Document:

mcft-ex101_115.htm

Exhibit 10.20

 

Execution Copy

 

SECOND AMENDMENT TO CREDIT AGREEMENT

 

THIS SECOND AMENDMENT TO CREDIT AGREEMENT (“Amendment”), dated as of August 31, 2022, is made and entered into on the terms and conditions hereinafter set forth, by and among MASTERCRAFT BOAT HOLDINGS, INC., a Delaware corporation (the “Borrower”), the other Loan Parties party hereto, the several banks and other financial institutions or entities from time to time party to the Credit Agreement (as defined below) as Lenders, and JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, in its capacities as a Lender, issuer of letters of credit and administrative agent (in such capacity, the “Administrative Agent”) under the Credit Agreement.  Capitalized terms used and not otherwise defined in this amendment shall have the meaning assigned to such terms in the Credit Agreement.

 

 

W I T N E S S E T H:

 

WHEREAS, pursuant to that certain Credit Agreement dated as of June 28, 2021 among the Borrower, the other Loan Parties thereto, the Administrative Agent, and each Lender from time to time party thereto (as heretofore amended, modified, supplemented or altered, the “Existing Credit Agreement” and as the same may be amended, restated, supplemented, altered or otherwise modified from time to time, including this Amendment, the “Credit Agreement”), the Lenders agreed to make Loans as more specifically described in the Credit Agreement; and

 

WHEREAS, the Loan Parties have requested that the Lenders modify the terms of the Credit Agreement, and the Administrative Agent and the Lenders are willing to do so on the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.Amendments to the Existing Credit Agreement. Effective as of the date first above written, and subject to the satisfaction of the conditions to effectiveness set forth herein, the Existing Credit Agreement (but, except as otherwise expressly set forth in the conformed Credit Agreement attached as Annex I hereto, not the Schedules and Exhibits attached thereto) is hereby amended in its entirety to be in the form of Annex I attached hereto.

 

2.Consent and Waivers by the Administrative Agent and the Lenders related to Nautic Star.

 

 

 

	
 
	
(a)
	
The Loan Parties desire to sell the assets of Nautic Star, LLC and NS Transport,

	
 
		
 

LLC in one or more transactions (each a “Nautic Star Asset Sale” collectively, the “Nautic Star Asset Sales”). The Loan Parties have acknowledged that the Nautic Star Asset Sales are restricted pursuant to Sections 6.03(a), 6.05 and 6.14(b) of the Credit Agreement and have requested that the Administrative Agent and the Lenders waive such provisions and consent to the Nautic Star Asset Sales.

 

(b)Subject to and upon the terms and conditions of this Amendment, the Administrative Agent and the Lenders hereby consent to each Nautic Star Asset Sale occurring and consummated on or before December 31, 2022 (which date may be extended in writing by the Administrative Agent in its sole discretion) and waive the restrictions under Sections 6.03(a),

6.05 and 6.14(b) of the Credit Agreement applicable thereto, and shall release the Collateral

 

 

 

 

pledged by Nautic Star, LLC and NS Transport, LLC under the Loan Documents that is sold in such Nautic Star Asset Sale subject to and conditioned upon the following as to each such Nautic Star Asset Sale: (i) both before and after giving effect to such Nautic Star Asset Sale, each of the representations and warranties in the Loan Documents is true and correct (except any such representation or warranty which relates to a specified prior date) and no Default or Event of Default exists, will exist, or would result therefrom and (ii) if such Nautic Star Asset Sale occurs on or after the date that is fifteen (15) days after the date of this Amendment and the total consideration for such Nautic Star Asset Sale exceeds $1,000,000, not less than ten (10) days prior to such Nautic Star Asset Sale, the Borrower shall have provided to the Administrative Agent notice and a summary of such Nautic Star Asset Sale (to include a description of the assets to be sold, the buyer, the purchase price and total consideration) and such other business and financial information reasonably requested by the Administrative Agent. Each Nautic Star Asset Sale that is permitted under this Section and for which the conditions under this Section are satisfied shall be deemed and qualify as a “permitted disposition” under the definition of EBITDA in Section 1.01 of the Credit Agreement and as a “Disposition outside the ordinary course of business permitted by Section 6.05” for purposes of Section 1.06 of the Credit Agreement, the aggregate amount of all non-recurring fees, costs, and expenses incurred in connection with all Nautic Star Asset Sales shall not exceed $5,000,000. 

