Document:

Exhibit

Exhibit 10.19

LEVI STRAUSS & CO.
SENIOR EXECUTIVE SEVERANCE PLAN

TABLE OF CONTENTS

	
			
	1.
	Definitions.
	1

	2.
	Eligibility for Severance Payments and Severance Benefits.
	4

	3.
	Amount and Form of Severance Payments and Severance Benefits.
	4

	4.
	Administration.
	11

	5.
	Amendment or Termination.
	11

	6.
	Claims Procedure.
	11

	7.
	Source of Payments.
	13

	8.
	Inalienability.
	13

	9.
	Recovery of Payments Made by Mistake.
	13

	10.
	No Enlargement of Employment Rights.
	13

	11.
	Applicable Law.
	13

	12.
	Severability.
	13

	13.
	Execution
	13

LEVI STRAUSS & CO.
SENIOR EXECUTIVE SEVERANCE PLAN
Introduction. Levi Strauss & Co. (the “Company”) hereby amends and restates the Levi Strauss & Co. Severance Plan for the Worldwide Leadership Team (the “WLT Severance Plan”), and renames the WLT Severance Plan the “Levi Strauss & Co. Senior Executive Severance Plan” (the “Plan”). The Plan is established for the benefit of eligible executives who are direct reports to the President and Chief Executive Officer (“CEO”) of the Company and the CEO (“Senior Executives”). The Company’s Board of Directors (the “Board”) approved the severance terms under the Plan effective January 28, 2020.
The purpose of the Plan is to provide an eligible Senior Executive with Severance Payments and Severance Benefits in the event the Senior Executive’s employment is terminated under circumstances entitling the Senior Executive to Severance Payments and Severance Benefits, as determined in the sole discretion of the Company. The Plan is an unfunded welfare benefit plan for purposes of ERISA, a severance pay plan within the meaning of United States Department of Labor Regulation Section 2510.3-2(b) and an involuntary separation pay plan within the meaning of Treasury Regulation Section 1.409A-1(b)(9). Except as set forth herein, this Plan supersedes all prior policies and practices of the Company with respect to severance, separation pay and separation benefits for Senior Executives whose employment is terminated on or after January 28, 2020. Except as set forth herein, this Plan is the only severance program for such Senior Executives and specifically supersedes the WLT Severance Plan.
1.Definitions. 
1.1.    “Cause” means that the Senior Executive has:
(a)committed any willful, intentional or grossly negligent act materially injuring the interest, business or reputation of the Company or an affiliate of the Company;
(b)engaged in any willful misconduct, including insubordination, in respect of his or her duties or obligations to the Company or an affiliate of the Company;
(c)violated or failed to comply in any material respect with the Company’s or any affiliate of the Company’s published rules, regulations or policies (including, without limitation, the Company’s Worldwide Code of Business Conduct), as in effect from time to time;
(d)committed a felony or misdemeanor involving moral turpitude, fraud, theft or dishonesty (including entry of a nolo contendere plea resulting in conviction of a felony or misdemeanor involving moral turpitude, fraud, theft or dishonesty);
(e)misappropriated or embezzled any property of the Company or an affiliate of the Company (whether or not a misdemeanor or felony);
(f)failed, neglected or refused to perform the employment duties, as applicable, related to his or her position as from time to time assigned to him or her; or

(g)breached any applicable employment agreement.
For purposes of this Section 1.1, “willful” means an act or omission in bad faith and without reasonable belief that such act or omission was in, or not opposed to, the best interests of the Company.
1.2.    “Change in Control” means “Change in Control” as defined in the Levi Strauss & Co. 2019 Equity Incentive Plan, as amended, or any successor plan thereto;  provided, however, that to the extent necessary to avoid taxation under Code Section 409A, a “Change in Control” shall not be deemed to occur unless the transaction or transactions satisfy Treasury Regulation Section 1.409A-3(i)(5). 
1.3.    “Code” means the Internal Revenue Code of 1986, as amended.
1.4.    “Company” means Levi Strauss & Co.
1.5.    “Compensation” means:
(a)     For purposes of determining an eligible Senior Executive’s Severance Pay under Section 3.1(a), the Senior Executive’s annual base salary rate in effect on his or her Termination Date divided by fifty-two (52).
Compensation = annual base salary
                          52
(b)    For purposes of determining an eligible Senior Executive’s Severance Pay under Section 3.1(b), (i) the sum of the Senior Executive’s (A) annual base salary rate in effect on his or her Termination Date, plus (B) target bonus amount under the Annual Incentive Plan (“AIP”) for the fiscal year in which the Senior Executive’s termination is announced (ii) divided by fifty-two (52).
Compensation = annual base salary + AIP target bonus for the fiscal year in which the termination is announced
                                            52
Compensation is solely used for purposes of determining an eligible Senior Executive’s Severance Pay under the Plan.
1.6.    “Employee” means a common-law employee of the Company on the Home Office Payroll, including an employee classified by the Company as a U.S. expatriate employee, who is not subject to the overtime provisions of the Fair Labor Standards Act, and who is a Home Office Payroll employee, and who has not signed an agreement that he or she is not entitled to benefits from the Company. An Employee does not include any person who is designated by the Company as an independent contractor or an employee of a third party (including, but not limited, to a “leased employee,” within the meaning of Code Section 414(n), or any individual who has entered into an independent contractor or consultant agreement with the Company. Individuals not treated as Employees by the Company on its payroll records are excluded from Plan participation even if a court or administrative agency determines that such individuals are Employees.

1.7.     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.
1.8.     “Good Reason” means a material negative change in the employment relationship without the Senior Executive’s prior written consent, as evidenced by the occurrence of any of the following: (i) a material diminution in the Senior Executive’s duties, responsibilities or authority; (ii) material reduction of the Senior Executive’s base salary, target annual bonus as a percentage of the Senior Executive’s base salary or target award under the Levi Strauss & Co. 2019 Equity Incentive Plan as a percentage of the Senior Executive’s base salary, except for across-the-board changes for Senior Executives; (iii) the mandatory relocation of the Senior Executive’s principal business location to an office more than fifty (50) miles from the Senior Executive’s primary residence; or (v) material breach by the Company of any applicable employment agreement.
For each event described above in this Section 1.8, the Senior Executive must notify the Company within ninety (90) days of the occurrence of the event and the Company shall have thirty (30) days after receiving such notice in which to cure. If the Company fails to cure, the Senior Executive’s voluntary termination shall not be considered to be for Good Reason for purposes of this Plan unless the Senior Executive voluntarily terminates employment not later than thirty (30) days after the expiration of the cure period.
1.9.     “General Release Agreement” means a legally binding document, in a form acceptable to the Company, as amended from time to time, in which an Employee waives any and all claims against the Company (as defined in the General Release Agreement) related to his or her employment or separation from employment. Whether or not a Senior Executive chooses to sign the General Release Agreement is completely at his or her discretion.
1.10.     “Performance Award” means “Performance Award” as used in the Levi Strauss & Co. 2019 Equity Incentive Plan, as amended, or any successor plan thereto.
1.11.     “Plan” means the Levi Strauss & Co. Senior Executive Severance Plan, as set forth in this instrument and as hereafter amended.  The Plan was formerly known as the Levi Strauss & Co. Severance Plan for the Worldwide Leadership Team.
1.12.     “Senior Executive” means each Employee identified on Schedule A.
1.13.     “Severance Benefits” means the severance benefits provided to a Senior Executive pursuant to Section 3.2 on account of his or her termination from the Company.
1.14.     “Severance Payment(s)” or “Severance Pay” means the payments to an eligible Senior Executive pursuant to Section 3.1 on account of his or her termination from the Company.
1.15.    “Termination Date” means the Senior Executive’s final day of employment with the Company which date, in the case of the Senior Executive’s involuntary termination, shall be communicated by the Company to the Senior Executive; provided, however, that to the extent necessary to avoid taxation under Code Section 409A, a Senior Executive’s Termination Date shall be the date the Senior Executive experiences a “separation from service” within the meaning of Code Section 409A and the Treasury Regulations thereunder.

1.16.     “Year of Service” means a twelve (12)-month period of employment beginning on the later of the Senior Executive’s hire or rehire date. Years of Service are calculated in full twelve (12)-month periods with no credit for partial years.
2.Eligibility for Severance Payments and Severance Benefits.
2.1. General Eligibility. Except as otherwise provided in the Plan, a Senior Executive is entitled to Severance Payments and Severance Benefits under the Plan only if his or her employment with the Company is (i) involuntarily terminated by action of the Company without Cause or (ii) voluntarily terminated by action of the Senior Executive for Good Reason.
2.2. Exclusions. A Senior Executive is not eligible for Severance Payments or Severance Benefits if he or she:
(a)Voluntarily resigns before his or her Termination Date, except to the extent that the Senior Executive’s voluntary resignation is for Good Reason;
(b)Is terminated because of failure to return from an approved leave of absence;
(c)Ceases to be a Senior Executive as defined by the Plan;
(d)Terminates employment with the Company by reason of death;
(e)Receives consulting fees from the Company following his or her Termination Date; or
(f)Is entitled to long-term disability benefits from the Company-sponsored long-term disability plan as of the date the involuntary termination would have occurred had the individual been actively at work on such date.
In addition, if an individual has a written agreement with the Company that provides for severance, separation pay or separation benefits, the terms of such agreement will determine such individual’s severance rights and such individual shall not be eligible for Severance Payments or Severance Benefits (except to the extent such agreement specifically provides for participation in the Plan). For the avoidance of doubt, pursuant to his employment agreement with the Company dated June 9, 2011, as amended, the Company’s CEO is eligible to participate in the Plan but the severance protections relating to his equity awards will be governed by Sections 10(b) and 13(c) of such agreement (and the applicable grant agreements) and not by the terms of the Plan.
3.Amount and Form of Severance Payments and Severance Benefits.
3.1.     Payment Amount. An eligible Senior Executive is entitled to receive the following Severance Payments:
(a)Severance Payments upon Involuntary Termination without Cause or Voluntary Termination for Good Reason. In exchange for signing a General Release Agreement and not timely revoking it, an eligible Senior Executive who (i) is involuntarily terminated from the Company without Cause or voluntarily terminates employment from the Company for Good Reason and (ii) is not eligible for Severance Pay under Section 3.1(b) will be eligible to receive Severance Pay and Severance Benefits, subject to Section 3.3. An eligible Senior Executive will receive Severance Pay under this Section 3.1(a) in accordance with the following table:
	
		
	CEO
	104 weeks of Compensation

	Other Senior Executives
	78 weeks of Compensation

(b)Severance Payments upon Change in Control and Involuntary Termination without Cause or Voluntary Termination for Good Reason. In exchange for signing a General Release Agreement and not timely revoking it, an eligible Senior Executive who is involuntarily terminated from the Company without Cause or voluntarily terminates employment from the Company for Good Reason within eighteen (18) months immediately following a Change in Control will be eligible to receive Severance Pay and Severance Benefits, subject to Section 3.3. An eligible Senior Executive will receive Severance Pay under this Section 3.1(b) in accordance with the following table:
	
		
	CEO
	156 weeks of Compensation

	Other Senior Executives
	104 weeks of Compensation

3.2.     Severance Benefits.
(a) “COBRA” Continuation Coverage. A Senior Executive and his or her eligible dependents who are enrolled in a Company-sponsored medical, dental or vision plan on the Senior Executive’s Termination Date are eligible to continue coverage under these programs for up to eighteen (18) months (or such longer period as may be applicable) under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”). Generally, the Senior Executive is required to pay the full cost of this coverage, plus a two percent (2%) administrative fee.
If a Senior Executive and/or his or her eligible dependents timely elect(s) to receive medical continuation coverage through COBRA, the Company will provide a special subsidy at the coverage level in effect as of the Senior Executive’s Termination Date through the earlier of (i) the end of the Senior Executive’s severance payment period under Section 3.1(a) or 3.1(b) above, as applicable or (ii) eighteen (18) months from the Senior Executive’s Termination Date (the “Subsidized COBRA Period”). During the Subsidized COBRA Period, the Senior Executive will only be required to pay the same share of the applicable premium for medical coverage that would apply if the Senior Executive were participating in the medical plan as an active employee. After the Subsidized COBRA Period, the Senior Executive will be required to pay the full applicable COBRA premium for medical coverage to continue such coverage for the remainder of the COBRA period. The Company will not subsidize Company-sponsored dental and vision benefits continuation coverage under COBRA.

