Document:

Exhibit 103 - Waiver and Second Amendment of Bank of America

		

			Exhibit 10.3

		

		

			 

		

		
			﻿
		

		
			WAIVER AND SECOND AMENDMENT TO
		

		
			SECOND AMENDED AND RESTATED CREDIT AGREEMENT
		

		
			﻿
		

		
			THIS  WAIVER  AND  SECOND  AMENDMENT  TO  SECOND  AMENDED  AND RESTATED CREDIT AGREEMENT (this “Waiver and Amendment”), dated as of August 7, 2020, is entered into by and among Consolidated Amusement Holdings, LLC, a Nevada limited liability company (the “Borrower”), the Affiliates of the Borrower identified on the signature pages hereto (collectively, the “Guarantors”), the financial institutions identified on the signature pages hereto (collectively, the “Lenders”), and Bank of America, N.A., as Administrative Agent, Swingline Lender and L/C Issuer, with reference to the following facts:
		

		
			﻿
		

		
			RECITALS
		

		
			﻿
		

			
	
			
				 A.
			The Borrower, the Guarantors, the Lenders, and Bank of America as Administrative Agent, Swingline Lender and L/C Issuer are parties to a Second Amended and Restated Credit Agreement, dated as of March 6, 2020, as amended by a Waiver and First Amendment to Second Amended and Restated Credit Agreement dated as of May 15, 2020 (collectively, the “Credit Agreement”), pursuant to which the Lenders provide a revolving credit facility to the Borrower in an aggregate amount of up to $55,000,000.

		
			﻿
		

			
	
			
				 B.
			As a result of the Coronavirus, COVID-19 events commencing during March 2020, Events of Default (collectively, the “Existing Defaults”) have occurred and are continuing under Section 8.01(b) of the Credit Agreement as the consequence of the Borrower’s breach of each of the financial covenants set forth in Section 7.11 of the Credit Agreement for the Measurement Period ended June 30, 2020.

		
			﻿
		

			
	
			
				 C.
			The parties are entering into this Waiver and Amendment by which the Lenders will waive the Existing Defaults and the parties will amend and supplement the Credit Agreement as set forth below.

		
			﻿
		

			
	
			
				 D.
			Certain amendments to the Credit Agreement made pursuant to this Waiver and Amendment are indicated, in the case of deletions from text, with a strikethrough or, in the case of additions to text, in bold, italicized and underscored type.

		
			﻿
		

		
			NOW, THEREFORE, the parties hereby agree as follows:
		

		
			﻿
		

			
	
			
				 1.
			Defined Terms.  Any and all initially capitalized terms used in this Waiver and Amendment without definition (including, without limitation, in the recitals to this Waiver and Amendment) shall have the respective meanings set forth for such terms in the Credit Agreement.

		
			﻿
		

			
	
			
				 2.
			Waiver of Existing Defaults. The Lenders hereby waive each of the Existing Defaults. Such waiver by the Lenders shall constitute a waiver of only the Existing Defaults, and, except as expressly set forth in Section 7 hereof, shall not constitute a waiver of the Borrower’s obligation to comply with Section 7.11 of the Credit Agreement on any other occasion.

		

		

		 

		

			1

		

		

			 

		

 

		
		

		
			﻿
		

			
	
			
				 3.
			

			
	
			
			Amendment of Certain Pricing Provisions.

		
			﻿
		

			
	
			
				 A.
			Elimination of Pricing Grid.  Section 1.01 of the Credit Agreement is hereby amended by deleting therefrom the definition of “Applicable Rate” in its entirety.

		
			﻿
		

			
	
			
				 B.
			Establishment of Base Rate Floor.  Section 1.01 of the Credit Agreement is hereby amended by amending and restating the definition of Base Rate so that it reads in full as follows:

		
			﻿
		

		
			‘“Base Rate’  means for any day a fluctuating rate of interest per annum equal to the highest of (a) the Federal Funds Rate plus 0.50%, (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its “prime rate,” and (c) the Eurodollar Rate plus 1.00% subject to the interest rate floors set forth therein; provided that if the Base Rate shall be less than zero, such rate shall be deemed zero for purposes of this Agreement the Base Rate shall not be less than one percent (1.00%) per annum. The “prime rate” is a rate set by Bank of America based upon various factors including Bank of America’s costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans, which may be priced at, above, or below such announced rate. Any change in such prime rate announced by Bank of America shall take effect at the opening of business on the day specified in the public announcement of such change.”
		

		
			﻿
		

			
	
			
				 C.
			Establishment of Eurodollar Rate “Floor.” Section 1.01 of the Credit Agreement is hereby amended by amending the proviso at the end of the definition of “Eurodollar Rate” so that it reads in full as follows:

		
			﻿
		

		
			“provided that, if the Eurodollar Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement the Eurodollar Rate shall not be less than one percent (1.00%) per annum.”
		

		
			﻿
		

			
	
			
				 D.
			Establishment of Federal Funds Rate Floor.  Section 1.01 of the Credit Agreement is hereby amended by amending and restating the definition of Federal Funds Rate so that it reads in full as follows:

		
			﻿
		

		
			‘“Federal Funds Rate’ means, for any day, the rate per annum calculated by the Federal Reserve Bank of New York based on such day’s federal funds transactions by depository institutions (as determined in such manner as the Federal Reserve Bank of New York shall set forth on its public website from time to time) and published on the next succeeding Business Day by the Federal Reserve Bank of New York as the federal funds effective rate; provided that if the Federal Funds Rate as so determined would be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement the Federal Funds Rate shall not be less than one percent (1.00%) per annum..”
		

		
			﻿
		

			
	
			
				 E.
			Amendment of Interest Rate Provision. Section 2.08(a) of the Credit Agreement is hereby amended and restated to read in full as follows:

		

		

		 

		

			2

		

		

			 

		

 

		
		

		
			﻿
		

		
			“(a) Interest. Subject to  the provisions  of Section 2.08(b), (i) each Eurodollar Rate Loan shall bear interest on the outstanding principal amount thereof for each Interest Period from the applicable borrowing date at a rate per annum equal to the Eurodollar Rate for such Interest Period plus the Applicable Rate three hundred (300) basis points; (ii) each Base Rate Loan shall bear interest on the outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal to the Base Rate plus the Applicable Rate two hundred (200) basis points; and (iii) each Swingline Loan shall bear interest on the outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal to the Base Rate plus the Applicable Rate two hundred (200) basis points.”
		

