Document:

Exhibit 10.27

 

EXECUTION VERSION

 

FOURTEENTH AMENDMENT TO LOAN AND SECURITY AGREEMENT, dated as of October 16, 2014 (this “Amendment”), among NEW MOUNTAIN FINANCE SPV FUNDING, L.L.C., a Delaware limited liability company (the “Borrower”), NEW MOUNTAIN FINANCE HOLDINGS, L.L.C., a Delaware limited liability company, (the “Collateral Administrator”), WELLS FARGO SECURITIES, LLC, a Delaware limited liability company (the “Administrative Agent”), WELLS FARGO BANK, NATIONAL ASSOCIATION, as a lender (the “Lender”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, as collateral custodian (the “Collateral Custodian”).

 

WHEREAS, the Borrower, the Collateral Administrator, the Administrative Agent, the Lender, the other lenders party from time to time thereto and the Collateral Custodian are parties to the Loan and Security Agreement, dated as of October 27, 2010 (as amended from time to time prior to the date hereof, the “Loan and Security Agreement”), providing, among other things, for the making and the administration of the Advances by the lenders to the Borrower; and

 

WHEREAS, the Borrower, the Collateral Administrator, the Administrative Agent, the Collateral Custodian and the Lender desire to amend the Loan and Security Agreement in accordance with Section 12.1 thereof and subject to the terms and conditions set forth herein.

 

NOW THEREFORE, in consideration of the foregoing premises and the mutual agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

 

ARTICLE I

 

Definitions

 

SECTION 1.1.                                          Defined Terms.  Terms used but not defined herein have the respective meanings given to such terms in the Loan and Security Agreement.

 

ARTICLE II

 

Amendments to Loan and Security Agreement

 

SECTION 2.1.                                          Section 1.1 of the Loan and Security Agreement is hereby amended by deleting the definitions of “Commitment Reduction Percentage” and “Revolving Period End Date” in their entireties and replacing them with the following:

 

“Commitment Reduction Percentage”: (a) On or prior to October 27, 2012, a rate per annum equal to 3.0%, (b) after October 27, 2012 and on or prior to October 27, 2013, a rate per annum equal to 2.0%, (c) after October 27, 2013 and on or prior to December 26, 2014, a rate per annum equal to 1.0% and (d) after December 26, 2014, zero.

 

 

“Revolving Period End Date”: The earliest to occur of (a) December 26, 2014 and (b) the date of the declaration of the Revolving Period End Date pursuant to Section 9.2(a).

 

SECTION 2.2.                                          Section 2.3(a)(iii) of the Loan and Security Agreement shall be amended by deleting “October 27, 2014” and inserting “December 26, 2014” in lieu thereof.

 

ARTICLE III

 

Representations and Warranties

 

SECTION 3.1.                                          The Borrower hereby represents and warrants to the Administrative Agent and the Lender that, as of the date first written above, (i) no Default or Event of Default has occurred and is continuing and (ii) the representations and warranties of the Borrower contained in the Loan and Security Agreement are true and correct in all material respects on and as of such day (other than any representation and warranty that is made as of a specific date).

 

ARTICLE IV

 

Conditions Precedent

 

SECTION 4.1.                                          This Amendment shall become effective as of the Amendment Date upon the satisfaction of the following conditions (or until such conditions are waived in writing by the Administrative Agent in its sole discretion):

 

(a)                                 this Amendment shall have been duly executed by, and delivered to, the parties hereto; and

 

(b)                                 the Administrative Agent shall have received satisfactory evidence that the Borrower and the Collateral Administrator have obtained all required consents and approvals of all Persons to the execution, delivery and performance of this Amendment and the consummation of the transactions contemplated hereby.

 

ARTICLE V

 

Miscellaneous

 

SECTION 5.1.                                          Governing Law. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

SECTION 5.2.                                          Severability Clause  In case any provision in this Amendment shall be invalid, illegal or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

 

SECTION 5.3.                                          Ratification  Except as expressly amended hereby, the Loan and Security Agreement is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect.  This Amendment shall form a part of the Loan and Security Agreement for all purposes.

 

SECTION 5.4.                                          Counterparts  The parties hereto may sign one or more copies of this Amendment in counterparts, all of which together shall constitute one and the same agreement.  Delivery of an executed signature page of this Amendment by facsimile or email transmission shall be effective as delivery of a manually executed counterpart hereof.

 

SECTION 5.5.                                          Headings  The headings of the Articles and Sections in this Amendment are for convenience of reference only and shall not be deemed to alter or affect the meaning or interpretation of any provisions hereof.

