THIRD AMENDED AND RESTATED PROGRAM TERMS LETTER

A. Rates and Terms

Effective Program Dates:

Applies to all outstanding invoices financed by any one or more Lenders pursuant to the Original PTL and all invoices financed by any one or more Lenders on or after the date hereof.

Subsidy Period:

As determined by manufacturer program (if applicable).

Eligible Products:

New and pre-owned marine products, subject to a perfected first priority Lien in favor of Agent for the benefit of Lenders and free and clear of all other Liens not permitted by the Inventory Financing Agreement.  Consigned products shall be excluded unless you comply with Agent’s documentation requirements with respect thereto and Agent otherwise agrees in writing.

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Dealer Rate:

The effective dealer interest rate for any month (after the manufacturer subsidy period expires, if applicable) shall be the One month LIBOR rate plus 3.45%.  

Dealer Rate shall be the same for both new and pre-owned inventory.

The Dealer Rate will be recalculated monthly based on changes in the One month LIBOR rate as outlined above.

Performance Rebate:

So long as Dealer remains in compliance with all the terms and conditions of the Inventory Financing Agreement, this Program Terms Letter and all other agreements or instruments by and between Dealer, Agent and any one or more Lenders, beginning the date hereof through the calendar quarter ending December 31, 2015, and for each calendar quarter thereafter, Agent, on behalf of Lenders, will pay you a rebate to be paid quarterly in an amount equal to .55% of (i) the average daily balance of outstanding Obligations owed to Lenders for the prior quarter less (ii) the average daily balance of the [****] for the prior quarter (the “Performance Rebate”).  Such rebate will be subject to the following:

1. Such rebates will be paid within 30 days following the end of the applicable quarter.

2. The average daily balance of outstanding Obligations will be calculated as the sum of the daily balance of outstanding Obligations for each day in the applicable quarter divided by the number of days in the applicable quarter.

3. The average daily balance of the [****] will be calculated as the sum of the daily balance of the [****] for each day in the applicable quarter divided by the number of days in the applicable quarter.

Unused Line Fee:

Dealer will be charged a monthly Unused Line Fee in an amount equal to 0.10% multiplied by the Unused Line, calculated based on the actual number of days in the calendar month in a year of 360 days.  Unused Line is the Maximum Credit Amount, minus the average daily balance of outstanding Obligations owed to Agent and Lenders, plus the average daily balance of the [****].  Billed monthly.

Maturity Period:

Invoices financed for new inventory by any one or more Lenders are considered due in full at 1080 days from original invoice date, except that invoices financed by any one or more Lenders related to all Azimut-Benetti S.p.A., Galeon, LLP., Alexander Marine Company, Ltd., and Sino Eagle Yacht Co., Ltd. are considered due in full at 1080 days from the original funding date.

Invoices financed for pre-owned (trade in or used) inventory by any one or more Lenders are considered due in full at 361 days from the date Dealer acquires such unit (“Acquisition Date”).

Advance Request:

Each advance with respect to pre-owned inventory or re-advance shall be made pursuant to a completed written advance request in the form attached hereto as Exhibit A (together with all attachments required thereby, an “Advance Request Form”) or such other form as Agent and Dealers may agree.

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In addition, each advance with respect to any advance request for Aquila brand inventory, Ocean Alexander brand inventory , or Galeon 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 or Galeon 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

(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

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Floorplan Advance Rate:

For new inventory (excluding Azimut 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.

For Azimut brand new inventory (except Azimut Pre-Sold Inventory): 85% of invoice amount for all inventory that is 72 feet or less and 75% of invoice amount for all inventory that is greater than 72 feet, subject to Availability; provided that, until Azimut has executed and delivered a current program terms letter (“Azimut PTL”), the advance rates for Azimut brand new inventory shall be as follows: 85% of invoice amount for all inventory that is 70 feet or less and 75% of invoice amount for all inventory that is greater than 70 feet, subject to Availability.

The advance rate for Azimut Pre-Sold inventory shall be 90% of the invoice amount, as verified by Agent, subject to Availability. As used herein, “Pre-Sold” means under contract to a retail customer pursuant to an Acceptable Contract.  “Acceptable Contract” means a fully executed bona fide contract with a retail customer, on terms that are commercially reasonable, including a deposit.

