Document:

tlry-ex101_40.htm

Exhibit 10.1

 

THIS SECOND AMENDMENT TO CREDIT , dated as of December 7, 2021 (this “Agreement”) amends that certain Credit Agreement, dated as of December 8, 2020, as amended by that certain Agreement dated as of April 29, 2021 (as the same will be amended hereby and may be further amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and between, among others, BANK OF MONTREAL as Administrative Agent, (the “Administrative Agent”) FOUR TWENTY CORPORATION as Holdings (“Holdings”) and the Persons named herein as Guarantors.

 

WHEREAS, Holdings has requested that Lenders agree to certain amendments to the Loan Documents and Lenders are willing to agree to the amendments pursuant to the terms and subject to the conditions set forth herein.

 

NOW THEREFORE, in consideration of the foregoing and the agreements, provisions and covenants herein contained, the parties to this Agreement hereby agree, on the terms and subject to the conditions set forth herein, as follows:

 

1Definitions. Unless otherwise defined in this Agreement (including the Recitals), capitalized terms used herein shall have the meaning given to them in the Credit Agreement.

 

2Amendments. With effect from the Effective Date, the Credit Agreement will be amended by:

 

(a)replacing Section 5.1(a), with:

 

“(a) (i) within 90 days after the end of each Fiscal Year from and including the Fiscal Year ending May 31, 2021, the reviewed annual financial statements for such Fiscal Year for Holdings and its Subsidiaries, containing a consolidated balance sheet of Holdings and its Subsidiaries as of the end of such Fiscal Year and the related consolidated statements of income or operations, changes in shareholder’s equity and cash flows (together with all footnotes thereto) of Holdings and its Subsidiaries for such Fiscal Year, setting forth in each case in comparative form the figures for the previous Fiscal Year, all in reasonable detail, and (ii) within 90 days after the end of each Fiscal Year from and including the Fiscal Year ending May 31, 2022, a copy of the annual audited report for such Fiscal Year for Holdings and its Subsidiaries, containing a consolidated balance sheet of Holdings and its Subsidiaries as of the end of such Fiscal Year and the related consolidated statements of income or operations, changes in shareholder’s equity and cash flows (together with all footnotes thereto) of Holdings and its Subsidiaries for such Fiscal Year, setting forth in each case in comparative form the figures for the previous Fiscal Year, all in reasonable detail and reported on by independent public accountants of nationally recognized standing (without a “going concern” or like qualification, exception or explanation and without any qualification or exception as to scope of such audit (other than any qualification, exception or explanation resulting from the impending maturity of any Indebtedness or any prospective or actual default under any financial covenant set forth in Article VI)) to the effect that such financial statements present fairly in all material respects the financial condition and the results of operations of Holdings and its Subsidiaries for such 

 

 

Fiscal Year on a consolidated basis in accordance with GAAP and that the examination by such accountants in connection with such consolidated financial statements has been made in accordance with generally accepted auditing standards, together with a reasonably detailed management discussion and analysis with respect thereto;”

 

(b)replacing Section 5.1(b), with:

“(b) within 60 days after the end of each first, second and third Fiscal Quarter, an unaudited consolidated balance sheet of Holdings and its Subsidiaries as of the end of such Fiscal Quarter and the related unaudited consolidated statements of income or operations, changes in stockholders’ equity and cash flows of Holdings and its Subsidiaries for such Fiscal Quarter and the then elapsed portion of such Fiscal Year, setting forth in each case in comparative form the figures for (i) the corresponding quarter and the corresponding portion of Holdings’ previous Fiscal Year and (ii) the corresponding quarter as set out in the budget most recently delivered under Section 5.1(f), all in reasonable detail and prepared in accordance with GAAP, such consolidated statements to be certified by the chief executive officer, chief financial officer, treasurer or controller of Holdings as presenting fairly in all material respects the financial condition, results of operations, stockholders’ equity and cash flows of Holdings and its Subsidiaries in accordance with GAAP, subject only to normal year-end audit adjustments and the absence of footnotes, together with a reasonably detailed management discussion and analysis with respect thereto;”.

