Document:

EX-10.6

	[***]:	Portions of this exhibit have been omitted pursuant to a Confidential Treatment Request. An unredacted version of this exhibit has been filed separately with the Securities and Exchange Commission 

 
 

 
 August 2, 2012 

Confirmation of Swap Transaction 

THIS LETTER AGREEMENT SHOULD BE REVIEWED, EXECUTED 

BY AN AUTHORIZED PERSON(S), AND RETURNED IMMEDIATELY 

VIA EMAIL OR BY FAX TO 404-926-5827 
 Wayne
Wilson 
 CFO 
 Malibu Boats, LLC 

5075 Kimberly Way 
 Loudon, TN 37774 

Ph#: 865-458-7239 
 Email: waynew@malibuboats.com 

REF: 167125 
 The purpose of this Confirmation is to set forth
the terms and conditions of the Swap Transaction entered into between SunTrust Bank and Malibu Boats, LLC (“Counterparty”) on the Trade Date specified below. This communication constitutes a “Confirmation” as referred to in the
Agreement specified below. 
 The definitions and provisions contained in the 2006 Definitions, as published by the International Swaps and Derivatives
Association, Inc. (the “Definitions”), are incorporated into this Confirmation. In the event of any inconsistency between the Definitions and this Confirmation, this Confirmation will govern. This Confirmation supplements, forms a part of,
and is subject to, the ISDA Master Agreement between SunTrust Bank and the Counterparty, dated as of July 17, 2012, and as amended and supplemented from time to time (the “Agreement”). All provisions contained in, or incorporated by
reference into, the Agreement will govern this Confirmation except as expressly modified below. 

	1.	The terms of the particular Swap Transaction to which this Confirmation relates are as follows: 

  

	 Notional Amount: 
	See attached Schedule A 

  

	 Trade Date: 
	August 2, 2012 

  

	 Effective Date: 
	July 11, 2012 

  

	 Termination Date: 
	June 30, 2017, with adjustment in accordance with the Modified Following Business Day Convention 

  

	 Business Days: 
	New York 

  

	 Calculation Agent: 
	SunTrust Bank 

  

	 Fixed Amounts: 
	

  

	 Fixed Rate Payer: 
	Counterparty 

  

	 Fixed Rate Payer Payment Dates: 
	The last day of each September, December, March and June, commencing September 28, 2012, through and including the Termination Date, subject to adjustment in accordance with the Modified Following Business Day convention 

 

	 Fixed Rate: 
	0.61000% per annum 

  

	 Fixed Rate Day Count Fraction: 
	Actual/360 

  

	 Adjustment to Period End Dates: 
	Applicable 

  

	 Floating Amounts: 
	

  

	 Floating Rate Payer: 
	SunTrust bank 

  

	 Floating Rate Payer Period End Dates: 
	The last day of each month, commencing July 31, 2012, through and including the Termination Date, subject to adjustment in accordance with the Modified Following Business Day convention 

 

	 Floating Rate Payer Payment Dates: 
	The last day of each September, December, March and June, commencing September 28, 2012, through and including the Termination Date, subject to adjustment in accordance with the Modified Following Business Day convention 

 

	 Floating Rate for Initial Calculation Period: 
	0.24875% per annum 

  

	 Floating Rate Day Count Fraction: 
	Actual/360 

	 Designated Maturity: 
	1 month 

  

	 Floating Rate Option: 
	USD-LIBOR-BBA 

  

	 Spread: 
	Inapplicable 

  

	 Adjustment to Period End Dates: 
	Applicable 

  

	 Compounding: 
	Inapplicable 

  

	 Reset Dates: 
	The last day of each month 

  

	2.	Other Provisions 

  

	(a)	Relationship Between the Parties. Each party hereto represents to the other as of the Trade Date that (absent a written agreement between the parties that expressly imposes affirmative obligations to the contrary
for this Swap Transaction): 

  

	 	(i)	Non-Reliance. It is acting for its own account, and it has made its own independent decisions to enter into this Swap Transaction and as to whether this Swap Transaction is appropriate or proper for it based upon
its own judgment and upon advice from such advisers as it has deemed necessary. It is not relying on any communication (written or oral) of the other party as investment advice or as a recommendation to enter into this Swap Transaction, it being
understood that information and explanations related to the terms and conditions of this Swap Transaction will not be considered investment advice or a recommendation to enter into this Swap Transaction. No communication (written or oral) received
from the other party will be deemed to be an assurance or guarantee as to the expected results of this Swap Transaction. 