 

(c)Furthermore, subject to and upon the terms and conditions of this Amendment, if Nautic Star, LLC sells all of its assets in accordance with the terms hereof, the Administrative Agent and the Lenders hereby consent to the dissolution and/or termination of Nautic Star, LLC and NS Transport, LLC, waive the restrictions under Sections 5.03 and 6.03(a) of the Credit Agreement applicable thereto and consent to the release of Nautic Star, LLC and NS Transport, LLC from their obligations under the Loan Documents and the release of all of the Collateral pledged by Nautic Star, LLC and NS Transport, LLC under the Loan Documents (which releases shall be in writing and in form and substance acceptable to the Administrative Agent), all of the foregoing being subject to and conditioned upon the following: (i) both before and after giving effect to such dissolution, termination or release, each of the representations and warranties in the Loan Documents is true and correct (except any such representation or warranty which relates to a specified prior date) and no Default or Event of Default exists, will exist, or would result therefrom and (ii) not less than ten (10) days prior to such dissolution or termination, the Borrower shall have provided to the Administrative Agent notice thereof and such other business and financial information reasonably requested by the Administrative Agent

 

(d)The foregoing consents and waivers shall not constitute a consent to or waiver of any other provisions of the Credit Agreement, no hinder, restrict or otherwise modify the Administrative Agent’s or the Lenders’ rights and remedies following the occurrence of any Default or Event of Default under the Credit Agreement or any other Loan Documents. Except as otherwise expressed herein, the Credit Agreement and the other Loan Documents shall remain in full force and effect and the Administrative Agent and the Lenders hereby reserve the right to require strict compliance in the future with all terms and conditions of the Credit Agreement and the other Loan Documents.

 

(e)Without limiting the foregoing or any other requirement or provision in the Loan Documents, the Loan Parties hereby acknowledge that they shall comply with Section 2.11(c) under the Credit Agreement as to each Nautic Star Asset Sale.

 

3.Conditions to Effectiveness.This Amendment shall be effective only upon the satisfaction of the following conditions:

 

2

 
 

 

 

(a)the Administrative Agent shall have received counterparts of this Amendment that, when taken together, bear the signatures of Lenders constituting the Required Lenders, as well as signatures of each Loan Party;

 

(b)each of the representations and warranties of the Loan Parties contained in this Amendment shall be true and correct in all material respects as of the date as of which all of the other conditions contained in this Section shall have been satisfied (except to the extent that such representations and warranties relate solely to an earlier date); and

 

(c)the Administrative Agent shall have received such documents, instruments, certificates, opinions and approvals as it reasonably may have requested.

 

4.Organization, Good Standing, Requisite Power and Authorization, Enforceability. Each Loan Party is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization. Each Loan Party has all requisite power, authority and legal right to execute and deliver, on behalf of such Loan Party, this Amendment, any other Loan Documents and other instruments and documents to be executed and delivered by such Loan Party pursuant to this Amendment, to perform and observe the provisions thereof and to carry out the transactions contemplated thereby. All actions on the part of each Loan Party that are required for the execution and delivery of this Amendment and the other Loan Documents and the performance and observance of the provisions thereof by such Loan Party have been duly authorized and effectively taken.

 

5.Representations and Warranties. The Loan Parties each represent and warrant that, except for representations and warranties made as of a particular date, the representations and warranties set forth in Article III of the Credit Agreement are true and correct in all material respects on and as of the date of this Amendment, and that no Default or Event of Default exists and is continuing under the Credit Agreement or any other documents executed in connection herewith.

 

6.Effect of Amendment; Continuing Effectiveness of Credit Agreement and Loan Documents.