 

(c)Schedule 1.1 of the Credit Agreement is hereby deleted and replaced in its entirety with the new Schedule 1.1 attached herein as Exhibit 1 to this Agreement.

 

3Representations and Warranties. On the date of this Agreement and on the Effective Date, each Loan Party represents and warrants to the Finance Parties that: (a) it has the legal power and authority to execute and deliver this Agreement; (b) the Person executing this Agreement on its behalf has been duly authorized to execute and deliver the same and bind such Loan Party with respect to the provisions hereof; (c) the execution, delivery and performance by it of this Agreement will not conflict with, result in a violation of, or constitute a default under (i) any provision of its Organization Documents or other instrument binding upon such Loan Party, (ii) any law, governmental regulation, court decree or order applicable to such Loan Party, or (iii) any contractual obligation, agreement, judgment, license, order or permit applicable to or binding upon such Loan Party; (d) this Agreement constitutes a legal, valid and binding obligation of, and is enforceable against, each Loan Party in accordance with its terms, subject to the effects of bankruptcy, insolvency, reorganization, moratorium and other similar laws relating to or affecting creditors’ rights generally, and general equitable principles (whether considered in a proceeding in equity or at law); (e) after giving effect to this Agreement, no Default or Event of Default exists, nor will any occur immediately after the execution and delivery of this Agreement or by the performance or observance of any provision hereof, nor will any occur immediately after the Effective Date; (f) no Loan Party has any claim or offset against, or defense or counterclaim to, any 

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obligations or liabilities of such Loan Party under any Loan Document; and (g) each of the representations and warranties contained in the Loan Documents is true and correct in all material respects (without duplication of any materiality qualifier) as of the date hereof, except to the extent that such representations and warranties expressly relate to an earlier specified date, in which case such representations and warranties shall have been true and correct in all material respects (without duplication of any materiality qualifier) as of the date when made.

 

4Effective Date. In this Agreement, “Effective Date” means the date on which the Administrative Agent has received the following documents and other evidence, in form and substance satisfactory to it:

 

(a)this Agreement, duly executed and delivered by a duly authorized officer of each Loan Party which is a party to it;

 

(b)there shall exist no Default or Event of Default and all representations and warranties of each Loan Party in the Loan Documents shall be true and correct in all material respects (without duplication of any materiality qualifier) with the same effect as though such representations and warranties had been made on and as of the Effective Date, except to the extent that such representations and warranties expressly relate to an earlier specified date, in which case such representations and warranties shall have been true and correct in all material respects (without duplication of any materiality qualifier) as of the date when made;

 

(c)Holdings shall have paid to Administrative Agent (on behalf of the Lenders) an amendment fee in the amount of 0.05% of the total Commitment amount on the Effective Date;

 

(d)customary written opinions of (i) DLA Piper LLP (US), and (ii) if Aphria is party to any transactions contemplated by this letter at the Effective Date, DLA Piper (Canada) LLP; and

 

(e)a copy of any other authorization or other document, opinion or assurance which in the Administrative Agent’s commercially reasonable opinion is necessary (if it has notified Holdings accordingly) in connection with the entry into and performance of the transactions contemplated by this Agreement or for the validity and enforceability of any Loan Document contemplated by this Agreement.

 

5Loan Party Waiver. Each Loan Party, by signing below, hereby waives and releases the Finance Parties from any and all claims, offsets, defenses and counterclaims of which such Loan Party is aware, such waiver and release being with full knowledge and understanding of the circumstances and effect thereof and after having consulted legal counsel with respect thereto.

 

6Entire Agreement. This Agreement is a Loan Document, and together with the other Loan Documents, integrates all the terms and conditions mentioned herein or incidental hereto and supersedes all oral representations and negotiations and prior writings with respect to the subject matter hereof.

