Document:

bnft-ex10206_526.htm

Exhibit 10.20.6

Portions of this exhibit marked [ * ] are requested to be treated confidentially.

EXECUTION COPY

SIXTH Amendment Agreement

 

This Sixth Amendment Agreement (this “Amendment”) is entered into this 26th day of April 2017, by and among BENEFITFOCUS, INC., a Delaware corporation (the “Parent”), BENEFITFOCUS.COM, INC., a South Carolina corporation (“Benefitfocus.com”), and BENEFITSTORE, INC., a South Carolina corporation (“BenefitStore”, and together with the Parent and Benefitfocus.com, each individually, a “Borrower”, and collectively, the “Borrowers”), the several banks and other financial institutions or entities party hereto (each a “Lender” and, collectively, the “Lenders”), and SILICON VALLEY BANK, as administrative agent and collateral agent for the Lenders (in such capacity, the “Administrative Agent”).

Recitals

A.     The Borrowers, the Lenders and the Administrative Agent have entered into that certain Credit Agreement dated as of February 20, 2015, as amended pursuant to that certain First Amendment Agreement dated June 16, 2015, pursuant to that certain Second Amendment Agreement dated December 18, 2015, pursuant to that certain Third Amendment Agreement dated March 24, 2016, pursuant to that certain Fourth Amendment Agreement dated October 28, 2016, and pursuant to that certain Fifth Amendment Agreement dated December 12, 2016 (as amended and as the same may from time to time be further amended, modified, supplemented or restated, the “Credit Agreement”), pursuant to which the Lenders have extended credit to the Borrowers for the purposes permitted in the Credit Agreement.

B.     In connection with the Credit Agreement, the Borrowers have entered into that certain Guarantee and Collateral Agreement dated as of February 20, 2015, in favor of the Administrative Agent for the benefit of the Lenders (as the same may from time to time be amended, modified, supplemented or restated, the “Guarantee and Collateral Agreement”).

C.     The Borrowers have requested and the Required Lenders and the Administrative Agent agree to modify and amend certain terms and conditions of the Credit Agreement and the Guarantee and Collateral Agreement and to consent to certain transactions to be entered into by the Borrowers that would otherwise be prohibited by the covenants in the Credit Agreement and the Guarantee and Collateral Agreement.

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 Credit Agreement.

2.     Amendments to Loan Documents.

 

 

2.1     Amendments to Credit Agreement. 

2.1.1     Section 1.1 (Defined Terms).  

(a)     The definition of “Consolidated EBITDA” is amended and restated in its entirety as follows:

““Consolidated EBITDA”:  with respect to the Parent and its consolidated Subsidiaries for any trailing sixth month period for which a calculation is to be made under this Agreement, (a) the sum, without duplication, of the amounts for such period of (i) Consolidated Net Income, plus (ii) Consolidated Interest Expense, plus (iii) provisions for taxes based on income, plus (iv) total depreciation expense, plus (v) total amortization expense, plus (vi) non-cash compensation expense, plus (vii) the fees, costs and expenses incurred in connection with this Agreement and the other Loan Documents and the transactions hereunder and thereunder, plus (viii) reasonable one-time fees, costs and expenses incurred in connection with a Permitted Acquisition or a successful offering or issuance of Capital Stock, in each case to the extent approved in writing by the Administrative Agent as an ‘add-back’ to Consolidated EBITDA, plus (ix) other non‐cash items reducing Consolidated Net Income (excluding any such non‐cash item to the extent that it represents an accrual or reserve for potential cash items in any future period or amortization of a prepaid cash item that was paid in a prior period) approved by the Administrative Agent in writing as an ‘add back’ to Consolidated EBITDA, plus (x) any extraordinary or non-recurring losses, expenses or charges not to exceed $1,000,000 in the aggregate for such trailing six month period (or such higher amounts as may be approved by the Required Lenders as an ‘add-back’ to Consolidated EBITDA), minus (b) the sum, without duplication of the amounts for such period of (i) other non‐cash items increasing Consolidated Net Income for such period (excluding any such non‐cash item to the extent it represents the reversal of an accrual or reserve for potential cash item in any prior period), plus (ii) interest income.”

(b)     The definition of “Liquidity” is amended and restated in its entirety as follows:

“Liquidity”:  at any time, the sum of (i) the aggregate amount of unrestricted cash and Cash Equivalents (including short term marketable securities) held by the Borrowers and the Guarantors in Deposit Accounts or Securities Accounts maintained with SVB or SVB’s Affiliates or another Lender or an Affiliate thereof, or with National Bank of South Carolina (“NBSC”, provided that the aggregate amounts held in deposit accounts with NBSC shall not exceed $6,500,000 at any time), and in each case subject to a first priority lien in favor of the Administrative Agent, including, without limitation, pursuant to a Deposit Account Control Agreement with respect to each such Deposit Account or Securities Account Control Agreement with respect to each such Securities Account, plus (ii) the Available Revolving Commitment at such time; provided that, in connection with any calculation of Liquidity required hereunder, at least $25,000,000 must consist 

 

 

of unrestricted cash and Cash Equivalents (including short term marketable securities) satisfying the requirements of clause (i) above.

2.1.2     Section 7.1 (Financial Covenants).  

(a)     Section 7.1(a) of the Credit Agreement (Minimum Liquidity) is hereby amended and restated as follows:

“Minimum Liquidity.  Permit Liquidity at any time, as tested on the last day of each month, to be less than $40,000,000; provided that, in connection with any calculation of Liquidity required under this Section 7.1(a), at least $25,000,000 must consist of unrestricted cash and Cash Equivalents (including short term marketable securities) satisfying the requirements of clause (i) of the definition of Liquidity.

(b)     Section 7.1(b) of the Credit Agreement (Minimum Consolidated EBITDA) is hereby amended by deleting the grid set forth therein and by substituting the following in its stead: 

		
	
Quarter Ending
	
Minimum Consolidated EBITDA for Applicable Trailing Sixth Month Period

 

	
March 31, 2017
	
$[ * ]

	
June 30, 2017
	
$[ * ]

	
September 30, 2017
	
$[ * ]

	
December 31, 2017
	
$[ * ]

	
March 31, 2018
	
$[ * ]

	
June 30, 2018
	
$[ * ]

	
September 30, 2018
	
$[ * ]

	
December 31, 2018
	
$[ * ]

	
March 31, 2019
	
$[ * ]

	
June 30, 2019
	
$[ * ]

	
September 30, 2019
	
$[ * ]

	
December 31, 2019
	
$[ * ]

 

 

                                               

[*] Confidential treatment requested; certain information omitted and filed separately with the SEC.

 

 

2.1.3     Exhibit B (Form of Compliance Certificate).  Exhibit B to the Credit Agreement is hereby deleted in its entirety and the Exhibit A attached hereto is substituted in its stead.

2.2     Amendment to Guarantee and Collateral Agreement.  The definition of “Excluded Assets” is amended and restated in its entirety as follows: 

“Excluded Assets”:  collectively,

(a)     margin stock (within the meaning of Regulation U issued by the Board) to the extent the creation of a security interest therein in favor of the Administrative Agent (for the ratable benefit of the Secured Parties) will result in a violation of Regulation U issued by the Board;

(b)     motor vehicles and other equipment covered by certificates of title; 

(c)     capital stock of any Excluded Foreign Subsidiary (other than Capital Stock representing up to 66% of the total outstanding voting Capital Stock of any Excluded Foreign Subsidiary); provided, however, that any Proceeds, substitutions or replacements of any Excluded Assets shall not be Excluded Assets (unless such Proceeds, substitutions or replacements are otherwise, in and of themselves, Excluded Assets); and 

(d)     Deposit Accounts opened by any Grantor that are notional and custodial accounts used exclusively for the maintenance of third-party and employee funds in connection with account administration and billing services offered by Grantors.

2.3     Amendment to Schedules.  Schedules 1, 5 and 6 to the Guarantee and Collateral Agreement attached hereto hereby amend and restate the related schedules contained in the Guarantee and Collateral Agreement. 

3.     Consents and Acknowledgments.

3.1     Borrowers have advised that Benefitfocus.com has previously granted a license for its “Imax” product to Acord Corporation (“Acord”) pursuant to that certain Exclusive License Agreement dated as of November 11, 2016.  Benefitfocus.com intends to transfer legal title to the “Imax” product and will retain a perpetual, irrevocable, worldwide, right and license to continue to use the “Imax” product.  The Required Lenders hereby consent to the legal transfer of the “Imax” product notwithstanding the terms of (a) Section 7.5 or any other provision of the Credit Agreement, and (b) Section 5.16 or any other provision of the Guarantee and Collateral Agreement.

3.2     Borrowers have advised that Benefitfocus.com has determined it is desirable in the conduct of its business to cease prosecution of all non-U.S. patent applications.  The Required Lenders hereby (a) acknowledge that such abandonment, cancellation, non-renewal or discontinuance of use or maintenance of all non-U.S. patent applications is permitted pursuant to Section 7.5(l) of the Credit Agreement, (b) consent to such abandonment, cancellation, non-renewal or discontinuance of use or maintenance of all 

 

 

non-US patent applications notwithstanding the terms of Section 5.8(g) of the Guarantee and Collateral Agreement and (c) waive any requirement for the Borrowers to provide notice to the Administrative Agent with respect thereto under Section 5.8(e) of the Guarantee and Collateral Agreement.

3.3     Borrowers have advised that one or more of them intend to offer “Account Administration and Billing Services”.  In connection with providing such services, Borrowers will be required to maintain notional and custodial accounts at a third party bank.  The Required Lenders hereby consent to the formation and maintenance of such notional and custodial accounts and agree that such accounts will not constitute Collateral to the extent such accounts are used exclusively for the maintenance of third-party and employee funds.

