UNITED STATESSECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549 

FORM 10-Q 

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2017.

Commission File Number. 1-14173 

MARINEMAX, INC.(Exact Name of Registrant as Specified in Its Charter)

 

Florida 59-3496957(State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification Number)

   2600 McCormick Drive, Suite 200  

Clearwater, Florida  33759(Address of Principal Executive Offices) (ZIP Code)

727-531-1700(Registrant's Telephone Number, Including Area Code)

 

Indicate by check mark whether the registrant:  (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during thepreceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for thepast 90 days.

Yes   ☒     No   ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to besubmitted  and  posted  pursuant  to  Rule  405  of  Regulation  S-T  (§  232.405  of  this  chapter)  during  the  preceding  12  months  (or  for  such  shorter  period  that  theregistrant was required to submit and post such files).

Yes   ☒     No   ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerginggrowth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company" in Rule 12b-2of the Exchange Act. 

Large accelerated filer   ☐   Accelerated filer   ☒Non-accelerated filer   ☐   (Do not check if a smaller reporting company)   Smaller reporting company   ☐        Emerging growth company   ☐

 If  an  emerging  growth  company,  indicate  by  check  mark  if  the  registrant  has  elected  not  to  use  the  extended  transition  period  for  complying  with  any  new orrevised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐ 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes   ☐     No   ☒

The number of outstanding shares of the registrant's Common Stock on July 25, 2017 was 26,258,603. 

 

 

 MARINEMAX, INC. AND SUBSIDIARIES

Table of Contents Item No . Page

PART I. FINANCIAL INFORMATION  1.   Financial Statements (Unaudited):    

 Condensed Consolidated Statements of Operations for the Three and Nine Months Ended June 30, 2016 and 2017   3 Condensed Consolidated Balance Sheets as of September 30, 2016 and June 30, 2017   4 Condensed Consolidated Statement of Stockholders’ Equity for the Nine Months Ended June 30, 2017   5 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended June 30, 2016 and 2017   6 Notes to Condensed Consolidated Financial Statements   7      

2.   Management's Discussion and Analysis of Financial Condition and Results of Operations   16      

3.   Quantitative and Qualitative Disclosures About Market Risk   23      

4.   Controls and Procedures   24       

PART II. OTHER INFORMATION  1.   Legal Proceedings   251A.Risk Factors   252.   Unregistered Sales of Equity Securities and Use of Proceeds   253.   Defaults Upon Senior Securities   254.   Mine Safety Disclosures   255.   Other Information   256.   Exhibits   26

SIGNATURES   27       

EX – 31.1  EX – 31.2  EX – 32.1  EX – 32.2  EX – 101 INSTANCE DOCUMENT  EX – 101 SCHEMA DOCUMENT  EX – 101 CALCULATION LINKBASE DOCUMENT  EX – 101 DEFINITION LINKBASE DOCUMENT  EX – 101 LABEL LINKBASE DOCUMENT  EX – 101 PRESENTATION LINKBASE DOCUMENT    

 

 2

 PART I. FINANCI AL INFORMATION

ITEM 1. Financial Statements

MARINEMAX, INC. AND SUBSIDIARIESCondensed Consolidated Statements of Operations

(Amounts in thousands, except share and per share data)(Unaudited)

   Three Months Ended Nine Months Ended     June 30, June 30,     2016 2017 2016 2017 Revenue   $ 345,592    $ 329,809    $ 714,695    $ 801,702 Cost of sales     266,690      245,017      545,152      602,713 

Gross profit     78,902      84,792      169,543      198,989                                  Selling, general, and administrative expenses     54,325      59,557      136,735      161,433 

Income from operations     24,577      25,235      32,808      37,556                                  Interest expense     1,473      1,897      4,282      5,511 Income before income tax provision     23,104      23,338      28,526      32,045                                  Income tax provision     9,285      9,094      11,530      12,409 Net income   $ 13,819    $ 14,244    $ 16,996    $ 19,636                                  Basic net income per common share   $ 0.57    $ 0.59    $ 0.70    $ 0.81                                  Diluted net income per common share   $ 0.56    $ 0.57    $ 0.69    $ 0.78                                  Weighted average number of common shares used in computing   net income per common share:                                                                 

Basic     24,159,070      24,336,777      24,175,671      24,293,512 Diluted     24,770,980      25,095,398      24,757,516      25,045,046

 

 See accompanying notes to condensed consolidated financial statements.

  

 

 3

 MARINEMAX, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets(Amounts in thousands, except share data)

(Unaudited)   September 30, June 30,     2016 2017

ASSETS                CURRENT ASSETS:               

Cash and cash equivalents   $ 38,585    $ 58,930 Accounts receivable, net     24,583      41,696 Inventories, net     321,978      385,277 Prepaid expenses and other current assets     5,965      5,872 

Total current assets     391,111      491,775                  Property and equipment, net of accumulated depreciation of $61,003 and $69,306     121,353      127,750 Goodwill and other long-term assets, net     13,149      29,978 Deferred tax assets, net     21,075      11,753 

Total assets   $ 546,688    $ 661,256 LIABILITIES AND SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES:               Accounts payable   $ 9,597    $ 25,634 Customer deposits     30,129      22,451 Accrued expenses     25,603      33,547 Short-term borrowings     166,550      241,642 

Total current liabilities     231,879      323,274 Long-term liabilities     2,336      3,250 

Total liabilities     234,215      326,524 SHAREHOLDERS' EQUITY:               Preferred stock, $.001 par value, 1,000,000 shares authorized, none issued or outstanding   as of September 30, 2016 and June 30, 2017   -    - Common stock, $.001 par value, 40,000,000 shares authorized, 25,977,632 and   26,254,839 shares issued and 24,285,616 and 24,276,048 shares outstanding as of   September 30, 2016 and June 30, 2017, respectively     26      26 Additional paid-in capital     241,058      248,600 Retained earnings     103,212      122,848 Treasury stock, at cost, 1,692,016 and 1,978,791 shares held as of September 30, 2016   and June 30, 2017, respectively     (31,823)     (36,742)

Total shareholders’ equity     312,473      334,732 Total liabilities and shareholders’ equity   $ 546,688    $ 661,256

 

 See accompanying notes to condensed consolidated financial statements.

  

 

 4

 MARINEMAX, INC. AND SUBSIDIARIES

Condensed Consolidated Statement of Shareholders’ Equity(Amounts in thousands, except share data)

(Unaudited)     Additional Total     Common Stock Paid-in Retained Treasury Shareholders’     Shares Amount Capital Earnings Stock Equity BALANCE, September 30, 2016     25,977,632    $ 26    $ 241,058    $ 103,212    $ (31,823)   $ 312,473 Net income     -      -      -      19,636      -      19,636 Purchase of treasury stock     -      -      -      -      (4,919)     (4,919)Shares issued pursuant to employee stock purchase   plan     51,697      -      887      -      -      887 Shares issued upon vesting of equity awards, net of   minimum tax withholding     9,087      -      (87)     -      -      (87)Shares issued upon exercise of stock options     175,431      -      2,142      -      -      2,142 Stock-based compensation     40,992      -      4,600      -      -      4,600 BALANCE, June 30, 2017     26,254,839    $ 26    $ 248,600    $ 122,848    $ (36,742)   $ 334,732

 

 See accompanying notes to condensed consolidated financial statements.

  

 

 5

 MARIN EMAX, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows(Amounts in thousands)

(Unaudited) 

  Nine Months Ended     June 30,     2016 2017 CASH FLOWS FROM OPERATING ACTIVITIES:               

Net income   $ 16,996    $ 19,636 Adjustments to reconcile net income to net cash provided by (used in) operating   activities:                

Depreciation and amortization     5,903      6,877 Deferred income tax provision     10,895      9,322 Gain on sale of property and equipment and assets held for sale     (269)     (62)Stock-based compensation expense     3,152      4,600 

(Increase) decrease in —               Accounts receivable, net     (8,177)     (16,769)Inventories, net     (17,070)     (41,083)Prepaid expenses and other assets     (2,977)     (1,413)

Increase (decrease) in —               Accounts payable     5,467      16,037 Customer deposits     4,649      (7,922)Accrued expenses and long-term liabilities     5,457      5,098 

Net cash provided by (used in) operating activities     24,026      (5,679)CASH FLOWS FROM INVESTING ACTIVITIES:               

Purchases of property and equipment     (8,451)     (12,354)Net cash used in acquisition of businesses, primarily property and equipment and   inventory     (17,062)     (18,725)Proceeds from sale of property and equipment and assets held for sale     138      946 

Net cash used in investing activities     (25,375)     (30,133)CASH FLOWS FROM FINANCING ACTIVITIES:               

Net borrowings on short-term borrowings     26,190      58,284 Net proceeds from issuance of common stock under incentive compensation and   employee purchase plans     1,266      3,029 Contingent acquisition consideration payments   -      (150)Payments on tax withholdings for equity awards     (80)     (87)Purchase of treasury stock     (3,078)     (4,919)

Net cash provided by financing activities     24,298      56,157 NET INCREASE IN CASH AND CASH EQUIVALENTS     22,949      20,345 

CASH AND CASH EQUIVALENTS, beginning of period     32,611      38,585 CASH AND CASH EQUIVALENTS, end of period   $ 55,560    $ 58,930 Supplemental Disclosures of Cash Flow Information:               

Cash paid for:                Interest   $ 4,647    $ 6,211 Income taxes     213      457 

Non-cash items:               Adjustment to retained earnings and deferred tax assets to adopt ASU 2016-09     5,197    - Contingent consideration liabilities from acquisitions     3,307      3,720 Exchange of equity interest for controlling interest     2,860    -

 

 See accompanying notes to condensed consolidated financial statements.

  

 

 6

 MARINEMAX, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)

 1. COMPANY BACKGROUND:

We are the largest recreational boat and yacht retailer in the United States. We engage primarily in the retail sale, brokerage, and service of new and usedboats, motors, trailers, marine parts and accessories and offer slip and storage accommodations in certain locations. In addition, we arrange related boat financing,insurance, and extended service contracts.  We also offer the charter of power and sailing yachts in the British Virgin Islands.  As of June 30, 2017, we operatedthrough  62  retail  locations  in  17  states,  consisting  of  Alabama,  California,  Connecticut,  Florida,  Georgia,  Maryland,  Massachusetts,  Minnesota,  Missouri,  NewJersey, New York, North Carolina, Ohio, Oklahoma, Rhode Island, South Carolina and Texas. Our MarineMax Vacations operation maintains a facility in Tortola,British Virgin Islands.

We  are  the  nation’s  largest  retailer  of  Sea  Ray  and  Boston  Whaler  recreational  boats  and  yachts,  which  are  manufactured  by  Brunswick  Corporation(“Brunswick”). Sales of new Brunswick boats accounted for approximately 40% of our revenue in fiscal 2016.  Sales of new Sea Ray and Boston Whaler boats,both divisions of Brunswick, accounted for approximately 24% and 14%, respectively, of our revenue in fiscal 2016. Brunswick is a world leading manufacturer ofmarine products and marine engines. We believe we represented approximately 53% of Brunswick’s Sea Ray boat sales, during our fiscal 2016.

We have dealership  agreements  with Sea Ray,  Boston Whaler,  Meridian,  and Mercury Marine,  all  subsidiaries  or  divisions  of  Brunswick.  We also havedealer agreements with Italy-based Azimut-Benetti Group’s product line for Azimut Yachts. These agreements allow us to purchase, stock, sell, and service thesemanufacturers’ boats and products. These agreements also allow us to use these manufacturers’ names, trade symbols, and intellectual property in our operations.

We have multi-year dealer agreements with Brunswick covering Sea Ray products that appoint us as the exclusive dealer of Sea Ray boats in our geographicmarkets.  We  are  the  exclusive  dealer  for  Boston  Whaler  through  multi-year  dealer  agreements  for  many  of  our  geographic  markets.  In  addition,  we  are  theexclusive dealer  for Azimut Yachts for the entire United States through a multi-year  dealer agreement.  Sales of new Azimut boats accounted for approximately11% of our revenue in fiscal 2016. We believe non-Brunswick brands offer a migration for our existing customer base or fill a void in our product offerings, andaccordingly, do not compete with the business generated from our other prominent brands.

As is typical in the industry, we deal with most of our manufacturers, other than Sea Ray, Boston Whaler, Meridian, and Azimut Yachts, under renewableannual dealer agreements, each of which gives us the right to sell various makes and models of boats within a given geographic region. Any change or terminationof these agreements, or the agreements discussed above, for any reason, or changes in competitive, regulatory, or marketing practices, including rebate or incentiveprograms, could adversely affect our results of operations. Although there are a limited number of manufacturers of the type of boats and products that we sell, webelieve that  adequate alternative  sources would be available  to replace any manufacturer  other  than Sea Ray and Azimut as a product  source.  These alternativesources may not be available at the time of any interruption, and alternative products may not be available at comparable terms, which could affect operating resultsadversely.

General economic conditions and consumer spending patterns can negatively impact our operating results. Unfavorable local, regional, national, or globaleconomic developments or uncertainties regarding future economic prospects could reduce consumer spending in the markets we serve and adversely affect  ourbusiness.  Economic conditions  in  areas  in  which we operate  dealerships,  particularly  Florida  in  which we generated  approximately  52%, 53%, and 55% of  ourrevenue during fiscal 2014, 2015, and 2016, respectively, can have a major impact on our operations. Local influences, such as corporate downsizing, military baseclosings, inclement weather such as Hurricane Sandy in 2012, environmental conditions, and specific events, such as the BP oil spill in the Gulf of Mexico in 2010,also could adversely affect, and in certain instances have adversely affected, our operations in certain markets.

 In an economic downturn, consumer discretionary spending levels generally decline, at times resulting in disproportionately large reductions in the sale of

luxury goods. Consumer spending on luxury goods also may decline as a result of lower consumer confidence levels, even if prevailing economic conditions arefavorable.  As  a  result,  an  economic  downturn  could  impact  us  more  than  certain  of  our  competitors  due  to  our  strategic  focus  on  a  higher  end  of  our  market.Although we have expanded our operations during periods of stagnant or modestly declining industry trends, the cyclical nature of the recreational boating industryor the lack of industry growth may adversely affect our business, financial condition, and results of operations. Any period of adverse economic conditions or lowconsumer confidence is likely to have a negative effect on our business.

 

 7

 Lower consumer spending resulting from a downturn in the housing market and other economic factors adversely affected our business in fiscal 2007, and

continued weakness in consumer spending and de pressed economic conditions had a substantial negative effect on our business and industry for several years afterfiscal  2007.  These  conditions  caused  us  to  substantially  reduce  our  acquisition  program,  delay  new store  openings,  reduce  our  inventory  purch  ases, engage ininventory reduction efforts,  close a  number of  our  retail  locations,  reduce our headcount,  and amend and replace our credit  facility.  Acquisitions and new storeopenings remain important  strategies to our company, and we have recently close d on certain acquisitions,  and we plan to accelerate  our growth through thesestrategies  as  economic  conditions  continue  to  improve.  However,  we cannot  predict  the  length  of  unfavorable  economic  or  industry  conditions  or  the  extent  towhich they will conti nue to adversely affect our operating results nor can we predict the effectiveness of the measures we have taken to address this environment.

  2. BASIS OF PRESENTATION:

These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the UnitedStates for interim financial information, the instructions to Quarterly Report on Form 10-Q, and Rule 10-01 of Regulation S-X and should be read in conjunctionwith our Annual Report on Form 10-K for the fiscal year ended September 30, 2016. Accordingly, these unaudited condensed consolidated financial statements donot include all  of the information and footnotes required by accounting principles generally accepted in the United States for complete financial  statements.  Alladjustments,  consisting  of  only  normal  recurring  adjustments  considered  necessary  for  fair  presentation,  have  been  reflected  in  these  unaudited  condensedconsolidated financial  statements.  As of June 30, 2017, our financial  instruments consisted of cash and cash equivalents,  accounts receivable,  accounts payable,customer deposits, and short-term borrowings. The carrying amounts of our financial instruments reported on the balance sheet as of June 30, 2017, approximatedfair value due either to length to maturity or existence of variable interest rates, which approximate prevailing market rates.  The operating results for the three andnine months ended June 30, 2017, are not necessarily indicative of the results that may be expected in future periods.

The preparation of unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United Statesrequires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of thedate  of  the  unaudited  condensed  consolidated  financial  statements  and  the  reported  amounts  of  revenue  and  expenses  during  the  reporting  periods.  Significantestimates  made  by  us  in  the  accompanying  unaudited  condensed  consolidated  financial  statements  include  valuation  allowances,  valuation  of  goodwill  andintangible assets, valuation of long-lived assets, and valuation of accruals. Actual results could differ from those estimates.

Unless  the  context  otherwise  requires,  all  references  to  “MarineMax”  mean  MarineMax,  Inc.  prior  to  its  acquisition  of  five  previously  independentrecreational boat dealers in March 1998 (including their related real estate companies) and all references to the “Company,” “our company,” “we,” “us,” and “our”mean, as a combined company, MarineMax, Inc. and the 27 recreational boat dealers, two boat brokerage operations, and two full-service yacht repair operationsacquired as of June 30, 2017 (the “acquired dealers,” and together with the brokerage and repair operations, “operating subsidiaries” or the “acquired companies”).

In  order  to  provide  comparability  between  periods  presented,  certain  amounts  have  been  reclassified  from  the  previously  reported  unaudited  condensedconsolidated  financial  statements  to  conform  to  the  unaudited  condensed  consolidated  financial  statement  presentation  for  the  current  period.  The  unauditedcondensed consolidated financial statements include our accounts and the accounts of our subsidiaries, all of which are wholly owned. All significant intercompanytransactions and accounts have been eliminated.  3. NEW ACCOUNTING PRONOUNCEMENTS:

In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”),  aconverged standard on revenue recognition. The new pronouncement requires revenue recognition to depict the transfer of promised goods or services to customersin  an  amount  that  reflects  the  consideration  to  which  the  entity  expects  to  be  entitled  in  exchange  for  those  goods  or  services.  The  guidance  also  specifies  theaccounting  for  some  costs  to  obtain  or  fulfill  a  contract  with  a  customer,  as  well  as  enhanced  disclosure  requirements.  ASU  2014-09  is  effective  for  annualreporting  periods  beginning  after  December  15,  2017,  including  interim  reporting  periods  within  that  reporting  period.  Early  adoption  is  permitted  for  annualreporting periods beginning after December 15, 2016. While we are continuing to evaluate the impact the adoption of ASU 2014-09 will have on our unauditedcondensed consolidated  financial  statements,  we currently  do not  believe  the  adoption of  this  standard  will  have a  material  impact  on our  unaudited condensedconsolidated  financial  statements,  or  will  cause  a  significant  change  to  our  current  accounting  policies  or  internal  controls  over  financial  reporting  for  revenuerecognition  on  boat,  motor,  and  trailer  sales,  parts  and  service  operations,  brokerage  commissions,  slip  and  storage  services,  charter  rentals,  and  fee  incomegenerated from finance and insurance products.

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In July 2015, the FASB issued ASU No. 201 5-11, “Inventory (Topic 330)” (“ASU 2015-11”).  The pronouncement was issued to simplify the measurementof inventory and change the measurement from lower of cost or market to lower of cost and net realizable value. This pronouncement is effective for rep ortingperiods beginning after December 15, 2016. We elected to early adopt the new guidance in the first quarter of fiscal 2017. The adoption of ASU 2015-11 did nothave an impact on the Company’s unaudited condensed consolidated financial position, results of operations, or internal controls.

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). This update requires organizations to recognize lease assets andlease  liabilities  on  the  balance  sheet  and  also  disclose  key  information  about  leasing  arrangements.    ASU  2016-02  is  effective  for  annual  reporting  periodsbeginning on or after December 15, 2018, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of aninterim  or  annual  period.  While  we  are  continuing  to  evaluate  the  impact  of  the  adoption  of  ASU 2016-02  on  our  unaudited  condensed  consolidated  financialstatements, we believe the adoption of ASU 2016-02 may have a significant and material impact to our unaudited condensed consolidated balance sheet given ourcurrent  lease  agreements  for  our  leased retail  locations.  We are  currently  evaluating the impact  the adoption of  ASU 2016-02 will  have on our  other  unauditedcondensed consolidated financial statements. Based on a preliminary assessment, we expect that most of our operating lease commitments will be subject to thenew  guidance  and  recognized  as  operating  lease  liabilities  and  right-of-use  assets  upon  adoption,  resulting  in  a  material  increase  in  the  assets  and  liabilitiesrecorded on our unaudited condensed consolidated balance sheet. We are continuing our assessment, which may identify additional impacts this standard will haveon our unaudited condensed consolidated financial statements and related disclosures and internal controls over financial reporting.

In March 2016, the FASB issued ASU 2016-09, “Compensation – Stock Compensation (Topic 718)” (“ASU 2016-09”).  This update was issued as part ofthe FASB’s simplification initiative and affects all entities that issue share-based payment awards to their employees. The amendments in this update cover suchareas as the recognition of excess tax benefits and deficiencies, the classification of those excess tax benefits on the statement of cash flows, an accounting policyelection for forfeitures, the amount an employer can withhold to cover income taxes and still qualify for equity classification and the classification of those taxespaid on the statement of cash flows. This update is effective for annual and interim periods beginning after December 15, 2016. We elected to early adopt the newguidance in the fourth quarter of fiscal 2016 which required us to reflect any adjustments as of October 1, 2015, the beginning of the annual period that includes theinterim period of adoption. The primary effect of adoption was the recognition of excess tax benefits in our provision for income taxes rather than additional paid-in capital  for all  periods in fiscal 2016. This early adoption resulted in an approximately $5.2 million increase in deferred tax assets and retained earnings as ofOctober  1,  2015,  the  beginning  of  fiscal  2016.  The  adoption  in  the  fourth  quarter  of  fiscal  2016 of  ASU 2016-09  resulted  in  additional  income tax  expense  of$242,000 for the three months ended June 30, 2016 and an additional income tax expense of $376,000 for the nine months ended June 30, 2016 from the previouslyreported income tax provisions in the unaudited condensed consolidated statements of operations for the third quarter and nine months ended June 30, 2016 .

In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment (Topic 350)” (“ASU 2017-04”). This update removes therequirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. As a result, under ASU 2017-04, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and shouldrecognize an impairment  charge for  the amount by which the carrying amount exceeds the reporting unit’s  fair  value;  however,  the impairment  loss recognizedshould not exceed the total amount of goodwill allocated to that reporting unit. This guidance is effective prospectively for fiscal years beginning after December15,  2019.  Early  adoption  is  permitted  for  interim  or  annual  goodwill  impairment  tests  performed  after  January  1,  2017.    The  adoption  of  ASU 2017-04  is  notexpected to have a significant impact on the Company’s unaudited condensed consolidated financial position, results of operations, or internal controls.  

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 4. REVENUE RECOGNITION:

We recognize  revenue  from boat,  motor,  and trailer  sales,  and parts  and  service  operations  at  the  time the  boat,  motor,  trailer,  or  part  is  delivered  to  oraccepted by the customer or the service is completed. We recognize deferred revenue from service operations and slip and storage services on a straight-line basisover  the  term of  the  contract  as  services  are  completed.  We recognize  commissions  earned  from a  brokerage  sale  at  the  time  the  related  brokerage  transactioncloses. We recognize income from the rentals of chartering power and sailing yachts on a straight-line basis over the term of the contract as services are completed.We recognize commissions earned by us for placing notes with financial  institutions in connection with customer boat financing when we recognize the relatedboat sales. We recognize marketing fees earned on credit, life, accident, disability, gap, and hull insurance products sold by third-party insurance companies at thelater  of  customer  acceptance  of  the  insurance  product  as  evidenced  by  contract  execution  or  when  the  related  boat  sale  is  recognized.  Pursuant  to  negotiatedagreements with financial and insurance institutions, we are charged back for a portion of these fees should the customer terminate or default on the related financeor insurance contract before it is outstanding for a stipulated minimum period of time. We base the chargeback allowance, which was not material to the unauditedcondensed  consolidated  financial  statements  taken  as  a  whole  as  of  June  30,  2017,  on  our  experience  with  repayments  or  defaults  on  the  related  finance  orinsurance contracts.

We also recognize commissions earned on extended warranty service contracts sold on behalf of third-party insurance companies at the later of customeracceptance  of  the  service  contract  terms as  evidenced by contract  execution  or  recognition  of  the  related  boat  sale.  We are  charged back for  a  portion  of  thesecommissions should the customer terminate or default on the service contract prior to its scheduled maturity. We determined the chargeback allowance, which wasnot material to the unaudited condensed consolidated financial statements taken as a whole as of June 30, 2017, based upon our experience with terminations ordefaults on the service contracts. 5. INVENTORIES:

Inventory  costs  consist  of  the  amount  paid  to  acquire  inventory,  net  of  vendor  consideration  and  purchase  discounts,  the  cost  of  equipment  added,reconditioning costs,  and transportation costs relating to acquiring inventory for sale.  We state new and used boat,  motor,  and trailer  inventories at  the lower ofcost, determined on a specific-identification basis, or net realizable value. We state parts and accessories at the lower of cost, determined on an average cost basis,or net realizable value. We utilize our historical experience, the aging of the inventories, and our consideration of current market trends as the basis for determininga  lower  of  cost  or  net  realizable  value  valuation  allowance.    As  of  September  30,  2016  and  June  30,  2017,  our  lower  of  cost  or  net  realizable  value  valuationallowance  for  new and used boat,  motor,  and trailer  inventories  was  $1.0  million  and $1.3  million,  respectively.  If  events  occur  and market  conditions  change,causing the fair value to fall below carrying value, the lower of cost or net realizable value valuation allowance could increase. 6. IMPAIRMENT OF LONG-LIVED ASSETS:

FASB Accounting  Standards  Codification  360-10-40,  “Property,  Plant,  and  Equipment  -  Impairment  or  Disposal  of  Long-Lived  Assets”  (“ASC 360-10-40”),  requires  that  long-lived  assets,  such  as  property  and  equipment  and  purchased  intangibles  subject  to  amortization,  be  reviewed  for  impairment  wheneverevents or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of the asset is measured by comparison ofits  carrying  amount  to  undiscounted  future  net  cash  flows  the  asset  is  expected  to  generate.  If  such  assets  are  considered  to  be  impaired,  the  impairment  to  berecognized is measured as the amount by which the carrying amount of the asset exceeds its fair market value. Estimates of expected future cash flows representour best estimate based on currently available information and reasonable and supportable assumptions. Any impairment recognized in accordance with ASC 360-10-40  is  permanent  and  may  not  be  restored.  The  analysis  is  performed  at  a  regional  level  for  indicators  of  permanent  impairment  given  the  geographicalinterdependencies  among our  locations.  Based  upon our  most  recent  analysis,  which  excludes  fixed  assets  classified  as  held  for  sale  which are  recorded  at  fairvalue, we believe no impairment of long-lived assets existed as of June 30, 2017. 7. INCOME TAXES:

We  account  for  income  taxes  in  accordance  with  FASB  Accounting  Standards  Codification  740,  “Income  Taxes”  (“ASC  740”).  Under  ASC  740,  werecognize deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statement carrying amountsof existing assets and liabilities and their respective tax bases. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxableincome in the years in which we expect those temporary differences to be recovered or settled.  We record valuation allowances to reduce our deferred tax assets tothe amount expected to be realized by considering all available positive and negative evidence.  As of September 30, 2016 and June 30, 2017, we had a valuationallowance on our deferred tax assets of $454,000.

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During the three months ended June 30, 2016 and June 30, 2017 we recognized an income tax provision of $9.3 and $9.1 million, respectively. During thenine months ended June 30, 2016 and June 30, 2017 we recognized an income tax provision of $11.5 million and $12.4 million, respectively. The effective incometax rate for the three months ended June 30, 2016 and June 30, 2017 was 40.2% and 39.0%, respectively. The effective income tax rate for the nine months endedJune 30, 2016 and June 30, 2017 was 40.4% and 38.7%, respectively. The adoption in the fourth quarter of fiscal 2016 of ASU 2016-09 resulted in an increase inincome tax expense of $242,000 for the three months ended June 30, 2016 , and an increase in income tax expense of $376,000 for the nine months ended June 30,2016 .

  8. SHORT-TERM BORROWINGS:

In  May  2017,  we  amended  and  restated  our  Inventory  Financing  Agreement  (the  “Amended  Credit  Facility”),  originally  entered  into  in  June  2010,  assubsequently  amended,  with  Wells  Fargo  Commercial  Distribution  Finance  LLC (formerly  GE  Commercial  Distribution  Finance  Corporation).  The  May  2017amendment and restatement extended the maturity date of the Credit Facility to October 2020, and the Amended Credit Facility includes two additional one-yearextension  periods,  with  lender  approval.  The  May  2017  amendment  and  restatement,  among  other  things,  modified  the  amount  of  borrowing  availability  andmaturity  date  of  the  Credit  Facility.  The  Amended  Credit  Facility  provides  a  floor  plan  financing  commitment  of  up  to  $350.0  million,  an  increase  from  theprevious limit of $300.0 million, subject to borrowing base availability resulting from the amount and aging of our inventory.

The Amended Credit Facility has certain financial covenants as specified in the agreement. The covenants include provisions that our leverage ratio mustnot exceed 2.75 to 1.0 and that our current ratio must be greater than 1.2 to 1.0. The interest rate for amounts outstanding under the Amended Credit Facility is 345basis  points  above  the  one-month  London  Inter-Bank  Offering  Rate  (“LIBOR”).  There  is  an  unused  line  fee  of  ten  basis  points  on  the  unused  portion  of  theAmended Credit Facility. 

Advances under the Amended Credit Facility are initiated by the acquisition of eligible new and used inventory or are re-advances against eligible new andused inventory that have been partially paid-off. Advances on new inventory will generally mature 1,080 days from the original invoice date. Advances on usedinventory will mature 361 days from the date we acquire the used inventory. Each advance is subject to a curtailment schedule, which requires that we pay downthe  balance  of  each  advance  on  a  periodic  basis  starting  after  six  months.  The  curtailment  schedule  varies  based  on  the  type  and  value  of  the  inventory.  Thecollateral for the Amended Credit Facility is all of our personal property with certain limited exceptions. None of our real estate has been pledged for collateral forthe Amended Credit Facility.

As of June 30, 2017, our indebtedness associated with financing our inventory and working capital needs totaled approximately $241.6 million. As of June30, 2016 and June 30, 2017, the interest rate on the outstanding short-term borrowings was approximately 3.9% and 4.5%, respectively. As of June 30, 2017, ouradditional available borrowings under our Amended Credit Facility were approximately $49.4 million based upon the outstanding borrowing base availability.

As is common in our industry, we receive interest assistance directly from boat manufacturers, including Brunswick. The interest assistance programs varyby manufacturer, but generally include periods of free financing or reduced interest rate programs. The interest assistance may be paid directly to us or our lenderdepending on the arrangements the manufacturer has established. We classify interest assistance received from manufacturers as a reduction of inventory cost andrelated cost of sales as opposed to netting the assistance against our interest expense incurred with our lenders.

