventing such action against the
Company, if for any reason whatsoever the Company shall fail or be unable duly, punctually
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and fully to perform and (in the case of the payment of Guaranteed Obligations) pay such
amounts as and when the same shall become due and (in the case of the payment of Guaranteed
Obligations) payable or to perform or comply with any other Guaranteed Obligation, whether or not
such failure or inability shall constitute an “Event of Default” under the Note Purchase Agreement
or the Notes, each Subsidiary Guarantor will forthwith (in the case of the payment of Guaranteed
Obligations) pay or cause to be paid such amounts to the Holders, in lawful money of the United
States of America, at the place specified in the Note Purchase Agreement, or perform or comply with
such Guaranteed Obligations or cause such Guaranteed Obligations to be performed or complied with,
(in the case of the payment of Guaranteed Obligations) together with interest (in the amounts and
to the extent required under such Notes) on any amount due and owing.
Section 2. Representations and Warranties.
Each Subsidiary Guarantor hereby represents and warrants as follows:
(a) All representations and warranties contained in the Note Purchase Agreement that relate to
such Subsidiary Guarantor are true and correct in all respects and are incorporated by reference
with the same force and effect as though set forth herein in full.
(b) Such Subsidiary Guarantor acknowledges that any default in the due observance or
performance by such Subsidiary Guarantor of any covenant, condition or agreement contained herein
(if, after the running of any applicable notice and opportunity to cure periods provided in the
Note Purchase Agreement, such default or event of default remains uncured) shall constitute an
Event of Default.
(c) There are no conditions precedent to the effectiveness of this Guaranty that have not been
satisfied or expressly waived.
(d) Such Subsidiary Guarantor has, independently and without reliance upon the Holders and
based on such documents and information as it has deemed appropriate, made its own credit analysis
and decision to enter into this Guaranty. Such Subsidiary Guarantor has investigated fully the
benefits and advantages which will be derived by it from execution of this Guaranty, and the Board
of Directors (or other equivalent authority) of such Subsidiary Guarantor has decided that a direct
and/or an indirect benefit will accrue to such Subsidiary Guarantor by reason of the execution of
this Guaranty.
(e) (i) This Guaranty is not given with actual intent to hinder, delay or defraud any Person
to which such Subsidiary Guarantor is or will become, on or after the date hereof, indebted; (ii)
such Subsidiary Guarantor has received at least a reasonably equivalent value in exchange for the
giving of this Guaranty; (iii) such Subsidiary Guarantor is not insolvent on the date hereof and
will not become insolvent as a result of the giving of this Guaranty; (iv) such Subsidiary
Guarantor is not engaged in a business or transaction, nor is about to engage in a business or
transaction, for which any property remaining with such Subsidiary Guarantor constitutes an
unreasonably small amount of capital; and (v) such Subsidiary Guarantor does not
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intend to incur debts that will be beyond such Subsidiary Guarantor’s ability to pay as such debts
mature.
(f) Such Subsidiary Guarantor is a corporation or other legal entity duly organized and
validly existing under the laws of its state of organization, and has the requisite power,
authority and legal right under the laws of its state of organization to conduct its business as
presently conducted and to execute, deliver and perform its obligations under this Guaranty.
(g) The execution, delivery and performance of this Guaranty have been duly authorized by all
necessary corporate action on the part of such Subsidiary Guarantor, and does not require any
consent or approval of, or the giving of notice to, or the taking of any other action in respect
of, any stockholder or trustee or holder of any indebtedness or obligations of such Subsidiary
Guarantor. This Guaranty constitutes a legal, valid and binding obligation of such Subsidiary
Guarantor, enforceable against such Subsidiary Guarantor in accordance with its terms, except that
such enforceability is subject to any limitations arising from bankruptcy, insolvency, liquidation,
moratorium, reorganization and other similar laws of general application relating to or affecting
the rights of creditors or pledgees and to general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law).
(h) The execution, delivery and performance of this Guaranty does not and will not conflict
with or result in any violation of or default under any provision of the Articles of Incorporation
or by-laws or partnership agreement, as the case may be, of such Subsidiary Guarantor, or any
indenture, mortgage, deed of trust, instrument, law, rule or regulation binding on such Subsidiary
Guarantor or to which such Subsidiary Guarantor is a party.
(i) The execution, delivery and performance of this Guaranty does not and will not result in
violation of any judgment or order applicable to such Subsidiary Guarantor or result in the
creation or imposition of any Lien on any of the properties or revenues of such Subsidiary
Guarantor pursuant to any requirement of law or any indenture, mortgage, deed of trust or other
instrument to which such Subsidiary Guarantor is a party.
(j) The execution, delivery and performance of this Guaranty does not and will not conflict
with and does not and will not require any consent, approval or authorization of, or registration
or filing with, any governmental authority or agency of the state of organization of such
Subsidiary Guarantor or of the United States or any State.
(k) There are no pending or, to the knowledge of such Subsidiary Guarantor, threatened actions
or proceedings against or affecting such Subsidiary Guarantor or any of its properties by or before
any court or administrative agency or arbiter that would adversely affect the ability of such
Subsidiary Guarantor to perform its obligations hereunder or call into question the validity or
enforceability of this Guaranty.
(l) Such Subsidiary Guarantor’s obligations under this Guaranty are at least pari passu in
right of payment with all other unsecured claims against the general creditors of such Subsidiary
Guarantor.
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(m) No Subsidiary Guarantor is in breach of or default under or with respect to any
instrument, document or agreement binding upon such Subsidiary Guarantor which breach or default is
reasonably probable to have a Material Adverse Effect or result in the creation of a Lien on any
property of such Subsidiary Guarantor other than Liens permitted under Section 10.4 of the Note
Purchase Agreement. Such Subsidiary Guarantor is in compliance with all applicable requirements of
law except such non-compliance as would not have a Material Adverse Effect.