4.     Conditions Precedent to Effectiveness.  This Amendment shall not be effective until each of the following conditions precedent have been fulfilled to the satisfaction of (and in form and substance satisfactory to, as applicable) the Administrative Agent (such date, the “Sixth Amendment Effective Date”):

4.1     This Amendment shall have been duly executed and delivered by the respective parties hereto.  The Administrative Agent shall have received a fully executed copy hereof.

4.2     All necessary consents and approvals to this Amendment shall have been obtained by the Loan Parties.

4.3     After giving effect to this Amendment, each of the representations and warranties herein and in the Credit Agreement and the other Loan Documents (i) that is qualified by materiality shall be true and correct, and (ii) that is not qualified by materiality, shall be true and correct in all material respects, in each case, on and as of the Sixth Amendment Effective Date as if made on and as of such date, except to the extent any such representation and warranty expressly relates to an earlier date, in which case such representation and warranty shall have been true and correct in all material respects as of such earlier date.

4.4     The payment by the Borrower to the Administrative Agent, for the ratable benefit of each Lender party to this amendment based on such Lender’s Revolving Percentage, an amendment fee equal to .10% of the Revolving Commitment of each Lender party hereto.

For purposes of determining compliance with the conditions specified in this Section 4, each Lender that has executed this Amendment shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter either sent (or made available) by the Administrative Agent to such Lender for consent, approval, acceptance or satisfaction, or required thereunder to be consented to or approved by or acceptable or satisfactory to such Lender, unless an officer of the Administrative Agent responsible for the transactions contemplated by the Loan Documents shall have received notice from such Lender prior to the Sixth Amendment Effective Date specifying such Lender’s objection thereto and such objection shall not have been withdrawn by notice to the Administrative Agent to that effect on or prior to the Sixth Amendment Effective Date.

 

 

5.     Limitation of Amendment.

5.1     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 the Administrative Agent or the Lenders may now have or may have in the future under or in connection with any Loan Document.

5.2     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.

6.     Representations and Warranties.  To induce the Administrative Agent and the Required Lenders to enter into this Amendment, the Borrowers hereby represent and warrant as follows:

6.1     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;

6.2     Each Borrower has the power and authority to execute and deliver this Amendment and to perform its obligations under the Credit Agreement, as amended by this Amendment;

6.3     The execution and delivery by each Borrower of this Amendment and the performance by such Borrower of its obligations under the Credit Agreement, as amended by this Amendment, have been duly authorized; 

6.4     The execution and delivery by each Borrower of this Amendment and the performance by each Borrower of its obligations under the Credit Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting such Borrower, (b) any contractual restriction with a Person binding on such Borrower, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on such Borrower, or (d) the organizational documents of such Borrower; 

6.5     The execution and delivery by each Borrower of this Amendment and the performance by such Borrower of its obligations under the Credit 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 such Borrower, except as already has been obtained or made; and

6.6     This Amendment has been duly executed and delivered by each Borrower and is the binding obligation of such Borrower, enforceable against such 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.

7.     No Defenses of Borrowers.  Each Borrower hereby acknowledges and agrees that such Borrower has no offsets, defenses, claims, or counterclaims against the Administrative Agent or any Lender with respect to the Obligations, or otherwise, and that if such Borrower now has, or ever did have, any offsets, defenses, claims, or counterclaims against the Administrative Agent or any Lender, whether known or unknown, at law or in equity, all of them are hereby expressly WAIVED and such Borrower hereby RELEASES the Administrative Agent and each Lender from any liability thereunder.

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.     Effect on Loan Documents.

10.1     The amendments set forth herein shall be limited precisely as written and shall not be deemed (a) to be a forbearance, waiver, or modification of any other term or condition of the Credit Agreement or of any Loan Documents or to prejudice any right or remedy which the Administrative Agent may now have or may have in the future under or in connection with the Loan Documents; (b) to be a consent to any future consent or modification, forbearance, or waiver to the Credit Agreement or any other Loan Document, or to any waiver of any of the provisions thereof; or (c) to limit or impair the Administrative Agent’s right to demand strict performance of all terms and covenants as of any date.  The Borrowers, on behalf of each Loan Party, hereby ratify and reaffirm the Borrowers’ obligations under the Credit Agreement and each Loan Party’s obligations under each other Loan Document to which it is a party and agrees that none of the amendments or modifications to the Credit Agreement set forth in this Amendment shall impair any Loan Party’s obligations under the Loan Documents or the Administrative Agent’s rights under the Loan Documents.  The Borrowers, on behalf of each Loan Party, hereby further ratify and reaffirm the validity and enforceability of all of the Liens heretofore granted, pursuant to and in connection with the Guarantee and Collateral Agreement or any other Loan Document to the Administrative Agent on behalf and for the benefit of the Secured Parties, as collateral security for the obligations under the Loan Documents, in accordance with their respective terms, and acknowledge that all of such Liens, and all collateral heretofore pledged as security for such obligations, continues to be and remain collateral for such obligations (as amended hereby) from and after the date hereof.  The Borrowers, on behalf of each Loan Party, acknowledge and agree that the Credit Agreement and each other Loan Document is still in full force and effect and acknowledge as of the date hereof that no Loan Party has any defenses to enforcement of the Loan Documents.  The Borrowers, on behalf of each Loan Party, waive any and all defenses to enforcement of the Credit Agreement as amended hereby and each other Loan Document that 

 

 

might otherwise be available as a result of this Amendment.  To the extent any terms or provisions of this Amendment conflict with those of the Credit Agreement or other Loan Documents, the terms and provisions of this Amendment shall control.

10.2     To the extent that any terms and conditions in any of the Loan Documents shall contradict or be in conflict with any terms or conditions of the Credit Agreement, after giving effect to this Amendment, such terms and conditions are hereby deemed modified or amended accordingly to reflect the terms and conditions of the Credit Agreement as modified or amended hereby.

10.3     This Amendment is a Loan Document.

11.     Severability.  The provisions of this Amendment are severable, and if any clause or provision shall be held invalid or unenforceable in whole or in part in any jurisdiction, then such invalidity or unenforceability shall affect only such clause or provision, or part thereof, in such jurisdiction and shall not in any manner affect such clause or provision in any other jurisdiction, or any other clause or provision in this Amendment in any jurisdiction.

12.     Choice of Law. Section 10.13 and Section 10.14 of the Credit Agreement are hereby incorporated by reference in their entity mutatis mutandis.

 [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.

 

BORROWERS:

		
	
BENEFITFOCUS.COM, INC.

 

By:    /s/ Jeffrey M. Laborde                             

Name:    Jeffrey M. Laborde                             

Title:    CFO                                                      

 
	
BENEFITFOCUS, INC.

 

By:    /s/ Jeffrey M. Laborde                             

Name:    Jeffrey M. Laborde                             

Title:    CFO                                                      

	
 
	
BENEFITSTORE, INC.

 

By:    /s/ Jeffrey M. Laborde                             

Name:    Jeffrey M. Laborde                             

Title:    CFO                                                       

	
 
	
 

 

Signature Page to Sixth Amendment

 

 

 

 

SILICON VALLEY BANK, as Administrative Agent and as a Lender

By:    /s/ Will Deevy                                          

Name:     Will Deevy                                         

Title:       Vice President                                    

 

 

Signature Page to Sixth Amendment

 

 

COMERICA BANK, as a Lender

By:    /s/ John Benetti                                        

Name:     John Benetti                                       

Title:       SVP                                                    

 

Signature Page to Sixth Amendment

 

 

 

PACIFIC WESTERN BANK, as a Lender

By:    /s/ Adam Glick                                         

Name:     Adam Glick                                        

Title:       SVP                                                    

 

 

Signature Page to Sixth Amendment

 

 

 

GOLDMAN SACHS LENDING PARTNERS LLC, as a Lender

By:    /s/ Ushma Dedhiya                                   

Name:     Ushma Dedhiya                                  

Title:       Authorized Signatory                         

 

 

Signature Page to Sixth Amendment

 

EXHIBIT A

EXHIBIT B

FORM OF COMPLIANCE CERTIFICATE

BENEFITFOCUS, INC.
BENEFITFOCUS.COM, INC.
BENEFITSTORE, INC. 

 

Date:  ___________ ____, 20____

 

 1.                       This Compliance Certificate is delivered pursuant to Section 6.2(b) of that certain Credit Agreement, dated as of February 20, 2015, by and among BENEFITFOCUS, INC., a Delaware corporation (“Parent”), BENEFITFOCUS.COM, INC., a South Carolina corporation (“Benefitfocus.com”), and BENEFITSTORE, INC., a South Carolina corporation (“BenefitStore”, and together with Parent and Benefitfocus.com, each individually, a “Borrower”, and collectively, the “Borrowers”), the several banks and other financial institutions or entities from time to time parties thereto (each a “Lender” and, collectively, the “Lenders”), SILICON VALLEY BANK, as the Issuing Lender and the Swingline Lender, Silicon Valley Bank (“SVB”), as administrative agent and collateral agent for the Lenders (in such capacity, the “Administrative Agent”) and COMERICA BANK, as documentation agent (in such capacity, the “Documentation Agent”) (as amended, restated, amended and restated, supplemented, restructured or otherwise modified from time to time, the “Credit Agreement”).  Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

2.   The undersigned, a duly authorized and acting Responsible Officer of Parent, hereby certifies, in his/her capacity as an officer of Parent, and not in any personal capacity, as follows:

3.   I have reviewed and am familiar with the contents of this Compliance Certificate.

4.   I have reviewed the terms of the Credit Agreement and the other Loan Documents and have made, or caused to be made under my supervision, a review in reasonable detail of the transactions and condition of Parent and its Subsidiaries during the accounting period covered by the financial statements attached hereto as Attachment 1 (the “Financial Statements”).  Except as set forth on Attachment 2, such review did not disclose the existence during or at the end of the accounting period covered by the Financial Statements, and I have no knowledge of the existence as of the date of this Compliance Certificate, of any condition or event which constitutes a Default or an Event of Default. 