If the Senior Executive and/or the Senior Executive’s eligible dependents become eligible for coverage under another group health plan at any time between the Senior Executive’s Termination Date and the end of the Subsidized COBRA Period or are otherwise ineligible for COBRA, the Senior Executive shall promptly notify the Company and the Company shall no longer be obligated to provide subsidized medical coverage to the Senior Executive and/or the Senior Executive’s eligible dependents. All of the terms and conditions of the corresponding medical, dental and/or vision plans sponsored by the Company, as amended from time to time, will apply to a Senior Executive (and his or her eligible dependents) receiving COBRA continuation coverage. All periods of Company-subsidized coverage are counted toward the maximum continuation coverage period under COBRA.
(b) Retiree Medical Benefits. To the extent a Senior Executive is eligible for the Company’s retiree health benefits program, if such Senior Executive retires and becomes covered by the Company’s retiree health benefits program, the Company will pay the full cost for the retiree medical coverage for the same duration that it subsidizes the COBRA coverage under paragraph (a) above, reduced by the period during which the Senior Executive was receiving subsidized COBRA coverage.  To the extent the Senior Executive becomes covered by the Company’s retiree health benefits program, the Senior Executive will be eligible for the basic life insurance coverage of ten-thousand dollars ($10,000) provided under the Company’s retiree health benefits program.
(c)Outplacement Benefits. Eligible Senior Executives may be entitled to receive reasonable outplacement counseling and job search benefits. In no event will the Company provide such outplacement benefits to an eligible Senior Executive later than December 31 of the second year following his or her Termination Date.
(d)Equity Awards.
(i)If a Senior Executive (1) has been granted a Stock Appreciation Right or Restricted Stock Unit Award from the Company, (2) such Stock Appreciation Right or Restricted Stock Unit Award is subject to time-based vesting and (3) the Senior Executive’s Termination Date is at least twelve (12) months after the date of grant of such Stock Appreciation Right or Restricted Stock Unit Award, the Senior Executive will be deemed to continue his or her employment service for the duration of the Senior Executive’s severance payment period under Section 3.1(a) solely for determining vesting with respect to the Stock Appreciation Right or Restricted Stock Unit Award. The post-termination exercise period of any Stock Appreciation Rights that continue to vest in accordance with the preceding sentence shall run from the end of the severance payment period under Section 3.1(a) instead of from the Senior Executive’s Termination Date. If a Senior Executive (1) has been granted a Performance Award from the Company on or after January 1, 2018 and (2) the Senior Executive’s Termination Date is at least twelve (12) months after the date of grant of such Performance Award, the Senior Executive will be deemed to continue his or her employment service for the duration of the Senior Executive’s severance payment period under Section 3.1(a) solely for determining vesting with respect to the Performance Award, and such Performance Award shall be pro-rated based on (A) the number of days from the beginning of the Performance Period to the Senior Executive’s Termination Date, divided by (B) the number of total days in the Performance Period. Section 3.2(d)(i) does not apply if the Senior Executive is eligible for Severance Pay under Section 3.1(b).

(ii)If a Senior Executive (1) has been granted a Performance Award from the Company on or after January 1, 2017 and (2) becomes eligible for Severance Pay under Section 3.1(b), vesting of such Performance Award shall be accelerated in full to the Senior Executive’s Termination Date and the Senior Executive shall receive a payout of the Performance Award at 100% of the target award opportunity within 10 days following the 60th day after the Senior Executive’s Termination Date.
(iii)Any other equity awards previously granted to a Senior Executive will be governed solely by the applicable plan or the applicable award agreement.
(e)Prorated Annual Bonus. A Senior Executive will be entitled to a prorated annual bonus through the Termination Date for the fiscal year in which the Termination Date occurs, based on actual financial results and 100% for the individual component. Such bonus will paid no later than the 15th day of the third month following the later of (i) the last day of the Company’s fiscal year in which the Termination Date occurs; or (ii) the last day of the calendar year in which the Termination Date occurs.
(f)No Substitute Payments. A Senior Executive may not receive cash or any other benefit in lieu of the available Severance Benefits.
(g)Qualifying for Retirement and Duplication of Benefits.  If a Senior Executive qualifies for retirement under one of the Company’s benefit plans or programs, and the benefit provided under that benefit plan or program provides an equivalent or duplicative category of benefit as the benefit described in paragraphs (a), (b), (c), (d) or (e) in this Section 3.2, the Senior Executive will receive either (i) the benefit provided under that benefit plan or program or (ii) the benefit described in this Section 3.2, whichever of (i) or (ii) provides more generous payment or benefit amounts, terms or conditions.  In no event will a Senior Executive receive both a benefit provided under a benefit plan or program and the equivalent or duplicative category of benefit described in paragraphs (a), (b), (c), (d) or (e) of this Section 3.2; provided, however, that such prohibition shall not operate to accelerate or defer the payment of any deferred compensation subject to Code Section 409A. The terms of this Plan will not affect a Senior Executive’s eligibility for retirement under one of the Company’s other benefit plans or programs. 
3.3. Conditions and Limitations on Severance Payments and Severance Benefits.  Severance Pay and Severance Benefits a are specifically conditioned upon the Senior Executive signing and not later revoking a General Release Agreement at a time and in a manner to be determined by the Company. Under no circumstances will any Severance Pay or Severance Benefits be made to a Senior Executive who elects not to sign, or who revokes, a General Release Agreement. The consideration for the General Release Agreement will be the Severance Pay and Severance Benefits the eligible Senior Executive would not otherwise be eligible to receive.

3.4.     Form and Timing of Severance Payments and Severance Benefits.
(a)     Severance Payments under Section 3.1(a) will be paid in installments in accordance with the Company’s regular payroll payment schedule following the eligible Senior Executive’s Termination Date and Severance Payments under Section 3.1(b) will be paid in a lump sum as soon as practicable following the eligible Senior Executive’s Termination Date, subject to the timing requirements in Section 3.6; provided, however, that any Severance Pay and Severance Benefits which become available will commence only after the General Release Agreement has been signed, and the revocation period, if any, for the signed General Release Agreement has passed.
(b)    If the Company reemploys an eligible Senior Executive who is receiving Severance Pay or Severance Benefits under the Plan, the individual will become ineligible and such pay and benefits will cease effective as of the reemployment date.
(c)     If a Senior Executive dies before Severance Payments are completed, any remaining Severance Payments will be made to the Senior Executive’s estate in a lump-sum within sixty (60) days (or as soon as legally permitted) after the Senior Executive’s death.
(d)     The amounts payable pursuant to Section 3.1(a) will cease if the Senior Executive accepts other employment or a professional relationship with a competitor of the Company listed on Schedule B, or if the Senior Executive breaches any other restrictive covenant agreement he or she has signed with the Company, including any duty to protect confidential information and/or agreement not to solicit Company employees.
3.5.     Plant Shut-Down or Mass Layoff. If the Senior Executive is laid off or discharged because of a plant shut-down or mass layoff to which the federal, or any state, Worker Adjustment and Retraining Notice Act (“WARN”) applies, Severance Payments and Severance Benefits will not be available, except as provided in this Section 3.5. The Company shall provide notice of termination of employment (and may, at its discretion, place employees on paid administrative leave during some portion or all of the WARN notice period), or pay in lieu of notice, or a combination of notice and pay in lieu of notice in accordance with the provisions of WARN. The amount of severance payments to which the Senior Executive is entitled under the Plan shall be determined by subtracting the number of days’ pay in lieu of notice (or pay received while on administrative leave during a period for which WARN notice is given) he/she receives pursuant to WARN from the amount of severance payments to which he or she would be otherwise entitled under this Plan. The period of Company-subsidized medical and life insurance coverage under Section 3.2, however, shall not be reduced by the time during which the Senior Executive receives continued medical coverage or continued life-insurance coverage as part of the WARN notice period. Instead, the period of Company-subsidized medical and life-insurance coverage under Section 3.2 shall commence as of the date the WARN notice period expires.

3.6.     General Release Agreement. The General Release Agreement will be furnished to an eligible Senior Executive. It is completely within the eligible Senior Executive’s own discretion as to whether he or she elects to sign the General Release Agreement. An eligible Senior Executive is encouraged to review the General Release Agreement with his or her personal attorney at his or her own expense, if he or she so desires.
Time Frame for Signing. A Senior Executive less than age forty (40) on the date he/she receives the General Release Agreement, must sign, date and return it to the Plan Administrator within seven (7) calendar days of the date of receipt, unless a later date is expressly stated in the General Release Agreement. Minnesota residents, who are less than age forty (40) on the date of receipt, must sign and return the General Release Agreement within twenty-one (21) calendar days of the date of receipt, unless a later date is expressly stated in the General Release Agreement.
A Senior Executive age forty (40) or older on the date he/she receives the General Release Agreement, must sign and return it at any time within twenty-one (21) calendar days of the date of receipt (for an individual termination) or at any time within forty-five (45) calendar days of receipt (for a group termination), unless a later date is expressly stated in the General Release Agreement. In the event of a group termination, as determined in the sole discretion of the Company, the Company will furnish affected Senior Executives with such additional information as may be required by law.
Revocation Right. A Senior Executive who is less than age forty (40) and is not a Minnesota resident on the date of receipt, cannot revoke the General Release Agreement once he/she has signed it. A Senior Executive who is age forty (40) or over and not a Minnesota resident, may revoke his/her signed General Release Agreement in writing within seven (7) days after his/her signing the General Release Agreement. A Senior Executive who is a Minnesota resident on the date of receipt, may revoke his/her signed General Release Agreement in writing within fifteen (15) calendar days after it is signed and returned. Any such revocation shall be made in writing and shall be received by the Plan Administrator within the seven (7)-day or fifteen (15)-day periods as described.
Notwithstanding the foregoing, in all events the Senior Executive must execute the General Release Agreement, and any revocation period must have expired, not later than sixty (60) days after the Termination Date in order to receive Severance Pay and Severance Benefits. If such sixty (60)-day period ends in the calendar year following the year that includes the Termination Date, payment of any Severance Pay or Severance Benefits that are subject to Code Section 409A shall be paid or commence to be paid on the first normal payroll date of the calendar year following the year that includes the Termination Date or such later time required by the payment schedule applicable to the payment or benefit, the date the General Release Agreement becomes effective, or Section 3.8 below; provided that the first payment shall include all amounts that would have been paid to the Senior Executive if payment had commenced on the Termination Date, if applicable.
3.7. Withholding; Taxes. The Company will withhold from all Severance Payments and Severance Benefits all required federal, state, local and other taxes and any other payroll deductions required. In addition, the Company reserves the right to treat the COBRA subsidy described in Section 3.2(a) and any other benefit hereunder as taxable compensation to the Senior Executive (without a tax gross-up) or to restructure such benefit(s), in each case, to the extent necessary or advisable under applicable law.