 

SECTION 5.6.                                          FATCA  This Amendment may result in a “material modification” that affects this transaction’s status as a “grandfathered obligation” (each as defined in FATCA) for FATCA purposes. The Collateral Custodian shall be entitled to rely, and shall be fully protected in relying upon, the foregoing statement and shall assume that this transaction’s status as a “grandfathered obligation” under FATCA has changed and this transaction is no longer a “grandfathered obligation”.

 

 

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

 

	
 
    	
NEW   MOUNTAIN FINANCE SPV FUNDING, L.L.C., as the Borrower
    
	
 
    	
 
    
	
 
    	
By:   New Mountain Finance Holdings, L.L.C., its managing member
    
	
 
    	
 
    
	
 
    	
By:    New Mountain Finance Corporation, its   managing member
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   DAVID M. CORDOVA
    
	
 
    	
 
    	
Name:   David M. Cordova
    
	
 
    	
 
    	
Title:   Chief Financial Officer and Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
NEW   MOUNTAIN FINANCE HOLDINGS, L.L.C., as the Collateral   Administrator
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   New Mountain Finance Corporation, its managing member
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   DAVID M. CORDOVA
    
	
 
    	
 
    	
Name:   David M. Cordova
    
	
 
    	
 
    	
Title:   Chief Financial Officer and Treasurer
    

 

[Signature Page to Fourteenth Amendment to Loan and Security Agreement]

 

 

	
 
    	
WELLS   FARGO SECURITIES, LLC,
    
	
 
    	
as   Administrative Agent
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   ALLAN SCHMITT
    
	
 
    	
 
    	
Name:   Allan Schmitt
    
	
 
    	
 
    	
Title:   Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
WELLS   FARGO BANK, NATIONAL ASSOCIATION,
    
	
 
    	
representing   100% of the aggregate Commitments of the Lenders in effect as of the date   hereof
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   RAJ SHAH
    
	
 
    	
 
    	
Name:   Raj Shah
    
	
 
    	
 
    	
Title:   Managing Director
    

 

[Signature Page to Fourteenth Amendment to Loan and Security Agreement]

 

 

 

	
 
    	
WELLS FARGO BANK, NATIONAL ASSOCIATION, not in its individual capacity but solely as Collateral Custodian
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   MICHAEL ROTH
    
	
 
    	
 
    	
Name:   Michael Roth
    
	
 
    	
 
    	
Title:   V.P.
    

 

[Signature Page to Fourteenth Amendment to Loan and Security Agreement]Exhibit 10.1

TRANSITION AND SEPARATION AGREEMENT

The parties to this Transition and Separation Agreement (this "Agreement") are Mark D. Moreland ("Employee") and Craft Brew Alliance, Inc. (the "Company"). This Agreement is effective as of January 1, 2015 (the "Effective Date").

RECITALS

	A.	Employee is employed by the Company pursuant to a letter agreement dated March 29, 2010 (the "Employment Letter").

	B.	The Company wishes to terminate Employee's employment with the Company effective May 31, 2015 (the "Termination Date").

	C.	The Company and Employee wish to provide for the smooth transition of Employee's duties and responsibilities.

AGREEMENT

The Company and Employee agree as follows:

		1.	Except as otherwise provided in this Agreement, the terms and provisions of the Employment Letter will continue to apply to Employee's employment with the Company. Nothing in this Agreement shall be considered grounds for a "good reason" termination by Employee under the Employment Letter.

		2.	Unless earlier terminated, Employee's employment with the Company will end on the Termination Date. The Company will pay Employee all earned and unpaid wages and all unused Paid Time Off accrued through the Termination Date as provided in the Employment Letter. The Company will accomplish this payment by mailing to Employee a check for such amounts to the home address he has on record with the Company. Employee recognizes that the payment will be less regular deductions and withholdings.

		3.	As of the Effective Date, Employee's title will be Senior Consultant.

		4.	From the Effective Date through the Termination Date, Employee will be available to provide services for the Company when and as requested pursuant to reasonable notice by the Company’s CEO.

		5.	As of the Effective Date, Employee's annual base rate of salary will be $256,000. Employee shall not be entitled to any new equity grants or a cash incentive bonus with respect to services performed after December 31, 2014.

		6.	Employee's termination under this Agreement on the Termination Date will be treated as a termination by the Company other than "for cause" under the Employment Letter, and Employee will be entitled to the severance and other benefits provided for in the Employment Letter on the terms set forth therein; provided, however, that for purposes of this Agreement and the Employment Letter, in addition to the grounds for termination "for cause" specified in the Employment Letter, a breach of this Agreement by Employee, including without limitation any willful failure to perform work or tasks assigned to Employee by the Company’s CEO in a time and manner reasonably acceptable to the Company, will be grounds for a "for cause" termination by the Company.