5.   Attached hereto as Attachment 3 are the computations showing compliance with the covenants set forth in Section 7.1 of the Credit Agreement.

6.   [To the extent not previously disclosed to the Administrative Agent, a description of any change in the jurisdiction of organization of any Loan Party.]

7.   [To the extent not previously disclosed to the Administrative Agent, a list of any material patents, registered trademarks or registered copyrights issued to or acquired by any Loan Party since [the Closing Date][the date of the most recent report delivered].]

[Remainder of page intentionally left blank; signature page follows]

Exhibit B

IN WITNESS WHEREOF, I have executed this Compliance Certificate as of the date first written above. 

PARENT, for itself and on behalf of each other Borrower:

 

BENEFITFOCUS, INC.

 

By:                                                                        

Name:                                                                   

Title:                                                                     

 

 

Exhibit B

 
 
 

 

 

Attachment 1
to Compliance Certificate

[Attach Financial Statements]

 

Attachment 1 to Compliance Certificate

 

Attachment 2
to Compliance Certificate

Except as set forth below, no Default or Event of Default has occurred.  [If a Default or Event of Default has occurred, the following describes the nature of the Default or Event of Default in reasonable detail and the steps, if any, being taken or contemplated by the Borrowers to be taken on account thereof.]

 

 

Attachment 2 to Compliance Certificate

 

Attachment 3
to Compliance Certificate

Preliminary Note to Compliance Certificate Calculations

The information described herein is as of [____________], [____] (the “Statement Date”), and pertains to the subject period described below.

 

(a)              Minimum Liquidity. 

 

Required: Not permit Liquidity at any time, as tested on the last day of each month, to be less than $40,000,000; provided that at least $25,000,000 must consist of unrestricted cash and Cash Equivalents (including short term marketable securities) satisfying the requirements of clause (i) of the definition of Liquidity.

 

Actual:

 

			
	
A.
	
The Available Revolving Commitment as of the Statement Date

 
	
   $                       

	
B.
	
The aggregate amount of unrestricted cash and Cash Equivalents (including short term marketable securities) held by the Borrowers and the Guarantors in Deposit Accounts or Securities Accounts maintained with SVB or SVB’s Affiliates or another Lender or an Affiliate thereof, or with National Bank of South Carolina (“NBSC”, provided that the aggregate amounts held in deposit accounts with NBSC shall not exceed $6,500,000 at any time), and in each case subject to a first priority lien in favor of the Administrative Agent, including, without limitation, pursuant to a Deposit Account Control Agreement with respect to each such Deposit Account or Securities Account Control Agreement with respect to each such Securities Account; provided that, in connection with any calculation of Liquidity required hereunder, at least $25,000,000 must consist of unrestricted cash and Cash Equivalents (including short term marketable securities) satisfying the requirements of clause (i) of the definition of Liquidity.

 
	
   $                       

	
C.
	
MINIMUM LIQUIDITY (the sum of line A plus line B)

 
	
   $                       

 

Does line C consist of not less than $25,000,000 of unrestricted cash and Cash Equivalents (including short term marketable securities) satisfying the requirements of clause (i) of the definition of Liquidity?

 

              No, not in Compliance                                                       Yes, in Compliance

 

Is line C equal to or greater than $40,000,000?

 

 

              No, not in Compliance                                                        Yes, in Compliance

Attachment 2 to Compliance Certificate

 

(b)          Minimum Consolidated EBITDA.  

 

Required: Permit Consolidated EBITDA for any quarter specified below, as calculated on a trailing six (6) months basis, to be less than the correlative amount specified below: 

 

		
	
Quarter Ending
	
Minimum Consolidated EBITDA for Applicable Trailing Six Month Period

 

	
March 31, 2017
	
$[ * ]

	
June 30, 2017
	
$[ * ]

	
September 30, 2017
	
$[ * ]

	
December 31, 2017
	
$[ * ]

	
March 31, 2018
	
$[ * ]

	
June 30, 2018
	
$[ * ]

	
September 30, 2018
	
$[ * ]

	
December 31, 2018
	
$[ * ]

	
March 31, 2019
	
$[ * ]

	
June 30, 2019
	
$[ * ]

	
September 30, 2019
	
$[ * ]

	
December 31, 2019
	
$[ * ]

 

 Actual: All amounts measured on a trailing six month basis:

 

 

			
	
A.
	
Consolidated Net Income

 
	
   $                       

	
B.
	
Consolidated Interest Expense

 
	
   $                       

	
C.
	
Provisions for taxes based on income

 
	
   $                       

	
D.

 
	
Total depreciation and amortization expense
	
   $                       

	
E.

 
	
Non-cash compensation expense
	
   $                       

	
F.

 
	
The fees, costs and expenses incurred in connection with the Credit Agreement and the other Loan Documents and the transactions thereunder
	
   $                       

Exhibit B

 
 
                                               

[*] Confidential treatment requested; certain information omitted and filed separately with the SEC.

 

 

 

			
	
G.

 
	
Reasonable one-time fees, costs and expenses incurred in connection with a Permitted Acquisition or a successful offering or issuance of Capital Stock, in each case to the extent approved in writing by the Administrative Agent as an ‘add-back’ to Consolidated EBITDA

 
	
   $                       

	
H.

 
	
Other non‐cash items reducing Consolidated Net Income (excluding any such non‐cash item to the extent that it represents an accrual or reserve for potential cash items in any future period or amortization of a prepaid cash item that was paid in a prior period) approved by the Administrative Agent in writing as an ‘add back’ to Consolidated EBITDA

 
	
   $                       

	
I.
	
any extraordinary or non-recurring losses, expenses or charges not to exceed $1,000,000 in the aggregate in any trailing sixth month period (or such higher amounts as may be approved by the Required Lenders as an ‘add-back’ to Consolidated EBITDA)

 
	
 

 

   $                       

	
J.
	
The Sum of lines A through I

 
	
   $                       

	
K.

 
	
Other non‐cash items increasing Consolidated Net Income for such period (excluding any such non‐cash item to the extent it represents the reversal of an accrual or reserve for potential cash item in any prior period)

 
	
   $                       

	
L.

 
	
Interest Income
	
   $                       

	
M.

 
	
The Sum of lines K and L
	
   $                       

	
N.

 
	
CONSOLIDATED EBITDA (line J minus line M)
	
   $                       

 

Is Line N equal to or greater than $[                                             ]?

 

 

 

 

Exhibit B

 
 
 

 

Schedule 1

NOTICE ADDRESSES OF GUARANTORS

		
	
Guarantor
	
Notice Address

	
Benefitfocus, Inc.
	
100 Benefitfocus Way

Charleston, SC 29492

Attention: Chief Financial Officer and 

General Counsel

E-Mail: Legal1@benefitfocus.com

	
Benefitfocus.com, Inc.
	
100 Benefitfocus Way

Charleston, SC 29492

Attention: Chief Financial Officer and 

General Counsel

E-Mail: Legal1@benefitfocus.com

	
BenefitStore, Inc.
	
100 Benefitfocus Way

Charleston, SC 29492

Attention: Chief Financial Officer and 

General Counsel

E-Mail: Legal1@benefitfocus.com

 

 

Schedule 1

 

Schedule 5

LOCATIONS OF EQUIPMENT AND INVENTORY

		
	
Grantor
	
Address Location

	
Benefitfocus, Inc.
	
N/A

	
Benefitfocus.com, Inc.
	
100 Benefitfocus Way

Charleston, SC 29492

	
125 Fairchild Street

Charleston, SC 29492

	
215 Fairchild Street

Charleston, SC 29492

	
5935 Rivers Avenue

North Charleston, SC 29406

	
1016 Woods Crossing Road

Suite B

Greenville, SC 29607

	
400 Riverwalk Terrace, Riverwalk Crossing

Suites 160, 210, 240 & 250

Jenks, OK 74037

Effective May 1, 2017:

400 Riverwalk Terrace, Riverwalk Crossing

Suite 160

Jenks, OK 74037

	
TierPoint Hosted Solutions LLC f/k/a Windstream Hosted Solutions LLC

5301 Departure Drive, Suite 111

Raleigh, NC 27616

	
TierPoint Hosted Solutions LLC f/k/a Windstream Hosted Solutions LLC

4021 Rose Lake Drive

Charlotte, NC 28217

	
Exhibit Concepts, Inc.

700 Crossroads Court

Vandalia, OH 45377

	
Stockade Storage

460 Seven Farms Drive

Daniel Island, SC 29492

	
BenefitStore, Inc.
	
100 Benefitfocus Way

Charleston, SC 29492

 

 

Schedule 5

 

Schedule 6

RIGHTS OF THE GRANTORS RELATING TO PATENTS

Issued Patents of Benefitfocus, Inc.

NONE

Pending Patent Applications of Benefitfocus, Inc.

NONE

Issued Patents and Pending Patent Applications Licensed to Benefitfocus, Inc.

NONE

Issued Patents of Benefitfocus.com, Inc.

					
	
Jurisdiction
	
Patent No.
	
