Document:

Document

Exhibit 10.15

Zuora, Inc.
101 Redwood Shores Parkway
Redwood City, California    94065

January 11, 2021
Dear Brent:
This letter agreement (this “Agreement”) is made and entered into as of January 11, 2021 and confirms the terms of the agreement we have reached with you with respect to your departure and transition from Zuora, Inc. (“Zuora” or the “Company”).  

1.Separation. You have provided notice to Zuora of your resignation as Zuora’s Senior Vice President, Technology effective on May 19, 2021 (the “Separation Date”). Until your Separation Date, you will continue to be paid your current base salary and be eligible to participate in all Zuora-sponsored health and benefit plans. You will be eligible to receive the bonus payout for the quarter ending January 31, 2021 under Zuora’s Cash Incentive Plan (including any true-up or true-down payment under such plan for the fiscal year ending January 31, 2021), subject to taxes and withholdings. Notwithstanding the above, you acknowledge that you will not be eligible to receive a bonus payout under Zuora’s Cash Incentive Plan for any future period, including any period in Zuora’s fiscal year ending January 31, 2022. 
2.Consulting Services. At the end of the Separation Date, you will cease being an employee of Zuora.  If you sign this Agreement and on the Separation Date you sign a second release of all claims in substantially the form attached as Exhibit A hereto that will be provided to you by Zuora on or prior to the Separation date, then from May 20, 2021 through November 19, 2021 (the “Consulting Period”), Zuora agrees to retain you as a consultant of Zuora and you agree that during the Consulting Period you will provide advisory and transition services to Zuora. Assignment of these services shall be at the direction of Zuora’s Chief Executive Officer and such employees as he may designate from time to time.  During the Consulting Period:
(a)Zuora will pay you a consulting fee of $250 per hour for your services rendered during the Consulting Period.  You agree to provide Zuora with an invoice (submitted to ZEO Success at mary.hartman@zuora.com) by the 15th day of each month indicating the number or hours/days worked in the prior calendar month.  You will be reimbursed by Zuora for all ordinary and reasonable direct expenses which you may incur in connection with this project, including travel expenses. You are solely responsible for providing, at your expense, those ordinary and necessary general and administrative 
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resources needed for performance of the consulting services such as a cell phone or any related costs for internet service or telephone communication (although Zuora may provide a computer to you as may be appropriate for purposes of performing the consulting services). Such general and administrative expenses are not eligible for reimbursement.
(b)Your status and relationship with Zuora shall be that of an independent contractor and consultant. You will receive an IRS form 1099 for the consulting fees paid by Zuora under this Agreement. You will be responsible for payment of federal, state and local taxes, contributions required under Social Security and any other taxes imposed with respect to your receipt of fees for your consulting services under this Agreement. 

(c)You will not be eligible to participate in any Zuora-sponsored compensation, welfare or employee benefits, or bonus or cash incentive plans. 

(d)Any inventions, improvements, concepts, or ideas made or conceived by you in connection with and during the performance of the consulting services under this Agreement shall be considered the sole and exclusive property of Zuora. Any work performed by you under this Agreement during the Consulting Period shall be considered a Work Made for Hire as that phrase is defined by the United States Copyright laws and shall be owned by and for the express benefit of Zuora. In the event it should be established that such work does not qualify as a Work Made for Hire, you agree to and do hereby assign to Zuora all of your right, title and interest in such work product including, but not limited to, all copyrights, patents, trademarks and other proprietary rights. Both during the Consulting Period and thereafter, you agree to fully cooperate with Zuora in the protection and enforcement of any intellectual property rights that may derive as a result of the services performed by you during the Consulting Period. This shall include executing, acknowledging and delivering to Zuora all documents or papers which may be necessary to enable Zuora to publish or protect said inventions, improvements, and ideas.

