Document:

Exhibit 10.40

 

 

July 23, 2012

 

Mr. Daniel Cooperman

 

Re:  LegalZoom.com, Inc. Amended and Restated Offer Letter

 

Dear Dan:

 

We are very pleased to provide you with this Amended and Restated Offer Letter setting forth the terms and conditions of your position as a member of the Board of Directors (the “Board”) of LegalZoom.com, Inc. (the “Company”).  The terms of this Amended and Restated Offer Letter hereby amend and restate in its entirety that certain Offer Letter, dated as of June 21, 2012, between you and the Company.  This offer, which is subject to the approval of each of the current members of our Board, is based on the following terms and conditions:

 

	
Start   Date:  
    	
 
    	
Effective immediately after the Registration   Statement is declared effective by the Securities and Exchange Commission   (the “Effective Date”), you will serve as a member of the Board until   the annual meeting for the year in which your term expires or until your   successor has been elected and qualified, subject however, to your prior   death, resignation, retirement, disqualification or removal from office. 
    
	
 
    	
 
    	
 
    
	
Term:
    	
 
    	
Your   initial term on the Board shall be two (2) years.
    
	
 
    	
 
    	
 
    
	
Committees:
    	
 
    	
You   acknowledge and agree that, in order to meet SEC and NYSE rules, you will be   required to serve on one or more of the Board’s Audit Committee, Compensation   Committee and/or Nominating and Governance Committee, and that such committee   assignments will be as agreed between you and the Company, and that you will   be compensated for service on any committee as provided herein.
    
	
 
    	
 
    	
 
    
	
Cash   Compensation:
    	
 
    	
In   consideration of your services as a member of the Board, you will receive a   $25,000 annual cash retainer to be paid in arrears in equal quarterly   installments for so long as you remain a member of the Board.

 

In   consideration for your services as Chair of the Audit Committee, if   applicable, you will receive a $15,000 annual cash retainer to be paid in   arrears in equal quarterly installments for so long as you remain the Audit   Committee Chair.
    

 

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In   consideration for your services as Chair of the Compensation Committee, if   applicable, you will receive a $7,500 annual cash retainer to be paid in   arrears in equal quarterly installments for so long as you remain the   Compensation Committee Chair.

 

In   consideration for your services as Chair of the Nominating and Governance   Committee, if applicable, you will receive a $5,000 annual cash retainer to   be paid in arrears in equal quarterly installments for so long as you remain   the Nominating and Governance Committee Chair.

 

All   or a portion of your annual cash retainer may be deferred into a stock unit   account. The election for deferring your annual cash retainer must be made in   writing within thirty (30) days of joining the Board and prior to the start   of the new calendar year for subsequent elections or earlier as necessary to   comply with Internal Revenue Code §409A.

 

You   will receive $1,000 per meeting for each Board and committee meeting that you   attend, to be paid in arrears on a quarterly basis.
    
	
 
    	
 
    	
 
    
	
Equity   Compensation Grants:
    	
 
    	
In   connection with the Company’s initial public offering, if you are then   serving on the Board, you will receive both inducement and annual   compensatory equity grants (in the form of restricted stock units and stock   options which will each be subject to vesting conditions) in accordance with   the Company’s non-employee director compensation program.
    
	
 
    	
 
    	
 
    
	
Stock   Ownership Guidelines:
    	
 
    	
In   order to promote long-term alignment of directors and stockholders interests,   the Company requires that you hold five times your annual cash retainer   (excluding any cash retainer for service on a committee or as a committee   chair or other service-related fees). You are expected to attain or exceed   the stock ownership guideline amount within five (5) years of the   Effective Date, and to remain at or above the guideline.
    
	
 
    	
 
    	
 
    
	
Responsibilities:
    	
 
    	
As   a director of the Company, your duties and responsibilities will be those   reasonably and customarily associated with such position, including, without   limitation, attendance at all regular and special meetings of the Board and,   if you are a member of a committee of the Board, attendance at all regular   and special meetings of such committee.
    
	
 
    	
 
    	
 
    
	
No   Legal Services Provided:
    	
 
    	
We   confirm that you will be providing services as a member of the board   of directors in your individual capacity, and will not be providing or   called upon to provide legal services to the Company.
    
	
 
    	
 
    	
 
    
	
Expenses:
    	
 
    	
The   Company will reimburse you for all reasonable, out-of-pocket costs and   expenses incurred by you in connection with attending Board meetings and, if   you are a member of a committee of the Board,
    

 

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committee   meetings.
    
	
 
    	
 
    	
 
    
	
Confidentiality:
    	
 
    	
As   a condition of this offer, you will be required to preserve the Company’s   proprietary and confidential information and you must comply with the   Company’s policies and procedures.    Accordingly, as a pre-condition to your appointment to the Board, you   are required to execute the Nondisclosure Agreement enclosed herewith.
    
	
 
    	
 
    	
 
    
	
Indemnification:
    	
 
    	
In   the interest of retaining and attracting qualified individuals to provide   services to the Company, the Company has or will enter into an   Indemnification Agreement with each of its directors and executive   officers.  An Indemnification Agreement   will be provided to you to sign upon your acceptance.
    