For Aquila brand new inventory, 75% of invoice amount, subject to a maximum of [****] in the aggregate advanced at any one time, and further subject to Availability.

For Ocean Alexander brand new inventory: 75% of invoice amount for all inventory that is 72 feet or less and 50% of invoice amount for all inventory that is greater than 72 feet, subject to a maximum of [****] in the aggregate advanced at any one time, and further subject to Availability.

For Galeon brand new inventory: 75% of invoice amount for all inventory that is 72 feet or less and 50% of invoice amount for all inventory that is greater than 72 feet, subject to a maximum of [****] in the aggregate advanced at any one time, and further subject to Availability.

As used herein, “Availability” shall mean:

(i)  the lesser of:

(a)  the Maximum Credit Amount, minus the outstanding amount of Approvals, and

(b)  (I) at any time the aggregate outstanding amount of Obligations is less than [****], 100% of the Eligible Inventory Collateral shown on the most recent inventory certificate (“Total Eligible Inventory”), or

(II)  at any time the aggregate outstanding amount of Obligations is equal to or greater than [****], 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,

(ii)  minus, the aggregate outstanding amount of Obligations.  

If Availability is negative at any time, then immediate payment shall be required of amount sufficient to cause Availability to be equal to or greater than $0.

Pre-owned (trade in or used) inventory advances will be as follows, subject to Availability, the Pre-owned Inventory Sublimit, the Specific Pre-Owned Sublimit, and the Other Pre-Owned Sublimit:

75% MarineMax Pre-owned Inventory Cost Day 1 (“Day 1” as used herein shall mean Acquisition Date) through Day 180 (after Acquisition Date); 67% Day 181 (after Acquisition Date) through Day 360 (after Acquisition Date), which reflects the 10% curtailment as described in “Floorplan Curtailments” section below; 0% Day 361+ (after Acquisition Date).

“MarineMax Pre-owned Inventory Cost” shall be Dealer’s internal valuation for pre-owned inventory (as set forth on the monthly inventory certificate and  borrowing base).  

All models of pre-owned inventory are eligible, provided low wholesale values can be determined via NADA, Yachtworld.com, survey, or other source acceptable to Agent.

Internal condition and valuation methodology required on all units > $500,000.00 (“Specific Pre-Owned Items”).  If valuation of any Specific Pre-Owned Item exceeds [****], any advance to Dealers in excess of [****] for such Specific Pre-Owned Item shall be in Agent’s discretion.

Trade in units < $500,000.00 value will be financed on a “borrowing base” calculated as the aggregate of the pre-owned advance rates multiplied by the applicable MarineMax Pre-owned Inventory Cost of such pre-owned inventory.  Agent may, on behalf of Lenders, implement a Pre-Owned Inventory Reserve against the pre-owned inventory to reduce the availability of eligible pre-owned inventory.  “Pre-Owned Inventory Reserve”

is defined and calculated as the low wholesale value determined via NADA, Yachtworld.com, survey or other source acceptable to Agent minus the MarineMax Pre-owned Inventory Cost, divided by the low wholesale value determined via NADA, Yachtworld.com, survey or other source acceptable to Agent, as a percentage.

Dealers are required to submit a borrowing base certificate in the form attached hereto as Exhibit B on the date hereof and monthly by the 10^th day of the month (or the first business day following the 10^th day of each month if the 10^th day is not a business day) based on the balances of pre-owned inventory as of the date of the certificate.  The monthly borrowing base certificate can be used to borrow up to 80% of eligible borrowing base for that calendar month, subject to Availability, the Pre-Owned Inventory Sublimit and the Other Pre-Owned Sublimit.  Any request for advances >  80% of the borrowing base reflected on the most recent borrowing base certificate requires submission of an updated borrowing base certificate and such advances shall be limited to 100% of updated borrowing base, subject to Availability, the Pre-Owned Inventory Sublimit and the Other Pre-Owned Sublimit.