3.8. Code Section 409A Compliance. For purposes of Code Section 409A, each “payment” (as defined by Code Section 409A) made under the Plan will be considered a “separate payment.” Each such payment will be deemed exempt from Code Section 409A to the full extent permissible under the “short-term deferral exemption” under Treasury Regulation Section 1.409A-1(b)(4) and, with respect to amounts that are not exempt under the short-term deferral exemption or any other exemption and are paid no later than the last day of the second taxable year following the taxable year containing the Senior Executive’s Termination Date, the “two years/two times” separation pay exemption under Treasury Regulation Section 1.409A-1(b)(9)(iii), which are hereby incorporated by reference. In the event that any Senior Executive is a “specified employee” as defined in Code Section 409A on the Senior Executive’s Termination Date, Severance Pay or Severance Benefits that are subject to Code Section 409A shall not be paid until the earlier of the first (1st) payroll date that occurs on or after the date that is six (6) months and one day following the Termination Date, or the date of the Senior Executive’s death, and all amounts that would otherwise have been paid prior to such date shall be paid as soon as practicable after such date in a lump sum without interest. The Plan is intended to comply in all respects with Code Section 409A, and to the maximum extent permitted by law shall be so construed. Notwithstanding the foregoing, in no event shall the Company have liability to a Senior Executive for any penalty or other adverse tax consequences resulting from Code Section 409A or otherwise.
3.9. Limitation on Payments.
(a)     Notwithstanding anything in this Plan to the contrary, if any payment or benefit a Senior Executive would receive from the Company under this Plan or otherwise (“Payment”) would (i) constitute a “parachute payment” within the meaning of Code Section 280G; and (ii) but for this sentence, be subject to the excise tax imposed by Code Section 4999 (the “Excise Tax”), then such Payment shall be equal to the Best After-Tax Amount.  The “Best After-Tax Amount” shall be either (x) the largest portion of the Payment that would result in no portion of the Payment being subject to the Excise Tax; or (y) the largest portion, up to and including the total, of the Payment; whichever amount under clauses (x) or (y), after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest marginal rate), results in the Senior Executive’s receipt, on an after-tax basis, of the greater amount of the Payment.  Any reduction made pursuant to this Section 3.9(a) shall be made in accordance with the following order of priority in a manner consistent with Code Section 409A: (1) first from cash compensation in the reverse order such compensation would otherwise be paid, (2) next from equity compensation, then (3) pro-rata among all remaining payments and benefits.  In no event shall the Senior Executive have any discretion with respect to the ordering of payment reductions.
(b)     Any determination required under this Section 3.9 will be made in writing by an independent firm selected by the Company and the Senior Executive (the “Firm”), whose determination will be conclusive and binding upon the Senior Executive and the Company for all purposes.  For purposes of making the calculations required by this Section 3.9, the Firm may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Code Sections 280G and 4999.  The Company and the Senior Executive will furnish to the Firm such information and documents as the Firm may reasonably request in order to make a determination under this Section 3.9.  The Company will bear all costs and charges of the Firm in connection with any calculations contemplated by this Section 3.9.

4.Administration. 
The Company is the “Plan Administrator” of the Plan and the “named fiduciary” within the meaning of such terms as defined in ERISA. The Company has the discretionary authority to determine eligibility for Plan benefits and to construe the terms of the Plan, including the making of factual determinations. Severance Pay and Severance Benefits under the Plan will be payable only if the Company determines in its sole discretion that the Senior Executive is entitled to them. The decisions of the Company will be final and conclusive with respect to all questions concerning the administration of the Plan. The Company may delegate to other persons responsibilities for performing certain of its duties under the Plan and may seek such expert advice as it deems reasonably necessary with respect to the Plan. The Company may rely upon the information and advice furnished by such delegatees and experts, unless actually knowing such information and advice to be inaccurate or unlawful.
5.Amendment or Termination.
Senior Executives do not have any vested rights to Severance Payments or Severance Benefits. The Company reserves the right, in its sole and unlimited discretion, to amend or terminate the Plan at any time by action of the Human Resources Committee of the Board, or the Board in the case of Severance Pay and Severance Benefits for the CEO, without prior notice to any Senior Executive.
6.Claims Procedure.
(a)Any person who believes he or she is entitled to any payment under the Plan (“Applicant”) may submit a claim in writing to the Company. Any such claim should be sent to the Health & Welfare Plans Administrative Committee (the “Committee”), c/o Levi Strauss & Co., P.O. Box 7215, San Francisco, CA 94120, Attention: Vice President, Compensation, Benefits & HR Services. If a claim is denied in whole or in part, the Committee will furnish the Applicant within ninety (90) days after receipt of such claim with a written notice, written in a manner calculated to be understood by the Applicant, which includes (i) the specific reason(s) for the denial, (ii) specific references to the Plan provisions on which the denial is based, (iii) a description of any additional material or information necessary for properly completing the claim and an explanation why such material or information is necessary, (iv) a statement that the Applicant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records or other information relevant to his or her claim, and (v) an explanation of the Plan’s appeal procedures. The ninety (90)-day period for responding to a claim may be extended by up to an additional ninety (90) days if the Applicant is given a written notice of the extension, including an explanation of the reason for the extension and an estimate of when the claim will be resolved, by the end of the initial ninety (90)-day period.

(b)An Applicant may appeal the denial of his or her claim and have the Committee reconsider the decision. The Applicant or the Applicant’s authorized representative has the right to: (i) request an appeal by written notice to the Committee at the address identified above no later than sixty (60) days after the receipt of the notice from the Committee denying the Applicant’s claim, (ii) upon request and free of charge, review or receive copies of any documents, records or other information relevant to the Applicant’s claim, and (iii) submit written comments, documents, records and other information relating to the Applicant’s claim in writing to the Committee. In deciding the Applicant’s appeal, the Committee will take into account all comments, documents, records and other information submitted by the Applicant relating to the claim, regardless of whether such information was submitted or considered in the initial review of the claim. If the Applicant does not provide all the necessary information for the Committee to process the appeal, the Committee may request additional information and set deadlines for the Applicant to provide that information.
(c)The Committee’s decision on review will be in writing, written in a manner calculated to be understood by the Applicant, and will include (i) specific reason(s) for the decision, (ii) specific references to the Plan provisions on which the decision is based, (iii) a statement that the Applicant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records or other information relevant to his or her claim, and (iv) a statement of the Applicant’s right to bring a civil action under ERISA Section 502(a) following a denial of his or her appeal for benefits. The notice will be delivered to the Applicant within sixty (60) days after the request for review is received, unless extraordinary circumstances require a longer period, in which event the sixty (60)-day period may be extended by up to an additional sixty (60) days if the Applicant is given a written notice of the extension, including an explanation of the reason for the extension and an estimate of when the appeal will be resolved, by the end of the initial sixty (60)-day period.
(d)The provisions of this Section 6 are intended to comply with ERISA Section 503 and the Regulations issued thereunder, and will be so construed. In accordance with such Regulations, each Applicant will be entitled, upon written request and without charge, to review and receive copies of all material relevant to his or her claim within the meaning of Department of Labor Regulation Section 2560.503-1(m)(8), and to be represented by a qualified representative.
(e)In further consideration of being permitted to participate in the Plan, each eligible Senior Executive agrees on behalf of himself or herself, and all other persons claiming through him or her, that he or she will not commence any action at law or equity (including without limitation any action under ERISA Section 502), or any proceeding before any administrative agency, for payment of any benefit under this Plan without first filing a written claim for such benefit and appealing the denial of that claim in accordance with the provisions of this Section 6, and in any event not more than one-hundred eighty (180) days after the appeal is denied in accordance with paragraph (c) above.

7.Source of Payments.
All Severance Payments and Severance Benefits will be paid in cash from the general funds of the Company; no separate fund will be established under the Plan and the Plan will have no assets. Any right of any person to receive any payment under the Plan will be no greater than the right of any other unsecured creditor of the Company.
8.Inalienability. 
In no event may any Senior Executive sell, transfer, anticipate, assign or otherwise dispose of any right or interest under the Plan. At no time will any such right or interest be subject to the claims of creditors nor liable to attachment, execution or other legal process.
9.Recovery of Payments Made by Mistake.
An eligible Senior Executive must return to the Company any Severance Payment or Severance Benefit, or portion thereof, made by a mistake of fact or law. The Company has all remedies available at law or in equity for the recovery of such amounts.
10.No Enlargement of Employment Rights.
Neither the establishment or maintenance of the Plan, the payment of any amount by the Company nor any action of the Company will confer upon any individual any right to be continued as an Employee nor any right or interest in the Plan other than as provided in the Plan. Other than an Employee who has a written agreement to the contrary signed by the CEO or a Senior Vice President of the Company, every Employee is an employee-at-will whose employment with the Company may be terminated by the Company or the Employee at any time with or without cause and with no notice.
11.Applicable Law.
The provisions of the Plan will be construed, administered and enforced in accordance with ERISA and, to the extent applicable, the laws of the State in which the Senior Executive resides on his or her Termination Date.
12.Severability. 
If any provision of the Plan is held invalid or unenforceable, its invalidity or unenforceability will not affect any other provision of the Plan, and the Plan will be construed and enforced as if such provision had not been included.
13.Execution. 
IN WITNESS WHEREOF, the Board of Directors of Levi Strauss & Co. has approved the Plan on the date indicated below.

LEVI STRAUSS & CO.

______________________________________________    
Stephen C. Neal
Chairman of the Board of Directors of Levi Strauss & Co.

Dated:      _______________________________________hzo-ex101_199.htm

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” HAVE BEEN OMITTED FROM THIS EXHIBIT AS THESE PORTIONS ARE NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM IF PUBLICLY DISCLOSED.  

 

 

Exhibit 10.1

 

SECOND AMENDMENT TO FOURTH AMENDED AND RESTATED
INVENTORY FINANCING AGREEMENT, FIFTH AMENDED AND RESTATED

PROGRAM TERMS LETTER, AND FOURTH AMENDED AND RESTATED

[****]

 

THIS SECOND AMENDMENT TO FOURTH AMENDED AND RESTATED INVENTORY FINANCING AGREEMENT, FIFTH AMENDED AND RESTATED PROGRAM TERMS LETTER, AND FOURTH AMENDED AND RESTATED [****] (this “Amendment”) dated as of November 8, 2019, is made to that certain FOURTH AMENDED AND RESTATED INVENTORY FINANCING AGREEMENT (as amended, supplemented, restated or modified, the “IFA”) by and among WELLS FARGO COMMERCIAL DISTRIBUTION FINANCE, LLC (“CDF”) as Agent (in such capacity as agent, the “Agent”) for the several financial institutions that may from time to time become party thereto (collectively, “Lenders,” and individually, each a “Lender”) and Dealers that may from time to time become party thereto (collectively, “Dealers” and individually, each a “Dealer”) and for itself as a Lender, and such Lenders, FIFTH AMENDED AND RESTATED  PROGRAM TERMS LETTER (as amended, restated, supplemented or otherwise modified from time to time, the “PTL”) by and among CDF and Dealers, and FOURTH AMENDED AND RESTATED [****] (as amended, restated, supplemented or otherwise modified from time to time, the “[****],” and together with the IFA and PTL, the “Agreements”) by and among Agent and Existing Dealers (as defined below), each dated as of October 26, 2018. All capitalized terms not otherwise defined in this Amendment shall have the respective meanings assigned to them in the IFA.