 

7Effect of Agreement. Except as expressly set forth herein, this Agreement shall not by implication or otherwise limit, impair, constitute a waiver of, amend, or otherwise affect the rights and remedies of any Finance Party under any other Loan Documents, and shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the other Loan Documents, all of which are ratified and affirmed in all respects and shall continue in full force and effect. Except as expressly set forth herein, the Finance Parties expressly reserve, and do hereby expressly reserve, all rights, powers and remedies provided for in the Loan Documents or available by applicable law, whether now or hereafter existing, including, without limitation, all such rights, powers, and remedies available to the Finance Parties based upon an existing default or Event of Default. Nothing herein shall be deemed to entitle a Loan Party to a consent to, or a waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the other Loan Documents in similar or different circumstances. This Agreement shall apply and be effective with respect to the matters expressly referred to herein. After the Effective Date, any reference to the Credit Agreement shall mean the Credit Agreement with such amendments effected hereby. Unless otherwise stated, references to Sections are to sections of the Credit Agreement.

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8Incorporation. Sections 11.5 (b) to (d) (inclusive), 11.6, 11.8 and 11.10 are deemed incorporated into this Agreement with all necessary changes.

 

9Governing Law. This Agreement and any claims, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Agreement and the transactions contemplated hereby and thereby shall be construed in accordance with and be governed by the Law (without giving effect to the conflict of law principles thereof) of the State of New York.

 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day and year first written above.

 

Borrowers:

 

	
FOUR TWENTY CORPORATION, a

	
Delaware corporation, as a Borrower

	
 
	
 

	
By:
	
/s/ Carl Merton

	
 
	
Name: Carl Merton

	
 
	
Title: CFO

 

	
SWEETWATER BREWING COMPANY,

	
LLC, a Georgia limited liability company, as a Borrower

	
 

	
By:
	
/s/ Carl Merton

	
 
	
Name: Carl Merton

	
 
	
Title: Director

 

 

 

 

 

 

Signature Page to

Second Amendment Letter (BMO/Sweetwater) (2021)

 

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SECOND AMENDMENT TO CREDIT AGREEMENT

 

Guarantors:

 

	
FOUR TWENTY CORPORATION, a

	
Delaware corporation, as a Guarantor

	
 

	
By:
	
/s/ Carl Merton

	
 
	
Name: Carl Merton

	
 
	
Title: CFO

 

	
SWEETWATER BREWING COMPANY,

	
LLC, a Georgia limited liability company, as a Guarantor

	
 

	
By:
	
/s/ Carl Merton

	
 
	
Name: Carl Merton

	
 
	
Title: Director

 

 

 

 

Signature Page to

Second Amendment Letter (BMO/Sweetwater) (2021)

 

US_Active\118837451\V-5

 

 

 

 

	
SW BREWING COMPANY, LLC, a

	
Delaware limited liability company, as a Guarantor

	
 

	
By:
	
/s/ Carl Merton

	
 
	
Name: Carl Merton

	
 
	
Title: Director

 

 

 

 

Signature Page to

Second Amendment Letter (BMO/Sweetwater) (2021)

 

US_Active\118837451\V-5

 

 

 

 

	
BANK OF MONTREAL, as a Lender

	
 

	
By:
	
/s/ Allen Benjamin

	
 
	
Name: Allen Benjamin

	
 
	
Title: Managing Director

 

 

	
By:
	
/s/ Rohit Lobo

	
 
	
Name: Rohit Lobo

	
 
	
Title: Senior Director

 

	
BANK OF MONTREAL, as Swing Line Lender

	
 

	
By:
	
/s/ Allen Benjamin

	
 
	
Name: Allen Benjamin

	
 
	
Title: Managing Director

 

	
By:
	
/s/ Rohit Lobo

	
 
	
Name: Rohit Lobo

	
 
	
Title: Senior Director

 

	
BANK OF MONTREAL, as Issuing Bank

	
 

	
By:
	
/s/ Allen Benjamin

	
 
	
Name: Allen Benjamin

	
 
	
Title: Managing Director

 

	
By:
	
/s/ Rohit Lobo

	
 
	
Name: Rohit Lobo

	
 
	
Title: Senior Director

 