		
			﻿
		

			
	
			
				 D.
			Amendment of Commitment Fee Provision.  Section 2.09(a) of the Credit Agreement is hereby amended and restated to read in full as follows:

		
			﻿
		

			
	
			
				 (a)
			“Commitment Fee. The Borrower shall pay to the Administrative Agent for the account of each Lender in accordance with its Applicable Percentage, a commitment fee equal to the Applicable Rate 30 basis points times the actual daily amount by which the Facility exceeds the sum of (i) the Outstanding Amount of Revolving Loans and (ii) the Outstanding Amount of L/C Obligations, subject to adjustment as provided in Section 2.15. For the avoidance of doubt, the Outstanding Amount of Swingline Loans shall not be counted towards or considered usage of the Aggregate Commitments. The commitment fee shall accrue at all times during the Availability Period, including at any time during which one or more of the conditions in Article IV is not met, and shall be due and payable quarterly in arrears on the last Business Day of each March, June, September and December, commencing with the first such date to occur after the Amendment Effective Date, and on the last day of the Availability Period. The commitment fee shall be calculated quarterly in arrears, and if there is any change in the Applicable Rate during any quarter, the actual daily amount shall be computed and multiplied by the Applicable Rate separately for each period during such quarter that such Applicable Rate was in effect.

		
			﻿
		

			
	
			
				 E.
			Establishment of Floor for LIBOR Successor Rate.  Section 3.03(e) of the Credit Agreement is hereby amended and restated to read in full as follows:

		
			﻿
		

		
			“(e) Notwithstanding anything else herein, any definition of LIBOR Successor Rate shall provide that in no event shall such LIBOR Successor Rate be less than zero  one percent (1.00%) per annum for purposes of this Agreement.”
		

		
			﻿
		

			
	
			
				 4.
			Addition of Monthly Financial Information and 13-Week Cash Flow Forecast Delivery Requirement. In addition to delivering the financial statements and information required by Section 6.01 of the Credit Agreement, the Borrower shall deliver each of the following items to the Administrative Agent no later than ten (10) days after the end of each month, commencing with the month ending August 2020:

		
			﻿
		

			
	
			
				 (i)
			monthly financial statements, in form and substance substantially similar to the quarterly financial statements required by Section 6.01(b) of the Credit Agreement;

		
			﻿
		

			
	
			
				 (ii)
			cash flow forecasts for the following 13-weeks, in form and substance reasonably satisfactory to the Administrative Agent and the Lenders; and

		

		

		 

		

			3

		

		

			 

		

 

		
		

			
	
			
				 (iii)
			a compliance certificate in the form of Exhibit  A to this Waiver and Amendment.

		
			﻿
		

			
	
			
				 5.
			Temporary Suspension of Lease Payment Obligations Covenant. The Borrower’s obligation to comply with Section 6.17 of the Credit Agreement for any theater that is closed due to the Coronavirus, Covid 19 events is hereby suspended until such theater is reopened.

		
			﻿
		

			
	
			
				 6.
			Prohibition on Additional Indebtedness. Notwithstanding anything to the contrary set forth in Section 7.02 of the Credit Agreement, none of the Loan Parties shall incur, or enter into a contractual commitment to incur, additional Indebtedness under any of the exceptions described in subsections (a) through (k) of Section 7.02 of the Credit Agreement  until the Obligations are fully and finally paid and the Commitments are terminated; provided that this Section 6 shall not prohibit either: (i) the Borrower from incurring and the Loan Parties from being liable for additional Revolving Loans under the Credit Agreement or other Loan Documents not to exceed each Lender’s Commitment as set forth in Section 2.01 of the Credit Agreement; or (ii) the Borrower from continuing to guarantee the Reading Indebtedness up to $5,000,000 principal amount. Furthermore, the Borrower shall not, and shall no longer have the right to, request an Incremental Facility under Section 2.16 of the Credit Agreement.

		
			﻿
		

			
	
			
				 7.
			Prohibition of Parent Cash Dividends, Distributions and Other Restricted Payments. Notwithstanding anything to the contrary set forth in Section 7.06 of the Credit Agreement, the Parent and the Borrower shall not declare and make cash dividends or distributions or make any other Restricted Payments in cash until the Obligations are fully and finally paid and the Commitments are terminated.

		
			﻿
		

			
	
			
				 8.
			Temporary Suspension of Financial Covenant Testing. The Borrower shall have no obligation to comply with any of the financial covenants set forth in Section 7.11 of the Credit Agreement for any Measurement Period ended on or before September 30, 2021 or to deliver a Compliance Certificate with respect to any such Measurement Period pursuant to Section 6.02(b) of the Credit Agreement. The Borrower’s obligation to comply with each of such financial covenants shall resume with the Measurement Period ending December 31, 2021.

		
			﻿
		

			
	
			
				 9.
			Addition of Monthly Liquidity Covenant. The Borrower shall maintain Liquidity (as defined below) as of the last day of each month, commencing August 31, 2020 and continuing through and including September 15, 2021, of not less that the correlative amount set forth below:

		
			﻿
		

			
					
						﻿

					
					
						 

				
	
					
						Month Ended

					
						 

					
						August 31, 2020

					
					
						Minimum Liquidity

					
						 

					
						$6,600,000

				
	
					
						September 30, 2020

					
					
						$5,800,000

				
	
					
						October 31, 2020

					
					
						$4,500,000

				
	
					
						November 30, 2020

					
					
						$5,000,000

				
	
					
						December 31, 2020

					
					
						$7,000,000

				
	
					
						January 31, 2021

					
					
						$6,500,000

				

		
			 
		

		 

		

			4

		

		

			 

		

 

			
					
						﻿

					
					
						 

				
	
					
						February 28, 2021

					
					
						$6,600,000

				
	
					
						March 31, 2021

					
					
						$8,000,000

				
	
					
						April 30, 2021

					
					
						$9,100,000

				
	
					
						May 31, 2021

					
					
						$11,400,000

				
	
					
						June 30, 2021

					
					
						$12,800,000

				
	
					
						July 31, 2021

					
					
						$15,000,000

				
	
					
						August 31, 2021

					
					
						$15,000,000

				
	
					
						September 15, 2021

					
					
						$15,000,000

				

		
			﻿
		

		
			For the purpose of this covenant, the term “Liquidity” shall mean, as of any date of determination, the sum of: (a) the Borrower’s aggregate cash on such date; and (b) the amount of borrowing availability under the Facility on such date.
		

		
			﻿
		

			
	
			
				 10.
			

			
	
			
			Mandatory Prepayments.

		
			﻿
		

			
	
			
				 A.
			Pay-Downs on Facility from Excess Cash. The Borrower shall make weekly pay downs on the Facility no later than the close of business each Tuesday by 100% of the amount that the Borrower’s cash on deposit with Bank of America as of the immediately preceding Friday exceeds $3,000,000. Such payments shall be applied to reduce the Obligations but shall not cause a permanent reduction in the amount of the Facility.

