Document:

Exhibit 10.2

 

ACCOUNTS RECEIVABLE LINE OF CREDIT NOTE

 

August 17, 2017

 

$10,000,000.00

 

For value received,
the undersigned H.D.D, LLC, a California limited liability company (the “Borrower”), promises to pay to the
order of Bank of the West (together with its successors and assigns, the “Lender”), the principal amount of up to Ten
Million Dollars and Zero Cents ($10,000,000,00) on or before July 31, 2018 (the “Expiration Date”), as set
forth below. The aggregate principal balance outstanding shall bear interest, and interest shall be payable, in accordance with
that certain Interest Rate Election Rider, attached hereto and made a part hereof (the “Interest Rate Election Rider”).

 

On terms and conditions
as set forth herein, the Borrower may request advances (each an “Advance”) from time to time from the date hereof to
the Expiration Date of this Note (the “Accounts Receivable Line of Credit”), provided that no Advance shall be made
if at the time of or following such Advance, the aggregate amount of all Advances outstanding hereunder exceeds the Borrowing Base
(as defined in the Loan Agreement). Within the foregoing limits, the Borrower may borrow, partially or wholly prepay, and reborrow
as described herein, Each Advance shall be conclusively deemed to have been made at the request of and for the benefit of the Borrower
(i) when credited to any deposit account of the Borrower maintained with the Lender or (ii) when paid in accordance with the Borrower’s
written instructions. Subject to the requirements herein, and provided such request is made in a timely manner as provided below,
Advances shall be made by the Lender under the Accounts Receivable Line of Credit.

 

This Note is entered
into in connection with one or more certain Loan and Security Agreements or Loan Agreements, dated July 6, 2015 (each a
“Loan Agreement” and collectively, the “Loan Agreements”) between the Borrower and the Lender, and any
capitalized terms not defined herein shall have the meanings given to them in the Loan Agreements.

 

If at any time the
aggregate principal amount of the outstanding Advances shall exceed the applicable Borrowing Base (as defined in the Loan Agreement),
the Borrower hereby promises and agrees, immediately upon written or telephonic notice from the Lender, to pay to the Lender an
amount equal to the difference between the outstanding principal balance of the Advances and the Borrowing Base. On the Expiration
Date, the Borrower hereby promises and agrees to pay to the Lender in full the aggregate unpaid principal amount outstanding, together
with all accrued and unpaid interest and all other fees and charges owing to the Lender under this Note.

 

Principal and interest
shall be payable at the Lender’s main office or at such other place as the Lender may designate in writing in immediately
available funds in lawful money of the United States of America without set-off, deduction or counterclaim. Interest shall be
calculated on the basis of actual number of days elapsed and a 360-day year. If interest is not paid as and when it is due, it
shall be added to the principal, become and be treated as a part thereof, and shall thereafter bear like interest.

 

“Business Day”
shall mean a day, other than a Saturday or Sunday, on which the Lender is open for business for the funding of corporate loans,
and, with respect to a LIBOR Rate or One Month Libor Rate, a day on which dealings are carried on in the London interbank market
and banks are open for business in London.

 

The Borrower agrees
to pay to the Lender a commitment fee on the unused portion of the Accounts Receivable Line of Credit Note of 0.25% per annum,
payable monthly in arrears, commencing September 29, 2017 and computed on a year of 360 days for actual days elapsed

 

At the option of the
Lender, this Note shall become immediately due and payable upon default of any liability, obligation, covenant or undertaking of
the Borrower hereunder or the occurrence at any time of an Event of Default under the Loan Agreement.

 

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Any payments received
by the Lender on account of this Note shall, at the Lender’s option, be applied first, to accrued and unpaid interest; second,
to the unpaid principal balance, then any fees, or charges then owed to the Lender by the Borrower; with payments being applied
to installments remaining due in such order and amounts as the Lender may determine in its discretion. Notwithstanding the foregoing,
any payments received after the occurrence and during the continuance of an Event of Default shall be applied in such manner as
the Lender may determine. The Borrower hereby authorizes the Lender to charge any deposit account which the Borrower may maintain
with the Lender for any payment required hereunder without prior notice to the Borrower.