The availability and costs of borrowed funds can adversely affect our ability to obtain adequate boat inventory and the holding costs of that inventory aswell as the ability and willingness of our customers to finance boat purchases. As of June 30, 2017, we had no long-term debt. However, we rely on our AmendedCredit Facility to purchase our inventory of boats. The aging of our inventory limits our borrowing capacity as defined curtailments reduce the allowable advancerate as our inventory ages. Our access to funds under our Amended Credit Facility also depends upon the ability of our lenders to meet their funding commitments,particularly if they experience shortages of capital or experience excessive volumes of borrowing requests from others during a short period of time. Unfavorableeconomic conditions, weak consumer spending, turmoil in the credit markets, and lender difficulties, among other potential reasons, could interfere with our abilityto utilize our Amended Credit Facility to fund our operations. Any inability to utilize our Amended Credit Facility could require us to seek other sources of fundingto repay amounts outstanding under the credit agreements or replace or supplement our credit agreements, which may not be possible at all or under commerciallyreasonable terms.

Similarly, decreases in the availability of credit and increases in the cost of credit adversely affect the ability of our customers to purchase boats from us andthereby adversely affect our ability to sell our products and impact the profitability of our finance and insurance activities.

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  9. STOCK-BASED COMPENSATION:

We account for our stock-based compensation plans following the provisions of FASB Accounting Standards Codification 718, “Compensation — StockCompensation”  (“ASC  718”).    In  accordance  with  ASC  718,  we  use  the  Black-Scholes  valuation  model  for  valuing  all  stock-based  compensation  and  sharespurchased under our Employee Stock Purchase Plan. We measure compensation for restricted stock awards and restricted stock units at fair value on the grant datebased on the number of shares expected to vest and the quoted market price of our common stock. We recognize compensation cost for all awards in operations, netof estimated forfeitures, on a straight-line basis over the requisite service period for each separately vesting portion of the award.

During  the  three  months  June  30,  2016  and  June  30,  2017,  we  recognized  stock-based  compensation  expense  of  approximately  $1.0  million  and  $1.3million, respectively,  and for the nine months ended June 30, 2016 and June 30, 2017, we recognized stock-based compensation expense of approximately $3.2million and $4.6 million, respectively, in selling, general, and administrative expenses in the unaudited condensed consolidated statements of operations.

Cash received from option exercises under all share-based compensation arrangements and the employee stock purchase plan for the three months endedJune 30, 2016 and June 30, 2017, was approximately $656,000 and $1.0 million, respectively, and for the nine months ended June 30, 2016 and June 30, 2017, wasapproximately $1.3 million and $3.0 million, respectively. We currently expect to satisfy share-based awards with registered shares available to be issued. 10. THE INCENTIVE STOCK PLANS:

During February 2017, our shareholders approved a proposal to amend the 2011 Stock-Based Compensation Plan (“2011 Plan”) to increase the 2,200,456share threshold by 1,000,000 shares to 3,200,456 shares.  During January 2011, our shareholders approved a proposal to authorize our 2011 Plan, which replacedour 2007 Incentive Compensation Plan (“2007 Plan”). Our 2011 Plan provides for the grant of stock options, stock appreciation rights, restricted stock, stock units,bonus stock, dividend equivalents, other stock related awards, and performance awards (collectively “awards”), that may be settled in cash, stock, or other property.Our 2011 Plan is  designed to attract,  motivate,  retain,  and reward our executives,  employees,  officers,  directors,  and independent  contractors  by providing suchpersons with annual and long-term performance incentives to expend their maximum efforts in the creation of shareholder value. Subsequent to the February 2017amendment described above, the total number of shares of our common stock that may be subject to awards under the 2011 Plan is equal to 3,000,000 shares, plus:(i) any shares available for issuance and not subject to an award under the 2007 Plan, which was 200,456 shares at the time of approval of the 2011 Plan; (ii) thenumber of shares with respect to which awards granted under the 2011 Plan and the 2007 Plan terminate without the issuance of the shares or where the shares areforfeited or repurchased; (iii) with respect to awards granted under the 2011 Plan and the 2007 Plan, the number of shares that are not issued as a result of the awardbeing  settled  for  cash  or  otherwise  not  issued  in  connection  with  the  exercise  or  payment  of  the  award;  and  (iv)  the  number  of  shares  that  are  surrendered  orwithheld in payment of the exercise price of any award or any tax withholding requirements in connection with any award granted under the 2011 Plan or the 2007Plan.  The 2011 Plan terminates  in  January 2021,  and awards  may be granted at  any time during the  life  of  the  2011 Plan.  The dates  on which awards  vest  aredetermined by the Board of Directors or the Plan Administrator. The Board of Directors has appointed the Compensation Committee as the Plan Administrator. Theexercise prices of options are determined by the Board of Directors or the Plan Administrator and are at least equal to the fair market value of shares of commonstock on the date of grant. The term of options under the 2011 Plan may not exceed ten years. The options granted have varying vesting periods. To date, we havenot settled or been under any obligation to settle any awards in cash.

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The following table summarizes activity from our incentive stock plans from September 30, 2016 through June 30, 2017: 

   

SharesAvailablefor Grant

OptionsOutstanding

AggregateIntrinsic Value(in thousands)

WeightedAverageExercise

Price

WeightedAverage

RemainingContractual

Life Balance as of September 30, 2016     732,103      1,451,102    $ 12,397    $ 12.33      6.0 

Options authorized     1,000,000      -              -         Options granted     -      -              -         Options cancelled/forfeited/expired     56,667      (56,667)            23.29        Options exercised     -      (175,431)            12.21        Restricted stock awards issued     (358,342)     -              -         Restricted stock awards forfeited     8,000      -              -         Additional shares of stock issued     (40,992)     -              -         

Balance as of June 30, 2017     1,397,436      1,219,004    $ 9,166    $ 11.83      5.5                                          Exercisable as of June 30, 2017            971,670    $ 8,300    $ 10.81      5.1

 

 No options were granted for the nine months ended June 30, 2017. The weighted average grant date fair value of options granted during the nine months

ended June 30, 2016 was $6.88. The total intrinsic value of options exercised during the nine months ended June 30, 2016 and June 30, 2017 was $950,000 and$1.6 million, respectively.

As of June 30, 2016 and June 30, 2017, there was approximately $1.3 million and $268,000, respectively, of unrecognized compensation costs related tonon-vested options that are expected to be recognized over a weighted average period of 0.9 years and 0.3 years, respectively. The total fair value of options vestedduring the nine months ended June 30, 2016 and June 30, 2017 was approximately $152,000 and $2.5 million, respectively.

We used  the  Black-Scholes  model  to  estimate  the  fair  value  of  options  granted.  The  expected  term of  options  granted  is  derived  from the  output  of  theoption pricing model and represents  the period of time that  options granted are expected to be outstanding.  Volatility  is  based on the historical  volatility  of ourcommon stock. The risk-free rate for periods within the contractual term of the options is based on the U.S. Treasury yield curve in effect at the time of grant.  11. EMPLOYEE STOCK PURCHASE PLAN:

During February 2012, our shareholders approved a proposal to amend our 2008 Employee Stock Purchase Plan (“Stock Purchase Plan”) to increase thenumber of shares available under that plan by 500,000 shares. The Stock Purchase Plan as amended provides for up to 1,000,000 shares of common stock to beavailable  for purchase by our regular  employees who have completed at  least  one year of  continuous service.  In addition,  there were 52,837 shares of  commonstock available under our 1998 Employee Stock Purchase Plan, which have been made available for issuance under our Stock Purchase Plan. The Stock PurchasePlan provides for implementation of up to 10 annual offerings beginning on the first day of October starting in 2008, with each offering terminating on September30 of the following year. Each annual offering may be divided into two six-month offerings. For each offering, the purchase price per share will be the lower of:(i) 85% of the closing price of the common stock on the first day of the offering or (ii) 85% of the closing price of the common stock on the last day of the offering.The purchase price is paid through periodic payroll deductions not to exceed 10% of the participant’s earnings during each offering period. However, no participantmay purchase more than $25,000 worth of common stock annually.

We used the Black-Scholes model to estimate the fair value of options granted to purchase shares issued pursuant to the Stock Purchase Plan. The expectedterm of options granted is derived from the output of the option pricing model and represents the period of time that options granted are expected to be outstanding.Volatility  is  based  on  the  historical  volatility  of  our  common  stock.  The  risk-free  rate  for  periods  within  the  contractual  term  of  the  options  is  based  on  theU.S. Treasury yield curve in effect at the time of grant.

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The following are the weighted average assumptions used for each respectiv e period:   Three Months Ended Nine Months Ended June 30, June 30,   2016 2017 2016 2017 Dividend yield   0.0%       0.0%       0.0%       0.0%  Risk-free interest rate   0.4%       0.9%       0.2%       0.7%  Volatility   56.0%       46.1%       51.4%       40.7%  Expected life Six months     Six months     Six months     Six months

 

 As of June 30, 2017, we had issued 793,348 shares of common stock under our Stock Purchase Plan.

12. RESTRICTED STOCK AWARDS:

We have granted non-vested (restricted) stock awards (“restricted stock”) and restricted stock units (“RSUs”) to employees and executive officers pursuantto the 2011 Plan and the 2007 Plan. The restricted stock awards and RSUs have varying vesting periods, but generally become fully vested between two and fouryears after the grant date, depending on the specific award, performance targets level of achievement for performance based awards granted to executive officers,and vesting period for time based awards. Executive officer performance based awards are granted at the target amount of shares that may be earned and the actualamount  of  the  award  earned  generally  could  range  from 0% to  200% of  the  target  number  of  shares  based  on the  actual  specified  performance  target  met.  Weaccounted for the restricted stock awards granted using the measurement and recognition provisions of ASC 718. Accordingly, the fair value of the restricted stockawards, including performance based awards, is measured on the grant date and recognized in earnings over the requisite service period for each separately vestingportion of the award.

The following table summarizes restricted stock award activity from September 30, 2016 through June 30, 2017: 

    Shares/ Units

WeightedAverage GrantDate Fair Value

Non-vested balance as of September 30, 2016     330,905    $ 16.07 Changes during the period               

Awards granted     358,342    $ 17.30 Awards vested     (14,119)   $ 19.24 Awards forfeited     (8,000)   $ 15.86 

Non-vested balance as of June 30, 2017     667,128    $ 16.60 

 As of  June 30,  2017,  we had approximately  $7.3 million of  total  unrecognized compensation cost,  assuming applicable  performance conditions are  met,

related to non-vested restricted stock awards. We expect to recognize that cost over a weighted average period of 2.4 years. 13. NET INCOME PER SHARE:

The following is a reconciliation of the shares used in the denominator for calculating basic and diluted net income per share:     Three Months Ended   Nine Months Ended     June 30,   June 30,     2016 2017   2016 2017 Weighted average common shares outstanding used in   calculating basic income per share     24,159,070      24,336,777    24,175,671      24,293,512 Effect of dilutive options and non-vested restricted stock   awards     611,910      758,621    581,845      751,534 Weighted average common and common equivalent shares   used in calculating diluted income per share     24,770,980      25,095,398    24,757,516      25,045,046

 

 For  the  three  months  ended  June  30,  2016  and  June  30,  2017,  there  were  1,425,385  and  7,418  weighted  average  shares  related  to  options  outstanding,

respectively, that were not included in the computation of diluted income per share because the options’ exercise prices were greater than the average market priceof our common stock, and therefore, would have an anti-dilutive effect. For the nine

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 months ended June 30, 2016 and June 30, 2017, there were 1,420,224 and 18,084 weighted average shares related to options outstanding, respectively, that werenot included in the computation of diluted incom e per share because the options’ exercise prices were greater than the average market price of our common stock,and therefore, would have an anti-dilutive effect. 14. COMMITMENTS AND CONTINGENCIES:

We are party to various legal actions arising in the ordinary course of business. While it is not feasible to determine the actual outcome of these actions as ofJune  30,  2017,  we  believe  that  these  matters  should  not  have  a  material  adverse  effect  on  our  unaudited  condensed  consolidated  financial  condition,  results  ofoperations, or cash flows.

 

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 ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Management’s Discussion and Analysis of Financial Condition and Results of Operations contains “forward-looking statements” within the meaning ofSection 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements includestatements  regarding  our  “expectations,”  “anticipations,”  “intentions,”  “beliefs,”  or  “strategies”  regarding  the  future.  These  forward-looking  statements  includestatements relating to market risks such as interest rate risk and foreign currency exchange rate risk; economic and industry conditions and corresponding effects onconsumer behavior and operating results; environmental conditions; inclement weather; certain specific and isolated events; our future estimates, assumptions andjudgments, including statements regarding whether such estimates, assumptions and judgments would have a material adverse effect on our operating results; theimpact of changes in accounting policy and standards; our plans to accelerate our growth through acquisitions and new store openings; our belief that our existingcapital  resources will  be sufficient to finance our operations for at least the next 12 months, except for possible significant acquisitions;  and the seasonality andcyclicality  of  our  business  and  the  effect  of  such  seasonality  and  cyclicality  on  our  business,  financial  results  and  inventory  levels.  Actual  results  could  differmaterially from those currently anticipated as a result of a number of factors, including those set forth under “Risk Factors” in our Annual Report on Form 10-K forthe fiscal year ended September 30, 2016.

General

We are the largest recreational boat and yacht retailer in the United States with fiscal 2016 revenue in excess of $940 million. Through our current 62 retaillocations  in  17  states,  we  sell  new and  used  recreational  boats  and  related  marine  products,  including  engines,  trailers,  parts,  and  accessories.  We  also  arrangerelated boat financing, insurance, and extended service contracts; provide boat repair and maintenance services; offer yacht and boat brokerage sales; and, whereavailable, offer slip and storage accommodations, as well as the charter of power and sailing yachts in the British Virgin Islands.

MarineMax  was  incorporated  in  January  1998  (and  reincorporated  in  Florida  in  March  2015).  We  commenced  operations  with  the  acquisition  of  fiveindependent recreational boat dealers on March 1, 1998. Since the initial acquisitions in March 1998, we have, as of the filing of this Quarterly Report on 10-Q,acquired 27 recreational boat dealers, two boat brokerage operations, and two full-service yacht repair facilities. As a part of our acquisition strategy, we frequentlyengage in discussions with various recreational boat dealers regarding their potential acquisition by us. Potential acquisition discussions frequently take place overa long period of time and involve difficult business integration and other issues, including, in some cases, management succession and related matters. As a resultof these and other factors, a number of potential acquisitions that from time to time appear likely to occur do not result in binding legal agreements and are notconsummated. We completed no acquisitions in fiscal 2015, three acquisitions in fiscal 2016, and one acquisition to date in fiscal 2017.

General economic conditions and consumer spending patterns can negatively impact our operating results. Unfavorable local, regional, national, or globaleconomic developments or uncertainties regarding future economic prospects could reduce consumer spending in the markets we serve and adversely affect  ourbusiness.  Economic conditions  in  areas  in  which we operate  dealerships,  particularly  Florida  in  which we generated  approximately  52%, 53%, and 55% of  ourrevenue during fiscal 2014, 2015, and 2016, respectively, can have a major impact on our operations. Local influences, such as corporate downsizing, military baseclosings, and inclement weather such as hurricanes and other storms, environmental conditions, and specific events, such as the BP oil spill in the Gulf of Mexicoin 2010, also could adversely affect, and in certain instances have adversely affected, our operations in certain markets.

In an economic downturn, consumer discretionary spending levels generally decline, at times resulting in disproportionately large reductions in the sale ofluxury goods. Consumer spending on luxury goods also may decline as a result of lower consumer confidence levels, even if prevailing economic conditions arefavorable.  As  a  result,  an  economic  downturn  could  impact  us  more  than  certain  of  our  competitors  due  to  our  strategic  focus  on  a  higher  end  of  our  market.Although we have expanded our operations during periods of stagnant or modestly declining industry trends, the cyclical nature of the recreational boating industryor the lack of industry growth may adversely affect our business, financial condition, and results of operations. Any period of adverse economic conditions or lowconsumer confidence is likely to have a negative effect on our business.

Lower consumer spending resulting from a downturn in the housing market and other economic factors adversely affected our business in fiscal 2007, andcontinued weakness in consumer spending and depressed economic conditions had a substantial negative effect on our business and industry for several years afterfiscal  2007.  These  conditions  caused  us  to  substantially  reduce  our  acquisition  program,  delay  new  store  openings,  reduce  our  inventory  purchases,  engage  ininventory reduction efforts,  close a  number of  our  retail  locations,  reduce our headcount,  and amend and replace our credit  facility.  Acquisitions and new storeopenings remain important strategies to our company, and we plan to accelerate our growth through these strategies as economic conditions continue to improve.However, we cannot predict the length of unfavorable economic or industry conditions or the extent to which they will

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continue to adversely affect our operating results nor can we predict the effectiveness of the measures we have taken to address this environment.

Although  economic  conditions  have  adversely  affected  our  operating  results,  we  believe  we  have  capitalized  on  our  core  strengths  to  substantiallyoutperform the industry, resulting in market share gains. Our ability to capture such market share supports the alignment of our retailing strategies with the desiresof consumers. We believe the steps we have taken to address weak market conditions have yielded, and will yield in the future, an increase in revenue. If generaleconomic trends continue to improve, we expect our core strengths and retailing strategies will position us to capitalize on growth opportunities as they occur andwill allow us to emerge from the current economic environment with greater earnings potential.

Application of Critical Accounting Policies

We have identified the policies below as critical to our business operations and the understanding of our results of operations. The impact and risks relatedto  these  policies  on  our  business  operations  are  discussed  throughout  Management's  Discussion  and Analysis  of  Financial  Condition  and Results  of  Operationswhen such policies affect our reported and expected financial results.

In the ordinary course of business, we make a number of estimates and assumptions relating to the reporting of results of operations and financial conditionin the preparation of our financial statements in conformity with accounting principles generally accepted in the United States. We base our estimates on historicalexperiences and on various other assumptions (including future earnings) that we believe are reasonable under the circumstances. The results of these assumptionsform the basis for making judgments about the carrying values of assets and liabilities, including contingent assets and liabilities such as contingent considerationliabilities  from  acquisitions,  which  are  not  readily  apparent  from  other  sources.  Actual  results  could  differ  significantly  from  those  estimates  under  differentassumptions and conditions. We believe that the following discussion addresses our most critical accounting policies, which are those that are most important to theportrayal of our financial condition and results of operations and require our most difficult, subjective, and complex judgments, often as a result of the need to makeestimates about the effect of matters that are inherently uncertain.

Revenue Recognition

We recognize  revenue  from boat,  motor,  and  trailer  sales  and  parts  and  service  operations  at  the  time  the  boat,  motor,  trailer,  or  part  is  delivered  to  oraccepted by the customer or the service is completed. We recognize deferred revenue from service operations and slip and storage services on a straight-line basisover the term of the contract or when service is completed. We recognize commissions earned from a brokerage sale at the time the related brokerage transactioncloses.  We recognize commissions earned by us for placing notes with financial  institutions in connection with customer boat financing when we recognize therelated boat sales. We recognize marketing fees earned on credit, life, accident, disability, gap, and hull insurance products sold by third-party insurance companiesat the later of customer acceptance of the insurance product as evidenced by contract execution or when the related boat sale is recognized. We recognize incomefrom the  rentals  of  chartering  power  and  sailing  yachts  on  a  straight-line  basis  over  the  term  of  the  contract  or  when  service  is  completed.  We  also  recognizecommissions earned on extended warranty service contracts sold on behalf of third-party insurance companies at the later of customer acceptance of the servicecontract terms as evidenced by contract execution or recognition of the related boat sale.

Certain finance and extended warranty commissions and marketing fees on insurance products may be charged back if a customer terminates or defaults onthe underlying contract within a specified period of time. Based upon our experience of terminations and defaults, we maintain a chargeback allowance that was notmaterial to our financial statements taken as a whole as of June 30, 2017. Should results differ materially from our historical experiences, we would need to modifyour estimate of future chargebacks, which could have a material adverse effect on our operating margins. We do not believe there is a reasonable likelihood thatthere will be a change in the future estimates or assumptions we use to calculate our estimate of future chargebacks which would result in a material effect on ouroperating results.

Vendor Consideration Received

We account  for  consideration  received  from our  vendors  in  accordance  with  FASB Accounting  Standards  Codification  605-50,  “Revenue  Recognition  -Customer  Payments  and  Incentives”  (“ASC  605-50”).  ASC  605-50  requires  us  to  classify  interest  assistance  received  from  manufacturers  as  a  reduction  ofinventory  cost  and  related  cost  of  sales  as  opposed  to  netting  the  assistance  against  our  interest  expense  incurred  with  our  lenders.  Pursuant  to  ASC  605-50,amounts received by us under our co-op assistance programs from our manufacturers are netted against related advertising expenses. Our consideration receivedfrom our vendors contains uncertainties because the calculation requires management to make assumptions and to apply judgment regarding a number of factors,including our ability to collect amounts due from vendors and the ability to meet certain criteria stipulated by our vendors. We do not

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believe there is a reasonable like  lihood that  there  will  be a  change in the future  estimates  or  assumptions we use to calculate  our  vendor considerations  whichwould result in a material effect on our operating results.

Inventories

Inventory  costs  consist  of  the  amount  paid  to  acquire  inventory,  net  of  vendor  consideration  and  purchase  discounts,  the  cost  of  equipment  added,reconditioning costs,  and transportation costs relating to acquiring inventory for sale.  We state new and used boat,  motor,  and trailer  inventories at  the lower ofcost, determined on a specific-identification basis, or net realizable value. We state parts and accessories at the lower of cost, determined on an average cost basis,or net realizable value. We utilize our historical experience, the aging of the inventories, and our consideration of current market trends as the basis for determininga  lower  of  cost  or  net  realizable  value  valuation  allowance.  Our  lower  of  cost  or  net  realizable  value  valuation  allowance  contains  uncertainties  because  thecalculation requires management to make assumptions and to apply judgment regarding the amount at which the inventory will ultimately be sold which considersforecasted market trends, model changes, and new product introductions. We do not believe there is a reasonable likelihood that there will be a change in the futureestimates or assumptions we use to calculate our lower of cost or net realizable value valuation allowance which would result in a material effect on our operatingresults.  As  of  September  30,  2016  and  June  30,  2017,  our  lower  of  cost  or  net  realizable  value  valuation  allowance  for  new and  used  boat,  motor,  and  trailerinventories was $1.0 million and $1.3 million, respectively. If events occur and market conditions change, causing the fair value to fall below carrying value, thelower of cost or net realizable value valuation allowance could increase.

Goodwill

We  account  for  goodwill  in  accordance  with  FASB  Accounting  Standards  Codification  350,  “Intangibles  -  Goodwill  and  Other”  (“ASC  350”),  whichprovides  that  the  excess  of  cost  over  net  assets  of  businesses  acquired  is  recorded  as  goodwill.  In  January  2017,  we  purchased  Hall  Marine  Group,  a  privatelyowned boat  dealer  in  the  Southeast  United  States  with  locations  in  North  Carolina,  South  Carolina,  and  Georgia,  resulting  in  the  recording  of  $16.0  million  ingoodwill. In total, current and previous acquisitions have resulted in the recording of $25.9 million in goodwill. In accordance with ASC 350, we review goodwillfor impairment at least annually and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Our annual impairmenttest is performed during the fourth fiscal quarter. If the carrying amount of goodwill exceeds its fair value we would recognize an impairment loss in accordancewith ASC 350. As of June 30, 2017, and based upon our most recent analysis, we determined through our qualitative assessment that it is not “more likely than not”that the fair values of our reporting units are less than their carrying values. As a result, we were not required to perform the two-step goodwill impairment test. Thequalitative  assessment  requires  us  to  make  judgments  and  assumptions  regarding  macroeconomic  and industry  conditions,  our  financial  performance,  and otherfactors. We do not believe there is a reasonable likelihood that there will be a change in the judgments and assumptions used in our qualitative assessment whichwould result in a material effect on our operating results.

Impairment of Long-Lived Assets

FASB Accounting  Standards  Codification  360-10-40,  “Property,  Plant,  and  Equipment  -  Impairment  or  Disposal  of  Long-Lived  Assets”  (“ASC 360-10-40”),  requires  that  long-lived  assets,  such  as  property  and  equipment  and  purchased  intangibles  subject  to  amortization,  be  reviewed  for  impairment  wheneverevents or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of the asset is measured by comparison ofits  carrying  amount  to  undiscounted  future  net  cash  flows  the  asset  is  expected  to  generate.  If  such  assets  are  considered  to  be  impaired,  the  impairment  to  berecognized is measured as the amount by which the carrying amount of the asset exceeds its fair market value. Estimates of expected future cash flows representour  best  estimate  based  on  currently  available  information  and  reasonable  and  supportable  assumptions.  Our  impairment  loss  calculations  contain  uncertaintiesbecause they require us to make assumptions and to apply judgment in order to estimate expected future cash flows. Any impairment recognized in accordance withASC 360-10-40 is permanent and may not be restored. The analysis is performed at a regional level for indicators of permanent impairment given the geographicalinterdependencies  among our  locations.  Based  upon our  most  recent  analysis,  which  excludes  fixed  assets  classified  as  held  for  sale  which are  recorded  at  fairvalue, we believe no impairment of long-lived assets existed as of June 30, 2017. We do not believe there is a reasonable likelihood that there will be a change inthe future estimates or assumptions used to test for recoverability which would result in a material effect on our operating results.

Stock-Based Compensation

We account for our stock-based compensation plans following the provisions of FASB Accounting Standards Codification 718, “Compensation — StockCompensation”  (“ASC  718”).  In  accordance  with  ASC  718,  we  use  the  Black-Scholes  valuation  model  for  valuing  all  stock-based  compensation  and  sharespurchased under our Employee Stock Purchase Plan. We measure compensation for restricted stock awards and restricted stock units at fair value on the grant datebased on the number of shares expected to vest and the quoted market price of our common stock. We recognize compensation cost for all awards in operations, netof estimated forfeitures,

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on a straight-line basis over the requisite service period for each separately vesting portion of the award. Our valuation models and generally accepted valuationtechniques require us to make assumptions and to apply judgment to determine the fair value of our awards. These assumptions and judgments include estimatingthe  volatility  of  our  stock  price,  expected  dividend  yield,  employee  turnover  rates  and  employee  stock  option  exercise  behaviors.  We do  not  believe  there  is  areasonable likelihood that there will be a change in the future estimates or assumptions we use to calculate our stock-based compensation which would result in amaterial effect on our operating results .

Income Taxes

We  account  for  income  taxes  in  accordance  with  FASB  Accounting  Standards  Codification  740,  “Income  Taxes”  (“ASC  740”).  Under  ASC  740,  werecognize deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statement carrying amountsof existing assets and liabilities and their respective tax bases. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxableincome in the years in which we expect those temporary differences to be recovered or settled.  We record valuation allowances to reduce our deferred tax assets tothe amount expected to be realized by considering all available positive and negative evidence.

Pursuant  to  ASC 740,  we  must  consider  all  positive  and  negative  evidence  regarding  the  realization  of  deferred  tax  assets.    ASC 740  provides  for  fourpossible sources of taxable income to realize deferred tax assets: 1) taxable income in prior carryback years, 2) reversals of existing deferred tax liabilities, 3) taxplanning  strategies  and  4)  projected  future  taxable  income.    As  of  September  30,  2016,  we  have  no  available  taxable  income  in  prior  carryback  years,  limitedreversals  of existing deferred tax liabilities  or prudent and feasible tax planning strategies.    Therefore,  the recoverability  of our deferred tax assets is  dependentupon generating future taxable income.

The determination of releasing valuation allowances against deferred tax assets is made, in part, pursuant to our assessment as to whether it is more likelythan not that we will generate sufficient future taxable income against which benefits of the deferred tax assets may or may not be realized. Significant judgment isrequired in making estimates regarding our ability to generate income in future periods.

In the fourth quarter of fiscal 2016, we reached the conclusion that it was appropriate to release the majority of our valuation allowance against our state netoperating loss deferred tax assets due to our operating performance in fiscal 2016 being greater than projected at fiscal 2015 year end. We considered forecasts offuture operating results and the utilization of net operating losses within the statutory mandated carryforward periods and determined it was more likely than notthat the majority of our state net operating loss deferred tax assets would be realized.    As a result  of the release of a portion of our deferred tax asset valuationallowance, we recorded approximately $1.1 million reduction in our income tax provision.  A portion of the valuation allowance was retained based on particularjurisdictions.  Specifically, the valuation allowance was retained for states with shorter statutory carryforward periods and states where our economic presence, asdefined by the jurisdiction’s tax laws, has been reduced.

The application of income tax law is inherently complex.  Laws and regulations in this area are voluminous and are often ambiguous. Under ASC 740, theimpact of uncertain tax positions taken or expected to be taken on an income tax return must be recognized in the financial statements at the largest amount that ismore likely than not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized in the financial statementsunless it is more likely than not of being sustained. As such, we are required to make subjective assumptions and judgments regarding our effective tax rate and ourincome tax exposure. Our effective income tax rate is affected by changes in tax law in the jurisdictions in which we currently operate, tax jurisdictions of newretail locations, our earnings, and the results of tax audits. We believe that the judgments and estimates discussed herein are reasonable.

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Recent Accounting Pronounceme nts

In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”),  aconverged standard on revenue recognition. The new pronouncement requires revenue recognition to depict the transfer of promised goods or services to customersin  an  amount  that  reflects  the  consideration  to  which  the  entity  expects  to  be  entitled  in  exchange  for  those  goods  or  services.  The  guidance  also  specifies  theaccounting  for  some  costs  to  obtain  or  fulfill  a  contract  with  a  customer,  as  well  as  enhanced  disclosure  requirements.  ASU  2014-09  is  effective  for  annualreporting  periods  beginning  after  December  15,  2017,  including  interim  reporting  periods  within  that  reporting  period.  Early  adoption  is  permitted  for  annualreporting periods beginning after December 15, 2016. While we are continuing to evaluate the impact the adoption of ASU 2014-09 will have on our unauditedcondensed consolidated  financial  statements,  we currently  do not  believe  the  adoption of  this  standard  will  have a  material  impact  on our  unaudited condensedconsolidated  financial  statements,  or  will  cause  a  significant  change  to  our  current  accounting  policies  or  internal  controls  over  financial  reporting  for  revenuerecognition  on  boat,  motor,  and  trailer  sales,  parts  and  service  operations,  brokerage  commissions,  slip  and  storage  services,  charter  rentals,  and  fee  incomegenerated from finance and insurance products.

In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330)” (“ASU 2015-11”). The pronouncement was issued to simplify the measurementof inventory and change the measurement from lower of cost or market to lower of cost and net realizable value.  This pronouncement is effective for reportingperiods beginning after December 15, 2016. We elected to early adopt the new guidance in the first quarter of fiscal 2017. The adoption of ASU 2015-11 did nothave an impact on the Company’s unaudited condensed consolidated financial position, results of operations, or internal controls.

