Document:

Exhibit

Exhibit 10.1

THIRD AMENDMENT
TO 
LOAN AND SECURITY AGREEMENT

This Third Amendment to Loan and Security Agreement (this “Amendment”) is entered into this 30th day of September, 2016 by and between SILICON VALLEY BANK (“Bank”) and MAXPOINT INTERACTIVE, INC., a Delaware corporation (“Borrower”) whose address is 3020 Carrington Mill Boulevard, Suite 300, Morrisville, North Carolina 27560.
RECITALS
A.    Bank and Borrower have entered into that certain Loan and Security Agreement dated as of June 12, 2014, as amended by that certain First Amendment to Loan and Security Agreement by and between Borrower and Bank dated as of February 12, 2015, and as further amended by that certain Second Amendment to Loan and Security Agreement by and between Borrower and Bank dated as of March 8, 2016 (the “Second 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 (i) extend the maturity date, (ii) modify the interest rate, (iii) revise certain financial reporting requirements, (iv) revise certain financial covenants, and (v) make certain other 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 2.4(a) (Payment of Interest on the Credit Extensions).  Section 2.4(a) is amended in its entirety and replaced with the following:

(a)    Advances.  Subject to Section 2.4(b), the principal amount outstanding under the Revolving Line shall accrue interest at a floating per annum rate equal to 
(i) at all times prior to the first (1st) Payment Date following the 2016 Amendment Date, one percent (1.00%) above the Prime Rate; provided that during a Streamline Period (in effect prior to the 2016 Amendment Date), the principal amount outstanding under the Revolving Line shall accrue interest at a floating per annum rate equal to the Prime Rate; 
(ii) commencing with the first (1st) Payment Date following the 2016 Amendment Date through and including the 2016-B Amendment Date, one and one half of one percent (1.5%) above the Prime Rate; provided that during a Streamline Period, the principal amount outstanding under the Revolving Line shall accrue interest at a floating per annum rate equal to one half of one percent (0.5%) above the Prime Rate, which interest shall in either case be payable monthly in accordance with Section 2.4(d) below.  Notwithstanding the foregoing, however, commencing upon the first (1st) Payment Date following the month in which the Performance Event occurs, the principal amount outstanding under the Revolving Line shall accrue interest at a floating per annum rate equal to the Prime Rate, which interest shall be payable monthly in accordance with Section 2.4(d) below; and 
(iii) commencing with the 2016-B Amendment Date and thereafter, one half of one percent (0.5%) above the Prime Rate, which interest shall be payable in accordance with Section 2.4(d) below.  

2.2    Section 5.13 (Eligible Unbilled Accounts).  The Loan Agreement is amended by inserting the following new provision to appear as Section 5.13 (Eligible Unbilled Accounts) thereof:
5.13    Eligible Unbilled Accounts.  The estimated face value amount determined by Borrower for each Eligible Unbilled Account is based upon the best information available to Borrower and accurately and fully (considering all known discounts available to each such Account Debtor) reflects the same.  In addition, Borrower represents and warrants that there are no discounts, offsets or other rights of any Account Debtor under any Eligible Unbilled Account.

2.3    Section 6.2(a) (Financial Statements, Reports, Certificates).  Section 6.2(a) is amended in its entirety and replaced with the following:
(a)    a Transaction Report (and any schedules related thereto) (i) with each request for an Advance, and (ii) within five (5) days of (A) the 15th day and (B) the last Business Day of each month;

2.4    Section 6.3(c) (Collection of Accounts).  The last sentence of Section 6.3(c) is amended in its entirety and replaced with the following:
Whether or not an Event of Default has occurred and is continuing, Borrower shall immediately deliver all payments on and proceeds of Accounts to the Cash Collateral Account.  All amounts received in the Cash Collateral Account shall be applied to immediately reduce the Obligations.  For the avoidance of doubt, the availability of Advances under the Revolving Line shall be determined in accordance with the terms and conditions of this Agreement, and shall not be limited by this Section 6.3(c).

2.5    Section 6.6 (Access to Collateral; Books and Records).  The second sentence of Section 6.7(e) is amended in its entirety and replaced with the following:
The foregoing inspections and audits shall be conducted at Borrower’s expense and no more often than once every twelve (12) months (or more frequently, but no more often than twice every twelve (12) months), unless an Event of Default has occurred and is continuing in which case such inspections and audits shall occur as often as Bank shall determine is necessary.    
2.6    Section 6.9(b) (Adjusted Quick Ratio).  Section 6.9(b) is amended in its entirety and replaced with the following:
(b)    Adjusted Quick Ratio.  Maintain at all times, subject to periodic reporting as of the last day of each month, (i) commencing with the month ending March 31, 2016 and as of the last day of each month thereafter through and including August 31, 2016, an Adjusted Quick Ratio of at least 1.10 to 1.00; and (ii) commencing with September 30, 2016, and as of the last day of each month thereafter, an Adjusted Quick Ratio of at least 1.00 to 1.00.  
2.7    Section 6.9(c) (Minimum Adjusted EBITDA/Maximum Adjusted EBITDA Loss).  Section 6.9(c) is amended in its entirety and replaced with the following:
(c)    Minimum Adjusted EBITDA/Maximum Adjusted EBITDA Loss.  Achieve minimum Adjusted EBITDA/maximum Adjusted EBITDA losses, subject to reporting as of the last day of each period set forth below, measured monthly on a trailing twelve (12) month basis, of at least the following:

	
		
	Trailing Twelve (12) Month Period Ending
	Minimum Adjusted EBITDA/ Maximum Adjusted EBITDA Loss