	
BANK OF MONTREAL, as Administrative Agent

	
 

	
By:
	
/s/ Rohit Lobo

	
 
	
Name: Rohit Lobo

	
 
	
Title: Senior Director

 

 

 

Signature Page to

Second Amendment Letter (BMO/Sweetwater) (2021)

 

US_Active\118837451\V-5

 

 

 

 

	
By:
	
/s/ Allen Benjamin

	
 
	
Name: Allen Benjamin

	
 
	
Title: Managing Director

 

 

 

Signature Page to

Second Amendment Letter (BMO/Sweetwater) (2021)

 

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TRUIST BANK, as a Lender

	
 

	
By:
	
/s/ JC Boyanton

	
 
	
Name: JC Boyanton

	
 
	
Title:  Senior Vice President

 

 

 

Signature Page to

Second Amendment Letter (BMO/Sweetwater) (2021)

 

US_Active\118837451\V-5

 

 

 

SECOND AMENDMENT TO CREDIT AGREEMENT

 

 

Exhibit 1

 

 

Schedule 1.1 
Commitment Amounts

 

 

	
Lender
	
Revolving Commitment
	
Term Loan A Commitment
	
Share

	
Bank of Montreal
	
$20,000,0001
	
$52,916,666.67
	
66.67%

	
Truist Bank
	
$10,000,000
	
$26,458,333.33
	
33.33%

	
Total
	
$30,000,0002
	
$79,375,000
	
100.00%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	
 
	
1
	
Including Swing Line Commitment of $3,000,000.

	
 
	
2
	
Including the LC Commitment of $3,000,000 (as well as, for greater certainty, the Swing Line Commitment of $3,000,000).

US_Active\118837451\V-5EX-10.1

 Exhibit 10.1 
 

 
 Corporate Headquarters 
 Intel
Corporation 
 2200 Mission College Blvd 
 Santa Clara, CA,
95054-1549 
 (408) 765-8080 

January 5, 2022 
 Dear David: 

Congratulations! On behalf of Intel Corporation (“Intel” or the “Company”), I am pleased to offer you the position of Executive Vice
President and Chief Financial Officer, reporting to me, and also have you serve as principal accounting officer. The role will be based in Santa Clara, California. Your start date will be January 17, 2022 (“Effective Date”). 

Base Salary. Your starting annual base salary will be $800,000 less applicable taxes, deductions, and withholdings. 

Annual Performance Bonus (APB): You will be eligible for an Annual Performance Bonus (“APB”). Your APB Payout Goal is
$1,320,000. Payouts under the APB are subject to eligibility and other program conditions, as well as the company’s performance to its financial and operational goals. Payouts are not guaranteed and will be prorated based on the
Effective Date. 
 Quarterly Profit Bonus. You are eligible for quarterly bonuses under the Quarterly Profit Bonus (“QPB”)
program. These bonuses are determined based on Intel’s quarterly profitability, subject to the terms of the QPB plan. QPBs are paid out in the month following the close of each calendar quarter. Based on historical payouts, we
anticipate this will pay you approximately $18,600 per quarter ($74,400 annually). Your first quarterly bonus will be prorated to reflect the actual dates of participation for any portion of the quarter that you are employed with Intel. Subject
to local law, to earn and receive a QPB, you must be employed on the Intel payroll before the cutoff date for each three-month bonus period and have received eligible earnings before the cutoff date. 

Target Cash Compensation. Your target annual cash compensation is $2,194,400; this is composed of your base salary, target APB payout, and estimated
QPB payout. Your base salary and APB Payout Goal will be reviewed annually as part of our performance review process. 
 Annual Equity Grant. As
an employee of Intel, we would like you to share in the success of Intel Corporation through the Company’s stock benefit program. Therefore, the target value for your 2022 long-term incentive equity award will be approximately $8,250,000, which
will be comprised of approximately 50% PSUs and 50% RSUs. The exact number of PSUs and RSUs will be determined on the Grant Date (as defined below), based on the average daily (on days where trading occurred) market value of Intel stock over 30
calendar days leading up to 