Recitals

A.Agent, Lenders and Dealers desire to make certain amendments to the Agreements in accordance with the terms and conditions of this Amendment. 

Agreement

NOW, THEREFORE, in consideration of the premises and of the mutual promises contained herein and in the Agreement the receipt and sufficiency of which is hereby acknowledged, Agent and Dealers agree as follows:

1.IFA Amendments: 

 

a.The defined term “Maximum Aggregate Credit Amount” in Section 1 of the IFA is hereby deleted in its entirety and replaced with the following: 

“Maximum Aggregate Credit Amount” means an aggregate total of four hundred forty million dollars ($440,000,000.00).

b.The defined term “Settlement Date” in Section 1 of the IFA is hereby amended to replace the term “Settlement Date” with the term “Reporting Date” and each reference to Settlement Date in the IFA is hereby deemed to be a reference to Reporting Date.

 

c.The following clause (xi) is added to Section 2(a) of the IFA:

1

 

“(xi)Agent may, in its Permitted Discretion, adjust any advance rates for any Vendor that is not an Approved Vendor, provided that, with respect to a Vendor that was previously an Approved Vendor and is no longer an Approved Vendor (including, for the avoidance of doubt, Azimut-Benetti S.p.A., but excluding the Benetti brand), if (A) Dealers’ Tangible Net Worth is greater than two hundred fifty million dollars ($250,000,000.00) and (B) Dealers’ Liquidity exceeds twenty five million dollars ($25,000,000.00) (clauses (A) and (B), collectively, the “Advance Adjustment Criteria”), such adjustment shall not decrease any such advance rate by more than ten percentage points.  “Liquidity” shall be defined as (Y) Dealers’ unrestricted cash plus (Z) the lesser of (1) the Pre-Owned Inventory Sublimit (as defined below) or (2) (a) the Specific Pre-Owned Sublimit (as defined below) less the total amount of Loans outstanding with respect to pre-owned inventory with applicable valuations of seven hundred fifty thousand dollars ($750,000.00) or more plus (b) borrowing base availability (as calculated on the most recent borrowing base certificate delivered to Agent pursuant to the terms of the Program Terms Letter).

d.Section 2(b) of the IFA is hereby deleted in its entirety and replaced with the following: 

“(b)Pre-Owned Inventory Advances and Sublimits.  Subject to the overall Maximum Aggregate Credit Amount set forth above and the terms and conditions of this Agreement, on and after the Closing Date, Lenders severally and not jointly may make Loans to Dealers with respect to pre-owned units of inventory; provided that such cash advances shall not exceed the Pre-Owned Inventory Sublimit and must comply with the pre-owned inventory advance terms set forth herein.  Regardless of the amount of credit available to Dealers under the Maximum Aggregate Credit Amount hereunder, the total amount of Loans outstanding with respect to used or pre-owned inventory shall not exceed forty-five million dollars ($45,000,000.00) (the “Pre-Owned Inventory Sublimit”).  Within such Pre-Owned Inventory Sublimit, (i) any Loans with respect to units with applicable valuations of seven hundred fifty thousand dollars ($750,000.00) or more shall require unit specific documentation (including an advance request form), (ii) no more than thirty-five million dollars ($35,000,000.00) of such Pre-Owned Inventory Sublimit shall be used by Dealers to finance pre-owned inventory with applicable valuations of less than seven hundred fifty thousand dollars ($750,000.00) (the “Other Pre-Owned Sublimit”), and (iii) no more than twenty million dollars ($20,000,000.00) of such Pre-Owned Inventory Sublimit shall be used by Dealers to finance pre-owned inventory with applicable valuations of seven hundred fifty thousand dollars ($750,000.00) or more (the “Specific Pre-Owned Sublimit”).”

e.Section 2(c) of the IFA is hereby deleted in its entirety and replaced with the following: 

“(c)Advance Rates; Approvals.  The advance rates with respect to pre-owned inventory as well as additional details of the financing program are set forth in the Program Terms Letter, the terms of which are incorporated herein by this reference. Upon thirty (30) days’ notice to Dealers, Agent may adjust the advance rates set forth in the Program Terms Letter (i) for Approved Vendors as provided in Section 2(a)(x) and (ii) for all other Vendors as provided in Section 2(a)(xi).  This Agreement concerns the extension of credit, and not the provision of goods or services.  An “Approval” shall be defined as Agent’s indication to a Vendor that the Lenders will provide financing to Dealers with respect to a particular Invoice or Invoices.”

2

 

f.Section 3(a) of the IFA is hereby amended by adding the following to the end of such section:

“Notwithstanding anything to the contrary contained herein, including without limitation the provisions of Section 17 hereof, without the consent of Lenders, CDF may change any aspect or portion of any Transaction Statement at any time, provided that such change is not inconsistent with the terms and conditions of this Agreement.”

g.Section 6(b)(viii) of the IFA is hereby deleted in its entirety and replaced with the following: 

 

“(viii)upon Agent’s request, (i) at any time the aggregate Obligations with respect to any Collateral or Dealer located in Ohio exceeds twelve million dollars ($12,000,000.00), deliver to Agent immediately upon such request (and Agent may retain) each certificate of title or statement of origin issued for such Collateral and (ii) at any time during the continuance of a Default, deliver to Agent immediately upon such request (and Agent may retain) each certificate of title or statement of origin issued for Collateral financed by any one or more Lenders;”

 

h.Section 6(d)(iv) of the IFA is hereby deleted in its entirety and replaced with the following:

 

“(iv)change the nature of its business in any material manner or its legal structure or be a party to a merger or consolidation (other than a merger or consolidation of a Dealer with or into another Dealer), divide itself pursuant to Section 18-217 of the Delaware Limited Liability Company Act or any similar law or statute or change its type of organization, its jurisdiction of incorporation or organization, or its organizational identification number, if any, or acquire any Person (an “Acquired Person”) or a substantial portion of the assets of any Person (“Acquired Assets”), except that Dealers may acquire an Acquired Person or Acquired Assets, if (A) Dealers provide Agent with thirty (30) days’ prior written notice of such acquisition, accompanied by a certificate of Dealers’ chief financial officer that such acquisition complies with the conditions of this Section 6(d)(iv) and copies of pro forma financial statements and projections giving effect to such acquisition, (B) immediately after any such acquisition of an Acquired Person, such Acquired Person becomes a party to this Agreement as a Dealer by executing and delivering to Agent such documents and agreements as Agent may reasonably require, at Dealers’ cost and expense, (C) immediately after any such acquisition of Acquired Assets, Agent shall continue to have, on behalf of Lenders a first-priority perfected security interest in such Acquired Assets that constitute “Collateral” (as defined herein) and the other Collateral, (D) at the time of such acquisition and after giving effect thereto, neither a Default nor an event which, with the giving of notice, the passage of time, or both, would result in a Default, shall have occurred and be continuing, (E) before and after giving effect to such acquisition, as illustrated by the pro forma financial statements and projections provided to Agent pursuant to clause (A) above, Dealers shall be in compliance with the financial covenants set forth in Section 6(c) as of the most recently ended fiscal quarter and the next four fiscal quarters ending after such acquisition, (F) the 

3

 

total acquisition cost of such Acquired Person or Acquired Assets (including, without limitation, acquired inventory) shall not exceed ten million dollars ($10,000,000) individually or twenty-five million dollars ($25,000,000) in the aggregate in any rolling twelve-month period for all such Acquired Persons and Acquired Assets, collectively; provided, however, if such acquisition does not comply with this clause (F), then Agent shall not unreasonably withhold its consent to such acquisition, and (G) at the time of such acquisition, Availability shall be at least five million dollars ($5,000,000) and the sum of Dealers’ cash, plus the balance of the [****] (as defined in the [****] Agreement), plus Availability shall be at least fifteen million dollars ($15,000,000); provided, however, that notwithstanding anything in this Section to the contrary, MarineMax Vacations, Ltd. shall not be required to become a party to this Agreement as a Dealer;”

 

i.Section 8(d) of the IFA is hereby deleted in its entirety and replaced with the following: 

“(d) within thirty (30) days after Dealers’ year-end, Dealers’ financial projections for the next fiscal year on a consolidated basis;”

j.Section 8(g) of the IFA is hereby deleted in its entirety and replaced with the following:

“(g) concurrently with the delivery of the financial statements required to be delivered under clauses (a) and (b), above, a trigger compliance and advance adjustment criteria certificate in the form attached hereto as Exhibit G (the “Trigger Compliance and Advance Adjustment Criteria Certificate”), setting forth a calculation of Fixed Charge Coverage Ratio and  TTM EBITDA (each as defined in the Program Terms Letter), Tangible Net Worth and the Advance Adjustment Criteria, executed by an officer of Dealers.”

k.The following clause (d) is hereby added to Section 17 of the IFA:

“(d)Notwithstanding the foregoing, Agent, with the consent of the Dealers, may amend, modify or supplement any Loan Document without the consent of any Lender or the Required Lenders in order to correct, amend or cure any inconsistency or defect or correct any typographical error or other manifest error in any Loan Document, and such amendment, modification or supplement shall become effective without any further action or consent of any other party to any Loan Document if the same is not objected to in writing by the Required Lenders within five Business Days following receipt of notice thereof.  Furthermore, notwithstanding anything to the contrary herein, with the consent of Agent at the request of the Dealers (without the need to obtain any consent of any Lender), any Loan Document may be amended to add terms that are favorable to the Lenders (as reasonably determined by Agent).”

l.Section 19 of the IFA is hereby deleted in its entirety and replaced with the following:

 

“19.Term and Termination.  Unless sooner terminated as provided in this Agreement, the term of this Agreement shall commence on the date hereof and 

4

 

continue until October 30, 2022 and, if Agent provides written notice to Dealers of Agent’s intent to renew the current term at least (ninety) 90 days prior to the end of the then current term, at Agent’s election, subject to Section 17(a)(ii) above, the term of this Agreement shall automatically renew for up to two successive one year periods thereafter.  Upon termination of this Agreement, all Obligations shall become immediately due and payable without notice or demand.  Upon any termination, Dealers shall remain fully and jointly and severally liable to each Lender for all Obligations owed to such Lender, including without limitation all fees, expenses and charges, arising prior to or after termination, and each Lender’s rights and remedies and security interest, if any, shall continue until all Obligations to such Lender hereunder are paid and all obligations of Dealers are performed in full.  All waivers and indemnifications in Agent’s and each Lender’s favor, and the agreement to arbitrate, set forth in this Agreement will survive any termination of this Agreement.”

 

m.Exhibits A, C, E and G of the IFA are hereby deleted in their entirety and replaced with Exhibits A, C, E and G attached hereto. 