	September 30, 2016
	($22,200,000.00)

	December 31, 2016
	($19,000,000.00)

	March 31, 2017
	($12,000,000.00)

	June 30, 2017
	($8,000,000.00)

	September 30, 2017
	($3,000,000.00)

	December 31, 2017
	$1.00

2.8    Section 13.1 (Definitions).  The definition of “Eligible Accounts” appearing in Section 13.1 is amended by deleting subsection (e) in its entirety and replacing it with the following:
(e)    Accounts owing from an Account Debtor which does not have its principal place of business in the United States, except for Eligible Foreign Accounts; 

2.9    Section 13.1 (Definitions).  The following terms and their respective definitions set forth in Section 13.1 are amended in their entirety and replaced with the following:
“Borrowing Base” is (a) eighty-five percent (85%) of Eligible Accounts, plus (b) the lesser of (i) seventy-five percent (75%) of Eligible Unbilled Accounts or (ii) Twelve Million Two Hundred Fifty Thousand Dollars ($12,250,000.00), in each case as determined by Bank from Borrower’s most recent Transaction Report; provided, however, that after consultation with Borrower, Bank has the right to decrease the foregoing percentages and amounts in its good faith business judgment to mitigate the impact of events, conditions, contingencies, or risks which may adversely affect the Collateral or its value.

“Prime Rate” is the rate of interest per annum from time to time published in the money rates section of The Wall Street Journal or any successor publication thereto as the “prime rate” then in effect; provided that, in the event such rate of interest is less than zero percent (0.0%), such rate shall be deemed to be zero percent (0.0%) for purposes of this Agreement; and provided, further, that if such rate of interest, as set forth from time to time in the money rates section of The Wall Street Journal, becomes unavailable for any reason as determined by Bank, the “Prime Rate” shall mean the rate of interest per annum announced by Bank as its prime rate in effect at its principal office in the State of California (such Bank announced Prime Rate not being intended to be the lowest rate of interest charged by Bank in connection with extensions of credit to debtors).

“Revolving Line Maturity Date” is December 31, 2017.

2.10    Section 13.1 (Definitions).  The Loan Agreement is amended by inserting the following new terms and their respective definitions to appear alphabetically in Section 13.1 thereof:
“2016-B Amendment Date” is September 30, 2016.

“Eligible Foreign Accounts” means Accounts which are owing from an Account Debtor which has its principal place of business in Canada, Australia, France, Germany, Israel, Italy, Japan and the United Kingdom, and are otherwise Eligible Accounts but for subsection (e) of the definition of Eligible Accounts; provided in no event shall the aggregate amount of (i) Eligible Foreign Accounts plus (ii) Eligible UK Accounts included in the Borrowing Base constitute more than twenty-five percent (25%) of all Accounts included in the Borrowing Base.  

“Eligible UK Accounts” are Accounts which are billed from and/or payable to Borrower in the United Kingdom and are otherwise Eligible Accounts but for subsection (f) of the definition of Eligible Accounts; provided that in no event shall the aggregate amount of (i) Eligible Foreign Accounts plus (ii) Eligible UK Accounts included in the Borrowing Base constitute more than twenty-five percent (25%) of all Accounts included in the Borrowing Base.

“Eligible Unbilled Accounts” are Accounts for which the Account Debtor has not been invoiced but for which (i) Borrower has completed work on such Account Debtor’s advertising campaign pursuant to a signed and enforceable contract by and between Borrower and such Account Debtor, (ii) such Accounts are contractually due and owing to the Borrower without condition; (iii) Borrower will (and does), in the ordinary course of business, invoice such Account Debtor for such contracted services within thirty (30) days of the earlier of (A) the date of the Transaction Report requesting an Advance relating to such Account or (B) the first (1st) date on which such Account is included in the Borrowing Base, (iv) such Accounts meet all of Borrower’s representations and warranties set forth in Section 5.13 of this Agreement, and (v) which, but for subsection (o), are otherwise Eligible Accounts.  For the sake of clarity, at any time that an Account no longer meets the above-referenced criteria (including, without limitation, when such Account is billed), such Account shall no longer be an Eligible Unbilled Account.

2.11    Exhibit B (Compliance Certificate).  The Compliance Certificate is amended in its entirety and replaced with the Compliance Certificate in the form of Schedule 1 attached 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 and in connection with this Amendment remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect;
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.    Ratification of Intellectual Property Security Agreement.  Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and conditions of a certain Intellectual Property Security Agreement dated as of June 12, 2014 between Borrower and Bank, and acknowledges, confirms and agrees that said Intellectual Property Security Agreement (a) contains an accurate and complete listing of all Intellectual Property Collateral, as defined in said Intellectual Property Security Agreement, and (b) shall remain in full force and effect.
6.    Ratification of Perfection Certificate.  Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in a certain Perfection Certificate dated as of June 12, 2014, as amended by that certain Schedule 2 to the Second Amendment, between Borrower and Bank, and acknowledges, confirms and agrees the disclosures and information Borrower provided to Bank in said Perfection Certificate have not changed in any material respect, as of the date hereof. 
7.    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.
8.    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.
9.    Effectiveness.  This Amendment shall be deemed effective upon (a) the due execution and delivery to Bank of this Amendment by each party hereto and (b) Borrower’s payment of (i) a fully earned, non-refundable amendment fee in an amount equal to Fifty Thousand Dollars ($50,000.00), and (ii) Bank’s legal fees and expenses incurred in connection with this Amendment.
[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.