If any unit (new or pre-owned) remains at a location other than a Permitted Location for more than 30 days, then immediate payment shall be required of the full principal amount of the Obligations owed with respect to such unit.  If the aggregate value of units at locations other than Permitted Locations (excluding boat shows) exceeds $5,000,000.00 at any time, then immediate payment shall be required of the Obligations with respect to such units in an aggregate amount equal to such excess.  In addition, if a material adverse change results in the reduction of the value of the Collateral in an aggregate amount exceeding $250,000.00, then immediate payment shall be required of the Obligations with respect to such Collateral in an amount equal to such excess; provided that, if such reduction of value is the subject of an insurance claim payable to Agent on behalf of Lenders as loss payee, then immediate payment of such excess amount shall only be required to the extent it exceeds the claim amount (net of any deductible) and payment of the remainder of such excess shall not be required until the earlier of (i) receipt of such insurance proceeds, if any, or the rejection or denial of such claim or any portion thereof and (ii) 30 days (or such later date as Agent may agree in writing) after such loss or damage.

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Concentration Limits:

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 > $150,000.00 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 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 < $500,000.00 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 than [****] in the aggregate may be Azimut 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 (or [****] or less for Azimut 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.

Inventory Reporting:

A monthly inventory certificate in the form attached hereto as Exhibit C or in such other form as Dealers and Agent may agree, together with supporting documentation requested by Agent, shall be required to be provided by the 10^h day of each month (or the first business day following the 10^th day of each month if the 10^th day is not a business day) based on the balances as of the date of the certificate.  All inventory to be included (new, pre-owned) is to be provided on ad-hoc basis upon Agent request.

Floorplan Curtailments:

Curtailment payments on invoices financed by any one or more Lenders will be due pursuant to the following schedule:

For all Azimut-Benetti S.p.A, Ocean Alexander, Galeon, and Aquila inventory, a curtailment payment of 10% of the initial amount financed is due and payable on each item of new inventory at each of the following points in time:  181, 361, 541, 721 and 900 days from the original funding date and the full remaining balance of the advance is due and payable on each item of Azimut-Benetti S.p.A, Ocean Alexander, Galeon, and Aquila inventory when it is aged 1080 days from the original funding date.  

For all other new and Pre-Sold inventory, a curtailment payment of 10% of the initial amount financed is due and payable on each item of new inventory at each of the following points in time: 181, 361, 541, 721 and 900 days from the date of the respective original invoice and the full remaining balance of the advance is due and payable on each item of inventory when it is aged 1080 days from the date of the original invoice.

For pre-owned (trade in or used) inventory < $500,000.00 low NADA wholesale value, a curtailment payment of 10% of the amount financed is due and payable at day 181 after the Acquisition Date; for pre-owned (trade in or used) inventory > $500,000.00 low NADA wholesale value, a curtailment payment of 10% of the amount financed is due and payable at day 181 after the Acquisition Date; and the advances with respect to all such items of inventory will be due in full at day 361 after the Acquisition Date.  

All curtailment payments will be billed monthly and due in a single payment on the last day of such month. The failure to remit curtailment payments when due shall be considered a Default under the terms of the Inventory Financing Agreement and any such late curtailment payments shall be subject to interest at the Default Rate until paid in full.

Curtailment payments will be offset by an amount equal to the lesser of (i) the Required Amount set forth in the [****], (ii) the [****] balance set forth in the [****], and (iii) [****] (provided the [****] has a balance of at least [****]).  Notwithstanding such offset, the entire amount of curtailment payments will be paid no later than 20 days following the due date thereof.

[****]:

[****] can be funded for curtailments due (up to a maximum of [****]) and other amounts subject to cap on the amount of [****] equal to the lesser of (i) [****] of the then outstanding loan balance or (ii) [****].