3.Equity Awards. Treatment of your unvested restricted share awards will be in accordance with the provisions of Zuora’s applicable equity incentive plan under which they were granted and the corresponding grant agreements (the “Equity Agreements”); provided, however, you understand and agree that notwithstanding anything to the contrary in the Equity Agreements, all of the restricted shares on which the restrictions have not lapsed and all unvested equity as of the Separation Date will be forfeited as of that date.  You acknowledge and agree that you have no rights in or with respect to Zuora’s stock other than as described in this Paragraph 3. Stock options you hold that are vested as of the Separation Date are exercisable with respect to the vested shares at any time until three months after the end of the Consulting Period (i.e. until February 19, 2022).  Except as expressly set forth in this Paragraph 3, all of the terms set forth in the Equity Agreements will remain in full force and effect.
4.Return of Company Property. You agree that on or before the Separation Date, you will return all Zuora assets including (without limitation) phones, keys, credit cards, card key passes and any other property that you received in connection with your employment including copies of documents that belong to Zuora and files stored on your computer(s) that contain information belonging to Zuora. With respect to any computer that may be 
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provided to you for purposes of performing the consulting services, you agree to return such computer upon Zuora’s request (but not later than the end of the Consulting Period (i.e. November 19, 2021). 
5.General Release of all Claims. In consideration for Zuora agreeing to retain you as a consultant during the Consulting Period as described in Paragraph 2 above, to the fullest extent permitted by law, you waive, release and promise never to assert any claims or causes of action, whether or not now known, against Zuora or its predecessors, successors or past or present subsidiaries, stockholders, directors, officers, employees, consultants, attorneys, agents, assigns and employee benefit plans with respect to any matter, including (without limitation) any matter related to your employment with Zuora or the termination of that employment, including (without limitation) claims to attorneys’ fees or costs, claims of wrongful discharge, constructive discharge, emotional distress, defamation, invasion of privacy, fraud, breach of contract or breach of the covenant of good faith and fair dealing and any claims of discrimination, retaliation or harassment based on sex, age, race, national origin, disability or any other basis under the Title VII of the Civil Rights Act of 1964, the California Fair Employment and Housing Act, the Age Discrimination in Employment Act of 1967, the Americans with Disabilities Act and all other laws and regulations relating to employment.  However, this release covers only those claims that arose prior to the execution of this Agreement and only those claims that may be waived by applicable law.  Execution of this Agreement does not bar any claim that arises hereafter, including (without limitation) a claim for breach of this Agreement and does not waive any claims for alleged work-related injuries that you have filed with Zuora’s workers’ compensation insurance company.
6.Waiver.  You expressly waive and release any and all rights and benefits under Section 1542 of the California Civil Code (or any analogous law of any other state), which reads as follows:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.
7.Effective Date and Revocation. You have up to 21 days after you receive this Agreement to review it.  You are advised to consult an attorney of your own choosing (at your own expense) before signing this Agreement.  Furthermore, you have up to seven days after you sign this Agreement to revoke it.  If you wish to revoke this Agreement after signing it, you may do so by delivering a letter of revocation to me.  If you do not revoke this Agreement, the eighth day after the date you sign it will be the “Effective Date.”  Because of the seven-day revocation period, no part of this Agreement will become effective or enforceable until the Effective Date.

8.Legal Proceedings. You agree that you will cooperate fully with Zuora, regarding existing and future legal or administrative proceedings or asserted claims relating to events which occurred during your employment in which Zuora is a party, and as to which you might in 
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Zuora’s view have personal knowledge, including without limitation the execution of affidavits or other documents providing information requested by Zuora.  

9.Nondisclosure, Assignment and Non-Solicitation Agreement.  You agree that at all times during and after your employment with Zuora, you were and shall remain bound by the Employee Nondisclosure, Assignment and Non-Solicitation Agreement dated September 8, 2015 between you and Zuora (the “Nondisclosure Agreement”).

10.Confidential and Proprietary Information. Without in any way limiting your general legal obligation to maintain the confidentiality of Zuora confidential and proprietary information, as a condition of receiving any of the benefits and payments provided by this Agreement, you agree to keep all confidential and proprietary information of Zuora, its subsidiaries and affiliated companies, including joint venture partners, strictly confidential, and not to disclose any such confidential or proprietary information to any other person except to the extent that disclosure is required by law, court order, or governmental inquiry. For purposes of this paragraph, confidential and proprietary information includes, but is not limited to, any non-public trade secret or commercially sensitive or valuable information concerning the business affairs, customers, technologies, and personnel of Zuora and any of its affiliated entities, and includes among other information:

•information that is related to any programs or procurements in which you have been involved or about which you have obtained information during your employment at Zuora;
•information concerning Zuora’s customers, clients, or prospects, and their products, processes and policies;
•information concerning the management, policies, strategies, product development plans and finances of Zuora; and 
•information regarding the officers and employees of Zuora.
You hereby agree to return to Zuora all Zuora confidential and proprietary information and property, whether located in files, memoranda, documents, or on computers, laptops, phones, removable media or other portable storage devices, and that you will not misappropriate, upload or download, transfer to any third party, or otherwise share or distribute Zuora confidential or proprietary data. You may retain your rolodex and a copy of your electronic address book to the extent they only contain contact information.
11.Insider Information. During your employment with Zuora, you have been treated as an “insider” for securities law purposes. Please review your obligations regarding your treatment of insider information, and remember that any financial plan, program, estimate, financial performance data or matter not readily available to the general public shall be maintained in strict confidence and may not be disclosed or discussed publicly. Remember that you remain subject to Zuora’s Insider Trading Policy through the end of the Consulting Period.

12.Governing Law and Arbitration. This Agreement shall be governed by and construed and enforced in accordance with the laws of California (other than their choice-of law 
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provisions). Any dispute arising under this Agreement shall be settled exclusively through arbitration in San Mateo County, California. Such arbitration shall be conducted in accordance with the rules of the American Arbitration Association before a single arbitrator. The decision of the arbitrator shall be final and binding on both parties. Judgment may be entered on the award of the arbitrator in any court having proper jurisdiction.

13.Entire Agreement. Except as expressly provided in this Agreement, this Agreement renders null and void and completely supersedes any prior written, oral or other agreements or representation between you and Zuora (including the Change in Control and Severance Agreement between you and Zuora dated May 15, 2017) and this Agreement constitutes the entire agreement between you and Zuora regarding the subject matter of this Agreement. You acknowledge that you have not relied on any representations, promises, or agreements of any kind made in connection with your decision to sign this Agreement except for those set forth in this Agreement. This Agreement may be modified only in a written document signed by you and a duly authorized officer of Zuora.

14.Severability.  If any term of this Agreement is held to be invalid, void or unenforceable, the remainder of this Agreement will remain in full force and effect and will in no way be affected, and the parties will use their best efforts to find an alternate way to achieve the same result.

15.Execution.  This Agreement may be executed in counterparts, each of which will be considered an original, but all of which together will constitute one agreement.  Execution of a facsimile or electronic copy will have the same force and effect as execution of an original, and a facsimile or electronic signature will be deemed an original and valid signature.

[Signature page follows]

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Please indicate your agreement with the above terms by signing below.

Very truly yours,
ZUORA, INC.
By:   /s/ Laura Robblee    
Laura Robblee
Senior Vice President, ZEO Success
I agree to the terms of this Agreement, and I am voluntarily signing this release of all claims.  I acknowledge that I have read and understand this Agreement, and I understand that I cannot pursue any of the claims and rights that I have waived in this Agreement at any time in the future.

 /s/ Brent R. Cromley, Jr.    
Brent R. Cromley, Jr.

Dated:   January 11, 2021    

6Document

Exhibit 10.21

SECOND AMENDMENT
TO 
LOAN AND SECURITY AGREEMENT

This Second Amendment to Loan and Security Agreement (this “Amendment”) is entered into this 19th day of January, 2021, by and between (a) SILICON VALLEY BANK, a California corporation (“Bank”), (b) ZUORA, INC., a Delaware corporation (“Zuora”), (c) ZUORA SERVICES, LLC, a Delaware limited liability company (“Services”), and (d) LEEYO SOFTWARE, INC., a Delaware corporation (“Leeyo”, together with Zuora and Services, are referred to herein, each and together, jointly and severally, as “Borrower”).
RECITALS
A.    Bank and Borrower have entered into that certain Loan and Security Agreement dated as of June 14, 2017, as amended by that certain First Amendment to Loan and Security Agreement dated as of October 11, 2018, by and between Bank and Borrower (the “First Amendment”) (as the same has been and may from time to time be further amended, modified, supplemented or restated, the “Loan Agreement”).  
B.    Bank has extended credit to Borrower for the purposes permitted in the Loan Agreement.  
C.    Borrower has requested that Bank amend the Loan Agreement to make certain revisions to the Loan Agreement as more fully set forth herein.
D.    Bank has agreed to so amend certain provisions of the Loan Agreement, but only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below.
AGREEMENT
    Now, Therefore, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:
1.Definitions.  Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Loan Agreement.
2.Amendments to Loan Agreement.
2.1    Section 2.6  (Fees).  Section 2.6(b)  is hereby amended and restated as follows:

“         (b) [Reserved];”

2.2    Section 3.1  (Conditions Precedent to Initial Credit Extension).  Section 3.1(g)  is hereby amended and restated as follows:

“          (g) [Reserved];”

2.3    Section 5.4  (Litigation). Section 5.4 is hereby amended and restated as follows:

“    5.4    Litigation.  There are no actions or proceedings pending or, to the knowledge of any Responsible Officer, threatened in writing by or against Borrower or any of its Subsidiaries that individually or in the aggregate could reasonably be expected to have a Material Adverse Change.”

2.4    Section 5.9 (Tax Returns and Payments; Pension Contributions).  Section 5.9 is hereby amended and restated as follows:
“     5.9    Tax Returns and Payments; Pension Contributions.  Borrower has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower except (a) to the extent such taxes are being contested in good faith by appropriate proceedings promptly instituted and diligently conducted, so long as such reserve or other appropriate provision, if any, as shall be required in conformity with GAAP shall have been made therefor, (b) for such taxes, assessments, deposits and contributions disclosed in the Perfection Certificate delivered on the Effective Date, or (c) if such taxes, assessments, deposits and contributions do not, individually or in the aggregate, exceed Three Million Dollars ($3,000,000.00).  
    Borrower is unaware of any claims or adjustments proposed for any of Borrower’s prior tax years which could reasonably be expected to result in additional taxes becoming due and payable by Borrower in excess of Two Million Dollars ($2,000,000.00),  except as disclosed in the Perfection Certificate, and as any and all such taxes may be deferred by law, including according to the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”).  Borrower has paid all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms, and Borrower has not withdrawn from participation in, and has not permitted partial or complete termination of, or permitted the occurrence of any other event with respect to, any such plan which could reasonably be expected to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency.”
2.5    Section 6.1  (Government Compliance).  Section 6.1(a)  is hereby amended and restated as follows:
“    (a) Maintain its and all its Subsidiaries’ legal existence and good standing in their respective jurisdictions of formation and maintain qualification in each jurisdiction in which the failure to so qualify would reasonably be expected to have a material adverse effect on Borrower’s business or operations.  Borrower shall comply, and have each Subsidiary comply, in all material respects, with all laws, ordinances and regulations to which it is subject, where the failure to so comply would reasonably be expected to have a material adverse effect on Borrower’s business or operations. Notwithstanding the foregoing, (i) Borrower’s Subsidiaries may wind-up and dissolve to the extent that Borrower determines that it is reasonable to do so and any remaining assets from such Subsidiaries are transferred to Borrower or another Subsidiary in accordance with applicable law; provided however, in the event that any such Subsidiary is a Borrower or Guarantor, then the remaining assets of such Subsidiary shall be transferred to another Borrower or Guarantor, and (ii) nothing herein shall prohibit transactions permitted under Section 7.3.”