 

(a)Neither this Amendment nor any other indulgences or waivers provided herein that may have been granted to any Loan Party by the Administrative Agent or any Lender shall constitute a course of dealing or otherwise obligate the Administrative Agent or any Lender to modify, expand or extend the agreements contained herein, to agree to any other amendments to the Credit Agreement or to grant any consent to, waiver of or indulgence with respect to any other noncompliance with any provision of the Loan Documents.

 

(b)This Amendment shall constitute a Loan Document for all purposes of the Credit Agreement and the other Loan Documents. Subject to any grace or cure periods in the Credit Agreement or herein, any material noncompliance by any Loan Party with any of the covenants, terms, conditions or provisions of this Amendment shall constitute an Event of Default. Except to the extent amended hereby, the Credit Agreement, the other Loan Documents and all terms, conditions and provisions thereof shall continue in full force and effect in all respects and each Loan Party hereby expressly reaffirms and ratifies its continuing obligations under the Credit Agreement and the other Loan Documents.

 

7.Release and Waiver. Each Loan Party hereby acknowledges and stipulates that it has no claims or causes of action of any kind whatsoever against the Administrative Agent, any Lender, and their respective affiliates, officers, directors, employees or agents. Each Loan Party represents that it is entering into this Amendment freely, and with the advice of counsel as to its legal alternatives. Each

 

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Loan Party hereby releases the Administrative Agent, the Lenders, and their respective affiliates, officers, directors, employees and agents, from any and all claims, causes of action, demands and liabilities of any kind whatsoever whether direct or indirect, fixed or contingent, liquidated or unliquidated, disputed or undisputed, known or unknown, which any Loan Party have relating in any way to any event, circumstance, action or failure to act to the date of this Amendment. The release by the Loan Parties herein, together with the other terms and provisions of this Amendment, are executed by each Loan Party advisedly and without coercion or duress from the Administrative Agent or any Lender, such Loan Party having determined that the execution of this Amendment, and all its terms and provisions are in the Loan Parties' economic best interest.

 

8.Counterparts. This Amendment may be executed in multiple counterparts or copies, each of which shall be deemed an original hereof for all purposes. One or more counterparts or copies of this Amendment may be executed by one or more of the parties hereto, and some different counterparts or copies executed by one or more of the other parties. Each counterpart or copy hereof executed by any party hereto shall be binding upon the party executing same even though other parties may execute one or more different counterparts or copies, and all counterparts or copies hereof so executed shall constitute but one and the same agreement. Each party hereto, by execution of one or more counterparts or copies hereof, expressly authorizes and directs any other party hereto to detach the signature pages and any corresponding acknowledgment, attestation, witness or similar pages relating thereto from any such counterpart or copy hereof executed by the authorizing party and affix same to one or more other identical counterparts or copies hereof so that upon execution of multiple counterparts or copies hereof by all parties hereto, there shall be one or more counterparts or copies hereof to which is(are) attached signature pages containing signatures of all parties hereto and any corresponding acknowledgment, attestation, witness or similar pages relating thereto.

 

 

[Remainder of Page Intentionally Left Blank. Signatures pages follow.]

 

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

 

 

		
	
 
	
MASTERCRAFT BOAT HOLDINGS INC.

 

By/s/ Timothy M. Oxley
Timothy M. Oxley
Chief Financial Officer, Treasurer &
Secretary

 

	
 
	
MASTERCRAFT BOAT COMPANY, LLC

 

By/s/ Timothy M. Oxley
Timothy M. Oxley
Chief Financial Officer, Treasurer &
Secretary

 

	
 
	
MASTERCRAFT SERVICES, LLC

 

By/s/ Timothy M. Oxley
Timothy M. Oxley
Chief Financial Officer, Treasurer &
Secretary

 

	
 
	
MASTERCRAFT INTERNATIONAL SALES ADMINISTRATION, INC.

