Document:

Exhibit

Exhibit 10.1 
SUMMARY SHEET OF DIRECTOR COMPENSATION 

The following summary sets forth current annual rates of cash and equity compensation for non-management directors, effective immediately following the May 17, 2016 Board meeting.

	
							
	 

	 
	 
	 
	 
	 
	 
	 

	Compensation Item
	 
	Prior Year  
Compensation
	 
	Current Year  
Compensation

	Cash Compensation
	 
	 
	 
	 
	 
	 

	Board Retainer
	 
	$
	60,000
	 
	$
	80,000

	Audit Committee
	 
	 
	 
	 
	 
	 

	Chair Retainer
	 
	$
	18,000
	 
	$
	25,000

	Member Retainer
	 
	$
	8,000
	 
	$
	10,000

	Compensation Committee
	 
	 
	 
	 
	 
	 

	Chair Retainer
	 
	$
	15,000
	 
	$
	20,000

	Member Retainer
	 
	$
	6,000
	 
	$
	8,000

	Nominating & Corporate Governance Committee
	 
	 
	 
	 
	 
	 

	Chair Retainer
	 
	$
	10,000
	 
	$
	15,000

	Member Retainer
	 
	$
	5,000
	 
	$
	7,000

	Equity Compensation - Restricted Stock or Restricted Stock Units
	 
	 
	 
	 
	 
	 

	Board Chair Retainer (including director retainer)
	 
	$
	260,000
	 
	$
	285,000

	Director Retainer
	 
	$
	135,000
	 
	$
	135,000

	
		
	 

	 
	 

	 
	 

Directors may defer their cash compensation by participating in the Company’s Deferred Compensation Program, effective as of December 1, 2011 (filed February 24, 2012 as Exhibit 10.13 to the Company’s Form 10-K). 

Directors may receive the equity component of their compensation in restricted stock or restricted stock units (RSUs). In either case, the awards generally have a 12-month vesting period, ending on the day preceding the next annual meeting of shareholders. Vesting accelerates in the event of death, disability or a change in control of the Company. The number of shares is calculated by dividing the dollar value by the closing price of the Company’s stock on the grant date. RSUs are settled in shares of common stock and earn dividend equivalents at a 20% discount to the market price of Company stock on the dividend payment date. Directors may elect to defer settlement of the RSU award for 2 to 10 years after the grant date. 

The Company pays for travel expenses incurred by the directors to attend Board meetings. 

Our employee directors do not receive additional compensation for their Board service.Exhibit

2016 CORPORATE BONUS PLAN

1.Purpose. The purpose of this 2016 Corporate Bonus Plan (the “Plan”) is to motivate and encourage the employees of Qualys (the “Company”) to achieve its stated goals and to assist the Company in attracting, motivating and retaining employees on a competitive basis.
2.Eligibility  
(a)    An officer or employee of the Company is designated as a participant in the Plan (“Participant”) and shall be eligible to participate in the Plan if he or she is a regular full-time or regular part-time employee (working greater than 20 hours a week) and he or she is not already participating in a separate Compensation Plan or MBO plan. 
(b)    New Hires. New employees hired in the first or second month of a quarter will be eligible to participate in the Plan for that quarter, such participation will be prorated based on the number of days employed in the quarter.
 
(c)    Termination of Employment. To be eligible for the bonus, the employee must be employed as of the last day of the quarter.
(d)    Absence during Performance Period. If a Participant is absent for a period of more than one-half of the scheduled workdays during a quarter, for any reason, the Participant’s bonus payment will be prorated based on the number of days the Participant actually worked compared to the total number of scheduled work days during that quarter.
3.Bonus Criteria
 (a)    Bonus Period. The Bonus Plan is effective from January 1, 2016 through December 31, 2016. Each calendar quarter is a separate bonus period. 
 (b)          Bonus Level. A Participant’s level of participation in the Plan is set based on their grade level as determined by the Human Resources Department and is applied to the Participant’s base salary as of the last day of that quarter to determine the bonus amount.

(c)    Objective Criteria:  For the first quarter, the Plan payments are based on the single goal of ASV Growth (as defined below).  For the second, third and fourth quarter, the Plan payments will be based on ASV Growth, Revenue Growth (as defined below) and Non-GAAP EPS (as defined below).

Page 1 of  3    Effective 07/01/2016, amended July 2016

(1)      ASV Growth. The stated goal is the growth in company-wide bookings as represented by Annual Subscription Value (“ASV”) for the current quarter over the same quarter of the prior year. ASV is the sum of one year’s worth of subscribed revenues to Qualys for all new, renewal and upsell subscriptions contracted by customers and channel partners in each quarter. ASV is determined by policies and practices administered by the Controller and the final quarterly ASV amount is approved by the CFO.