	
					
	BANK
	 
	BORROWER

	SILICON VALLEY BANK
	 
	MAXPOINT INTERACTIVE, INC.

	 
	 
	 
	 
	 

	By:
	/s/ Matthew Sallese
	 
	By:
	/s/ Joseph Epperson

	Name:
	Matthew Sallese
	 
	Name:
	Joseph Epperson

	Title:
	Vice President
	 
	Title:
	CEO, President and Chairman

Schedule 1

SCHEDULE 1

EXHIBIT B

COMPLIANCE CERTIFICATE

	
				
	TO:
	SILICON VALLEY BANK
	Date:
	 

	FROM:
	MAXPOINT INTERACTIVE, INC.
	 
	 

The undersigned authorized officer of MaxPoint Interactive, Inc., a Delaware corporation (“Borrower”) certifies that under the terms and conditions of the Loan and Security Agreement between Borrower and Bank (as amended, the “Agreement”), (1) Borrower is in complete compliance for the period ending _______________ with all required covenants except as noted below, (2) there are no Events of Default, (3) all representations and warranties in the Agreement are true and correct in all material respects on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date, (4) Borrower, and each of its Subsidiaries, 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 as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement, and (5) no Liens have been levied or claims made against Borrower or any of its Subsidiaries, if any, relating to unpaid employee payroll or benefits of which Borrower has not previously provided written notification to Bank.  Attached are the required documents supporting the certification.  The undersigned certifies that these are prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes.  The undersigned acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered.  Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Agreement.

Schedule 1

	
			
	Please indicate compliance status by circling Yes/No under “Complies” column.

	 

	Reporting Covenant
	Required
	Complies

	 
	 
	 

	Monthly financial statements
	Monthly within 30 days
	Yes   No

	Compliance Certificate
	Monthly within 30 days
	Yes   No

	Annual financial statement (CPA Audited) + CC
	FYE within 180 days

	Yes   No

	10‐Q, 10‐K and 8-K
	Within 10 days after filing with
SEC

	Yes   No

	A/R & A/P Agings
	Monthly within 30 days

	Yes   No

	Deferred Revenue reports
	Monthly within 30 days
	Yes   No

	Annual Operating Budget
	With 10 days after Board 
approval, but at least annually

	Yes   No

	Transaction Reports
	(i) with each request for an Advance, and (ii) within five (5) days of (A) the 15th day  and (B) the last Business Day of each month 

	Yes   No

	 

	

The following Intellectual Property was registered after the Effective Date (if no registrations, state “None”)
____________________________________________________________________________

	
				
	Financial Covenant 

	Required
	Actual
	Complies

	 
	 
	 
	 

	Maintain as indicated:
	 
	 
	 

	Adjusted Quick Ratio, commencing with the month ending September 30, 2016 and for each month thereafter
	1.00 : 1.00
	_____: 1.0
	Yes   No

	Minimum Adjusted EBITDA/Maximum Adjusted EBITDA Loss
	*
	

$________
	Yes   No

*     As set forth in Section 6.9(c) of the Agreement    

The following financial covenant analyses and information set forth in Schedule 1 attached hereto are true and accurate as of the date of this Certificate.

Schedule 1

The following are the exceptions with respect to the certification above: (If no exceptions exist, state “No exceptions to note.”)

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

	
						
	MAXPOINT INTERACTIVE, INC.
	 
	BANK USE ONLY

	 
	 
	 

	 
	 
	 
	 
	 
	 

	By:
	 
	 
	Received by:
	 
	 

	Name:
	 
	 
	 
	 
	AUTHORIZED SIGNER

	Title:
	 
	 
	Date:
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	Verified:
	 
	 

	 
	 
	 
	 
	 
	AUTHORIZED SIGNER

	 
	 
	 
	Date:
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	Compliance Status:
	 
	Yes        No

Schedule 1

Schedule 1 to Compliance Certificate

Financial Covenants of Borrower

In the event of a conflict between this Schedule and the Agreement, the terms of the Agreement shall govern.

Dated:    _______________

I.    Adjusted Quick Ratio.  (Section 6.9(b))

		
	Required: 
	1.00 to 1.00.

	
			
	A.
	Aggregate value of Borrower’s consolidated unrestricted cash and Cash Equivalents maintained with Bank
	$______

	B.
	Aggregate value of Borrower’s consolidated net billed accounts receivable, determined according to GAAP
	$______

	C.
	Quick Assets (the sum of lines A and B)
	$______

	D.
	Aggregate value of obligations and liabilities of Borrower to Bank
	$______

	E.
	Aggregate value of liabilities that should, under GAAP, be classified as liabilities on Borrower’s consolidated balance sheet, including all Indebtedness, not otherwise reflected in line D above, that mature within one (1) year
	$______

	F.
	Current Liabilities (the sum of lines D and E)   
	$______

	G.
	Aggregate value of current portion of all amounts received or invoiced by Borrower in advance
of performance under contracts and not yet recognized as revenue
	$______

	H.
	Line F minus G
	$_______

	I.
	Adjusted Quick Ratio (line C divided by line H)
	______

Is line I greater than or equal to 1.0 to 1.0?