(n) The execution, delivery and performance by each Subsidiary Guarantor of this Guaranty will
not render such Subsidiary Guarantor insolvent, nor is it being made in contemplation of such
Subsidiary Guarantor’s insolvency, and such Subsidiary Guarantor does not have an unreasonably
small capital.
Section 3. Subsidiary Guarantor’s Obligations Unconditional.
(a) This Guaranty shall constitute a guarantee of payment, performance and compliance and not
of collection, and each Subsidiary Guarantor specifically agrees that it shall not be necessary,
and that such Subsidiary Guarantor shall not be entitled to require, before or as a condition of
enforcing the liability of such Subsidiary Guarantor under this Guaranty or requiring payment or
performance of the Guaranteed Obligations by any Subsidiary Guarantor hereunder, or at any time
thereafter, that any Holder: (a) file suit or proceed to obtain or assert a claim for personal
judgment against the Company or any other Person that may be liable for or with respect to any
Guaranteed Obligation; (b) make any other effort to obtain payment or performance of any Guaranteed
Obligation from the Company or any other Person that may be liable for or with respect to such
Guaranteed Obligation, except for the making of the demands, when appropriate, described in Section
1; (c) foreclose against, or seek to realize upon security now or hereafter existing for such
Guaranteed Obligations; (d) except to the extent set forth in Section 1, exercise or assert any
other right or remedy to which such Holder is or may be entitled in connection with any Guaranteed
Obligation or any security or other guaranty therefor; or (e) assert or file any claim against the
assets of the Company or any other Person liable for any Guaranteed Obligation. Each Subsidiary
Guarantor agrees that this Guaranty shall be continuing, and that the Guaranteed Obligations will
be paid and performed in accordance with their terms and the terms of this Guaranty, and are the
primary, absolute and unconditional obligations of such Subsidiary Guarantor, irrespective of the
value, genuineness, validity, legality, regularity or enforceability or lack thereof of any part of
the Guaranteed Obligations or any agreement or instrument relating to the Guaranteed Obligations or
this Guaranty, or the existence of any indemnities with respect to the existence of any other
guarantee of or security for any of the Guaranteed Obligations, or any substitution, release or
exchange of any other guarantee of or security for any of the Guaranteed Obligations, and, to the
fullest extent permitted by applicable law, irrespective of any other circumstance whatsoever that
might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor, it
being the intent of this Section 3 that the obligations of each Subsidiary Guarantor hereunder
shall be irrevocable, primary, absolute and unconditional under any and all circumstances.
(b) Each Subsidiary Guarantor hereby expressly waives notice of acceptance of and reliance
upon this Guaranty, diligence, presentment, demand of payment or performance, protest
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and all other notices (except as otherwise provided for in Section 1) whatsoever, any
requirement that the Holders exhaust any right, power or remedy or proceed against the Company or
against any other Person under any other guarantee of, or security for, or any other agreement,
regarding any of the Guaranteed Obligations. Each Subsidiary Guarantor further agrees that,
subject solely to the requirement of making demands under Section 1, the occurrence of any event or
other circumstance that might otherwise vary the risk of the Company or such Subsidiary Guarantor
or constitute a defense (legal or equitable) available to, or a discharge of, or a counterclaim or
right of set-off by, the Company or such Subsidiary Guarantor (other than the full and indefeasible
due payment and performance of the Guaranteed Obligations), shall not affect the liability of such
Subsidiary Guarantor hereunder.
(c) The obligations of each Subsidiary Guarantor under this Guaranty are not subject to any
counterclaim, set-off, deduction, diminution, abatement, recoupment, suspension, deferment or
defense based upon any claim such Subsidiary Guarantor or any other Person may have against the
Company, any Holder or any other Person, and shall remain in full force and effect without regard
to, and shall not be released, discharged or in any way affected by, any circumstances or condition
whatsoever (whether or not such Subsidiary Guarantor or the Company shall have any knowledge or
notice thereof), including:
(i) any renewal, extension, modification, increase, decrease, alteration or
rearrangement of all or any part of the Guaranteed Obligations or any instrument executed in
connection therewith, or any contract or understanding with the Company, the Holders, or any
of them, or any other Person, pertaining to the Guaranteed Obligations;
(ii) any adjustment, indulgence, forbearance or compromise that might be granted or
given by any Holder to the Company or any other Person liable on the Guaranteed Obligations,
or the failure of any Holder to assert any claim or demand or to exercise any right or
remedy against the Company or any other Person under the provisions of the Note Purchase
Agreement, the Notes or otherwise; or any rescission, waiver, amendment or modification of,
or any release from any of the terms or provisions of, the Note Purchase Agreement, the
Notes, any guarantee or any other agreement;
(iii) the insolvency, bankruptcy arrangement, adjustment, composition, liquidation,
disability, dissolution or lack of power of the Company or any other Person at any time
liable for the payment of all or part of the Guaranteed Obligations; or any dissolution of
the Company or any other such Person, or any change, restructuring or termination of the
existence of the Company or any other such Person, or any sale, lease or transfer of any or
all of the assets of the Company or any other such Person, or any change in the
shareholders, partners, or members of the Company or any other such Person; or any default,
failure or delay, willful or otherwise, in the performance of the Guaranteed Obligations;
(iv) the invalidity, illegality or unenforceability of all or any part of the
Guaranteed Obligations, or any document or agreement executed in connection with the
Guaranteed Obligations, for any reason whatsoever, including the fact that the
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Guaranteed Obligations, or any part thereof, exceed the amount permitted by law, the act of creating
the Guaranteed Obligations or any part is ultra xxxxx, the officers or representatives
executing the documents or otherwise creating the Guaranteed Obligations acted in excess of
their authority, the Guaranteed Obligations violate applicable usury laws, the Company or
any other Person has valid defenses, claims or offsets (whether at law, in equity or by
agreement) which render the Guaranteed Obligations wholly or partially uncollectible from
the Company or any other Person, the creation, performance or repayment of the Guaranteed
Obligations (or the execution, delivery and performance of any document or instrument
representing part of the Guaranteed Obligations or executed in connection with the
Guaranteed Obligations or given to secure the repayment of the Guaranteed Obligations) is
