On June 28, 2017, Malibu Boats, LLC (the “Purchaser”) and wholly owned indirect subsidiary of Malibu Boats, Inc. (the “Company”) entered into an agreement to acquire all of the outstanding units of Cobalt Boats, LLC (“Cobalt”) from its existing members (the “Sellers”) pursuant to a unit purchase agreement, dated as of June 28, 2017 (the “Unit Purchase Agreement”), by and among the Purchaser, Cobalt, and the other parties named therein (the “Acquisition”) for an aggregate purchase price of $130 million, subject to customary adjustments for the amount of working capital in the business at the closing date and subject to adjustment for any judgment or settlement in connection with a pending litigation matter between Cobalt and Sea Ray Boats, Inc. and Brunswick Corporation. On June 27, 2017, the Board of Directors of the Company (the “Board”), subject to and effective upon completion of the Acquisition, increased the size of the Board from nine to ten directors and appointed Mr. William Paxson St. Clair, Jr., current Chief Executive Officer of Cobalt to the Board, with his term to begin on the closing date of the Acquisition.