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). This update requires organizations to recognize lease assets andlease  liabilities  on  the  balance  sheet  and  also  disclose  key  information  about  leasing  arrangements.    ASU  2016-02  is  effective  for  annual  reporting  periodsbeginning on or after December 15, 2018, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of aninterim  or  annual  period.  While  we  are  continuing  to  evaluate  the  impact  of  the  adoption  of  ASU 2016-02  on  our  unaudited  condensed  consolidated  financialstatements, we believe the adoption of ASU 2016-02 may have a significant and material impact to our unaudited condensed consolidated balance sheet given ourcurrent  lease  agreements  for  our  leased retail  locations.  We are  currently  evaluating the impact  the adoption of  ASU 2016-02 will  have on our  other  unauditedcondensed consolidated financial statements. Based on a preliminary assessment, we expect that most of our operating lease commitments will be subject to thenew  guidance  and  recognized  as  operating  lease  liabilities  and  right-of-use  assets  upon  adoption,  resulting  in  a  material  increase  in  the  assets  and  liabilitiesrecorded on our unaudited condensed consolidated balance sheet. We are continuing our assessment, which may identify additional impacts this standard will haveon our unaudited condensed consolidated financial statements and related disclosures and internal controls over financial reporting.

In March 2016, the FASB issued ASU 2016-09, “Compensation – Stock Compensation (Topic 718)” (“ASU 2016-09”).  This update was issued as part ofthe FASB’s simplification initiative and affects all entities that issue share-based payment awards to their employees. The amendments in this update cover suchareas as the recognition of excess tax benefits and deficiencies, the classification of those excess tax benefits on the statement of cash flows, an accounting policyelection for forfeitures, the amount an employer can withhold to cover income taxes and still qualify for equity classification and the classification of those taxespaid on the statement of cash flows. This update is effective for annual and interim periods beginning after December 15, 2016. We elected to early adopt the newguidance in the fourth quarter of fiscal 2016 which required us to reflect any adjustments as of October 1, 2015, the beginning of the annual period that includes theinterim period of adoption. The primary effect of adoption was the recognition of excess tax benefits in our provision for income taxes rather than additional paid-in capital  for all  periods in fiscal 2016. This early adoption resulted in an approximately $5.2 million increase in deferred tax assets and retained earnings as ofOctober  1,  2015,  the  beginning  of  fiscal  2016.  The  adoption  in  the  fourth  quarter  of  fiscal  2016 of  ASU 2016-09  resulted  in  additional  income tax  expense  of$242,000 for the three months ended June 30, 2016 and an additional income tax expense of $376,000 for the nine months ended June 30, 2016 from the previouslyreported income tax provisions in the unaudited condensed consolidated statements of operations for the third quarter and nine months ended June 30, 2016 .

In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment (Topic 350)” (“ASU 2017-04”).  This update removes therequirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. As a result, under ASU 2017-04, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and shouldrecognize an impairment  charge for  the amount by which the carrying amount exceeds the reporting unit’s  fair  value;  however,  the impairment  loss recognizedshould not exceed the total amount of goodwill allocated to that reporting unit. This guidance is effective prospectively for fiscal years beginning after December15,  2019.  Early  adoption  is  permitted  for  interim  or  annual  goodwill  impairment  tests  performed  after  January  1,  2017.    The  adoption  of  ASU 2017-04  is  notexpected to have a significant impact on the Company’s unaudited condensed consolidated financial position, results of operations, or internal controls.

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Consolidated Results of Operations

The following discussion compares the three and nine months ended June 30, 2017, with the three and nine months ended June 30, 2017 and should be readin conjunction with the unaudited condensed consolidated financial statements, including the related notes thereto, appearing elsewhere in this report.

Three Months Ended June 30, 2017 Compared with Three Months Ended June 30, 2016

Revenue.   Revenue decreased $15.8 million, or 4.6%, to $329.8 million for the three months ended June 30, 2017, from $345.6 million for the three monthsended June 30, 2016. Of this decrease, $34.6 million was attributable to a 10.0% decrease in comparable-store sales, which was partially offset by an approximate$18.8 million increase related primarily to stores acquired that were not eligible for inclusion in the comparable-store base.  The decrease in our comparable-storerevenue was due primarily to decreases in large boat and yacht sales.

Gross Profit.    Gross profit increased $5.9 million, or 7.5%, to $84.8 million for the three months ended June 30, 2017, from $78.9 million for the threemonths ended June 30, 2016. Gross profit as a percentage of revenue increased to 25.7% for the three months ended June 30, 2017 from 22.8% for the three monthsended June 30, 2016. The increase in gross profit as a percentage of revenue was primarily the result of improved margins on new and used boat sales. The increasein gross profit dollars was primarily attributable to the increase in our gross margins. Additionally, our higher margin brokerage, finance and insurance products,service,  parts  and  accessories  products,  storage,  and  charter  services  increased  as  a  percentage  of  revenue,  contributing  to  our  overall  margins  increasingaccordingly.

Selling, General, and Administrative Expenses. Selling, general, and administrative expense increased $5.2 million, or 9.6%, to $59.6 million for the threemonths ended June 30, 2017, from $54.3 million for the three months ended June 30, 2016. Selling, general, and administrative expenses as a percentage of revenueincreased to 18.1% for the three months ended June 30, 2017 from 15.7% for the three months June 30, 2016. The increase in selling, general, and administrativeexpenses was primarily attributable to recent acquisitions.

Interest Expense.   Interest expense increased $424,000, or 28.8%, to $1.9 million for the three months ended June 30, 2017 from $1.5 million for the threemonths ended June 30,  2016.  Interest  expense as  a  percentage of  revenue increased to 0.6% for  the three months ended June 30,  2017 from 0.4% for  the threemonths ended June 30, 2016. The increase in interest expense was primarily the result of increased borrowings.

Income Taxes.    Income tax expense decreased to $9.1 million for the three months ended June 30, 2017   from $9.3 million for the three months ended June30, 2016. Our effective income tax rate was 39.0% for the three months ended June 30, 2017. The adoption in the fourth quarter of fiscal 2016 of ASU 2016-09resulted in an increase in income tax expense of $29,000 for the three months ended June 30, 2017 and $242,000 for the three months ended June 30, 2016. As aresult of the adoption of ASU 2016-09 the effective income tax rate for the three months ended June 30, 2016 increased to 40.2%.

Nine Months Ended June 30, 2017 Compared with Nine Months Ended June 30, 2016

Revenue.   Revenue increased $87.0 million, or 12.2%, to $801.7 million for the nine months ended June 30, 2017, from $714.7 million for the nine monthsended June 30, 2016. Of this increase, $39.0 million was attributable to a 5.5% increase in comparable-store sales and an approximate $48.0 million net increaserelated primarily to stores acquired, opened, or closed that were not eligible for inclusion in the comparable-store base.  The increase in our comparable-store saleswas  primarily  due  to  incremental  increases  in  new  and  used  boat  sales.    We  believe  that  improving  industry  conditions  resulting  from  improved  economicconditions contributed to our comparable-store sales growth.

Gross Profit.   Gross profit increased $29.4 million, or 17.4%, to $199.0 million for the nine months ended June 30, 2017, from $169.5 million for the ninemonths ended June 30, 2016. Gross profit as a percentage of revenue increased to 24.8% for the nine months ended June 30, 2017 from 23.7% for the nine monthsended June 30, 2016. The increase in gross profit as a percentage of revenue was primarily the result of improved margins on new and used boat sales. The increasein gross profit dollars was primarily attributable to the increase in comparable-store sales and improved margins.

Selling, General, and Administrative Expenses. Selling, general, and administrative expenses increased $24.7 million, or 18.1%, to $161.4 million for thenine months ended June 30, 2017, from $136.7 million for the nine months ended June 30, 2016. Selling, general, and administrative expenses as a percentage ofrevenue increased to 20.1% for the nine months ended June 30, 2017, from 19.1% for the nine months ended June 30, 2016.  The increase in selling, general, andadministrative expenses was primarily attributable to recent acquisitions and increased business .  

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Interest Expense.   Interest expense increased $1.2 million, or 28.7%, to $5.5 million for the nine months ended June 30, 2017 from $4.3 million for the ninemonths ended June 30, 2016.   Interest expense as a percentage of revenu e increased to 0.7% for the nine months ended June 30, 2017 from 0.6% for the ninemonths ended June 30, 2016 .  The increase in interest expense was primarily a result of increased borrowings.

Income Taxes.    Income tax expense increased to $12.4 million for the nine months ended June 30, 2017 from $11.5 million for the nine months ended June30, 2016. Our effective income tax rate was 38.7% for the nine months ended June 30, 2017. The adoption in the fourth quarter of fiscal 2016 of ASU 2016-09resulted in an income tax benefit  of $22,000 for the nine months ended June 30, 2017, and an increase in income tax expense of $376,000 for the nine monthsended June 30, 2016.  As a result of the adoption of ASU 2016-09 the effective income tax rate for the nine months ended June 30, 2016 increased to 40.4%.

Liquidity and Capital Resources

Our cash needs are primarily for working capital to support operations, including new and used boat and related parts inventories, off-season liquidity, andgrowth  through  acquisitions  and  new  store  openings.  Acquisitions  and  new  store  openings  remain  important  strategies  to  our  company,  and  we  have  recentlycompleted  certain  acquisitions,  and  we  plan  to  accelerate  our  growth  through  these  strategies.  However,  we  cannot  predict  the  length  of  economic  or  financialconditions.  We  regularly  monitor  the  aging  of  our  inventories  and  current  market  trends  to  evaluate  our  current  and  future  inventory  needs.  We  also  use  thisevaluation  in  conjunction  with  our  review  of  our  current  and  expected  operating  performance  and  expected  business  levels  to  determine  the  adequacy  of  ourfinancing needs.

These cash needs have historically been financed with cash generated from operations and borrowings under the Amended Credit Facility.  Our ability toutilize  the  Amended  Credit  Facility  to  fund  operations  depends  upon  the  collateral  levels  and  compliance  with  the  covenants  of  the  Amended  Credit  Facility.Turmoil in the credit markets and weakness in the retail markets may interfere with our ability to remain in compliance with the covenants of the Amended CreditFacility and therefore our ability to utilize the Amended Credit Facility to fund operations. As of June 30, 2017, we were in compliance with all covenants underthe Amended Credit Facility. We currently depend upon dividends and other payments from our dealerships and the Amended Credit Facility to fund our currentoperations  and meet  our  cash needs.  As 100% owner of  each of  our  dealerships,  we determine the amounts of  such distributions subject  to  applicable  law, andcurrently, no agreements exist that restrict this flow of funds from our dealerships.

For the nine months ended June 30, 2017 cash used in operating activities was approximately $5.7 million, and for the nine months ended June 30, 2016,cash provided by operating activities was approximately $24.0 million.   For the nine months ended June 30, 2017, cash used in operating activities was primarilyrelated  to  an  increase  of  inventory  driven  by  timing  of  boats  received,  increases  in  accounts  receivable,  and  decreases  in  customer  deposits,  partially  offset  byseasonal  increases  in  accounts  payable  and  accrued  expenses,  as  well  as our  net  income  adjusted  for  non-cash  expenses  such  as  depreciation  and  amortizationexpense, deferred income tax provision, and stock-based compensation expense . For the nine months ended June 30, 2016, cash provided by operating activitieswas primarily related to our net income adjusted for non-cash expenses such as depreciation and amortization expenses, deferred income tax provision, stock basedcompensation expenses,  seasonal  increases  in accounts  payable,  increases  in  customer deposits,  and accrued expenses,  partially  offset  by increases  in inventorydriven by timing of boats received and growth in the business, and increases in accounts receivable as a result of our relatively successful sales efforts at the end ofthe quarter ended June 30, 2016.

For the nine months ended June 30, 2017 and 2016, cash used in investing activities was approximately $30.1 million and $25.4 million, respectively. Forthe nine months ended June 30, 2017 and 2016, cash used in investing activities was primarily used to purchase inventory and property and equipment associatedwith business acquisitions and property and equipment associated with improving existing retail facilities .

For the nine months ended June 30, 2017 and 2016, cash provided by financing activities was approximately $56.2 million and $24.3 million, respectively,and was primarily attributable to net short-term borrowings as a result  of increased inventory levels and proceeds from the issuance of common stock from ourstock based compensation plans, partially offset by the repurchase of common stock under the share repurchase program.

In  May  2017,  we  amended  and  restated  our  Inventory  Financing  Agreement  (the  “Amended  Credit  Facility”),  originally  entered  into  in  June  2010,  assubsequently  amended,  with  Wells  Fargo  Commercial  Distribution  Finance  LLC (formerly  GE  Commercial  Distribution  Finance  Corporation).  The  May  2017amendment and restatement extended the maturity date of the Credit Facility to October 2020, and the Amended Credit Facility includes two additional one-yearextension  periods,  with  lender  approval.  The  May  2017  amendment  and  restatement,  among  other  things,  modified  the  amount  of  borrowing  availability  andmaturity  date  of  the  Credit  Facility.  The  Amended  Credit  Facility  provides  a  floor  plan  financing  commitment  of  up  to  $350.0  million,  an  increase  from  theprevious limit of $300 million, subject to borrowing base availability resulting from the amount and aging of our inventory.

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The Amended Credit Facility has certain financial covenants as specified in the agreement. The covenants include provisions that our leverage ratio mustnot exceed 2.75 to 1.0 and that our current ratio must be greater than 1.2 to 1.0. The interest rate for amounts outstanding under the Amended Credit Facility is 345basis points above the one-month LIBOR. There is an unused line f ee of ten basis points on the unused portion of the Amended Credit Facility .

Advances under the Amended Credit Facility are initiated by the acquisition of eligible new and used inventory or are re-advances against eligible new andused inventory that have been partially paid-off. Advances on new inventory will generally mature 1,080 days from the original invoice date. Advances on usedinventory will mature 361 days from the date we acquire the used inventory. Each advance is subject to a curtailment schedule, which requires that we pay downthe  balance  of  each  advance  on  a  periodic  basis  starting  after  six  months.  The  curtailment  schedule  varies  based  on  the  type  and  value  of  the  inventory.  Thecollateral for the Amended Credit Facility is all of our personal property with certain limited exceptions. None of our real estate has been pledged for collateral forthe Amended Credit Facility.

As of June 30, 2017, our indebtedness associated with financing our inventory and working capital needs totaled approximately $241.6 million. As of June30, 2016 and June 30, 2017, the interest rate on the outstanding short-term borrowings was approximately 3.9% and 4.5%, respectively. As of June 30, 2017, ouradditional available borrowings under our Amended Credit Facility were approximately $49.4 million based upon the outstanding borrowing base availability. Theaging of our inventory limits our borrowing capacity as defined curtailments reduce the allowable advance rate as our inventory ages.

Except  as  specified  in  this  "Management's  Discussion  and  Analysis  of  Financial  Condition  and  Results  of  Operations"  and  in  the  attached  unauditedcondensed consolidated financial statements, we have no material commitments for capital for the next 12 months. We believe that our existing capital resourceswill be sufficient to finance our operations for at least the next 12 months, except for possible significant acquisitions.

Impact of Seasonality and Weather on Operations

Our  business,  as  well  as  the  entire  recreational  boating  industry,  is  highly  seasonal,  with  seasonality  varying  in  different  geographic  markets.  With  theexception  of  Florida,  we generally  realize  significantly  lower  sales  and higher  levels  of  inventories,  and related  short-term borrowings,  in  the  quarterly  periodsending December 31 and March 31. The onset of the public boat and recreation shows in January generally stimulates boat sales and typically allows us to reduceour inventory levels and related short-term borrowings throughout the remainder of the fiscal year. Our business could become substantially more seasonal if weacquire dealers that operate in colder regions of the United States or close retail locations in warm climates.

Our business is also subject to weather patterns, which may adversely affect our results of operations. For example, prolonged or severe winter conditions,drought conditions (or merely reduced rainfall  levels) or excessive rain, may limit access to area boating locations or render boating dangerous or inconvenient,thereby curtailing customer demand for our products and services. In addition, unseasonably cool weather and prolonged or severe winter conditions may lead to ashorter selling season in certain locations. Hurricanes and other storms could result in disruptions of our operations or damage to our boat inventories and facilities,as has been the case when Florida and other markets were affected by hurricanes. Although our geographic diversity is likely to reduce the overall impact to us ofadverse  weather  conditions  in  any  one  market  area,  these  conditions  will  continue  to  represent  potential,  material  adverse  risks  to  us  and  our  future  financialperformance.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rate Risk

As of June 30, 2017, all of our short-term debt bore interest at a variable rate, tied to LIBOR as a reference rate. Changes in the underlying LIBOR interestrate on our short-term debt could affect our earnings. For example, a hypothetical 100 basis point increase in the interest rate on our short-term debt would result inan increase of approximately $2.4 million in annual pre-tax interest expense. This estimated increase is based upon the outstanding balance of our short-term debtas of June 30, 2017 and assumes no mitigating changes by us to reduce the outstanding balances and no additional interest assistance that could be received fromvendors due to the interest rate increase.

Foreign Currency Exchange Rate Risk

Products purchased from European-based and Chinese-based manufacturers are transacted in U.S. dollars. Fluctuations in the U.S. dollar exchange rate mayimpact the retail price at which we can sell foreign products. Accordingly, fluctuations in the value of other currencies compared with the U.S. dollar may impactthe price points at which we can profitably sell such foreign products, and such price points may not be competitive with other products in the United States. Thus,such fluctuations in exchange rates ultimately

 23

 

may impact the amount of revenue, cost of goods sold, cas h flows, and earnings we recognize for such foreign products. We cannot predict the effects of exchangerate fluctuations on our operating results. In certain cases, we may enter into foreign currency cash flow hedges to reduce the variability of cash flow s associatedwith forecasted purchases of boats and yachts from European-based and Chinese-based manufacturers. We are not currently engaged in foreign currency exchangehedging  transactions  to  manage  our  foreign  currency  exposure.  If  and  when  we  do  engage  in  foreign  currency  exchange  hedging  transactions,  there  can  be  noassurance that our strategies will adequately protect our operating results from the effects of exchange rate fluctuations.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that material information required to be disclosed by us in Securities ExchangeAct reports is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, andthat such information is accumulated and communicated to our management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, toallow timely decisions regarding required disclosure.

Our  Chief  Executive  Officer  and  Chief  Financial  Officer  have  evaluated  the  effectiveness  of  the  design  and  operation  of  our  disclosure  controls  andprocedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this report. Based onsuch evaluation, such officers have concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective at thereasonable assurance level.

Changes in Internal Controls

During the quarter ended June 30, 2017, there were no changes in our internal controls over financial reporting that materially affected, or were reasonablylikely to materially affect, our internal control over financial reporting.

Limitations on the Effectiveness of Controls

Our  management,  including  our  Chief  Executive  Officer  and  Chief  Financial  Officer,  does  not  expect  that  our  disclosure  controls  and  procedures  andinternal  controls  over  financial  reporting  will  prevent  all  errors  and  all  fraud.  A control  system,  no  matter  how well  conceived  and  operated,  can  provide  onlyreasonable,  not  absolute,  assurance that  the  objectives  of  the  control  system are  met.  Further,  the  design of  a  control  system must  reflect  the fact  that  there  areresource constraints, and the benefits of controls must be considered relative to their costs. Although our disclosure controls and procedures are designed to providereasonable  assurance  of  achieving  their  objectives,  because  of  the  inherent  limitations  in  all  control  systems,  no  evaluation  of  controls  can  provide  absoluteassurance  that  all  control  issues  and  instances  of  fraud,  if  any,  within  the  company  have  been  detected.  These  inherent  limitations  include  the  realities  thatjudgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by theindividual acts of some persons, by collusion of two or more people, or by management override of the control. The design of any system of controls also is basedin part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals underall  potential  future  conditions;  over  time,  a  control  may become inadequate  because  of  changes  in  conditions,  or  the  degree  of  compliance  with  the  policies  orprocedures  may  deteriorate.  Because  of  the  inherent  limitations  in  a  cost-effective  control  system,  misstatements  due  to  error  or  fraud  may  occur  and  not  bedetected.

CEO and CFO Certifications

Exhibits  31.1  and  31.2  are  the  Certifications  of  the  Chief  Executive  Officer  and Chief  Financial  Officer,  respectively.  The Certifications  are  required  inaccordance with Section 302 of the Sarbanes-Oxley Act of 2002 (the “Section 302 Certifications”). This Item of this report, which you are currently reading is theinformation  concerning  the  Evaluation  referred  to  in  the  Section  302  Certifications  and  this  information  should  be  read  in  conjunction  with  the  Section  302Certifications for a more complete understanding of the topics presented .  

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 PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are party to various legal actions arising in the ordinary course of business.  While it is not feasible to determine the actual outcome of these actions asof June 30, 2017, we do not believe that these matters will have a material adverse effect on our unaudited condensed consolidated financial condition, result ofoperations, or cash flows.  

ITEM 1A. RISK FACTORS

Not applicable.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table presents information with respect to our repurchase of our common stock during the three months ended June 30, 2017. 

Period  

Total Numberof Shares Purchased

(1) Average Price Paid

per share

Total Number of SharesPurchased as Part ofPublicly AnnouncedPlans or Programs

Maximum Number ofShares that may

be Purchased Under thePlans or Programs

April 1, 2017 - April 31, 2017     300    $ 19.98      300      973,245 May 1, 2017- May 31, 2017     122,166    $ 18.66      122,166      851,079 June 1, 2017 - June 30, 2017     16,254      17.95      16,254      834,825 

Total     138,720    $ 18.58      138,720      834,825 

(1) Purchases were made pursuant  to  the share repurchase  program announced by the Company on February 22,  2016.  Under the terms of  the program, theCompany  is  authorized  to  purchase  up  to  1.25  million  shares  of  its  common  stock  until  February  28,  2018  and  834,825  shares  are  still  available  to  bepurchased under this share repurchase program.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

Not applicable.

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ITEM 6. EXHIBITS 3.1  Articles of Incorporation of MarineMax, Inc., a Florida corporation. (1)     

3.2  Bylaws of MarineMax, Inc., a Florida corporation. (1)     

4.1  Form of Common Stock Certificate. (1)     

10.21(p)†  Third Amended and Restated Inventory Financing Agreement, executed on May 9, 2017, by and among MarineMax, Inc. and its subsidiaries, asBorrowers, and Wells Fargo Commercial Distribution Finance LLC, Bank of the West, Inc., M&T Bank, and Branch Banking & Trust Company.

     

10.21(q)†  Fourth Amended and Restated Program Terms Letter, executed on May 9, 2017, by and among MarineMax, Inc. and its subsidiaries, as Borrowers,and Wells Fargo Commercial Distribution Finance, LLC.

     

31.1  Certification of Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a), promulgated under the Securities Exchange Act of 1934, asamended.

     

31.2  Certification of Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a), promulgated under the Securities Exchange Act of 1934, asamended.

     

32.1  Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.     

32.2  Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.     

101.INS  XBRL Instance Document     

101.SCH  XBRL Taxonomy Extension Schema Document     

101.CAL  XBRL Taxonomy Extension Calculation Linkbase Document     

101.DEF  XBRL Taxonomy Extension Definition Linkbase Document     

101.LAB  XBRL Taxonomy Extension Label Linkbase Document     

101.PRE  XBRL Taxonomy Extension Presentation Linkbase Document 

  (1) Incorporated by reference to Registrant’s Form 8-K as filed March 20, 2015.

    † Certain information in this exhibit has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment hasbeen requested with respect to the omitted portions.

 

  

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 SIGNAT URES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersignedthereunto duly authorized.       MARINEMAX, INC.       July 25, 2017   By: /s/ Michael H. McLamb             Michael H. McLamb      Executive Vice President,      Chief Financial Officer, Secretary, and Director      (Principal Accounting and Financial Officer)  

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NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST. 

Exhibit 10.21(p)

ExecutionVersion 

THIRD AMENDED AND RESTATEDINVENTORY FINANCING AGREEMENT

 This Third Amended and Restated Inventory Financing Agreement (as from time to time amended and together with any Transaction Statements, as

hereinafter defined, this “ Agreement”) is entered into as of May 9, 2017 by and between the persons listed in the section of this Agreement entitled “List ofDealers” (each, individually, a “ Dealer” and, collectively, “ Dealers”), Wells Fargo Commercial Distribution Finance, LLC f/k/a GE Commercial DistributionFinance LLC (in its individual capacity, “ CDF”) as Agent (CDF, in such capacity as agent, is herein referred to as “ Agent”) for the several financial institutionsthat are parties to this Agreement or may from time to time become party to this Agreement (collectively, the “ Lenders” and individually each a “ Lender”) andfor itself as a Lender, and such Lenders.

 RECITALS

 (a) Dealers do business together or are related entities.

 (b) Dealers and CDF are currently parties to that certain Second Amended and Restated Inventory Financing Agreement dated as of

October 30, 2015 (as amended, supplemented or otherwise modified from time to time, the “ ExistingFinancingAgreement”). 

(c) Dealers have requested that CDF increase the credit facility under the Existing Financing Agreement and CDF is willing to do so uponthe terms and conditions set forth in this Agreement.  

(d) This Agreement amends and restates the Existing Financing Agreement in its entirety. The parties acknowledge that the principalamount outstanding under the credit facility as of the close of business on the day prior to the date hereof is $ 223,987,356.51 (the “ ClosingPrincipalBalance”). 

1. Definitions . Capitalized terms not otherwise defined in this Agreement shall have the following meanings:

“ AAA” has the meaning set forth in Section 30(b) of this Agreement.

“ AcquiredAssets” has the meaning set forth in Section 6(d)(iv) of this Agreement.

“ AcquiredPerson” has the meaning set forth in Section 6(d)(iv ) of this Agreement.

“ AdvanceDate” has the meaning set forth in Section 2(a)(iv) of this Agreement.

“ Affiliate” means any Person that (i) directly or indirectly controls, is controlled by or is under common control of any other Person, (ii) directly orindirectly owns 25% or more of any other Person, (iii) is a director, partner, manager, or officer of any other Person or an affiliate of any other Person,or (iv) any natural person related to any such Person or an affiliate of such Person.

“ Agent” has the meaning set forth in the Preamble of this Agreement.

“ AgentCompanies” has the meaning set forth in Section 30(a) of this Agreement.

“ AgentReport” has the meaning set forth in Section 21(e)(iii) of this Agreement.

“ AggregateExcessFundingAmount” of a Non-Funding Lender shall be the aggregate amount of all unpaid obligations owing by such Lender toAgent and other Lenders under the Loan Documents, including such Lender’s Ratable Share of Loans.

“ Agreement” has the meaning set forth in the Preamble of this Agreement.

 Second Amended and Restated Inventory Financing Agreement 1 

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST. 

“ Allocation” means, with respect to each Lender, the amount set forth opposite such Lender ’ s name on Exhibit E hereto, under the heading “Allocation ” , as such amount may be reduced or increased from time to time in accordance with this Agreement.

“ Approval” has the meaning set forth in Section 2(c) of this Agreement.

“ ApprovalDate” has the meaning set forth in Section 2(a)(iv) of this Agreement.

“ Assignment” means an assignment agreement entered into by a Lender, as assignor, and any Person, as assignee, pursuant to the terms andprovisions of Section 20 (with the consent of any party whose consent is required by Section 20), accepted by Agent.

“ AutomaticDefault” has the meaning set forth in Section 12(h) of this Agreement.

“ BusinessDay” means any day the Federal Reserve Bank of Chicago is open for the transaction of business.

“ CDF” has the meaning set forth in the Preamble of this Agreement.

“ Charges” has the meaning set forth in Section 10(a) of this Agreement.

“ ClosingDate” means the date of this Agreement.

“ ClosingPrincipalBalance” has the meaning set forth in the Recitals of this Agreement.

“ Collateral” means all personal property of each Dealer, whether such property or such Dealer’s right, title or interest therein or thereto is nowowned or existing or hereafter acquired or arising, and wherever located, including without limitation, all Accounts, Inventory, Equipment, otherGoods, General Intangibles (including without limitation, Payment Intangibles), Chattel Paper (whether tangible or electronic), Instruments (includingwithout limitation, Promissory Notes), Deposit Accounts, Investment Property and Documents, any cash collateral such Dealer may have paid toAgent, and all Products and Proceeds of the foregoing; provided that “Collateral” shall exclude (i) all Fixtures (other than Goods affixed to Inventory)and (ii) all equipment leases and agreements between Dealers and vendors, but only to the extent such leases and agreements prohibit or restrictsuch Dealers from granting a security interest therein and such prohibition or restriction is not ineffective under Article 9 of the Illinois UniformCommercial Code or any other applicable law, rule or regulation; provided , further , that “Collateral” shall include (x) all Accounts and GeneralIntangibles arising under such equipment leases and agreements between Dealers and vendors and (y) all payments and other property received orreceivable in connection with any sale or other disposition of such leases and agreements. Without limiting the foregoing, the Collateral includeseach Dealer’s right to all Vendor Credits. Similarly, the Collateral includes, without limitation, all books and records, electronic or otherwise, whichevidence or otherwise relate to any of the foregoing property, and all computers, disks, tapes, media and other devices in which such records arestored. For purposes of this definition only, capitalized terms used in this definition, which are not otherwise defined, shall have the meanings givento them in Article 9 of the Illinois Uniform Commercial Code.

“ Collections” mean all monies that Agent receives from a Dealer or other sources (other than Lenders) on account of the Obligations.

“ ContingentLiabilities” means any obligation, contingent or otherwise, of any Dealer guaranteeing or having the economic effect of guaranteeingany Debt or obligation of another in any manner, whether directly or indirectly, including without limitation any obligation of such Dealer, direct orindirect, (X) to purchase or pay (or advance or supply funds for the purchase or payment of) such Debt or any security for the payment thereof, (Y) topurchase property or services for the purpose of assuring the owner of such Debt of its payment, or (Z) to maintain the solvency, working capital,equity, cash flow, fixed charge or other coverage ratio, or any other financial condition of the primary obligor so as to enable the primary obligor topay any Debt or to comply with any agreement relating to any Debt or obligation.

“ CurrentRatio” means the ratio, calculated for Dealers on a consolidated basis and in accordance with GAAP, of (A) current assets determined inaccordance with GAAP to (B) current liabilities determined in accordance with GAAP less balloon payments due on real estate loans which Agent inits reasonable discretion expects to be refinanced.

 Third Amended and Restated Inventory Financing Agreement 2 

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST. 

“ Daily Interest ” means, with respect to a Lender, for each calendar day of each calendar month, the product of: (A) the outstanding principalamount of Outstandings that are actually funded by Lender pursuant to this Agreement, multiplied by (B) the applicable interest rate set forth inSection 2(a)(vi) of this Agreement.

“ DealerAffiliate” means any Affiliate of a Dealer.