2.6    Section 6.2  (Financial Statements, Reports, Certificates). Section 6.2(g)  is hereby amended and restated as follows:
“    (g)  prompt report of any legal actions pending or threatened in writing against Borrower or any of its Subsidiaries that could reasonably be expected to result in damages or costs to Borrower or any of its Subsidiaries of, individually or in the aggregate, Three Million Five Hundred Thousand Dollars ($3,500,000.00) or more; and”
2.7    Section 6.7  (Insurance).  Section 6.7(a)  is hereby amended and restated as follows:
“    (a)    Keep its business and the Collateral insured for risks and in amounts standard for companies in Borrower’s industry and location with financially sound and reputable insurance companies that are not Affiliates of Borrower.  All property policies shall have a lender’s loss payable endorsement showing Bank as the sole lender loss payee.  All liability policies shall show, or have endorsements showing, Bank as an additional insured.  Bank shall be named as lender loss payee and/or additional insured with respect to any such insurance providing coverage in respect of any Collateral.”
2.8    Section 6.8  (Accounts).  Section 6.8(b)  is hereby amended and restated as follows:
“    (b)    In addition to and without limiting the restrictions in (a), Borrower shall provide Bank written notice before establishing any Collateral Account at or with any bank or financial institution other than Bank or Bank’s Affiliates. For each Collateral Account that Borrower at any time maintains, Borrower shall cause the applicable bank or financial institution (other than Bank) at or with which any Collateral Account is maintained to execute and deliver a Control Agreement or other appropriate instrument with respect to such Collateral Account to perfect Bank’s Lien in such Collateral Account in accordance with the terms hereunder which Control Agreement may not be terminated without the prior written consent of Bank.  Notwithstanding the foregoing, the provisions of the previous sentence shall not apply to (i) deposit accounts if the aggregate amount maintained therein does not at any time exceed Two Million Dollars ($2,000,000.00) in the aggregate for all such accounts, and (ii) deposit accounts exclusively used for payroll, payroll taxes, and other employee wage and benefit payments to or for the benefit of Borrower’s employees and, in each case of clauses (i) and (ii), identified to Bank by Borrower.”
2.9    Section 6.10 (Protection and Registration of Intellectual Property Rights).  Section 6.10 is hereby amended and restated as follows:
“    6.10    Protection and Registration of Intellectual Property Rights.  Use all commercially reasonable efforts to protect, defend and maintain the validity and enforceability of Intellectual Property material to the operation of Borrower’s business.”
2.10    Section 6.13  (Formation or Acquisition of Subsidiaries).  Section 6.13  is hereby amended and restated as follows:
“    6.13    Formation or Acquisition of Subsidiaries.  Notwithstanding and without limiting the negative covenants contained in Sections 7.3 and 7.7 hereof, at the time that Borrower or any Guarantor forms any direct or indirect Subsidiary (other than an Immaterial Subsidiary) or acquires any direct or indirect Subsidiary (other than an 

Immaterial Subsidiary) after the Effective Date (including, without limitation, pursuant to a Division), or if any Immaterial Subsidiary no longer qualifies as such, Borrower and such Guarantor shall (a) cause such Subsidiary to provide to Bank a joinder to this Agreement to become a co-borrower hereunder, together with such appropriate financing statements and/or Control Agreements, all in form and substance reasonably satisfactory to Bank (including being sufficient to grant Bank a first priority Lien (subject to Permitted Liens) in and to the assets of such Subsidiary), (b) provide to Bank appropriate certificates and powers and financing statements, pledging all of the direct or beneficial ownership interest in such Subsidiary, in form and substance reasonably satisfactory to Bank; provided, that with respect to any such Subsidiary that is a Foreign Subsidiary, in the event that Borrower and Bank mutually agree that (i) the grant of a continuing pledge and security interest in and to the assets of such Foreign Subsidiary, (ii) the guaranty of the Obligations of the Borrower by such Foreign Subsidiary and/or (iii) the pledge by Borrower of a perfected security interest in one hundred percent (100%) of the stock, units or other evidence of ownership of such Foreign Subsidiary, would reasonably be expected to have a material adverse tax effect on the Borrower, then the Borrower shall only be required to grant and pledge to Bank a perfected security interest in up to sixty-five percent (65%) of the stock, units or other evidence of ownership of such Foreign Subsidiary; and (c) provide to Bank all other documentation in form and substance reasonably satisfactory to Bank, including one or more opinions of counsel reasonably satisfactory to Bank, which in its opinion is appropriate with respect to the execution and delivery of the applicable documentation referred to above.  Any document, agreement, or instrument executed or issued pursuant to this Section 6.13 shall be a Loan Document.”
2.11    Section 7.1  (Dispositions).  Section 7.1  is hereby amended and restated as follows:
“    7.1   Dispositions.  Convey, sell, lease, transfer, assign, or otherwise dispose of (including, without limitation, pursuant to a Division) (collectively, “Transfer”), or permit any of its Subsidiaries to Transfer, all or any part of its business or property, except for Transfers (a) of Inventory in the ordinary course of business; (b) of worn-out, fully-depreciated or obsolete Equipment that is, in the reasonable judgment of Borrower, no longer economically practicable to maintain or useful in the ordinary course of business of Borrower; (c) consisting of Permitted Liens and Permitted Investments; (d) consisting of the sale or issuance of any stock of Borrower permitted under Section 7.2 of this Agreement; (e) consisting of Borrower’s use or transfer of money or Cash Equivalents in the ordinary course of its business for the payment of ordinary course business expenses in a manner that is not prohibited by the terms of this Agreement or the other Loan Documents; (f) of non-exclusive licenses for the use of the property of Borrower or its Subsidiaries in the ordinary course of business; and (g) other Transfers in an amount not to exceed Two Million Dollars ($2,000,000.00) in any fiscal year.”
2.12    Section 7.2 (Changes in Business, Management, Control, or Business Locations).  The second paragraph of Section 7.2 is hereby amended and restated as follows:
“            Borrower shall not, without at least thirty (30) days prior written notice to Bank: (1) add any new offices or business locations, including warehouses (unless such new offices or business locations contain less than Seven Hundred Fifty Thousand Dollars ($750,000) in Borrower’s assets or property) or deliver any portion of the Collateral 