		
			﻿
		

			
	
			
				 B.
			Permanent Reductions in Facility fro m Payments of Disposed Assets. The Borrower shall repay the Obligations by 100% of the amount of the net proceeds to the Borrower in excess of $250,000 resulting from any disposition of an asset or of multiple assets disposed of in a single transaction. Such payments shall be applied to reduce the principal amount of the Revolving Loans and shall permanently reduce the Aggregate Commitments.

		
			﻿
		

			
	
			
				 11.
			Amendment of Conditions to all Credit Extensions. Section 4.02(a) of the Credit Agreement shall be amended to add the following proviso to the end of such section:

		
			﻿
		

		
			“; provided, in each case, that any representation or warranty which is qualified by reference to Material Adverse Effect shall exclude events, circumstances, occurrences or conditions arising from the COVID-19 pandemic”
		

		
			﻿
		

			
	
			
				 12.
			General Release. From and after the effective date of this Waiver and Amendment, the Borrower and each Guarantor hereby agrees that, without any further act, the Administrative Agent, each Lender and each other Secured Party is fully and forever released and discharged from any and all claims for damages or losses to the Borrower, any Guarantor, or to any property of the Borrower or any Guarantor (whether any such damages or losses are known or unknown, foreseen or unforeseen, or patent or latent), including, without limitation, any tort claim, demand, action or cause of action of any nature, whatsoever, arising under or relating to the Credit Agreement or the other Loan Documents or any of the transactions related thereto, prior to the date hereof, and the Borrower and each Guarantor hereby waive application of California Civil Code Section 1542. The Borrower and each Guarantor certify that they have read the following provisions of California Civil Code Section 1542:

		
			﻿
		

		
			A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.
		

		
			﻿
		

		
			The Borrower and each Guarantor understands and acknowledges that the significance and consequence of this waiver of California Civil Code Section 1542 is that even if the Borrower or such Guarantor should eventually suffer additional damages arising out of the facts referred to above, it will not be able to make any claim for those damages. Furthermore, the Borrower and each Guarantor acknowledge that they intend these consequences even as to claims for damages that may exist as of the date of this release but which the Borrower or such Guarantor does not know exist, and which, if known, would materially affect the Borrower’s or such Guarantor’s decision to execute this Waiver and Amendment, regardless of whether the Borrower’s or such Guarantor’s lack of knowledge is the result of ignorance, oversight, error, negligence, or any other cause.
		

		

		

		 

		

			5

		

		

			 

		

 

		﻿
		

			
	
			
				 13.
			Conditions Precedent.  This Waiver and Amendment shall become effective as of the date first set forth above upon satisfaction of the following conditions:

		
			﻿
		

			
	
			
				 (i)
			This Waiver and Amendment. The Administrative Agent shall have received this Waiver and Amendment, duly executed by the Borrower, the Guarantors, and each of the Lenders;

		
			﻿
		

			
	
			
				 (ii)
			Waiver and Amendment Fee. The Borrower shall have paid to the Administrative Agent, for the ratable benefit of the Lenders, a one-time, non-refundable fee of

		
			$137,500; and
		

		
			﻿
		

			
	
			
				 (iii)
			Legal Fees and Expenses. Administrative Agent’s outside counsel shall have received payment from the Borrower of all outstanding fees and expenses previously incurred and all fees and expenses incurred in connection with this Waiver and Amendment, in each case to the extent invoiced to the Borrower on or before the date hereof.

		
			﻿
		

			
	
			
				 14.
			Reaffirmation and Ratification. The Borrower hereby reaffirms, ratifies and confirms its Obligations under the Credit Agreement and acknowledges that all of the terms and conditions of the Credit Agreement, except as otherwise provided herein, remain in full force and effect.

		
			﻿
		

			
	
			
				 15.
			Representations and Warranties. The Borrower hereby confirms that all representations and warranties of the Borrower contained in Article V of the Credit Agreement continue to be true and correct in all material respects after giving effect to this Waiver and Amendment, except (i) for representations and warranties which are qualified by the inclusion of a materiality standard, which representations and warranties shall be true and correct in all respects and (ii) to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date; provided, in each case, that any representation or warranty which is qualified by reference to Material

		

		

		 

		

			6

		

		

			 

		

 

		
		

		
			﻿
		

		
			Adverse Effect shall exclude events, circumstances, occurrences or conditions arising from the COVID-19 pandemic.
		

		
			﻿
		

			
	
			
				 16.
			Events of Default. Except for the Existing Defaults waived hereunder, neither any Default nor any Event of Default has occurred and is continuing under the Credit Agreement.

		
			﻿
		

			
	
			
				 17.
			Integration. This Waiver and Amendment constitutes the entire agreement of the parties in connection with the subject matter hereof and cannot be changed or terminated orally. All prior agreements, understandings, representations, warranties and negotiations regarding the subject matter hereof, if any, are merged into this Waiver and Amendment.

		
			﻿
		

			
	
			
				 18.
			Counterparts. This Waiver and Amendment may be executed in multiple counterparts, each of which when so executed and delivered shall be deemed an original, and all of which, taken together, shall constitute but one and the same agreement.

		
			﻿
		

			
	
			
				 19.
			Governing Law. This Waiver and Amendment shall be governed by, and construed and enforced in accordance with, the internal laws (as opposed to the conflicts of law principles) of the State of New York.

		
			﻿
		

		
			[Rest of page intentionally left blank; signature pages follow]
		

		
			 
		

		

		

		 

		

			7

		

		

			 

		

 

		﻿
		

		
			IN  WITNESS WHEREOF,  the parties hereto have executed this Waiver and Amendment by their respective duly authorized officers as of the date first above written.
		