“ DealerRepresentative” has the meaning set forth in Section 31(b) of this Agreement.

“ Dealers” has the meaning set forth in the Preamble of this Agreement.

“ Debt” means all obligations, contingent or otherwise of Dealers which, in accordance with GAAP, should be classified on the balance sheet asliabilities, and in any event including capital leases, Contingent Liabilities that are required to be disclosed and quantified in notes to financialstatements in accordance with GAAP, and liabilities secured by any Lien on any property regardless of whether such secured liability is with orwithout recourse.

“ Default” has the meaning set forth in Section 12 of this Agreement.

“ DefaultNotice” means written notice from a Dealer received by Agent’s account manager for Dealer or any officer of Agent, specifically advisingAgent of the existence of a Default.

“ DefaultRate” means the lesser of 3% per annum above the rate in effect immediately prior to the Default or the highest lawful contract rate ofinterest permitted under applicable law.

“ Disputes” has the meaning set forth in Section 30(a) of this Agreement.

“ DisqualifiedPerson” has the meaning set forth in Section 20(b) of this Agreement.

“ EligibleInventoryCollateral” has the meaning set forth in Section 6(b)(xiii) of this Agreement.

“ ExistingFinancingAgreement” has the meaning set forth in the Recitals of this Agreement

“ FAA” has the meaning set forth in Section 30(f) of this Agreement.

“ Free Floor Period ” means a period equal to the number of days during which a Vendor agrees to assume the cost of financing Collateralpurchased by a Dealer by granting Agent a Vendor Credit.

“ Future Advances ” means any amount that CDF is obligated to pay to a Vendor pursuant to this Agreement within a certain period after anApproval is issued by CDF.

“ GAAP” means generally accepted accounting principles as of the Closing Date.

“ GovernmentalAuthority” means any nation, sovereign or government, any state or other political subdivision thereof, any agency, authority orinstrumentality thereof and any entity or authority exercising executive, legislative, taxing, judicial, regulatory or administrative functions of orpertaining to government, including any central bank, stock exchange, regulatory body, arbitrator, public sector entity, and supra-national entity.

“ InternalPolicies” has the meaning set forth in Section 2(a)(iii) of this Agreement.

“ InterveningDefault” has the meaning set forth in Section 2(a)(iv) of this Agreement.

“ Invoice” means any invoice issued by a Vendor related to an Approval.

“ LenderAffiliate” means the Affiliate of a Lender.

“ LenderCredit” has the meaning set forth in Section 3(a) of this Agreement.

“ LenderRate” means the Dealer Rate as set forth in the Program Terms Letter less any applicable Performance Rebate as set forth in the ProgramTerms Letter.

 Third Amended and Restated Inventory Financing Agreement 3 

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST. 

“ Lenders” has the meaning set forth in the Preamble of this Agreement.

“ Liens” has the meaning set forth in Section 6 of this Agreement.

“ LoanDocument” means this Agreement, any Program Terms Letter or Transaction Statement entered into pursuant to this Agreement, and alldocuments delivered to Agent and/or any Lender in connection with any of the foregoing.

“ Loans” has the meaning set forth in Section 2(a)(i) of this Agreement.

“ Material AdverseEffect ” means a material adverse effect in (i) Dealers’ business, operations or financial condition, taken as a whole, (ii) theperformance and enforceability of this Agreement, (iii) any portion of the Collateral in excess of one million dollars ($1,000,000.00), or (iv) theperfection and priority of Agent’s Liens in the Collateral.

“ MaximumAggregateCreditAmount” means an aggregate total of Three Hundred Fifty Million Dollars ($350,000,000.00) .

“ Monthly Interest ” means, with respect to each Lender, for each calendar month, the sum of the Daily Interest for each calendar day of suchcalendar month.

“ NetOutstandings” means, at any time, an amount equal to the aggregate unpaid amount of all Outstandings minus the aggregate amount offunds in the [****] (as defined in the [****]) as of such date.

“ Non-FundingLender” means any Lender that has (a) failed to fund any payments required to be made by it under the Loan Documents within two(2) Business Days after any such payment is due (excluding expense and similar reimbursements that are subject to good faith disputes), (b) givenwritten notice (and Agent has not received a revocation in writing), to Agent, any Lender, or Dealer, or has otherwise publicly announced (and Agenthas not received notice of a public retraction) that such Lender believes it will fail to fund payments required to be funded by it under the LoanDocuments or (c) (or any Person that directly or indirectly controls such Lender has), (i) become subject to a voluntary or involuntary case under theFederal Bankruptcy Reform Act of 1978, or any similar bankruptcy laws, (ii) a custodian, conservator, receiver or similar official appointed for it or anysubstantial part of such Person’s assets, or (iii) made a general assignment for the benefit of creditors, been liquidated, or otherwise beenadjudicated as, or determined by any Governmental Authority having regulatory authority over such Person or its assets to be, insolvent or bankrupt,and for this clause (c) , Agent has determined that such Lender is reasonably likely to fail to fund any payments required to be made by it under theLoan Documents.

“ Obligations” means all indebtedness and other obligations of any nature whatsoever of each Dealer to Agent, Lenders and/or a Lender Affiliate,arising under this Agreement or any other Loan Document, and whether for principal, interest, fees, expenses, indemnification obligations orotherwise, and whether such indebtedness or other obligations are existing, future, direct, indirect, acquired, contractual, noncontractual, joint and/orseveral, fixed, contingent or otherwise.

“ OnemonthLibor” has the meaning set forth in Section 10(a) of this Agreement.

“ OpenApproval” means any Approval for which CDF has not financed an Invoice for the inventory subject thereto.

“ OtherLender” has the meaning set forth in Section 22(a) of this Agreement.

“ OtherPre-OwnedSublimit” has the meaning set forth in Section 2(b) of this Agreement.

“ Outstandings” means, at any time, an amount equal to the aggregate unpaid amount of all Invoices which have been financed by Agent on behalfof Dealers.

“ ParticipantRegister” has the meaning set forth in Section 20(h) of this Agreement.

 Third Amended and Restated Inventory Financing Agreement 4 

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST. 

“ PaymentDefault” means any failure by Dealers to make any payment with respect to the Obligations by the date due and after any applicablegrace period (such date being the “ FinalPaymentDate” ; and the failure by Dealers to make such a payment by the date due under the applicableLoan Document being a “ MissedPayment” ). Payment Default shall not mean, and shall exclude, any deductions, offsets or other disputes madeor asserted by a Dealer which are accepted by or under negotiation with Agent.

“ PerformanceRebate” has the meaning set forth in the Program Terms Letter.

“ PermittedLocations” has the meaning set forth in Section 6(b)(xiii) of this Agreement.

“ Person” means any individual, partnership, corporation (including a business trust and a public benefit corporation), joint stock company, estate,association, firm, enterprise, trust, limited liability company, unincorporated association, joint venture and any other entity or Governmental Authority.

“ Pre-OwnedInventorySublimit” has the meaning set forth in Section 2(b) of this Agreement.

“ Principal” has the meaning set forth in Section 31(b) of this Agreement.

“ ProgramTermsLetter” means, collectively, any program terms letter or letters executed by the Dealers and Agent from time to time.

“ RatableShare” means, with respect to each Lender, the percentage equal to such Lender’s Allocation divided by the Maximum Aggregate CreditAmount, as such percentage is set forth opposite such Lender’s name on Exhibit E hereto, under the heading “Ratable Share”, and as suchpercentage may be reduced or increased from time to time in accordance with this Agreement.

[****]

“ Related Persons ” means, with respect to any Person, each Affiliate of such Person and each director, officer, employee, agent, trustee,representative, attorney, accountant and each insurance, environmental, legal, financial and other advisor (including those retained in connectionwith the satisfaction or attempted satisfaction of any condition precedent to the execution of this Agreement) and other consultants and agents of orto such Person or any of its Affiliates.

“ ReplacementLender” has the meaning set forth in Section 22(b) of this Agreement.

“ RequiredLenders” means Lenders whose aggregate Ratable Share exceeds 50%; provided, however, if there are two or more Lenders, RequiredLenders shall mean no less than two Lenders.

“ Sale” has the meaning set forth in Section 20(b) of this Agreement.

“ SeaPro” means Sea Pro Boats, LLC, a South Carolina limited liability company.

“ Settlement Date ” means (a) each Tuesday that this Agreement is in effect or, if such Tuesday is not a Business Day, the next succeedingBusiness Day, or (b) any other Business Day selected by Agent in its reasonable discretion.

“ SpecificPre-OwnedSublimit” has the meaning set forth in Section 2(b) of this Agreement.

“ SPV” means any Person established by Agent, a Lender or a Lender Affiliate, as a bankruptcy-remote special purpose vehicle and identified assuch in a writing by any Lender to Agent.

“ StartDate” has the meaning set forth in Section 10(a) of this Agreement.

“ Stock” means all shares of capital stock (whether denominated as common stock or preferred stock), equity interests, beneficial, partnership ormembership interests, joint venture interests, participations or other ownership or profit interests in or equivalents (regardless of how designated) ofor in a Person (other than an individual), whether voting or non-voting.

 Third Amended and Restated Inventory Financing Agreement 5 

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST. 

“ Tangible Net Worth ” means the shareholders ’ equity of Dealers on a consolidated basis, determined in accordance with GAAP, minus itemstreated as intangible assets under GAAP, amounts owing by any employee, officer or other Dealer Affiliate, other than draws to commissioned andseasonally compensated employees and advances made for customary travel expenses incurred in the conduct of Dealers ’ business, and any otherassets that cannot be identified as tangible assets to Agent ’ s reasonable satisfaction.

“ TransactionStatement” has the meaning set forth in Section 3(a) of this Agreement.

“ UCC” has the meaning set forth in Section 12(j) of this Agreement.

“ USA&M” has the meaning set forth in Section 30(b) of this Agreement.

“ Vendor Credits ” means all of each Dealer’s rights to any price protection payments, rebates, discounts, credits, factory holdbacks, incentivepayments and other amounts which at any time are due a Dealer from a Vendor.

“ Vendors” has the meaning set forth in Section 2(a)(i) of this Agreement 2. Extensions of Credit .

 (a) Floor Plan Advances .

 (i) Subject to the terms and conditions of this Agreement (including, without limitation, Sections 2(a)(iv) and (v)

below), the Lenders severally and not jointly agree to make available to Dealers extensions of credit (“ Loans”) in an amount equal toeach such Lenders Ratable Share of such Loan to any one or more Dealers on a revolving basis in such amounts as Dealers may fromtime to time request up to the Maximum Aggregate Credit Amount, minus (A) the outstanding amount of Approvals, and (B) the aggregateoutstanding amount of any other Obligations of Dealers hereunder, to purchase inventory, which will be subject to a purchase moneysecurity interest in favor of Agent, as collateral agent for Lenders, from Dealers’ existing vendors identified on Exhibit A to this Agreementand any additional vendors acceptable to Agent in Agent’s sole discretion, unless such vendors are disapproved by Agent as providedbelow (each, a “ Vendor” and, collectively, “ Vendors”), and for other purposes (including the Pre-Owned Inventory Sublimit). For theavoidance of doubt, the Closing Principal Balance shall be deemed a Loan outstanding under this agreement, and shall be subject to thefunding procedure set forth in Section 2(a)(v) below on the first Settlement Date following the Closing Date. Notwithstanding anythingherein or in the Program Terms Letter to the contrary, the sum of all Outstandings and Open Approvals with respect to Sea Pro shall notat any time exceed Two Million Dollars ($2,000,000.00); provided, however,  that such amount may be increased from time to time byAgent in writing in its sole and absolute discretion, without the consent of Lenders.

 (ii) (A) Repayments from time to time of the outstanding balance of the indebtedness hereunder shall be available to

be re-borrowed pursuant to the terms and conditions of this Agreement; (B) no Loan will be made to the extent such Loan would causeany Lender to have outstanding Loans in a principal amount in excess of such Lender’s Allocation; (C) if the Obligations hereunderoutstanding at any time or from time to time exceed the Maximum Aggregate Credit Amount, Dealers shall immediately (but in any eventwithin two (2) Business Days) pay the amount of excess to Agent for the benefit of Lenders; provided that, in its reasonable discretion,Agent may cause the Lenders to immediately cease to make Loans and/or Agent may immediately cease to issue Approvals until suchrepayment occurs; and (D) notwithstanding anything else contained in this Agreement, (I) in its reasonable discretion, Agent may causethe Lenders to immediately cease to make any Loans and/or Agent may immediately cease to issue Approvals (x) upon the occurrenceand during the continuance of any Default or upon the occurrence and during the continuance of any event which, with the giving ofnotice, the passage of time, or both would result in a Default, or (y) if any remittance for any Obligations is dishonored when firstpresented for payment, until such payment is honored, and (II) upon termination of this Agreement, Dealers shall repay to Agent onbehalf of Lenders all Obligations hereunder, plus interest accrued to the date of payment.

 

 Third Amended and Restated Inventory Financing Agreement 6 

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST. 

(iii) Each Vendor may be disapproved by written notice from Agent, and following such disapproval shall cease to bea “ Vendor ” under this Agreement, due to (A) such vendor ’ s failure to comply with any law, rule, regulation, order or decree; (B) suchvendor ’ s failure to comply with any internal policies and procedures of Agent or any Lender Affiliate relating to import or export controls,anti-money laundering, anti-terrorism, securities law, banking law or regulation, fraud statutes and other similar laws and regulations andcodes of ethical conduct (collectively, “ InternalPolicies” ); or (C) any circumstance which may make Agent ’ s disbursement of anyadvance to such vendor illegal or otherwise in violation of any law, rule, regulation, order or decree applicable to Agent or any InternalPolicies. If a Vendor is disapproved for any reason set forth above, such disapproval will only affect Dealers ’ ability to request, andLenders ’ obligation to make, subsequent Loans and will not require immediate repayment of previous advances with respect to inventorypurchased from such disapproved Vendor. Notwithstanding anything herein to the contrary, Agent may disapprove Sea Pro as a Vendorby written notice, and following such disapproval, Sea Pro shall cease to be a Vendor under this Agreement, if Sea Pro is disapproved atany time, in Agent ’ s sole discretion, as a vendor with respect to Agent ’ s general portfolio of financing.

 (iv) Each Lender shall have the obligation to fund its Ratable Share of a Loan upon issuance by CDF of an Approval.

Lenders acknowledge and agree that: (A) CDF typically issues Approvals on a date (each, an “ ApprovalDate”) prior to the date CDF isrequired actually to fund the Loan (each, an “ AdvanceDate”) that is based on such Approval, (B) once an Approval has been issued,and the Vendor receiving such Approval shall have shipped its product based thereon, CDF may deem itself obligated to fund the relatedLoan on the Advance Date, notwithstanding any Automatic Default, Payment Default, Default Notice or other Default that may arise on orprior to an Approval Date (each, an “ InterveningDefault”), and (C) each Lender shall be obligated to fully fund in cash such Lender’sRatable Share in any Loans which derive from all Approvals issued by CDF in good faith, as well as any Open Approvals and FutureAdvances based thereon, notwithstanding any Intervening Default.

 (v) On each Settlement Date on or before 2:00 p.m. central time, Agent shall deliver notice to each Lender of the

amount of Loans Lender has funded and such Lender’s Ratable Share multiplied by Net Outstandings, and: (A) if the amount of LoansLender has funded is less than Lender’s Ratable Share multiplied by the Net Outstandings calculated as of such Settlement Date, thenLender shall remit such deficiency to Agent (on behalf of CDF) by 5:00 p.m. central time on the Business Day immediately following suchSettlement Date, and (B) if the amount of Loans Lender has funded is more than Lender’s Ratable Share multiplied by the NetOutstandings calculated as of such Settlement Date, then Agent (on behalf of CDF) will remit such excess to such Lender by 5:00 p.m.central time on the Business Day immediately following such Settlement Date. Each payment due to Agent or Lenders will be paid inimmediately available funds according to the electronic transfer instructions set forth on Exhibit F attached hereto, and, if not timely paidin accordance with this Agreement, will bear interest until paid at a rate per annum equal to the Lender Rate. If CDF is acting as Agent, itshall be deemed to have paid its deficiency or received its excess as set forth above on each Settlement Date. Each Lender herebywaives any right it may now or in the future have to set-off its obligation to make any payment to CDF or Agent under this Agreementagainst any obligation of CDF or Agent to such Lender, whether under this Agreement or any other agreement between CDF and suchLender or Agent and such Lender . 

 (vi) The amount of Loans each Lender has funded shall bear interest at the Lender Rate, as such rate may change

pursuant to the terms of the applicable Program Terms Letter. Interest will be computed on the basis of a 360-day year and assess for theactual number of days elapsed. Provided Lender is not a Non-Funding Lender, then the amount of Monthly Interest, if any, payable toLender, less any Administrative Fee due to Agent pursuant to a Fee Letter between Agent and Lender, shall be distributed by Agent toLender monthly in arrears on the latter of: (A) the fifteenth (15 th ) day of the applicable month, or if the fifteenth (15 th ) is not a BusinessDay, the next succeeding Business Day, or (B) within five (5) Business Days after Agent’s receipt thereof from Dealers. To the extent thatLender is entitled to receive interest income in excess of the Monthly Interest, if such additional interest has not previously beendistributed to Lender, then Lender shall be entitled to receive an additional payment from Agent equivalent to Lender’s Ratable Share ofsuch interest income. Any amounts due to Lender for income in excess of the Monthly Interest shall be reflected and paid with MonthlyInterest as set forth above. Lenders acknowledge and agree that the rate of return paid on any Loan is dependent on numerous factors,including discounts and subsidies offered by Vendors. Application of any Collections received by Agent as interest in cash or goodcollected funds representing payment of interest on the Loans may result in the payment of interest to Lender in excess of the rate setforth in this subsection.

 

 Third Amended and Restated Inventory Financing Agreement 7 

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST. 

(vii) Provided a Lender is not a Non-Funding Lender, any Collections received by Agent in good collected fundsrepresenting payment of any part of the Unused Line Fee (as described in the Program Terms Letter) shall be paid by Agent to eachLender in an amount equal to such Lender ’ s Ratable Share monthly in arrears, with Monthly Interest as set forth in Section 2(a)(vi) .

 (viii) Lenders acknowledge that Dealers may be entitled to receive a Performance Rebate on a calendar quarter

basis pursuant to the terms of the Program Terms Letter. Notwithstanding anything contained herein to the contrary, if the PerformanceRebate is not earned by or otherwise paid to Dealers during any calendar quarter, each Lender may be entitled to receive an additionalpayment from Agent equivalent to such Lender’s share of such portion of the Performance Rebate not earned by or otherwise paid toDealers. Any amounts due to Lenders under this Section 2(a)(viii) shall be reflected in a notice to be delivered in the manner set forth inSection 2(a)(v) of this Agreement within forty-five (45) days following the end of the applicable calendar quarter.

 (ix) As of the Closing Date, all outstanding advances under the Existing Financing Agreement shall be deemed

Loans under this Agreement. 

(b) Pre-Owned Inventory Advances and Sublimits . Subject to the overall Maximum Aggregate Credit Amount set forth aboveand the terms and conditions of this Agreement, on and after the Closing Date, Lenders severally and not jointly may make Loans to Dealers withrespect to pre-owned units of inventory; provided that such cash advances shall not exceed the Pre-Owned Inventory Sublimit and must complywith the pre-owned inventory advance terms set forth herein. Regardless of the amount of credit available to Dealers under the MaximumAggregate Credit Amount hereunder, the total amount of Loans outstanding with respect to used or pre-owned inventory shall not exceed forty-fivemillion dollars ($45,000,000.00) (the “ Pre-OwnedInventorySublimit”). Within such Pre-Owned Inventory Sublimit, (i) any Loans with respect tounits with applicable valuations of five hundred thousand dollars ($500,000.00) or more shall require unit specific documentation (including anadvance request form), (ii) no more than thirty-five million dollars ($35,000,000.00) of such Pre-Owned Inventory Sublimit shall be used by Dealersto finance pre-owned inventory with applicable valuations of less than five hundred thousand dollars ($500,000.00) (the “ Other Pre-OwnedSublimit”), and (iii) no more than twenty million dollars ($20,000,000.00) of such Pre-Owned Inventory Sublimit shall be used by Dealers to financeused or pre-owned inventory with applicable valuations of five hundred thousand dollars ($500,000.00) or more (the “ Specific Pre-OwnedSublimit”).

 (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. Notwithstanding theforegoing: (i) if any particular Vendor shall be the subject of any bankruptcy, reorganization, insolvency, receivership, dissolution, liquidation orsimilar proceeding, or (ii) if Azimut Bennetti Group (or any other vendor that sells Azimut or Atlantis brand inventory), fails to deliver year-endbalance sheet and profit and loss statements (in form and substance reasonably satisfactory to Agent) for its fiscal year then ended within onehundred twenty (120) days following such year-end, or semi-annual balance sheet and profit and loss statements (in form and substancereasonably satisfactory to Agent) for its semi-annual period then ended within ninety (90) days following such semi-annual period, and Dealer failsto cause such Vendor to cure such failure in this Section 2(c)(ii) within thirty (30) days following notice from Agent (which notice may be given byAgent no earlier than one hundred twenty-one (121) days following year-end or ninety-one (91) days following the semi-annual period), then, ineither case Section 2(c)(i) or 2(c)(ii) , Agent may reduce the applicable advance rates set forth in the Program Terms Letter with respect to anyinventory sold by such Vendor after the date of such proceeding by up to ten percent (10%), or twenty percent (20%) for inventory that has a valuein excess of $750,000. This Agreement concerns the extension of credit, and not the provision of goods or services. An “ Approval” shall bedefined as Agent’s indication to a Vendor that the Lenders will provide financing to Dealers with respect to a particular Invoice or Invoices.

 (d) Re-Advances . 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 agree to make Loans to Dealers with respect to units of inventory(excluding used or pre-owned inventory) financed by Lenders pursuant to Section 2(a) or 2(b) of this Agreement for which Dealers may havepreviously made payments to Agent on behalf of Lenders; provided that such units of inventory have not previously been repaid in full, and furtherprovided such cash advances shall not exceed (a) 100% of the original invoice amount with respect to such units, less (b) any curtailment amountsthat have been required to be made by cash payment, offset, application of

 Third Amended and Restated Inventory Financing Agreement 8 

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST. 

a Curtailment Offset under and as defined in the [****], or otherwise with respect to such units; provided , further , that such cash advances, in theaggregate, shall not exceed the Re-Advance Sublimit specified in the Program Terms Letter or, if not specified in such Program Terms Letter,twenty-five percent (25%) of the Maximum Aggregate Credit Amount within any thirty (30) day period.

 3. Financing Terms .

 (a) Certain financial terms of any Loan made under this Agreement are set forth in the Program Terms Letter. In connection

with financing an item of inventory for any Dealer, Agent, on behalf of the Lenders, will transmit or otherwise make available to such Dealer andLenders a “ TransactionStatement” which is a record that may be authenticated and transmitted by Agent to such Dealer from time to time whichidentifies the Collateral financed and/or the advance made and the terms and conditions of repayment of such advance as provided in thisAgreement. Dealers agree that a Dealer’s failure to notify Agent in writing of any objection to a Transaction Statement within thirty (30) days after aTransaction Statement is transmitted or otherwise sent to such Dealer shall constitute Dealers’ (a) acceptance thereof, (b) agreement that theLenders are financing such inventory at Dealers’ request, and (c) agreement that such Transaction Statement will be incorporated herein byreference to the extent not inconsistent with the terms hereof. To the extent any Transaction Statement is inconsistent with the terms hereof, thisAgreement (including any applicable Program Terms Letter) shall govern and control. If any Dealer objects to any Transaction Statement, suchDealer and Agent, on behalf of Lenders, will work in good faith to resolve such objection within sixty (60) days after the applicable TransactionStatement is transmitted or otherwise sent to such Dealer. However, notwithstanding such objection, Dealers will pay Agent on behalf of Lendersfor such inventory in accordance with this Agreement. With respect to any advance made to a Vendor on behalf of a Dealer, Agent, on behalf ofany one or more Lenders, may apply against any such amount owed to Vendor any amount such Lender or Lenders is owed from such Vendor withrespect to Free Floor Periods (each, a “ Lender Credit ”) or any other amounts such Lender or Lenders is owed from suchVendor. Notwithstanding the foregoing, Dealers agree to pay the full amount reflected on any Transaction Statement.

 (b) Upon receipt by Agent of a request for a Loan under and pursuant to CDF’s standard advance request procedures and the

issuance of a Transaction Statement by Agent as set forth in Section 3(a) above, each Lender shall follow the funding procedures established byAgent, from time to time, and shall, as and when requested by Agent, advance funds to Agent to fund such Loan in amounts equal to such Lender’sRatable Share of such Loan.

 4. Security Interest .

 (a) Each Dealer hereby grants to Agent, as collateral agent for the Lenders, a security interest in all of the Collateral as security

for all Obligations under this Agreement. 

(b) Agent will not exercise sole dominion and control over any Deposit Account included in the Collateral except ascontemplated by Section 13 of this Agreement after a Default.

 5. Representations and Warranties . Each Dealer represents and warrants that at the time of execution of this Agreement and at the time of

each Approval and each advance hereunder: 

(a) such Dealer is in good standing in its jurisdiction of organization and is qualified to transact business in each otherjurisdiction in which the nature of its business or property requires such qualification, unless failure to so qualify could not result, individually or inthe aggregate, in a Material Adverse Effect;

 (b) such Dealer does not conduct business under any trade styles or trade names except as disclosed by such Dealer to Agent

in writing and except to the extent that such conduct could not result, individually or in the aggregate, in a Material Adverse Effect; 

(c) such Dealer has all the necessary authority to enter into and perform this Agreement, and the execution, delivery andperformance of this Agreement will not violate (i) such Dealer’s organizational documents, (ii) any agreement binding upon it, unless such violationcould not result, individually or in the aggregate, in a Material Adverse Effect, or (iii) any law, rule, regulation, order or decree, unless such violationcould not result, individually or in the aggregate, in a Material Adverse Effect;

 

 Third Amended and Restated Inventory Financing Agreement 9 

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST. 

(d) this Agreement and each other Loan Document to which any such Dealer is a party constitute the legal, valid and bindingobligations of each such Dealer, enforceable against such Dealer in accordance with their respective terms, except as enforceability may be limitedby applicable bankruptcy, insolvency, or similar laws affecting the enforcement of creditors ’ rights generally or by equitable principles relating toenforceability;

 (e) such Dealer keeps its records respecting accounts and chattel paper at its chief executive office identified below and keeps

the Collateral only at locations permitted by Section 6(b)(xiii) of this Agreement; 

(f) this Agreement correctly sets forth such Dealer’s true legal name, the type of its organization, the jurisdiction in which suchDealer is incorporated or otherwise organized, and such Dealer’s organizational identification number, if any, in each case, as of the date hereof;

 (g) all information supplied by such Dealer to Agent or any Lender, including any financial, credit or accounting statements or

application for credit, in connection with this Agreement is true, correct and complete in all material respects; 

(h) all advances and other transactions hereunder are for business purposes and not for personal, family, household or anyother consumer purposes;

 (i) such Dealer has good title to all Collateral in which it purports to have any interest;

 (j) there are no actions or proceedings pending or threatened against Dealers which could reasonably be expected to result,

individually or in the aggregate, in a Material Adverse Effect; and 

(k) on the Closing Date, neither a Default nor an event which, with the giving of notice, the passage of time, or both, wouldresult in a Default has occurred and is continuing, and, at the time of each Approval and each advance hereunder, a Default has not occurred and isnot continuing.

 6. Covenants .

 (a) Until sold as permitted by this Agreement, each Dealer shall own all of its Collateral free and clear of all liens, security

interests, claims and other encumbrances, whether arising by agreement or operation of law (collectively “ Liens”), other than: 

(i) Liens in favor of Agent; 

(ii) purchase money Liens on Dealers’ new inventory manufactured by vendors that have been disapproved byAgent;

 (iii) Liens on Dealers’ new, used and pre-owned inventory manufactured by vendors that have been disapproved by

Agent; provided that such Liens are subject to subordination or intercreditor agreements in form and substance acceptable to Agent, in itssole discretion, whereby Agent subordinates its Liens in such inventory;

 (iv) Liens for taxes, assessments or other governmental charges that are not due or payable or that are due or

payable, but are being diligently contested in good faith by appropriate proceedings; provided that such contested taxes, assessments orother governmental charges do not exceed five hundred thousand dollars ($500,000.00) in aggregate at any time;

 (v) Liens of carriers, warehousemen, mechanics, materialmen and landlords incurred in the ordinary course of

business for sums not yet due or payable; provided , however , that Liens of landlords are permitted only to the extent that such Liens aresubordinate to the Liens in favor of Agent pursuant to an agreement in form and substance acceptable to Agent or if such subordination isnot required pursuant to the terms of the Program Terms Letter;

 (vi) Liens incurred in the ordinary course of business in connection with workers’ compensation, unemployment

insurance or other forms of governmental insurance or benefits; 

 Third Amended and Restated Inventory Financing Agreement 10 

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST. 

(vii) existing Liens identified in Exhibit B to this Agreement, but only to the extent securing the indebtedness identifiedin such Exhibit; provided that the amount of such indebtedness does not exceed the outstanding amounts thereof on the Closing Date;

 (viii) Liens for capital leases and equipment financing in a combined aggregate amount not exceeding ten million

dollars ($10,000,000.00), but only to the extent encumbering the property leased under such capital leases or acquired with the proceedsof such equipment financing; and

 (ix) Liens on or with respect to cash collateral to secure (a) obligations to depository institutions with respect to

deposit and treasury management services provided by such institutions to Dealers of up to one million dollars ($1,000,000.00) in theaggregate, and (b) reimbursement obligations under letters of credit of up to three million five hundred thousand dollars ($3,500,000.00)in the aggregate; provided that the amount of cash collateral securing the obligations described in clauses (a) and (b) of this Section 6(a)(ix) shall not exceed three million five hundred thousand dollars ($3,500,000.00) in the aggregate at any time.