 

If pursuant to the
terms of this Note, the Borrower is at any time obligated to pay interest on the principal balance at a rate in excess of the maximum
interest rate permitted by applicable law for the loan evidenced by this Note, the applicable interest rate shall be immediately
reduced to such maximum rate and all previous payments in excess of the maximum rate shall be deemed to have been payments in reduction
of principal and not on account of the interest due hereunder. More specifically, if from any circumstances whatsoever, fulfillment
of any provision of this Note or any other loan document excuted and delivered in connection with this Note, at the time performance
of such provision becomes due, would exceed the limit on interest then permitted by any applicable usury statute or any other applicable
law, the Lender may, at its option (a) reduce the obligations to be fulfilled to such limit on interest, or (b) apply the amount
in excess of such limit on interest to the reduction of the outstanding principal balance of the obligations, and not to the payment
of interest, with the same force and effect as though Borrower had specifically designated such sums to be so applied to principal
and Lender had agreed to accept such extra payments(s) as a premium-free prepayment, so that in no event shall any exaction be
possible under this Note or any other loan document that is in excess of the applicable limit on interest. It is the intention
of Borrower and Lender that the total liability for payments in the nature of interest shall not exceed the limits imposed by any
applicable state or federal interest rate laws. The provisions of this paragraph shall control every other provision of this Note,
and any provision of any other loan document in conflict with this paragraph.

 

The Borrower represents
to the Lender that the proceeds of this Note will not be used for personal, family or household purposes or for the purpose of
purchasing or carrying margin stock or margin securities within the meaning of Regulations U and X of the Board of Governors of
the Federal Reserve System, 12 C.F.R. Parts 221 and 224,

 

The Borrower grants
to the Lender a continuing lien on and security interest in any and all deposits or other sums at any time credited by or due from
the Lender to the Borrower and any cash, securities, instruments or other property of the Borrower in the possession of the Lender,
whether for safekeeping or otherwise, or in transit to or from the Lender (regardless of the reason the Lender had received the
same or whether the Lender has conditionally released the same) as security for the full and punctual payment and performance of
all of the liabilities and obligations of the Borrower to the Lender and such deposits and other sums may be applied or set off
against such liabilities and obligations of the Borrower to the Lender at any time, whether or not such are then due, whether or
not demand has been made and whether or not other collateral is then available to the Lender.

 

No delay or omission
on the part of the Lender in exercising any right hereunder shall operate as a waiver of such right or of any other right of the
Lender, nor shall any delay, omission or waiver on any one occasion be deemed a bar to or waiver of the same or any other right
on any future occasion. The Borrower and any other party obligated on account of this Note by contract, by operation of law or
otherwise (the Borrower and each Borrower, if more than one, and each such other party, an “Obligor”), regardless of
the time, order or place of signing, waive presentment, demand, protest, notice of intent to accelerate, notice of acceleration,
notice of dishonor, notice of protest and all other notices and demands of every kind in connection with the delivery, acceptance,
performance or enforcement of this Note, all suretyship defenses of any kind, in each case that would otherwise be available in
connection with this Note including, without limitation, any right (whether now or hereafter existing) to require the holder hereof
to first proceed against the Borrower, or any other party obligated on account of this Note, for any security, and assent to any
extension or postponement of the time of payment or any other indulgence, to any substitution, exchange or release of collateral,
and to the addition or release of any other party or person primarily or secondarily liable and waives all recourse to suretyship
and guarantor defenses generally, including any defense based on impairment of collateral. To the maximum extent permitted by law,
the Borrower waives and terminates any homestead rights and/or exemptions respecting any premises under the provisions of any applicable
homestead laws, including without limitation, California Code of Civil Procedure Sections 704-710 et seq.

 

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To the fullest extent
permitted by law, each Obligor waives:

 

(A) any
rights and defenses that are or may become available to such Obligor by reason of Sections 2787 to 2855, inclusive, of the California
Civil Code;

 

(B) all
rights and defenses that such Obligor may have because any of the indebtedness hereunder is secured by real property; this means,
among other things: (i) the Lender may collect from an Obligor without first foreclosing on any real or personal property collateral
pledged by the Borrower or another Obligor; and (ii) if the Lender forecloses on any real property collateral pledged by the Borrower
or another Obligor: (1) the amount of such indebtedness may be reduced only by the price for which that collateral is sold at the
foreclosure sale, even if the collateral is worth more than the sale price, and (2) the Lender may collect from an Obligor even
if the Lender, by foreclosing on the real property collateral, has destroyed any right such Obligor may have to collect from the
Borrower or another Obligor. This is an unconditional and irrevocable waiver of any rights and defenses each Obligor may have because
any of the indebtedness under this Note is secured by real property. These rights and defenses include, but are not limited to,
any rights or defenses based upon Section 580a, 580b, 580d, or 726 of the California Code of Civil Procedure;

 

(C) any
right or defense it may have at law or equity, including California Code of Civil Procedure Section 580a, to a fair market value
hearing or action to determine a deficiency judgment after a foreclosure.