illegal, uncollectible, legally impossible or unenforceable, or the documents or instruments
pertaining to the Guaranteed Obligations have been forged or otherwise are irregular or not
genuine or authentic;
(v) any full or partial release of the liability of the Company on the Guaranteed
Obligations or any part thereof, of any co-guarantors, or of any other Person now or
hereafter liable, whether directly or indirectly, jointly, severally, or jointly and
severally, to pay, perform, guarantee or assure the payment of the Guaranteed Obligations or
any part thereof, it being recognized, acknowledged and agreed by each Subsidiary Guarantor
that such Subsidiary Guarantor may be required to pay the Guaranteed Obligations in full
without assistance or support of any other Person, and such Subsidiary Guarantor has not
been induced to enter into this Guaranty on the basis of a contemplation, belief,
understanding or agreement that any parties other than the Company will be liable to perform
the Guaranteed Obligations, or that the Holders will look to other parties to perform the
Guaranteed Obligations;
(vi) the taking or accepting of any other security, collateral or guaranty, or other
assurance of payment, for all or any part of the Guaranteed Obligations;
(vii) any release, surrender, exchange, subordination, deterioration, waste, loss or
impairment (including negligent, unreasonable or unjustifiable impairment) of any
collateral, property or security, at any time existing in connection with, or assuring or
securing payment of, all or any part of the Guaranteed Obligations;
(viii) the failure of any Holder or any other Person to exercise diligence or
reasonable care in the preservation, protection, enforcement, sale or other handling or
treatment of all or any part of such collateral, property or security;
(ix) the fact that any collateral, security, security interest or lien contemplated or
intended to be given, created or granted as security for the repayment of the Guaranteed
Obligations shall not be properly perfected or created, or shall prove to be unenforceable
or subordinate to any other security interest or lien, it being recognized and agreed by
each Subsidiary Guarantor that such Subsidiary Guarantor is not entering into this Guaranty
in reliance on, or in contemplation of the benefits of, the validity, enforceability,
collectibility or value of any of the collateral;
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(x) any payment by the Company to any Holder being held to constitute a preference
under any Fraudulent Conveyance Law, or for any reason any Holder being required to refund
such payment or pay such amount to the Company or someone else;
(xi) any other action taken or omitted to be taken with respect to the Guaranteed
Obligations, or the security and collateral therefor, whether or not such action or omission
prejudices such Subsidiary Guarantor or increases the likelihood that such Subsidiary
Guarantor will be required to pay the Guaranteed Obligations pursuant to the terms hereof,
it being the unambiguous and unequivocal intention of such Subsidiary Guarantor that it
shall be obligated to pay the Guaranteed Obligations when due, notwithstanding any
occurrence, circumstance, event, action or omission whatsoever, whether or not contemplated,
and whether or not otherwise or particularly described herein, except for the full and final
payment and satisfaction of the Guaranteed Obligations in cash;
(xii) the fact that all or any of the Guaranteed Obligations cease to exist by
operation of law, including by way of a discharge, limitation or tolling thereof under
applicable bankruptcy laws;
(xiii) any other circumstance (including any statute of limitations) that might in any
manner or to any extent otherwise constitute a defense available to, vary the risk of, or
operate as a discharge of, the Company or any Person as a matter of law or equity;
(xiv) any merger or consolidation of the Company or any Subsidiary Guarantor into or
with any other Person or any sale, lease or transfer of any of the assets of the Company to
any other Person;
(xv) any change in the ownership of any shares of capital stock of the Company, or any
change in the relationship between the Company and such Subsidiary Guarantor or any
termination of any such relationship;
(xvi) any default, failure or delay, willful or otherwise, in the performance by the
Company, any Subsidiary Guarantor or any other Person of any obligations of any kind or
character whatsoever under the Note Purchase Agreement or any other agreement;
(xvii) any Subsidiary Guarantor or any other Person to any other Person, or any change
in the ownership of any shares or partnership interests of the Company, any Subsidiary
Guarantor or any other Person;
(xviii) in respect of the Company, any Subsidiary Guarantor or any other Person, any
change of circumstances, whether or not foreseen or foreseeable, whether or not imputable to
the Company, any Subsidiary Guarantor or any other Person, or other impossibility of
performance through fire, explosion, accident, labor disturbance, floods, droughts,
embargoes, wars (whether or not declared), civil commotion, acts of God or the public enemy,
delays or failure of suppliers or carriers, inability to obtain materials,
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action of any Federal or state regulatory body or agency, change of law or any other
causes affecting performance, or any other force majeure, whether or not beyond the control
of the Company, any Subsidiary Guarantor or any other Person and whether or not of the kind
hereinbefore specified; or
(xix) any other occurrence, circumstance, or event whatsoever, whether similar or
dissimilar to the foregoing, whether foreseen or unforeseen, and any other circumstance
which might otherwise constitute a legal or equitable defense or discharge of the
liabilities of a guarantor or surety or which might otherwise limit recourse against such
Subsidiary Guarantor;
provided that the specific enumeration of the above-mentioned acts, failures or omissions shall not
be deemed to exclude any other acts, failures or omissions, though not specifically mentioned
above, it being the purpose and intent of this Guaranty and the parties hereto that the obligations
of each Subsidiary Guarantor shall be absolute and unconditional and shall not be discharged,
impaired or varied except by the payment and performance of all obligations of the Company under
the Note Purchase Agreement and the Notes in accordance with their respective terms as each may be
amended or modified from time to time. Without limiting the foregoing, it is understood that
repeated and successive demands may be made and recoveries may be had hereunder as and when, from
time to time, the Company or any Subsidiary Guarantor shall default under or in respect of the
terms of the Note Purchase Agreement and that notwithstanding recovery hereunder for or in respect
of any given default or defaults by the Company or any Subsidiary Guarantor under the Note Purchase
Agreement, this Guaranty shall remain in full force and effect and shall apply to each and every
subsequent default. All waivers herein contained shall be without prejudice to the Holders at
their respective options to proceed against the Company, any Subsidiary Guarantor or other Person,
whether by separate action or by joinder.