 (b) Each Dealer will:

 (i) keep all Collateral at Permitted Locations and keep all tangible Collateral in good order, repair and operating

condition and insured as required herein; 

(ii) promptly file all tax returns required by law and promptly pay all taxes, fees, and other governmental charges forwhich it is liable, including without limitation all governmental charges against the Collateral or this Agreement;

 (iii) permit Agent and its designees, without notice, to inspect the Collateral (including, without limitation, each

certificate of title or statement of origin issued for Collateral financed by Lenders) during normal business hours and at any other timeAgent deems desirable (and such Dealer hereby grants Agent and its designees an irrevocable license to enter such Dealer’s businesslocations during normal business hours without notice to such Dealer to account for and inspect all Collateral and to examine and copysuch Dealer’s books and records related to the Collateral);

 (iv) keep complete and accurate records of its business, including inventory, accounts and sales; and permit Agent

and its designees to inspect and copy such records upon request; 

(v) furnish Agent and Lenders with such additional information regarding the Collateral and such Dealer’s businessand financial condition as Agent or any Lender may from time to time reasonably request (including without limitation financial statementsand projections more frequently than set forth below);

 (vi) immediately notify Agent of any material adverse change in the Dealers’ business, operations or financial

condition taken as a whole or any reduction in the aggregate value of the Collateral of five hundred thousand dollars ($500,000.00) ormore;

 (vii) execute (or cause any third party in possession of Collateral to execute) all documents Agent requests to perfect

and maintain the security interest in the Collateral granted to Agent, on behalf of Lenders, hereunder; 

(viii) upon Agent’s request, (i) at any time the aggregate Obligations with respect to any Collateral or Dealer locatedin Ohio exceeds ten million dollars ($10,000,000.00), deliver to Agent immediately upon such request (and Agent may retain) eachcertificate of title or statement of origin issued for such Collateral and (ii) at any time during the continuance of a Default, deliver to Agentimmediately upon such request (and Agent may retain) each certificate of title or statement of origin issued for Collateral financed by anyone or more Lenders;

 (ix) at all times be duly organized, existing, in good standing, qualified and licensed to do business in each

jurisdiction in which the nature of its business or property so requires; 

 Third Amended and Restated Inventory Financing Agreement 11 

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST. 

(x) notify Agent of the commencement of any material legal proceedings against such Dealer; 

(xi) comply with all laws, rules and regulations applicable to such Dealer, including without limitation, the USAPATRIOT ACT and all laws, rules and regulations relating to import or export controls or anti-money laundering;

 (xii) conduct business only under such trade styles and trade names as such Dealer has disclosed to Agent in writing

prior to such conduct; 

(xiii) only permit Collateral consisting of Inventory (“ Eligible Inventory Collateral ”) to be located at, or in-transitdomestically to and from, locations described in Exhibit C to this Agreement and at such other locations in the United States disclosed toAgent in writing at least fifteen (15) days prior to such Dealer’s use of such location (but excluding the locations of any consignedinventory), unless Agent otherwise agrees to such location or consignment in writing (collectively, the “ PermittedLocations”); providedthat such fifteen (15) day notice and Agent approval shall not be required for inventory (including consigned inventory not financed byAgent hereunder) with an aggregate invoice amount of less than five million dollars ($5,000,000.00) located at other locations (includinglocations outside of the United States, but excluding boat shows) for up to thirty (30) days per unit and, provided , further , that suchnotice shall be reduced to one (1) day and Agent approval shall not be required for inventory (excluding consigned inventory) with anaggregate invoice amount of less than five million dollars ($5,000,000.00) located at boat shows for up to thirty (30) days;

 (xiv) provide to Agent or any Lender, when requested by Agent or such Lender, a copy of such Dealer’s

organizational documents, and will provide to Agent or any requesting Lender any subsequent amendments thereto bearing indicia offiling from the appropriate Governmental Authority, or such other documents verifying such Dealer’s true and correct legal name as Agentmay request from time to time; and

 (xv) only permit MarineMax Vacations, Ltd. to hold Eligible Inventory Collateral with an aggregate invoice amount of

not more than two million dollars ($2,000,000); provided that such inventory shall at all times be used by MarineMax Vacations, Ltd. inconnection with its charter business or businesses directly related thereto.

 (c) Financial Covenants . Dealers covenant and agree that, so long as any of the Obligations to Agent and any Lenders remain

outstanding or this Agreement remains in effect, even if no Obligations to Agent or any Lenders are outstanding, Dealers shall: 

(i) maintain at all times a ratio of Debt to Tangible Net Worth of not more than 2.75 to 1.0 measured as of fiscalquarter end June 30, 2013 and each successive fiscal quarter end thereafter; and

 (ii) maintain at all times a Current Ratio of not less than 1.2 to 1.0 as of fiscal quarter end June 30, 2013 and each

successive fiscal quarter end thereafter. 

(d) No Dealer will, without Agent’s prior written consent: 

(i) use (except for demonstration purposes), rent, lease, sell, transfer, consign (except consigned inventory located atPermitted Locations), license, encumber or otherwise dispose of any Collateral except for sales of inventory at retail in the ordinarycourse of such Dealer’s business and except for Collateral with an aggregate value not exceeding five hundred thousand dollars($500,000.00) in any one calendar year;

 (ii) sell or otherwise transfer inventory to a Dealer Affiliate, except in accordance with Section 6(e) of this Agreement;

 (iii) engage in any other material transaction not in the ordinary course of such Dealer’s business with respect to the

Collateral or which would result, individually or in the aggregate, in a Material Adverse Effect;

 Third Amended and Restated Inventory Financing Agreement 12 

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST.  

(iv) change the nature of its business in any material manner or its legal structure or be a party to a merger orconsolidation (other than a merger or consolidation of a Dealer with or into another Dealer) or change its type of organization, itsjurisdiction of incorporation or organization, or its organizational identification number, if any, or acquire any Person (an “ AcquiredPerson”) or a substantial portion of the assets of any Person (“ Acquired Assets ”), except that Dealers may acquire an AcquiredPerson or Acquired Assets, if (A) Dealers provide Agent with thirty (30) days’ prior written notice of such acquisition, accompanied by acertificate of Dealers’ chief financial officer that such acquisition complies with the conditions of this Section 6(d)(iv) and copies of proforma financial statements and projections giving effect to such acquisition, (B) immediately after any such acquisition of an AcquiredPerson, such Acquired Person becomes a party to this Agreement as a Dealer by executing and delivering to Agent such documents andagreements as Agent may reasonably require, at Dealers’ cost and expense, (C) immediately after any such acquisition of AcquiredAssets, Agent shall continue to have, on behalf of Lenders a first-priority perfected security interest in such Acquired Assets thatconstitute “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 occurredand be continuing, (E) before and after giving effect to such acquisition, as illustrated by the pro forma financial statements andprojections provided to Agent pursuant to clause (A) above, Dealers shall be in compliance with the financial covenants set forth inSection 6(c) as of the most recently ended fiscal quarter and the next four fiscal quarters ending after such acquisition, (F) the totalacquisition cost of such Acquired Person or Acquired Assets (including, without limitation, acquired inventory) shall not exceed ten milliondollars ($10,000,000) individually or twenty-five million dollars ($25,000,000) in the aggregate in any rolling twelve-month period for allsuch 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 (as definedin the Program Terms Letter) 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 [****]), plus Availability shall be at least fifteen million dollars ($15,000,000); provided , however , that notwithstandinganything in this Section to the contrary, MarineMax Vacations, Ltd. shall not be required to become a party to this Agreement as a Dealer.

 (v) change its name or conduct business under a trade style or trade name other than those disclosed by such

Dealer to Agent in writing without giving Agent at least thirty (30) days’ prior written notice thereof; 

(vi) change its chief executive office or office where it keeps its records with respect to accounts or chattel paper; 

(vii) change the state in which it is incorporated or otherwise organized (except upon thirty (30) days’ prior writtennotice to Agent);

 (viii) finance on a secured basis with any Vendor or any third party the acquisition of inventory of the same brand as

any new inventory financed or to be financed by Agent; 

(ix) store Collateral financed by Lenders with any third party except for Collateral at Permitted Locations; (x) incur secured or unsecured Debt in excess of one hundred thirty million dollars ($130,000,000.00), excluding Debt

incurred pursuant to this Agreement; or (xi) pay cash dividends or make other cash distributions with respect to or repurchase Stock of Dealers in an

aggregate amount during the term of this Agreement in excess of Dealers’ cumulative net income (incurred from March 31, 2013 throughthe term hereof) plus thirty million dollars ($30,000,000.00).

(e) Notwithstanding the provisions of Section 6(d)(ii) of this Agreement, a Dealer may sell or otherwise transfer inventory to

another Dealer who is a signatory to this Agreement. The parties agree that any such inventory that is sold or otherwise transferred at any time byone Dealer to another shall be and remain Collateral and shall continue to secure the Obligations.

 Third Amended and Restated Inventory Financing Agreement 13 

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST.  

(f) Each Dealer, within ten (10) days of the end of each calendar year, will provide a list of all locations where Collateral is ormay be kept, including information as to whether the property is owned or leased, any Liens or other encumbrances on such property, and if leased,the name of the lessor, the lease term, and any other information Agent shall request. If any Collateral location is subject to a mortgage, deed oftrust, or other Lien in favor of any Person other than Agent, except any Lien permitted by Section 6(a) of this Agreement, Dealers agree to promptlyobtain an agreement from such Person, waiving such Person’s Lien on the Collateral and providing Agent reasonable access thereto, in form andsubstance acceptable to Agent and duly executed and delivered by such Person.

 7. Insurance .

 (a) All risk of loss, damage to or destruction of Collateral shall at all times be on Dealers. Each Dealer shall keep all of its

tangible Collateral insured for full value against all insurable risks, under policies delivered to Agent, on terms and with insurers reasonablyacceptable to Agent, with loss payable to Agent on behalf of Lenders (with respect to any claim in excess of two hundred fifty thousand dollars($250,000.00) per occurrence), assignee or additional insured, as appropriate. Such insurance shall be subject to cancellation or change only (i)upon ten (10) days written notice to Agent for non-payment of premium or (ii) upon thirty (30) days written notice to Agent for all other reasons, andshall provide that Agent’s interests will not be impaired by any failure of Dealers to comply with the terms of such insurance or by any exercise ofremedies by Agent with respect to the property insured. With respect to any claim during the continuance of any Default, Agent is authorized, butnot required, to act as attorney‑in‑fact for each Dealer in adjusting and settling any insurance claims under any such policy and in endorsing anychecks or drafts drawn by insurers. To facilitate the exercise of such rights by Agent, each Dealer has executed and delivered to Agent a Power ofAttorney, which Agent agrees not to exercise any rights under unless a Default has occurred and is continuing. In addition, at any time (before andafter the occurrence of any Default), (A) each Dealer shall promptly remit to Agent in the form received, with all necessary endorsements, allproceeds of such insurance which such Dealer may receive, and (B) Agent, at its election, shall either apply any proceeds of insurance it mayreceive toward payment of the Obligations or pay such proceeds to such Dealer or any other Dealer.

 (b) Except as otherwise required by Section 7(a) of this Agreement, Dealers shall (i) keep their insurable property adequately

insured at all times by financially sound and reputable insurers to such extent and against such risks, including fire and other risks insured againstby extended coverage, as is customary with companies similarly situated and in the same or similar businesses, (ii) maintain in full force and effectpublic liability and workers compensation insurance, in amounts customary for such similar companies to cover normal risks, by insurers reasonablysatisfactory to Agent, and (iii) maintain such other insurance as may be required by law or reasonably requested by Agent. Dealers shall deliverevidence of renewal of each insurance policy on or before the date of its expiration, and from time to time shall deliver to Agent, on or before thedate hereof, and thereafter upon demand, evidence of the maintenance of such insurance. Dealers shall delivery promptly to Agent copies of allreports provided to insurers by any Dealer.

 (c) The following notice is given pursuant to Section 180/10 of the Collateral Protection Act set forth in Chapter 815 Section

180/1 of the Illinois Compiled Statutes; nothing contained in such notice shall be deemed to limit or modify the terms of this Agreement: UNLESSEACH DEALER PROVIDES EVIDENCE OF THE INSURANCE COVERAGE REQUIRED BY SUCH DEALER’S AGREEMENT WITH AGENT ANDLENDERS, AGENT MAY PURCHASE INSURANCE AT SUCH DEALER’S EXPENSE TO PROTECT AGENT’S AND LENDERS’ INTEREST INSUCH DEALER’S COLLATERAL. THIS INSURANCE MAY, BUT NEED NOT, PROTECT SUCH DEALER’S INTEREST. THE COVERAGE THATAGENT PURCHASES MAY NOT PAY ANY CLAIM THAT SUCH DEALER MAKES OR ANY CLAIM THAT IS MADE AGAINST SUCH DEALER INCONNECTION WITH THE COLLATERAL. SUCH DEALER MAY LATER CANCEL ANY INSURANCE PURCHASED BY AGENT, BUT ONLYAFTER PROVIDING AGENT EVIDENCE THAT SUCH DEALER HAS OBTAINED INSURANCE AS REQUIRED UNDER THIS AGREEMENT. IFAGENT PURCHASES INSURANCE FOR ANY COLLATERAL, DEALERS WILL BE RESPONSIBLE FOR THE COSTS OF THAT INSURANCE,INCLUDING THE INSURANCE PREMIUM, INTEREST AND ANY OTHER CHARGES AGENT MAY IMPOSE IN CONNECTION WITH THEPLACEMENT OF THE INSURANCE, UNTIL THE EFFECTIVE DATE OF THE CANCELLATION OR EXPIRATION OF THE INSURANCE. THECOSTS OF THE INSURANCE MAY BE ADDED TO DEALERS’ TOTAL OUTSTANDING BALANCE OR OBLIGATION. THE COSTS OF THEINSURANCE MAY BE MORE THAN THE COST OF INSURANCE A DEALER MAY BE ABLE TO OBTAIN ON ITS OWN.

 Third Amended and Restated Inventory Financing Agreement 14 

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST.  

8. Financial Statements . Unless waived by Agent, Dealers will deliver to Agent, in a form reasonably satisfactory to Agent: (a) Dealers’audited year-end balance sheet and audited annual profit and loss statement for each fiscal year after the date hereof, prepared on a consolidated basis, withintwenty (20) days after the same are prepared but in no event later than one hundred and twenty (120) days after the end of each fiscal year, accompanied by anunqualified opinion of independent certified public accountants acceptable to Agent; (b) within sixty (60) days after the end of each of such Dealers’ fiscalquarters, a reasonably detailed balance sheet and income statement as of the last day of such quarter covering Dealers’ operations on a consolidated basis forsuch quarter; (c) within thirty (30) days after the end of Dealers’ fiscal months, a reasonably detailed balance sheet and income statement as of the last day ofsuch month covering Dealers’ operations for such month, on a consolidated basis; (d) within thirty (30) days prior to Dealers’ year-end, Dealers’ financialprojections for the next fiscal year on a consolidated basis; (e) concurrently with the delivery of the financial statements required to be delivered under clauses(a) and (b), above, a compliance certificate in the form attached hereto as Exhibit D , executed by an officer of Dealers, and (f) within ten (10) days after Agent’sreasonable request, any other information relating to the Collateral or the financial condition of any Dealer or Dealers and (g) concurrently with the delivery of thefinancial statements required to be delivered under clauses (a) and (b), above, a trigger compliance certificate in the form attached hereto as Exhibit G (the “TriggerComplianceCertificate”), setting forth a calculation of Fixed Charge Coverage Ratio and TTM EBITDA (each as defined in the Program Terms Letter),executed by an officer of Dealers. Each Dealer represents that all financial statements and information which have been or may hereafter be delivered byDealers are and will be true and correct in all material respects and, with respect to all quarterly and annual financial statements, prepared in accordance withGAAP consistently applied in all material respects, and there has been no material adverse change in the financial or business condition of Dealers, taken as awhole, since the submission to Agent of such financial statements, and Dealers acknowledge Agent’s reliance thereon. 

9. Payment Terms . Each Dealer will pay Agent for the benefit of Lenders, the principal amount of the Obligations owed by such Dealer oneach item of Collateral financed by Lenders upon the occurrence of any of the following events, subject to the Program Terms Letter: (a) when such Collateral islost, stolen or materially damaged and such loss or damage is the subject of an insurance claim payable to Agent as loss payee for the benefit of Lenders, (i) aportion of the principal amount of the Obligations with respect to such Collateral equal to such principal amount, minus the insurance claim amount (net of anyapplicable deductible) immediately after such loss or damage or after the determination of the claim amount or the deductible amount, as applicable, and (ii) theremaining principal amount of the Obligations with respect to such Collateral immediately upon the earlier of (A) receipt of any proceeds of such insurance(including, without limitation, receipt of any proceeds made payable to such Dealer and Agent jointly) or rejection or denial of such claim and (B) thirty (30) days(or such later date as Agent may agree in writing) after such loss or damage; (b) when such Collateral is lost, stolen or materially damaged and such loss ordamage is not the subject of an insurance claim payable to Agent as loss payee for the benefit of Lenders, immediately after such loss or damage; (c) whenCollateral is sold, transferred, rented, leased, consigned (unless Dealer has complied with Agent’s documentation requirements and Agent has consented inwriting to such consignment arrangement), otherwise disposed of, or its payment term has matured, immediately upon the earlier of (i) Dealer’s receipt of theproceeds thereof, and (ii) seven (7) calendar days after such occurrence; and (d) when otherwise required under the terms of this Agreement. In addition, eachDealer will pay Agent the required principal amount of the Obligations owed Lenders on each item of Collateral financed by Lenders in strict accordance with anycurtailment schedule or other curtailment or repayment provisions for such Collateral as described in the Program Terms Letter. The initial payment terms,curtailment terms and advance rates with respect to Dealers’ financing program hereunder are set forth in the Program Terms Letter. Subsequent financingprogram terms, or changes to Dealers’ then current financing program terms, may be set forth in an amended Program Terms Letter executed by the partiesthereto. If a Dealer is required to make immediate payment to Agent of any past due obligation discovered during any Collateral review, or at any other time,Agent’s acceptance of such payment shall not be construed to have waived or amended the terms of its financing program. Each Dealer will send all paymentsto Agent as directed. Agent may apply: (1) payments to reduce finance charges first and then principal, regardless of a Dealer’s instructions; and (2) principalpayments to the oldest (earliest) invoice for Collateral financed by Lenders, but, in any event, all principal payments, may, in Agent’s sole discretion, first beapplied to such Collateral which is sold, lost, stolen, damaged, rented, leased, or otherwise disposed of or unaccounted for. Any Vendor Credit granted to anyDealer for any Collateral will not reduce the Obligations Dealers owe Lenders until Agent has received payment therefor in cash. Each Dealer will: (A) pay Agenteven if any Collateral is defective or fails to conform to any warranties extended by any third party; and (B) indemnify and hold Agent and each Lender harmlessagainst all claims and defenses asserted by any buyer of any Collateral. Each payment under the Loan Documents shall be paid in U.S. dollars and withoutsetoff, recoupment, counterclaim or deduction of any kind. Each Dealer waives all rights of setoff such Dealer may have against Agent or any Lender. Anypayment hereunder which would otherwise be due on a day which is not a Business Day, shall be due on the next succeeding Business Day, with suchextension of time included in any calculation of applicable finance charges. In addition to the other provisions of this Agreement, in order to adequately secureDealers’

 Third Amended and Restated Inventory Financing Agreement 15 

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST. Obligations to Agent and Lenders, Dealers shall, at Agent ’ s request, immediately pay Agent the amount necessary to reduce the sum of outstanding advanceshereunder to an amount which does not exceed the amount available to be borrowed pursuant to the provisions of the Program Terms Letter.

 10. Calculation of Charges .

 (a) Dealers shall pay fees, charges and interest (collectively, “ Charges ”) with respect to each advance in accordance with this

Agreement and pursuant to the terms of the Program Terms Letter. Dealers shall pay Agent its customary Charges for any check or other itemwhich is returned unpaid to Agent. Unless otherwise provided in this Agreement, the following additional provisions shall be applicable toCharges: (i) any reference to “ OnemonthLibor” rate shall mean for any calendar month the “One month Libor” rate published in the “MoneyRates” column of The Wall Street Journal on the first Business Day of such month; (ii) all Charges shall be paid by Dealers monthly pursuant to theterms of the billing statement in which such Charges appear; (iii) interest on each advance and principal amount of the Obligations related theretoshall be computed each calendar month on the sum of the daily balances thereof during such month divided by thirty (30) and (A) in the case wherea monthly rate of interest is provided for, multiplied by the monthly rate provided for in this Agreement; or (B) in the case where an annual rate ofinterest is provided for, multiplied by one-twelfth of the annual rate provided for in this Agreement; or (C) in the case where a daily rate of interest isprovided for, multiplied by such daily rate and multiplied by thirty (30); (iv) interest on an advance shall begin to accrue on the “ StartDate” whichshall be defined as the earlier of: (A) the invoice date referred to in the Vendor’s Invoice; or (B) the ship date referred to in the Vendor’s Invoice; or(C) the date any one or more Lenders make such advance; provided , however , if a Vendor fails to fully pay, by honoring or paying any LenderCredit or otherwise, the interest or other cost of financing such inventory during the period between the Start Date and the end of the Free FloorPeriod, then Dealers shall pay such interest to Agent on behalf of Lenders on demand as if there were no Free Floor Period with respect to suchinventory; (v) for the purpose of computing Charges, any payment will be credited pursuant to Agent’s payment recognition policy, as in effect fromtime to time; and (vi) advances or any part thereof not paid when due (and Charges not paid when due, at the option of Agent, shall become part ofthe principal amount of the Obligations and) shall bear interest at the Default Rate.

 (b) Agent and Lenders intend to strictly conform to the usury laws governing this Agreement. Regardless of any provision

contained herein, in any Transaction Statement, or in any other document, neither Agent nor any Lender shall ever be deemed to have contractedfor, charged or be entitled to receive, collect or apply as interest, any amount in excess of the maximum amount allowed by applicable law. If Agentor any Lender ever receives any amount which, if considered to be interest, would exceed the maximum amount permitted by law, Agent or suchLender will apply such excess amount to the reduction of the unpaid principal balance which any Dealer owes, and then will pay any remainingexcess to such Dealer. In determining whether the interest paid or payable exceeds the highest lawful rate, Dealers, Agent and each Lender shall,to the maximum extent permitted under applicable law, (1) characterize any non-principal payment (other than payments which are expresslydesignated as interest payments hereunder) as an expense or fee rather than as interest, (2) exclude voluntary pre-payments and the effectthereof, and (3) spread the total amount of interest throughout the entire term of this Agreement so that the interest rate is uniform throughout suchterm. Agent will recognize and credit payments made by check, ACH, federal wire, or other acceptable means, according to its payment recognitionpolicies from time to time in effect, or as otherwise agreed. Information regarding Agent payment recognition policies is available from Dealers’Agent representative or the Agent website, or will be communicated pursuant to Section 11(b) of this Agreement.

 11. Billing Statement/Fees; Right to Modify Charges and Other Terms .

 (a) Agent will transmit or otherwise send to each Dealer a monthly billing statement identifying all charges due on such Dealer’s

account pursuant to this Agreement. The charges specified on each billing statement will be (1) due and payable no later than the fifteenth (15 th )day of the month in which such billing statement is transmitted to or received by Dealer, and (2) an account stated, unless Agent receives a Dealer’swritten objection thereto within fifteen (15) days after it is transmitted or otherwise sent to Dealers. If Agent does not receive, by the 25 th day of anygiven month, payment of all charges accrued to a Dealer’s account with any one or more Lenders during the immediately preceding month, Dealerswill (to the extent allowed by law and if requested by Agent) pay Agent a late fee equal to the greater of five dollars ($5.00) or five percent (5%) ofthe amount of such charges (payment of such fee does not waive the default caused by the late payment). Agent may adjust the billing statementat any time to conform to applicable law and this Agreement.

 Third Amended and Restated Inventory Financing Agreement 16 

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST.  

(b) Agent may charge one or more fees in connection with the servicing and administration of a Dealer’s account, for its ownaccount as set forth herein and in the Program Terms Letter (and for the avoidance of doubt, Lenders other than CDF, in its capacity as Agent, shallhave no interest in any such fees).

 12. Default . The occurrence of one or more of the following events shall constitute a default by Dealers (a “ Default”):

 (a) a Dealer shall either (1) fail to pay any principal amount of Obligations owed to Agent when due (without any grace period)

or (2) fail to pay any interest or other Obligations owed to Agent within fifteen (15) days after the due date therefore; 

(b) any representation made to Agent or any Lender by or on behalf of Dealers shall not be true when made; 

(c) if a Dealer shall breach any covenant (other than any covenant contained in Section 6(c) of this Agreement), warranty oragreement in this Agreement or in any other Loan Document to or with Agent and/or any Lender and such breach shall not be cured within thirty(30) days after the earlier of (i) knowledge thereof by an officer of any Dealer and (ii) written notice of such breach is delivered by Agent to anyDealer; provided that, if such breach is subject to cure and Dealers are diligently pursuing cure by appropriate means at the end of such thirty (30)days, then Dealers shall have an additional thirty (30) days thereafter to complete the cure of such breach;

 (d) Dealers shall breach any covenant contained in Section 6(c) of this Agreement as of the end of two (2) consecutive fiscal

months or as of the end of more than two (2) months in any twelve (12) month period; 

(e) a Dealer (including, if a Dealer is a partnership or limited liability company, any partner or member of a Dealer) shallbecome insolvent or generally fail to pay its debts as they become due or, if a business, shall cease to do business as a going concern other thanmergers or consolidations permitted by Section 6(d)(iv) of this Agreement;

 (f) any letter of credit provided by a Dealer to Agent with respect to any Obligations or Collateral shall terminate or not be

renewed at least sixty (60) days prior to its stated expiration or maturity; 

(g) a Dealer abandons any Collateral with an aggregate value exceeding five hundred thousand dollars ($500,000.00) in anytwelve (12) month period;

 (h) a Dealer shall make an assignment for the benefit of creditors, or commence a proceeding with respect to itself under any

bankruptcy, reorganization, arrangement, insolvency, receivership, dissolution or liquidation statute or similar law of any jurisdiction, or any suchproceeding shall be commenced against it or any of its property and such proceeding commenced against it or any of its property shall not bedismissed or otherwise discharged within sixty (60) days thereafter (an “ AutomaticDefault”);

 (i) an attachment, sale or seizure shall be issued or shall be executed against assets of any Dealer with a value exceeding five

hundred thousand dollars ($500,000.00) in the aggregate in any twelve (12) month period; 

(j) a Dealer shall file or authorize the filing of any correction or termination statement with respect to any Uniform CommercialCode (the “ UCC”) filing made by Agent in connection herewith;

 (k) any third party shall file any correction or termination statement with respect to any UCC filing made by Agent in connection

herewith and Dealers shall fail to perfect Agent’s security interest in the Collateral and re-establish the first-priority thereof within thirty (30) daysafter the filing of such correction or termination statement;

 (l) a material adverse change shall occur in the business, operations or financial condition of Dealers, taken as a whole;

 

 Third Amended and Restated Inventory Financing Agreement 17 

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST. 

(m) (i) a Dealer fails to make any payment in excess of [****] when due with respect to any Debt owed to any third party(including Lender Affiliates) of [****] or more in the aggregate and such failure shall continue after any applicable notice, grace or cure periodtherefor; or (ii) a default shall occur, or a Dealer shall give or receive notice of default, with respect to any Debt owed to any third party (includingLender Affiliates) of [****] or more in the aggregate and such default shall entitle such third party to declare such debt due and payable prior to itsstated maturity or to exercise any other right or remedy or take any adverse action with respect thereto; or (iii) a default shall occur, or a Dealer shallgive or receive notice of default, with respect to any Debt owed to any third party (including Lender Affiliates) of one million dollars ($1,000,000.00)or more in the aggregate and such third party shall have declared such Debt due and payable prior to its stated maturity or exercised any other rightor remedy or taken any adverse action with respect thereto;

 (n) any final judgment against any Dealer for the payment of one million dollars ($1,000,000.00) or more in excess of

insurance, and such judgment shall remain unstayed and unpaid for over thirty (30) days; or 

(o) any events shall occur which, but for the dollar thresholds set forth in this Section 12, would constitute Defaults hereunderand, in the aggregate, such events relate to asset values, Collateral values, or payments in excess of two million dollars ($2,000,000.00) in anytwelve (12) month period.

 13. Rights and Remedies Upon Default .

 (a) Upon the occurrence of a Default, Agent, acting on behalf of Lenders pursuant to Section 21(a) , shall have all rights and

remedies of a secured party under the UCC as in effect in any applicable jurisdiction and other applicable law and all the rights and remedies setforth in this Agreement. Upon the occurrence of a Default, Agent may, and at the direction of the Required Lenders shall:

 (i) terminate any obligations Agent or any Lender has under this Agreement and any outstanding credit approvals

immediately and/or declare any and all Obligations immediately due and payable without notice or demand; 

(ii) exercise control over any Deposit Accounts (as defined in Article 9 of the Illinois Uniform Commercial Code)included in the Collateral and apply any balances on deposit therein to the Obligations in such order and amount as Agent may elect;

 (iii) enter any premises of any one or more of Dealers, with or without process of law, without force, to search for,

take possession of, and remove the Collateral, or any part thereof; 

(iv) take possession of the Collateral or any part thereof on any one or more of Dealers ’ premises and cause it toremain there at Dealers’ expense, pending sale or other disposition;  

(v) apply the Default Rate, without regard to whether Agent has accelerated any Obligations, and without notice toDealers. 

Each Dealer waives notice of intent to accelerate, and of acceleration of any Obligations. If Agent requests, each Dealer shall cease disposition ofand shall assemble the Collateral and make it available to Agent, at Dealers’ expense, at a convenient place or places designated by Agent. EachDealer agrees that the sale of inventory by Agent to a Person who is liable to Agent under a guaranty, endorsement, repurchase agreement or thelike shall not be deemed to be a transfer subject to UCC §9-618 or any similar provision of any other applicable law, and each Dealer waives anyprovision of such laws to that effect. Each Dealer agrees that the repurchase of inventory by a Vendor pursuant to a repurchase agreement withAgent shall be a commercially reasonable method of disposition. Dealers shall be jointly and severally liable to Agent for any deficiency resultingfrom Agent’s disposition of any Collateral, including without limitation a repurchase by a Vendor, regardless of any subsequent dispositionthereof. No Dealer is a beneficiary of, nor has any right to require Agent to enforce, any repurchase agreement. Any notice of a disposition shall bedeemed reasonably and properly given if given to a Dealer at least ten (10) days before such disposition. If a Dealer fails to perform any of itsobligations under this Agreement, Agent may perform the same in any form or manner Agent in its reasonable discretion deems necessary ordesirable, and all monies paid by Agent in connection therewith shall be additional Obligations and shall be immediately due and payable withoutnotice together with interest payable on demand at the Default Rate. All of Agent’s rights and remedies shall be cumulative. At Agent’s request, orwithout request in the event of an

 Third Amended and Restated Inventory Financing Agreement 18 

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST. 

Automatic Default, each Dealer shall pay all Vendor Credits to Agent as soon as the same are received for application to the Obligations. EachDealer authorizes Agent to collect such amounts directly from Vendors and, upon request of Agent, shall instruct Vendors to pay Agentdirectly. Each Dealer irrevocably waives any requirement that Agent retain possession and not dispose of any Collateral until after an arbitrationhearing, arbitration award, confirmation, trial or final judgment or appeal thereof. During the continuation of a Default, Agent ’ s election to make ornot make a Loan to a Dealer is solely at Agent ’ s discretion.