 

By/s/ Timothy M. Oxley
Timothy M. Oxley
Chief Financial Officer, Treasurer &
Secretary

 

 

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NAUTIC STAR, LLC

 

By/s/ Timothy M. Oxley
Timothy M. Oxley
Chief Financial Officer, Treasurer &
Secretary

 

	
 
	
NS TRANSPORT, LLC

 

By/s/ Timothy M. Oxley
Timothy M. Oxley
Chief Financial Officer, Treasurer &
Secretary

 

	
 
	
CREST MARINE LLC

 

By/s/ Timothy M. Oxley
Timothy M. Oxley
Chief Financial Officer, Treasurer &
Secretary

 

	
 
	
AVIARA BOATS, LLC

 

By/s/ Timothy M. Oxley
Timothy M. Oxley
Chief Financial Officer, Treasurer &
Secretary

 

 

6
 

 

 

		
	
 
	
JPMORGAN CHASE BANK, N.A., individually, and as Administrative Agent, Swingline Lender and Issuing Bank

 

By/s/ Brandon Abney
Brandon Abney
Authorized Officer

 

 

7
 

 

 

		
	
 
	
FIFTH THIRD BANK

 

By/s/ Jerry C. Greene
Jerry C. Green
SVP

 

 

8
 

 

 

		
	
 
	
BMO HARRIS BANK, N.A.

 

By/s/ Chris Spillane
Chris Spillane
Director

 

 

9
 

 

 

		
	
 
	
PINNACLE BANK

 

By/s/ Michael Kohl
Michael Kohl
Financial Advisor

 

 

10
 

 

 

		
	
 
	
UNITED COMMUNITY BANK

 

By/s/ Jeff Wilson
Jeff Wilson
VP

 

 

11Exhibit 10.1

       

      KRONOS BIO, INC.

      NON-EMPLOYEE DIRECTOR COMPENSATION POLICY

      ADOPTED: SEPTEMBER 30, 2020

      AMENDED: FEBRUARY 16, 2022

      

      

      Each member of the Board of Directors (the “Board”) of
        Kronos Bio, Inc. (the “Company”) who is a non-employee director of the Company (each such member, a “Non-Employee Director”) will receive the compensation described in this Non-Employee Director Compensation Policy (this “Director Compensation Policy”) for his or her Board service.

       

      This Director Compensation Policy may be amended at any time in the sole discretion of the Board or the Compensation Committee of the Board.

       

      A Non-Employee Director may decline all or any portion of his or her compensation by giving notice to the Company prior to the date cash is to be paid or equity awards
        are to be granted, as the case may be.

       

      	I.	
              Annual Cash Compensation

            

       

      Each Non-Employee Director will receive the cash compensation set forth below for service on the Board. The annual cash compensation amounts will be payable in equal
        quarterly installments, in arrears, following the end of each quarter in which the service occurred, pro-rated for any partial months of service. All annual cash fees are vested upon payment.

      

      

      	1.	
              Annual Board Service Retainer:

            

      
         

        

        	 	a.	
                All Non-Employee Directors: $40,000

              

      

      

      

      	2.	
              Annual Board Chair Service Retainer (in lieu of Annual Board Service Retainer):

            

      
         

        

        	 	a.	
                Chairman of the Board: $70,000

              

      

      

      

      	3.	
              Annual Committee Member Service Retainer:

            

       

      

      
        	 	a.	
                Member of the Audit Committee: $7,500

              

        

        

        	 	b.	
                Member of the Compensation Committee: $5,000

              

        

        

        	 	c.	
                Member of the Nominating and Corporate Governance Committee: $4,000

              

      

      

      

      	4.	
              Annual Committee Chair Service Retainer (in lieu of Committee Member Service Retainer):

            

      
         

        

        	 	a.	
                Chairman of the Audit Committee: $15,000

              

        

        

        	 	b.	
                Chairman of the Compensation Committee: $10,000

              

        

        

        	 	c.	
                Chairman of the Nominating and Corporate Governance Committee: $8,000

              

      

      

      

      	II.	
              Equity Compensation

            

       

      Equity awards will be granted under the Company’s 2020 Equity Incentive Plan (the “Plan”). All stock options granted under this Director Compensation Policy will be Nonstatutory Stock Options (as defined in the Plan), with a term of ten years from the date of grant and an exercise
        price per share equal to 100% of the Fair Market Value (as defined in the Plan) of the underlying common stock of the Company (the “common stock”)

        on the date of grant.

       

      

      
        
          

      

      (a) Automatic Equity Grants.