(d) Each Subsidiary Guarantor hereby consents and agrees that any Holder or Holders from time
to time, with or without any further notice to or assent from any other Subsidiary Guarantor may,
without in any manner affecting the liability of any Subsidiary Guarantor under this Guaranty, and
upon such terms and conditions as any such Holder or Holders may deem advisable:
(i) extend in whole or in part (by renewal or otherwise), modify, change, compromise,
release or extend the duration of the time for the performance or payment of any debt,
liability or obligation of the Company or any Subsidiary Guarantor or of any other Person
secondarily or otherwise liable for any debt, liability or obligations of the Company on the
Note Purchase Agreement or the Notes, or waive any Default or Event of Default with respect
thereto, or waive, modify, amend or change any provision of any other agreement or waive
this Guaranty; or
(ii) sell, release, surrender, modify, impair, exchange or substitute any and all
property, of any nature and from whomsoever received, held by, or for the benefit of, any
such Holder as direct or indirect security for the payment or performance of any debt,
liability or obligation of the Company, any Subsidiary Guarantor or of any other Person
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secondarily or otherwise liable for any debt, liability or obligation of the Company on
the Note Purchase Agreement or the Notes; or
(iii) settle, adjust or compromise any claim of the Company or any Subsidiary Guarantor
against any other Person secondarily or otherwise liable for any debt, liability or
obligation of the Company on the Note Purchase Agreement or the Notes; or
(iv) purchase Additional Notes form time to time from the Company pursuant to the terms
and provisions of the Note Purchase Agreement.
Each Subsidiary Guarantor hereby ratifies and confirms any such extension, renewal, change, sale,
release, waiver, surrender, exchange, modification, amendment, impairment, substitution,
settlement, adjustment, compromise or purchase Additional Notes and that the same shall be binding
upon it, and hereby waives, to the fullest extent permitted by law, any and all defenses,
counterclaims or offsets which it might or could have by reason thereof, it being understood that
such Subsidiary Guarantor shall at all times be bound by this Guaranty and remain liable hereunder.
(e) All rights of any Holder may be transferred or assigned at any time in accordance with the
Note Purchase Agreement and shall be considered to be transferred or assigned at any time or from
time to time upon the transfer of such Note in accordance with the Note Purchase Agreement without
the consent of or notice to the Subsidiary Guarantors under this Guaranty.
(f) No Holder shall be under any obligation: (i) to marshal any assets in favor of the
Subsidiary Guarantors or in payment of any or all of the liabilities of the Company or any
Subsidiary Guarantor under or in respect of the Notes or the obligations of the Company and the
Subsidiary Guarantors under the Note Purchase Agreement or (ii) to pursue any other remedy that the
Subsidiary Guarantors may or may not be able to pursue themselves and that may lighten the
Subsidiary Guarantors’ burden, any right to which each Subsidiary Guarantor hereby expressly
waives.
Section 4. Full Recourse Obligations; Pari Passu Ranking.
Subject to the Maximum Guaranteed Amount specified above, the obligations of each Subsidiary
Guarantor set forth herein constitute the full recourse obligations of such Subsidiary Guarantor
enforceable against it to the full extent of all its assets and properties.
The respective obligations under this Guaranty of the Subsidiary Guarantors are and at all
times shall remain direct and unsecured obligations of the Subsidiary Guarantors ranking pari passu
as against the assets of the Subsidiary Guarantors without any preference among themselves and pari
passu with all other present and future unsecured Indebtedness (actual or contingent) of the
Subsidiary Guarantors which is not expressed to be subordinate or junior in rank to any other
unsecured Indebtedness of the Subsidiary Guarantors.
- 10 -
Section 5. Waiver.
Each Subsidiary Guarantor unconditionally waives, to the extent permitted by applicable law:
(a) notice of any of the matters referred to in Section 3;
(b) notice to such Subsidiary Guarantor of the incurrence of any of the Guaranteed
Obligations, notice to such Subsidiary Guarantor of any breach or default by the Company or
such Subsidiary Guarantor with respect to any of the Guaranteed Obligations or any other
notice that may be required, by statute, rule of law or otherwise, to preserve any rights of
any Holder against such Subsidiary Guarantor;
(c) presentment to the Company or such Subsidiary Guarantor or of payment from the
Company or such Subsidiary Guarantor with respect to any Note or other Guaranteed Obligation
or protest for nonpayment or dishonor;
(d) any right to the enforcement, assertion, exercise or exhaustion by any Holder of
any right, power, privilege or remedy conferred in any Note, the Note Purchase Agreement or
otherwise;
(e) any requirement of diligence on the part of any Holder;
(f) any requirement to mitigate the damages resulting from any default under the Notes
or the Note Purchase Agreement;
(g) any notice of any sale, transfer or other disposition of any right, title to or
interest in any Note or other Guaranteed Obligation by any Holder, assignee or participant
thereof, or in the Note Purchase Agreement;
(h) any release of any Subsidiary Guarantor from its obligations hereunder resulting
from any loss by it of its rights of subrogation hereunder; and
(i) any other circumstance whatsoever which might otherwise constitute a legal or
equitable discharge, release or defense of a guarantor or surety or which might otherwise
limit recourse against such Subsidiary Guarantor.
Section 6. Waiver of Subrogation.