	
					
	 
	Yes, in compliance
	 
	 
	No, not in compliance

[continued on next page]

Schedule 1

		
	II.
	Minimum Adjusted EBITDA/Maximum EBITDA Loss.  (Section 6.9(c))

		
	Required:
	See chart below

	
		
	Trailing Twelve (12) Month Period Ending
	Minimum Adjusted EBITDA/ Maximum Adjusted EBITDA Loss

	September 30, 2016
	($22,200,000.00)

	December 31, 2016
	($19,000,000.00)

	March 31, 2017
	($12,000,000.00)

	June 30, 2017
	($8,000,000.00)

	September 30, 2017
	($3,000,000.00)

	December 31, 2017
	$1.00

Actual:
	
			
	A.
	Net Income
	$   

	B.
	Interest Expense
	$

	C.
	To the extent included in the determination of Net Income:

	 

	 
	1.   depreciation expense
	$   

	 
	2.   amortization expense
	$   

	 
	3.   income tax expense
	$

	 
	4.   change in Deferred Revenue (positive or negative, as applicable)

	$

	 
	5.   capitalized software expenses
	$

	 
	6.   non-cash stock compensation expenses
	$   

	 
	7.   all other non-cash and/or non-recurring expenses approved by Bank in writing in its sole discretion
	$   

	 
	8.   The sum of lines 1 through 4 plus the sum of lines 6 through 7 minus line 5
	$   

	D.
	Adjusted EBITDA (line A plus line B plus line C.8)
	$   

	
					
	 
	Yes, in compliance
	 
	 
	No, not in complianceExhibit

Exhibit 10.1
EAST WEST BANCORP, INC.
EMPLOYMENT AGREEMENT

This Executive Employment Agreement, dated July 1, 2016 (the “Agreement”), is between East West Bank, a California banking corporation (the “Bank”) and Gregory L. Guyett (“Executive”). 
		
	1.
	POSITION AND RESPONSIBILITIES

		
	a.
	Position.  Executive is employed by the Bank to render services to the Bank in the position of President and Chief Operating Officer, reporting to the Chairman and Chief Executive Officer (“CEO”).

		
	b.
	Duties.  Executive shall serve as part of the executive leadership of the Bank and will perform such duties for, and render such services to, the Bank as are customary and incidental to the position of President and COO, and such other duties or services as may be from time to time assigned to him by CEO and which are consistent with such position.  Executive shall abide by the policies, rules, regulations, and practices as adopted or modified from time to time in the Bank’s sole discretion.

		
	c.
	No Conflict.  Executive represents and warrants that Executive’s execution of this Agreement, Executive’s employment with the Bank, and the performance of Executive’s proposed duties under this Agreement shall not violate any obligations Executive may have to any other employer, person or entity, including any obligations with respect to proprietary or confidential information of any other person or entity.

		
	d.
	Other Activities.  Except upon the prior written consent of the Bank, Executive will not, during the term of this Agreement, (i) accept any other employment, or (ii) engage, directly or indirectly, in any other business activity (whether or not pursued for pecuniary advantage) that might interfere with Executive’s duties and responsibilities hereunder or create a conflict of interest with the Bank.

		
	e.
	Start Date.  Executive’s start date with the Bank is October 3, 2016 (“Start Date”).

		
	2.
	TERM OF CONTRACT

The initial term of this Agreement commences as of the Start Date, and continues for two (2) years from the Start Date.  Thereafter, this Agreement is subject to annual renewal as may be mutually agreed by the Bank’s Board of Directors and Executive.
		
	3.
	COMPENSATION AND BENEFITS

		
	a.
	Annual Base Salary.  In consideration of the services to be rendered under this Agreement, the Bank shall pay Executive a salary of $28,846.15 bi-weekly or $750,000 annually (“Annual Base Salary”).  The Annual Base Salary shall be paid in accordance with the Bank’s regularly established payroll practices.  Executive’s Annual Base Salary will be reviewed from time to time in accordance with the established procedures of the Bank for adjusting salaries for similarly situated employees in the sole discretion of the Bank, however, Executive’s Annual Base Salary shall not be decreased at any time during the term of this Agreement.

		
	b.
	Benefits.  During employment with the Bank, Executive will participate in all employee benefit plans and perquisite arrangements that are made available to senior executives of the Bank generally, as such plans or arrangements may be amended from time to time in the Bank’s sole discretion.  Executive shall be eligible for 21 days of paid vacation annually.

		
	c.
	Expenses.  During Executive’s employment with the Bank, the Bank will reimburse Executive for all reasonable business expenses incurred in connection with the performance of Executive’s duties to the Bank or its affiliates in accordance with the Bank’s expense reimbursement policy.  Further, the Bank shall provide Executive with an annual car allowance of $12,000 for business-related purposes.

		
	d.
	Bonus.  Executive will be eligible to participate in the Bank’s annual performance-based cash incentive plan, with a target bonus opportunity (“Target Bonus”) of 100% of Annual Base Salary; provided, however, that the actual 

1

bonus for any given year will be determined and paid in accordance with the Bank’s annual bonus plan arrangements applicable to senior executives generally.  Executive’s first year Target Bonus will be pro-rated based on actual months of employment from his Start Date in 2016.
		
	e.
	Stock.  Executive will be eligible for annual stock grants, such grants being in amounts, and having terms and conditions as approved by the Board of Directors of the Bank (the “Board”).  The stock grants will serve as a long-term incentive plan that has and will have vesting schedules approved by the Board.  The initial annual stock grant will be in March 2017 and will be a grant of $2,200,000 of restricted stock units (“RSUs”) awarded pursuant to the East West Bancorp, Inc. 2016 Stock Incentive Plan, or any successor thereto (the “Equity Plan”), with a 3-year cliff vesting period and with such performance criteria or other criteria as shall be approved by the Board for senior executives generally.  The RSUs granted under this subsection (e) will be based on the closing price of the Bank’s stock as of a date that is approved by the Board.

		
	f.
	Sign-on Bonus.  On the Start Date, Executive will receive a grant of $1,000,000 of RSUs granted pursuant to the Equity Plan, with a 3-year cliff vesting period and subject to Internal Revenue Code (“IRC”) Section 162(m) performance criteria, provided that the performance period for such performance criteria shall be no longer than one (1) year.  The RSUs granted under this subsection (f) will be based on the closing price of the Bank’s stock as of the Start Date.