 

The Borrower shall
indemnify, defend and hold the Lender and its directors, officers, employees, agents and attorneys (each an “Indemnitee”)
harmless against any claim brought or threatened against any Indemnitee by the Borrower or by any other person (as well as from
attorneys’ reasonable fees and expenses in connection therewith) on account of the Lender’s relationship with the Borrower
(each of which may be defended, compromised, settled or pursued by the Lender with counsel of the Lender’s selection, but
at the expense of the Borrower), except for any claim arising out of the gross negligence or willful misconduct of the Lender.

 

The Borrower agrees
to pay, upon demand, costs of collection of ail amounts under this Note including, without limitation, principal and interest,
or in connection with the enforcement of, or realization on, any security for this Note, including, without limitation, to the
extent permitted by applicable law, reasonable attorneys’ fees and expenses, if any payment due under this Note is unpaid
for 15 days or more, the Borrower shall pay, in addition to any other sums due under this Note (and without limiting the Lender’s
other remedies on account thereof), a late charge equal to 5.0% of such unpaid amount.

 

This Note shall be
binding upon the Borrower and upon its heirs, successors, assigns and legal representatives, and shall inure to the benefit of
the Lender and its successors, endorsees and assigns.

 

In the event that at
any time, a surety is liable upon only a portion of the Borrower’s or any Obligor’s obligations under this Note and
the Borrower provides partial satisfaction of any such obligation(s), each of the Borrower and each Obligor hereof, if any, hereby
waives any right it would otherwise have, under Section 2822 of the California Civil Code, to designate the portion of the obligations
to be satisfied. The designation of the portion of the obligation to be satisfied shall, to the extent not expressly made by the
terms of this Note, be made by the Lender rather than Borrower.

 

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The liabilities of
the Borrower and each Borrower, if more than one, and any Obligor are joint and several; provided, however, the release by the
Lender of the Borrower or any one or more Obligors shall not release any other person obligated on account of this Note. Any and
all present and future debts of the Borrower to any Obligor are subordinated to the full payment and performance of all present
and future debts and obligations of the Borrower to the Lender. Each reference in this Note to the Borrower and each Borrower,
if more than one, and Obligor, is to such person individually and also to all such persons jointly, No person obligated on account
of this Note may seek contribution from any other person also obligated, unless and until all liabilities, obligations and indebtedness
to the Lender of the person from whom contribution is sought have been irrevocably satisfied in full. The release or compromise
by the Lender of any collateral shall not release any person obligated on account of this Note.

 

The Borrower authorizes
the Lender to complete this Note if delivered incomplete in any respect. A photographic or other reproduction of this Note may
be made by the Lender, and any such reproduction shall be admissible in evidence with the same effect as the original itself in
any judicial or administrative proceeding, whether or not the original is in existence.

 

This Note shall be
governed by federal law applicable to the Lender and, to the extent not preempted by federal law, the laws of the State of California
without giving effect to the conflicts of laws principles thereof.

 

Any notices under or
pursuant to this Note shall be deemed duly received and effective if delivered in hand to any officer of agent of the Borrower
or Lender, or if mailed by registered or certified mail, return receipt requested, addressed to the Borrower or Lender at the address
set forth in the Loan Agreement together with a copy to Bank of the West, Asset Based Lending at 1977 Saturn Street, Monterey Park,
CA 91755 or as any party may from time to time designate by written notice to the other party.

 

The Borrower
irrevocably submits to the nonexclusive jurisdiction of any Federal or state court sitting in California, over any suit,
action or proceeding arising out of or relating to this Note. The Borrower irrevocably waives, to the fullest’ extent
it may effectively do so under applicable law, any objection 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 the same has been brought in an inconvenient
forum. The Borrower hereby consents to any and all process which may be served in any such suit, action or proceeding, (I) by
mailing a copy thereof by registered and certified mail, postage prepaid, return receipt requested, to the Borrower’s,
address shown below or as notified to the Lender and (ii) by serving the same upon the Borrower(s) in any other manner
otherwise permitted by law, and agrees that such service shall in every respect be deemed effective service upon the
Borrower,

 