 (b) All Collections received by Agent after acceleration, a Default (including, without limitation, a Payment Default or a Specified

Default) or demand for payment of all of the Obligations, in connection with any workout of the Obligations including any forbearance arrangement,or after the initiation by or against any Dealer of a bankruptcy or other insolvency proceeding or other proceedings for collection of the Obligations,whether received pursuant to such demand or as a result of legal proceedings against any Dealer or through payment by or action against anyother Person in any way liable for the Obligations, shall be applied, so far as the same will reach, in the following order:

 (i) First, to the costs and expenses, including attorneys’ fees, incurred solely by Agent in effecting such recovery, in

enforcing any right or remedy under the Loan Documents, or in any way related to the Loans, the Outstandings, the Loan Documents,this Agreement, the Future Advances, Open Approvals or Collections;

 (ii) Second, to accrued interest, ratably in accordance with each Lender’s respective Ratable Share of such interest

being calculated at the interests rates set forth in Section 2(a)(vi) hereof; and (iii) Third, to unpaid principal, ratably in accordance with each Lender’s Ratable Share, subject to such Lender’s

obligation to fund Loans made by Agent based upon financed Invoices related to Open Approvals. 

14. Power of Attorney . Each Dealer authorizes Agent to: (a) file financing statements describing Agent as “Secured Party,” such Dealer as“Debtor” and indicating the Collateral (including, without limitation, the indication of the Collateral as “all assets”); (b) authenticate, execute or endorse on behalfof such Dealer any instruments, chattel paper, certificates of title, manufacturer statements of origin, builder’s certificate, financing statements and amendmentsthereto, or other notices or records comprising or related to Collateral or evidencing financing under the Agreement or evidencing or maintaining the perfection ofthe security interest granted hereby, as attorney‑in‑fact for such Dealer; and (c) supply any omitted information and correct errors in any documents betweenAgent, such Dealer and, if applicable, Lenders. This power of attorney and the other powers of attorney granted herein are irrevocable and coupled with aninterest.  

15. Collection and Other Costs . Dealers shall pay to Agent, on behalf of itself and the other Lenders, on demand all reasonable attorneys’fees and legal expenses and other costs and expenses incurred by Agent in connection with establishing, perfecting, maintaining perfection of, protecting andenforcing its Lien on the Collateral and collecting any Obligations, or in connection with the negotiation and execution of this Agreement and any modificationthereof, any Default or in connection with any action or proceeding under any bankruptcy or insolvency laws or incurred pursuant to an arbitration proceedinginvolving a Dealer or any Collateral. All fees, expenses, costs and other amounts described in this Section 15 shall constitute Obligations, shall be secured bythe Collateral and interest shall accrue thereon at the Default Rate. 

16. Information . Each Dealer irrevocably authorizes Agent and each Lender to investigate and make inquiries in a commercially reasonablemanner of former, current, or future creditors or other persons and credit bureaus regarding or relating to Dealers (including, to the extent permitted by law, anyequity holders of any Dealer, unless the equity of such Dealer is publicly-traded on a recognized exchange). Information requested to be provided by Dealershall be requested through Agent and provided to Agent for distribution to Lenders. Agent and each Lender may provide to any Lender Affiliate or any thirdparties any financial, credit or other information regarding Dealers that Agent or such Lender may at any time possess, whether such information was suppliedby Dealers or otherwise obtained by such Agent or Lender, and such information shall be provided on a confidential basis to the extent it is otherwiseconfidential. Further, each Dealer irrevocably authorizes and instructs any third parties (including without limitation, any Vendors or customers of Dealers) toprovide to Agent any credit, financial or other information regarding Dealers that such third parties may at any time possess, whether such information wassupplied by any Dealer to such third parties or otherwise obtained by such third parties. 

 Third Amended and Restated Inventory Financing Agreement 19 

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST. 

17. Amendments and Waivers .

(a) No amendment or waiver of any provision of this Agreement, the Program Terms Letter or the [****], and no consent withrespect to any departure by any Dealer therefrom, shall be effective unless the same shall be in writing and signed by Agent, Required Lenders (orby Agent with the consent of Required Lenders), and the Dealers, and then such waiver shall be effective only in the specific instance and for thespecific purpose for which given; provided, however, that no such waiver, amendment, or consent shall, unless in writing and signed by all theLenders directly affected thereby (or by Agent with the consent of all the Lenders directly affected thereby), in addition to Agent and RequiredLenders (or by Agent with the consent of Required Lenders) and the Dealers, do any of the following:

 (i) increase or extend the Allocation of any Lender to make a Loan or otherwise finance any Collateral;

(ii) postpone or delay any date fixed for, or reduce or waive, any scheduled installment of principal or any payment ofinterest, fees or other amounts (other than principal) due to any one or more Lenders hereunder or under any Transaction Statement, orextend the term of this Agreement as set forth in Section 19 below;

(iii) reduce the principal of, or the rate of interest specified herein or the amount of interest payable in cash specifiedherein or in any Transaction Statement, or of any fees or other amounts payable hereunder or under any Transaction Statement;

(iv) change the definition of Required Lenders;

(v) amend any provision providing for consent or other action by all Lenders; or

(vi) discharge any Dealer from its respective payment Obligations, or release all or substantially all of the Collateral,except as otherwise may be provided in this Agreement;

it being agreed that all Lenders shall be deemed to be directly affected by an amendment or waiver of the type described in the preceding clauses(iv), (v) and (vi).

 (b) If Agent desires to take any action described in this Section 17 requiring one or all Lender’s consent, Agent will furnish

Lender with a written notice specifying the action to be taken. If Lender declines to give its consent to any such action, it must notify Agent in writingof such fact within ten (10) Business Days thereafter. If Lender fails to give such notice within such ten (10) Business Day period, its consent tosuch action shall be deemed to have been not given.

 (c) No amendment, waiver or consent shall, unless in writing and signed by Agent, affect the rights or duties of Agent under this

Agreement or any Transaction Statement. 18. Dealers’ Claims Against Vendors . No Dealer will assert against Agent or any Lender any claim or defense such Dealer may have

against any Vendor whether for breach of contract, warranty, misrepresentation, failure to ship, lack of authority, or otherwise, including without limitation claimsor defenses based upon charge backs, credit memos, rebates, price protection payments or returns. Any such claims or defenses or other claims or defenses aDealer may have against a Vendor shall not affect Dealers’ liabilities or obligations to Agent or Lenders. 

19. Term and Termination . Unless sooner terminated as provided in this Agreement, the term of this Agreement shall commence on thedate hereof and continue until October 30 , 2020 and, if Agent provides written notice to Dealers of Agent’s intent to renew the current term at least (ninety) 90days 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 upto two successive one year periods thereafter. Upon termination of this Agreement, all Obligations shall become immediately due and payable without notice ordemand. Upon any termination, Dealers shall remain fully and jointly and severally liable to each Lender for all Obligations owed to such Lender, includingwithout limitation all fees, expenses and charges, arising prior to or after termination, and each Lender’s rights and remedies and security interest, if any, shallcontinue until all Obligations to such Lender hereunder are paid and all obligations of Dealers are performed in full. All waivers and indemnifications in Agent’sand each Lender’s favor, and the agreement to arbitrate, set forth in this Agreement will survive any termination of this Agreement. 

 Third Amended and Restated Inventory Financing Agreement 20 

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST. 

20. Assignments and Participations; Binding Effect.

(a) Binding Effect . This Agreement shall become effective when it shall have been executed by the Dealers, Agent and theLenders and when Agent shall have been notified by each Lender that such Lender has executed it. Thereafter, it shall be binding upon and inureto the benefit of, but only to the benefit of Dealers, Agent and each Lender and, in each case, their respective successors and permittedassigns. Except as expressly provided herein, no Dealer shall have the right to assign any rights or obligations hereunder or any interest herein.

(b) Right to Assign . Each Lender may sell, transfer, negotiate or assign (a “ Sale ”) all or a portion of its rights and obligationshereunder (including all or a portion of its Allocation and its rights and obligations with respect to any Loan pursuant to any Loan Document) to (i)any existing Lender, (ii) any Affiliate of any existing Lender or (iii) any other Person (other than a Disqualified Person) approved in writing by Agentand a Dealer, which Dealer approval shall not be unreasonably withheld and shall be deemed to have been given if no Dealer provides a responseto a request for approval within ten (10) Business Days after such request is sent (provided that no Dealer approval shall be required if any Defaulthas occurred and is continuing); provided, however, that (w) for each Loan pursuant to this Agreement or any Loan Document, the aggregateoutstanding principal amount (determined as of the effective date of the applicable assignment) of the Allocation subject to any such Sale shall be ina minimum amount of $5,000,000, unless such Sale is made to an existing Lender or an Affiliate of any existing Lender, is of the assignor’ s(together with its Affiliates) entire interest in such facility or is made with the prior consent of Agent, (x) such Sales shall be effective only upon theacknowledgement in writing of such Sale by Agent, and (y) interest accrued prior to and through the date of any such Sale may not be assigned. “DisqualifiedPerson” means any business competitor of any Dealer that is in the same or similar line of business as any Dealer (other than thebusiness of providing financial services) and such competitor has been identified as such in a writing by any Dealer delivered to Agent. In addition,notwithstanding anything to the contrary contained in this Section 20, any Lender may disclose on a confidential basis any non-public informationrelating to its Loans to any prospective assignee, SPV or rating agency rating the obligations of such Lender. Notwithstanding the foregoing, CDF,as Agent and/or a Lender, has the right to complete a Sale of all or any portion of its interest in the Loan and Loan Documents to any Person inconnection with a sale or other transfer of all or a material portion of CDF’s business to a third party, without the consent of any Dealer or anyLender.

(c) Procedure . The parties to each Sale made in reliance on clause (b) above (other than those described in clause (e) or (f)below) shall execute and deliver to Agent an Assignment via an electronic settlement system designated by Agent (or, if previously agreed withAgent, via a manual execution and delivery of the Assignment) evidencing such Sale, together with any existing Loan Document subject to suchSale, any tax forms required by the assignee to be delivered and payment of an assignment fee in the amount of $3,500 to Agent, unless waived orreduced by Agent; provided, that (i) if a Sale by a Lender is made to an Affiliate of such assigning Lender, then no assignment fee shall be due inconnection with such Sale, and (ii) if a Sale by a Lender is made to an assignee that is not an Affiliate of such assignor Lender, and concurrently toone or more Affiliates of such assignee, then only one assignment fee of $3,500 shall be due in connection with such Sale (unless waived orreduced by Agent). Upon receipt of all the foregoing, and conditioned upon such receipt and, if such Assignment is made in accordance with clause(iii) of subsection 20(b), upon Agent (and Dealers, if applicable) consenting to such Assignment, from and after the effective date specified in suchAssignment, Agent shall record or cause the information contained in such Assignment to be recorded in a record of ownership kept by Agent.

(d) Effectiveness . Subject to the recording of an Assignment by Agent in a record of ownership, (i) the assignee thereundershall become a party hereto and, to the extent that rights and obligations under this Agreement and the applicable Transactions Statement havebeen assigned to such assignee pursuant to such Assignment, shall have the rights and obligations of a Lender and (ii) the assignor thereundershall, to the extent that rights and obligations under this Agreement have been assigned by it pursuant to such Assignment, relinquish its rights(except for the payment in full of the Obligations) and be released from its obligations under this Agreement and the Transaction Statements, otherthan those relating to events or circumstances occurring prior to such assignment (and, in the case of an Assignment covering all or the remainingportion of an assigning Lender’s rights and obligations under the Loan Documents, such Lender shall cease to be a party hereto).

 Third Amended and Restated Inventory Financing Agreement 21 

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST. 

(e) Participants and Grant of Option to Fund to SPVs . In addition to the other rights provided in this Section 20, each Lendermay, (i) with notice to Agent, grant to an SPV the option to make all or any part of any Loan that such Lender would otherwise be required to makehereunder (and the exercise of such option by such SPV and the making of Loans pursuant thereto shall satisfy the obligation of such Lender tomake such Loans hereunder) and such SPV may assign to such Lender the right to receive payment with respect to any Obligation and (ii) withoutnotice to or consent from Agent or the Dealers, sell participations to one or more Persons in or to all or a portion of its rights and obligations underthe Loan Documents; provided, however, that, whether as a result of any term of any Loan Document or of such grant or participation, (A) no suchSPV or participant shall have a commitment, or be deemed to have made an offer to commit, to make Loans hereunder, and, except as provided inthe applicable option agreement, none shall be liable for any obligation of such Lender hereunder, (B) such Lender ’ s rights and obligations, andthe rights and obligations of the Dealers and other Lenders towards such Lender, under any Loan Document shall remain unchanged and eachother party hereto shall continue to deal solely with such Lender, which shall remain the holder of the Obligations in any register maintained byAgent, except that each such SPV may receive other payments that would otherwise be made to such Lender with respect to Loans funded by suchSPV to the extent provided in the applicable option agreement and set forth in a notice provided to Agent by such SPV and such Lender, provided,however, that in no case shall an SPV granted an option pursuant to this clause (e) or participant have the right to enforce any of the terms of anyLoan Document, and (C) the consent of such SPV or participant shall not be required (either directly, as a restraint on such Lender ’ s ability toconsent hereunder or otherwise) for any amendments, waivers or consents with respect to any Loan Document or to exercise or refrain fromexercising any powers or rights such Lender may have under or in respect of the Loan Documents (including the right to enforce or directenforcement of the Obligations), except for those described in clauses (ii), (iii) and (v) of Section 17(a) with respect to amounts, or dates fixed forpayment of amounts, to which such participant would otherwise be entitled.

(f) Assignments to Affiliate SPVs . In addition to the other rights provided elsewhere in this Section 20 , each Lender that is anAffiliate of the Agent may, with notice to Agent in such form as shall be acceptable to the Agent (but without the consent of any Person and withoutcompliance with any limitation or procedure specified in subsection 20(b) or 20(c) ), sell, transfer, negotiate or assign all or any portion of its rights,title or interests hereunder with respect to any Loans or other Obligations (including any interest accrued or to accrue thereon) to an SPV that is anAffiliate of such Lender, and such SPV may thereafter, with notice to Agent, assign such Obligation to any other SPV that is an Affiliate of suchLender or re-assign all or a portion of its interests in any Obligations to the Lender holding the related Allocation. Upon any assignment pursuant tothis clause (f), any assignee SPV shall have all the rights of a Lender hereunder, including the right to receive all payments with respect to theassigned Obligations; provided, however, that, whether as a result of any term of any Loan Document or of such assignment, no such assigneeSPV shall have a commitment, or be deemed to have made an offer to commit, to make Loans hereunder, and such Lender (and not such SPV)shall be liable for any obligation of such Lender to continue to make Loans hereunder.

(g) Agreements with Respect to SPVs . No party hereto shall institute against any SPV that funds or purchases any Obligationpursuant to clauses (e) or (f) any bankruptcy, reorganization, insolvency, liquidation or similar proceeding, prior to the date that is one year and oneday after the payment in full of all outstanding indebtedness of such SPV; provided, however, that each Lender having designated an SPV as suchagrees to indemnify each Indemnitee against any Liability that may be incurred by, or asserted against, such Indemnitee as a result of failing toinstitute such proceeding (including a failure to be reimbursed by such SPV for any such Liability). The agreement in the preceding sentence shallsurvive the termination of the Loans and the payment in full of the Obligations. In addition, notwithstanding anything to the contrary contained inthis Section 20, any SPV may disclose on a confidential basis any non-public information relating to its Loans to any rating agency rating theobligations of such SPV. For the avoidance of doubt, an SPV that is a securitization trust formed by or at the direction of a Lender or an Affiliate ofa Lender, as depositor, shall be deemed to be an Affiliate of such Lender.

(h) Participant Register . Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent ofthe Dealers, maintain a register on which it enters the name and address of each participant and the principal amounts (and stated interest) of eachparticipant’s interest in the Loans or other obligations under the Loan Documents (the “ ParticipantRegister”); provided that no Lender shall haveany obligation to disclose all or any portion of the Participant Register (including the identity of any participant or any information relating to aparticipant’s interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to any Person other than Agentexcept to the extent that such disclosure is necessary to establish that such commitment, loan, or other obligation is in registered form underSection 5f.103-1(c) of the

 Third Amended and Restated Inventory Financing Agreement 22 

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST. 

United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treateach Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreementnotwithstanding any notice to the contrary. For the avoidance of doubt, Agent shall have no responsibility for maintaining a Participant Register.

21. Agent

(a) Appointment and Duties.

(i) Each Lender hereby appoints CDF as Agent (together with any successor Agent pursuant to Section 21(i) ) asAgent hereunder and authorizes Agent to (A) execute and deliver this Agreement and the other Loan Documents and accept deliverythereof on its behalf from any Dealer, (B) take such action on its behalf and to exercise all rights, powers and remedies and perform theduties as are expressly delegated to Agent under such Loan Documents and (C) exercise such powers as are incidental thereto.

(ii) Without limiting the generality of clause (i) above, Agent shall have the sole and exclusive right and authority (tothe exclusion of the Lenders), and is hereby authorized, to (A) act as the disbursing and collecting agent for the Lenders with respect toall payments and collections arising in connection with any Loan Documents (including in bankruptcy, insolvency or similar proceeding),and each Person making any payment in connection with this Agreement or any other Loan Document is hereby authorized to make suchpayment to Agent, (B) file and prove claims and file other documents necessary or desirable to allow the claims of the Lenders withrespect to any Obligation in any bankruptcy, insolvency or similar proceeding (but not to vote, consent or otherwise act on behalf of suchPerson), (C) act as collateral agent for each Lender for purposes of the perfection of all Liens created by such agreements and all otherpurposes stated therein, (D) manage, supervise and otherwise deal with the Collateral, (E) take such other action as is necessary ordesirable to maintain the perfection and priority of the Liens created or purported to be created by this Agreement or the other LoanDocuments, (F) except as may be otherwise specified in any Loan Document, exercise all remedies given to Agent and the other Lenderswith respect to the Collateral, whether under the Loan Documents, applicable law or otherwise and (G) execute any amendment, consentor waiver under the Loan Documents on behalf of any Lender that has consented in writing to such amendment, consent or waiver;provided, however, that Agent hereby appoints, authorizes and directs each Lender to act as collateral sub-agent for Agent, the Lendersfor purposes of the perfection of Liens with respect to any deposit account maintained by a Dealer with, and cash and cash equivalentsheld by, such Lender, and may further authorize and direct the Lenders to take further actions as collateral sub-agents for purposes ofenforcing such Liens or otherwise to transfer the Collateral subject thereto to Agent, and each Lender hereby agrees to take such furtheractions to the extent, and only to the extent, so authorized and directed.

(iii) Under this Agreement and the other Loan Documents, Agent (A) is acting solely on behalf of the Lenders , withduties that are entirely administrative in nature, notwithstanding the use of the defined term “Agent”, the terms “agent”, “Agent” and“collateral agent” and similar terms in any Loan Document to refer to Agent, which terms are used for title purposes only, (B) is notassuming any obligation under any Loan Document other than as expressly set forth therein or any role as agent, fiduciary or trustee of orfor any Lender or any other Person and (C) shall have no implied functions, responsibilities, duties, obligations or other liabilities underany Loan Document, and each Lender, by accepting the benefits of the Loan Documents, hereby waives and agrees not to assert anyclaim against Agent based on the roles, duties and legal relationships expressly disclaimed in clauses (A) through (C) above.

(b) Binding Effect . Each Lender, by accepting the benefits of this Agreement and the other Loan Documents, agrees that (i)any action taken by Agent in accordance with the provisions of the Loan Documents, (ii) any action taken by Agent in reliance upon the instructionsof Lenders and (iii) the exercise by Agent or of the powers set forth herein or therein, together with such other powers as are incidental thereto, shallbe authorized and binding upon all of the Lenders.

 Third Amended and Restated Inventory Financing Agreement 23 

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST. 

(c) Use of Discretion.

(i) Agent shall not have any duty to take any discretionary action or exercise any discretionary powers, exceptdiscretionary rights and powers expressly contemplated hereby or by the other Loan Documents that Agent is required to exercise asdirected in writing by the Lenders; provided, that Agent shall not be required to take any action that, in its opinion or the opinion of itscounsel, may expose Agent to liability or that is contrary to any Loan Document or applicable law.

(ii) Agent shall not, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose,and shall not be liable for the failure to disclose, any information relating to any Dealer or Dealer Affiliate that is communicated to orobtained by Agent or any of its Affiliates in any capacity.

(iii) Notwithstanding anything to the contrary contained herein or in any other Loan Document, the authority toenforce rights and remedies hereunder and under the other Loan Documents against the Lenders or any of them shall be vestedexclusively in, and all actions and proceedings at law in connection with such enforcement shall be instituted and maintained exclusivelyby, Agent in accordance with the Loan Documents for the benefit of all the Lenders; provided that the foregoing shall not prohibit (A)Agent from exercising on its own behalf the rights and remedies that inure to its benefit (solely in its capacity as Agent) hereunder andunder the other Loan Documents or (B) any Lender from filing proofs of claim or appearing and filing pleadings on its own behalf duringthe pendency of a proceeding relative to any Dealer under any bankruptcy or other debtor relief law; and provided further that if at anytime there is no Person acting as Agent hereunder and under the other Loan Documents, then the Lenders shall have the rightsotherwise ascribed to Agent under Section 13 .

(d) Delegation of Rights and Duties . Agent may, upon any term or condition it specifies, delegate or exercise any of its rights,powers and remedies under, and delegate or perform any of its duties or any other action with respect to, any Loan Document by or through anytrustee, co-agent, employee, attorney-in-fact and any other Person (including any Lender). Any such Person shall benefit from this Section 21 tothe extent provided by Agent. For the avoidance of doubt, this provision is not intended to permit Agent to be replaced hereunder.

(e) Reliance and Liability.

(i) Agent may, without incurring any liability hereunder, (A) consult with any of its Related Persons (including advisorsto, and accountants and experts engaged by, any Dealer) and (B) rely and act upon any document and information (including thosetransmitted by electronic transmission) and any telephone message or conversation, in each case believed by it to be genuine andtransmitted, signed or otherwise authenticated by the appropriate parties.

(ii) None of Agent and its Affiliates shall be liable for any action taken or omitted to be taken by any of them under orin connection with any Loan Document, and each Lender and each Dealer hereby waive and shall not assert (and each Dealer shallcause each other Dealer to waive and agree not to assert) any right, claim or cause of action based thereon, except to the extent ofliabilities resulting primarily from the gross negligence or willful misconduct of Agent or, as the case may be, such Related Person (eachas determined in a final, non-appealable judgment by a court of competent jurisdiction) in connection with the duties expressly set forthherein. Without limiting the foregoing, Agent:

(A) shall not be responsible or otherwise incur liability for any action or omission taken in reliance uponthe instructions of the Lenders or for the actions or omissions of any of its Related Persons selected with reasonable care(other than employees, officers and directors of Agent, when acting on behalf of Agent);

 (B) shall not be responsible to any Lender or other Person for the due execution, legality, validity,

enforceability, effectiveness, genuineness, sufficiency or value of, or the attachment, perfection or priority of any Lien createdor purported to be created under or in connection with, any Loan Document;

 

 Third Amended and Restated Inventory Financing Agreement 24 

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST. 

(C) makes no warranty or representation, and shall not be responsible, to any Lender or other Person forany statement, document, information, representation or warranty made or furnished by or on behalf of any Dealer or anyRelated Person of any Dealer in connection with any Loan Document or any transaction contemplated therein or any otherdocument or information with respect to any Dealer, whether or not transmitted or (except for documents expressly requiredunder any Loan Document to be transmitted to the Lenders) omitted to be transmitted by Agent, including as to completeness,accuracy, scope or adequacy thereof, or for the scope, nature or results of any due diligence performed by Agent inconnection with the Loan Documents;

 (D) shall not have any duty to ascertain or to inquire as to the performance or observance of any

provision of any Loan Document, whether any condition set forth in any Loan Document is satisfied or waived, as to thefinancial condition of any Dealer or as to the existence or continuation or possible occurrence or continuation of any Defaultand shall not be deemed to have notice or knowledge of such occurrence or continuation unless it has received a notice fromany Dealer, any Lender describing such Default clearly labeled “notice of default” (in which case Agent shall promptly givenotice of such receipt to all Lenders);

 For each of the items set forth in clauses (A) through (D) above, each Lender and each Dealer hereby waives and agrees notto assert (and each Dealer shall cause each other Dealer to waive and agree not to assert) any right, claim or cause of actionit might have against Agent based thereon. (iii) Each Lender (A) acknowledges that it has performed and will continue to perform its own diligence and has made

and will continue to make its own independent investigation of the operations, financial conditions and affairs of the Lenders and (B)agrees that is shall not rely on any audit or other report provided by Agent or its Related Persons (an “ AgentReport”). Each Lenderfurther acknowledges that any Agent Report (i) is provided to the Lenders solely as a courtesy, without consideration, and based upon theunderstanding that such Lender will not rely on such Agent Report, (ii) was prepared by Agent or its Related Persons based uponinformation provided by the Lenders solely for Agent’s own internal use, (iii) may not be complete and may not reflect all information andfindings obtained by Agent or its Related Persons regarding the operations and condition of the Lenders. Neither Agent nor any of itsRelated Persons makes any representations or warranties of any kind with respect to (i) any existing or proposed financing, (ii) theaccuracy or completeness of the information contained in any Agent Report or in any related documentation, (iii) the scope or adequacyof Agent’s and its Related Persons’ due diligence, or the presence or absence of any errors or omissions contained in any Agent Reportor in any related documentation, and (iv) any work performed by Agent or Agent’ s Related Persons in connection with or using any AgentReport or any related documentation.

(iv) Neither Agent nor any of its Related Persons shall have any duties or obligations in connection with or as a resultof any Lender receiving a copy of any Agent Report. Without limiting the generality of the forgoing, neither Agent nor any of its RelatedPersons shall have any responsibility for the accuracy or completeness of any Agent Report, or the appropriateness of any Agent Reportfor any Lender’s purposes, and shall have no duty or responsibility to correct or update any Agent Report or disclose to any Lender anyother information not embodied in any Agent Report, including any supplemental information obtained after the date of any AgentReport. Each Lender releases, and agrees that it will not assert, any claim against Agent or its Related Persons that in any way relates toany Agent Report or arises out of any Lender having access to any Agent Report or any discussion of its contents, and agrees toindemnify and hold harmless Agent and its Related Persons from all claims, liabilities and expenses relating to a breach by any Lenderarising out of such Lender’ s access to any Agent Report or any discussion of its contents.

 Third Amended and Restated Inventory Financing Agreement 25 

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST. 

(f) Agent Individually . Agent and its Affiliates may make loans and other extensions of credit to, acquire Stock of, engage inany kind of business with, any Dealer or Affiliate thereof as though it were not acting as Agent and may receive separate fees and other paymentstherefor. To the extent Agent or any of its Affiliates makes any Loan or otherwise becomes a Lender hereunder, it shall have and may exercise thesame rights and powers hereunder and shall be subject to the same obligations and liabilities as any other Lender and the term “ Lender ” and anysimilar terms shall, except where otherwise expressly provided in any Loan Document, include, without limitation, Agent or such Affiliate, as thecase may be, in its individual capacity as Lender.

(g) Lender Credit Decision . Each Lender acknowledges that it shall, independently and without reliance upon Agent, anyLender or any of their Related Persons or upon any document (including any offering and disclosure materials in connection with the syndication ofthe Loans) solely or in part because such document was transmitted by Agent or any of its Related Persons, conduct its own independentinvestigation of the financial condition and affairs of each Dealer and make and continue to make its own credit decisions in connection withentering into, and taking or not taking any action under, any Loan Document or with respect to any transaction contemplated in any LoanDocument, in each case based on such documents and information as it shall deem appropriate. Except for documents expressly required by anyLoan Document to be transmitted by Agent to the Lenders, Agent shall not have any duty or responsibility to provide any Lender with any credit orother information concerning the business, prospects, operations, property, financial and other condition or creditworthiness of any Dealer or anyAffiliate of any Dealer that may come in to the possession of Agent or any of its Related Persons.

(h) Expenses; Indemnities; Withholding.

(i) Each Lender agrees to reimburse Agent and each of its Related Persons (to the extent not reimbursed by anyDealer) promptly upon demand, severally and ratably, for any costs and expenses (including fees, charges and disbursements offinancial, legal and other advisors and other expenses paid in the name of, or on behalf of, any Dealer) that may be incurred by Agent orany of its Related Persons in connection with the preparation, syndication, execution, delivery, administration, modification, consent,waiver or enforcement of, or the taking of any other action (whether through negotiations, through any work-out, bankruptcy, restructuringor other legal or other proceeding (including, without limitation, preparation for and/or response to any subpoena or request for documentproduction relating thereto) or otherwise) in respect of, or legal advice with respect to its rights or responsibilities under, any LoanDocument.

(ii) Each Lender further agrees to indemnify Agent and each of its Related Persons (to the extent not reimbursed byany Dealer), severally and ratably, from and against Liabilities (including, to the extent not indemnified by Dealer pursuant to thisAgreement or any other Loan Document, taxes, interests and penalties imposed for not properly withholding or backup withholding onpayments made to or for the account of any Lender) that may be imposed on, incurred by or asserted against Agent or any of its RelatedPersons in any matter relating to or arising out of, in connection with or as a result of any Loan Document or any other act, event ortransaction related, contemplated in or attendant to any such document, or, in each case, any action taken or omitted to be taken byAgent or any of its Related Persons under or with respect to any of the foregoing; provided, however, that no Lender shall be liable toAgent or any of its Related Persons to the extent such liability has resulted primarily from the gross negligence or willful misconduct ofAgent or, as the case may be, such Related Person, as determined by a court of competent jurisdiction in a final non-appealablejudgment or order.

(iii) To the extent required by any applicable law, Agent may withhold from any payment to any Lender under a LoanDocument an amount equal to any applicable withholding tax. If the IRS or any other Governmental Authority asserts a claim that Agentdid not properly withhold tax from amounts paid to or for the account of any Lender (because the appropriate certification form was notdelivered, was not properly executed, or fails to establish an exemption from, or reduction of, withholding tax with respect to a particulartype of payment, or because such Lender failed to notify Agent or any other Person of a change in circumstances which rendered theexemption from, or reduction of, withholding tax ineffective, or for any other reason), or Agent reasonably determines that it was requiredto withhold taxes from a prior payment but failed to do so, such Lender shall promptly indemnify Agent fully for all amounts paid, directlyor indirectly, by such Agent as tax or otherwise, including penalties and interest, and together with all expenses incurred by Agent,including legal expenses, allocated internal costs and out-of-pocket expenses. Agent may offset against any payment to any Lenderunder a Loan Document, any applicable withholding tax that was required to be withheld from any prior payment to such Lender butwhich was not so withheld, as well as any other amounts for which Agent is entitled to indemnification from such Lender pursuant to thisAgreement or any other Loan Document.

 Third Amended and Restated Inventory Financing Agreement 26 

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST. 