 

 

2.PTL Amendments:

 

a.The second paragraph under the section entitled “Advance Request” is hereby deleted in its entirety and replaced with the following:

 

5

 

	
	
	
“In addition, each advance with respect to any advance request for Aquila brand inventory, Ocean Alexander brand inventory, Galeon brand inventory or Benetti brand inventory shall be requested as follows and accompanied by the following documentation for each item of such inventory:

 

(a)Each advance request for Aquila brand inventory, Galeon brand inventory or Benetti brand inventory shall be requested within fifteen (15) Business Days of clearing United States Customs

(b)Each advance request for Ocean Alexander brand inventory shall be requested within the earlier of:  

(i) fifteen (15) Business Days following payment in full to Alexander Marine Company, Ltd, or

(ii) delivery of the inventory to Dealer

(c)A copy of the original invoice from: 

(i)  Sino Eagle Yacht Co., Ltd. for Aquila brand inventory

(ii) Alexander Marine Company, Ltd. for Ocean Alexander brand inventory 

(iii) Galeon, LLP for  Galeon brand inventory

(iv) Azimut-Benetti S.p.A for Benetti brand inventory

(d)Either a Manufacturer’s Statement of Origin (MSO) or Builder’s  Certificate

(e)Evidence that each such item of inventory has cleared United States Customs

(f)Evidence that MarineMax has paid:

(i) Sino Eagle Yacht Co., Ltd. in full for each such item of Aquila brand inventory, 

(ii) Alexander Marine Company, Ltd. in full for each such item of Ocean Alexander brand inventory 

(iii) Galeon, LLP.  in full for each such item of Galeon brand inventory

(iv) Azimut-Benetti S.p.A in full for each such item of  Benetti brand inventory”

b.The first paragraph under the section entitled “Floorplan Advance Rate” is hereby deleted in its entirety and replaced with the following:

“For new inventory (excluding Azimut brand new inventory (for the avoidance of doubt, when used herein, the term “Azimut brand new inventory” and “Azimut brand inventory” shall not include Benetti brand inventory), Benetti brand new inventory, Aquila brand new inventory, Ocean Alexander brand new inventory, and Galeon brand new inventory), 100% of invoice amount, including freight (if included on original invoice), subject to Availability.”

c.The following paragraph is added to the section entitled “Floorplan Advance Rate” of the PTL:

“For Benetti brand new inventory: 60% of invoice amount for all inventory subject to a maximum of [****] in the aggregate advanced at any one time, and further subject to Availability.  Notwithstanding the foregoing, with respect to that certain 125 ft. Benetti unit (the “Benetti Unit”) to be financed by Lenders, the following conditions shall apply:  (a) the maximum amount Lenders shall fund with respect to such Benetti Unit shall be 50% of the invoice amount of such Benetti Unit and (b) prior to any such funding, Agent shall have received evidence in form and substance acceptable to Agent that Dealer owns such Benetti Unit free and clear of all Liens, including any Liens of the Azimut-Benetti S.p.A.”

d.Clause (i)(b)(2) of the definition of “Availability” in the section entitled “Floorplan Advance Rate” of the PTL is hereby deleted in its entirety and replaced with the following:

 

“(2) if the Fixed Charge Coverage ratio is less than 1.2x or TTM EBITDA is less than [****], in each case as shown on the most recent Trigger Compliance Certificate delivered pursuant to Section 8(g) of the Inventory Financing Agreement, 100% of Total Eligible Inventory shown on the most recent inventory certificate, less the lesser of (x) [****] and (y) 10% of Total Eligible Inventory shown on such inventory certificate (such lesser amount, the “Collateral Block”) ((b)(1) or (2), as applicable, the “Net Eligible Inventory Amount”),”

 

e.The first two paragraphs under the section entitled “Concentration Limits” are hereby deleted in their entirety and replaced with the following:

“If the number of units of inventory (new and pre-owned) financed by any one or more Lenders which are not Pre-Sold and which have an Outstanding Amount > $250,000.00 exceeds [****] of total number of units of inventory financed by such Lender or Lenders, then immediate payment shall be required and applied to the oldest units of such inventory financed by such Lender or Lenders to the extent 

6

 

required to reduce the number of such units to [****] or less.  “Outstanding Amount” means the outstanding amount financed by any one or more Lenders for such unit, minus any portion of the Required Amount (as defined in the [****]) funded to the [****] with respect to curtailments for such unit.  For purposes of determining the concentration limits, units of inventory financed by any one or more Lenders shall include, without limitation, each unit of pre-owned inventory with a valuation < $750,000.00 identified on the current borrowing base certificate.  

If the units of inventory (new and pre-owned) financed by any one or more Lenders which are not Pre-Sold and which have an Outstanding Amount > $750,000.00 exceed [****] in the aggregate (of which no more [****] in the aggregate may be Azimut brand and no more than [****] in the aggregate may be Benetti brand), then immediate payment shall be required and applied to the oldest units of such inventory financed by such Lender or Lenders to the extent required to reduce the Outstanding Amount to [****] or less for such inventory (and [****] or less for Azimut brand inventory and [****] or less for Benetti brand inventory).  In no event shall any one or more Lenders finance more than the greater of [****] units or [****] of such inventory that exceeds 72 ft., and which are not Pre-Sold.”

f.Exhibits A, B and C of the PTL are hereby deleted in their entirety and replaced with Exhibits A, B and C attached hereto. 

 

3.[****] Amendments: 

 

a.[****]

 

	
 
	
4.
	
Release. In consideration of the agreements of Agent contained in this Amendment and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, each Dealer (collectively, the “Releasors”), on behalf of itself and its successors, assigns, and other legal representatives, hereby absolutely, unconditionally and irrevocably releases, remises and forever discharges Agent and each Lender, each of their successors and assigns, each of their respective affiliates, and their respective affiliates’ present and former shareholders, members, subsidiaries, divisions, predecessors, directors, officers, attorneys, employees, agents and other representatives (Agent, Lenders and all such other Persons being hereinafter referred to collectively as the “Releasees,” and individually as a “Releasee”), of and from all demands, actions, causes of action, suits, covenants, contracts, controversies, agreements, promises, sums of money, accounts, bills, reckonings, damages and any and all other claims, counterclaims, defenses, rights of set-off, demands and liabilities whatsoever (individually a “Claim” and collectively, “Claims”) of every name and nature, either known or unknown, both at law and in equity, which Releasors, or any of them, or any of their successors, assigns or other legal representatives may now or hereafter own, hold, have or claim to have against the Releasees or any of them for, upon, or by reason of any circumstance, action, cause or thing whatsoever which arises at any time on or prior to the date hereof, including, without limitation, for or on the account of, or in relation to, or in any way in connection with the IFA, the other Agreements, any other Loan Document or any of other agreement, document, or instrument related thereto or transactions thereunder or related thereto.

 

	
 
	
5.
	
References. Each reference in the Agreements and the Loan Documents to the Agreements shall be deemed to refer to the Agreements as amended by this Amendment.

7

 

 

	
 
	
6.
	
Ratification.  Dealers hereby ratify and confirm the Agreements, as amended hereby, and each other Loan Document executed by such Dealer in all respects. All terms and provisions of the Agreements not specifically amended by this Amendment shall remain unchanged and in full force and effect.

 

	
 
	
7.
	
Conditions Precedent to Effectiveness of Amendment.  This Amendment shall not be effective unless and until each of the following conditions precedent has been satisfied or waived in the sole and absolute discretion of Agent:

 

	
 
	
a.
	
Agent shall have received this Amendment, duly executed by each of the parties hereto.

 

	
 
	
b.
	
Agent shall have reimbursed Agent for all of its costs and expenses incurred in connection with this Amendment and all documents related hereto in accordance with the provisions of Section 15 of the IFA.

 

	
 
	
c.
	
Agent shall have received an opinion of counsel from counsel to Dealers (other than Fraser Yachts California, Inc. (“Fraser Yachts”)) in form and substance acceptable to Agent. 

 

	
 
	
d.
	
Agent shall have received a certificate of each Dealer (other than Fraser Yachts) certifying as to (A) all corporate actions taken and consents made by Dealers to authorize the transactions provided for or contemplated under this Amendment and the execution, delivery and performance of the Loan Documents to which they are a party; (B) the names of the officers or employees of each Dealer authorized to sign the Loan Documents to which they are a party, together with a sample of the true signature of each such Person (Agent may conclusively rely on such certificates until formally advised by a like certificate of any changes therein) and (C) the Certificate or Articles of Organization or Formation and Operating Agreement or Bylaws  of each Dealer as restated or amended to the date of this Amendment and (D) certificates of good standing for each Dealer in the jurisdiction of its establishment.

 

	
 
	
8.
	
Post-Closing Covenant.  Within ninety (90) days of the date hereof, Agent shall have received: (A) an opinion of counsel from counsel to Fraser Yachts, (B) a ratification agreement executed by Fraser Yachts, and (C) a certificate certifying as to the items set forth in Section 7(d)(A) – (D), above, in each case in form and substance acceptable to Agent.  Breach of this covenant shall constitute a Default as defined under the IFA.

 

	
 
	
9.
	
Assignment. This Amendment shall be binding upon, inure to the benefit of and be enforceable by the parties hereto and their participants, successors and assigns.

 

	
 
	
10.
	
Counterparts. This Amendment may be executed in any number of counterparts, each of which counterparts, once they are executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the same agreement.  This Amendment may be executed by any party to this Amendment by original signature, facsimile and/or electronic signature. 

[Signature pages follow]

 

8

 

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

DEALERS:

 

			
	
MARINEMAX, INC.,

a Florida corporation
	
 

	
 
	
 

	
By:
	
/s/ Michael H. McLamb
	
 

	
Print Name:
	
Michael H. McLamb
	
 

	
Title:
	
Executive Vice President, Chief Financial Officer, Secretary,
	
 

	
 

 

MARINEMAX EAST, INC.,

a Delaware corporation
	
 

	
 
	
 

	
By:
	
/s/ Michael H. McLamb
	
 

	
Print Name:
	
Michael H. McLamb
	
 

	
Title:
	
President, Secretary, Treasurer 
	
 

	
 

 

MARINEMAX SERVICES, INC.,

a Delaware corporation
	
 

	
 
	
 

	
By:
	
/s/ Michael H. McLamb
	
 

	
Print Name:
	
Michael H. McLamb
	
 

	
Title:
	
Vice President, Secretary, Treasurer 
	
 

 

 

			
	

MARINEMAX NORTHEAST, LLC,

a Delaware limited liability company

By: MARINEMAX EAST, INC.

      the sole member of MarineMax Northeast, LLC
	
 

	
 
	
 

	
By:
	
/s/ Michael H. McLamb
	
 

	
Print Name:
	
Michael H. McLamb
	
 

	
Title:
	
President, Secretary, Treasurer 
	
 

 

[Signature Page to Second Amendment to IFA, PTL, and [****]]

 

			
			
	
BOATING GEAR CENTER, LLC

a Delaware limited liability company

 

By: MARINEMAX EAST, INC.,

      the sole member of Boating Gear Center, LLC
	
 

	
 
	
 

	
By:
	
/s/ Michael H. McLamb
	
 

	
Print Name:
	
Michael H. McLamb
	
 

	
Title:
	
President, Secretary, Treasurer 
	
 

 

 

			
	
US LIQUIDATORS, LLC
	
 

	
a Delaware limited liability company

By: MARINEMAX, INC.

      the sole member of US Liquidators, LLC

 
	
 

	
By:
	
/s/ Michael H. McLamb
	
 

	
Print Name:
	
Michael H. McLamb
	
 

	
Title:
	
Executive Vice President, Chief Financial Officer, Secretary, 
	
 

 

 

MY WEB SERVICES, LLC,

a Delaware limited liability company

 

			
	
By: MARINEMAX EAST, INC., 

       the sole member of My Web Services, LLC
	
 

	
 
	
 

	
By:
	
/s/ Michael H. McLamb
	
 

	
Print Name:
	
Michael H. McLamb
	
 

	
Title:
	
