Exhibit 10.1


 





Execution
Version

 


 


SIXTH AMENDMENT TO AMENDED AND RESTATED
CREDIT AGREEMENT


 


THIS SIXTH AMENDMENT
TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”), dated as of September 17, 2020, is by and among
CRAFT BREW ALLIANCE, INC., a Washington corporation (the “Borrower”), the Guarantors party hereto, and
BANK OF AMERICA, N.A., as lender (in such capacity, the “Lender”). Capitalized terms used herein and
not otherwise defined herein shall have the meanings ascribed thereto in the Credit Agreement.


 


W I T N E S S E T H


 


WHEREAS, the
Borrower, the Subsidiaries of the Borrower from time to time party thereto (the “Guarantors”), and the Lender
are parties to that certain Amended and Restated Credit Agreement, dated as of November 30, 2015 (as amended, modified, extended,
restated, replaced, or supplemented from time to time in accordance with its terms, the “Credit Agreement”);


 


WHEREAS, the
Loan Parties have requested that the Lender amend certain provisions of the Credit Agreement; and


 


WHEREAS, the
Lender is willing to make such amendments to the Credit Agreement in accordance with, and subject to, the terms and conditions
set forth herein.


 


NOW, THEREFORE,
in consideration of the agreements hereinafter set forth, and for other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, the parties hereto agree as follows:


 


Article
I

AMENDMENTS


 


1.1      
Amendment to Section 7.11. Section 7.11 of the Credit
Agreement is hereby amended and restated in its entirety to read as follows:


 


“(a)     Consolidated
Leverage Ratio. Commencing with the earlier to occur of (i) October 1, 2020 or (ii) the termination of the A-B Merger, as of
the last day of any fiscal quarter during any Measurement Period, permit the Consolidated Leverage Ratio to be greater than 3.50
to 1.00.


 


(b)       Consolidated
Fixed Charge Coverage Ratio. Commencing with the earlier to occur of (i) October 1, 2020 or (ii) the termination of the A-B
Merger, permit the Consolidated Fixed Charge Coverage Ratio at any time to be less than 1.20 to 1.00.


 


(c)       Minimum
Consolidated EBITDA. For the Measurement Period ending September 30, 2020, permit the Consolidated EBITDA as of the end of
such Measurement Period to be less than $3,000,000.”


 


Article
II

CONDITIONS TO EFFECTIVENESS


 


2.1              
Closing Conditions. This Amendment shall become effective as of the day and year set forth above (the “Amendment
Effective Date”) upon satisfaction of the following conditions (in each case, in form and substance reasonably acceptable
to the Lender):


 






     


     


    

 


(a)               
Executed Amendment. The Lender shall have received a copy of this Amendment duly executed by each of the Loan Parties
and the Lender.


 


(b)               
Fees and Expenses. The Lender shall have received from the Borrower other fees and expenses that are payable in connection
with the consummation of the transactions contemplated hereby and Lender’s legal counsel shall have received from the Borrower
payment of all outstanding fees and expenses previously incurred and all fees and expenses incurred in connection with this Amendment.


 


(c)               
Default. After giving effect to this Amendment, no Default or Event of Default shall exist.


 


(d)               
Miscellaneous. All other documents and legal matters in connection with the transactions contemplated by this Amendment
shall be reasonably satisfactory in form and substance to the Lender and its counsel.


 


Article
III

MISCELLANEOUS


 


3.1          
Amended Terms. On and after the Amendment Effective Date, all references to the Credit Agreement in each of the
Loan Documents shall hereafter mean the Credit Agreement as amended by this Amendment. Except as specifically amended hereby or
otherwise agreed, the Credit Agreement and the other Loan Documents are hereby ratified and confirmed, including the Liens granted
thereunder, and shall remain in full force and effect according to its terms. For the avoidance of doubt, this Amendment shall
not be deemed to prejudice any right or rights which the Borrower or the Lenders may now have or may have in the future under or
in connection with the Consent, dated as of June 5, 2020, by and among the Borrower, the Guarantors and the Lender, as the same
may be amended, restated, supplemented or modified from time to time.


 


3.2          
Representations and Warranties of Loan Parties. Each of the Loan Parties represents and warrants as follows:


 


(a)               
It has taken all necessary action to authorize the execution, delivery and performance of this Amendment.


 


(b)              
This Amendment has been duly executed and delivered by such Person and constitutes such Person’s legal, valid and
binding obligation, enforceable in accordance with its terms, except as such enforceability may be subject to (i) bankruptcy,
insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting creditors’ rights generally
and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding at law or in
equity).


 


(c)               
No consent, approval, authorization or order of, or filing, registration or qualification with, any court or governmental
authority or third party is required in connection with the execution, delivery or performance by such Person of this Amendment.