Issue Date
	
Inventor
	
Title

	
United States
	
8,412,646
	
04/02/2013
	
Theodore C. Tanner, Jr.; Matthew Aldridge; Gregory Jorstad
	
Systems and methods for automatic creation of agent-based systems

	
United States
	
8,572,760
	
10/29/2013
	
Theodore C. Tanner, Jr.; Amit Jain
	
Systems and methods for secure agent information

	
United States
	
8,935,705
	
01/13/2015
	
Jeremy D. Martin
	
Execution of highly concurrent processing tasks based on updated dependency data structure at run-time

	
United States
	
9,430,504
	
08/30/2016
	
Michael Rosier
	
System and method for dynamically intercepting and adjusting persistence behaviors via runtime configuration

	
United States
	
9,454,412
	
09/27/2016
	
Michael Rosier
	
Systems and methods for classifying and analyzing runtime events

	
Australia
	
2009298151
	
10/29/2015
	
Theodore C. Tanner, Jr.; Matthew Aldridge; Gregory Jorstad
	
Systems and methods for automatic creation of agent-based systems

	
China
	
ZL200980126895.0
	
09/03/2014
	
Theodore C. Tanner, Jr.; Matthew Aldridge; Gregory Jorstad
	
Systems and methods for automatic creation of agent-based systems

	
China
	
ZL201180039769.9
	
07/22/2015
	
Theodore C. Tanner, Jr.; Amit Jain
	
Systems and methods for secure agent information

Schedule 6

 

					
	
China
	
ZL201280021183.4
	
09/21/2016
	
Jeremy D. Martin
	
Registration and execution of highly concurrent processing tasks

	
Hong Kong
	
HK1179722
	
01/08/2016
	
Theodore C. Tanner, Jr.; Amit Jain
	
Systems and methods for secure agent information

	
Japan
	
5690935
	
02/06/2015
	
Theodore C. Tanner, Jr.; Amit Jain
	
Systems and methods for secure agent information

	
Japan
	
5989097
	
08/19/2016
	
Jeremy D. Martin
	
Registration and execution of highly concurrent processing tasks

	
Taiwan
	
I531973
	
05/01/2016
	
Jeremy D. Martin
	
Registration and execution of highly concurrent processing tasks

	
Australia
	
2012256399
	
03/16/2017
	
Jeremy D. Martin
	
Registration and execution of highly concurrent processing tasks

Pending Patent Applications of Benefitfocus.com, Inc.

					
	
Jurisdiction
	
Serial No.
	
Filing Date
	
Inventor
	
Title

	
United States
	
13/020,376
	
02/03/2011
	
John M. Lunsford
	
Systems and methods for polymorphic content generation in a multi-application, multi-tenant environment

	
United States
	
13/299,112
	
11/17/2011
	
William B. Gilbert
	
Systems and methods for dynamic service integration

	
United States
	
13/452,580
	
04/20/2012
	
Jason Shaun McDonald
	
System and method for enabling the styling and adornment of multiple, disparate web pages through remote method calls

	
United States
	
14/463,314
	
08/19/2014
	
Michael Rosier
	
Systems and methods for correlating derived metrics for system activity

	
United States
	
14/482,437
	
09/10/2014
	
Adam Wagner
	
Systems and methods for a metadata driven user interface framework

	
PCT
	
PCT/US2015/045477
	
08/17/2015
	
Michael Rosier
	
Systems and methods for correlating derived metrics for system activity

	
PCT
	
PCT/US2015/047882
	
09/01/2015
	
Adam Wagner
	
Systems and methods for a metadata driven user interface framework

	
PCT
	
PCT/US2015/048274
	
09/03/2015
	
Michael Rosier
	
System and method for dynamically intercepting and adjusting persistence behaviors via runtime configuration

	
PCT
	
PCT/US2015/048822
	
09/08/2015
	
Michael Rosier
	
Systems and methods for classifying and analyzing runtime events

Schedule 6

 

					
	
Australia
	
2011289673
	
08/08/2011
	
Theodore C. Tanner, Jr.; Amit Jain
	
Systems and methods for secure agent information

	
Australia
	
2012256399
	
02/24/2012
	
Jeremy D. Martin
	
Registration and execution of highly concurrent processing tasks

	
Australia
	
2012337242
	
10/22/2012
	
William B. Gilbert
	
Systems and methods for dynamic service integration

	
Australia
	
2013249909
	
02/14/2013
	
Jason Shaun McDonald
	
System and method for enabling the styling and adornment of multiple, disparate web pages through remote method calls

	
Australia
	
2015324406
	
09/08/2015
	
Michael Rosier
	
Systems and methods for classifying and analyzing runtime events

	
Canada
	
2,726,729
	
10/05/2009
	
Theodore C. Tanner, Jr.; Matthew Aldridge; Gregory Jorstad
	
Systems and methods for automatic creation of agent-based systems

	
Canada
	
2,806,461
	
08/08/2011
	
Theodore C. Tanner, Jr.; Amit Jain
	
Systems and methods for secure agent information

	
Canada
	
2,868,317
	
02/14/2013
	
Jason Shaun McDonald
	
System and method for enabling the styling and adornment of multiple, disparate web pages through remote method calls

	
Canada
	
2,855,191
	
10/22/2012
	
William B. Gilbert
	
Systems and methods for dynamic service integration

	
Canada
	
2,829,194
	
02/24/2012
	
Jeremy D. Martin
	
Registration and execution of highly concurrent processing tasks

	
Canada
	
N/A
	
02/01/2017
	
Michael Rosier
	
Systems and methods for classifying and analyzing runtime events

	
China
	
201280055871.2
	
10/22/2012
	
William B. Gilbert
	
Systems and methods for dynamic service integration

	
China
	
201380020635.1
	
02/14/2013
	
Jason Shaun McDonald
	
System and method for enabling the styling and adornment of multiple, disparate web pages through remote method calls

	
China
	
201580041662.6
	
09/08/2015
	
Michael Rosier
	
Systems and methods for classifying and analyzing runtime events

	
Europe
	
09818612.5
	
10/05/2009
	
Theodore C. Tanner, Jr.; Matthew Aldridge; Gregory Jorstad
	
Systems and methods for automatic creation of agent-based systems

	
Europe
	
11816869.0
	
08/08/2011
	
Theodore C. Tanner, Jr.; Amit Jain
	
Systems and methods for secure agent information

	
Europe
	
12785376.0
	
02/24/2012
	
Jeremy D. Martin
	
Registration and execution of highly concurrent processing tasks

Schedule 6

 

					
	
Europe
	
12849965.4
	
10/22/2012
	
William B. Gilbert
	
Systems and methods for dynamic service integration

	
Europe
	
13777746.0
	
02/14/2013
	
Jason Shaun McDonald
	
System and method for enabling the styling and adornment of multiple, disparate web pages through remote method calls

	
Europe
	
15847866.9
	
09/08/2015
	
Michael Rosier
	
Systems and methods for classifying and analyzing runtime events

	
Hong Kong
	
See Chinese Patent No. ZL200980126895.0 above
	
[   ]
	
Theodore C. Tanner, Jr.; Matthew Aldridge; Gregory Jorstad
	
Systems and methods for automatic creation of agent-based systems

	
Hong Kong
	
14103513.6
	
02/24/2012
	
Jeremy D. Martin
	
Registration and execution of highly concurrent processing tasks

	
Hong Kong
	
15101068.8
	
02/14/2013
	
Jason Shaun McDonald
	
System and method for enabling the styling and adornment of multiple, disparate web pages through remote method calls

	
India
	
984/DELNP/2013
	
08/08/2011
	
Theodore C. Tanner, Jr.; Amit Jain
	
Systems and methods for secure agent information

	
India
	
7410/CHENP/2013
	
02/24/2012
	
Jeremy D. Martin
	
Registration and execution of highly concurrent processing tasks

	
India
	
2117/CHENP/2014
	
10/22/2012
	
William B. Gilbert
	
Systems and methods for dynamic service integration

	
India
	
8112/DELNP/2014
	
02/14/2013
	
Jason Shaun McDonald
	
System and method for enabling the styling and adornment of multiple, disparate web pages through remote method calls

	
India
	
201647044611
	
09/08/2015
	
Michael Rosier
	
Michael Rosier

	
Japan
	
2014-542317
	
10/22/2012
	
William B. Gilbert
	
Systems and methods for dynamic service integration

	
Japan
	
2015-506985
	
02/14/2013
	
Jason Shaun McDonald
	
System and method for enabling the styling and adornment of multiple, disparate web pages through remote method calls

	
Japan
	
2016-574917
	
09/08/2015
	
Michael Rosier
	
Systems and methods for classifying and analyzing runtime events

	
Taiwan
	
101142364
	
11/14/2012
	
William B. Gilbert
	
Systems and methods for dynamic service integration

	
Taiwan
	
102113431
	
04/16/2013
	
Jason Shaun McDonald
	
System and method for enabling the styling and adornment of multiple, disparate web pages through remote method calls

Schedule 6

 

					
	
Taiwan
	
104122891
	
07/15/2015
	
Michael Rosier
	
Systems and methods for correlating derived metrics for system activity

	
Taiwan
	
104129322
	
09/04/2015
	
Adam Wagner
	
Systems and methods for a metadata driven user interface framework

	
Taiwan
	
104128936
	
09/02/2015
	
Michael Rosier
	
System and method for dynamically intercepting and adjusting persistence behaviors via runtime configuration

	
Taiwan
	
104128937
	
09/02/2015
	
Michael Rosier
	
Systems and methods for classifying and analyzing runtime events

	
South Korea
	
10/2013/7029824
	
02/24/2012
	
Jeremy D. Martin
	
Registration and execution of highly concurrent processing tasks

	
South Korea
	
10/2014/7012950
	
10/22/2012
	
William B. Gilbert
	
Systems and methods for dynamic service integration

Issued Patents and Pending Patent Applications Licensed to Benefitfocus.com, Inc.