President, Secretary and Treasurer, 
	
 

 

 

MARINEMAX CHARTER SERVICES, LLC,

a Delaware limited liability company

			
	
By: MARINEMAX EAST, INC., 

       the sole member of MarineMax Charter Services, 

       LLC
	
 

	
 
	
 

	
By:
	
/s/ Michael H. McLamb
	
 

	
Print Name:
	
Michael H. McLamb
	
 

	
Title:
	
President, Secretary, Treasurer 
	
 

 

[Signature Page to Second Amendment to IFA, PTL, and [****]]

 

			
			
	
 
	
 

	
NEWCOAST FINANCIAL SERVICES, LLC,
	
 

	
a Delaware limited liability company

By: MARINEMAX EAST, INC.

      the sole member of Newcoast Financial Services, LLC

 
	
 

	
By:
	
/s/ Michael H. McLamb
	
 

	
Print Name:
	
Michael H. McLamb
	
 

	
Title:
	
President, Secretary, Treasurer 
	
 

 

 

[****], 

a Florida limited liability company 

 

By: MY WEB SERVICES, LLC,

       the sole member of [****]

			
	
       By: MARINEMAX EAST, INC., 

       the sole member of My Web Services, LLC
	
 

	
 
	
 

	
By:
	
/s/ Michael H. McLamb
	
 

	
Print Name:
	
Michael H. McLamb
	
 

	
Title:
	
President, Secretary and Treasurer 
	
 

	
Tax ID:
	
27-4689836
	
 

	
Org. ID (if any):   4933499
	
 

 

 

GULFPORT MARINA, LLC,

a Delaware limited liability company

			
	
By: MARINEMAX EAST, INC., 

       the sole member of Gulfport Marina, LLC
	
 

	
 
	
 

	
By:
	
/s/ Michael H. McLamb
	
 

	
Print Name:
	
Michael H. McLamb
	
 

	
Title:
	
President, Secretary and Treasurer 
	
 

	
Tax ID:
	
27-4689836
	
 

	
Org. ID (if any):   4933499
	
 

 

 

 

 

 

[Signature Page to Second Amendment to IFA, PTL, and [****]]

 

 

		
	
FWW, LLC,

	
a Florida limited liability company

By: MARINEMAX EAST, INC.

      the sole member of FWW, LLC

 

	
By:
	
/s/ Michael H. McLamb

	
Print Name:
	
Michael H. McLamb

	
Title:
	
President, Secretary, Treasurer 

 

 

		
	
FRASER YACHTS FLORIDA, INC.,

	
a Florida corporation

 

	
By:
	
/s/ Jeanne Bruss

	
Print Name:
	
Jeanne Bruss

	
Title:
	
Secretary

 

 

		
	
FRASER YACHTS CALIFORNIA, INC.,

	
a California corporation

 

 

	
By:
	
/s/ Jeanne Bruss

	
Print Name:
	
Jeanne Bruss

	
Title:
	
Secretary

 

 

 

 

[Signature Page to Second Amendment to IFA, PTL, and [****]]

 

 

 

AGENT AND LENDER:

 

		
	
 

WELLS FARGO COMMERCIAL DISTRIBUTION FINANCE, LLC

	
 

 

	
By:
	
/s/ Thomas M. Adamski

	
Print Name:
	
Thomas M. Adamski

	
Title:
	
Duly Authorized Signatory 

 

 

LENDERS:

 

		
	
 

BANK OF THE WEST, INC.

	
 

 

	
By:
	
/s/ Tim McKevitt     

	
Print Name:
	
Tim McKevitt

	
Title:
	
VP – Relationship Manager

	
 

 

M&T BANK

	
 

 

	
By:
	
/s/ Brendan Kelly 

	
Print Name:
	
Brendan Kelly

	
Title:
	
VP

 

		
	
 

	
BRANCH BANKING AND TRUST COMPANY

 

	
By:
	
/s/ David Miller

	
Print Name:
	
David Miller

	
Title:
	
VP

 

[Signature Page to Secondt Amendment to IFA, PTL, and [****]]

 

Exhibit A to IFA

Existing Approved Vendors

 

		
	
 
	
 

	
Vendor
	
Brand

	
BRUNSWICK CORPORATION
	
BAYLINER
BOSTON WHALER
HARRIS FLOTEBOTE
MERCURY
SEA RAY

	
CREST MARINE LLC
	
CREST

	
GRADY-WHITE BOATS, INC.
	
GRADY-WHITE

	
MASTERCRAFT BOAT COMPANY, LLC
	
AVIARA
MASTERCRAFT

	
NAUTIC STAR, LLC
	
NAUTICSTAR

	
NAUTIQUE BOAT COMPANY, INC.
	
SKI NAUTIQUE

	
PONTOON BOAT, LLC
	
BENNINGTON

	
REC BOAT HOLDINGS, LLC
	
SCARAB

	
SEMINOLE MARINE, INC.
	
SAILFISH

	
SCOUT BOATS, INC.
	
SCOUT

	
SPORTSMAN BOATS MANUFACTURING, INC.
	
SPORTSMAN

	
TIGE BOATS, INC.
	
TIGE

	
WELLCRAFT, LLC
	
WELLCRAFT

	
 
	
 

	
Trailer Vendors
	
 

	
EZ LOADER CUSTOM BOAT TRAILERS, INC.
EZ LOADER BOAT TRAILERS, INC.
	
EZ LOADER

	
MAGIC TILT TRAILERS, INC.
	
MAGIC TILT

	
MCCLAIN TRAILERS, INC.
	
MCCLAIN

	
VENTURE TRAILERS, INC.
	
VENTURE

 

 

 

 

Exhibit C to IFA

Permitted Locations

 

							
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Location Name
	
Lot Code
	
Address Line 1
	
City
	
State
	
Zip Code
	
Phone Numbers

	
MarineMax Gulf Shores Parkway
	
OB
	
3829 Gulf Shores Parkway
	
Gulf Shores
	
AL
	
36542
	
251-981-1113

	
MarineMax Norwalk
	
CT1
	
130 Water Street
	
Norwalk
	
CT
	
06854
	
888-254-1796

	
MarineMax Connecticut
	
CT2
	
627 Boston Post Road
	
Westbrook
	
CT
	
06498
	
860-399-5581

	
MarineMax Brevard (Cocoa)
	
BVD
	
1410 King Street
	
Cocoa
	
FL
	
32922
	
321-636-3142

	
MarineMax Sarasota Retail Sales
	
CIT
	
1601 Ken Thompson Parkway
	
Sarasota
	
FL
	
34236
	
941-388-4411

	
MarineMax Clearwater
	
CW
	
18025 US 19 North
	
Clearwater
	
FL
	
33764
	
727-536-2628

	
MarineMax Jacksonville Beach
	
FL3
	
2079 Beach Boulevard
	
Jacksonville Beach
	
FL
	
32250
	
904-338-9970

	
MarineMax Panama City
	
FL7
	
3605 Thomas Drive
	
Panama City Beach
	
FL
	
32408
	
850-234-6533

	
MarineMax Ft Myers
	
FT
	
14070 McGregor Boulevard
	
Fort Myers
	
FL
	
33919
	
239-481-8200

	
MarineMax Ft Myers
	
FT
	
14030 McGregor Boulevard
	
Fort Myers
	
FL
	
33919
	
239-454-2628

	
MarineMax Ft Lauderdale
	
HAT
	
2301 SE 17th Street, Pier 66 Marina
	
Fort Lauderdale
	
FL
	
33316
	
954-779-1905

	
MarineMax Pensacola
	
KM
	
1901 Cypress Street
	
Pensacola
	
FL
	
32502
	
850-477-1112

	
MarineMax Miami
	
MIA
	
700 NE 79th Street
	
Miami
	
FL
	
33138
	
305-758-5786

	
MarineMax - Miami Service
	
MIA
	
840 NE 78th Street
	
Miami
	
FL
	
33138
	
305-758-5786

	
Corporate Headquarters
	
MM
	
2600 McCormick Drive, Suite 200
	
Clearwater
	
FL
	
33759
	
727-531-1700

	
MarineMax St Petersburg Yacht and Service Center
	
MYSC
	
6810 Gulfport Boulevard
	
South Pasadena
	
FL
	
33707
	
727-343-6520

	
MarineMax Dania Beach
	
MYSD
	
490 Taylor Lane
	
Dania Beach
	
Fl
	
33004
	
954-926-0309

	
MarineMax Naples Retail Sales
	
NAP
	
1146 6th Avenue South
	
Naples
	
FL
	
34102
	
239-262-1000

	
MarineMax Palm Beach
	
NPB
	
2385 PGA Boulevard
	
Palm Beach Gardens
	
FL
	
33410
	
561-694-5815

	
MarineMax of Orlando
	
OLN
	
455 S Lake Destiny Road
	
Orlando
	
FL
	
32810
	
407-660-2628

	
MarineMax Ocean Reef
	
ORC
	
2 Fishing Village Drive
	
Key Largo
	
FL
	
33037
	
305-367-3969

	
MarineMax Cape Haze (Palm Island)
	
PMI
	
7090 Placida Road
	
Cape Haze
	
FL
	
33946
	
941-697-2161

	
MarineMax Pompano Beach Retail Sales
	
POM
	
700 South Federal Highway
	
Pompano Beach
	
FL
	
33062
	
954-783-9555

	
MarineMax Pompano Yacht Center
	
PYC
	
750 South Federal Highway
	
Pompano Beach
	
FL
	
33062
	
954-618-0440

	
MarineMax Stuart Sales and Service
	
STU
	
2370 SW Palm City Road
	
Stuart
	
FL
	
34994
	
772-287-4495

 

 

							
	