 


(d)              
The representations and warranties of the Borrower and each other Loan Party contained in Article II of the Credit
Agreement, Article V of the Credit Agreement or made in any other Loan Document, or which are contained in any document
furnished at any time under or in connection herewith or therewith, are (i) with respect to representations and warranties that
contain a materiality qualification, true and correct on and as of the date of the Amendment Effective Date and (ii) with respect
to representations and warranties that do not contain a materiality qualification, true and correct in all material respects on
and as of the date of the Amendment Effective Date, except that for purposes of this Section 3.2(d), (x) the representations
and warranties contained in Sections 5.05(a) and (b) of the Credit Agreement shall be deemed to refer to the most
recent statements furnished pursuant to Sections 6.01(a) and (b) of the Credit Agreement, respectively and (y) the
temporary closure of the Loan Parties’ brewpub locations and other operational disruptions affecting the Loan Parties, in
each case as a direct result of the COVID-19 pandemic, shall not be deemed to constitute a Material Adverse Effect (or account
for any portion thereof) under clause (a) of the definition thereof.


 






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(e)              
After giving effect to this Amendment, no event has occurred and is continuing which constitutes a Default or an Event of
Default.


 


(f)               
The Collateral Documents continue to create a valid security interest in, and Lien upon, the Collateral, in favor of the
Lender, for the benefit of the Lender, which security interests and Liens are perfected in accordance with the terms of the Collateral
Documents and prior to all Liens other than Permitted Liens.


 


(g)               
Except as specifically provided in this Amendment, the Obligations are not reduced or modified by this Amendment and are
not subject to any offsets, defenses or counterclaims.


 


3.3             
Reaffirmation of Obligations. Each Loan Party hereby ratifies the Credit Agreement and each other Loan Document
to which it is a party and acknowledges and reaffirms (a) that it is bound by all terms of the Credit Agreement and each other
Loan Document applicable to it and (b) that it is responsible for the observance and full performance of its respective Obligations.


 


3.4             
Loan Document. This Amendment shall constitute a Loan Document under the terms of the Credit Agreement.


 


3.5             
Expenses. The Loan Parties agree to pay all reasonable out-of-pocket expenses incurred by the Lender and its
Affiliates (including the reasonable fees, charges and disbursements of counsel for the Lender), in connection with the preparation,
negotiation, execution and delivery and administration of this Amendment.


 


3.6             
Further Assurances. The Loan Parties agree to promptly take such action, upon the request of the Lender, as is
necessary to carry out the intent of this Amendment.


 


3.7             
Entirety. This Amendment and the other Loan Documents embody the entire agreement among the parties hereto and
supersede all prior agreements and understandings, oral or written, if any, relating to the subject matter hereof.


 


3.8             
Counterparts. This Amendment may be executed in any number of counterparts, each of which when so executed and
delivered shall be an original, but all of which shall constitute one and the same instrument. Delivery of an executed counterpart
of a signature page of this Amendment by fax transmission or e-mail transmission (e.g., “pdf” or “tif”)
shall be effective as delivery of a manually executed counterpart of this Amendment.


 


3.9             
No Actions, Claims, Etc. As of the date hereof, each of the Loan Parties hereby acknowledges and confirms that
it has no knowledge of any actions, causes of action, claims, demands, damages and liabilities of whatever kind or nature, in law
or in equity, against the Lender or the Lender’s respective officers, employees, representatives, agents, counsel or directors
arising from any action by such Persons, or failure of such Persons to act under the Credit Agreement on or prior to the date hereof.


 






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3.10         
GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF OREGON.


 


3.11          
Successors and Assigns. This Amendment shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns.


 


3.12          
Dispute Resolution; Waiver of Jury Trial. The dispute resolution and waiver of jury trial provisions set forth
in Section 9.14 of the Credit Agreement are hereby incorporated by reference, mutatis mutandis.


 


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IN WITNESS WHEREOF
the parties hereto have caused this Amendment to be duly executed on the date first above written.


 


BORROWER:  




 


	 	CRAFT BREW ALLIANCE, INC., as the Borrower




 


	 	By:	/s/ Andrew J. Thomas
	 	Name:	Andrew J. Thomas
	 	Title:	Chief Executive Officer


 


	GUARANTORS:
	 	 	 
	 	KONA BREWERY LLC, as a Guarantor
	 	 	 
	 	By:	/s/ Andrew J. Thomas
	 	Name:	Andrew J. Thomas
	 	Title:	Manager


 


	 	CRAFT VENTURES, LLC, as a Guarantor
	 	 
	 	By: Craft Brew Alliance, Inc., its Manager
	 	 
	 	By:	/s/ Andrew J. Thomas
	 	Name:	Andrew J. Thomas
	 	Title:	Chief Executive Officer
	 	 	 
	 	WYNWOOD BREWING COMPANY LLC, as a Guarantor
	 	 
	 	By:	/s/ Andrew J. Thomas
	 	Name:	Andrew J. Thomas
	 	Title:	Manager


 


Craft Brew Alliance, Inc.


Sixth Amendment to Amended and Restated Credit Agreement


Signature Page


 






     


     


    

 


	LENDER:	BANK OF AMERICA, N.A., as Lender
	 	 	 
	 	 	 
	 	By:	/s/ Michael Snook
	 	Name: 	 Michael Snook
	 	Title:	Senior Vice President


 


Craft Brew Alliance, Inc.


Sixth Amendment to Amended and Restated Credit Agreement


Signature Page