NONE

Issued Patents of BenefitStore, Inc.

NONE

Pending Patent Applications of BenefitStore, Inc.

NONE

Issued Patents and Pending Patent Applications Licensed to BenefitStore, Inc.

NONE

Schedule 6

 

RIGHTS OF THE GRANTORS RELATING TO TRADEMARKS

Registered Trademarks of Benefitfocus, Inc.

NONE

Pending Trademark Applications of Benefitfocus, Inc.

NONE

Registered Trademarks and Pending Trademark Applications Licensed to Benefitfocus, Inc.

NONE

Registered Trademarks of Benefitfocus.com, Inc.

						
	
Jurisdiction
	
Registration No.
	
Registration Date
	
Filing Date
	
Registered Owner
	
Mark

	
United States
	
4649999
	
12/02/2014
	
07/22/2013
	
Benefitfocus.com, Inc.
	
HR INTOUCH

	
United States
	
4565511
	
07/08/2014
	
07/22/2013
	
Benefitfocus.com, Inc.
	
BENEFITFOCUS

	
United States
	
4527136
	
05/06/2014
	
07/19/2013
	
Benefitfocus.com, Inc.
	
ALL YOUR BENEFITS. IN YOUR POCKET.

	
United States
	
4261142
	
12/18/2012
	
04/30/2012
	
Benefitfocus.com, Inc.
	
HR INTOUCH MARKETPLACE

	
United States
	
4261146
	
12/18/2012
	
04/30/2012
	
Benefitfocus.com, Inc.
	
HR INTOUCH

	
United States
	
4111384
	
03/13/2012
	
06/30/2011
	
Benefitfocus.com, Inc.
	
SHOP ENROLL MANAGE EXCHANGE

	
United States
	
4102028
	
02/21/2012
	
06/30/2011
	
Benefitfocus.com, Inc.
	
ALL YOUR BENEFITS. ONE PLACE.

	
United States
	
3826875
	
08/03/2010
	
12/12/2008
	
Benefitfocus.com, Inc.
	
ICYOU

	
United States
	
3578457
	
02/24/2009
	
05/16/2007
	
Benefitfocus.com, Inc.
	

	
United States
	
2496059
	
10/09/2001
	
08/04/2000
	
Benefitfocus.com, Inc.
	
BENEFITFOCUS

	
United States
	
4758876
	
06/23/2015
	
07/21/2014
	
Benefitfocus.com, Inc.
	
ONE PLACE

	
Australia
	
International Reg. No. 1106495

Trademark No. 1476309
	
12/30/2011
	
12/30/2011
	
Benefitfocus.com, Inc.
	
BENEFITFOCUS

Schedule 6

 

						
	
Australia
	
International Reg. No. 1142954

Trademark No. 1534903
	
10/22/2012
	
10/22/2012
	
Benefitfocus.com, Inc.
	
HR INTOUCH MARKETPLACE

	
Australia
	
International Reg. 1138700

Trademark No. 1531065
	
10/22/2012
	
10/22/2012
	
Benefitfocus.com, Inc.
	
HR INTOUCH

	
Australia
	
International Reg. 1181498

Trademark No. 1591173
	
10/01/2013
	
10/01/2013
	
Benefitfocus.com, Inc.
	
HR INTOUCH

	
Australia
	
International Reg. 1191605

Trademark No. 1605589
	
12/31/2013
	
12/31/2013
	
Benefitfocus.com, Inc.
	
ALL YOUR BENEFITS. IN YOUR POCKET.

	
Australia
	
International Reg. No. 1182012

Trademark No. 1591274
	
10/01/2013
	
10/01/2013
	
Benefitfocus.com, Inc.
	
BENEFITFOCUS

	
Canada
	
TMA855701
	
07/19/2013
	
01/31/2012
	
Benefitfocus.com, Inc.
	
BENEFITFOCUS

	
Canada
	
TMA867347
	
12/16/2013
	
10/30/2012
	
Benefitfocus.com, Inc.
	
HR INTOUCH

	
Canada
	
TMA867346
	
12/16/2013
	
10/29/2012
	
Benefitfocus.com, Inc.
	
HR INTOUCH MARKETPLACE

	
Canada
	
TMA911121
	
08/13/2015
	
12/19/2013
	
Benefitfocus.com, Inc.
	
BENEFITFOCUS

	
Canada
	
TMA911122
	
08/13/2015
	
12/19/2013
	
Benefitfocus.com, Inc.
	
HR INTOUCH

	
Canada
	
TMA962882
	
2/15/2017
	
1/17/2014
	
Benefitfocus.com, Inc.
	
ALL YOUR BENEFITS. IN YOUR POCKET.

	
China
	
14158487
	
04/21/2015
	
03/12/2014
	
Benefitfocus.com, Inc.
	
BENEFITFOCUS

	
China
	
14158486
	
04/21/2015
	
03/12/2014
	
Benefitfocus.com, Inc.
	
BENEFITFOCUS

	
India
	
International Reg. No. 1191605
	
12/31/2013
	
12/31/2013
	
Benefitfocus.com, Inc.
	
ALL YOUR BENEFITS. IN YOUR POCKET.

	
India
	
International Reg. No. 1182012
	
10/01/2013
	
10/01/2013
	
Benefitfocus.com, Inc.
	
BENEFITFOCUS

	
India
	
International Reg. No. 1181498
	
10/01/2013
	
10/01/2013
	
Benefitfocus.com, Inc.
	
HR INTOUCH

Schedule 6

 

						
	
Ireland
	
International Reg. No. 1106495
	
12/30/2011
	
12/30/2011
	
Benefitfocus.com, Inc.
	
BENEFITFOCUS

	
Ireland
	
International Reg. No. 1138700
	
10/22/2012
	
10/22/2012
	
Benefitfocus.com, Inc.
	
HR INTOUCH

	
Ireland
	
International Reg. No. 1181498
	
10/01/2013
	
10/01/2013
	
Benefitfocus.com, Inc.
	
HR INTOUCH

	
Ireland
	
International Reg. No. 1142954
	
10/22/2012
	
10/22/2012
	
Benefitfocus.com, Inc.
	
HR INTOUCH MARKETPLACE

	
Ireland
	
International Reg. No. 1182012
	
10/01/2013
	
10/1/2013
	
Benefitfocus.com, Inc.
	
BENEFITFOCUS

	
Israel
	
International Reg. No. 1106495
	
12/30/2011
	
12/30/2011
	
Benefitfocus.com, Inc.
	
BENEFITFOCUS

	
Israel
	
International Reg. No. 1182012
	
10/01/2013
	
10/01/2013
	
Benefitfocus.com, Inc.
	
BENEFITFOCUS

	
Israel
	
International Reg. No. 1191605
	
12/31/2013
	
12/31/2013
	
Benefitfocus.com, Inc.
	
ALL YOUR BENEFITS. IN YOUR POCKET.

	
New Zealand
	
International Reg. No. 1191605
	
12/31/2013
	
12/31/2013
	
Benefitfocus.com, Inc.
	
ALL YOUR BENEFITS. IN YOUR POCKET.

	
New Zealand
	
International Reg. No. 1182012
	
10/01/2013
	
10/01/2013
	
Benefitfocus.com, Inc.
	
BENEFITFOCUS

	
New Zealand
	
International Reg. No. 1181498
	
10/01/2013
	
10/01/2013
	
Benefitfocus.com, Inc.
	
HR INTOUCH

	
New Zealand
	
967599
	
04/24/2013
	
10/23/2012
	
Benefitfocus.com, Inc.
	
HR INTOUCH

	
New Zealand
	
967600
	
04/24/2013
	
10/23/2012
	
Benefitfocus.com, Inc.
	
HR INTOUCH MARKETPLACE

	
South Africa
	
2012/28642
	
03/13/2015
	
10/23/2012
	
Benefitfocus.com, Inc.
	
HR INTOUCH

	
South Africa
	
2013/27350
	
09/28/2015
	
10/02/2013
	
Benefitfocus.com, Inc.
	
BENEFITFOCUS

	
South Africa
	
2013/27351
	
09/28/2015
	
10/02/2013
	
Benefitfocus.com, Inc.
	
HR INTOUCH

	
South Africa
	
2014/00310
	
07/30/2015
	
01/07/2014
	
Benefitfocus.com, Inc.
	
ALL YOUR BENEFITS. IN YOUR POCKET.

	
United Kingdom
	
International Reg. No. 1142954
	
10/22/2012
	
10/22/2012
	
Benefitfocus.com, Inc.
	
HR INTOUCH MARKETPLACE

	
United Kingdom
	
International Reg. No. 1138700
	
10/22/2012
	
10/22/2012
	
Benefitfocus.com, Inc.
	
HR INTOUCH

	
United Kingdom
	
International Reg. No. 1106495
	
12/30/2011
	
12/30/2011
	
Benefitfocus.com, Inc.
	
BENEFITFOCUS

Schedule 6

 

						
	
United Kingdom
	
International Reg. No. 1181498
	
10/01/2013
	
10/01/2013
	
Benefitfocus.com, Inc.
	
HR INTOUCH

	
United Kingdom
	
International Reg. No. 1191605
	
12/31/2013
	
12/31/2013
	
Benefitfocus.com, Inc.
	
ALL YOUR BENEFITS. IN YOUR POCKET.

	
United Kingdom
	
International Reg. No. 1182012
	
10/01/2013
	
10/01/2013
	
Benefitfocus.com, Inc.
	
BENEFITFOCUS

	
World Intellectual Property Organization
	
International Reg. No. 1142954
	
10/22/2012
	
10/22/2012
	
Benefitfocus.com, Inc.
	