		
			﻿
		

		
			BORROWER:
		

		
			﻿
		

		
			CONSOLIDATED AMUSEMENT HOLDINGS,
		

		
			LLC,  a Nevada limited liability company
		

		
			﻿
		

		
			﻿
		

		
			By: /s/ Gilbert Avanes____________________
      Gilbert Avanes
      Chief Financial Officer
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			Waiver and Second Amendment to Second Amended and Restated Credit Agreement
		

		 

		

			

		

			 

		

		

			 

		

		

 

		
		

		
			
		

		
			GUARANTORS:
		

		
			﻿
		

		
			CONSOLIDATED  ENTERTAINMENT,  INC.,
		

		
			a Nevada corporation
		

		
			﻿
		

		
			﻿
		

		
			By: /s/ Gilbert Avanes____________________
      Gilbert Avanes
      Chief Financial Officer
		

		
			﻿
		

		
			﻿
		

		
			ANGELIKA FILM CENTER MOSAIC, LLC,
		

		
			a  Nevada limited liability company
		

		
			﻿
		

		
			﻿
		

		
			By: /s/ Gilbert Avanes____________________
      Gilbert Avanes
      Chief Financial Officer
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			ANGELIKA FILM CENTERS LLC,
		

		
			a Delaware limited liability company       
		

		
			﻿
		

		
			                
		

		
			By: /s/ Gilbert Avanes____________________
      Gilbert Avanes
      Chief Financial Officer
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			READING CINEMAS NJ, INC.
		

		
			a Delaware corporation    
		

		
			﻿
		

		
			By: /s/ Gilbert Avanes____________________
      Gilbert Avanes
      Chief Financial Officer
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			Waiver and Second Amendment to Second Amended and Restated Credit Agreement
		

		

		

		 

		

			

		

			 

		

		

			 

		

		

 

		
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			CONSOLIDATED  CINEMA SERVICES, LLC,
		

		
			a Nevada limited liability company
		

		
			﻿
		

		
			﻿
		

		
			By: /s/ Gilbert Avanes____________________
      Gilbert Avanes
      Chief Financial Officer
		

		
			﻿
		

		
			﻿
		

		
			READING MURRIETA THEATER, LLC,
		

		
			a Nevada limited liability company
		

		
			﻿
		

		
			﻿
		

		
			By: /s/ Gilbert Avanes____________________
      Gilbert Avanes
      Chief Financial Officer
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			KAHLA CINEMA COMPANY, LLC,
		

		
			a Delaware limited liability company       
		

		
			﻿
		

		
			﻿
		

		
			By: /s/ Gilbert Avanes____________________
      Gilbert Avanes
      Chief Financial Officer
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			KAAHUMANU CINEMAS LLC,
		

		
			a Nevada limited liability company
		

		
			﻿
		

		
			﻿
		

		
			By: /s/ Gilbert Avanes____________________
      Gilbert Avanes
      Chief Financial Officer
		

		
			﻿
		

		
			﻿
		

		
			READING CONSOLIDATED HOLDINGS, INC.,
		

		
			a Nevada corporation
		

		
			﻿
		

		
			﻿
		

		
			By: /s/ Gilbert Avanes____________________
      Gilbert Avanes
      Chief Financial Officer
		

		
			       
		

		
			﻿
		

		
			Waiver and Second Amendment to Second Amended and Restated Credit Agreement 
		

		 

		

			

		

			 

		

		

			 

		

		

 

		
		

		
			﻿
		

		
			ADMINISTRATIVE AGENT AND LENDERS:
		

		
			﻿
		

		
			BANK OF AMERICA, N.A.,
		

		
			as Administrative Agent
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			By: /s/ Jacob Villere____________________
   Name: Jacob Villere
   Title: SVP – Global Commercial Banking
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			BANK OF AMERICA, N.A.,
		

		
			as a Lender, L/C Issuer and Swingline Lender
		

		
			﻿
		

		
			﻿
		

		
			By: /s/ Jacob Villere____________________
   Name: Jacob Villere
   Title: SVP – Global Commercial Banking
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			Waiver and Second Amendment to Second Amended and Restated Credit Agreement
		

		

		

		 

		

			

		

			 

		

		

			 

		

		

 

		
		

		
			﻿
		

		
			BANK OF HAWAII,
		

		
			as a Lender
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			By: /s/ Terri L. Okada____________________
   Name: Terri L. Okada
   Title: Senior Vice President
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			Waiver and Second Amendment to Second Amended and Restated Credit Agreement
		

		

		

		 

		

			

		

			 

		

		

			 

		

		

 

		EXHIBIT A
		

		
			﻿
		

		
			Form of 
		

		
			Compliance Certificate
		

		
			﻿
		

		
			Financial Statement Date: [,]
		

		
			  TO:Bank of America, N.A., as Administrative Agent
		

		
			﻿
		

		
			RE:Second Amended and Restated Credit Agreement, dated as of March 6, 2020, by and among Consolidated Amusement Holdings, LLC, a Nevada limited liability company (the “Borrower”), the Guarantors, the Lenders and Bank of America, N.A., as Administrative Agent, L/C Issuer and Swingline Lender (as amended, modified, extended, restated, replaced, or supplemented from time to time, the “Credit Agreement”; capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Credit Agreement)
		

		
			﻿
		

		
			DATE:[Date]
		

		
			﻿
		

		
			﻿
		

		
			The undersigned Responsible Officer1  hereby certifies as of the date hereof that [he/she] is the [] of the Borrower, and that, as such, [he/she] is authorized to execute and deliver this Compliance Certificate (this “Certificate”) to the Administrative Agent on the behalf of the Borrower and the other Loan Parties, and that:
		

		
			﻿
		

			
	
			
				 1.
			The Borrower has delivered the unaudited financial statements required by Section 4 of the Waiver and Second Amendment to Credit Agreement dated as of August , 2020 by and among the parties to the Credit Agreement (the “Second Amendment”) for the month ended as of the above date. Such financial statements fairly present in all material respects the consolidated financial condition, results of operations, shareholders’ equity, and cash flows of the Borrower and its Subsidiaries and Carmel in accordance with GAAP as at such date and for such period, subject only to normal year-end audit adjustments and the absence of footnotes.

		
			﻿
		

			
	
			
				 2.
			The undersigned has reviewed and is familiar with the terms of the Credit Agreement and has made, or has caused to be made under [his/her] supervision, a detailed review of the transactions and condition (financial or otherwise) of the Borrower and its Subsidiaries and Carmel during the accounting period covered by such financial statements.

		
			﻿
		

			
	
			
				 3.
			A review of the activities of the Borrower and its Subsidiaries and Carmel during such fiscal period has been made under the supervision of the undersigned with a view to determining whether during such fiscal period the Borrower and each of the other Loan Parties performed and observed all its obligations under the Loan Documents, and

		
			﻿
		

		
			[select one:]
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			______________________________
		

		
			1  This Certificate should be from the chief executive officer or treasurer of the Borrower.
		

		

		

		 

		

			1

		

		

			 

		

 

		
		

		
			[to the best knowledge of the undersigned, during such fiscal period each of the Loan Parties performed and observed each covenant and condition of the Loan Documents applicable to it, and no Default has occurred and is continuing.]
		

		
			﻿
		

		
			--or—
		

		
			﻿
		

		
			[to the best knowledge of the undersigned, the following covenants or conditions have not been performed or observed and the following is a list of each such Default and its nature and status:]
		

		
			﻿
		

			
	
			
				 4.
			The financial covenant analyses and information set forth on Schedule A attached hereto are true and accurate on and as of the date of this Certificate.