valued, individually or in the aggregate, in excess of One Hundred Fifty Thousand Dollars ($150,000) to a bailee at a location other than to a bailee and at a location already disclosed in the Perfection Certificate, (2) change its jurisdiction of organization, (3) change its organizational structure or type, (4) change its legal name, or (5) change any organizational number (if any) assigned by its jurisdiction of organization.  If Borrower intends to deliver any portion of the Collateral valued, individually or in the aggregate, in excess of One Hundred Fifty Thousand Dollars ($150,000) to a bailee, and Bank and such bailee are not already parties to a bailee agreement governing both the Collateral and the location to which Borrower intends to deliver the Collateral, then Borrower will first receive the written consent of Bank, and such bailee shall execute and deliver a bailee agreement in form and substance reasonably satisfactory to Bank.”
2.13    Section 7.3 (Mergers or Acquisitions).  Section 7.3 is hereby amended and restated as follows:
“    7.3 Mergers or Acquisitions.  Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with any other Person, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock or property of another Person (including, without limitation, by the formation of any Subsidiary or pursuant to a Division), except for (a) the Acquisition of Leeyo on the Effective Date and (b) Permitted Acquisitions.  A Subsidiary may merge or consolidate into another Subsidiary or into Borrower. ”

2.14    Section 7.7 (Distributions; Investments).  Section 7.7 is hereby amended and restated as follows:
“    7.7    Distributions; Investments.  (a) Pay any dividends or make any distribution or payment or redeem, retire or purchase any capital stock, provided that (i) Borrower may convert any of its convertible securities into other securities pursuant to the terms of such convertible securities or otherwise in exchange thereof, (ii) Borrower may pay dividends solely in common stock; and (iii) Borrower may repurchase the stock of former employees or consultants pursuant to stock repurchase agreements so long as (x) an Event of Default does not exist at the time of such repurchase and would not exist after giving effect to such repurchase, and (y) after giving effect to such repurchase, Borrower shall have an Adjusted Quick Ratio of not less than 1.25 to 1.00; or (b) directly or indirectly make any Investment (including, without limitation, by the formation of any Subsidiary) other than Permitted Investments, or permit any of its Subsidiaries to do so.”
2.15    Section 10 (Notice).  Section 10 is amended by deleting the notice information for Bank, and replacing it with the following:
“    If to Borrower:        c/o Zuora, Inc.
                101 Redwood Shores Parkway
                Redwood City, CA 94065
                Attn: Todd McElhatton
                Email: tmcelhatton@zuora.com

If to Bank:        Silicon Valley Bank 
2400 Hanover Street

Palo Alto, California 94304
Attn: Alex Grotevant
Email: agrotevant@svb.com

with a copy to:        Morrison & Foerster LLP
200 Clarendon Street
            Boston, Massachusetts  02116
            Attn:    Charles W. Stavros, Esquire
Email:    cstavros@mofo.com”

2.16    Section 13 (Definitions).  The following terms and their respective definitions set forth in Section 13.1 are deleted in their entirety and replaced with the following: 
“    “General Intangibles” is all “general intangibles” as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation, claims, income and other tax refunds, security and other deposits, payment intangibles, contract rights, options to purchase or sell real or personal property, rights in all litigation presently or hereafter pending (whether in contract, tort or otherwise), insurance policies (including without limitation key man, property damage, and business interruption insurance), payments of insurance and rights to payment of any kind.  Notwithstanding the foregoing, General Intangibles shall not include any or all Intellectual Property.”