(2)     Revenue Growth.  The stated goal is the growth in company-wide revenue (as determined in accordance with GAAP and set forth in the Company’s quarterly and annual financial statements) for the current quarter over the same quarter of the prior year.

(3)     Non-GAAP EPS.  The stated goal is Non-GAAP earnings per diluted share.  Non-GAAP EPS is GAAP net income less stock-based compensation expense and non-recurring charges under this Plan divided by weighted average shares (diluted) for the applicable quarter. 

(d)    Payout Calculation.  A Participant’s bonus amount will be equal to the aggregate for each of the applicable objective goals as follows: the payment percentage described below multiplied by weighting percentage for the applicable goal.  For the first quarter, ASV Growth was the sole goal and had a 100% weighting.  For the second, third and fourth quarter, ASV Growth, Revenue Growth and Non-GAAP EPS shall be the 3 goals and shall be equally weighted.

(1)ASV Growth.  Bonus payments for ASV growth calculations are set forth in Section 1 of the Appendix.

(2)Revenue Growth.  The payout percentage scales based upon achievement of Revenue Growth as described in Section 2 of the Appendix.

(3)Non-GAAP EPS.  The payout percentage scales based upon achievement of Non-GAAP EPS as described in Section 3 of the Appendix.

(e)    Bonus Payments. Bonus payments to Participants under this Plan will be made with the first payroll of the second month following the end of the quarter. Bonus payments are “gross” amounts, meaning that they constitute the full amount and that there will be no other increases (for example, to cover income taxes). The company will deduct from any payment under the Plan the amount of all applicable income and employment taxes, and any other amounts required by law to be withheld or deducted from such payment. None of the payments will be “benefits bearing” (i.e., the bonus amounts will not be used for purposes of determining any other company-provided benefits or compensation).

4.    Administration. This Plan shall be administered by the Company’s CFO (except with respect to Participants who are the Company’s executive officers, in which case the Compensation Committee of the Board of Directors will serve as the administrator), who may make and apply such rules deemed desirable or necessary to administer the Plan in the best interests of the Company. All questions of interpretation or application of the Plan may be addressed in writing to the CFO (or as applicable, the Compensation Committee), who shall review each inquiry in good faith, and each such determination shall be final and binding. 

Page 2 of  3    Effective 07/01/2016, amended July 2016

APPENDIX

1.ASV Growth.  ASV Growth will be rounded to the nearest 1/10 of a percentage (e.g., achievement, Target ASV Growth, and % of Target ASV Growth at or above 0.05% will be rounded up to 0.1%, and below 0.05% will be rounded down to 0.0%). Target ASV Growth is defined as [***]. The payout percentage scales based upon the achievement of ASV Growth in relation to the Target ASV Growth as follows with no sliding scale of achievement between tiers:

	
		
	ASV Growth
	Payment Percentage

	Less than 80% of Target ASV Growth
	0%

	80% of Target ASV Growth
	25%

	85% of Target ASV Growth
	50%

	90% of Target ASV Growth
	75%

	95% of Target ASV Growth
	95%

	Target ASV Growth
	100%

	105% of Target ASV Growth
	105%

	110% of Target ASV Growth
	110%

	115% of Target ASV Growth
	115%

	120% of Target ASV Growth
	120%

2.Revenue Growth.  Revenue Growth will be rounded to the nearest 1/10 of a percentage (e.g., achievement and [***] at or above 0.05% will be rounded up to 0.1%, and below 0.05% will be rounded down to 0.0%).  The payout percentage scales based upon achievement of Revenue Growth in relation to the implied growth based on [***] as follows with no sliding scale of achievement between tiers:

	
		
	Revenue Growth
	Payment Percentage

	[***]
	0%

	[***]
	25%

	[***]
	50%

	[***]
	100%

3.Non-GAAP EPS.  Non-GAAP EPS achievement and [***] will be rounded to the nearest whole cent (e.g., achievement at or above $0.005 will be rounded up, and achievement below $0.005 will be rounded down).  The payout percentage scales based upon the achievement of Non-GAAP EPS in relation to the [***] as follows with no sliding scale of achievement between tiers:

	
		
	Non-GAAP EPS
	Payment Percentage

	[***]
	0%

	[***]
	25%

	[***]
	50%

	[***]
	100%

[***] Information has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions.

