EXHIBIT 10.74
CONSENT AND WAIVER
UNDER LOAN AND SECURITY AGREEMENT
This CONSENT UNDER LOAN AND SECURITY AGREEMENT (this "Agreement") is
entered into and effective as of March 7, 2002, by and among Xxxxxx Boats &
Motors, Inc. ("TRVS"), Xxxxxx Boating Center Georgia, Inc., Xxxxxx Boating
Center Florida, Inc., Adventure Marine & Outdoors, Inc., Adventure Marine South,
Inc., Adventure Boat Brokerage, Inc., TBC Management, Inc., TBC Management, Ltd.
(hereinafter individually referred to as a "Borrower" and collectively, as the
"Borrowers") and Transamerica Commercial Finance Corporation ("Transamerica").
Recitals:
A. Borrowers and Lender are party to that certain Loan and Security
Agreement, dated as of January 28, 2000 (as amended from time to time,
the "Loan Agreement").
B. Lender and Borrower have agreed to the provisions set forth herein on
the terms and conditions contained herein.
Agreement
Therefore, in consideration of the mutual agreements herein and other
sufficient consideration, the receipt of which is hereby acknowledged, Borrower
and the Lender hereby agree as follows:
1. Definitions. All references to the "Agreement" or the "Loan Agreement" in the
Loan Agreement and in this Agreement shall be deemed to be references to the
Loan Agreement as it may be amended, restated, extended, renewed, replaced, or
otherwise modified from time to time. Capitalized terms used and not otherwise
defined herein have the meanings given them in the Loan Agreement.
2. Effectiveness of Agreement. This Agreement shall become effective as of March
7, 2002, but only if this Agreement has been executed by Borrower and the
Lender.
3. Consent to Transaction.
3.1. Notwithstanding the terms of the Loan Agreement, Lender hereby
consents, subject to the conditions contained herein, to:
(A) the execution and performance by TRVS of the Preferred Stock and Warrant
Purchase Agreement by and between TRVS and TMRC, L.L.P. a Missouri limited
partnership ("Tracker"), substantially in the form provided by counsel for TRVS
on Xxxxx 0, 0000 (xxx "Xxxxx Xxxxxxxx Xxxxxxxxx"),
(X) the adoption by TRVS of the Statement of Designations of 6% Series A
Cumulative Convertible Preferred Stock substantially in the form provided by
counsel for TRVS on March 5, 2002 (the "Statement of Designation"),
(C) the issuance by TRVS to Tracker of shares of 6% Series A Cumulative
Convertible Preferred Stock of Xxxxxx Boats & Motors, Inc., substantially as set
forth in the Stock Purchase Agreement provided by counsel for TRVS on Xxxxx 0,
0000,
(X) the issuance by TRVS to Tracker of the Warrant to Purchase Series A
Preferred of Xxxxxx Boats & Motors, Inc., substantially in the form provided by
counsel for TRVS on March 5, 2002 (the "Warrant"), and
(E) upon Tracker's exercise of the Warrant and its related payment of $3,000,000
in cash, TRVS' prepaying in full on approximately June 10, 2002 of all
outstanding principal plus accrued interest on TRVS' Convertible Subordinated
Promissory Note with Brunswick Corporation, a Delaware corporation, dated
December 14, 2001.
3.2. The foregoing consent is conditioned upon:
(A) TRVS on or before March 31, 2002, selling approximately 21,390 shares of its
6% Series A Cumulative Convertible Preferred Stock ("Series A Stock") to
Tracker, for a cash purchase price of approximately $2,139,000 pursuant to the
Stock Purchase Agreement and in accordance with the Statement of Designation,
and in accordance with any other documents or agreements required by the terms
thereof to be executed in connection therewith, and
(B) Deutsche Financial Services Corporation ("DFS") providing its written
consent under its loan documents with the Borrower to the matters set forth
above in Section 3.1.
(C) Tracker Marine, L.L.C. issuing its firm, binding and irrevocable commitment
letter pursuant to Section 2.1(b)(iii) of the Stock Purchase Agreement.
If any of the foregoing conditions are not satisfied (as determined by Lender in
its commercially reasonable discretion), the foregoing consents will be
automatically revoked.
4. Representations and Warranties of Borrower. Each Borrower hereby represents
and warrants to Lender that (i) such Borrower's execution of this Agreement has
been duly authorized by all requisite action of such Borrower, (ii) no consents
are necessary from any third parties for such Borrower's execution, delivery or
performance of this Agreement, (iii) this Agreement, the Loan Agreement, and
each of the other Documents, constitute the legal, valid and binding obligations
of Borrower enforceable against Borrower in accordance with their terms, except
to the extent that the enforceability thereof against Borrower may be limited by
bankruptcy, insolvency or other laws affecting the enforceability of creditors
rights generally or by equity principles of general application, and (iv) after
giving effect to this Agreement, there is no Default that has occurred and is
continuing which has not been waived in writing by Lender.