“    “Loan Documents” are, collectively, this Agreement and any schedules, exhibits, certificates, notices, and any other documents related to this Agreement, any Bank Services Agreement, any subordination agreement, any note, or notes or guaranties executed by Borrower or any Guarantor, and any other present or future agreement by Borrower and/or any Guarantor with or for the benefit of Bank, all as amended, restated, or otherwise modified.”

“    “Obligations” are Borrower’s obligations to pay when due any debts, principal, interest, fees, Bank Expenses, the Final Payment, and other amounts Borrower owes Bank now or later, whether under this Agreement, the other Loan Documents, or otherwise, including, without limitation, all obligations relating to Bank Services and interest accruing after Insolvency Proceedings begin and debts, liabilities, or obligations of Borrower assigned to Bank, and to perform Borrower’s duties under the Loan Documents.”

“    “Revolving Line Maturity Date” is the date that is forty-eight (48) months from the First Amendment Effective Date.”

2.17    Section 13 (Definitions).  Clause (f) and (g) in the definition of “Permitted Acquisition” are amended and restated as follows:
“    (f)    after giving effect to the consummation of such Acquisition, Borrower shall have an Adjusted Quick Ratio of not less than 1.25 to 1.00;”

“         (g) [Reserved];”

2.18    Section 13 (Definitions). Clause (h) in the definition of “Permitted Indebtedness” is amended and restated as follows:
“        (h)    unsecured Indebtedness of Borrower or any Subsidiary arising from corporate credit cards and merchant services agreement incurred in the ordinary course of business in an amount not to exceed Two Hundred Fifty Thousand Dollars ($250,000);”

2.19    Section 13 (Definitions).  The following definitions are hereby inserted into their appropriate alphabetical position:
“    “Division”  means, in reference to any Person which is an entity, the division of such Person into two (2) or more separate Persons, with the dividing Person either continuing or terminating its existence as part of such division, including, without limitation, as contemplated under Section 18-217 of the Delaware Limited Liability Company Act for limited liability companies formed under Delaware law, Section 17-220 of the Delaware Revised Uniform Limited Partnership Act for limited partnerships formed under Delaware law, or any analogous action taken pursuant to any other applicable law with respect to any corporation, limited liability company, partnership or other entity.”
“       “Immaterial Subsidiary” means any Subsidiary of Borrower or any Guarantor that (A) did not contribute more than 5.0% of the consolidated revenue of Borrower and its Subsidiaries (excluding, for the avoidance of doubt, intercompany revenues) for the most recently ended trailing four (4) quarter period, and (B) did not have assets of 5.0% or more of the total assets of Borrower and its Subsidiaries (excluding, for the avoidance of doubt, intercompany assets) as of the last day of the most recently ended fiscal quarter; provided, if at any time and from time to time after the Effective Date, all Immaterial Subsidiaries in the aggregate (A) contribute more than 15.0% of the consolidated revenue of Borrower and its Subsidiaries (excluding, for the avoidance of doubt, intercompany revenues) for the most recently ended trailing four (4) quarter period or (B) have assets of more than 15.0% of the total assets of Borrower and its Subsidiaries (excluding, for the avoidance of doubt, intercompany assets) as of the last day of the most recently ended fiscal quarter, then Borrower shall, not later than thirty (30) days after the date by which financial statements for such period are required to be delivered pursuant to this Agreement (or such longer period as Bank may agree in its reasonable discretion), (i) designate in writing to Bank that one or more of such Subsidiaries is no longer an Immaterial Subsidiary for purposes of this Agreement to the extent required such that the foregoing condition ceases to be true and (ii) comply with the provisions of Section 6.13 applicable to such Subsidiaries; and provided, further, that no Subsidiary that owns (or is the licensee of) any Intellectual Property that is material to the business of Borrower and its Subsidiaries shall constitute an “Immaterial Subsidiary”.”

2.20    Section 13 (Definitions).  The following terms and their respective definitions are hereby deleted in their entirety from Section 13.1: (a) “Anniversary Fee”; and (b) “IP Agreement”.
2.21    Exhibit A (Collateral Description).  The Collateral Description appearing as Exhibit A of the Loan Agreement is amended in its entirety and replaced with the Collateral Description appearing on Schedule 1 hereto. Within ten (10) business days of the effectiveness of this Amendment, Bank agrees to provide Borrower a copy of a filed UCC-3 financing statement with an amended description of Collateral that no longer includes Intellectual Property, as set forth on Schedule 1 hereto.