1. Maximum of [****] removal of funds per week (Dealer may not remove funds required to maintain the Required Amount)

2. Maximum of [****] contributions of funds per week (unless otherwise needed for minimum requirements)

3. Not intended for direct application for unit payoffs

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Inventory Re-Advance

Capability:

New inventory may be paid down to a minimum floorplan balance of $1,000.00 per unit; permitted to re-advance up to maximum allowable advance rate (original invoice amount less curtailments due)  subject to:

1. Request must aggregate at least $100,000.00 (refinance amount)

2. Maximum ‘re-book’ advance is limited to 25% of Maximum Credit Amount within any 30 day period or, if [****] is terminated at Agent’s option, 50% of Maximum Credit Amount within any 30 day period (such limit, the “Re-Advance Sublimit”)

3. Limited to Brunswick and Azimut product

4. Delivery of an Advance Request Form and certification of applicable inventory values

Landlord Lien Waivers:

If any Eligible Inventory Collateral is held at a location leased by you and you have not delivered to Agent a landlord lien waiver or subordination in form acceptable to Agent, as an alternative, you will be required to fund a reserve equal to 3 months of base rent, which will be placed in the [****] pursuant to the terms of the [****], as a “required” minimum amount.  

B. General Terms

Audit/Inspection Fees:

Pre-closing and annual audit costs will be paid by Dealers.  Actual floorcheck expenses for inventory inspections will be paid by Agent, provided that if results of the inspections are not satisfactory to Agent, in its reasonable discretion, then additional inspection expenses will be paid by Dealers.

MSO’s/Titles:

All Pre-owned titles and documentation must show all prior liens released.

Insurance Certificates:

On or before the date hereof, Dealer shall deliver to Agent certificates of insurance satisfying the requirements set forth in Section 6 of the Inventory Financing Agreement.

Audit/Inspection Frequency:

8 x per year

All locations with an average outstanding Total Eligible Inventory (calculated semi-annually based on inventory reports provided to Agent by Dealers) > $1,000,000 will be inspected quarterly at a minimum

All locations with an average outstanding Total Eligible Inventory (calculated semi-annually based on inventory reports provided to Agent by Dealers) < $1,000,000 will be inspected semi-annually at a minimum

During each inspection, Agent will inspect multiple locations wherein at least 48% of Total Eligible Inventory is located.  During each calendar quarter, Agent will inspect multiple locations wherein at least 98% of Total Eligible Inventory is located.

MSO and Preowned Title audits to be conducted every 120 days

and additional audits/inspections at any other time at Agent’s discretion.

COMS Non-Usage Fee:

Dealers will be charged $1,000 in the aggregate per month for any month during which Dealers do not use the CDF COMS on-line payment system for Dealers’ primary method of payment to Agent.

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Late Payment Fee:

Under the terms of your financing agreement with Agent and Lenders, you are to remit payment to Agent on behalf of Lenders immediately upon the earlier of (i) your receipt of the proceeds of any sale or other disposition of any unit of collateral financed by any one or more Lenders, and (ii) 7 calendar days after such sale or other disposition.  If it is discovered that a unit of collateral is sold or otherwise disposed of without payment remitted to Agent on behalf of Lenders (Sold out of Trust “SOT”), whether as the result of an inventory collateral inspection or otherwise, Agent may, in its sole discretion, charge you the following late payment fee on a monthly basis for each SOT item:

Day 1- 7 after the retail sale of the unit

On the 8^th day after the retail sale of the unit

$0.00

.25% of the outstanding invoice amount per unit per month

NSF Fee:

You will be charged a fee of $25 for each check or other item that is returned unpaid.

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The terms set forth in this Program Terms Letter shall apply only to loans by Lenders under the Inventory Financing Agreement (defined above), and will not apply to any other GE Commercial Distribution Finance platform or joint venture (i.e. RV, Yamaha, Suzuki, Polaris Acceptance, Brunswick Acceptance Company, LLC, etc.) or any loans with any Lender Affiliate.

Second Amended and Restated Inventory Financing Agreement, dated October 30, 2015, among MarineMax, Inc. (“Dealer Agent”), the other Dealers party thereto (collectively, together with Dealer Agent, “Dealers”) GE Commercial Distribution Finance LLC f/k/a GE Commercial Distribution Finance Corporation (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”)

Program Terms Letter – Exhibit A

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Program Terms Letter – Exhibit A

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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)

Program Terms Letter – Exhibit A

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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)

Program Terms Letter – Exhibit A

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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)

Program Terms Letter – Exhibit A

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Program Terms Letter – Exhibit B

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Program Terms Letter – Exhibit C

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