Page 3 of  3    Effective 07/01/2016, amended July 2016EX-10.1

 Exhibit 10.1 

EIGHTH AMENDMENT TO 

AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT 

THIS EIGHTH AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (the “Amendment”) is dated July 29, 2016 and is by
and among MEDALLION FINANCIAL CORP., a Delaware corporation having an address of 437 Madison Avenue, New York, New York 10022 (the “Borrower”), MEDALLION FUNDING LLC, a New York limited liability company, with its chief executive
office located at 437 Madison Avenue, New York, New York 10022 (the “Guarantor”), and STERLING NATIONAL BANK, a national banking association having an address of 500 Seventh Avenue, New York, New York 10018 (the
“Bank”). 
 RECITALS 

A. The Borrower, the Guarantor and the Bank entered into an Amended and Restated Loan and Security Agreement dated March 28, 2011 (the
“Original Loan Agreement”), pursuant to which the Bank has agreed to extend certain credit and make certain loans to the Borrower. 

B. The Borrower, the Guarantor and the Bank have amended the Original Loan Agreement pursuant to a First Amendment to Amended and Restated
Loan and Security Agreement dated September 1, 2011 (the “First Amendment”). 
 C. The Borrower, the Guarantor, and the
Bank have further amended the Original Loan Agreement pursuant to a Second Amendment to Amended and Restated Loan Agreement dated January 8, 2013 (the “Second Amendment”). 

D. The Borrower, the Guarantor, and the Bank have further amended the Original Loan Agreement pursuant to a Third Amendment to Amended and
Restated Loan Agreement dated October 23, 2013 (the “Third Amendment”). 
 E. The Borrower, the Guarantor, and the Bank
have further amended the Original Loan Agreement pursuant to a Fourth Amendment to Amended and Restated Loan Agreement dated August 11, 2014 (the “Fourth Amendment”). 

F. The Borrower, the Guarantor, and the Bank have further amended the Original Loan Agreement pursuant to a Fifth Amendment to Amended and
Restated Loan Agreement dated July 5, 2015 (the “Fifth Amendment”). 
 G. The Borrower, the Guarantor, and the Bank have
further amended the Original Loan Agreement pursuant to a Sixth Amendment to Amended and Restated Loan Agreement dated June 29, 2016 (the “Sixth Amendment”). 

H. The Borrower, the Guarantor, and the Bank have further amended the Original Loan Agreement pursuant to a Seventh Amendment to Amended and
Restated Loan Agreement dated July 15, 2016 (the “Seventh Amendment”) (the Original Loan Agreement, as amended by the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment, the Fifth Amendment, the Sixth
Amendment and the Seventh Amendment, is collectively referred to herein as the “Loan Agreement”). 

 I. The Borrower has requested, and the Bank has agreed, to amend the Loan Agreement, all as more
fully described herein. 
 NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 AGREEMENT 

1. Defined Terms. Except as otherwise indicated herein, all words and terms defined in the Loan Agreement shall have the same meanings
when used herein. 
 2. Extension of Facility A Maturity Date. The Facility A Maturity Date is hereby extended to August 15, 2016.
Accordingly, the definition of the term “Facility A Maturity Date” set forth in Section 11 of Annex 2 to the Loan Agreement is hereby amended and restated in its entirety as follows: 

“Facility A Maturity Date: August 15, 2016.” 

3. Amendments to Other Loan Documents. Each of the other Loan Documents is hereby amended to the extent necessary to reflect the
amendment(s) to the terms of the Loan Agreement effected by this Amendment. The Borrower shall take or cause to be taken such actions, and shall execute, deliver, file and/or record or cause to be executed, delivered, filed and/or recorded such
documents and other instruments, as the Bank shall deem to be necessary or advisable in order to confirm, implement or perfect the amendments to the other Loan Documents effected by this Paragraph. 

4. No Defenses. The Borrower acknowledges that, as of the date of this Amendment, the aggregate outstanding principal balance under the
Facility A Revolving Loan is $22,135,000.00. The Borrower acknowledges and agrees that, as of the date hereof, it has no offsets, counterclaims or defenses of any nature whatsoever to its Obligations to the Bank under the Loan Agreement or any of
the other Loan Documents, and hereby expressly waives and releases any and all claims against the Bank which exist on the date hereof with respect thereto. 

5. Reaffirmation of Guaranty. In order to induce the Bank to enter into this Amendment and to amend the Loan Agreement as provided
herein, the Guarantor hereby (a) ratifies and reaffirms the Guarantor’s obligations, and the Bank’s rights, under the Guaranty, all of the terms and conditions of which remain in full force and effect, (b) consents to the execution and
delivery by the Borrower of this Amendment and the consummation of the transactions contemplated thereby, (c) acknowledges and agrees that the Guaranty shall apply and/or continue to apply with full force and effect to, and shall serve and/or
continue to serve as security for, all Obligations of the Borrower to the Bank, including without limitation all of the Obligations of the Borrower under the Loan Agreement, as amended by this Amendment, (d) acknowledges and agrees that, as of the
date hereof, there are no counterclaims, offsets or defenses to the Guarantor’s obligations under the Guaranty, and waives and releases all claims against the Bank 

  
 2 

 
in connection therewith and (e) confirms that the Guarantor has derived direct and immediate financial and other benefits from the transactions contemplated by the Loan Agreement, and will
continue to derive direct and immediate financial and other benefits from the transactions contemplated by the Loan Agreement, as amended by this Amendment. 