		
			﻿
		

		
			Delivery of an executed counterpart of a signature page of this Certificate by fax transmission or other electronic mail transmission (e.g., “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart of this Certificate.
		

		
			﻿
		

		
			[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
		

		
			 
		

		

		

		 

		

			2

		

		

			 

		

 

		﻿
		

		
			CONSOLIDATED AMUSEMENT 
		

		
			HOLDINGS, LLC,
		

		
			a Nevada limited liability company
		

		
			﻿
		

		
			By:__________________________________
		

		
			Name:________________________________
		

		
			Title:_________________________________
		

		
			﻿
		

		

		

		 

		

			Compliance Certificate

		

 

		
		

		
			﻿
		

		
			Schedule A
		

		
			to the Compliance Certificate
		

		
			($ in 000’s)
		

		
			﻿
		

		
			Financial Statement Date: [_________,___] (“Statement Date”)
		

		
			﻿
		

		
			﻿
		

		
			Section 8 of the Second Amendment – Liquidity
		

		
			﻿
		

		
			﻿
		

			
					
						﻿

					
					
						 

				
	
					
						i. Aggregate cash on the Statement Date

					
					
						$___________

				
	
					
						ii. Aggregate borrowing availability under the Facility as of the Statement Date

					
					
						 

					
						$___________

				
	
					
						iii. Liquidity equals the sum of Line i and ii

					
					
						$___________

				

		
			﻿
		

		
			Compliance
		

		
			﻿
		

		
			Borrower [is][is not] in compliance with Section 8 of the Second Amendment as Liquidity of $_________[is][is not] greater than or equal to the required Liquidity of $__________2.
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			______________________________
		

		
			﻿
		

		
			2  Insert the applicable minimum Liquidity amount for the Statement Debt pursuant to Section 8 of the Second Amendment.
		

		 

		

			Compliance Certificatesvmk-ex101_155.htm

EXHIBIT 10.1

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THE EXHIBIT BECAUSE IT IS BOTH NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE REGISTRANT IF PUBLICLY DISCLOSED.   [***]  INDICATES THAT INFORMATION HAS BEEN REDACTED.

 

 

Plan Document

 

				
	
Plan Summary
	
 

	
John Schoenstein ([***])
	
 

	
Business Title:
	
Chief Sales Officer
	
Sales Comp Plan:
	
CSO

	
Supervisor:
	
Alexander Lurie
	
Annual Base Salary:
	
375,000.00 USD

	
Office:
	
San Mateo
	
Annual Target Incentive:
	
375,000.00 USD

	
Hire Date:
	
09/05/2017
	
Annual On-Target Earnings:  
	
750,000.00 USD

	
Plan Effective Start Date:
	
02/01/2020
	
OTE Pay Mix:  
	
50% / 50%

	
 
	
 
	
 
	
 

 

Plan Effective End Date: 12/31/2020

 

PLAN COMPONENTS

 

Measure 1 : ACV Bookings

Weight : 80%

Territory : [***], [***], [***], [***], [***], [***], [***], [***], [***], [***], [***], [***], [***], [***], [***], [***], [***], [***], [***], [***]

Mechanic : Commission Formula Performance Period : Quarterly Payout Frequency : Monthly

 

Acceleration

		
	
% of Quota
	
Rate

	
>0% - 100%
	
1x

	
>100%
	
4x

 

Measure 2 : ACV Bookings

Weight : 20%

Territory : Self-Serve

Mechanic : Commission Formula

Performance Period : Quarterly

 

Payout Frequency : Monthly

 

Acceleration

		
	
% of Quota
	
Rate

	
>0%
	
1x

	
>100%
	
4x

 

ACV Bookings

						
	
Quota
	
QTR-1-2020
	
QTR-2-2020
	
QTR-3-2020
	
QTR-4-2020
	
YEAR-2020

	
Prorated Target Incentive (USD)
	
75,000.00
	
75,000.00
	
75,000.00
	
75,000.00
	
300,000.00

	
ACV Bookings Quota (USD)
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]

 

Self-Serve

						
	
Quota
	
QTR-1-2020
	
QTR-2-2020
	
QTR-3-2020
	
QTR-4-2020
	
YEAR-2020

	
Prorated Target Incentive (USD)
	
18,750.00
	
18,750.00
	
18,750.00
	
18,750.00
	
75,000.00

	
Self-Serve Quota (USD)
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]

 

Commission Rates

					
	
ACV Bookings Rate Table
	
Rate
	
 
	
Self-Serve Rate Table
	
Rate

	
0 % - 100 %
	
[***]
	
 
	
0 % - 100 %
	
[***]

	
100 % - and above
	
[***]
	
 
	
100 % - and above
	
[***]

 

FY20 Incentive Plan Policies, Terms, and Conditions

	
 
	
1.
	
PLAN OVERVIEW

The SurveyMonkey FY20 Incentive Plan (“Plan”) consists of this document (the “General Terms”) and any country specific addendum (“Addendum”) and a Plan Design & Acknowledgment Sheet describing your individual compensation details under the Plan (the “Details Sheet” and together with the Plan Rules, the “Plan Documents”). The company performs market development and general support services, including public relations, business development, market research and promotional activities in support of SurveyMonkey Inc. and SurveyMonkey Europe UC (the “Principals”).

	
 
	
2.
	
LEGAL REQUIREMENTS AND ETHICAL STANDARDS

Plan participants are expected to adhere to the highest standards of professional ethics. No employee shall enter into any agreement, plan, or understanding, express or implied, with any competitor with regard to prices, terms, or conditions of sales, distribution, territories or customers, nor exchange or discuss in any manner with a competitor prices or terms or conditions of sale or engage in any other conduct which violates any law (including antitrust laws and anti-bribery and corruption laws), or SurveyMonkey’s ethical standards. No SurveyMonkey employee shall pay, offer to pay, assign or give any part of his or her incentive awards, compensation, or anything else of more than nominal value to any agent, customer, supplier or representative of any customer or supplier, or to any other person as an inducement or reward for assistance in making a sale to a Principal. At no time will any employee accept any commissions, payment, bonus, gifts or special incentive, cash or non-cash that does not comply with SurveyMonkey’s Code of Conduct, from any third party (including vendors and/or sub-contractors) without the express written permission of the General Counsel. No SurveyMonkey employee shall agree to provide any customer any discount, refund, license extension, future product, feature, or deliverable that has not been described in the contract with such customer or any subsequent amendment. Any infraction of the foregoing will subject the employee to disciplinary action up to and including termination of employment and possibly criminal charges.