		
	4.
	RELOCATION

		
	a.
	Moving Allowance:  Executive will relocate from Chicago, Illinois to Los Angeles, California in connection with Executive’s acceptance of this employment.  Bank will provide Executive relocation assistance up to $50,000 (the “Moving Allowance”).  This allowance will cover household goods shipment and storage of household goods.  In the event Executive voluntarily resigns his employment within 12 months from his Start Date, Executive agrees to repay the Moving Allowance.

		
	b.
	Relocation Lump Sum Payment: In order to assist Executive in his relocation from Chicago, Illinois to Los Angeles, California, Bank will provide Executive a “Relocation Lump Sum Payment” of $35,000, payable with the first pay period following Executive’s Start Date.  In the event Executive voluntarily resigns his employment within 12 months from his Start Date, Executive agrees to repay the Relocation Lump Sum Payment.

		
	5.
	TERMINATION OF EMPLOYMENT

Executive’s employment with the Bank will terminate upon Executive’s death, and may be terminated (i) in the event of Executive’s Disability (as defined in subsection (d)); and (ii) by the Bank with or without Cause.  In the event that Executive’s employment is terminated for any reason, the Bank shall pay to Executive all accrued but unpaid Annual Base Salary through the termination date, accrued but unused vacation days through the termination date, unreimbursed business expenses incurred up through the termination date, subject to any other rights or remedies of the Bank under law (the “Accrued Obligations”).
		
	a.
	Termination for Cause by the Bank.  The Bank may terminate Executive’s employment for Cause at any time, with notice as required below, in which case Executive shall be entitled to receive the Accrued Obligations.  Thereafter, all obligations of the Bank under this Agreement shall cease.  For purposes of this Agreement, “For Cause” shall mean: (i) willful failure to substantially perform Executive’s duties to the Bank (other than due to death or Disability); (ii) misconduct that has caused or is reasonably expected to cause material economic or reputational harm to the Bank or any of its affiliates; (iii) breach of any fiduciary duty owed to the Bank or its affiliates; (iv) conviction of, or entering a plea of guilty or nolo contendere to, a felony; or (v) material breach or willful disregard of a written policy or code of conduct of the Bank.  The Bank shall provide Executive with at least ten (10) business days written notice of its intent to terminate Executive “for Cause,” which written notice shall (i) indicate the specific termination provision in this Agreement relied upon, (ii) sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated and (iii) specifies the date of termination.

2

		
	b.
	Termination Without Cause by the Bank or for Just Reason by Executive.  The Bank may terminate Executive’s employment with the Bank at any time for any reason or no reason at all, upon one month advance written notice, notwithstanding anything to the contrary contained in or arising from any statements, policies or practices of the Bank relating to the employment, discipline or termination of its employees.  In addition, it shall be considered termination without Cause by the Bank if (i) Executive terminates his employment for Just Reason or, (ii) without Executive’s consent, (A) this Agreement is not, whether initially or with respect to any subsequent renewal period, renewed or approved by Bank’s Board of Directors (other than in connection with a for Cause event), and (B) within one month following the end of the then-current employment term, Executive resigns from Bank.  Upon the Bank’s termination of Executive’s employment without Cause, Executive shall be entitled to receive the Accrued Obligations, and the Severance Pay and other benefits, as described in Section 5(f) below.  Thereafter, all obligations of the Bank under this Agreement shall cease.

		
	c.
	Termination By Death of Executive.  Executive’s employment shall terminate automatically upon Executive’s death, in which case Executive shall be entitled to receive the Accrued Obligations and any annual bonus earned but unpaid with respect to a performance year ending on or preceding the date of termination, payable as provided in Section 3.d. (without regard to any continued employment requirement but subject to all other applicable program terms and conditions and paid if, as and when paid to other senior Bank executives).  Thereafter all obligations of the Bank under this Agreement shall cease.  In addition, pursuant to the terms of the Equity Plan, all unvested RSUs that have been granted prior to the date of death shall immediately vest. Nothing in this Section shall affect any entitlement of Executive’s heirs or devisees to the benefits of any life insurance plan or other applicable benefits.

		
	d.
	Termination By Disability of Executive.  If Executive becomes eligible for the Bank’s long term disability benefits or if, in the sole opinion of the Bank, Executive is unable to carry out the responsibilities and functions of the position held by Executive by reason of any physical or mental impairment for more than ninety (90) consecutive days or more than one hundred and twenty (120) days in any twelve-month period (referred to hereinafter as Executive’s “Disability”), then, to the extent permitted by law, the Bank may terminate Executive’s employment.  Upon the Bank’s termination of Executive’s employment, Executive shall be entitled to receive the Accrued Obligations and any annual bonus earned but unpaid with respect to a performance year ending on or preceding the date of termination, payable as provided in Section 3.d. (without regard to any continued employment requirement but subject to all other applicable program terms and conditions and paid if, as and when paid to other senior Bank executives).  In addition, pursuant to the terms of the Equity Plan, all unvested RSUs that have been granted prior to the date of Disability shall immediately vest.  Thereafter all obligations of the Bank under this Agreement shall cease.  Nothing in this Section shall affect Executive’s rights under any disability plan in which Executive is a participant.