HR INTOUCH MARKETPLACE

	
World Intellectual Property Organization
	
International Reg. No. 1138700
	
10/22/2012
	
10/22/2012
	
Benefitfocus.com, Inc.
	
HR INTOUCH

	
World Intellectual Property Organization
	
International Reg. No. 1106495
	
12/30/2011
	
12/30/2011
	
Benefitfocus.com, Inc.
	
BENEFITFOCUS

	
World Intellectual Property Organization
	
International Reg. No. 1191605
	
12/31/2013
	
12/31/2013
	
Benefitfocus.com, Inc.
	
ALL YOUR BENEFITS. IN YOUR POCKET.

	
World Intellectual Property Organization
	
International Reg. No. 1182012
	
10/01/2013
	
10/01/2013
	
Benefitfocus.com, Inc.
	
BENEFITFOCUS

	
World Intellectual Property Organization
	
International Reg. No. 1181498
	
10/01/2013
	
10/01/2013
	
Benefitfocus.com, Inc.
	
HR INTOUCH

Pending Trademark Applications of Benefitfocus.com, Inc.

					
	
Jurisdiction
	
Application No.
	
Filing Date
	
Applicant
	
Mark

	
United States
	
86/923,373
	
02/29/2016
	
Benefitfocus.com, Inc.
	
BENEFITFOCUS

	
Canada
	
1660145
	
01/17/2014
	
Benefitfocus.com, Inc.
	
ALL YOUR BENEFITS. IN YOUR POCKET.

	
Canada
	
1797920
	
08/29/2016
	
Benefitfocus.com, Inc.
	
BENEFITFOCUS

	
India
	
2419567
	
10/30/2012
	
Benefitfocus.com, Inc.
	
HR INTOUCH

	
India
	
2419568
	
10/30/2012
	
Benefitfocus.com, Inc.
	
HR INTOUCH MARKETPLACE

	
South Africa
	
2012/28643
	
10/23/2012
	
Benefitfocus.com, Inc.
	
HR INTOUCH MARKETPLACE

	
South Africa
	
2016/24461
	
08/29/2016
	
Benefitfocus.com, Inc.
	
BENEFITFOCUS

	
South Africa
	
2016/24462
	
08/29/2016
	
Benefitfocus.com, Inc.
	
BENEFITFOCUS

	
World Intellectual Property Organization
	
A0061183
	
08/29/2016
	
Benefitfocus.com, Inc.
	
BENEFITFOCUS

Registered Trademarks and Pending Trademark Applications Licensed to Benefitfocus.com, Inc.

Schedule 6

 

NONE

Registered Trademarks of BenefitStore, Inc.

NONE

Pending Trademark Applications of BenefitStore, Inc.

NONE

Registered Trademarks and Pending Trademark Applications Licensed to BenefitStore, Inc.

NONE

Schedule 6

 

RIGHTS OF THE GRANTORS RELATING TO COPYRIGHTS

Registered Copyrights of Benefitfocus, Inc.

NONE

Pending Copyright Applications of Benefitfocus, Inc.

NONE

Registered Copyrights and Pending Copyright Applications Licensed to Benefitfocus, Inc.

NONE

Registered Copyrights of Benefitfocus.com, Inc.

				
	
Jurisdiction
	
Registration No.
	
Registration Date
	
Work of Authorship

	
United States
	
TX0006032200
	
11/14/2001
	
Benefit focus online enrollment and data exchange service application.

	
United States
	
TX0006032199
	
11/14/2001
	
Benefit focus online enrollment and data exchange services application version 1.14.

	
United States
	
V9921D265
	
02/25/2015
	
Benefit focus online enrollment and data exchange service application & 1 other title.

Pending Copyright Applications of Benefitfocus.com, Inc.

NONE

Registered Copyrights and Pending Copyright Applications Licensed to Benefitfocus.com, Inc.

NONE

Registered Copyrights of BenefitStore, Inc.

NONE

Pending Copyright Applications of BenefitStore, Inc.

Schedule 6

 

NONE

Registered Copyrights and Pending Copyright Applications Licensed to BenefitStore, Inc.

NONE

OTHER LICENSE RIGHTS RELATING TO INTELLECTUAL PROPERTY

	
 
	
1.
	
Benefitfocus.com, Inc. grants licenses in the ordinary course for the use of its software to its customers pursuant to Terms of Use, Master Services Agreements and related Software License and Service Agreements.

	
 
	
2.
	
Benefitfocus.com, Inc. licenses certain Intellectual Property rights from Oracle America, Inc. pursuant to that Ordering Document, effective November 22, 2013, by and between Arrow Enterprise Computing Solutions Inc., CDW Logistics, Inc., Oracle America, Inc. and Benefitfocus.com, Inc. (incorporating by reference the Oracle Master Agreement, US-OMA-68046).

	
 
	
3.
	
Benefitfocus.com, Inc. licenses certain Intellectual Property rights from John Hopkins University pursuant to that ACG Consultant Production License and Professional Services Agreement, dated May 2, 2011.

Schedule 6Exhibit

Exhibit 10.1 -  Arjun Sharma Severance Agreement

SEVERANCE    AGREEMENT     

This  Severance  Agreement  (the "Agreement")   is made and entered  into as of
April 21, 2017  by and between  CIRCOR  International,  Inc. ("CIRCOR"   or "Company")   and
Arjun  Shanna  (the "Executive").

WHEREAS,    CIRCOR  presently  employs  the Executive  in which  capacity  the Executive serves as Senior Vice President,  Business  Development   and as an officer  and/or director  of other direct and indirect  subsidiaries  of the Company;  and

WHEREAS,    the Company  desires  to provide  severance  compensation   to the Executive upon the occurrence  of certain  events;  and

WHEREAS,    in exchange  for the severance  compensation   provided  for under this Agreement,  Executive  agrees to certain  non-competition   and non-solicitation   covenants  as set forth herein,

NOW,  THEREFORE,  in consideration   of the foregoing  and the mutual promises  of the parties  herein  contained,  and for other  good  and valuable  consideration,   the receipt  and sufficiency  of which  are hereby  acknowledged,   the Company  and the Executive  hereby  covenant and agree with each other as follows:

1.             Definitions.    For purposes of the Agreement,  the following  terms  shall have the following meanings:

(a)        "Accrued  Benefits"  shall mean  (i) all accrued but unpaid  Base Salary through  the Date of Termination   of Executive's   employment   (including  any accrued  vacation)  at the rate in effect at the time Notice  of Termination   is given,  (ii) any unpaid  or unreimbursed   expenses incurred  in accordance  with Company  policies,  (iii) accrued but unused  vacation  days through
the Date of Termination   of Executive's   employment  determined  as per the Company's   vacation policy, and (iv) any amounts  that are accrued  and vested under  any Company  plan or policy  as of the Date of Termination.

(b)        "Base  Salary"  shall mean  the Executive's   annual base  salary.

(c)        "Disability"   shall mean,  as a result of Executive's   incapacity  due to physical  or mental  illness,  Executive  shall have been  absent  from his duties with the Company  on a full-time basis for 180 calendar  days in the aggregate  in any twelve  month  period.

(d)        "For Cause"  shall mean:  (i) conduct  by Executive  constituting  a material  act of willful misconduct  in connection  with the performance   of his duties,  including,  without limitation,  misappropriation   of funds  or property  of the Company  or any of its affiliates  other than the occasional,  customary  and de minimis  use of Company  property  for personal  purposes; (ii) criminal  or civil conviction  of Executive,   a plea of nolo   contendere  by Executive  or conduct by Executive  that would  reasonably  be expected  to result in material  injury to the reputation  of the Company  if he  were retained  in his position  with the Company,  including,  without  limitation, conviction  of a felony  involving  moral  turpitude;  (iii) continued,  willful  and deliberate  non• performance  by Executive  of his duties  hereunder  (other than by reason  of Executive's   physical or mental  illness,  incapacity  or disability)  which  has continued  for more than thirty  (30) days following  written  notice  of such non-performance   from the Board of Directors  of the Company (the "Board");  or (iv) a violation  by Executive  of the Company's   employment  policies  which has continued  following  written  notice  of such violation  from the Board.

1

Exhibit 10.1 -  Arjun Sharma Severance Agreement

( e)        "Good  Reason"  shall mean that Executive  has complied  with the "Good  Reason Process"  (hereinafter  defined)  following  the occurrence  of any of the following  events:  (a) a material  diminution  or other material  adverse  change,  not consented  to by Executive,   in the nature or scope of Executive's   responsibilities,   authorities,   powers,  functions  or duties;  (b) an involuntary  material  reduction  in Executive's   Base  Salary except for across-the-board   reductions similarly  affecting  all or substantially  all management   employees;  (c) a material  breach  of this Agreement  by the Company;  or (d) a material  change  in the geographic  location  at which the Executive  provides  services  to the Company.

"Good  Reason  Process"  shall mean that (i) Executive  reasonably  determines  in good faith that a "Good  Reason"  event has occurred;  (ii) Executive  notifies  the Company  in writing  of the occurrence  of the Good Reason  event within  60 days of such occurrence;  (iii) Executive reasonably  cooperates  in good faith with the Company's   efforts following  such notice  (the "Cure Period"),   to promptly  remedy  the condition;  (iv) notwithstanding   such efforts,  the Good Reason event continues  to exist; and (v) the Executive  terminates  his employment  within  60 days after the  end of the Cure Period.   If the Company cures the Good Reason event during the Cure Period, Good Reason shall be deemed not to have occurred.

(f)        "Severance Benefits"  shall mean the payments described in Section 2(c) of this
Agreement.