2.22    Exhibit B (Compliance Certificate).  The Compliance Certificate appearing as Exhibit B of the Loan Agreement is amended in its entirety and replaced with the Compliance Certificate appearing on Schedule 2 hereto. 
3.Limitation of Amendments.
3.1    The amendments set forth in Section 2, above, are effective for the purposes set forth herein and shall be limited precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may have in the future under or in connection with any Loan Document.
3.2    This Amendment shall be construed in connection with and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and effect.
4.Representations and Warranties.  To induce Bank to enter into this Amendment, Borrower hereby represents and warrants to Bank as follows:
4.1    Immediately after giving effect to this Amendment (a) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and (b) no Event of Default has occurred and is continuing;
4.2    Borrower has the power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment;
4.3    The organizational documents of Borrower delivered to Bank on the Effective Date remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect, except as set forth in the Borrowing Certificates provided as of the date of this Amendment;
4.4    The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized; 
4.5    The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrower, (b) any contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the organizational documents of Borrower; 
4.6    The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on Borrower, except as already has been obtained or made; and

4.7    This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights.
5.Termination of Intellectual Property Security Agreement.  Borrower hereby acknowledges, confirms and agrees that the Intellectual Property Security Agreement dated as of June 14, 2017, as supplemented, between Borrower and Bank shall be terminated as of the date of this Amendment.
6.Updated Perfection Certificate.  Borrower has delivered an updated Perfection Certificate in connection with this Amendment (the “Updated Perfection Certificate”) dated as of the date hereof, which Updated Perfection Certificate shall supersede in all respects that certain Perfection Certificate dated as of June 14, 2017.  Bank and Borrower hereby agree that all references in the Loan Agreement to the “Perfection Certificate” shall hereinafter be deemed to be references to the Updated Perfection Certificate, as defined herein.
7.Post-Closing Conditions. Within forty-five (45) days of the date hereof, Borrower shall use commercially reasonable efforts to cause the landlord to execute and deliver a Landlord Consent in favor of Bank with respect to Borrower’s leased location at 101 Redwood Shores Parkway, Redwood City, California 94065.
8.Integration.  This Amendment and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements.  All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this Amendment and the Loan Documents merge into this Amendment and the Loan Documents.
9.Counterparts.  This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument.
10.Effectiveness.  This Amendment shall be deemed effective upon 
(a)the due execution and delivery to Bank of this Amendment by each party hereto;
(b)Borrower’s payment to Bank of (i) a fully earned, non-refundable commitment fee in an amount equal to Thirty Thousand Dollars ($30,000), and (ii) Bank’ s legal fees and expenses not to exceed Thirty Thousand Dollars ($30,000.00) incurred in connection with this Amendment;
(c)the Operating Documents (if modified since last delivered to Bank) and good standing certificates of Borrower certified by the Secretary of State (or equivalent agency) of Borrower’s jurisdiction of organization or formation and each jurisdiction in which Borrower is qualified to conduct business, each as of a date no earlier than thirty (30) days prior to date hereof; and
(d)a secretary’s certificate of Borrower with respect to such Borrower’s Operating Documents and resolutions authorizing the execution and delivery of this Agreement and the other Loan Documents to which it is a party.

[Signature page follows.]

In Witness Whereof, the parties hereto have caused this Amendment to be duly executed and delivered as of the date first written above.

BORROWER:

ZUORA, INC.

By  /s/ Todd McElhatton            
Name:  Todd McElhatton
Title:    Chief Financial Officer

LEEYO SOFTWARE, INC.

By  /s/ Todd McElhatton            
Name:  Todd McElhatton
Title:    President

ZUORA SERVICES, LLC

By  /s/ Todd McElhatton            
Name:  Todd McElhatton
Title:    President

BANK:

SILICON VALLEY BANK

By  /s/ Alex Grotevant                
Name: Alex Grotevant
Title: Vice President
[Signature Page to Second Amendment to Loan and Security Agreement]

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