3

		
	e.
	Definitions.

Change of Control means: (i) any date upon which the directors of the Bank who were last nominated by the Board of Directors (the “Board”) for election as directors cease to constitute a majority of the directors of the Bank, excluding any directors who were nominated by those that became directors as a result of a contested director election (proxy contest); (ii) the date of the first public announcement that any person or entity, together with all Affiliates and Associates (as such capitalized terms are defined in Rule 12b‐2 promulgated under the Exchange Act of such person or entity, shall have become the Beneficial Owner (as defined in Rule 13d‐3 promulgated under the Exchange Act) of voting securities of the Bank representing over 50% of the voting power of the Bank; provided, however, that the terms “person” and “entity,” as used in this clause (ii), shall not include (a) the Bank or any of its subsidiaries, (b) any employee benefit plan of the Bank or any of its subsidiaries, (c) any entity holding voting securities of the Bank for or pursuant to the terms of any such plan or (d) any person or entity who was an over 50% Stockholder on the date of adoption of the Plan by the Board; or (iii) a reorganization, merger or consolidation of the Bank (other than a reorganization, merger or consolidation the purpose of which is (a) to change the Bank’s domicile solely within the United States or (b) the formation of a holding Bank in which the shareholders of the holding Bank after its formation are substantially the same as for the Bank prior to the holding Bank formation), the consummation of which results in the outstanding securities of any class then subject to Awards being exchanged for or converted into cash, property or a different kind of securities.
For purpose of this Agreement, Executive’s termination for “Just Reason” means any of the following: (i) A material reduction in title, duties or authority; (ii) relocation of the Executive’s office more than 50 miles from its current location in Pasadena, California without the Executive’s consent; (iii) any other material breach by the Bank of this Agreement or any other material agreement between the Executive and the Bank which causes material harm to the Executive; or (iv) if, following a Change of Control (as defined above), the successor does not assume all material obligations of the Bank to the Executive under this Agreement, or provide the Executive with alternative benefits of a substantially comparable economic value (and for the avoidance of doubt, following a Change in Control, failure to be the President and Chief Operating Officer of the successor and/or parent entity shall be treated as grounds for a Just Reason termination); provided, however, that within ninety (90) days from the date when the Executive has knowledge of any such breach, diminution or change, (x) the Executive shall have delivered to the Bank a written notice of the Executive’s intention to terminate his employment for Just Reason, which notice sets forth in reasonable detail the facts and circumstances claimed to provide a basis for the Executive to terminate his employment for Just Reason (an “Executive Cure Notice”), (y) the Executive shall have provided the Bank with thirty (30) days after receipt of such Executive Cure Notice to cure such circumstances and (z) failing a cure, the Executive shall have terminated his employment by delivery of a written notice of termination within thirty (30) days after the expiration of the thirty (30) day period set forth in clause (y); and provided, further, that the Bank may suspend the Executive (with pay and the other benefits provided for herein) during any period that the Bank in good faith determines is appropriate in connection with any active and ongoing investigation of the business of the Bank and such suspension shall not give rise to a termination for Just Reason.
		
	f.
	Severance.  In the event that Executive’s employment is terminated by the Bank without Cause, the Bank shall pay to Executive, in addition to Accrued Obligations, any annual bonus earned but unpaid with respect to a performance year ending on or preceding the date of termination, payable as provided in Section 3.d. (without regard to any continued employment requirement but subject to all other applicable program terms and conditions and paid if, as and when paid to other senior Bank executives), and a single lump sum amount as follows (“Severance Pay”): (a) an amount equal to 2 times of Executive’s then Annual Base Salary; and (b) an amount equal to the annual cash bonus payout last received by Executive.  In addition, the initial performance RSU grant, the sign-on performance RSU grant (described in Sections 3(e) and (f) respectively) and any 2018 equity award pursuant to Section 3(e) shall continue to vest according to the grant date schedules, provided that, such performance RSUs will be settled based on performance unit goal achievement, except that if such termination of employment occurs within two (2) years after a Change of Control, such performance RSUs will be settled as follows: (i) any RSUs for which the performance period has elapsed will continue to vest based on performance unit goal achievement, and (ii) any RSUs for which the performance period has not lapsed will be converted into time-based units based on the target performance level.

4

Executive’s eligibility for Severance Pay is at all times conditioned on Executive executing a general release substantially in the form of Exhibit A attached hereto, becoming effective and irrevocable within 60 days after Executive’s termination date.  Subject to the immediately preceding sentence, the Severance Pay shall be subject to all applicable payroll deductions and withholdings, including deductions for state and federal taxes and will be paid by check (or to an account designated by Executive in a single lump sum by wire transfer of immediately available funds) with the first payroll period following the date the general release becomes effective and irrevocable; provided, however, that to the extent required to comply with Code Section 409A of the Internal Revenue Code, in the event the 60 day period overlaps two calendar years, that any such Severance Pay shall be paid in the later calendar year.  For clarity, Executive shall not be entitled to any, and shall receive no, Severance Pay if Executive’s employment is terminated for Cause by the Bank, or due to death or Disability.
		