2.          Post Termination Payments.

(a)       Termination by the Company For Cause, Death or Disability.  Upon termination of the Executive's employment by the Company for Cause, death, or Disability, the Company shall, through the Date of Termination (hereinafter defined), pay Executive the Accrued Benefits.  Thereafter, the Company shall have no further obligations to Executive except as otherwise expressly provided under this Agreement or as required by law.

(b)       Termination by the Executive other than for Good Reason.  If Executive's employment is terminated by the Executive other than for Good Reason, then the Company shall, through the Date of Termination, pay Executive the Accrued Benefits. Thereafter, the Company shall have no further obligations to Executive except as otherwise expressly provided under this Agreement.

(c)       Termination by the Company Other Than for Cause, Death or Disability or by the Executive for Good Reason.  If Executive's employment is terminated (i) by the Company other than For Cause or Executive's  death or Disability or (ii) by the Executive for Good Reason, then the Company shall, through the Date-of Termination, pay Executive the Accrued Benefits. Subject to Section 2(d) and Section 18 below, the Executive shall also receive the following Severance Benefits:

 (i)         a lump sum payment  equal to the Executive's   current Base Salary in effect during the fiscal year in which  such termination  occurs  payable  in a single lump sum payment  as soon as administratively   practicable  (but not later than sixty (60) days) following  such Date of Termination;

(ii)        a lump sum payment  equal to the product  of (A) the amount  of the annual short-term  bonus that would  have been payable  to the Executive  if the Executive  was still employed  as of December  31st of the then current  fiscal  year in respect  of the fiscal year in which  employment  termination   occurs based on actual  performance  as compared  to performance   goals, and (B) the ratio of (x) the number  of days elapsed during the fiscal year during which  such termination   of employment  occurs  on or prior to the date of such termination  to (y) 365, payable  as of the same time as annual  short-term  bonuses  are paid to other senior executives;  and

2

Exhibit 10.1 -  Arjun Sharma Severance Agreement

(iii)       subject to the Executive's   election  of COBRA  rights, monthly  payment  of an amount  equal to the employer's   cost coverage  in accordance  with its contribution percentage  toward  medical  and dental coverage  for active  employees  immediately  prior
to the Date of Termination   for twelve  (12) months  after  such termination;  provided,
however,  that the installment  payments  under this Section  2( c)(iii) shall cease on the first day of the month  immediately   following  the month  that the Executive  no longer qualifies for continued  COBRA  coverage  for any reason,  including  but not limited  to the Executive's   failure to pay the Executive's   portion  of the COBRA  cost or the Executive
becoming  eligible  for medical/dental   insurance  under  another  group health  insurance  plan
(as defined  by COBRA).   Notwithstanding   the foregoing,  if the Company  determines,  in its sole discretion,  that it cannot  pay the foregoing  installment  payments  without  a substantial  risk of violating  applicable  law (including,  without  limitation,   Section 2716 of the Public  Health  Service  Act), the Company  shall be entitled  to amend this Section
2(c)(iii)  in order to preserve  the value of such installment   payments  to the Executive without  additional  cost to either party.

(d)        Required  Release.   The payment  of the Severance  Benefits  shall be conditioned upon the Executive's   execution,  delivery  to the Company,  and non-revocation   of the release  of claims,  in a form reasonably  acceptable  to the Company  (and the expiration  of any revocation period  contained  in such release  of claims)  within  sixty (60) days  following  the date of Executive's   termination   of employment   hereunder.   If the Executive fails to execute the release
of claims in such a timely manner so as to permit any revocation period to expire prior to the end
of such sixty (60) day period, or timely revokes the Executive's execution of such release following its execution, the Executive shall not be entitled to any of the Severance Benefits. Further, to the extent that any of the Severance Benefits constitutes "nonqualified deferred compensation" for purposes of Section 409A of the Code, any payment of any amount or provision of any benefit otherwise scheduled to occur prior to the sixtieth (60th) day following termination of the Executive's employment hereunder, but for the condition on executing the release of claims as set forth herein, shall not be made until the first (1st) regularly scheduled payroll date following such sixtieth (60th) day, after which any remaining Severance Benefits shall thereafter be provided to Executive according to the applicable schedule set forth herein (and the first payment shall include any portion of the Severance Benefits, and any such other payments or benefits, that would have been paid during such sixty (60) day period).

 (e)        Termination  Covered Under  Executive  Change  of Control  Agreement.   If Executive's employment is terminated under circumstances that would afford Executive certain rights under the Executive Change of Control Agreement currently in effect between the Company and Executive (or any successor agreement), the provisions of the Executive Change of Control Agreement shall govern and this Agreement shall have no force and effect, it being
intended that the Executive Change of Control Agreement shall govern the rights and obligations of the parties in the event of a termination covered under the Executive Change of Control
Agreement and this Agreement shall govern the rights and obligations of the parties in the event of any other termination.

3.        Notice of Termination. Any termination of Executive's employment by the Company or any such termination by Executive shall be communicated by written Notice of Termination to the other party hereto.  For purposes of this Agreement, a "Notice of Termination" shall mean a notice that indicates the specific termination provision in this Agreement relied upon.

4.        Date of Termination.  The "Date of Termination" shall be the date on which Notice of Termination is provided by either party or such later date as may be specified in such Notice of Termination.

5.        Withholding. All payments made to the Executive under this Agreement shall be net of any tax or other amounts required to be withheld by the Company under applicable law.

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Exhibit 10.1 -  Arjun Sharma Severance Agreement

6.        No Mitigation.  The Company agrees that, if the Executive's employment by the Company is terminated during the term of this Agreement, the Executive is not required to seek other employment or to attempt in any way to reduce any amounts payable to the Executive by the Company pursuant to any provision of this Agreement, including any payment under Section
2.  Further, except as otherwise provided herein, the amount of any payment provided for in this
Agreement shall not be reduced by any compensation earned by the Executive as the result of employment by another employer, by retirement benefits, by offset against any amount claimed to be owed by the Executive to the Company or otherwise.

7.        Non-Competition and Non-Solicitation Covenants; Confidentiality.  In consideration of the benefits afforded the Executive under the terms provided in this Agreement, Executive agrees that

(a)       during the term of Executive's employment with the Company and for a period of twelve (12) months thereafter, regardless of the reason for termination of employment, Executive will not, directly or indirectly, as an owner, director, principal, agent, officer, employee, partner, consultant, servant, or otherwise, carry on, operate, manage, control, or become involved in any manner with any business, operation, corporation, partnership, association, agency, or other person or entity which is engaged in a business that is competitive with any of the Company's or its affiliates' products which are produced by the Company or its affiliates as of the date of Executive's termination of employment with the Company, in any area or territory in which the Company or any affiliate conducts operations; provided, however, that the foregoing shall not prohibit Executive from owning up to one percent ( 1 %) of the outstanding stock of a publicly held company engaged in the Fluid-Control Industry; and

 (b)        during the term  of Executive's   employment   with the Company  and for a period  of twelve  (12) months  thereafter,   regardless  of the reason  for termination  of employment,   Executive will not directly  or indirectly  solicit  or induce  any present  or future employee  of the Company  or any affiliate  to accept  employment   with Executive  or with any business,  operation,   corporation, partnership,   association,  agency,  or other person  or entity  with which  Executive  may be
associated,  and Executive  will not employ or cause any business,  operation,  corporation,
partnership,   association,   agency,   or other person  or entity  with which Executive  may be associated  to employ  any present  or future employee  of the Company  or its affiliates  without providing  the Company  with ten ( 10) days'   prior written  notice  of such proposed  employment.

(c)        in the course of Executive's employment with the Company (and, if applicable, its predecessors), Executive has been allowed to become, and will continue to be allowed to
become, acquainted with the Company's business affairs, information, trade secrets, and other matters which are of a proprietary or confidential nature, including but not limited to the
Company's  and its affiliates' and predecessors' operations, business opportunities, price and cost
information, finance, customer information, business plans, various sales techniques, manuals, letters, notebooks, procedures, reports, products, processes, services, and other confidential information and knowledge (collectively the "Confidential Information") concerning the Company's and its affiliates' and predecessors' business.  The Company agrees to provide on an ongoing basis such Confidential Information as the Company deems necessary or desirable to aid Executive in the performance of his duties.  Executive understands and acknowledges that such Confidential Information is confidential, and he agrees not to disclose such Confidential Information to anyone outside the Company except to the extent that (i) Executive deems such disclosure or use reasonably necessary or appropriate in connection with performing his duties
on behalf of the Company, (ii) Executive is required by order of a court of competent jurisdiction (by subpoena or similar process) to disclose or discuss any Confidential Information, provided that in such case, Executive shall promptly inform the Company, as appropriate, of such event, shall cooperate with the Company, as appropriate, in attempting to obtain a protective order or to otherwise restrict such disclosure, and shall only disclose Confidential Information to the minimum extent necessary to comply with any such court order; (iii) such Confidential 

4

Exhibit 10.1 -  Arjun Sharma Severance Agreement

Information becomes generally known to and available for use in the Company's industry (the "Fluid-Control Industry"), other than as a result of any action or inaction by Executive; or
(iv) such information has been rightfully received by a member of the Fluid-Control Industry or has been published in a form generally available to the Fluid-Control Industry prior to the date Executive proposes to disclose or use such information.  Executive further agrees that he will not during employment and/or at any time thereafter use such Confidential Information in
competing, directly or indirectly, with the Company. At such time as Executive shall cease to be employed by the Company, he will immediately turn over to the Company, all Confidential Information, including papers, documents, writings, electronically stored information, other property, and all copies of them provided to or created by him during the course of his employment with the Company.  The provisions of this Paragraph 7(c) shall survive termination of this Agreement for any reason.