Notwithstanding any payment or payments made by any Subsidiary Guarantor hereunder, or any
application by any Holder of any security or of any credits or claims, no Subsidiary Guarantor will
assert or exercise any rights of any Holder or of such Subsidiary Guarantor against the Company to
recover the amount of any payment made by such Subsidiary Guarantor to any Holder hereunder by way
of any claim, remedy or subrogation, reimbursement, exoneration, contribution, indemnity,
participation or otherwise arising by contract, by statute, under common law or otherwise, and such
Subsidiary Guarantor shall not have any right of
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recourse to or any claim against assets or property of the Company, in each case unless and
until the Guaranteed Obligations have been paid in full. Until such time (but not thereafter),
each Subsidiary Guarantor hereby expressly waives any right to exercise any claim, right or remedy
which such Subsidiary Guarantor may now have or hereafter acquire against the Company or any other
Subsidiary Guarantor that arises under the Notes, the Note Purchase Agreement or from the
performance by any Subsidiary Guarantor of the guaranty hereunder including any claim, remedy or
right of subrogation, reimbursement, exoneration, contribution, indemnification or participation in
any claim, right or remedy of any Holder against the Company or any Subsidiary Guarantor, or any
security that any Holder now has or hereafter acquires, whether or not such claim, right or remedy
arises in equity, under contract, by statute, under common law or otherwise. If any amount shall
be paid to a Subsidiary Guarantor by the Company or another Subsidiary Guarantor after payment in
full of the Guaranteed Obligations, and all or any portion of the Guaranteed Obligations shall
thereafter be reinstated in whole or in part and any Holder is required to repay any sums received
by any of them in payment of the Guaranteed Obligations, this Guaranty shall be automatically
reinstated and such amount shall be held in trust for the benefit of the Holders and shall
forthwith be paid to the Holders to be credited and applied to the Guaranteed Obligations, whether
matured or unmatured. The provisions of this paragraph shall survive the termination of this
Guaranty, and any satisfaction and discharge of the Company by virtue of any payment, court order
or any Federal or state law.
Section 7. Subordination.
If any Subsidiary Guarantor is or becomes the holder of any indebtedness payable by the
Company or another Subsidiary Guarantor, each Subsidiary Guarantor hereby subordinates all such
indebtedness owing to it from the Company or such other Subsidiary Guarantor to all indebtedness of
the Company to the Holders, and agrees that, during the continuance of any Event of Default, it
shall not accept any payment on the same until payment in full of the Guaranteed Obligations and
shall in no circumstance whatsoever attempt to set-off or reduce any obligations hereunder because
of such indebtedness. If any amount shall nevertheless be paid in violation of the foregoing to a
Subsidiary Guarantor by the Company or another Subsidiary Guarantor prior to payment in full of the
Guaranteed Obligations, such amount shall be held in trust for the benefit of the Holders and shall
forthwith be paid to the Holders to be credited and applied to the Guaranteed Obligations, whether
matured or unmatured.
Section 8. Effect of Bankruptcy Proceedings, Etc.
(a) If after receipt of any payment of, or proceeds of any security applied (or intended to be
applied) to the payment of all or any part of, the Guaranteed Obligations, any Holder is for any
reason compelled to surrender or voluntarily surrenders (under circumstances in which it believes
it could reasonably be expected to be so compelled if it did not voluntarily surrender), such
payment or proceeds to any Person (i) because such payment or application of proceeds is or may be
avoided, invalidated, declared fraudulent, set aside, determined to be void or voidable as a
preference, fraudulent conveyance, fraudulent transfer, impermissible set-off or a diversion of
trust funds or (ii) for any other similar reason, including, without limitation, (x) any judgment,
decree or order of any court or administrative body having jurisdiction over any Holder or any of
their respective properties or (y) any settlement or compromise of any such claim effected by any
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Holder with any such claimant (including the Company), then the Guaranteed Obligations or part
thereof intended to be satisfied shall be reinstated and continue, and this Guaranty shall continue
in full force as if such payment or proceeds had not been received, notwithstanding any revocation
thereof or the cancellation of any Note or any other instrument evidencing any Guaranteed
Obligations or otherwise, and the Subsidiary Guarantors, jointly and severally, shall be liable to
pay the Holders, and hereby do indemnify the Holders and hold them harmless for, the amount of such
payment or proceeds so surrendered and all expenses (including reasonable attorneys’ fees, court
costs and expenses attributable thereto) incurred by any Holder in defense of any claim made
against any of them that any payment or proceeds received by any Holder in respect of all or part
of the Guaranteed Obligations must be surrendered. The provisions of this paragraph shall survive
the termination of this Guaranty, and any satisfaction and discharge of the Company by virtue of
any payment, court order or any Federal or state law.
(b) If an event permitting the acceleration of the maturity of any of the Guaranteed
Obligations shall at any time have occurred and be continuing, and such acceleration shall at such
time be prevented by reason of the pendency against the Company or any other Person of any case or
proceeding contemplated by Section 8(a) hereof, then, for the purpose of defining the obligation of
any Subsidiary Guarantor under this Guaranty, the maturity of the principal amount of the
Guaranteed Obligations shall be deemed to have been accelerated with the same effect as if an
acceleration had occurred in accordance with the terms of such Guaranteed Obligations, and such
Subsidiary Guarantor shall forthwith pay such principal amount, all accrued and unpaid interest
thereon, and all other Guaranteed Obligations, due or that would have become due but for such case
or proceeding, without further notice or demand.
Section 9. Term of Guaranty.
This Guaranty and all guarantees, covenants and agreements of each Subsidiary Guarantor
contained herein shall continue in full force and effect and shall not be discharged until such
time as all of the principal of and interest on the Notes, the other Guaranteed Obligations and
other independent payment obligations of such Subsidiary Guarantor under this Guaranty shall be
paid in cash and performed in full, and all of the agreements of each of the other Subsidiary
Guarantors hereunder shall be duly paid in cash and performed in full.
Section 10. Contribution.