  

	 	(ii)	Assessment and Understanding. It is capable of assessing the merits of and understanding (on its own behalf or through independent professional advice), and understands and accepts, the terms, conditions and
risks of this Swap Transaction. It is also capable of assuming, and assumes, the risks of this Swap Transaction. Status of Parties. The other party is not acting as a fiduciary for or an adviser to it in respect of this Swap Transaction.

  

	(b)	Customer Identification: To help the government fight the funding of terrorism and money-laundering activities, federal law requires SunTrust Bank to obtain, verify, and record certain identifying information
about its customers. The Counterparty will need to provide to SunTrust Bank its legal name, physical address, date of birth, If applicable, and other identifying information, including identifying documents, to assist in this verification process.

	3.	Counterparty Acknowledgements. Counterparty hereby acknowledges the following in connection with this Swap Transaction: 

  

	(a)	Swap Transaction Is an Independent Contract. The payments due by Counterparty under this Swap Transaction shall be due on their respective due dates whether or not: (a) there exists at any time a commitment
for any Financing or any such commitment expires or terminates, (b) any closing of any Financing takes place or is postponed, delayed or terminated, (c) any advance is made, outstanding or repaid in connection with any Financing, either
before, on or after the Effective Date, (d) circumstances and market conditions change such that Counterparty ceases to have any need for, or is unable to obtain, any Financing or extend current financing; or (e) the principal amount of
any Financing is less or more than the Notional Amount of this Swap Transaction, the term of any Financing is shorter or longer than the Term of this Swap Transaction, or any other terms of any Financing differ from the terms of this Swap
Transaction. “Financing” means any loan or other extension of credit from SunTrust Bank (or any other entity) to Counterparty (or any other entity). Counterparty acknowledges that the decision to extend Financing is in the sole discretion
of SunTrust Bank or any other entity, as the case may be, and this Transaction creates no obligation to extend Financing, nor is it evidence of an intent to extend financing. 

 

	(b)	Obligations Upon Early Termination of Swap Transaction. Any obligations of Counterparty in respect of the termination of this Swap Transaction upon the occurrence of any Event of Default, Termination Event
(including any Additional Termination Event) or otherwise pursuant to the Agreement or by the mutual agreement of the parties (each, an “Early Termination Event”), shall be due and payable by Counterparty whether any Early Termination
Event occurs before, on or after the Effective Date. Upon the occurrence of an Early Termination Event, a payment will be due by one party to the other as calculated and payable pursuant to the terms of the Agreement which will include the relevant
party’s losses or costs incurred or gains realized in replacing or providing the economic equivalent of this Swap Transaction at or about the time of such early termination which, in turn, will reflect then current market rates.

  

	4.	Account Details noted below are to be used for electronic funds transfer payments orders and instructions for payments to SunTrust or to the Counterparty. 

Payments to SunTrust: 
 SunTrust
Bank 
 ABA# [***] 
 FBO: [***]

 Account# [***] 
 Attn:
Financial Risk Management, Operations 
 Payments to Counterparty: 

Please advise us your settlement instructions. 
  

	***	Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 Counterparty shall ensure the accuracy of its payment orders and electronic funds instructions. If the payment
orders and instructions inconsistently describe the beneficiary, beneficiary’s bank, or any intermediary bank by name and number, payment might be made by the intermediary of beneficiary’s bank on basis of the number even if the number
identifies a person or bank other than the named beneficiary or bank. Counterparty shall be responsible for any loss associated with such inconsistency. 

Please confirm that the foregoing correctly sets forth the terms of the Swap Transaction by signing this Confirmation and immediately returning all its pages
via email or by fax (without a cover sheet) to 404-926-5827. 
  