Should Executive violate any of the provisions of paragraphs 7(a) or (b), then in addition to all other rights and remedies available to the Company at law or in equity, the duration of this covenant shall automatically be extended for the period of time from which Executive began such violation  until he permanently  ceases  such violation,  the Severance  Benefits  shall cease and the Company  shall be entitled  to recovery  previously  paid  Severance  Benefits.

8.           Notice.    For purposes  of this Agreement,   notices  and all other communications   provided for in the Agreement   shall be in writing  and shall be deemed  to have been duly given when delivered  or mailed  by United  States certified  mail,  return  receipt  requested,  postage  prepaid, addressed  as follows:

If to the Executive:

At Executive's home address as shown in the Company's personnel records;

If to the Company:

CIRCOR International, Inc.
30 Corporate Drive, Suite 200
Burlington, MA O 1803
Attn:   President & CEO
Attn:   Vice President-Human Resources

or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.

9.         Successor to Company.  The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company expressly to assume and agree to perform this Agreement to the same extent that the Company would be required to perform it if no succession had taken place. Failure of the Company to obtain an assumption of this Agreement at or prior to the effectiveness of any succession shall be a breach of this Agreement and shall constitute Good Reason if the Executive elects to terminate employment.

10.      Amendment; Other Agreements.  No provisions of this Agreement may be amended, modified, or discharged unless such amendment, modification, or discharge is agreed to in writing and signed by Executive and such officer of the Company as may be specifically designated by the Board. No agreements or representations, oral or otherwise, express or
implied, unless specifically referred to herein, with respect to the subject matter hereof have been made by either party which are not set forth expressly in this Agreement.

11.      Governing Law.  The validity, interpretation, construction, and performance of this Agreement shall be governed by the laws of the Commonwealth of Massachusetts (without regard to principles of conflicts of laws).

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Exhibit 10.1 -  Arjun Sharma Severance Agreement

12.      Counterparts.  This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument.

13.      Arbitration; Other Disputes.  In the event of any dispute or controversy arising under or in connection with this Agreement, the parties shall first promptly try in good faith to settle such dispute  or controversy  by mediation  under the applicable  rules of the American  Arbitration Association  before  resorting  to arbitration.    In the event  such dispute or controversy  remains unresolved  in whole  or in part for a period  of 30 days after it arises, the parties  will settle any remaining  dispute  or controversy  exclusively  by arbitration  in Boston,  Massachusetts,   in accordance  with the rules of the American  Arbitration   Association  then in effect.   Judgment  may be entered  on the arbitrator's   award in any court having jurisdiction.    Notwithstanding   the above, the Company  shall be entitled  to seek a restraining  order or injunction  in any court  of competent jurisdiction   to prevent  any continuation  of any violation  of Section 7 of this Agreement. Furthermore,   should  a dispute  occur concerning  Executive's   mental or physical  capacity  as described  in Subparagraph   l(b)  or 2(a), a doctor  selected  by Executive  and a doctor  selected  by
the Company  shall be entitled  to examine  Executive.    If the opinion of the Company's doctor and
Executive's doctor conflict, the Company's  doctor and Executive's doctor shall together agree upon a third doctor, whose opinion shall be binding.

14.      Assignment. Neither the Company nor the Executive may make any assignment of this Agreement or any interest herein, by operation of law  or otherwise, without the prior written consent of the other party, and without such consent any attempted transfer shall be null and void and of no effect. This Agreement shall inure to the benefit of and be binding upon the Company and the Executive, their respective successors, executors, administrators, heirs and permitted assigns.  In the event of the Executive's death prior to the completion by the Company of all payments due him under this Agreement, the Company shall continue such payments to the Executive's beneficiary designated in writing to the Company prior to his death (or to his estate, if the Executive fails to make such designation).

15.      Litigation and Regulatory Cooperation. During and after Executive's employment, Executive shall reasonably cooperate with the Company in the defense or prosecution of any claims or actions now in existence or which may be brought in the future against or on behalf of the Company which relate to events or occurrences that transpired while Executive was employed by the Company; provided, however, that such cooperation shall not materially and adversely affect Executive or expose Executive to an increased probability of civil or criminal litigation. Executive's cooperation in connection with such claims or actions shall include, but not be limited to, being available to meet with counsel to prepare for discovery or trial and to act as a witness on behalf of the Company at mutually convenient times.  During and after Executive's employment, Executive also shall cooperate fully with the Company in connection with any investigation or review of any federal, state or local regulatory authority as any such investigation or review relates to events or occurrences that transpired while Executive was employed by the Company.  The Company shall also provide Executive with compensation on an hourly basis (to be derived from the sum of his Base Salary) for requested litigation and
regulatory cooperation that occurs after his termination of employment, and reimburse Executive for all costs and expenses incurred in connection with his performance under this Paragraph 15, including, but not limited to, reasonable attorneys' fees and costs.

16.      Enforceability.  If any portion or provision of this Agreement shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as
to which it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision  of this Agreement   shall be valid and enforceable  to the fullest extent permitted  by law.

17.         Waiver.   No waiver  of any provision  hereof  shall be effective  unless made in writing  and signed by the waiving  party.   The failure of any party to require  the performance  of any term or obligation  of this Agreement,   or the waiver by any party  of any breach  of this Agreement,  shall not prevent  any subsequent  enforcement  of such term or obligation  or be deemed  a waiver  of any subsequent  breach.

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Exhibit 10.1 -  Arjun Sharma Severance Agreement

18.       Section 409A.

(a)        It is intended  that any compensation   or benefits  under this Agreement  satisfy,  to the greatest  extent  possible,  the exemptions  from the application  of Section 409 A of the Internal Revenue  Code of 1986, as amended  ("Section  409A")  provided  under  Treasury  Regulations Sections  l.409A-l(b)(4),     and  l.409A-l(b)(9),    and this Agreement  will be construed  to the greatest  extent possible  as consistent  with those provisions,   and to the extent not so exempt,  this Agreement  (and any definitions  hereunder)  will be construed  in a manner  that complies  with Section 409A.   For purposes  of Section  409A (including,   without  limitation,  for purposes  of Treasury  Regulations   Section  l.409A-2(b)(2)(iii)),    the Executive's   right to receive  any installment  payments  under this Agreement  (whether  Severance  Benefits  or otherwise)  shall be treated as a right to receive  a series of separate  payments  and, accordingly,  each installment payment  hereunder  shall at all times be considered  a separate  and distinct  payment.   Severance Benefits  shall not commence  until  the Executive  has a "separation   from service"  (as defined under Treasury  Regulation   Section  l.409A-l(h),    without  regard  to any alternative  definition thereunder,   a "separation   from service").

(b)        Notwithstanding   any provision  to the contrary  in this Agreement,   if the Executive is deemed by the Company  at the time of termination  to be a "specified  employee"  for purposes of Section 409A(a)(2)(B)(i),   and if any of the payments  set forth herein  are deemed  to be "deferred  compensation,"   then to the extent delayed  commencement   of any portion  of such payments  is required  in order to avoid a prohibited  distribution   under  Section 409A(a)(2)(B)(i) and the related  adverse  taxation  under  Section 409 A, such payments  shall not be provided  prior to the earliest  of (i) the expiration  of the six-month  period  measured  from the Executive's employment  termination,   (ii) the date of Executive's   death or (iii) such earlier date as permitted under Section  409A without  the imposition  of adverse  taxation.   Upon the first business  day
following  the expiration  of such period,  all payments  deferred  pursuant  to this paragraph  shall be
paid in a lump sum, and any remaining  payments  due shall be paid as otherwise  provided  herein. No interest  shall be due on any amounts  so deferred.

(c)        To the extent  that any right to reimbursement   of expenses  or payment  of any benefit  in-kind  under this Agreement  constitutes  nonqualified   deferred  compensation   (within  the meaning  of Section  409A  of the Code),  (i) any such expense  reimbursement   shall be made by the Company  no later than the last day of the taxable  year following  the taxable  year in which  such expense  was incurred  by Executive,  (ii) the right to reimbursement   or in-kind  benefits  shall not
be subject to liquidation  or exchange  for another benefit,  and (iii) the amount  of expenses eligible for reimbursement   or in-kind  benefits  provided  during  any taxable  year shall not affect the expenses  eligible  for reimbursement   or in-kind benefits  to be provided  in any other taxableyear; provided,  that the foregoing  clause  shall not be violated  with regard to expenses  reimbursed under any arrangement   covered  by Section  105(b)  of the Code solely because  such expenses  are subject to a limit related to the period the arrangement   is in effect.

(d)        While the payments  and benefits  provided  hereunder  are intended  to be structured in a manner  to avoid the implication  of any taxes  or related liability  under Section  409 A of the Code.  The parties  agree that this Agreement  may be amended,  as reasonably  requested  by either party, and as may be necessary  to fully comply  with  Section 409A of the Code and all related rules and regulations  in order to preserve  the payments  and benefits  provided  hereunder  without additional  cost to either party.

(e)        The Company  makes no representation   or warranty  and shall have no liability  to the Executive  or any other person  if any provisions   of this Agreement  are determined  to constitute  deferred  compensation   subject to Section  409A of the Code but do not satisfy an exemption  from, or the conditions  of, such Section.

7

Exhibit 10.1 -  Arjun Sharma Severance Agreement

IN WITNESS  WHEREOF,  the parties  have  executed  this Agreement  effective  on the date and year first above written.

CIRCOR  INTERNATIONAL,    INC.

By: /s/ Scott A. Buckhout
Scott A. Buckhout
President & CEO

By: /s/ Arjun Sharma
Arjun Sharma
Senior Vice President, Business Development

8

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