In order to provide for just and equitable contribution among the Subsidiary Guarantors, each
Subsidiary Guarantor agrees that, to the extent any Subsidiary Guarantor makes any payment
hereunder on any date which, when added to all preceding payments made by such Subsidiary Guarantor
hereunder, would result in the aggregate payments by such Subsidiary Guarantor hereunder exceeding
its Percentage (as defined below) of all payments then or theretofore made by all Subsidiary
Guarantors hereunder, such Subsidiary Guarantor shall have a right of contribution against each
other Subsidiary Guarantor whose aggregate payments then or theretofore made hereunder are less
than its Percentage of all payments by all Subsidiary Guarantors then or theretofore made
hereunder, in an amount such that, after giving effect to any such contribution rights, each Subsidiary Guarantor will have paid only its Percentage of all
payments by all Subsidiary Guarantors then or theretofore made hereunder. A Subsidiary
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Guarantor’s “Percentage” on any date shall mean the percentage obtained by dividing (a) the Adjusted Net Assets
of such Subsidiary Guarantor on such date by (b) the sum of the Adjusted Net Assets of all
Subsidiary Guarantors on such date. “Adjusted Net Assets” means, for each Subsidiary Guarantor on
any date, the lesser of (i) the amount by which the fair value of the property of such Subsidiary
Guarantor exceeds the total amount of liabilities, including contingent liabilities, but excluding
liabilities under this Guaranty, of such Subsidiary Guarantor on such date and (ii) the amount by
which the present fair salable value of the assets of such Subsidiary Guarantor on such date
exceeds the amount that will be required to pay the probable liability of such Subsidiary Guarantor
on its debts, excluding debt in respect of this Guaranty, as they become absolute and matured.
Section 11. Limitation of Liability.
Each Subsidiary Guarantor hereby confirms that it is the intention of such Subsidiary
Guarantor that the guarantee by such Subsidiary Guarantor pursuant to this Guaranty not constitute
a fraudulent transfer or conveyance for purposes of Title 11 of the United States Code, the Uniform
Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar applicable Federal or
state law (all such statutes and laws are collectively referred to as “Fraudulent Conveyance
Laws”). To effectuate the foregoing intention, each Subsidiary Guarantor hereby irrevocably agrees
that the obligations of such Subsidiary Guarantor under this Guaranty shall be limited to the
amount as will, after giving effect to all rights to receive any collections from or payments by or
on behalf of any other Subsidiary Guarantor in respect of the obligations of such other Subsidiary
Guarantor pursuant to Section 10 hereof, result in the obligations of such Subsidiary Guarantor
under this Guaranty not constituting such a fraudulent transfer or conveyance. In the event that
the liability of any Subsidiary Guarantor hereunder is limited pursuant to this Section 11 to an
amount that is less than the total amount of the Guaranteed Obligations, then it is understood and
agreed that the portion of the Guaranteed Obligations for which such Subsidiary Guarantor is liable
hereunder shall be the last portion of the Guaranteed Obligations to be repaid.
Section 12. Negative Pledge.
Except as permitted under Section 10.4 of the Note Purchase Agreement, no Subsidiary Guarantor
will create any Lien on its assets to any other Person during the pendency of this Guaranty except
for Liens permitted by Section 10.4 of the Note Purchase Agreement.
Section 13. Supplemental Agreement.
Upon execution and delivery by a Subsidiary of a Supplemental Agreement substantially in the
form of Exhibit A hereto, such Subsidiary shall become a Subsidiary Guarantor hereunder with the
same force and effect as if originally named as a Subsidiary Guarantor herein. The execution and
delivery of any such instrument shall not require the consent of any other Subsidiary Guarantor
hereunder. The rights and obligations of each Subsidiary Guarantor hereunder shall remain in full force and effect notwithstanding the addition of any new
Subsidiary Guarantor as a party to this Guaranty.
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Section 14. Definitions and Terms Generally.
(a) Unless otherwise defined herein, capitalized terms defined in the Note Purchase Agreement
are used herein as defined therein. In addition, the following terms shall have the following
meanings.
“Adjusted Net Assets” has the meaning specified in Section 10 hereof.
“Fraudulent Conveyance Laws” has the meaning specified in Section 11 hereof.
“Guaranteed Obligations” has the meaning specified in Section 1 hereof.
“Guaranty” has the meaning specified in the introduction hereto.
“Holders” has the meaning specified in the introduction hereto.
“Material Adverse Effect” means a material adverse effect (a) on the business, financial
condition, operations or Properties of a Subsidiary Guarantor taken as a whole or (b) on its
ability to perform its obligations hereunder.
“Maximum Guaranteed Amount” shall mean, for each Subsidiary Guarantor, the maximum amount
which any Subsidiary Guarantor could pay under this Guaranty without having such payment set aside
as a fraudulent transfer or conveyance or similar action under Fraudulent Conveyance Law.
“Note Purchase Agreement” has the meanings specified in the Recitals hereto.
“Notes” has the meaning specified in the Recitals hereto.
“Percentage” has the meaning specified in Section 10 hereof.
“Required Holders” is has the meaning specified in the Note Purchase Agreement.
“Subsidiary Guarantor” has the meaning specified in the introduction hereto.
(b) Whenever the context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms. The words “include,” “includes” and “including” shall be deemed to be
followed by the phrase “without limitation.” All references herein to Articles, Sections, Exhibits
and Schedules shall be deemed references to Articles and Sections of, and Exhibits and Schedules
to, this Guaranty unless the context shall otherwise require.
Section 15. Notices.
All notices under the terms and provisions hereof shall be in writing (with charges prepaid),
and shall be delivered or sent by hand, by telecopy, by express courier service or by registered or
certified mail, return receipt requested, postage prepaid, addressed,
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(a) if to any Holder, at the address set forth in the Note Purchase Agreement, or at
such other address as any such Holder shall from time to time designate to the Company,
(b) if to a Subsidiary Guarantor, at the address of the Company as set forth in the
Note Purchase Agreement or at such other address as such Subsidiary Guarantor shall from
time to time designate in writing to each Holder.