  
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and including that date. The RSUs will vest over a three-year period: 1/12 of the RSUs vesting per quarter beginning on the three-month anniversary of the Grant Date and continuing for three
years such that the grant is fully vested on the three-year anniversary of Grant Date. The PSUs and RSUs will be subject to the terms and conditions of the Intel Corporation 2006 Equity Incentive Plan, the Notice of Grant for each award, and grant
agreement linked to your Notice of Grant. 
 New Hire “Make-Whole” Compensation. You will be provided the following as your make-whole
compensation: 
 Equity Awards. You will be granted the following equity compensation awards on January 31, 2022
(“Grant Date”), provided you are employed with Intel on this date: 
 Performance Stock Units: You will be granted
an award of Intel performance stock units (“PSUs”) based on the 2022 PSU program approved by the Compensation Committee, with a target value of approximately $5,000,000, and with the target number of shares determined on the Grant Date
based on the average daily (on days where trading occurred) market value of Intel stock over 30 calendar days leading up to and including that date. 

Restricted Stock Units. You will be granted an award of Intel restricted stock units (“RSUs”) with a target value of
approximately $12,000,000, with the number of shares determined on the Grant Date based on the average daily (on days where trading occurred) market value of Intel stock over 30 calendar days leading up to and including that date. The RSUs will vest
annually over a three-year period. 
 The PSUs and RSUs will be subject to the terms and conditions of the Intel Corporation 2006 Equity Incentive Plan, the
Notice of Grant for each award, and grant agreement linked to your Notice of Grant. 
 Cash Bonus. You will receive a
sign on bonus of $2,000,000, less applicable taxes, deductions, and withholdings, which will be payable to you within 30 days following the Effective Date. Notwithstanding the foregoing, in the event that you voluntarily resign your employment for
any reason or Intel terminates your employment for Cause (as defined below), in each case, within two (2) years following the payment date of the bonus, you will repay, on the date of your employment termination, the gross amount of the bonus
paid to you on a pro-rated basis based on the number of days remaining in such two year period as of the date your employment terminates, by writing a check to Intel for such amount or otherwise entering into
a repayment arrangement satisfactory to Intel. In addition, subject to applicable law, Intel may recover the cash payment that is required to be repaid by (1) reducing the amount that would otherwise be payable to you under any compensatory
plan, program or arrangement maintained by Intel, (2) reducing any severance benefits that would otherwise be payable or provided to you under any plan, program, or arrangement maintained or entered into by Intel (including under any employment
or severance agreement), or (3) by any combination of the foregoing. 
 For purposes of this letter, “Cause” means (1) commission
of an act of material fraud or dishonesty against Intel; (2) intentional refusal or willful failure to carry out the reasonable and lawful instructions of the Chief Executive Officer, Intel’s Board of Directors, or any of their designee(s)
(other than any such failure resulting from your disability); (3) conviction of, guilty plea, or “no contest” plea to a felony or to a misdemeanor involving moral turpitude; (4) gross misconduct in connection with the performance of
your duties; (5) improper disclosure of confidential information or material violation of Intel’s Code of Conduct or other Intel policy or employment guidelines; (6) breach or any misrepresentation under, any intellectual property,
invention assignment, 