MarineMax Venice Retail Sales
	
VEN
	
1485 S Tamiami Trail
	
Venice
	
FL
	
34285
	
941-485-3388

	
MarineMax Cumming
	
SM2
	
1860 Bald Ridge Marine Road
	
Cumming
	
GA
	
30041
	
770-781-9370

	
MarineMax Danvers
	
NE2
	
10 Hutchinson Drive
	
Danvers
	
MA
	
01923
	
781-395-0050

	
MarineMax Baltimore Yacht Sales and Service Center
	
MD4
	
1800 S Clinton Street
	
Baltimore
	
MD
	
21224
	
410-732-1260

	
MarineMax Bayport
	
CMB
	
200 Fifth Avenue South
	
Bayport
	
MN
	
55003
	
651-351-9621

	
MarineMax Rogers
	
CMR
	
20300 County Road 81, PO Box 250
	
Rogers
	
MN
	
55374
	
763-428-4126

	
MarineMax Excelsior
	
CMZ
	
141 Minnetonka Boulevard
	
Excelsior
	
MN
	
55331
	
952-346-4857

	
MarineMax Lake Ozark
	
LOZ
	
3070 Bagnell Dam Boulevard
	
Lake Ozark
	
MO
	
65049
	
573-365-5382

	
MarineMax Osage Beach
	
MCP
	
4543 Osage Beach Parkway
	
Osage Beach
	
MO
	
65065
	
573-348-1299

	
MarineMax Southport Marina
	
NC6
	
606 West Street, Suite 107
	
Southport
	
NC
	
28461
	
201-515-4122

	
MarineMax Wrightsville Beach
	
SB
	
130 Short Street
	
Wrightsville Beach
	
NC
	
28480
	
910-256-8100

	
MarineMax Brick
	
BNJ
	
1500 Riverside Drive
	
Brick
	
NJ
	
08724
	
732-840-2100

	
MarineMax Lake Hopatcong
	
HOP
	
134 Espanong Road
	
Lake Hopatcong
	
NJ
	
07849
	
973-663-2045

	
MarineMax Brant Beach Service
	
MBB
	
20 W 44th Street
	
Brant Beach
	
NJ
	
08008
	
609-494-2838

	
MarineMax Ship Bottom
	
MLB
	
214 W 9th Street
	
Ship Bottom
	
NJ
	
08008
	
609-494-2102

	
MarineMax Mays Landing Service
	
MML
	
1201 Somers Point, Route 559
	
Egg Harbor
	
NJ
	
08234
	
609-625-1099

	
MarineMax Somers Point
	
MSP
	
600 Bay Avenue
	
Somers Point
	
NJ
	
08244
	
609-926-0600

	
MarineMax Huntington
	
NY5
	
155 West Shore Road
	
Huntington
	
NY
	
11743
	
631-424-2710

	
MarineMax Manhattan
	
NY6
	
Chelsea Piers, Pier 59, 23rd Street and the Hudson River
	
New York
	
NY
	
10011
	
212-336-7873

	
MarineMax Catawba Island
	
TCM
	
1991 NE Catawba Road
	
Port Clinton
	
OH
	
43452
	
419-797-4492

	
MarineMax Wakefield
	
NE3
	
362 Pond Street
	
Wakefield
	
RI
	
2879
	
781-875-3619

	
MarineMax Newport
	
RI1
	
10 Bowen's Wharf
	
Newport
	
RI
	
2840
	
401-849-2243

	
MarineMax Lewisville/Dallas
	
DAL
	
1490 N Stemmons Freeway
	
Lewisville
	
TX
	
75067
	
972-436-9979

	
MarineMax Lewisville Yachts and Service
	
LLV
	
1481 E Hill Park Road
	
Lewisville
	
TX
	
75056
	
972-436-9979

	
MarineMax Lake Texoma
	
LTX
	
120 Texoma Harbor Drive
	
Pottsboro
	
TX
	
75076
	
972-436-9979

	
MarineMax Seabrook
	
NAS
	
3001 NASA Parkway
	
Seabrook
	
TX
	
77586
	
281-326-4224

	
MarineMax Lake Wylie
	
HM2
	
310 Blucher Circle
	
Lake Wylie
	
SC
	
29710
	
803-831-2101

	
MarineMax Thunderbolt
	
HM7
	
3518 Old Tybee Road
	
Thunderbolt
	
GA
	
31410
	
912-897-9881

 

 

							
	
MarineMax Thunderbolt
	
HM7
	
188 Old Tybee Road
	
Thunderbolt
	
GA
	
31410
	
912-897-9881

	
MarineMax Cornelius
	
HM1
	
9209 Westmoreland Road
	
Cornelius
	
NC
	
28031
	
704-892-9676

	
MarineMax Greenville
	
HM3
	
14 Burty Road
	
Greenville
	
SC
	
29605
	
864-236-9005

	
MarineMax Charleston
	
HM5
	
142 Sportsman's Island Drive
	
Charleston
	
SC
	
29492
	
843-747-1889

	
MarineMax Island Marine Center
	
IM1
	
2602 Shore Rd (Rte 9)
	
Ocean View
	
NJ
	
08230
	
609-624-1117

	
MarineMax Boston
	
NE1
	
64 Washington St
	
Quincy
	
MA
	
02169
	
617-288-1000

	
MarineMax Miami Beach Marina
	
MIB
	
300 Alton Rd
	
Miami Beach
	
FL
	
33139
	
305-921-0002

	
Catawba Isand Club
	
TCM
	
4235 East Beachclub Rd
	
Port Clinton
	
OH
	
43452
	
419-797-4492

	
MarineMax North Somers Point
	
IM1
	
7 Kapella Ave
	
Somers Point
	
NJ
	
08244
	
609-926-0600

	
MarineMax Grand Lake
	
GLC
	
28251 S 561 Road
	
Monkey Island
	
OK
	
74331
	
918-782-3277

	
MarineMax Grand Lake
	
GLC
	
56300 E 280 Rd
	
Monkey Island
	
OK
	
74331
	
918-782-3277

	
MarineMax Fort Walton Beach
	
FWB
	
6-22 Miracle Strip Pkwy
	
Fort Walton Beach
	
FL
	
32548
	
850-760-0300

	
MarineMax Sail and Ski Center
	
SSA
	
12971 Research Blvd
	
Austin
	
TX
	
78750
	
512-258-0733

	
MarineMax Sail and Ski Center
	
SAN
	
141 Balcones North
	
San Antonio
	
TX
	
78201
	
210-734-8199

	
 
	
 
	
16406 Stewart Rd
	
Austin
	
TX
	
78734
	
 

	
 
	
 
	
5400 Hudson Bend Rd
	
Austin
	
TX
	
78734
	
 

	
 
	
 
	
15911 Edwards Dr
	
Austin
	
TX
	
78734
	
 

	
MarineMax Sail and Ski Center
	
LBJ
	
15616 Stewart Rd
	
Lakeway
	
TX
	
78734
	
512-266-1515

 

 

 

 

 

EXHIBIT E to IFA

Lender’s Allocations and Ratable Share

			
	
Lender
	
Allocation
	
Ratable Share

	
CDF
	
$240,000,000
	
54.545454545%

	
Bank of the West, Inc.
	
$50,000,000
	
11.363636364%

	
M&T Bank
	
$115,000,000
	
26.136363636%

	
Branch Banking & Trust Company
	
$35,000,000
	
7.954545455%

	
TOTAL
	
$440,000,000
	
100.000000000%

 

 

 

EXHIBIT G to IFA

Trigger Compliance and Advance Adjustment Criteria Certificate

 

					
	
 
	
 
	
 
	
 
	
 

	
 Calculations Based on period ended: 
	
MM/DD/YY
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 PYTD 
	
 FYE 
	
 CYTD 
	
 TTM 

	
 ($000s) 
	
MM/DD/YY
	
MM/DD/YY
	
MM/DD/YY
	
MM/DD/YY

	
 net income 
	
 
	
 
	
 
	
                    -   

	
 add back: taxes 
	
 
	
 
	
 
	
                    -   

	
 add back: interest 
	
 
	
 
	
 
	
                    -   

	
 add back: depreciation / amortization 
	
 
	
 
	
 
	
                    -   

	
 add back: one-time acquisition costs 
	
 
	
 
	
 
	
                    -   

	
 add back: non-cash stock-based compensation 
	
 
	
 
	
 
	
                    -   

	
 less: non-recurring gains / non-cash items / tax credits 
	
 
	
 
	
 
	
                    -   

	
 EBITDA 
	
 
	
 
	
 
	
                    -   

	
 less: Capital Expenditures 
	
 
	
 
	
 
	
                    -   

	
 EBITDA less Capital Expenditures 
	
 
	
 
	
 
	
                    -   

	
 
	
 
	
 
	
 
	
 

	
 cash interest 
	
 
	
 
	
 
	
                    -   

	
 scheduled principal payments 
	
 
	
 
	
 
	
 

	
 cash income taxes 
	
 
	
 
	
 
	
                    -   

	
 dividends / distributions 
	
 
	
 
	
 
	
                    -   

	
 Fixed Charges 
	
 
	
 
	
 
	
                    -   

	
 
	
 
	
 
	
 
	
 

	
 FCCR 
	
 
	
 
	
 
	
#DIV/0!

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 a) Consolidated Shareholders Equity of the Borrowers 
	
 
	
 
	
 
	
                    -   

	
 Less: GAAP Intangibles 
	
 
	
 
	
 
	
 

	
 i) Goodwill 
	
 
	
 
	
 
	
                    -   

	
 ii) Patents 
	
 
	
 
	
 
	
                    -   

	
 iii) Trademarks 
	
 
	
 
	
 
	
                    -   

	
 iv) Other Intangibles 
	
 
	
 
	
 
	
                    -   

	
 b) Total Intangibles (I + ii + iii + iv) 
	
 
	
 
	
 
	
                    -   

	
 c) Related accounts receivable and loans excluding allowed draws 
	
 
	
 
	
 
	
                    -   

	
 d) Tangible Net Worth (a - b - c) 
	
 
	
 
	
 
	
                    -   

	
 
	
 
	
 
	
 
	
 

	
 Net Income (cumulative, after 6/30/18) 
	
 
	
 
	
 
	
                    -   

 

 

					
	
 multiply by 75% 
	
 
	
 
	
 
	
                    -   

	
 plus: $200MM 
	
 
	
 
	
 
	
        200,000 

	
 Required TNW (greater of $200MM or 75% of cumulative NI + $200MM) 
	
 
	
 
	
 
	
        200,000 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 Specific Pre-Owned Sublimit 
	
 
	
 
	
 
	
           20,000 

	
 less: Outstanding pre-owned inventory with valuations >= $750M 
	
 
	
 
	
 
	
                    -   

	
 Excess Available on Specific Pre-Owned Sublimit 
	
 
	
 
	
 
	
           20,000 

	
 plus: Borrowing Base Availability 
	
 
	
 
	
 
	
                    -   

	
 Pre-owned Availability (lesser of i) $45MM or ii) Excess Available on Specific PO Sublimit + Borrowing Base Availability) 
	
 
	
 
	
 
	
           20,000 

	
 plus: Unrestricted cash 
	
 
	
 
	
 
	
 

	
 Liquidity 
	
 
	
 
	
 
	
           20,000 

	
 
	
 
	
 
	
 
	
 

	
 Collateral Block Triggers 
	
 
	
 
	
 
	
 Compliant? 

	
 EBITDA [****]
	
 
	
 
	
 
	
 NO 

	
 FCCR [****] 
	
 
	
 
	
 
	
#DIV/0!

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
advance adjustment trigger (re: Approved Vendors) 
	
 
	
 
	
 
	
 Compliant? 

	
 TNW [****] 
	
 
	
 
	
 
	
 NO 

	
 
	
 
	
 
	
 
	
 

	
 Advance Adjustment Criteria 
	
 
	
 
	
 
	
 Compliant? 

	
 TNW [****]
	
 
	
 
	
 
	
 NO 

	
 Liquidity [****]
	
 
	
 
	
 
	
 NO 

	
 
	
 
	
 
	
 
	
 

	
 MarineMax, Inc. 
	
 
	
 
	
 
	
 

	
 By:     ___________________________________
	
 
	
 
	
 
	
 

	
 Title:  ___________________________________
	
 
	
 
	
 
	
 

 

 

Exhibit A to PTL

Advance Request Form

 

Wells Fargo Commercial Distribution Finance, LLC

10 S. Wacker Dr., 20th Floor

Chicago, IL 60606

 

	
Re:
	
Fourth Amended and Restated Inventory Financing Agreement, dated October 26, 2018, among MarineMax, Inc. (“Dealer Agent”), the other Dealers party thereto (collectively, together with Dealer Agent, “Dealers”) Wells Fargo Commercial Distribution Finance, LLC (in its individual capacity, “CDF”) as Agent (CDF, in such capacity as agent, is herein referred to as “Agent”) for the several financial institutions that are parties thereto or that may from time to time become party to thereto  (collectively, the “Lenders” and individually each a “Lender”) and for itself as a Lender, and such Lenders, as amended, modified, restated or replaced from time to time (the “Agreement”)

Ladies and Gentlemen:

The undersigned is agent for Dealers under the Agreement and as such is authorized to make and deliver this advance request (this “Request”) on behalf of Dealers pursuant to Section 1 of the Agreement.  All capitalized terms used, but not defined, herein have the meanings provided in the Agreement.