Waiver Of Jury Trial.
THE BORROWER AND LENDER ACKNOWLEDGE THAT THE RIGHT TO TRIAL BY JURY IS A CONSTITUTIONAL RIGHT, AND THAT IT MAY BE WAIVED UNDER
CERTAIN CIRCUMSTANCES. TO THE EXTENT PERMITTED BY LAW EACH PARTY, AFTER CONSULTING (OR HAVING THE OPPORTUNITY TO CONSULT) WITH
COUNSEL OF ITS CHOICE, WAIVES ANY RIGHT TO TRIAL BY JURY IN THE EVENT OF LITIGATION RELATED TO THIS NOTE OR ANY OTHER DOCUMENT,
INSTRUMENT OR TRANSACTION BETWEEN THE PARTIES.

 

Judicial Reference
Provision. In the event the above Jury Trial Waiver is unenforceable, the parties elect to proceed under this Judicial Reference
Provision, With the exception of the items specified below, any controversy, dispute or claim between the parties relating to this
Note or any other document, instrument or transaction between the parties (each, a “Claim”), will be resolved by a
reference proceeding in California pursuant to Sections 638 et seq. of the California Code of Civil Procedure, or their successor
sections, which shall constitute the exclusive remedy for the resolution of any Claim, including whether the Claim is subject to
reference. Venue for the reference will be the Superior Court in the County where real property involved in the action, if any,
is located, or in a County where venue is otherwise appropriate under law (the “Court”). The following matters shall
not be subject to reference: (i) nonjudicial foreclosure of any security interests in real or personal property, (ii) exercise
of self-help remedies (including without limitation set-off), (iii) appointment of a receiver, and (iv) temporary, provisional
or ancillary remedies (including without limitation writs of attachment, writs of possession, temporary restraining orders or preliminary
injunctions). The exercise of, or opposition to, any of the above does not waive the right to a reference hereunder.

 

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The referee shall be
selected by agreement of the parties. If the parties do not agree, upon request of any party a referee shall be selected by the
Presiding Judge of the Court. The referee shall determine all issues in accordance with existing case law and statutory law of
the State of California, including without limitation the rules of evidence applicable to proceedings at law. The referee is empowered
to enter equitable and legal relief, and rule on any motion which would be authorized in a court proceeding, including without
limitation motions for summary judgment or summary adjudication. The referee shall issue a decision, and pursuant to CCP §644
the referee’s decision shall be entered by the Court as a judgment or order in the same manner as if tried by the Court.
The final judgment or order from any decision or order entered by the referee shall be fully appealable as provided by law. The
parties reserve the right to findings of fact, conclusions of law, a written statement of decision, and the right to move for a
new trial or a different judgment, which new trial if granted, will be a reference hereunder. AFTER CONSULTING (OR HAVING THE OPPORTUNITY
TO CONSULT) WITH COUNSEL OF ITS CHOICE, EACH PARTY AGREES THAT ALL CLAIMS RESOLVED UNDER THIS REFERENCE PROVISION WILL BE DECIDED
BY A REFEREE AND NOT A JURY.

 

Executed as of August
17, 2017.

 

	 	Borrower:
	 	 
	 	H.D.D. LLC

 

	 	By:	Truett-Hurst, Inc., Manager

 

	 	By:	/s/ Phillip L. Hurst
	 	 	Phillip L. Hurst, Chief Executive Officer/Chairman

 

	 	125 Foss Creek Circle 

Healdsburg, California 

95448

 

AR
Line of Credit Note

 

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    	 	52017.09.12 8-K EX 10.1

 Exhibit 10.1
                                                                    

August 31, 2017

Randy White
[_____________]
[_____________]

Dear Randy:  

We are pleased to offer you the position of Senior Vice President, Global Operations & Supply Chain for Masonite International.  In this role you will report directly to me.  Details of your offer are as follows:

		
	Position:
	=    Senior Vice President, Global Operations & Supply Chain    

		
	Compensation:
	=    Base Salary: $400,000 annually and paid bi-weekly

		
	•
	Sign-On Bonus:  You will receive a sign-on bonus of $250,000 (gross), subject to applicable tax withholding, payable on or before March 15, 2018.  This bonus includes a reimbursement agreement schedule should you choose to leave the company prior to completing two years of employment. If voluntary termination occurs within 24 months of the payment of the signing bonus, a sliding payback scale would be used: 0-12 months-100%, 13-18 months-75%, or 19-24 months-50% of the gross amount to be paid back.