									
		 		 	 Accepted and Confirmed as of
 date
first above written:

			
	SunTrust Bank	 		 	Malibu Boats, LLC
					
	By:	 	/s/ Rafeek Ghafur	 		 	By:	 	/s/ Wayne Wilson
		 	 Name: Rafeek Ghafur
 Title: Vice
President
	 		 		 	 Name: Wayne Wilson
 Title: Chief Executive
Officer

 SCHEDULE A 

 

					
	 Period Begin Dates
	 	 Period End Dates
	 	 Notional Amount

			
	 July 11, 2012
	 	September 28, 2012	 	14,250,000.00
	 September 28, 2012
	 	December 31, 2012	 	13,626,562.50
	 December 31, 2012
	 	March 29, 2013	 	13,003,125.00
	 March 29, 2013
	 	June 28, 2013	 	12,379,687.50
	 June 28, 2013
	 	September 30, 2013	 	11,756,250.00
	 September 30, 2013
	 	December 31, 2013	 	11,132,812.50
	 December 31, 2013
	 	March 31, 2014	 	10,509,375.00
	 March 31, 2014
	 	June 30, 2014	 	  9,885,937.50
	 June 30, 2014
	 	September 30, 2014	 	  9,262,500.00
	 September 30, 2014
	 	December 31, 2014	 	  8,550,000.00
	 December 31, 2014
	 	March 31, 2015	 	  7,837,500.00
	 March 31, 2015
	 	June 30, 2015	 	  7,125,000.00
	 June 30, 2015
	 	September 30, 2015	 	  6,412,500.00
	 September 30, 2015
	 	December 31, 2015	 	  5,700,000.00
	 December 31, 2015
	 	March 31, 2016	 	  4,987,500.00
	 March 31, 2016
	 	June 30, 2016	 	  4,275,000.00
	 June 30, 2016
	 	September 30, 2016	 	  3,562,500.00
	 September 30, 2016
	 	December 30, 2016	 	  2,850,000.00
	 December 30, 2016
	 	March 31, 2017	 	  2,137,500.00
	 March 31, 2017
	 	June 30, 2017	 	  1,425,000.00EX-10.9

 Exhibit 10.9 

MANAGEMENT AGREEMENT 

This Management Agreement (this “Agreement”) is entered into as of August 7, 2006 by and between Malibu Boats, LLC, a
Delaware limited liability company (the “Company”), and Malibu Investor, LLC, a Delaware limited liability company (“Parent”). 
  

	A.	The Company is an indirect subsidiary of Parent. 

  

	B.	The Company desires to engage Parent to provide certain management and advisory services to the Company, and Parent desires to provide such services, on the terms set forth in this Agreement. 

 

	C.	The Company has been formed for the purpose of acquiring the business operated by Malibu Boats West, Inc., a California corporation (such transaction being referred to as the “Acquisition”), pursuant to
the Agreement of Purchase and Sale of even date herewith by and among Malibu Boats West, Inc., the Company, and certain individuals (the “Acquisition Agreement”). 

 

	D.	The parties desire to enter into this Agreement on the terms and conditions set forth herein. 

In consideration of the mutual covenants 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: 
  

	1.	Services. Parent agrees that, during Term (as defined below), it will provide the Company with financial, managerial and operational advice on an as-needed basis in connection with the Company’s
business and operations. 

  

	2.	Payment of Fees and Expenses. The Company hereby agrees to pay to Parent (or a member or affiliate of Parent designated by Parent): 

 

	 	a.	a fee (the “Deal Fee”) in the amount of US $1,250,000 payable at the closing of the Acquisition for advice related to the structuring of the Acquisition. 

 

	 	b.	the reimbursement of all out-of-pocket costs and expenses (including, without limitation, costs and expenses of lenders, legal counsel, investment bankers, environmental consultants, due diligence advisors, consultants,
accountants and other advisors) incurred by Parent in connection with the Acquisition, either for itself or on behalf of the Company, such fees and expenses payable by the Company at such closing of the Acquisition or, if the Acquisition is not
consummated, promptly after the time the Company has abandoned the Acquisition. 