6. Representations and Warranties. In order to induce the Bank to enter into this Amendment and to amend the Loan Agreement as provided
herein, each Entity Loan Party hereby represents and warrants to the Bank that: 
 (a) All of the representations and warranties of each
Entity Loan Party set forth in the Loan Agreement are true, complete and correct in all material respects on and as of the date hereof with the same force and effect as if made on and as of the date hereof and as if set forth at length herein. 

(b) After giving effect to this Amendment, no Event of Default presently exists and is continuing on and as of the date hereof. 

(c) Since the date of the Entity Loan Parties’ most recent financial statements delivered to the Bank, each Entity Loan Party has not
experienced a material adverse effect in its business, operations or financial condition. 
 (d) Each Entity Loan Party has full power and
authority to execute, deliver and perform any action or step which may be necessary to carry out the terms of this Amendment and this Amendment has been duly executed and delivered by each Entity Loan Party and is the legal, valid and binding
obligation of each Entity Loan Party enforceable in accordance with its terms, subject to any applicable bankruptcy, insolvency, general equity principles or other similar laws affecting the enforcement of creditors’ rights generally. 

(e) The execution, delivery and performance of this Amendment will not (i) violate any provision of any existing law, statute, rule,
regulation or ordinance, (ii) conflict with, result in a breach of, or constitute a default under (A) the certificate of incorporation or by-laws of the Borrower, (B) the certificate of formation or operating agreement of the Guarantor, (C) any
order, judgment, award or decree of any court, governmental authority, bureau or agency, or (D) any mortgage, indenture, lease, contract or other material agreement or undertaking to which the Entity Loan Parties are a party or by which the Entity
Loan Parties or any of their properties or assets may be bound, or (iii) result in the creation or imposition of any lien or other encumbrance upon or with respect to any property or asset now owned or hereafter acquired by the Entity Loan Parties,
other than liens in favor of the Bank, except, in the case of clauses (ii) and (iii) above, for any deviation from the foregoing which would not reasonably be expected to have a Material Adverse Effect. 

(f) No consent, license, permit, approval or authorization of, exemption by, notice to, report to, or registration, filing or declaration with
any person is required in connection with the execution, delivery and performance by the Entity Loan Parties of this Amendment or the validity thereof or the transactions contemplated thereby, other than (i) filing or recordation of financing
statements and like documents in connection with the Liens granted in favor of the Bank, (ii) those consents, if they were not obtained or made, which would not reasonably be expected to have a Material Adverse Effect and (iii) filings which the
Entity Loan Parties may be obligated to make with the Securities and Exchange Commission. 

  
 3 

 7. Bank Costs. The Borrower shall reimburse the Bank on demand for all costs, including
reasonable legal fees and expenses and recording fees, incurred by the Bank in connection with this Amendment and the transactions referenced herein. If payment of such costs is not made within ten (10) days of the Bank’s demand therefor, the
Bank may, and the Borrower irrevocably authorizes the Bank to, charge the Borrower’s account with the Bank or make an advance under the Facility A Revolving Loan in order to satisfy such obligation of the Borrower. 

8. Counterparts. This Amendment may be signed in several counterparts, each of which shall be an original and all of which shall
constitute one and the same instrument. 
 9. No Change. Except as expressly set forth herein, all of the terms and provisions of the
Loan Agreement shall continue in full force and effect. 
 10. Governing Law. This Amendment shall be governed by and construed in
accordance with the laws of the State of New York. 
 [Signatures on following page] 

  
 4 

 IN WITNESS WHEREOF, the parties hereto have caused this Eighth Amendment to Amended and Restated
Loan and Security Agreement to be duly executed and delivered by their proper and duly authorized officers as of the date set forth on the first page hereof. 

 

			
	MEDALLION FINANCIAL CORP.
		
	By:	 	 /s/ Andrew Murstein

	Name:	 	Andrew Murstein
	Title:	 	President
	
	MEDALLION FUNDING LLC
		
	By:	 	 /s/ Thomas J. Munson

	Name:	 	Thomas J. Munson
	Title:	 	SVP
	
	STERLING NATIONAL BANK
		
	By:	 	 /s/ Thomas M. Braunstein

	Name:	 	Thomas M. Braunstein
	Title:	 	Senior Vice President,
		 	Middle Market Banking

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