		
	•
	Incentive Plan: Upon your start date, you will be eligible to participate in the Management Incentive Plan (MIP) as approved by Masonite’s Leadership Team and as per plan guidelines.  Your current target eligibility is 55% of your base salary. Under our current plan design, the maximum payout is 200% of your target amount.  You will be paid a guaranteed payment of $55,000 for the 2017 partial plan year, on or before March 15, 2018.

Masonite Corporation
One Tampa City Center ▪ 201 N Franklin Street ▪ Suite 300 ▪ Tampa, FL  33602 • Telephone: (813) 877-2726
www.masonite.com

		
	•
	Work Location and Relocation: Your work location will be the Pittsburg, PA area until the summer of 2018, at which time you agree your work location will be moved to the Tampa, FL area.  At that time, you will be eligible for company assistance to relocate from PA to FL, through the Masonite Relocation Plan – Homeowner Program. Your Flexible Benefits allowance under the Plan will be $25,000 (see plan summary attached and refer to plan document for further details). This program includes a reimbursement agreement schedule.  If voluntary termination occurs within 24 months of relocation, a sliding payback scale would be used: 0-12 months-100%, 13-18 months-75%, 19-24 months-50% of the gross amount to be paid back. Should your current home not sell within a reasonable and mutually agreed upon time period once the relocation process is initiated in 2018, Masonite agrees to purchase the property, noting terms and conditions to be reviewed with the relocation vendor at that time.  

		
	•
	Long-Term Incentive (LTI) New Hire Award:  Upon hire you will be granted an Equity Award of Restricted Stock Units (RSUs) with a grant value of $250,000.  The number of RSUs will be calculated using Masonite’s closing stock price on the trading date prior to the grant date.  The vesting of this initial award will be:  50% after 1 year and 50% after 2 years.  The details of this award will be outlined in an Award Agreement.  

		
	•
	Annual LTI Award: Your position makes you eligible for participation in our annual Equity Award program, as approved by the Masonite Board of Directors, beginning with the 2018 grant. The target for your position is currently 100% of base salary. Details of the annual grant are outlined in applicable Award Agreements.  

Under our current LTIP design, 50% of the grant value is in Performance Restricted Stock Units (PRSUs) with a 3-year cliff vesting and may pay out up to 200% (based on shares granted); 20% of the grant value is in Stock Appreciation Rights (SARs) with a 3-year ratable vesting (33-33-34%); and 30% of the grant value is in time-based RSUs with a 3-year ratable vesting (25-25-50%).
		
	Additional: 
	=     Full benefits package as per policy beginning the first day of the month following your start date.  [NOTE: you will have a 30-day period from your start date to enroll in benefits.]  You will be automatically enrolled in the company’s 401(k) plan.  Company matching contributions begin after one (1) year of service. [NOTE: you have the ability to make changes to your 401(k) deferral percentage at any time.]

Masonite Corporation
One Tampa City Center ▪ 201 N Franklin Street ▪ Suite 300 ▪ Tampa, FL  33602 • Telephone: (813) 877-2726
www.masonite.com

Your offer is contingent upon the satisfactory completion of a drug screen and background check.  Further information in regards to the background and drug screening will be sent in a separate email from Linda Bothwell.  This offer remains valid through September 6, 2017.

If you accept this offer, I anticipate your start date will be on or before September 25, 2017.

We look forward to having you join our team and are very confident that your experience and personal business style will solidly contribute to Masonite’s future success.  We also believe you will benefit from the future being built at Masonite.

Please indicate your acceptance of this offer by signing the enclosed employment offer document and scanning it directly to Linda Bothwell at [______________]. Upon receipt, we will provide the pre-employment package and discuss the next steps.

Please do not hesitate to call me directly with any questions you may have. 

Sincerely,

Fred Lynch
President & Chief Executive Officer

Masonite Corporation
One Tampa City Center ▪ 201 N Franklin Street ▪ Suite 300 ▪ Tampa, FL  33602 • Telephone: (813) 877-2726
www.masonite.com

CONFIDENTIAL

EMPLOYMENT OFFER – Randy White

Please indicate your acceptance of our offer for Senior Vice, Global Operations & Supply Chain with Masonite by signing below and scanning to Linda Bothwell at [______________].

I accept the offer as outlined in the attached letter dated August 31, 2017.

_______________________________            ______________________
Name    Date

Masonite Corporation
One Tampa City Center ▪ 201 N Franklin Street ▪ Suite 300 ▪ Tampa, FL  33602 • Telephone: (813) 877-2726
www.masonite.com

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