 

Your engagement as a member of the Board is contingent on all of the following:  (a) formal acceptance of this offer, (b) completion of a background, credit and reference check satisfactory to the Board and (c) a determination by the Board that you meet the independence requirements of the NYSE.  This offer to serve as a member of the Board shall be at the will of the Board, which means that this relationship can be terminated at any time by either party.   Upon accepting our offer to join the Board you agree we will have the right to mention your name and other customary information in documents we file with the Securities and Exchange Commission, press releases and other business documentation as appropriate, including, inclusion of such information in our registration statement and the related prospectus naming you as a person about to become a member of the Board and such other information regarding you as is required to be included therein under the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

To accept this offer, please sign the acknowledgment at the end of this letter acknowledging and agreeing to the terms and conditions of your service as a member of the Board of the Company.

 

[Signature page follows]

 

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We sincerely hope that you decide to join the Board of Directors of the Company.  Please contact me with any questions regarding the foregoing.

 

 

	
 
    	
Sincerely,
    
	
 
    	
 
    
	
 
    	
LEGALZOOM.COM, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   John Suh
    
	
 
    	
 
    	
John   Suh
    
	
 
    	
 
    	
Chief   Executive Officer and Director
    

 

	
ACKNOWLEDGED   AND AGREED TO BY:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/   Daniel Cooperman
    	
 
    
	
Daniel   Cooperman
    	
 
    
	
 
    	
 
    
	
Date:   July 23, 2012
    	
 
    

 

I hereby consent to the inclusion in the Registration Statement on Form S-1 of LegalZoom.com, Inc., any amendments thereto, and in the related Prospectus, of (i) a reference naming me as a person about to become a member of the Board of Directors of LegalZoom.com, Inc. and (ii) such other information regarding me as is required to be included therein under the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

4Exhibit 10.41

 

TWELFTH AMENDMENT
 TO LOAN AND SECURITY AGREEMENT

 

This Twelfth Amendment to Loan and Security Agreement (this “Amendment”) is entered into as of July 23, 2012, by and between COMERICA BANK (“Bank”) and LEGALZOOM.COM, INC., a Delaware corporation (“Borrower”).

 

RECITALS

 

A.                                    Borrower and Bank are parties to that certain Loan and Security Agreement dated as of October 31, 2008, as amended from time to time including by that certain First Amendment to Loan and Security Agreement dated as of February 24, 2009, that certain Second Amendment to Loan and Security Agreement dated as of March 6, 2009, that certain Third Amendment to Loan and Security Agreement dated as of July 7, 2009, that certain Fourth Amendment to Loan and Security Agreement dated as of July 27, 2009, that certain Fifth Amendment to Loan and Security Agreement dated as of January 8, 2010, that certain Sixth Amendment and Waiver to Loan and Security Agreement dated as of October 29, 2010, that certain Seventh Amendment to Loan and Security Agreement dated as of March 1, 2011, that certain Eighth Amendment to Loan and Security Agreement dated as of May 17, 2011, that certain Ninth Amendment to Loan and Security Agreement dated as of July 20, 2011, that certain Tenth Amendment to Loan and Security Agreement dated as of December 9, 2011 and that certain Eleventh Amendment to Loan and Security Agreement dated as of April 6, 2012 (collectively, the “Agreement”).

 

B.                                    Borrower has requested that Bank amend the Agreement as provided herein. Subject to and on the terms and conditions set forth herein, Bank is willing to amend the Agreement in accordance with the terms of this Amendment, provided that the conditions set forth herein are satisfied, and all security interests and liens under the Loan Documents shall continue to exist and remain in full force and effect.

 

NOW, THEREFORE, for good and valuable consideration, the receipt of which is hereby acknowledged, the parties agree as follows:

 

1.                                      Section 6.6 of the Agreement is hereby amended and restated in its entirety to read as follows:

 

“6.6                         Accounts, At all times when the aggregate dollar value of Borrower’s and its Subsidiaries’ total deposit, securities, investment and operating account balances at all financial institutions is greater than or equal to Thirty Million Dollars ($30,000,000), Borrower and its Subsidiaries shall maintain deposit, securities, investment and operating accounts with Bank or Bank’s Affiliates (covered by satisfactory control agreements in favor of Bank) with an aggregate dollar value of not less than Twenty Million Dollars ($20,000,000). At all times when the aggregate dollar value of Borrower’s and its Subsidiaries’ total deposit, securities, investment and operating account balances at all financial institutions is less than Thirty Million Dollars ($30,000,000), Borrower and its Subsidiaries shall maintain deposit, securities, investment and operating accounts with Bank or Bank’s Affiliates (covered by satisfactory control agreements in favor of Bank) with an aggregate dollar value that is not less than two-thirds (2/3) of the aggregate dollar value of its and their deposit, securities, investment and operating accounts at all financial institutions.”

 

2.                                      No course of dealing on the part of Bank or its officers, nor any failure or delay in the exercise of any right by Bank, shall operate as a waiver thereof, and any single or partial exercise of any such right shall not preclude any later exercise of any such right. Bank’s failure at any time to require strict performance by Borrower of any provision shall not affect any right of Bank thereafter to demand strict compliance and performance. Any suspension or waiver of a right must be in writing signed by an officer of Bank.