	6.
	TERMINATION OBLIGATIONS

		
	a.
	Return of Property.  Executive agrees that all property (including without limitation all equipment, tangible proprietary information, documents, records, notes, contracts and computer-generated materials) furnished to or created or prepared by Executive incident to Executive’s employment belongs to the Bank and shall be promptly returned to the Bank upon termination of Executive’s employment.

		
	b.
	Resignation and Cooperation.  During the Term of this Agreement and the 12-month period beginning upon the termination of the Term, at the Bank’s request, to the extent that such cooperation or assistance does not materially interfere with the Executive’s duties to any subsequent employer and at times and places reasonably convenient to the Executive, the Executive shall reasonably cooperate and assist the Bank in connection with any investigations by representatives of the Bank or by governmental authorities, any claims that have been or may be made against the Bank, and any claims that have been or may be made by the Bank, in any case, that in part arise from or relate to the period of time during which the Executive provided services to the Bank. The Executive shall promptly inform the Bank if (i) he becomes aware of any lawsuits involving such claims that may be filed against the Bank; or (ii) he is asked to assist in any investigation of the Bank, regardless of whether a lawsuit has then been filed against the Bank with respect to such investigation. If by reason of conflict of interest or confidentiality concern the Executive cannot be adequately advised or represented by Bank counsel in any such action, the Bank shall pay for separate legal counsel of the Executive’s choosing (which counsel shall be reasonably satisfactory to the Bank) in connection with such assistance.  The Bank shall promptly reimburse the Executive for all of his reasonable out-of-pocket expenses associated with such assistance (including travel expenses and the fees and any expenses of counsel as described above).

		
	c.
	Continuing Obligations.  Executive understands and agrees that Executive’s obligations under Sections 5, 6, 7 and 8 herein (including Exhibits B and C) shall survive the termination of Executive’s employment for any reason and the termination of this Agreement.

		
	d.
	Indemnification.

(i) During the term of this Agreement and thereafter throughout all applicable limitation periods, the Bank shall provide Executive (including his heirs, personal representatives, executors and administrators) with such coverage, as will be generally available to senior officers of the Bank under the Bank’s then current directors and officers liability insurance policy at the Bank’s sole expense.
(ii) In addition to the insurance coverage provided for in Section 6(d)(i) above, the Bank shall defend, hold harmless and indemnify Executive (and his heirs, personal representatives, executors and administrators) to the fullest extent permitted by the Bank’s articles and by-laws and applicable law from and against any and all liabilities, costs, claims and expenses including without limitation all costs and expenses incurred in defense of litigation, including attorneys’ fees, arising out of the employment of the Executive hereunder.
(iii) Nothing in this Agreement shall diminish any indemnification rights otherwise applicable to the Executive, and Bank agrees that it shall provide indemnification rights to the Executive that are no less favorable than other senior executives of the Bank.  This indemnification provision shall survive the termination of this Agreement.

5

		
	7.
	INVENTIONS AND PROPRIETARY INFORMATION; PROHIBITION ON THIRD PARTY INFORMATION

		
	a.
	Confidential Information Agreement.  Executive agrees to sign and be bound by the terms of the Bank’s Confidential Information Agreement, which is attached as Exhibit B (“Confidential Information Agreement”).

		
	b.
	Non-Solicitation.  Executive acknowledges that because of Executive’s position in the Bank, Executive will have access to material intellectual property and confidential information of the Bank.  During the term of Executive’s employment and for one year thereafter, in addition to Executive’s other obligations hereunder or under the Confidential Information Agreement, Executive shall not, for Executive or any third party, directly or indirectly use confidential information to solicit or otherwise induce any person employed by the Bank to terminate his/her employment or any customer to move their banking relationship from the Bank. 

		
	8.
	ARBITRATION

Executive agrees to sign and be bound by the terms of the Bank’s Arbitration Agreement, which is attached as Exhibit C.  In the event Executive substantially prevails in any such dispute (as determined based on the economic value of the claims) with respect to a majority of the claims, the Bank will reimburse Executive for Executive’s reasonable costs and expenses incurred in connection with such arbitration (including but not limited to reasonable attorneys’ fees).
		
	9.
	AMENDMENTS; WAIVERS; REMEDIES

This Agreement may not be amended or waived except by a writing signed by Executive and by a duly authorized representative of the Bank other than Executive.  Failure to exercise any right under this Agreement shall not constitute a waiver of such right.  Any waiver of any breach of this Agreement shall not operate as a waiver of any subsequent breaches.  All rights or remedies specified for a party herein shall be cumulative and in addition to all other rights and remedies of the party hereunder or under applicable law.
		
	10.
	ASSIGNMENT; BINDING EFFECT

		
	a.
	Assignment.  The performance of Executive is personal hereunder, and Executive agrees that Executive shall have no right to assign and shall not assign or purport to assign any rights or obligations under this Agreement.  This Agreement may be assigned or transferred by the Bank; and nothing in this Agreement shall prevent the consolidation, merger or sale of the Bank or a sale of any or all or substantially all of its assets.

		
	b.
	Binding Effect.  Subject to the foregoing restriction on assignment by Executive, this Agreement shall inure to the benefit of and be binding upon each of the parties; the affiliates, officers, directors, agents, successors and assigns of the Bank; and the heirs, devisees, spouses, legal representatives and successors of Executive.

		
	11.
	SEVERABILITY

If any provision of this Agreement shall be held by a court or arbitrator to be invalid, unenforceable, or void, such provision shall be enforced to the fullest extent permitted by law, and the remainder of this Agreement shall remain in full force and effect.  In the event that the time period or scope of any provision is declared by a court or arbitrator of competent jurisdiction to exceed the maximum time period or scope that such court or arbitrator deems enforceable, then such court or arbitrator shall reduce the time period or scope to the maximum time period or scope permitted by law.
		