       

      (i) Initial Grants. Without any further action of the Board, each person who is elected or appointed for the first time to be a Non-Employee Director will automatically, upon the
        date of his or her initial election or appointment to be a Non-Employee Director (or, if such date is not a market trading day, the first market trading day immediately thereafter), be granted an initial equity grant with a target dollar value of
        $670,000 (the “Initial Grant”), subject to the
        share limits set forth in Section II(c)(iii) below. The Initial Grant will vest in three annual installments over a three-year period measured from the date of grant. Subject to Section II(d) below, a Non-Employee Director may elect to receive the
        Initial Grant as (A) 100% stock options, (B) 100% restricted stock units (“RSUs”), or (C) 50% stock options and 50% RSUs; provided, that if
        a Non-Employee Director does not timely make such election, the Initial Grant shall be made as 100% stock options.

       

      (ii) Annual Grants. Without any further
        action of the Board, at the close of business on the date of each annual meeting of stockholders, each person who is then a Non-Employee Director will automatically be granted an annual equity grant with a target dollar value of $335,000 (the “Annual Grant”), subject to the share limits set forth in Section II(c)(iii) below. Each Annual Grant will vest
        upon the earlier of (A) the first anniversary of the date of grant and (B) the date of the next annual meeting of stockholders. Subject to Section II(d) below, a Non-Employee Director may elect to receive the Annual Grant as (1) 100% stock options,
        (2) 100% RSUs, or (3) 50% stock options and 50% RSUs; provided, that if a Non-Employee Director does not timely make such election, the Annual Grant shall be made as 100% stock options.  Annual Grants (including the maximum number of shares that
        may be subject to such Annual Grants) for Non-Employee Directors who were initially appointed or elected to the Board during the 12 months preceding the date of the Annual Grant will be prorated on a monthly basis for time in service. For example,
        if the Annual Grant is made on June 1, 2022, and the Non-Employee Director was initially appointed or elected to the Board on March 1, 2022, then such Non-Employee Director would receive an Annual Grant on June 1, 2022, with a target dollar value
        of $83,750 (which is equal to 25% of the non-prorated Annual Grant amount); provided, that the total number of shares of common stock subject to the Annual Grant may not exceed 8,500 (which is equal to 25% of the non-prorated maximum number of
        shares that may be subject to an Annual Grant).

       

      (b) Vesting; Change in Control. Vesting of Initial Grants and Annual Grants is subject to the Non-Employee Director’s “Continuous Service” (as defined in the Plan) through each applicable vesting date. Notwithstanding the foregoing vesting schedules, for each Non-Employee Director who remains in Continuous Service with the Company until
        immediately prior to the closing of a “Change in Control” (as defined in the Plan), the shares subject to his or her then-outstanding
        equity awards that were granted pursuant to this Director Compensation Policy will become fully vested as of immediately prior to the closing of such Change in Control.

       

      (c) Calculation of Shares Subject to Equity Grants. The
        number of shares of common stock subject to each Initial Grant and Annual Grant will be calculated as provided below.

       

      (i) Shares
          Subject to Stock Options. The number of shares of common stock subject to an equity grant of stock options will be calculated by (A) multiplying (1)
        the applicable percentage of stock options elected pursuant to Section II(d) below and (2) the target dollar value of the Initial Grant or Annual Grant, and then (B) dividing the resulting dollar amount by the Black-Scholes value of a Company stock
        option on the grant date, with the resulting number of shares rounded down to the nearest whole share, subject to the applicable share limit set forth in Section II(c)(iii) below.

       

      (ii) Shares Subject to RSUs. The number of shares of common stock subject to an equity grant of RSUs will be calculated by (A) multiplying (1) the applicable percentage of RSUs elected
        pursuant to Section II(d) below by (2) the target dollar value of the Initial Grant or Annual Grant, and then (B) dividing the resulting dollar amount by the Fair Market Value (as defined in the Plan) on the grant date, with the resulting number of
        shares rounded down to the nearest whole share, subject to the applicable share limit set forth in Section II(c)(iii) below.