 

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		7.	As set forth in the Employment Letter, if Employee becomes employed by or associated with a brewing or other company that the Company determines, in its reasonable discretion, is a competitor of the Company or Anheuser-Busch, LLC, Employee's severance benefits will terminate as of the effective date of such employment or association; provided, however, that for the avoidance of doubt, competitors for purposes of this Agreement do not include wineries or distillers that do not also manufacture or sell malt beverages.

		8.	In addition to the severance benefits provided for in the Employment Letter, if Employee's employment continues until the Termination Date, or Employee is terminated by the Company other than "for cause" prior to the Termination Date, Employee will continue to be eligible for the Performance Award payable pursuant to the Performance Award Agreement between Employee and the Company dated effective May 22, 2013 (the "Continuing Award"), subject to the modifications set forth below, notwithstanding that Employee's employment will have terminated prior to the "Vesting Date" set forth in the agreement granting the Continuing Award. The Continuing Award is hereby modified such that it will be settled in cash no later than March 14, 2016, with the cash payment equal to 74% of the product of the number of shares otherwise issuable with respect to the Continuing Award and the closing share price of the Company's common stock on March 13, 2016. Payment of the Continuing Award with respect to a performance goal continues to be subject to the written determination of the administrator of the Continuing Award after January 1, 2016, that the Company has achieved (A) with respect to the 3-Year Net Sales goal at least 92.64% of the specified performance goal and (B) with respect to the 3-Year Adjusted EBITDA goal at least 84.67% of the specified performance goal, and the respective portion of the Continuing Award is forfeited if such goal is not met. Additionally, in the event that (A) Employee's severance benefits are terminated pursuant to Paragraph 7 above prior to the payment of the Continuing Award or (B) Employee fails to execute the general release of claims contemplated in the Employment Letter within 30 days following the Termination Date (provided that such release will not require Employee to release the Company from any claims arising out of this Agreement), all of Employee's rights with respect to the Continuing Award will be forfeited.

		9.	The Company will not contest any application by Employee for unemployment benefits based on a termination on the Termination Date.

		10.	If the Company receives a reference request from a prospective employer of Employee, the Company will respond consistent with its press releases regarding Employee. Employee is permitted to seek references from individual employees of the Company.

 

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		11.	Employee will make no negative or disparaging oral or written remarks or statements about the Company, its officers, directors, or employees, or its products to any person or entity, either publicly or privately, including, without limitation, on any social networking, blog, or similar Internet site. Company will make no negative or disparaging oral or written remarks or statements about Employee to any person or entity, either publicly or privately, including, without limitation, on any social networking, blog, or similar Internet site.

		12.	Employee acknowledges and reaffirms Employee's continuing obligations under any Confidentiality Agreement that Employee entered into in connection with Employee's employment with the Company, and Employee will strictly comply with the terms of the Confidentiality Agreement.

		13.	Except as otherwise provided in this Agreement and the Employment Letter, including without limitation Paragraph 12 above, this Agreement constitutes the entire agreement of the parties concerning the subject matter of this Agreement.

		14.	The parties acknowledge that the only consideration for this Agreement is the consideration expressly described herein, that each party fully understands the meaning and intent of this Agreement, and that this Agreement has been executed voluntarily.

		15.	The severance and other benefits under this Agreement are intended to be exempt from the requirements of Section 409A of the Internal Revenue Code by reason of being either "short-term deferrals" within the meaning of Treasury Regulation Section 1.409A-1(b)(4) or separation pay due to involuntary separation from service under Treasury Regulation Section 1.409A-1(b)(9)(iii). All provisions of this Agreement shall be interpreted in a manner consistent with preserving these exemptions.

		16.	If any litigation, suit, or proceeding is instituted to enforce, interpret, or rescind this ‎Agreement, or otherwise in connection with the subject matter of this Agreement, ‎the prevailing party shall be entitled to recover, in addition to any other relief ‎awarded, its attorneys’ fees and costs at trial, any appeal, collection of the award, ‎or the enforcement of any order.‎

	
EMPLOYEE

	 	
CRAFT BREW ALLIANCE, INC.

	 	 	 	 
	
/s/ Mark D. Moreland

	 	
By:

	
/s/Andrew J. Thomas

	
Mark D. Moreland

	 	
Name:

	
Andrew J. Thomas

	
Date: October 31, 2014

	 	
Title:

	
President and CEO

	 	 	
Date:

	
October 31, 2014

 

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