(i) Release of Collateral or Guarantors . Each Lender hereby consents to the release and hereby directs Agent to release (or,in the case of clause (ii) below, release or subordinate) any Lien held by Agent for the benefit of the Lenders against (i) any Collateral that is sold,transferred, conveyed or otherwise disposed of by a Dealer in a transaction permitted by the Loan Documents (including pursuant to a waiver orconsent), (ii) any property subject to a Lien permitted as a “ purchase money security interest ” hereunder or under any other Loan Document, and(iii) all of the Collateral and all Lenders, upon (A) termination of this Agreement, (B) payment and satisfaction in full of all Loans and all otherObligations under the Loan Documents that Agent has theretofore been notified in writing by the holder of such Obligation are then due andpayable, (C) deposit of cash collateral with respect to all contingent Obligations, in amounts and on terms and conditions and with partiessatisfactory to Agent and each Lender that is, or may be, owed such Obligations (excluding contingent Obligations as to which no claim has beenasserted) and (D) to the extent requested by Agent, receipt by Agent and the Lenders of liability releases from the Lenders each in form andsubstance acceptable to Agent.

22. Non-Funding Lenders; Replacement of Lenders.

(a) Non-Funding Lenders .

(i) Responsibility . The failure of any Non-Funding Lender to make any Loan or any payment required by it under anyLoan Document on the date specified therefor shall not relieve any other Lender (each such other Lender, an “ OtherLender”) of its obligations tomake such Loan or make any other such required payment on such date, and neither Agent nor, other than as expressly set forth herein, any OtherLender shall be responsible for the failure of any Non-Funding Lender to make a Loan or make any other required payment under any LoanDocument.

(ii) Voting Rights . Notwithstanding anything set forth herein to the contrary, a Non-Funding Lender shall not haveany voting or consent rights under or with respect to any Loan Document or constitute a “Lender” (or be, or have its Loans included in thedetermination of “Required Lenders”) for any voting or consent rights under or with respect to any Loan Document, provided that (A) the Allocation ofa Non-Funding Lender may not be increased, extended or reinstated, (B) the principal of a Non-Funding Lender’s Loans may not be reduced orforgiven, and (C) the interest rate applicable to Obligations owing to a Non-Funding Lender may not be reduced in such a manner that by its termsaffects such Non-Funding Lender more adversely than other Lenders, in each case without the consent of such Non-Funding Lender.

(iii) Payments to a Non-Funding Lender . Agent shall be authorized to use all payments received by Agent for thebenefit of any Non-Funding Lender pursuant to this Agreement to pay in full the Aggregate Excess Funding Amount to the appropriateLenders. Following such payment in full of the Aggregate Excess Funding Amount, Agent shall be entitled to hold such funds as cash collateral in anon-interest bearing account up to an amount equal to such Non-Funding Lender’s unfunded Allocation and to use such amount to pay such Non-Funding Lender’s funding obligations hereunder until the Obligations are paid in full in cash and this Agreement terminated. Upon any suchunfunded obligations owing by a Non-Funding Lender becoming due and payable, Agent shall be authorized to use such cash collateral to makesuch payment on behalf of such Non-Funding Lender. With respect to such Non-Funding Lender’s failure to fund Loans, any amounts applied byAgent to satisfy such funding shortfalls shall be deemed to constitute a Loan and, if necessary to effectuate the foregoing, the proceeds of suchLoans shall be applied to pay the unpaid principal of the Loans owing to the other Lenders until such time as the aggregate amount of the Loans areheld by the Lenders in accordance with their Ratable Shares. Any amounts owing by a Non-Funding Lender to Agent which are not paid when dueshall accrue interest at the interest rate applicable during such period to the Loans. In the event that Agent is holding cash collateral of a Non-Funding Lender that cures pursuant to clause (iv) below or ceases to be a Non-Funding Lender pursuant to the definition of Non-Funding Lender,Agent shall return the unused portion of such cash collateral to such Lender.

(iv) Cure . A Lender may cure its status as a Non-Funding Lender under clause (a) of the definition of Non-FundingLender if such Lender (A) fully pays to Agent the Aggregate Excess Funding Amount, plus all interest due thereon and (B) timely funds the next Loanrequired to be funded by such Lender or makes the next reimbursement required to be made by such Lender. Any such cure shall not relieve anyLender from liability for breaching its contractual obligations hereunder.

 Third Amended and Restated Inventory Financing Agreement 27 

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST. 

(v) Fees . A Lender that is a Non-Funding Lender pursuant to clause (a) of the definition of Non-Funding Lendershall not earn and shall not be entitled to receive, and the Dealers shall not be required to pay, such Lender ’ s portion of the Unused Line Fee (setforth in the Program Terms Letter) during the time such Lender is a Non-Funding Lender pursuant to clause (a) thereof.

(b) Replacement of Lenders . Within forty-five (45) days after any failure by any Lender other than Agent or an Affiliate of Agentto consent to a requested amendment, waiver or modification to any Loan Document in which Required Lenders have already consented to such amendment,waiver or modification but the consent of each Lender (or each Lender directly affected thereby, as applicable) is required with respect thereto, Dealers may, attheir option, notify Agent and such non-consenting Lender of Dealers’ intention to obtain, at Dealers’ expense, a replacement Lender (“ ReplacementLender”)for such non-consenting Lender, which Replacement Lender shall be reasonably satisfactory to Agent. In the event the Dealers obtain a Replacement Lenderwithin sixty (60) days following notice of its intention to do so, such non-consenting Lender shall sell and assign its Loans and remaining Allocation to suchReplacement Lender, at par, provided that the Dealers have reimbursed such non-consenting Lender for its costs for which it is entitled to reimbursement underthis Agreement through the date of such sale and assignment. In the event that a replaced Lender does not execute an Assignment pursuant to Section 20(c) ofthis Agreement within five (5) Business Days after receipt by such replaced Lender of notice of replacement pursuant to this section and presentation to suchreplaced Lender of an Assignment evidencing an assignment pursuant to this section, the Dealers shall be entitled (but not obligated) to execute such anAssignment on behalf of such replaced Lender, and any such Assignment so executed by the Dealers, the Replacement Lender and Agent, shall be effective forpurposes of this Section 22(b) and Section 20(c). Upon any such Assignment and payment and compliance with the other provisions of Section 20(c), suchreplaced Lender shall no longer constitute a “Lender” for purposes hereof; provided, any rights of such replaced Lender to indemnification hereunder shallsurvive. 

23. Notices . Except as required by law or as otherwise provided herein, all notices or other communications to be given under theAgreement or under the UCC shall be in writing served either personally, by deposit with a reputable overnight courier with charges prepaid, or by deposit in theUnited States mail, first‑class postage prepaid or provided for, addressed, as applicable, to (a) Dealers at their chief executive offices shown below or to anyoffice to which Agent sends billing statements, (b) to Agent at its address shown beneath its signature hereunder, to the attention of its Credit Department, (c) toany Lender at the address such Lender shall designate on the Loan Document, or (d) at such other address designated by such party by notice to theother. Any such communication shall be deemed to have been given upon delivery in the case of personal delivery, one Business Day after deposit with anovernight courier or three (3) Business Days after deposit in the United States mail except that any notice of change of address shall not be effective untilactually received.  

24. Severability . If any provision of this Agreement or its application is invalid or unenforceable, the remainder of this Agreement will not beimpaired or affected and will remain binding and enforceable. 

25. Receipt of Agreement . Each Dealer acknowledges that it has received a true and complete copy of this Agreement. Each Dealer hasread and understands this Agreement. Notwithstanding anything herein to the contrary, Agent and each Lender may rely on any facsimile copy, electronic datatransmission, or electronic data storage of: this Agreement, any Transaction Statement, billing statement, financing statement, authorization to pre-file financingstatements, invoice from a Vendor, financial statements or other reports, which will be deemed an original, and the best evidence thereof for all purposes. 

26. Acceptance by Agent . If Agent is the sole Lender, Agent may accept this Agreement by issuance of an approval to a Vendor for thepurchase of inventory by Dealers or by making an advance hereunder.  

27. Miscellaneous . Time is of the essence regarding each Dealer’s performance of its obligations to Agent and Lenders. Each Dealer’sliability to Agent and Lenders is direct and unconditional and will not be affected by the release or nonperfection of any security interest granted hereunder.Subject to the consent of each Lender, Agent may refrain from or postpone enforcement of this Agreement or any other agreements between Agent and aDealer without prejudice, and the failure to strictly enforce these agreements will not create a course of dealing which waives, amends or modifies suchagreements. Any waiver by Agent of a Default shall only be effective if approved by Lenders pursuant to Section 17(a) and transmitted to a Dealer in a writingsigned by Agent. The express terms of this Agreement will not be modified by any course of dealing, usage of trade, or custom of trade which may deviate fromthe terms hereof. If a Dealer fails to pay any taxes, fees or other obligations which may materially impair Agent’s or any Lender’s interest in the Collateral, orfails to keep any Collateral insured, Agent, on behalf of itself and the other Lenders, may, but shall not be required to, pay such amounts. Such paid amountswill be: (a) additional Obligations which Dealers owe under this Agreement, which are subject to finance charges as provided herein and shall be secured by theCollateral; and (b) due and payable immediately in full upon demand to Dealers. Section titles used herein are for convenience only, and do not define or limitthe contents of any Section. All words used herein shall be understood and construed to be of such number and gender as the circumstances may require.

 Third Amended and Restated Inventory Financing Agreement 28 

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST. This Agreement may be validly executed in one or more multiple counterpart signature pages. This Agreement shall be construed without presumption for oragainst any party who drafted all or any portion of this Agreement. No modification of this Agreement shall bind Agent or Lenders unless in a writing signed byAgent and each Lender (or by Agent with the consent of each Lender) and transmitted to Dealers. Among other symbols, Agent hereby adopts “ Wells FargoCommercial Distribution Finance, LLC, ” “ Wells Fargo Commercial Distribution Finance, ” “ WFCDF, ” “ CDF ” or “ Agent ” as evidence of its intent toauthenticate a record in its capacity as Agent.  

28. List of Dealers . The following persons are parties to this Agreement as Dealers: 

DEALER NAME TYPE OF ENTITY JURISDICTIONMarineMax, Inc.   corporation   FloridaMarineMax East, Inc.   corporation   DelawareMarineMax Services, Inc.   corporation   DelawareMarineMax Northeast, LLC   limited liability company   DelawareBoating Gear Center, LLC   limited liability company   DelawareUS Liquidators, LLC   limited liability company   DelawareNewcoast Financial Services, LLCMy Web Services, LLCMarineMax Charter Services, LLC[****]

  limited liability companylimited liability companylimited liability companylimited liability company

  DelawareDelawareDelawareFlorida

 29. Limitation of Remedies and Damages . In the event there is any dispute under this Agreement, the aggrieved party shall not be entitled

to exemplary or punitive damages so that the aggrieved party’s remedy in connection with any action arising under or in any way related to this Agreement shallbe limited to a breach of contract action and any damages in connection therewith are limited to actual and direct damages, except that Agent may seekequitable relief in connection with any judicial repossession of, or temporary restraining order with respect to, the Collateral. 

30. BINDING ARBITRATION . 

(a) Arbitrable Claims . Except as otherwise specified below, all actions, disputes, claims and controversies under common law,statutory law or in equity of any type or nature whatsoever, whether arising before or after the date of this Agreement, and whether directly orindirectly relating to: (i) this Agreement and/or any amendments and addenda hereto, or the breach, invalidity or termination hereof; (ii) any previousor subsequent agreement between Agent and any one or more Lenders and/or any one or more Dealers; (iii) any act committed by Agent or by anyparent company, subsidiary or affiliated company of Agent (the “ AgentCompanies”), or by any employee, agent, officer or director of an AgentCompany whether or not arising within the scope and course of employment or other contractual representation of the Agent Companies providedthat such act arises under a relationship, transaction or dealing between and any one or more Lenders and/or any one or more Dealers; and/or (iv)any other relationship, transaction or dealing between or among Agent and any one or more Dealers (collectively the “ Disputes”), will be subjectto and resolved by binding arbitration. Notwithstanding the foregoing, the parties agree that either party may pursue claims against the other thatdo not exceed Fifteen Thousand Dollars ($15,000.00) in the aggregate in a court of competent jurisdiction. Service of arbitration claims shall beacceptable if made by U.S. mail or overnight delivery to the address for the party described herein.

 (b) Administrative Body . All arbitration hereunder will be conducted in accordance with the Commercial Arbitration Rules of

either: (i) The American Arbitration Association (“ AAA ”); or (ii) United States Arbitration & Mediation (“ USA&M ”). The party first filing anarbitration claim shall designate which arbitration forum and rules are to be applied for all disputes between the parties. The arbitration rules arecurrently found at www.adr.org for AAA, and at www.usam-midwest.com for USA&M. AAA claims may be filed in any AAA office. Claims filed withUSA&M shall be filed in its Midwest office located at 720 Olive Street, Suite 2020, St. Louis, Missouri 63101. All arbitrator(s) selected will beattorneys with at least five (5) years secured transactions experience. A panel of three arbitrators shall hear all claims exceeding One MillionDollars ($1,000,000.00), exclusive of interest, costs and attorneys’ fees. The arbitrator(s) will decide if any inconsistency exists between the rules ofthe applicable arbitral forum and the arbitration provisions contained herein. If such inconsistency exists, the arbitration provisions contained hereinwill control and supersede such rules. The arbitrator shall follow the terms of this Agreement and the applicable law, including without limitation, theattorney-client privilege and the attorney work product doctrine.

  

 Third Amended and Restated Inventory Financing Agreement 29 

 (c) Hearings . Each party hereby consents to a documentary hearing for all arbitration claims by submitting the dispute to the

arbitrator(s) by written briefs and affidavits, along with relevant documents. However, arbitration claims will be submitted by way of an oral hearing ifany party requests an oral hearing within forty (40) days after service of the claim and that party remits the appropriate deposit for fees andarbitrator compensation within ten (10) days of making the request. Each party agrees that failure to timely pay all fees and arbitratorcompensation billed to the party requesting the oral hearing will be deemed such party ’ s consent to submitting the Dispute to the arbitrator ondocuments and such party ’ s waiver of its request for an oral hearing. The site of all oral arbitration hearings will be in the Division of the FederalJudicial District in which the designated arbitration association maintains a regional office that is closest to Dealers.

 (d) Discovery . Discovery permitted in any arbitration proceeding commenced hereunder is limited as follows. No later than

forty (40) days after the filing and service of a claim for arbitration, the parties in contested cases will exchange detailed statements setting forth thefacts supporting the claim(s) and all defenses to be raised during the arbitration, and a list of all exhibits and witnesses. No later than twenty-one(21) days prior to the oral arbitration hearing, the parties will exchange a final list of all exhibits and all witnesses, including any designation of anyexpert witness(es) together with a summary of their testimony; a copy of all documents and a detailed description of any property to be introducedat the hearing. Under no circumstances will the use of interrogatories, requests for admission, requests for the production of documents or thetaking of depositions be permitted. However, in the event of the designation of any expert witness(es), the following will occur: (i) all information anddocuments relied upon by the expert witness(es) will be delivered to the opposing party; (ii) the opposing party will be permitted to depose theexpert witness(es); (iii) the opposing party will be permitted to designate rebuttal expert witness(es); and (iv) the arbitration hearing will be continuedto the earliest possible date that enables the foregoing limited discovery to be accomplished.

 (e) Exemplary or Punitive Damages . The arbitrator(s) will not have the authority to award exemplary or punitive damages.

 (f) Confidentiality of Awards . All arbitration proceedings, including testimony or evidence at hearings, will be kept confidential,

although any award or order rendered by the arbitrator(s) pursuant to the terms of this Agreement may be confirmed as a judgment or order in anystate or federal court of competent jurisdiction within the federal judicial district which includes the residence of the party against whom such awardor order was entered. This Agreement concerns transactions involving commerce among the several states. The Federal Arbitration Act, Title 9U.S.C. Sections 1 et seq., as amended (“ FAA”) will govern all arbitration(s) and confirmation proceedings hereunder.

 (g) Prejudgment and Provisional Remedies . Nothing herein will be construed to prevent Agent’s or a Dealer’s use of

bankruptcy, receivership, injunction, repossession, replevin, claim and delivery, sequestration, seizure, attachment, foreclosure, and/or any otherprejudgment or provisional action or remedy relating to any Collateral for any current or future debt owed by either party to the other. Any suchaction or remedy will not waive Agent’s or a Dealer’s right to compel arbitration of any Dispute.

 (h) Attorneys’ Fees . If either a Dealer or Agent brings any other action for judicial relief with respect to any Dispute (other than

those set forth in Sections 30(a) or 30(g) of this Agreement), the party bringing such action will be liable for and immediately pay all of the otherparty’s costs and expenses (including attorneys’ fees) incurred to stay or dismiss such action and remove or refer such Dispute to arbitration. Ifeither a Dealer or Agent brings or appeals an action to vacate or modify an arbitration award and such party does not prevail, such party will pay allcosts and expenses, including attorneys’ fees, incurred by the other party in defending such action. Additionally, if a Dealer sues Agent or institutesany arbitration claim or counterclaim against Agent in which Agent is the prevailing party, Dealers will pay all costs and expenses (includingattorneys’ fees) incurred by Agent in the course of defending such action or proceeding.

  

 Third Amended and Restated Inventory Financing Agreement 30 

   

(i) Limitations . Any arbitration proceeding must be instituted: (i) with respect to any Dispute for the collection of any debt owedby either party to the other, within two (2) years after the date the last payment by or on behalf of the payor was received and applied in respect ofsuch debt by the payee; and (ii) with respect to any other Dispute, within two (2) years after the date the incident giving rise thereto occurred,whether or not any damage was sustained or capable of ascertainment or either party knew of such incident. Failure to institute an arbitrationproceeding within such period will constitute an absolute bar and waiver to the institution of any proceeding, whether arbitration or a courtproceeding, with respect to such Dispute. Notwithstanding the foregoing, this limitations provision will be suspended temporarily as of the date anyof the following events occur and will not resume until the date following the date either party is no longer subject to (A) bankruptcy, (B)receivership, (C) any proceeding regarding an assignment for the benefit of creditors, or (D) any legal proceeding, civil or criminal, which prohibitseither party from foreclosing any interest it might have in the collateral of the other party.

 (j) Survival After Termination . The agreement to arbitrate will survive the termination of this Agreement.

31. Multiple Dealers; Joint and Several Liability; Designation of Authorized Representatives . 

(a) All Loans and advances by Lenders to any Dealer and all other Obligations of any Dealer shall constitute one generalobligation of all of the Dealers. Notwithstanding anything herein to the contrary, the Dealers shall be primarily and jointly and severally liable for allObligations of any Dealer under this Agreement and any other Loan Document. Notwithstanding the foregoing, if and to the extent a Dealer isdeemed to be a guarantor of another Dealer hereunder, such Dealer’s liability for any credit extended to or for the benefit of such other Dealer shallbe deemed to be a guaranty of payment and performance, and not merely a guaranty of collection. To the fullest extent permitted by law, eachDealer hereby waives promptness, diligence, notice of acceptance, and any other notices of any nature whatsoever with respect to any of theObligations, and any requirement that Agent protect, secure, perfect or insure any security interest or lien or any property subject thereto or exhaustany right or take any action against any other Dealer, any other Person or any Collateral. Each Dealer agrees that any rights of subrogation,indemnification, reimbursement or any similar rights it may have against any other Dealer with respect to its liability hereunder or otherwise, whethersuch rights arise under an express or implied contract or by operation of law, shall be subject, junior and subordinate in all respect to all Obligationsof such Dealer under this Agreement and any other Loan Document and that the enforcement of such rights shall be stayed until such time as theDealers shall have indefeasibly paid in full all of the Obligations and neither Agent nor any Lender shall be under any duty to make a Loan to or forthe benefit of any Dealer. The liability of each Dealer shall be absolute and unconditional irrespective of (i) any change in the time, manner or placeof payment of, or in any other term of, any of the Obligations, or any other amendment or waiver of or any consent to departure from this Agreementor any other agreement between or among Agent, Dealers and, if applicable, Lenders (ii) any exchange, release or non-perfection of any Collateralor any release or amendment or waiver of or consent to departure from any other guaranty or any release of any guarantor or any other Personliable in whole or in part for all or any of the Obligations, (iii) the disallowance or avoidance of all or any portion the claim(s) of Agent or any Lenderfor repayment of the Obligations of any guarantor to Agent or any interest of Agent or any Lender in any security for such Obligations, or (iv) anyother circumstance which might otherwise constitute a defense available to, or discharge of, a Dealer or a guarantor or any other surety.

 (b) Each Dealer (each, a “ Principal ”) hereby appoints each other Dealer (each, a “ Dealer Representative ”) as the

Principal’s agent and attorney-in-fact (1) to take any action, (2) to execute any document or instrument, (3) to consent or agree to any amendmentor other modification of this Agreement and/or any other agreements between or among any one or more of the Dealers and Lender and/or anywaiver of or departure from any of the terms hereof or thereof, (4) to perform any Obligation of the Principal, and (5) to give or receive any notice byor to any Dealer hereunder or thereunder; and in each case without regard to whether any such action is done in the name of a DealerRepresentative or a Principal and, if done in the name of a Dealer Representative, without regard to whether such Dealer Representative’s capacityas agent or attorney-in-fact is so designated. Without limiting the generality of the foregoing, an Dealer Representative may request extensions ofcredit to or on behalf of any one or more of the Dealers and/or incur any other Obligations for the account of any one or more of the Dealers, and inany such event all of the Dealers shall be fully and jointly and severally bound by and liable for the actions of such Dealer Representative. Lendershall be entitled to rely absolutely and without duty of inquiry or investigation upon any agreement, request, communication or other notice given bya Dealer Representative under this Agreement and/or any other agreements between or among any one or more of the Dealers and Lender(including without limitation, any request by a Dealer Representative to make credit extensions to or on behalf of itself and/or any one or more otherDealers) until three (3) Business Days after Lender shall have received written notice from each Principal of the revocation of this agency andpower of attorney, which revocation shall constitute a Default.

 Third Amended and Restated Inventory Financing Agreement 31 

  

(c) Each Dealer hereby authorizes any officer (and the Cash Manager and Treasury Manager in connection with (i) remittancesto and from the [****], and (ii) requests pre-owned inventory advances pursuant to Section 2(b) of this Agreement) to act on behalf of such Dealer inconnection with this Agreement, the certificates and documents contemplated hereby, and the transactions referenced herein and therein. Agentand each Lender shall be entitled to rely absolutely and without duty of inquiry or investigation upon any agreement, request, communication orother notice given by such authorized persons under this Agreement and/or any other agreements between or among any one or more of theDealers and Agent (including without limitation, any request by such authorized representative to make credit extensions to or on behalf of suchDealer) until three (3) Business Days after Agent shall have received written notice from such Dealer of the revocation of such Person’s authorityand the identity of each additional Person authorized to act on behalf of such Dealer thereafter.

 32. Governing Law . This Agreement and all agreements between or among Agent and any one or more Lenders and/or any one or more

Dealers have been substantially negotiated and will be substantially performed in the state of Illinois. All Disputes will be governed by, and construed inaccordance with, the laws of such state, except to the extent inconsistent with the provisions of the FAA, which will control and govern all arbitration proceedingshereunder. 

33. INVALIDITY/UNENFORCEABILITY OF BINDING ARBITRATION . IF THIS AGREEMENT IS FOUND TO BE NOT SUBJECT TOARBITRATION, ANY LEGAL PROCEEDING WITH RESPECT TO ANY DISPUTE WILL BE TRIED IN A COURT OF COMPETENT JURISDICTION BY AJUDGE WITHOUT A JURY. DEALERS AND AGENT WAIVE ANY RIGHT TO A JURY TRIAL IN ANY SUCH PROCEEDING. SIMILARLY, IF THISAGREEMENT OR A PARTICULAR DISPUTE HEREUNDER IS NOT SUBJECT TO ARBITRATION, DEALERS HEREBY CONSENT TO THE JURISDICTIONOF ANY LOCAL, STATE OR FEDERAL COURT LOCATED WITHIN ILLINOIS AND WAIVE ANY OBJECTION WHICH DEALERS MAY HAVE BASED ONIMPROPER VENUE OR FORUM NON CONVENIENS TO THE CONDUCT OF ANY ACTION OR PROCEEDING IN ANY SUCH COURT. 

 

 Third Amended and Restated Inventory Financing Agreement 32 

 [Remainder of page blank]

  

 Third Amended and Restated Inventory Financing Agreement 33 

 T HIS CONTRACT CONTAINS BINDING ARBITRATION,

JURY WAIVER AND PUNITIVE DAMAGE WAIVER PROVISIONS.  DATED AS OF THE DATE FIRST ABOVE WRITTEN MARINEMAX, INC.,a Florida corporation

 

  

 

By: /s/ Michael H. McLamb  Print Name: Michael H. McLamb  Title: Executive Vice President, Chief Financial Officer, Secretary  Tax ID: 59-3496957  Org. ID (if any): 2849981 8100  Chief Executive Office and Principal Place of Business: 2600 McCormick Drive  Clearwater, FL 33759 MARINEMAX EAST, INC.,a Delaware corporation

 

  

 

By: /s/ Michael H. McLamb  Print Name: Michael H. McLamb  Title: President, Secretary, Treasurer  Tax ID: 94-3382331  Org. ID (if any): 3332179 8100  Chief Executive Office and Principal Place of Business: 2600 McCormick Drive  Clearwater, FL 33759  MARINEMAX SERVICES, INC.,a Delaware corporation

 

   By: /s/ Michael H. McLamb  Print Name: Michael H. McLamb  Title: Vice President, Secretary, Treasurer  Tax ID: 74-2979572  Org. ID (if any): 3331764 8100  Chief Executive Office and Principal Place of Business: 2600 McCormick Drive  Clearwater, FL 33759 

Signature Page toThird Amended and Restated Inventory Financing Agreement

 

MARINEMAX NORTHEAST, LLC,a Delaware limited liability companyBy: MARINEMAX EAST, INC.

the sole member of MarineMax Northeast, LLC

 

  

 

By: /s/ Michael H. McLamb  Print Name: Michael H. McLamb  Title: President, Secretary, Treasurer  Tax ID: 26-0668571  Org. ID (if any): 4402087 8100  Chief Executive Office and Principal Place of Business: 2600 McCormick Drive  Clearwater, FL 33759 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  Tax ID: 20-2113374  Org. ID (if any): 3908460 8100  Chief Executive Office and Principal Place of Business: 2600 McCormick Drive  Clearwater, FL 33759 US LIQUIDATORS, LLC

 

a Delaware limited liability companyBy: 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  Tax ID: 20-5817473  Org. ID (if any): 4242668 8100  Chief Executive Office and Principal Place of Business: 2600 McCormick Drive  Clearwater, FL 33759 MY WEB SERVICES, LLC,a Delaware limited liability companyBy: 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  Chief Executive Office and Principal Place of Business: 2600 McCormick Drive  Clearwater, FL 33759 

Signature Page toThird Amended and Restated Inventory Financing Agreement

 MARINEMAX CHARTER SERVICES, LLC,a Delaware limited liability companyBy: 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  Tax ID: 45-3265782  Org. ID (if any): 5037331  Chief Executive Office and Principal Place of Business: 2600 McCormick Drive  Clearwater, FL 33759  

 

NEWCOAST FINANCIAL SERVICES, LLC,  a Delaware limited liability companyBy: MARINEMAX EAST, INC.

the sole member of Newcoast Financial Services, Inc. 

 

By: /s/ Michael H. McLamb  Print Name: Michael H. McLamb  Title: President, Secretary, Treasurer  Tax ID: 59-3529057  Org. ID (if any): 2920730 8100  Chief Executive Office and Principal Place of Business: 2600 McCormick Drive  Clearwater, FL 33759 [****]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  Chief Executive Office and Principal Place of Business: 2600 McCormick Drive  Clearwater, FL 33759

Signature Page toThird Amended and Restated Inventory Financing Agreement

 AGENT AND LENDER: WELLS FARGO COMMERCIAL DISTRIBUTION FINANCE, LLC By: /s/ Pamela HolmPrint Name: Pamela HolmTitle: Duly Authorized Signatory LENDERS: BANK OF THE WEST, INC. By: /s/ Silvia BoulgerPrint Name: Silvia BoulgerTitle: Vice President M&T BANK By: /s/ Brendan KellyPrint Name: Brendan KellyTitle: VP  BRANCH BANKING & TRUST COMPANY By: /s/ T.J. LockwoodPrint Name: T.J. LockwoodTitle: Senior Vice President

Signature Page toThird Amended and Restated Inventory Financing Agreement

 Exhibit A

Existing Vendors 

Vendor Brand RestrictionsAzimut Benetti Group   AZIMUT and ATLANTIS    

Pontoon Boat, LLC   BENNINGTON    

Brunswick Corporation or affiliates thereof   BOSTON WHALER    

Crest Marine, LLC   CREST    

Grady-White Boats, Inc.   GRADY-WHITE    

Brunswick Corporation or affiliates thereof   HARRIS FLOTEBOTE    

Tracker Marine, L.L.C.   MAKO and BASS TRACKER    

Brunswick Corporation or affiliates thereof   MERCURY    

Brunswick Corporation or affiliates thereof   MERIDIAN    

Seminole Marine, Inc.   SAILFISH    

Rec Boat Holdings, LLC   SCARAB    

Scout Boats, Inc.   SCOUT    

Sea Hunt Boat Manufacturing Company, Inc.   SEA HUNT    

[****]   [****]   [****]Brunswick Corporation or affiliates thereof   SEA RAY    

Nautique Boat Company, Inc.   SKI NAUTIQUE    

Fineline Industries, LLC   SKI SUPREME    

Sportsman Boats Manufacturing, Inc.   SPORTSMAN    

         

Trailer Vendors        

EZ Loader Boat Trailers, Inc. EZ Loader Custom Boat Trailers, Inc.