A notice or communication shall be deemed to have been duly given and effective:
| (a) | when delivered (whether or not accepted), if personally delivered; | ||
| (b) | five business days after being deposited in the mail, postage prepaid, if delivered by first-class mail (whether or not accepted); | ||
| (c) | when sent, if sent via facsimile; | ||
| (d) | when delivered if sent by registered or certified mail (whether or not accepted); and |
| (e) | on the next Business Day if timely delivered by an overnight air courier, with charges prepaid (whether or not accepted). |
Section 16. Amendments, Etc.
No amendment, alteration, modification or waiver of any term or provision of this Guaranty,
nor consent to any departure by any Subsidiary Guarantor therefrom, shall in any event be effective
unless the same shall be in writing and consented to by the Required Holders provided, however,
that any amendment, alteration, modification or waiver of the terms and conditions contained in
Section 1 hereof shall require consent from all Holders, and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which given.
Section 17. Consent to Jurisdiction; Service of Process.
(a) Each Subsidiary Guarantor irrevocably submits to the nonexclusive in personam jurisdiction
of any New York State or federal court sitting in New York City, over any suit, action or
proceeding arising out of or relating to this Guaranty or the Notes. To the fullest extent it may
effectively do so under applicable law, each Subsidiary Guarantor irrevocably waives and
agrees not to assert, by way of motion, as a defense or otherwise, any claim that it is not subject
to the in personam jurisdiction of any such court, any objection that it may now or hereafter have
to the laying of the venue of any such suit, action or proceeding brought in any such court and any
claim that any such suit, action or proceeding brought in any such court has been brought in an
inconvenient forum.
- 16 -
(b) Each Subsidiary Guarantor agrees, to the fullest extent it may effectively do so under
applicable law, that a final judgment in any suit, action or proceeding of the nature referred to
in paragraph (a) of this Section 17 brought in any such court shall be conclusive and binding upon
such party, subject to rights of appeal and may be enforced in the courts of the United States of
America or the State of New York (or any other courts to the jurisdiction of which such party is or
may be subject) by a suit upon such judgment.
(c) Each Subsidiary Guarantor consents to process being served in any suit, action or
proceeding of the nature referred to in paragraph (a) of this Section 17 by mailing a copy thereof
by registered or certified mail, postage prepaid, return receipt requested, to the address of each
Subsidiary Guarantor specified in Section 15 or at such other address of which you shall then have
been notified pursuant to said Section or to any agent for service of process appointed pursuant to
the provisions of Section 27. Each Subsidiary Guarantor agrees that such service upon receipt (i)
shall be deemed in every respect effective service of process upon it in any such suit, action or
proceeding and (ii) shall, to the full extent permitted by law, be taken and held to be valid
personal service upon and personal delivery to such party. Notices hereunder shall be conclusively
presumed received as evidenced by a delivery receipt furnished by the United States Postal Service
or any reputable commercial delivery service.
(d) Nothing in this Section 17 shall affect the right of any holder of Notes to serve process
in any manner permitted by law, or limit any right that the holders of any of the Notes may have to
bring proceedings against any Subsidiary Guarantor in the courts of any appropriate jurisdiction or
to enforce in any lawful manner a judgment obtained in one jurisdiction in any other jurisdiction.
Section 18. Waiver of Jury Trial.
Each Subsidiary Guarantor and by its acceptance hereof each holder, to the fullest extent
permitted by applicable law, irrevocably and unconditionally waives the right to trial by jury in
any legal or equitable action, suit or proceeding arising out of or relating to this Guaranty or
the Note Purchase Agreement or any transaction contemplated hereby or thereby or the subject matter
of any of the foregoing.
Section 19. Survival.
All warranties, representations and covenants made by each Subsidiary Guarantor herein or in
any written certificate or other instrument required to be delivered by it or on its behalf
hereunder or under the Note Purchase Agreement shall be considered to have been relied upon by
the Holders and shall survive the execution and delivery of this Guaranty, regardless of any
investigation made by any Holder or on such Holder’s behalf. All statements in any such
certificate or other instrument shall constitute warranties and representations by such Subsidiary
Guarantor hereunder.
- 17 -
Section 20. Severability.
Any provision of this Guaranty which is prohibited or unenforceable in any jurisdiction shall,
as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability
without invalidating the remaining provisions hereof, and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision in any other
jurisdiction. To the extent permitted by applicable law, each Subsidiary Guarantor hereby waives
any provision of law that renders any provisions hereof prohibited or unenforceable in any respect.
Section 21. Successors and Assigns.
The terms of this Guaranty shall be binding upon each Subsidiary Guarantor and its successors
and assigns and shall inure to the benefit of the Holders and their respective successors and
assigns.
Section 22. Table of Contents; Headings.
The section and paragraph headings in this Guaranty and the table of contents are for
convenience of reference only and shall not modify, define, expand or limit any of the terms or
provisions hereof, and all references herein to numbered sections, unless otherwise indicated, are
to sections in this Guaranty.
Section 23. Counterparts.
This Guaranty may be executed in any number of counterparts, each of which shall be an
original, but all of which together shall constitute one instrument.
Section 24. Governing Law.
This Guaranty shall in all respects be governed by, and construed and interpreted in
accordance with, the laws of the State of New York, without regard to the conflicts of laws
principles of such state.
Section 25. Release.
Notwithstanding any other provision hereof to the contrary, including without limitation
Section 3(c)(v), 3(c)(xiv), 3(c)(xv) and Section 9, a Subsidiary Guarantor shall be released from
its guaranty hereunder pursuant to and in accordance with Section 2.3(b) of the Note Purchase
Agreement.
- 18 -
Section 26. Covenant Compliance.
Each Subsidiary Guarantor agrees to comply with each of the covenants contained herein and in
the Note Purchase Agreement that imposes or purports to impose, by reference to such Subsidiary
Guarantor, express or otherwise, through agreements with the Company, restrictions or obligations
on such Subsidiary Guarantor.