Dealers hereby request that Lenders make an advance on ________________, 20____ of $______________________ to Dealers under the terms of the Agreement with respect to the following (check one):

	
 
	
__________
	
pre-owned inventory units with applicable valuations of seven hundred fifty thousand dollars ($750,000.00) or more (“Specific Pre-Owned Items”), subject to the Pre-Owned Inventory Sublimit and Availability (as defined in the Agreement).

	
 
	
__________
	
pre-owned inventory units with applicable valuations of less than seven hundred fifty thousand dollars ($750,000.00) (“Other Pre-Owned Items”), subject to the Pre-Owned Inventory Sublimit and Availability.

	
 
	
__________
	
units of inventory (excluding used or pre-owned inventory) for which Dealers have previously made payments to Agent on behalf of Lenders (“Re-Advance Items”), subject to the Re-Advance Sublimit and Availability.

The undersigned hereby represents, warrants and certifies that, as of the date hereof,

	

	
(a)each representation and warranty made to Agent and Lenders by or on behalf of any Dealer is true and correct as of the date hereof, except to the extent that such representation or warranty expressly relates to an earlier date, in which event such representation or warranty was true and correct as of such earlier date; 

 

 

	

	
(b)neither a Default nor any event which with the giving of notice, the passage of time or both would result in a Default has occurred and is continuing or would reasonably be expected to result after giving effect to the advance requested hereby [except _______ ______________________]; 

	

	
(c)after giving effect to the advance requested hereby, the aggregate outstanding amount of the Obligations (i) will not exceed the lesser of (I) the Maximum Aggregate Credit Amount minus the outstanding amount of Approvals and (II) the Net Eligible Inventory Amount minus the amount of any Reserves, (ii) with respect to pre-owned inventory will not exceed the Pre-Owned Inventory Sublimit, (iii) with respect to Specific Pre-Owned Items will not exceed the Specific Pre-Owned Sublimit, (iv) with respect to Other Pre-Owned Items will not exceed the Other Pre-Owned Sublimit, and (v) with respect to Re-Advance Items, will not exceed the Re-Advance Sublimit;

	

	
(d)if this Request relates to Specific Pre-Owned Items, Exhibit A hereto sets forth, for each Specific Pre-Owned Item, (i) the Dealer who owns such item, (ii) the location of such item, (iii) the year, make and model, serial number, engine model, horsepower and serial for such item, (iv) the NADA low wholesale value and the advance amount requested therefor, and (v) copies of the reports and documents listed on Exhibit A as “Required Documents”;

	

	
(e)if this Request relates to Other Pre-Owned Items, Exhibit B hereto sets forth (i) the date of the most recent borrowing base certificate and the borrowing base amount shown thereon, (ii) borrowing base availability as of the date hereof, and (ii) borrowing base availability after the advance request hereby;

	

	
(f)if this Request relates to Re-Advance Items, Exhibit C hereto sets forth (i) the specific Re-Advance Items supporting such advance, identified by manufacturer, original invoice number, and original invoice date and (ii) the original invoice amount, outstanding amount of Obligations with respect to such Re-Advance Item, and the re-advance amount requested therefor;

(g)each Specific Pre-Owned Item, Other Pre-Owned Item and Re-Advance Item, as applicable, is owned by the Dealer identified on the Exhibits attached hereto, free and clear of all Liens, and Agent holds a first and prior Lien on such Collateral as collateral agent for the Lenders pursuant to the Agreement, and such Collateral is in good saleable condition (normal wear and tear excepted); and

(h)The terms and conditions of the Agreement apply to this Request.

Executed this ____ day of _______________, _____.

MarineMax, Inc.,

a Florida corporation

 

By:

Its:

Typed Name:

 

 

 

 

Exhibit A to Advance Request Form

Specific Pre-Owned Items 

 

RE:  USED       TRADE-IN           (CIRCLE ONE)

 

AGENT FOR DEALERS     MARINE MAX                           DEALER NUMBER____________

 

UNIT LOCATION  ___________________________________________________________________________

 

YEAR  ________MAKE/MODEL__________________________________________________

 

BOAT SERIAL NUMBER______________________________________________________________________

 

ENGINE MODEL, HORSEPOWER & SERIAL

 

                                              

NADA (ABOS or BUC) LOW WHOLESALE VALUE FOR BOAT & ENGINE $____________VALUE X        % 

 

$_____________

 

DOLLAR AMOUNT OF USED/TRADE REQUEST TO BE ADVANCED $____________________

 

REQUIRED DOCUMENTS:                                                                                                              

*Attach copy of customer contract for trade-in units/bill of sale and proof of payment for used units. 

*Attach copy of completed Title Documents(front and rear) evidencing the boat is free and clear of all liens.

*Attach copy of survey/internal condition report

*Attach copy of internal valuation report

*Attach copy of Coast Guard documentation, abstract of title, and bill of sale

 

Specific Pre-Owned Sublimit$20,000,000 (1)

 

Outstanding Amount with Respect to Specific

Pre-Owned Items____________________(2)

 

Amount of Advance Requested

[not > $2,500,000.00]____________________(3)

 

Outstanding Amount with Respect to Specific Pre-Owned

After Requested Advance

[(2) + (3)]____________________(4)

 

 

 

 

Specific Pre-Owned Sublimit Availability After

Requested Advance

[(1) – (4)]____________________(5)

 

Pre-Owned Inventory Sublimit$45,000,000(6)

 

Outstanding Amount with Respect to Other Pre-Owned

Items ____________________(7)

 

Outstanding Amount with Respect to Specific Pre-Owned

Items and Other Pre-Owned Items After Requested Advance

[(5) + (7)]____________________(8)

 

Pre-Owned Inventory Sublimit Availability After

Requested Advance

[(6) – (8)]____________________(9)

 

 

 

 

 

 

Exhibit B to Advance Request Form

Other Pre-Owned Items

 

Borrowing Base Certificate Date   ____________________

 

Borrowing Base Amount____________________(1)

 

Other Pre-Owned Sublimit$35,000,000 (2)

 

Other Pre-Owned Line of Credit

[Lesser of (1) or (2)]____________________(3) 

 

Outstanding Amount with Respect to Other Pre-Owned____________________(4)

 

Borrowing Base Availability (Payment Required)

[(3) - (4)]____________________(5)

 

Amount of Advance Requested____________________(6)

 

Outstanding Amount with Respect to Other Pre-Owned

After Requested Advance

[(4) + (6)]____________________(7)

 

Percentage of Borrowing Base Amount

[(7) / (1)] (must be ≤ 80% if certificate date not request

date and ≤ 100% if certificate date is request date) ____________________%(8)

 

Borrowing Base Availability After Requested Advance

[(1) – (7)]____________________(9)

 

Pre-Owned Inventory Sublimit$45,000,000(10)

 

Outstanding Amount with Respect to Specific Pre-Owned

Items ____________________(11)

 

Outstanding Amount with Respect to Specific Pre-Owned

Items and Other Pre-Owned Items After Requested Advance

[(7) + (11)]____________________(12)

 

Pre-Owned Inventory Sublimit Availability

[(10) – (12)]____________________(13)

 

 

 

 

 

Exhibit C to Advance Request Form

Re-Advance Items

 

DEALER NAME ______________________________________   DEALER NUMBER____________

 

UNIT LOCATION  __________________________________________________________________

 

MANUFACTURER _________________________________________________________________

BOAT SERIAL NUMBER ____________________________________________________________

 

BOAT MODEL& SERIAL_________________

 

ORIGINAL INVOICE NUMBER______________________________

 

ORIGINAL INVOICE DATE______________________________

 

ORIGINAL INVOICE AMOUNT______________________________

 

OUTSTANDING AMOUNT WITH

RESPECT TO RE-ADVANCE ITEM______________________________

 

RE-ADVANCE AMOUNT REQUESTED______________________________

 

 

 

Re-Advance Sublimit____________________ (1)

 

Re-Advance Amounts within prior 30 Days____________________(2)

 

Amount of Advance Requested____________________(3)

 

Re-Advance Amounts within prior 30 Days After

Requested Advance

[(2) + (3)]____________________(4)

 

Re-Advance Sublimit Availability After Requested

Advance

[(1) – (4)]____________________(5)

 

 

 

 

Exhibit B to PTL

Borrowing Base Certificate Form

 

 

								
	
 
	
Wells Fargo Commercial Distribution Finance LLC
	
	
 
	
Pre-Owned Inventory Borrowing Base Certificate
	
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
Agent for Dealers:
	
MarineMax, Inc.
	
 
	
Collateral Report Date:
	
 

	
 
	
Maximum Credit Amount:
	
$              440,000,000.00 
	
 
	
Certificate Date:
	
 

	
 
	
 
	
 
	
 
	
Certificate Number:
	
2

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
Pre-owned Inventory with valuations < $750,000.00
	
 
	
 
	
 

	
 
	
Age of Collateral
	
Collateral Total
	
 
	
Advance Rate
	
Borrowing Base

	
 
	
0 - 180 days
	
 $                                     -   
	
 
	
75%
	
$                             -   

	
 
	
181 - 360 days
	
 $                                          -   
	
 
	
67%
	
$                             -   

	
 
	
361+ days
	
 $                                          -   
	
 
	
0%
	
$                             -   

	
 
	
Total
	
 $                                          -   
	
 
	
 
	
$                             -   

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
Gross Borrowing Base
	
 $                            -   

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
Pre-owned Inventory Reserve (%)
	
0%

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
Pre-owned Inventory Reserve ($)
	
$                             -   

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
Net Eligible Collateral
	
$                             -   

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
Other Pre-owned Sublimit
	
$ 35,000,000.00 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
Pre-owned Inventory Line of Credit for valuations < $750,000.00
	
 $                             -   
	
	
 
	
 
	
 
	
 
	
 
	
 

 

 

 

								
	
 
	
 
	
 
	
 
	
Pre-owned Obligations Outstanding
	
 $                             -   

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
Borrowing Base Availability (Payment Required)
	
 $                              -   
	
	
 
	
 
	
 
	
 
	
 

 
	
 

	
 

 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

 

	
	
This Monthly Inventory Certificate and supporting documentation (collectively, this "Certificate") is delivered in accordance with that certain Fourth Amended and Restated Inventory Financing Agreement (the "Agreement"; capitalized terms used herein and not otherwise defined shall have the same definition as set forth in the Agreement), dated October 26, 2018,  between Wells Fargo Commercial Distribution Finance LLC (f/k/a GE Commercial Distribution Finance LLC, as Agent and Lender ("Agent"), the other Lenders party thereto from time to time (along with Agent, the “Lenders”), MarineMax, Inc. (“MarineMax”) and the other Dealers party thereto (collectively, the "Dealers"), as from time to time amended. By executing this Certificate, MarineMax, individually and on behalf of the other Dealers, (a) represents and warrants to Agent and the Lenders that the information contained in this Certificate is true and correct in all material respects and that no Default has occurred, including, but not limited to, violation of any of the financial covenants contained in the Agreement, and (b) hereby ratifies, confirms and affirms all of the terms, conditions and provisions of the Agreement.

 

						
	
Agent:
	
MarineMax, Inc.
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
Signature:
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
Date:
	
 
	
 
	
 
	
 
	
 

 

 

 

 

 

 

			
			
	
 
	
Exhibit C to PTL

Monthly Inventory Certificate Form

 

 

[****]

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