  

	 	c.	 a management fee (the “Management Fee”) in the amount of US $500,000 per annum throughout the Term, payable by the Company quarterly
in advance on the last business day of each of December, March, June and September, the first such payment to be made at the closing of the Acquisition for the period from such 

	 	
closing through the last business day of September, in exchange for the services provided to the Company by Parent pursuant to Section 1 of this Agreement; provided that, to
the extent that an event of default or restriction under the credit agreement entered into as part of the Acquisition causes the Company to be prohibited from paying any amounts owed under this Section 2(c), the Company will use
reasonable efforts to cure such event of default, obtain bank waivers and take other reasonable steps as may be necessary to cause its ability to make such payments to be reinstated, whereupon the Company will promptly pay to Parent all such amounts
to the extent not paid in accordance with the preceding provisions of this Section 2(c), together with interest at the rate of 8% per annum, compounding quarterly in each case from the date on which any such amount would have been
payable (absent the deferral arrangement established in this proviso) through the date such amount is actually paid. 

  

	 	d.	the reimbursement of all out-of-pocket fees and expenses incurred by Parent in connection with its providing of services hereunder throughout the Term. 

Each payment made pursuant to this Section 2 shall be paid by wire transfer of immediately available U.S. funds to the account
specified in writing by Parent. 
  

	3.	Term and Termination. 

  

	 	a.	This Agreement shall continue in full force and effect, unless and until terminated in accordance with this Section 3 (the “Term”). 

 

	 	b.	This Agreement may be terminated at any time by mutual consent of the parties. Either party may terminate this Agreement following a material breach of the terms of this Agreement by the other party and a failure to
cure such breach within 30 days following written notice thereof to the breaching party. 

  

	 	c.	Regardless of any such termination, (i) the obligations of the Company under Section 4 below, (ii) any and all accrued and unpaid obligations of the Company owed under Section 2 above
and (iii) the provisions of Section 5 shall survive any termination of this Agreement to the maximum extent permitted under applicable law. 

  

	4.	 Indemnification. In consideration of the execution and delivery of this Agreement by Parent, the Company hereby agrees to indemnify,
defend and hold each of Parent, each member thereof, each fund affiliated with each such member, and each of their respective partners, shareholders, affiliates, directors, officers, fiduciaries, employees and agents and each of the partners,
shareholders, affiliates, directors, officers, fiduciaries, employees and agents of each of the foregoing (collectively, the “Indemnitees”) free and harmless from and against any and all actions, causes of action, suits, losses,
liabilities and damages, and expenses in connection therewith, including without limitation attorneys’ fees and disbursements (collectively, the “Indemnified Liabilities”), incurred by the Indemnitees or any of them as a result
of, or arising out of, or relating to (i) the Acquisition (except for liability of such Indemnitees under Article 6 of the Acquisition Agreement), (ii) the execution, delivery, performance, enforcement or existence of this

  
 2 

	 	
Agreement or the transactions contemplated hereby (including but not limited to any indemnification obligations assumed or incurred by any Indemnitee to or on behalf of Seller, or any of its
accountants or other representatives, agents or affiliates), or (iii) the rendering of services by Indemnitee under this Agreement, except in any case for any such Indemnified Liabilities arising on account of such Indemnitee’s gross
negligence or willful misconduct, and if and to the extent that the foregoing undertaking may be unenforceable for any reason, the Company hereby agrees to make the maximum contribution to the payment and satisfaction of each of the Indemnified
Liabilities which is permissible under applicable law; provided, however, that the foregoing indemnity provisions of this Section 4 are not intended and shall not be construed to provide to the Indemnitees an independent
right to recover from the Company or its subsidiaries for losses incurred as a result of investments made by any of the Indemnitees in the Company as a right. None of the Indemnitees shall be liable to the Company or any of its affiliates for any
act or omission suffered or taken by such Indemnitee that does not constitute gross negligence or willful misconduct. 

  

	5.	Miscellaneous. 

  

	 	a.	Choice of Law. This Agreement shall be governed by and construed in accordance with the domestic substantive laws of the State of California without giving effect to any choice or conflict of law provision or
rule that would cause the application of the domestic substantive laws of any other jurisdiction. 

  

	 	b.	Assignment. Except as provided below, no party shall have the right to assign this Agreement. Notwithstanding the foregoing, Parent may assign all or part of its rights and obligations hereunder to any affiliate
thereof which provides services similar to those called for by this Agreement and which is controlled at least 50% by, or under at least 50% common control with, Parent, in which event Parent shall be released of all of its rights and obligations
hereunder. 