       

      (iii) Share Limits. The number of
        shares of common stock subject to a stock option granted under this Director Compensation Policy may not exceed (A) 68,000 shares for an Initial Grant (or 34,000 shares if the Non-Employee Director elects to receive 50% stock options pursuant to
        Section II(d) below) and (B) 34,000 for an Annual Grant (or 17,000 shares if the Non-Employee Director elects to receive 50% stock options pursuant to Section II(d) below). The number of shares of common stock subject to RSUs granted under this
        Director Compensation Policy may not exceed (A) 45,333 shares for an Initial Grant (or 22,666 shares if the Non-Employee Director elects to receive 50% RSUs pursuant to Section II(d) below) and (B) 22,666 shares for an
        Annual Grant (or 11,333 shares if the Non-Employee Director elects to receive 50% RSUs pursuant to Section II(d) below), which limits are intended, in each case, to represent share limits equivalent in value to the option share limits set forth in
        the preceding sentence.

       

      

      
        
          

      

      (d) Election to Receive Stock Options or RSUs. Each
        Non-Employee Director may elect to receive their Initial Grant or Annual Grant as (i) 100% stock options, (ii) 100% RSUs, or (iii) 50% stock options and 50% RSUs, in accordance with the requirements of this Director Compensation Policy (such
        election, an “Election”). If a Non-Employee Director timely makes an Election, then on the date of his or her initial election or
        appointment as a Non-Employee Director (or, if such date is not a market trading day, the first market trading day immediately thereafter) in the case of an Initial Grant, or at the close of business on the date of each annual meeting of
        stockholders following the IPO in the case of an Annual Grant, and without any further action by the Board, such Non-Employee Director will be granted the Initial Grant or Annual Grant, as applicable, calculated in accordance with the Section II(c)
        above.

       

      (i) Election Mechanics. The Election for the Initial Grant or Annual Grant must be submitted to the Company’s Deputy General Counsel (or such other individual as the Company
        designates) in writing prior to the applicable deadline specified by the Company’s Deputy General Counsel (or such other individual as the Company designates) for making an Election. A Non-Employee Director may only make an Election during a period
        in which the Company is not in a quarterly or special blackout period and the Non-Employee Director is not aware of any material non-public information. Once an Election is properly submitted, it will be in effect until the Non-Employee Director
        timely revokes the Election in accordance with this Director Compensation Policy or the next deadline specified by the Company’s Deputy General Counsel (or such other individual as the Company designates) for making an Election. A Non-Employee
        Director who fails to timely make an Election will receive 100% stock options.

       

      (ii) Revocation Mechanics. The revocation of any previously submitted Election must be submitted to the Company’s Deputy General Counsel (or such other individual as the Company
        designates) in writing prior to the applicable deadline specified by the Company’s Deputy General Counsel (or such other individual as the Company designates) for making such revocation election. A Non-Employee Director may only revoke an Election
        during a period in which the Company is not in a quarterly or special blackout period and the Non-Employee Director is not aware of any material non-public information. Following such revocation, no Election will be in effect for such Non-Employee
        Director unless and until the Non-Employee Director timely submits a new Election in accordance with the election procedures specified above. Until the Non-Employee Director timely submits a New Election, he or she will receive 100% stock options.

       

      (e) Remaining Terms. The remaining terms and conditions of each award, including transferability, will be as set forth in the Company’s Standard Option Grant Package or Standard RSU Grant Package, as applicable, and
        in the forms for Non-Employee Directors that are adopted from time to time by the Board or Compensation Committee of the Board.

       

      	III.	
              Expenses

            

       

      The Company will reimburse Non-Employee Director for ordinary, necessary and reasonable out-of-pocket travel expenses to cover in-person attendance at and
        participation in Board and committee meetings; provided, that the Non-Employee Director timely submit to the Company appropriate documentation substantiating such expenses in accordance with the Company’s travel and expense policy, as in effect
        from time to time.

       

      	IV.	
              Non-Employee Director Compensation Limit

            

       

      Notwithstanding the foregoing, the aggregate value of all compensation granted or paid, as applicable, to any individual for service as a
        Non-Employee Director shall in no event exceed the limits set forth in Section 3(d) of the Plan.

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