	
 
	
3.
	
TARGET INCENTIVE COMMISSIONS

	
 
	
3.1
	
DEFINITIONS AND CONCEPTS

Annual Contract Value (ACV): The Total Contract Value of a Sale divided by its Total Contract Term. Will be used for QV credit.

Automatic Renewal: An automatic renewal of a subscription in accordance with the terms of the agreement under which the subscription was purchased. An Automatic Renewal is not a Renewal for purposes of attaining Quota.

Booked: A Transaction is “Booked” when it fulfills all the following criteria:

	
 
	
(1)
	
the terms and conditions of the transaction have been approved by the applicable Principal’s legal department;

	
 
	
(2)
	
the applicable Principal’s finance department has approved the transaction;

	
 
	
(3)
	
the applicable Principal has received a copy of the fully executed sales agreement; and

In the case of a transaction with a Termination for Convenience clause, only the non cancelable portion of a transaction will be considered as booked. .

 

Closed: A Transaction is considered “Closed” when the customer has made payment for the Transaction to the applicable Principal. (A Transaction is partially Closed if the customer has made partial payment for that Transaction to the applicable Principal.)

Commission: A Commission is a form of incentive compensation payment made under this Plan.

Consult Calls: Consult Calls are 30-minute introductory calls that are scheduled with prospective customers. Partner and agency accounts calls do not qualify as Consult Calls.

Date of Termination: The date determined by the Company as the effective date on which your employment with the Company ends for any reason (regardless of any period of notice, severance payment, or compensation in lieu to which you may claim to be or be entitled, whether under statute, contract, or otherwise at law).

 

First-Year Contract Value: The contract value that is recognized in the first year. Only in the case of a Step- Up Contract where the First-Year Contract Value is less than $50,000, will this be used for QV credit for Account Executives.

Effective Period: January 1, 2020 to December 31, 2020

Individual Commission Rate (“ICR”): Your Target Incentive (multiplied by the measure weight) divided by

your Quota for the performance period specified on the Details Sheet.

Multi-Year Contract ACV Uplift: Additional ACV QV and commission credit given to those on an Account Executive Sales Compensation Plan for any contract that is 2 or more years. NOTE: Contracts that have a Termination-for-Convenience clause do not qualify as a Multi-Year Contract.

Net Increase in Value: A “Net Increase in Value” with respect to a Sale or Renewal of a Subscription will occur if that Sale or Renewal results in a net increase in the fees for the applicable Subscription when compared against the fees of the previous Sale or Renewal of that Subscription.

Non-Recoverable Draw: A guaranteed commission that does not need to be paid back to the Company. 

Pipeline: A lead that converted to an opportunity in the qualified stage within the Company’s CRM system. 

Quota: An individual or team’s allocated portion of the applicable Principal’s sales goal for the performance

period specified on the Details Sheet. It is generally associated with a bookings goal and expressed as a USD dollar amount. You attain Quota by generating Quota Value from Transactions.

Quota Value (“QV”): The value of a Transaction eligible to be counted towards your attainment of your

Quota. See below for criteria describing what constitutes QV.

Renewal: A Sales-assisted renewal by any Principal of a Subscription that is affected by a new executed agreement (including a renewal involving the modification of the agreement being renewed, such as in an up-sale scenario), as opposed to an Automatic Renewal that does not involve executing a new agreement.

Recoverable Draw: A commission advance that is required to be paid back to the Company.

Sale: A Sales-assisted sale of any Principal’s product or service. A Sale of a Subscription includes the sale of

additional seats for an existing Subscription plan (but not as part of a Renewal).

Sales-assisted: A Sale or Renewal is “Sales-assisted” if it is consummated other than via an online self- serve checkout flow. For example, a Sale of an Enterprise subscription will be Sales-assisted if it is completed via the execution of an Order Form document between the applicable Principal and customer.

Qualified Opportunity: A “Qualified Opportunity” is when a Sales Qualified Lead is accepted by an Account Executive and progresses beyond the default stage in the Company’s CRM system.

Sales Managed Business Outcome (“SMBO”): A qualitative measure of strategic business outcomes related to a sales role, determined by your manager in their sole discretion.

Step-Down Contract: A Multi-Year Contract where the second- and / or third-year contract value decreases over the first year.

Step-Up Contract: A Multi-Year Contract where the second- and / or third-year contract value increases over the first year.

Subscription: A “Subscription” is a subscription to a software platform offered by a Principal (SurveyMonkey, TechValidate, FluidReview, Apply, CX, Engage, etc.), but does not include Audience products or services.

Target Incentive (“TI”): The variable portion of your total compensation that is earned under the Sales Compensation Plan at 100% achievement.

Total Contract Term (“TCT”): The number of guaranteed years in a Booked Subscription.

Total Contract Value (“TCV”): The dollar value of a Booked Transaction over the entire period of the

agreement.

Transaction: A Sale or Renewal (as the context requires by any Principal).

 

 

	
 
	
3.2
	
ATTAINING QUOTA

3.2.1 Quota Value (QV)

Depending on the measure(s) associated with your role, your QV for a Transaction is the value of that Transaction (i.e. the ACV) or the number of Qualified Opportunities you generate, subject to the following conditions:

	
 
	
A.
	
You Booked the Transaction (for roles with a Bookings measurement): You will not receive QV for a Transaction unless you were primarily responsible for Booking the Transaction and were assigned ownership of the opportunity (unless the Company agrees otherwise and this is approved in writing by the Chief Sales Officer).
	
 

	
 
	
B.
	
You generated the Qualified Opportunity (for roles with a Qualified Opportunity measurement): You will not receive QV for a Qualified Opportunity unless you were primarily responsible for generating (unless the Company agrees otherwise in writing).
	
 

	
 
	
C.
	
Timing of QV Attainment: The determination of when a Transaction was Booked, or an SAL was generated, will be calculated using Pacific Standard Time (“PST”) for purposes of determining QV under the Plan. For example, a Transaction Booked on July 1 at 1:00 a.m. in Ottawa, Ontario, will be deemed to have been Booked on June 30 at 10:00 p.m. PST under the Plan for purposes of determining the QV attainment under any quarterly or semi-annual measure.
	
 

	
 
	
D.
	
Existing Subscriptions: For Renewals or Sales in relation to existing Subscriptions, QV will only be attributed to the portion of the Renewal or Sale that results in a Net Increase in Value greater than the minimum Transaction value specified in your Details Sheet for the applicable Subscription.
	
 

	
 
	
E.
	