  

	 	c.	Amendment; Waiver. No amendment or waiver of any term, provision or condition of this Agreement shall be effective, unless in writing and executed by each party hereto. No waiver on any one occasion shall extend
to or effect or be construed as a waiver of any right or remedy on any future occasion. No course of dealing of any person nor any delay or omission in exercising any right or remedy shall constitute an amendment of this Agreement or a waiver of any
right or remedy of any party hereto. Regardless of the foregoing, without the written consent of the holders of a majority of the then outstanding Units of Malibu Boats Holdings, LLC (excluding the Units held by Parent), the Management Fee payable
under this Agreement shall not be increased to an amount exceeding $750,000 per year; provided that the Management Fee may be increased up to $750,000 per year without such consent. 

 

	 	d.	Entire Agreement. This Agreement contains the entire understanding of the parties with respect to the subject matter hereof and supersedes any prior communication or agreement with respect thereto.

  
 3 

	 	e.	Notices. All notices, elections or other communications required or permitted hereunder shall be in writing and shall be delivered (a) in person, (b) by registered or certified mail, postage prepaid,
return receipt requested, (c) by a generally recognized courier or messenger service that provides written acknowledgement of receipt by the addressee, or (d) by facsimile or other generally accepted means of electronic transmission with a
verification of delivery. Notices are deemed delivered when actually delivered to the address for notices. Notices must be given to parties at the address set forth on the signature page hereto, although any party may furnish, from time to time,
other addresses for notices to it. 

  

	 	f.	Severability. If in any judicial or arbitral proceedings a court or arbitrator shall refuse to enforce any provision of this Agreement, then such unenforceable provision shall be deemed eliminated from this
Agreement for the purpose of such proceedings to the extent necessary to permit the remaining provisions to be enforced. To the full extent, however, that the provisions of any applicable law may be waived, they are hereby waived to the end that
this Agreement be deemed to be valid and binding agreement enforceable in accordance with its terms, and if any provision hereof shall be found to be invalid or unenforceable, such provision shall be construed by limiting it so as to be valid and
enforceable to the maximum extent consistent with and possible under applicable law. 

  

	 	g.	Counterparts. This Agreement may be executed in any number of counterparts and by each of the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of
which together shall constitute one and the same agreement. A facsimile signature page shall be deemed an original signature page. 

[Remainder of Page Intentionally Left Blank] 

  
 4 

 IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed on its behalf as
an instrument under seal as of the date first above written by its officer or representative thereunto duly authorized. 
  

							
	 Company:
	 		 	Malibu Boats, LLC
				
		 		 	By:	 	 /s/ Michael Hooks

		 		 	Name:	 	Michael Hooks
		 		 	Its:	 	President
		 		 	Address:	 	c/o Black Canyon Capital LLC
		 		 		 	9665 Wilshire Blvd., Suite 888
		 		 		 	Beverly Hills, CA 90212
			
	 Parent:
	 		 	Malibu Investors, LLC
				
		 		 	By:	 	 /s/ Michael Hooks

		 		 	Name:	 	Michael Hooks
		 		 	Its:	 	Authorized Officer
		 		 	Address:	 	c/o Black Canyon Capital LLC
		 		 		 	9665 Wilshire Blvd., Suite 888
		 		 		 	Beverly Hills, CA 90212
				
		 		 		 	and
				
		 		 		 	c/o Horizon Holdings, LLC
		 		 		 	Three Embarcadero Centre,
		 		 		 	23rd Floor
		 		 		 	San Francisco, CA 94111-4026
		 		 		 	Attention: Phil Estes
				
		 		 		 	with a copy (for purposes of notices) to:
		 		 		 	O’Melveny & Myers LLP
		 		 		 	1999 Avenue of the Stars,
		 		 		 	Suite 700
		 		 		 	Los Angeles, CA 90067
		 		 		 	Attention: Eric Zabinski, Esq.
				
		 		 		 	and
				
		 		 		 	Orrick, Herrington & Sutcliffe LLP
		 		 		 	405 Howard Street
		 		 		 	San Francisco, CA 941.05
		 		 		 	Attention: John Seegal, Esq.

 SIGNATURE PAGE TO MANAGEMENT
AGREEMENT

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