 

3.                                      Unless otherwise defined, all initially capitalized terms in this Amendment shall be as defined in the Agreement. The Agreement, as amended hereby, shall be and remain in full force and effect in accordance with its respective terms and hereby is ratified and confirmed in all respects. Except as expressly set forth herein, the execution, delivery, and performance of this Amendment shall not operate as a waiver of, or as an amendment of, any right, power, or remedy of Bank under the Agreement, as in effect prior to the date hereof. Borrower ratifies

 

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and reaffirms the continuing effectiveness of all promissory notes, guaranties, security agreements, mortgages, deeds of trust, environmental agreements, and all other instruments, documents and agreements entered into in connection with the Agreement, and specifically ratifies and confirms the pledge of the equity interests in each of its Subsidiaries. Borrower hereby further affirms its absolute and unconditional promise to pay to Bank the Advances, other Credit Extensions all other amounts due under the Letters of Credit and the other Loan Documents (including, without limitation, the Obligations), at the times and in the amounts provided for therein. Borrower confirms and agrees that the obligations of Borrower to Bank under the Agreement as supplemented hereby are secured by and entitled to the benefits of the Loan Documents. The parties agree that this Amendment shall be deemed to be one of the Loan Documents under the Agreement. Nothing in this Amendment shall constitute a satisfaction of Borrower’s Obligations.

 

4.                                      In order to induce Bank to enter into this Amendment, Borrower hereby represents and warrants to Bank as follows:

 

4.1                               The representations and warranties contained in the Agreement and the other Loan Documents were true and correct in all material respects when made and continue to be true and correct in all material respects as of the date of this Amendment, except to the extent that such representations and warranties relate expressly to an earlier date only, in which case, they remain true and correct in all material respects as of such earlier date.

 

4.2                               Both before and immediately after giving effect to this Amendment and the other transactions contemplated hereby, no Event of Default, or other event or circumstance that with the giving of notice or the passage of time could become an Event of Default, has occurred and is continuing.

 

4.3                               The execution, delivery, and performance by Borrower of this Amendment and the other documents, instruments and agreements to which Borrower is a party delivered or to be delivered to Bank in connection herewith (i) are within the corporate powers of Borrower and have been duly authorized by all necessary corporate action on the part of Borrower, (ii) do not require any governmental or third party consents, except those which have been duly obtained and are in full force and effect, (iii) do not and will not conflict with any requirement of law, Borrower’s or any Guarantor’s articles or certificate of incorporation, bylaws, operating agreement, partnership agreement, minutes or resolutions, (iv) after giving effect to this Amendment, do not result in any breach of or constitute a default under any agreement or instrument to which Borrower, any Guarantor or any of their respective Subsidiaries is a party or by which they or any of their respective properties are bound, and (v) do not result in or require the creation or imposition of any mortgage, deed of trust, pledge, lien, security interest or other charge or encumbrance of any nature upon any of the assets or properties of Borrower or any Guarantor, other than those in favor of Bank.

 

4.4                               This Amendment and the other instruments and agreements delivered or to be delivered to Bank in connection herewith have been duly executed and delivered by Borrower and constitutes the legal, valid, and binding obligation of Borrower, enforceable against Borrower in accordance with their respective terms, except to the extent that (i) enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws of general application affecting the rights and remedies of creditors, (ii) enforcement may be subject to general principles of equity, and (iii) the availability of the remedies of specific performance and injunctive relief may be subject to the discretion of the court before which any proceedings for such remedies may be brought.

 

5.                                      As a condition to the effectiveness of this Amendment, Bank shall have received, in form and substance satisfactory to Bank, the following:

 

(a)                                 this Amendment, duly executed by Borrower;

 

(b)                                 affirmations of guaranty and security agreements duly executed by each of CREATINGWILL.COM, LLC, a Delaware limited liability company, LEGALZOOM.COM TEXAS, LLC, a Texas limited liability company, LZ FINANCIAL SERVICES LLC, a Delaware limited liability company, UNITED STATES CORPORATION AGENTS, INC., a California corporation, UNITED STATES CORPORATION AGENTS, INC., a Nevada corporation, and UNITED STATES CORPORATION AGENTS, INC., a Maryland corporation;

 

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(c)                                  an amount equal to all Bank Expenses incurred through the date of this Amendment, which amounts may be debited from any of Borrower’s accounts with Bank; and

 

(d)                                 such other documents, instruments and certificates, and completion of such other matters, as Bank may reasonably deem necessary or appropriate.

 

6.                                      This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument.

 

[Remainder of Page Left Blank]

 

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IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the first date above written.

 

	
 
    	
LEGALZOOM.COM, INC
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Fred J. Krupica
    
	
 
    	
Title:
    	
CFO
    
	
 
    	
 
    
	
 
    	
COMERICA BANK
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Paula J. Howell
    
	
 
    	
Title:
    	
SVP
    

 

[Signature Page to Twelfth Amendment to Loan and Security Agreement]

 

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