QV for multi-year Subscriptions or non-subscription products and services: If the Transaction consists exclusively of the Sale of a Subscription, the QV for that Transaction will be the ACV plus a Multi-Year Contract ACV Uplift for contracts that are 2 or more years. If the Transaction consists of the Sale of a Subscription alongside non-subscription products / services (i.e. onboarding or training hours), the QV for that Transaction will be the Subscription ACV with applicable Multi-Year Contract ACV Uplift plus the total of all non-subscription services / products billed / delivered in the first year. Non-subscription products are ineligible for a Multi- Year Contract ACV Uplift. In the case of a Step-Up Contract where the First-Year Contract Value is less than $[***], the QV for Account Executives will be the First-Year Contract Value plus a Multi-Year Contract ACV Uplift. Contracts that have a Termination-for-Convenience clause or are a Step-Down Contract do not qualify as a Multi-Year Contract. If the Transaction consists of the Renewal of a Subscription, the QV for the Transaction will be for the Net Increase in Value of the first 12 months of fees of the renewal term only. If the Transaction is for the Sale of a product or service other than a Subscription, the QV for that Transaction will be for the ACV only, no additional commissions will be earned beyond that amount.
	
 

 

					
	
Product
	
ACV Bookings
	
# of Years
	
Uplift
	
QV Bookings

	
Apply
	
$[***]
	
2
	
[***]
	
$[***]

	
Audience
	
$[***]
	
2
	
[***]
	
$[***]

	
CX
	
$[***]
	
2
	
[***]
	
$[***]

	
Engage
	
$[***]
	
2
	
[***]
	
$[***]

	
GetFeedback
	
$[***]
	
2
	
[***]
	
$[***]

	
Survey Research
	
$[***]
	
2
	
[***]
	
$[***]

	
SME
	
$[***]
	
2
	
[***]
	
$[***]

	
TechValidate
	
$[***]
	
2
	
[***]
	
$[***]

	
Usabilla
	
$[***]
	
2
	
[***]
	
$[***]

 

 

	
 
	
F.
	
Customer account responsibility: You will not receive QV for a Transaction unless you were assigned responsibility for the customer account to which the Transaction relates. Management may reassign existing customer accounts or territories to other team members at any time and for any reason in its absolute discretion, subject to local legal requirements.
	
 

	
 
	
G.
	
Products and Services: You will not receive QV for a Transaction unless you have primary responsibility for promoting or servicing the product or service that is being sold or renewed as part of the Transaction.
	
 

	
 
	
H.
	
Annualization of Co-Term deals: In the case where an Account Executive closes an Upsell or Cross-sell deal, where the contract is structured to end on the same date as the original subscription (“co-term”). The amount of the “co-term” contract will be uplifted to reflect an annualized amount, equal to a 12 month ACV. The uplifted amount will be credited toward quota relief and compensation payout.
	
 

	
 
	
I.
	
Minimum Transaction Value: You will not receive QV for a Transaction unless it exceeds any minimum Transaction value threshold specified on your Details Sheet.
	
 

	
 
	
J.
	
Approvals: Only Sales and Renewals that have been approved as Closed Won in Salesforce and are not flagged as being on the “Hot List” will have QV. Only when the customer pays for a Transaction that was previously on the “Hot List”, will you then receive QV for that Transaction in the period in which the payment occurs. During the approval process, you will be informed if your Sale or Renewal includes items not eligible for QV. Examples of non-QV items include: pass-through fees or expenses, fees for services provided by third parties, and any Transaction that does not satisfy any minimum margin requirements specified on your Details Sheet.
	
 

	
 
	
K.
	
Currencies and foreign exchange: All amounts relating to Transactions and QV will be converted to US dollars for the purposes of calculating your potential incentive compensation under this Plan, using an exchange rate determined by the applicable Principal’s finance department for the month in which the Transactions occur. However, your Commission payments will be paid in the currency in which you regularly receive your salary.
	
 

	
 
	
L.
	
Prolonged Leave (Non-Parental): If you go on any form of leave (or several forms of leave) for more than 30 consecutive calendar days, other than Prolonged Parental Leave, you will be considered to be on “Prolonged Leave” during that entire period. Transactions Booked during any period in which you are on Prolonged Leave do not generate QV for you, except in the following instance: If an opportunity you are responsible for has entered the “pending” stage (e.g. the delivery of an order form, statement of work or similar sales contract, together with confirmation of receipt from the customer of such document), you may be eligible to receive a percentage of that Booking as QV if you are on Prolonged Leave at the time the Booking is made. If such a Transaction is Booked within the first 30 days of you going on Prolonged Leave, that percentage will be 100%, and if that Transaction is Booked between 31-60 days (inclusive) of you going on Prolonged Leave, that percentage will be 50%. Otherwise, the percentage will be 0%. The percentage of QV that was not attributed to you may be allocated to another sales team member who was involved with Booking the Transaction. For clarity, double counting of QV may not occur. Subject to applicable local law, provided that your Prolonged Leave was approved by the Company (where such approval was required), then effective upon returning from Prolonged Leave, your Target Incentive and any Quotas will be reduced by a prorated amount that accounts for that period of leave, as well as any Quota you attained while you were on leave. The Prolonged Leave provisions in this Section 3.2 do not apply to Sales Managers or those roles with team measures.
	
 

	
 
	
M.
	
Prolonged Parental Leave: If you go on parental leave for more than 30 consecutive days, you will be considered to be on “Prolonged Parental Leave” during that entire period. During Prolonged Parental Leave, the Company will pay your full Target Incentive pro rata for the duration of your Prolonged Parental Leave. Transactions Booked during any period in which you are on Prolonged Parental Leave may also generate QV for you, but only in the following instance: Prior to beginning your Prolonged Parental Leave, you and your manager may agree on a maximum of four (4) opportunities that you are responsible for that are near completion. You are eligible to receive credit for the Booking of those opportunities if they are 
	
 

	
 
		
Booked within the first 21 days of the beginning of your Prolonged Parental Leave. QV for other opportunities, or those that are Booked after 21 days, may be allocated to another sales team member who was involved with Booking the Transaction. For clarity, double counting of QV may not occur. For other types of leaves, or for leaves less than 30 days in length, please contact your local HR representative.
	
 

	
 
	
N.
	
Exclusions: QV excludes any tax charged to the customer or withheld by the customer in relation to a Transaction. A Transaction will not have QV — and, therefore, no incentive compensation under this Plan may be earned on the Transaction — if the Transaction was Booked after the Date of Termination, even if you had been assigned responsibility for the applicable customer account.
	
 

3.2.2Take 4 Leaves: If eligible, you must schedule a Take 4 leave with your manager at least 5 months in advance to ensure adequate coverage for the business.