	12.
	TAXES & SECTION 409A

All amounts paid under this Agreement (including without limitation Annual Base Salary, Severance Pay, and annual bonus) shall be paid less all applicable state and federal tax withholdings and any other withholdings required by any applicable jurisdiction.
Section 409A.  The Bank and Executive intend that any amounts payable hereunder comply with or are exempt from Section 409A of the Code (“Section 409A”) (including under Treasury Regulation §§ 1.409A-1(b)(4) (“short-term deferrals”) and (b)(9) (“separation pay plans,” including the exceptions under subparagraph (iii) and subparagraph (v)(D)) and other applicable provisions of Treasury Regulation §§ 1.409A-1 through A-6).  

6

For purposes of Section 409A, each of the payments that may be made under this letter shall be deemed to be a separate payment for purposes of Section 409A.  This Agreement shall be administered, interpreted and construed in a manner that does not result in the imposition of additional taxes, penalties or interest under Section 409A.  The Bank and Executive agree to negotiate in good faith to amend the Agreement as may be necessary or desirable to avoid the imposition of taxes, penalties or interest under Section 409A.  Neither the Bank nor Executive shall have the right to accelerate or defer the delivery of any such payments or benefits except to the extent specifically permitted or required by Section 409A.  With respect to the time of payments of any amounts under this Agreement that are “deferred compensation” subject to Section 409A, references to “termination of employment” (and substantially similar phrases) shall mean “separation from service” within the meaning of Section 409A.  Further, with respect to any amounts payable under this Agreement that are determined to be “deferred compensation” subject to Section 409A, such payment or benefit will be made at such times and in such forms as the Bank determines are required to comply with Section 409A (including, without limitation, in the case of a “specified employee” within the meaning of Section 409A, the six (6) month delay payable upon a separation from service).
For the avoidance of doubt, it is intended that any expense reimbursement made to Executive hereunder shall be exempt from Section 409A.  Notwithstanding the foregoing, if any expense reimbursement made hereunder shall be determined to be “deferred compensation” within the meaning of Section 409A, then (a) the amount of the indemnification payment or expense reimbursement during one taxable year shall not affect the amount of the expense reimbursement during any other taxable year; (b) the expense reimbursement shall be made on or before the last day of Executive’s taxable year following the year in which the expense was incurred; and (c) the right to expense reimbursement hereunder shall not be subject to liquidation or exchange for another benefit. 
		
	13.
	GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of California.
		
	14.
	INTERPRETATION

This Agreement shall be construed as a whole, according to its fair meaning, and not in favor of or against any party.  Sections and section headings contained in this Agreement are for reference purposes only, and shall not affect in any manner the meaning or interpretation of this Agreement.  Whenever the context requires, references to the singular shall include the plural and the plural the singular. 
		
	15.
	COUNTERPARTS

This Agreement may be executed in any number of counterparts, each of which shall be deemed an original of this Agreement, but all of which together shall constitute one and the same instrument. 
		
	16.
	AUTHORITY

Each party represents and warrants that such party has the right, power and authority to enter into and execute this Agreement and to perform and discharge all of the obligations hereunder; and that this Agreement constitutes the valid and legally binding agreement and obligation of such party and is enforceable in accordance with its terms.
		
	17.
	ENTIRE AGREEMENT

This Agreement is intended to be the final, complete, and exclusive statements of the terms of Executive’s employment by the Bank and may not be contradicted by evidence of any prior or contemporaneous statements or agreements, except for agreements specifically referenced herein (including the Confidential Information Agreement attached as Exhibit B and the Arbitration Agreement attached as Exhibit C).  Except as expressly provided herein, the terms of the Bank’s employee benefit plans, incentive bonus plans, and stock plans shall continue to govern the benefits provided under each respective plan.  To the extent that the practices, policies or procedures of the Bank, now or in the future, apply to Executive and are inconsistent with the terms of this Agreement, the provisions of this Agreement shall control.  Any subsequent change in Executive’s duties, position, or compensation will not affect the validity or scope of this Agreement.

7

		
	18.
	EXECUTIVE ACKNOWLEDGEMENT

EXECUTIVE ACKNOWLEDGES EXECUTIVE HAS HAD THE OPPORTUNITY TO CONSULT LEGAL COUNSEL CONCERNING THIS AGREEMENT, THAT EXECUTIVE HAS READ AND UNDERSTANDS THE AGREEMENT, THAT EXECUTIVE IS FULLY AWARE OF ITS LEGAL EFFECT, AND THAT EXECUTIVE HAS ENTERED INTO IT FREELY BASED ON EXECUTIVE’S OWN JUDGMENT AND NOT ON ANY REPRESENTATIONS OR PROMISES OTHER THAN THOSE CONTAINED IN THIS AGREEMENT OR ANY AGREEMENTS REFERENCE HEREIN.
		
	19.
	REIMBURSEMENT OF EXECUTIVE’S LEGAL FEES

The Bank agrees to reimburse Executive for the legal fees reasonably incurred related to this Agreement, within 30 days of execution of this Agreement provided that Executive delivers an invoice to Bank within 15 days of execution of this Agreement.
IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the date first written above.
	
					
	 
	 
	 
	EXECUTIVE

	 
	 
	 
	 
	 

	Date:
	July 1, 2016
	 
	By:
	/s/ Gregory L. Guyett

	 
	 
	 
	 
	Gregory L. Guyett

	 
	 
	 
	 
	 

	 
	 
	 
	East West Bank

	 
	 
	 
	 
	 

	Date:
	July 1, 2016
	 
	By:
	/s/ Gary Teo

	 
	 
	 
	 
	Gary Teo

	 
	 
	 
	 
	Its: Head of Human Resources

8

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