- 19 -
In Witness Whereof, each party hereto has caused this Guaranty to be duly
executed as of the date first above written.
| Americrown Service Corporation Event Equipment Leasing, LLC International Speedway, Inc. Kansas Speedway Corporation Motorsports Acceptance Corporation |
||||
| By: | /s/ Xxxxxx X. Xxxxxx | |||
| Name: | Xxxxxx X. Xxxxxx | |||
| Title: | Treasurer | |||
| The California Speedway Corporation Chicago Holdings, Inc. Daytona International Speedway, LLC Miami Speedway Corp. Michigan International Speedway, Inc. Martinsville International, Inc. The Motorsports Alliance, LLC Phoenix Speedway Corp. Richmond International Raceway, Inc. Raceway Associates, LLC Talladega Superspeedway, LLC |
||||
| By: | /s/ Xxxxx X. Xxxxxxxxx | |||
| Name: | Xxxxx X. Xxxxxxxxx | |||
| Title: | Assistant Secretary | |||
| HBP, Inc. | ||||
| By: | /s/ Xxxxx X. Xxxxxxxxx | |||
| Name: | Xxxxx X. Xxxxxxxxx | |||
| Title: | President | |||
| XXX.XXX, LLC | ||||
| By: | /s/ Xxxxx X. Xxxxxxxxx | |||
| Name: | Xxxxx X. Xxxxxxxxx | |||
| Title: | Secretary | |||
- 20 -
Exhibit A
Form of Supplemental Agreement
Supplemental Agreement dated as of ____________, ____ from ______________, a _______
corporation (the “New Subsidiary”), for the benefit of the Holders (as defined in the Guaranty
referred to below). Capitalized terms used herein without definition shall have the respective
meanings ascribed thereto in the Subsidiary Guaranty Agreement, dated as of ________, 20__ (the
“Guaranty”), from each of the Subsidiaries signatory thereto and such other Subsidiaries as shall
become parties thereto in accordance therewith, for the benefit of the Holders (as such term is
defined in such Guaranty).
Whereas,
International Speedway Corporation, a Florida corporation (the “Company”),
has issued and sold $__________ ___% Series 2011A Senior Notes due January [6], 2021 (the “Series
2011A Notes”), pursuant to the Note Purchase Agreement, dated as of January [6], 2011 (as amended,
modified or supplemented from time to time, the “Note
Purchase Agreement”) among the Company and
the purchasers named therein.
Whereas, the Company is authorized to issue Additional Notes (as such term is defined
in the Note Purchase Agreement) of one or more separate series from time to time in an aggregate
principal amount not to exceed $400,000,000 pursuant to Section 2.2 of the Note Purchase Agreement.
Whereas, the Additional Notes together with the Series 2011A Notes are collectively
referred to as the “Notes”.
Whereas, the New Subsidiary is a Subsidiary of the Company.
Whereas, certain of the existing Subsidiaries of the Company have entered into the
Guaranty.
Whereas, the Note Purchase Agreement requires that certain Subsidiaries become party
to the Guaranty (as a Subsidiary Guarantor).
Whereas, the New Subsidiary acknowledges that it will derive substantial benefits
from the issuance of the Notes.
Whereas, the Guaranty specifies that additional Subsidiaries may become Subsidiary
Guarantors under such Guaranty by execution and delivery of an instrument in the form of this
Agreement. The undersigned Subsidiary is executing this Agreement in accordance with the
requirements of the Note Purchase Agreement in order to become a Subsidiary Guarantor under the
Guaranty as consideration for the Notes previously purchased.
Now, Therefore, the New Subsidiary Guarantor agrees as follows:
Section 1. Guaranty. In accordance with Section 13 of the Guaranty, the New Subsidiary by its
signature hereto shall become a Subsidiary Guarantor under such Guaranty with the same force and
effect as if originally named therein as a Subsidiary Guarantor and the New Subsidiary hereby (a)
agrees to all the terms and provisions of such Guaranty applicable to it as a Subsidiary Guarantor
thereunder, (b) represents and warrants that the representations and warranties made by it as a
Subsidiary Guarantor are true and correct on and as of the date hereof with the same effect as
though made on and as of the date hereof, (c) acknowledges receipt of a copy of and agrees to be
obligated and bound by the terms of such Guaranty, and (d) agrees that each reference to a
“Subsidiary Guarantor” in such Guaranty shall be deemed to include the New Subsidiary.
Section 2. Enforceability. The New Subsidiary hereby represents and warrants that this
Agreement has been duly authorized, executed and delivered by the New Subsidiary and constitutes a
legal, valid and binding obligation of the New Subsidiary enforceable against it in accordance with
its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting the applicability of creditors’ rights generally and by
equitable principles of general applicability (regardless of whether such enforceability is
considered in a proceeding in equity or at law).
Section 3. Effect on Guaranty. Except as expressly supplemented hereby, the Guaranty shall
continue in full force and effect.
Section 4. Governing Law. This Agreement shall in all respects be governed by,
and construed and interpreted in accordance with, the laws of the State of New York, without regard
to the conflicts of laws principles of such state.
Section 5. Savings Clause. To the fullest extent permitted under applicable law, in the event
any one or more of the provisions contained in this Agreement should be held invalid, illegal or
unenforceable in any respect with respect to the New Subsidiary, no party hereto shall be required
to comply with such provision for so long as such provision is held to be invalid, illegal or
unenforceable, and the validity, legality and enforceability of the remaining provisions contained
herein shall not in any way be affected or impaired. The parties shall endeavor in good-faith
negotiations to replace any invalid, illegal or unenforceable provisions with valid provisions, the
economic effect of which comes as close as possible to that of the invalid, illegal or
unenforceable provisions.
Section 6. Notices. All communications to the New Subsidiary shall be given to it at the
address or telecopy number set forth under its signature hereto.
- 2 -
In Witness Whereof, the New Subsidiary has duly executed this Agreement as of the day
and year first above written.
| [New
Subsidiary] |
||||
| By: | ||||
| Name: | ||||
| Title: | ||||
| Address: | ||||
| Telecopy: |
||||
- 3 -