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5. Reaffirmation. Each Borrower hereby acknowledges and confirms that (i) the
Loan Agreement and the other Documents remain in full force and effect, (ii)
such Borrower has no defenses to its obligations under the Loan Agreement and
the other Documents, (iii) the Liens of the Lender granted under the Loan
Agreement secure all the Obligations, and continue in full force and effect, and
have the same priority as before this Agreement, and (iv) such Borrower has no
known claim against Lender arising from or in connection with the Loan Agreement
or the other Documents.
6. Governing Law. This Agreement has been executed and delivered in Xxxx County,
Illinois, and shall be governed by and construed under the laws of the State of
Illinois without giving effect to choice or conflicts of law principles
thereunder.
7. Section Titles. The section titles in this Agreement are for convenience of
reference only and shall not be construed so as to modify any provisions of this
Agreement.
8. Counterparts; Facsimile Transmissions. This Agreement may be executed in one
or more counterparts and on separate counterparts, each of which shall be deemed
an original, but all of which together shall constitute one and the same
instrument. Signatures to this Agreement may be given by facsimile or other
electronic transmission, and such signatures shall be fully binding on the party
sending the same.
9. Fees and Expenses. Borrower shall promptly pay to Lender all reasonable fees,
expenses and other amounts owing to Lender under the Loan Agreement and the
other Documents upon demand, including, without limitation, all reasonable fees,
costs and expenses incurred by Lender in connection with the preparation,
negotiation, execution, and delivery of this Agreement.
10. Incorporation By Reference. Lender and Borrower hereby agree that all of the
terms of the Documents are incorporated in and made a part of this Agreement by
this
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follows}
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IN WITNESS WHEREOF, this Agreement has been duly executed as of the
date first above written.
XXXXXX BOATS & MOTORS, INC., as a Borrower
By:
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Name:
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Title:
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XXXXXX BOATING CENTER GEORGIA, INC., as a Borrower
By:
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Name:
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Title:
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XXXXXX BOATING CENTER FLORIDA, INC., as a Borrower
By:
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Name:
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Title:
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ADVENTURE MARINE & OUTDOORS, INC., as a Borrower
By:
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Name:
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Title:
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ADVENTURE MARINE SOUTH, INC., as a Borrower
By:
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Name:
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Title:
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ADVENTURE BOAT BROKERAGE, INC., as a Borrower
By:
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Name:
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Title:
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TBC MANAGEMENT, INC., as a Borrower
By:
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Name:
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Title:
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TBC MANAGEMENT, LTD., as a Borrower
By:
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Name:
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Title:
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TRANSAMERICA COMMERCIAL FINANCE CORPORATION, as Lender
By:
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Name:
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Title:
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THE UNDERSIGNED ACKNOWLEDGE, AGREE AND CONSENT TO THE TERMS AND PROVISIONS OF
THE ABOVE AGREEMENT:
TBC ARKANSAS, INC., as a Guarantor
By:
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Name:
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Title:
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XXXXXX BOATING CENTER ARLINGTON, INC., as a Guarantor
By:
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Name:
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Title:
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XXXXXX BOATING CENTER BEAUMONT, INC., as a Guarantor
By:
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Name:
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Title:
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XXXXXX BOATING CENTER OKLAHOMA, INC., as a Guarantor
By:
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Name:
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Title:
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XXXXXX BOATING CENTER TENNESSEE, INC., as a Guarantor
By:
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Name:
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Title:
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XXXXXX XXXXXXX MARINE, INC., as a Guarantor
By:
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Name:
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Title:
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FALCON MARINE, INC., as a Guarantor
By:
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Name:
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Title:
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FALCON MARINE ABILENE, INC., as a Guarantor
By:
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Name:
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Title:
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XXXXXX BOATING CENTER ALABAMA, INC., as a Guarantor
By:
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Name:
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Title:
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XXXXXX BOATING CENTER LOUISIANA, INC., as a Guarantor
By:
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Name:
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Title:
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XXXXXX BOATS & MOTORS BATON ROUGE, INC., as a Guarantor
By:
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Name:
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Title:
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XXXXXX BOATING CENTER MISSISSIPPI, INC., as a Guarantor
By:
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Name:
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Title:
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XXXXXX BOATING CENTER LITTLE ROCK, INC., as a Guarantor
By:
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Name:
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Title:
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RED RIVER MARINE ARKANSAS, INC., as a Guarantor
By:
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Name:
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Title:
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SHELBY MARINE CENTER, INC., as a Guarantor
By:
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Name:
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Title:
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SHELBY MARINE PICKWICK, LLC, as a Guarantor
By:
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Name:
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Title:
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