 

EZ LOADER

 

 

Knight Bros., Inc.   HERITAGE    

Karavan Trailers, Inc.   KARAVAN    

Magic Tilt Trailers Inc.   MAGIC TILT    

McClain Trailers, Inc.   MCCLAIN    

Northeast Marine Industries, Inc.   NORTHEAST    

Roadrunner Trailers of Texas, Inc.   ROADRUNNER TRAILER    

Lippert Components, Inc.   ZIEMAN    

BoatMate Trailers, LLC   BOATMATE    

Heritage Trailers, LLC   HERITAGE    

Load Rite Trailers, LLC   LOADRITE    

Marine Master Trailers, LLC   MARINE MASTER    

Phoenix Trailers, LLC   PHOENIX    

Ram-Lin Custom Trailers, Inc.   RAM-LIN     

 Third Amended and Restated Inventory Financing Agreement B-1 

 Exhibit B

Existing Liens 

Debtor Secured Party Lease or Collateral Description JurisdictionAmount of

Indebtedness Filing Date

FinancingStatementNumber

MarineMax, Inc. Saxon BusinessServices

Equipment financed by Saxon BusinessSystems under Lease Agmt. No. 7738338-001

Delaware N/A –Precautionaryfiling

10/01/2012 23770015

MarineMax, Inc. IKON FinancingServices

Equipment leased in Master Lease No.1010158ML

Delaware N/A –Precautionaryfiling

12/16/2014 45103445

MarineMax, Inc. IKON FinancingServices

Equipment leased in Master Lease No.1010158ML

Delaware N/A –Precautionaryfiling

12/17/2014 45120308

MarineMax East, Inc. Sea Ray Division ofBrunswick Corporation

2014 Sea Ray 510FIY Hull # 502 Hin #SERP8208K314

Delaware $720,000.00 10/06/16 2016 6143091

  

 Third Amended and Restated Inventory Financing Agreement B-2 

 Exhibit C

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 San Diego SDG 2450 Shelter Island Drive, Suite A San Diego CA 92106 619-294-2628

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 Buford SM7 5800 Lanier Islands Parkway Buford GA 30518 770-614-6968

MarineMax Boston NE1 24-R Ericsson Street Boston MA 02122 617-288-1000

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

 Third Amended and Restated Inventory Financing Agreement C-1 

 MarineMax Hingham NE4 335 Lincoln Street Hingham MA 02043 781-875-3619

MarineMax at Bay Bridge Marina MD3 357 Pier One Road Stevensville MD 21666 410-827-7371

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 Branson KIC 611 Rock Lane Branson MO 65616 417-739-2500

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 Laurie MO1 506 N Main Street Laurie MO 65037 573-480-6235

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 Dr. 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 Monmouth Beach CHE 33 West Street Mounmouth Beach NJ 7750 732-874-7196

MarineMax Lindenhurst Marina and Yacht Center NY1 846 S Wellwood Avenue Lindenhurst NY 11757 631-957-5900

MarineMax Copiague NY4 750 Merrick Road Copiague NY 11726 631-842-5900

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

MarineMax Manhattan NY6 Chelsea Piers, Pier 59, 23rd Street and theHudson River

New York NY 10011 212-336-7873

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

MarineMax Grand Lake GLC 451107 E 320 Road Afton OK 74331 918-782-3277

MarineMax Wakefield NE3 362 Pond Street Wakefield RI 02879 781-875-3619

MarineMax Newport RI1 10 Bowen’s Wharf Newport RI 02840 401-849-2243

MarineMax Rhode Island RI2 1 Masthead Drive Warwick RI 02886 410-886-7899

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

 Third Amended and Restated Inventory Financing Agreement C-2 

 MarineMax Lake Conroe SSH 17442 Texas Route 105 Montgomery TX 77356 936-228-4165

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 Irmo HM4 7459 Broad River Road Irmo SC 29063 803-732-1104

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

   

 Third Amended and Restated Inventory Financing Agreement C-3 

   Exhibit D    Form of Compliance Certificate   Schedule2 ComplianceCertificate Page1of2 All calculations Based on Financial statement dated XXXX Calculation of Tangible Net Worth

 

“ Tangible Net Worth ” shall mean the shareholders’ equity determined in accordance with GAAP, minus items treated as intangible assets underGAAP, amounts owing by any employee, officer or other affiliate, other than draws to commissioned and seasonally compensated employeesand advances made for customary travel expenses incurred in the conduct of Dealers’ business, and any other assets that cannot be identifiedas tangible assets to CDF’s reasonable satisfaction;    

Calculation xxxx                     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 receivables and loans excluding allowed draws $ - d) Tangible Net Worth (a-b-c) $ - Calculation of Debt

 

Debt ” shall mean all obligations, contingent or otherwise, which, in accordance with GAAP, should be classified on the balance sheet asliabilities, and in any event including capital leases, Contingent Liabilities that are required to be disclosed and quantified in notes to financialstatements in accordance with GAAP, and liabilities secured by any lien on any property regardless of whether such secured liability is with orwithout recourse    

 

 

“ Contingent Liabilities ” shall mean any obligation, contingent or otherwise, of any Dealer guaranteeing or having the economic effect ofguaranteeing any Debt or Obligation of another in any manner, whether directly and indirectly, including without limitation any obligation of suchDealer, direct or indirect, (X) to purchase or pay (or advance or supply funds for the purchase or payment of) such Debt or any security for thepayment thereof, (Y) to purchase property or services for the purpose of assuring the owner of such Debt of its payment, or (Z) to maintain thesolvency, working capital, equity, cash flow, fixed charge or other coverage ratio, or any other financial condition of the primary obligor so as toenable the primary obligor to pay any Debt or to comply with any agreement relating to any Debt or obligation.    

  e) Total Consolidated Debt of the Borrowers

f) Contingent liabilities that are required to be disclosed and quantified in notes to financialstatements in accordance with GAAP

$ -  

g) Debt (e+f) $ -

 Third Amended and Restated Inventory Financing Agreement D-1 

   Schedule2         ComplianceCertificate Page2of2 Leverage Ratio Covenant - 5 (c) (i)

 

  Maintain at all times a ratio of Debt to Tangible Net Worth of not more than 2.75 to 1.0 measured as of fiscal quarter end September 30,2010 and each successive fiscal quarter end thereafter    

Calculation XXXX   h) Debt (Line g) $ - i) Tangible net worth (Line d) $ - j) Ratio (h/i) #DIV/0! In compliance? #DIV/0! Calculation of Current Ratio

 

“ Current Ratio ” shall mean the ratio, calculated in accordance with generally accepted accounting principles as of the date hereof (“ GAAP”), of (A) current assets determined in accordance with GAAP to (B) current liabilities determined in accordance with GAAP less balloonpayments due on real estate loans which CDF in its reasonable discretion expects to be refinanced

                        Current Ratio Covenant - 5 (c) (ii)

 

  Maintain at all times a Current Ratio of not less than 1.2 to 1.0 as of fiscal quarter end September 30, 2010 and each successive fiscalquarter end thereafter    

ab) Cash ac) Liquid investments ad) Contracts in Transit ae) Accounts Receivable af) Inventory ag) Prepaid Expenses ah) Current Assets per GAAP (ab+ac+ad+ae+af+ag) $ - ai) Current Liabilites per GAAP aj) Less: Balloon Payments due on real estate loans within 12 months of the date of this certificate $ - ak) Current Liabilities per Agreement (ai-aj) $ - al) Ratio (ah/ak) #DIV/0! In compliance? #DIV/0!

The undersigned hereby certifies that I have no knowledge that a material Default or Event of Default has occurred and is continuing. MarineMax Inc. By: _________________________________ Title:

 Third Amended and Restated Inventory Financing Agreement D-2 

 EXHIBIT E

Lender’s Allocations and Ratable Share 

Lender Allocation Ratable Share

CDF $210,000,000 60.000000000%

Bank of the West, Inc. $40,000,000 11.428571428%

M&T Bank $85,000,000 24.285714286%

Branch Banking & Trust Company $15,000,000 4.285714286%

TOTAL $350,000,000 100.000000000%

 

 Third Amended and Restated Inventory Financing Agreement D-3 

 EXHIBIT F

Agent Wire Instructions

[****]

 Third Amended and Restated Inventory Financing Agreement D-4 

 Exhibit G

Trigger Compliance Certificate Calculations Based on trailing twelve month (TTM) period ended:               PYTD FYE CYTD TTM

3/30/2015 9/30/2015 3/30/2016 MM/DD/YYnet 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!

       

  Compliant?    EBITDA Trigger [****]    FCCR Trigger [****]              MarineMax, Inc.By:    Title:     

 Third Amended and Restated Inventory Financing Agreement D-5 

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST.

Exhibit 10.21(q)

ExecutionVersion

FOURTH AMENDED AND RESTATEDPROGRAM TERMS LETTER

 May 9, 2017 MarineMax, Inc.MarineMax East, Inc.MarineMax Services, Inc.MarineMax Northeast LLCBoating Gear Center, LLCUS Liquidators, LLCNewcoast Financial Services, LLCMy Web Services, LLCMarineMax Charter Services, LLC[****]2600 McCormick DriveClearwater, FL 33759Attn: Mike McLamb RE: Wholesale Marine Products Finance Program Dear Mike: This Program Terms Letter outlines the terms of your marine financing program with Wells Fargo Commercial Distribution Finance, LLC f/k/a GE CommercialDistribution Finance LLC (in its individual capacity, “ CDF”) as Agent (CDF, in such capacity as agent, is herein referred to as “ Agent”) for the several financialinstitutions that are parties to this Agreement or may from time to time become party hereto (collectively, the “ Lenders” and individually each a “ Lender”) andfor itself as a Lender. This program will apply to all outstanding invoices financed by any one or more Lenders pursuant to that certain Third Amended andRestated Program Terms Letter dated October 30, 2015, among CDF and you (as amended from time to time, the “ ExistingPTL”) and to all invoices financedon or after the date hereof. This Program Terms Letter amends and restates the Existing PTL in its entirety. This Program Terms Letter supplements that certain Third Amended and Restated Inventory Financing Agreement, dated as of May 9, 2017, among Agent,Lenders and you (the “ InventoryFinancingAgreement”). Capitalized terms used but not defined herein shall have the meanings assigned to them in theInventory Financing Agreement. The following sets forth the terms of your financing program: 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 beexcluded unless you comply with Agent’s documentation requirements with respect thereto and Agent otherwise agreesin writing.

 

 Third Amended and Restated Program Terms Letter  

1  

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST.  Dealer Rate:

The effective dealer interest rate for any month (after the manufacturer subsidy period expires, if applicable) shall be theOne 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, thisProgram Terms Letter and all other agreements or instruments by and between Dealer, Agent and any one or moreLenders, beginning the date hereof through the calendar quarter ending June 30, 2017, and for each calendar quarterthereafter, Agent, on behalf of Lenders, will pay you a rebate to be paid quarterly in an amount equal to .95% of (i) theaverage daily balance of outstanding Obligations owed to Lenders for the prior quarter less (ii) the average daily balanceof the [****] for the prior quarter (the “ PerformanceRebate”). 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 outstandingObligations 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 inthe 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 theMaximum Credit Amount, minus the average daily balance of outstanding Obligations owed to Agent and Lenders, plusthe 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 theoriginal funding date. Invoices financed for pre-owned (trade in or used) inventory by any one or more Lenders are considered due in full at361 days from the date Dealer acquires such unit (“ AcquisitionDate”).

 

 Fourth Amended and Restated Program Terms Letter  

2  

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST.  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 “ AdvanceRequestForm”) or such other form as Agent and Dealers may agree. In addition, each advance with respect to any advance request for Aquila brand inventory, Ocean Alexander brandinventory, or Galeon brand inventory shall be requested as follows and accompanied by the following documentation foreach 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

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.   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. “AcceptableContract” means a fully executed bona fide contract with a retail customer, on terms that are commerciallyreasonable, 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 atany 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, andfurther subject to Availability.

 Fourth Amended and Restated Program Terms Letter  

3  

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST.  As used herein, “ Availability” shall mean: (i) the lesser of:

(a) the Maximum Credit Amount, minus the outstanding amount of Approvals, and(b) (1) if the Fixed Charge Coverage ratio is equal to or greater than 1.2x and TTM EBITDA is equal to orgreater than [****], in each case as shown on the most recent Trigger Compliance Certificate deliveredpursuant to Section 8(g) of the Inventory Financing Agreement, 100% of the Eligible Inventory Collateralshown on the most recent inventory certificate (‘ TotalEligibleInventory’), or(2) if the Fixed Charge Coverage ratio is less than 1.2x or TTM EBITDA is less than [****], in each case asshown on the most recent Trigger Compliance Certificate delivered pursuant to Section 8(g) of the InventoryFinancing Agreement, 100% of Total Eligible Inventory shown on the most recent inventory certificate, lessthe lesser of (x) [****] and (y) 10% of Total Eligible Inventory shown on such inventory certificate,

(ii) minus, the aggregate outstanding amount of Obligations. As used in the definition of Availability, the below terms have the following meanings: “ CapitalExpenditures” shall mean with respect to any Person, all expenditures (by the expenditure of cash or the

incurrence of Debt) by such Person during any measuring period for any fixed assets or improvements or forreplacements, substitutions or additions thereto that have a useful life of more than one year and that are requiredto be capitalized under GAAP, but excluding from such calculation expenditures made with the cash proceedsreceived by Dealer from any insurance claim payable by reason of theft, loss, physical damage or similar event withrespect to any of Dealer’s respective property or assets.

“ FixedChargeCoverageRatio” shall mean the ratio of (a) TTM EBITDA less Capital Expenditures (to the extent

not financed) to (b) Fixed Charges. “ FixedCharge” shall mean cash interest plus scheduled principal payments plus income taxes paid in cash plus

dividends and distributions. “ TTMEBITDA” shall mean consolidated net income plus the sum of taxes, interest, depreciation and amortization,

and one-time costs related to acquisitions permitted pursuant to the Inventory Financing Agreement plus non-cashstock-based compensation less non-recurring gains or non-cash items increasing net income and tax credits to theextent they increased net income for the trailing twelve month period.

  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 (“ Day1” 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), whichreflects the 10% curtailment as described in “Floorplan Curtailments” section below; 0% Day 361+ (after AcquisitionDate).

 

 Fourth Amended and Restated Program Terms Letter    4 

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST.  “ MarineMaxPre-ownedInventoryCost” 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-OwnedItems ”). 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 “ borrowingbase” calculated as the aggregate of the pre-

owned advance rates multiplied by the applicable MarineMax Pre-owned Inventory Cost of such pre-ownedinventory. Agent may, on behalf of Lenders, implement a Pre-Owned Inventory Reserve against the pre-owned inventoryto reduce the availability of eligible pre-owned inventory. “ Pre-OwnedInventoryReserve” is defined and calculated asthe low wholesale value determined via NADA, Yachtworld.com, survey or other source acceptable to Agent minus theMarineMax 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 dayis not a business day) based on the balances of pre-owned inventory as of the date of the certificate. The monthlyborrowing base certificate can be used to borrow up to 80% of eligible borrowing base for that calendar month, subject toAvailability, the Pre-Owned Inventory Sublimit and the Other Pre-Owned Sublimit. Any request for advances > 80% ofthe borrowing base reflected on the most recent borrowing base certificate requires submission of an updated borrowingbase 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 theaggregate value of units at locations other than Permitted Locations (excluding boat shows) exceeds $5,000,000.00 atany time, then immediate payment shall be required of the Obligations with respect to such units in an aggregate amountequal to such excess. In addition, if a material adverse change results in the reduction of the value of the Collateral in anaggregate amount exceeding $250,000.00, then immediate payment shall be required of the Obligations with respect tosuch Collateral in an amount equal to such excess; provided that, if such reduction of value is the subject of an insuranceclaim payable to Agent on behalf of Lenders as loss payee, then immediate payment of such excess amount shall onlybe required to the extent it exceeds the claim amount (net of any deductible) and payment of the remainder of suchexcess shall not be required until the earlier of (i) receipt of such insurance proceeds, if any, or the rejection or denial ofsuch claim or any portion thereof and (ii) 30 days (or such later date as Agent may agree in writing) after such loss ordamage.

 

 Fourth Amended and Restated Program Terms Letter    5 

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST. Concentration Limits:

If the number of units of inventory (new and pre-owned) financed by any one or more Lenders which are not Pre-Soldand which have an Outstanding Amount > $250,000.00 exceeds [****] of total number of units of inventory financed bysuch Lender or Lenders, then immediate payment shall be required and applied to the oldest units of such inventoryfinanced by such Lender or Lenders to the extent required to reduce the number of such units to [****] or less. “OutstandingAmount” means the outstanding amount financed by any one or more Lenders for such unit, minus anyportion of the Required Amount (as defined in the [****]) funded to the [****] with respect to curtailments for suchunit. For purposes of determining the concentration limits, units of inventory financed by any one or more Lenders shallinclude, without limitation, each unit of pre-owned inventory with a valuation < $500,000.00 identified on the currentborrowing 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 aggregatemay be Azimut brand), then immediate payment shall be required and applied to the oldest units of such inventoryfinanced by such Lender or Lenders to the extent required to reduce the Outstanding Amount to [****] or less for suchinventory (or [****] or less for Azimut brand inventory). In no event shall any one or more Lenders finance more than thegreater 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 mayagree, together with supporting documentation requested by Agent, shall be required to be provided by the 10 h day ofeach month (or the first business day following the 10 th day of each month if the 10 th day is not a business day) basedon 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.

 Fourth Amended and Restated Program Terms Letter    6 

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT 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 initialamount 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 oneach item of Azimut-Benetti S.p.A, Ocean Alexander, Galeon, and Aquila inventory when it is aged 1080 days from theoriginal funding date.  For all other new and Pre-Sold inventory, a curtailment payment of 10% of the initial amount financed is due and payableon each item of new inventory at each of the following points in time: 181, 361, 541, 721 and 900 days from the date ofthe respective original invoice and the full remaining balance of the advance is due and payable on each item ofinventory 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% ofthe 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 atday 181 after the Acquisition Date; and the advances with respect to all such items of inventory will be due in full at day361 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 toremit curtailment payments when due shall be considered a Default under the terms of the Inventory FinancingAgreement 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 [****]). Notwithstandingsuch 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 RequiredAmount)2. Maximum of [****] contributions of funds per week (unless otherwise needed for minimum requirements)3. Not intended for direct application for unit payoffs

Inventory Re-AdvanceCapability:   

New inventory may be paid down to a minimum floorplan balance of $1,000.00 per unit; permitted to re-advance up tomaximum 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 [****] isterminated at Agent’s option, 50% of Maximum Credit Amount within any 30 day period (such limit, the “ Re-AdvanceSublimit”)3. Limited to Brunswick and Azimut product4. 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 lienwaiver or subordination in form acceptable to Agent, as an alternative, you will be required to fund a reserve equal to 3months of base rent, which will be placed in the [****] pursuant to the terms of the [****], as a “required” minimumamount.

 Fourth Amended and Restated Program Terms Letter    7 

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST.  B. General Terms Audit/Inspection Fees:

Pre-closing and annual audit costs will be paid by Dealers. Actual floorcheck expenses for inventory inspections will bepaid by Agent, provided that if results of the inspections are not satisfactory to Agent, in its reasonable discretion, thenadditional 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 reportsprovided 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 reportsprovided 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 islocated. During each calendar quarter, Agent will inspect multiple locations wherein at least 98% of Total EligibleInventory 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.  

 Fourth Amended and Restated Program Terms Letter    8 

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENTREQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THISEXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THISCOMPANY’S CONFIDENTIAL TREATMENT REQUEST. 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 ofcollateral financed by any one or more Lenders, and (ii) 7 calendar days after such sale or other disposition. If it isdiscovered that a unit of collateral is sold or otherwise disposed of without payment remitted to Agent on behalf ofLenders (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. Please note that the fees and charges referred to above such as the Late Payment Fee and NSF Fee are not intended to be Agent’s or any Lender’ssole remedies for those events, and if you fail to meet any of your obligations under your agreements with or Agent and/or any one or more Lenders,Agent and each Lender specifically reserves all other rights and remedies legally available to it.

 Fourth Amended and Restated Program Terms Letter    9 

  Customer Online Management System (COMS) :Agent encourages use of COMS, our Internet payment/floorplan system. Agent will assist you in the installation of the system and provide you with training, freeof charge. Internet payments are processed via an ACH transaction and at no cost to you. You can view the system’s capabilities at www.gecdf.com/coms. Application of Terms: • 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 Wells Fargo Commercial Distribution Finance, LLC platform or joint venture (i.e. RV, Yamaha, Suzuki, Polaris Acceptance,Brunswick Acceptance Company, LLC, etc.) or any loans with any Lender Affiliate.

Confidentiality Agreement:The rates and terms set forth in this letter are for your benefit and shall be held in the strictest confidence by you; provided that you may disclose the termshereof to the extent required by applicable laws or regulations if you provide Agent with prior written notice of such disclosure, work with Agent in good faith toredact any information herein requested by Agent, and provide Agent with an opportunity to seek a protective order with respect to such information. Subject tothe foregoing, you will take all reasonable precautions to assure the confidentiality of this information is not released to any third party. PLEASE ACKNOWLEDGE YOUR ACCEPTANCE OF YOUR FINANCING TERMS AND RETURN TO KEVIN BLITZ. THANK YOU FOR THE OPPORTUNITY TO FINANCE YOUR INVENTORY NEEDS. WELLS FARGO COMMERCIAL DISTRIBUTION FINANCE, LLC,as Agent for Lenders By: ______________________________________________Name:Title: Duly Authorized Signatory 

 Fourth Amended and Restated Program Terms Letter

 

 ACCEPTED AS OF THE DATE FIRST ABOVE WRITTEN: 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 companyBy: MARINEMAX EAST, INC.

the sole member of MarineMax Northeast, LLC

 

   By: /s/ Michael H. McLamb  Print Name: Michael H. McLamb  Title: President, Secretary, Treasurer   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   

Signature Page to Fourth Amended and Restated Program Terms Letter

  US LIQUIDATORS, LLC  a Delaware limited liability companyBy: 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 companyBy: 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    

 

NEWCOAST FINANCIAL SERVICES, LLC,  a Delaware limited liability companyBy: 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  Chief Executive Office and Principal Place of Business: 2600 McCormick Drive  Clearwater, FL 33759  

 Signature Page to Fourth Amended and Restated Program Terms Letter

 Exhibit A

Advance Request Form Wells Fargo Commercial Distribution Finance, LLC10 S. Wacker Dr., 20th FloorChicago, IL 60606 Re: Third Amended and Restated Inventory Financing Agreement, dated May 9, 2017, among MarineMax, Inc. (“ DealerAgent”), the other Dealers

party thereto (collectively, together with Dealer Agent, “ Dealers ”) Wells Fargo Commercial Distribution Finance, LLC f/k/a GE CommercialDistribution Finance LLC (in its individual capacity, “ CDF”) as Agent (CDF, in such capacity as agent, is herein referred to as “ Agent”) for theseveral financial institutions that are parties thereto or that may from time to time become party to thereto (collectively, the “ Lenders ” andindividually 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 ofDealers 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 theAgreement with respect to the following (check one):

 

__________  pre-owned inventory units with applicable valuations of five hundred thousand dollars ($500,000.00) or more (“Specific Pre-Owned Items ”), subject to the Pre-Owned Inventory Sublimit and Availability (as defined in theProgram Terms Letter).

     __________   pre-owned inventory units with applicable valuations of less than five hundred thousand dollars ($500,000.00) (“

OtherPre-OwnedItems”), 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-AdvanceItems”), 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 wastrue 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 iscontinuing 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 Availability,(ii) with respect to pre-owned inventory will not exceed the Pre-Owned Inventory Sublimit, (iii) with respect to Specific Pre-Owned Items will notexceed the Specific Pre-Owned Sublimit, (iv) with respect to Other Pre-Owned Items will not exceed the Other Pre-Owned Sublimit, and (v) withrespect 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 whoowns 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”;

 

 Program Terms Letter – Exhibit A A - 1 

  

(e) if this Request relates to Other Pre-Owned Items, Exhibit B hereto sets forth (i) the date of the most recent borrowing base certificateand the borrowing base amount shown thereon, (ii) borrowing base availability as of the date hereof, and (ii) borrowing base availability after theadvance 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 Obligationswith 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 theExhibits attached hereto, free and clear of all Liens, and Agent holds a first and prior Lien on such Collateral as collateral agent for the Lenderspursuant to the Agreement, and such Collateral is in good saleable condition (normal wear and tear excepted); and (h) Dealers will pay Agent for the benefit of Lenders for each item of Collateral financed pursuant to this Request under the terms andconditions of the Agreement.

Executed this ____ day of _______________, _____.   MarineMax, Inc.,  a Florida corporation         By:      Its:      Typed Name:      

 Program Terms Letter – Exhibit A A - 2 

  

Exhibit A to Advance Request FormSpecific 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)   

 Program Terms Letter – Exhibit A A - 3 

  

Exhibit B to Advance Request FormOther 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)   

 Program Terms Letter – Exhibit A A - 4 

 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)   

 Program Terms Letter – Exhibit A A - 6 

 Exhibit B

Borrowing Base Certificate Form 

Wells Fargo Commercial Distribution Finance LLCPre-Owned Inventory Borrowing Base Certificate

  Agent for Dealers: MarineMax, Inc. Collateral Report Date: Maximum Credit Amount: $ 350,000,000.00 Certificate Date: Certificate Number: 2 Pre-Owned Inventory With Valuations<$500,000.00 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 valuation<$500,000.00) $ - 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 Third Amendedand Restated Inventory Financing Agreement (the “ Agreement”;capitalized terms used herein and not otherwise defined shall have the same definition as setforth in the Agreement),dated May 9,2017 , between wellsFargo Commercial Distribution Finance, LLC (f/k/a GE Commercial Distribution Finance LLC, asAgent and Lender (“ Agent”), the other Lenders party thereto from time to time (alone with Agent, the” Lenders”), MarineMax, Inc. (“ MarineMax”) and theother dealers party thereto (collectively, the” Dealers”), as from time to time amended. By executing this Certificate, MarineMax, individually and on behalf ofthe other Dealers, (a) represents and warrants to Agent and the Lenders that the information contained in this Certificate is true and correct in all materialrespects and that no Default has occurred, including, but not limited to, violation of any of the financial covenants contained in the Agreement, and (b) herebyratifies, confirms and affirms all of the terms, conditions and provisions of the Agreement.

Agent: MarineMax, Inc. Signature: Date:    

 Program Terms Letter – Exhibit BKCP-8231889-5 

 Exhibit C

Monthly Inventory Certificate Form 

[****]         

 Program Terms Letter – Exhibit CKCP-8231889-5 

Exhibit 31.1

CERTIFICATION

I, William H. McGill Jr., certify that:

  1. I have reviewed this quarterly report on Form 10-Q of MarineMax, Inc.;

  2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make thestatements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by thisreport;

  3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects thefinancial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

  4. The  registrant’s  other  certifying  officer  and  I  are  responsible  for  establishing  and  maintaining  disclosure  controls  and  procedures  (as  defined  inExchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

  a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, toensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within thoseentities, particularly during the period in which this report is being prepared;

  b) designed  such  internal  control  over  financial  reporting,  or  caused  such  internal  control  over  financial  reporting  to  be  designed  under  oursupervision,  to  provide  reasonable  assurance  regarding  the  reliability  of  financial  reporting  and  the  preparation  of  financial  statements  forexternal purposes in accordance with generally accepted accounting principles;

  c) evaluated  the  effectiveness  of  the  registrant’s  disclosure  controls  and  procedures  and  presented  in  this  report  our  conclusions  about  theeffectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

  d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recentfiscal  quarter  (the  registrant’s  fourth  fiscal  quarter  in  the  case  of  an  annual  report)  that  has  materially  affected,  or  is  reasonably  likely  tomaterially affect, the registrant’s internal control over financial reporting; and

  5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to theregistrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

  a) all  significant  deficiencies  and  material  weaknesses  in  the  design  or  operation  of  internal  control  over  financial  reporting  which  arereasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

  b) any  fraud,  whether  or  not  material,  that  involves  management  or  other  employees  who  have  a  significant  role  in  the  registrant’s  internalcontrol over financial reporting.

   /s/  WILLIAM H. MCGILL JR.  William H. McGill Jr.  Chief Executive Officer  (Principal Executive Officer)   Date: July 25, 2017   

Exhibit 31.2

CERTIFICATION

I, Michael H. McLamb, certify that:

  1. I have reviewed this quarterly report on Form 10-Q of MarineMax, Inc.;

  2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make thestatements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by thisreport;

  3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects thefinancial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

  4. The  registrant’s  other  certifying  officer  and  I  are  responsible  for  establishing  and  maintaining  disclosure  controls  and  procedures  (as  defined  inExchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

  a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, toensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within thoseentities, particularly during the period in which this report is being prepared;

  b) designed  such  internal  control  over  financial  reporting,  or  caused  such  internal  control  over  financial  reporting  to  be  designed  under  oursupervision,  to  provide  reasonable  assurance  regarding  the  reliability  of  financial  reporting  and  the  preparation  of  financial  statements  forexternal purposes in accordance with generally accepted accounting principles;

  c) evaluated  the  effectiveness  of  the  registrant’s  disclosure  controls  and  procedures  and  presented  in  this  report  our  conclusions  about  theeffectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

  d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recentfiscal  quarter  (the  registrant’s  fourth  fiscal  quarter  in  the  case  of  an  annual  report)  that  has  materially  affected,  or  is  reasonably  likely  tomaterially affect, the registrant’s internal control over financial reporting; and

  5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to theregistrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

  a) all  significant  deficiencies  and  material  weaknesses  in  the  design  or  operation  of  internal  control  over  financial  reporting  which  arereasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

  b) any  fraud,  whether  or  not  material,  that  involves  management  or  other  employees  who  have  a  significant  role  in  the  registrant’s  internalcontrol over financial reporting.

   /s/  MICHAEL H. MCLAMB  Michael H. McLamb  Chief Financial Officer  (Principal Financial Officer)   Date: July 25, 2017   

Exhibit 32.1

CERTIFICATION PURSUANT TO18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TOSECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of MarineMax, Inc., (the “Company”) on Form 10-Q for the quarterly period ended June 30, 2017 as filed with theSecurities  and Exchange Commission on the date  hereof  (the “Report”),  I,  William H. McGill  Jr.,  Chief  Executive Officer  of  the Company,  certify,  to  my bestknowledge and belief, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

  (1) The  Report  fully  complies  with  the  requirements  of  Section  13(a)  or  15(d)  of  the  Securities  Exchange  Act  of  1934 (15  U.S.C.  78m(a)  or78o(d)); and

  (2) The  information  contained  in  the  Report  fairly  presents,  in  all  material  respects,  the  financial  condition  and  results  of  operations  of  theCompany.

   /s/  WILLIAM H. MCGILL JR.  William H. McGill Jr.  Chief Executive Officer   Date: July 25, 2017   

Exhibit 32.2

CERTIFICATION PURSUANT TO18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TOSECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of MarineMax, Inc., (the “Company”) on Form 10-Q for the quarterly period ended June 30, 2017 as filed with theSecurities  and  Exchange  Commission  on  the  date  hereof  (the  “Report”),  I,  Michael  H.  McLamb,  Chief  Financial  Officer  of  the  Company,  certify,  to  my  bestknowledge and belief, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

  (1) The  Report  fully  complies  with  the  requirements  of  Section  13(a)  or  15(d)  of  the  Securities  Exchange  Act  of  1934 (15  U.S.C.  78m(a)  or78o(d)); and

  (2) The  information  contained  in  the  Report  fairly  presents,  in  all  material  respects,  the  financial  condition  and  results  of  operations  of  theCompany.

   /s/  MICHAEL H. MCLAMB  Michael H. McLamb  Chief Financial Officer   Date: July 25, 2017