  
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confidentiality, or proprietary information agreement to which Intel is a party; (7) failure to reasonably cooperate with Intel in any investigation or formal proceeding or being found
liable in a Securities and Exchange Commission enforcement action or otherwise being disqualified from serving in your position with Intel; or (8) breach of duty of loyalty to Intel. Prior to termination for Cause, Intel shall provide 30 days
prior written notice to you of the grounds for Cause and give you an opportunity within those 30 days to cure the alleged breach. The parties recognize that given the egregious nature of the conduct defined as Cause, a cure may not be possible. No
act or failure to act on your part shall be considered “willful” unless it was done, or omitted to be done, in bad faith and without reasonable belief that your act or omission was in the best interests of Intel. Any act, or failure to
act, based upon express authority given pursuant to a resolution duly adopted by Intel’s Board of Directors or the direction of Intel’s Chief Executive Officer with respect to such act or omission, or based upon the advice of legal counsel
for Intel, shall be conclusively presumed to be done, or omitted to be done, by you in good faith and in the best interests of Intel and, in any event, will not be considered an event which may give rise to Cause. Notwithstanding the foregoing, you
and Intel expressly agree that Intel does not expect, and will not require, you to engage in any activities that would violate your existing obligations to any prior employer, including to maintain the confidentiality of such employer’s
proprietary business information. If you refuse or fail to carry out any instruction by the Chief Executive Officer or Intel’s Board of Directors because of such existing obligations, your refusal or failure will not constitute Cause for
termination.
 Comprehensive Benefits. Intel provides a very competitive benefits package for its eligible employees. You will be eligible for our
medical, dental, vision, short-term and long-term disability, and life insurance programs. In addition, we offer an Employee Stock Purchase Plan, 401(k) Plan, and deferred compensation plan. 

You will be eligible for about 4 weeks of vacation and 10 company holidays each year, as well as our fully-paid sabbaticals. Each of these benefits is subject
to the terms and conditions of the benefit program and plans, including waiting periods for some. Learn more about these and other outstanding benefits at https://www.intel.com/content/www/us/en/jobs/benefits.html. 

Relocation Assistance. To assist you and your family with relocation to the Bay Area, we will provide you with a customized relocation package.
Packages are based on your individual needs and Intel relocation guidelines. A Relocation Consultant will reach out to you soon to discuss the best package options for you. 

Outside Activities During Employment. During your employment, you shall devote your full business efforts and time to Intel. This obligation, however,
shall not preclude you from engaging in appropriate civic, charitable or religious activities, as long as they do not materially interfere with your job. Any outside activities, including serving on a Board of Directors, must be in compliance with
Intel’s Code of Conduct and subject to applicable approvals and policies. 
 Company Policies/Protection of Intellectual Property. Your
employment is contingent on your signing an Employment Agreement, which outlines your obligations as an employee, including among others your obligation to protect Intel’s intellectual property (as well as confidential information of your prior
employers and other third parties). You will be expected to abide by the Company’s policies and procedures, including without limitation Intel’s Employment Guidelines and Code of Conduct. 

At-Will Employment. Your employment with Intel is “at will,” which means that both Intel and you have
the right to end your employment at any time, with or without advance notice, and with or without cause. The at-will nature of your employment may not be modified or amended except by written agreement signed
by Intel’s Chief People officer and you. 
  

  
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 Position of Trust Background Check/Work Eligibility. Because of the importance of your position, this
offer is contingent upon the successful completion of a Position of Trust background check and successful reference check. You represent that all information provided to Intel or its agents with regard to your background is true and correct. As a
further condition of employment, you are required by law to provide appropriate documentation of your legal right to work in the United States. 

Vaccine Requirement and Proof. Intel requires all new U.S. employees to be fully vaccinated for Covid-19 as a
condition of hire unless they have an approved medical or religious accommodation in place under applicable law. This policy applies regardless of whether you work at an Intel site or remotely. Newly hired employees will be required to provide
proof of vaccination prior to their start date and as a condition of employment at Intel. If you do not provide proof of vaccine prior to your start date and do not have an approved accommodation, this offer can be rescinded. 

Counterparts. This offer letter may be executed in counterparts, all of which shall be considered one and the same agreement, and shall become
effective when one or more counterparts have been signed by each of the parties and delivered to the other parties. 
 Entire Agreement. This offer
letter including the referenced documents forms the entire agreement between you and Intel and replaces all prior communications on matters related to employment at Intel. 

[Signature Page Follows] 

  
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	Sincerely,
	
	 /s/ Pat Gelsinger

	Pat Gelsinger
	Chief Executive Officer

  

					
	Accepted and Agreed:	  		  	
			
	 /s/ David A. Zinsner
	  		  	 1/6/22

	David A. Zinsner	  		  	Date

  
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