3.2.3Commission Payout Calculations: Commission payouts for each measure are calculated by multiplying your ICR by the actual QV and then applying any accelerator rate corresponding to your level of attainment achieved in the performance period. Accelerator rates are specified on your Details Sheet.

3.2.4Advances under a Previous Commission Plan: If you participated in any previous commission plan, you may have been advanced and paid commissions under that plan which have not yet been earned. If the criteria under that plan for earning any advances can no longer be met, you acknowledge and agree that the amount of those advances, including any applicable accelerators, will be deducted from the Commissions you are advanced under this Plan.

3.2.5Draws and quota ramps for New Hires & Internal Transitions: In order to assist both new hires and employees making significant role transitions for a period of time following their start date or transition date, as applicable, employees that have an individual Quota target or an AE / BDR Manager are eligible to receive the draw described on their Details Sheet (if any). For new hires or role transitions that begin on or before the 10th calendar day of a month, the draw and quota period will begin that month. For new hires or role transitions that begin on the 11th calendar day of a month or later, the draw and quota period will begin the following month and they will not be eligible for any non-recoverable draws or commissions in their first partial month of employment or role transition; instead they will receive a pro-rated payout of their Target Incentive based on the number of days worked relative to the number of working days in that partial month. In order to be eligible for a draw, an employee must have signed an approved Sales Compensation Plan. Employees that are promoted or transferred into new roles are not eligible to receive draws under this Plan unless explicitly stated on their Details Sheet.

	
 
	
3.3
	
CONDITIONS FOR ATTAINING QUOTA (FOR SALES MANAGERS & TEAM ROLES)

The following conditions apply only to roles with a Team Bookings measure, or to Sales Managers, as applicable:

3.3.1 Team Sales

	
 
	
A.
	
When determining your attainment of Quota and calculating your compensation under this Plan, the QV of Transactions that are counted are not only the Transactions that you Book and Close personally, but also the Sales that are Booked and Closed by all the members of your assigned team in accordance with each of their incentive plans.
	
 

	
 
	
3.3.2
	
Prolonged Leave

	
 
	
A.
	
If you go on any form of leave (or several forms of leave) for more than 30 consecutive calendar days, other than Prolonged Parental Leave, you will be considered to be on “Prolonged Leave” during that entire period. Transactions Booked during any period in which you are on Prolonged Leave count towards attainment of your Quota, but you will not be eligible to receive any Commission based on such Quota attainment.
	
 

	
 
	
B.
	
If, during the Plan’s calendar year, the aggregate amount of time you go on Prolonged Leave exceeds 150 days, your Commission payments will only be paid out at the Base Rate (specified in your Details Sheet), regardless of how much Quota you attained. The exception to this is if the Quota you attained during the times when you were not on Prolonged Leave exceeds your Quota, in which case your Commission payments will be paid at the regular commission rates specified (and not be capped at the Base Rate).
	
 

 

 

	
 
	
3.3.3
	
Prolonged Parental Leave

	
 
	
A.
	
If you go on parental leave for more than 30 consecutive days, you will be considered to be on

“Prolonged Parental Leave” during that entire period.

	
 
	
B.
	
Transactions Booked during any period in which you are on Prolonged Parental Leave will not count towards attainment of your Quota, and you will not be eligible to receive any Commission (base or otherwise) based on such Quota attainment. Instead, effective upon returning from Prolonged Parental Leave, your Target Incentive and any Quotas will be reduced by a prorated amount that accounts for that period of Prolonged Parental Leave, based on the following:
	
 

	
 
	
C.
	
If your Prolonged Parental Leave begins on or before the 10th calendar day of a month, your Target Incentive and Quota reduction will begin that month; otherwise, your Target Incentive and Quota reduction will begin the following month.
	
 

	
 
	
D.
	
If your Prolonged Parental Leave ends on or before the 10th calendar day of a month, your prorated Target Incentive and Quota will begin that month; otherwise, your prorated Target Incentive and Quota will begin the following month.
	
 

	
 
	
E.
	
During Prolonged Parental Leave, the Company will pay your full Target Incentive pro rata for the duration of your Prolonged Parental Leave for the period that you do not have a pro-rated Quota.
	
 

	
 
	
F.
	
See below for examples:

 

			
	
EXAMPLES OF LOA DATES
	
ON-QUOTA MONTHS
	
LOA MONTHS

	
10/11 - 12/10
	
October
	
November & December

	
10/12 -11/15
	
October & December
	
November

	
10/5 -11/5
	
November & December
	
October

	
10/7 - 11/15
	
December
	
October & November

	
 
	
G.
	
For other types of leaves, or for leaves less than 30 days in length, please contact your local HR representative.

	
 
	
3.4
	
WHEN PLAN COMPENSATION IS PAID

	
 
	
3.4.1
	
Commissions

	
 
	
A.
	
Recoverable Commission Advances: The Company will make recoverable Commission advances based on the aggregate QV of Transactions that you Book during each month, subject to deductions required by law. Advances accrued during a month will be paid to you by the last day of the following month, subject to any deductions required by law. Advanced Commissions which become unearnable must be repaid to the Company, as specified below.
	
 

	
 
	
B.
	
Earning your Commissions: Commissions are only earned once a Booked Transaction becomes a Closed Transaction. In other words, the aggregate QV of your Closed Transactions determines your earned Commissions. For the avoidance of doubt, Booked Transactions become partially Closed Transactions if a customer makes a partial payment to the applicable Principal.
	
 

	
 
	
C.
	
Clawback Policy: At any point, it is at the company’s discretion whether or not commissions should be recovered from past transactions. For example, commissions may be recovered if it is determined that the Account Executive has misrepresented product functionality or promised advanced features to a customer, which led to a closed sale and bookings.
	
 

	
 
	
3.4.2
	
Termination of Employment

If your employment with the Company ends for any reason, you will receive all commissions that you have actually earned in accordance with the terms of the Plan based on your Date of Termination.

	
 
	
3.4.3
	
Disability, Personal and Family Leaves of Absence

A participant’s goals will not be adjusted as a result of taking or returning from a leave of absence, unless

otherwise stated in the provisions regarding Prolonged Leaves above.

Any sales adjustments or Commissions that become unearnable in the quarter the employee is entering a leave of absence or returning from a leave of absence will be subtracted from the employee’s prorated Commissions only. Sales adjustments and Commissions that become unearnable will not be deducted from an employee’s leave pay.

During an employee’s leave of absence, the Company accounts worked on by the employee prior to going on leave will 

be assigned according to the operational requirements of the business, in the Company’s sole discretion. One of following options may be used for the assignment, or another alternative, at the Company’s discretion:

	
 
	
A.
	
Hire a temporary contractor to cover the accounts, in which case a flat fee will be paid to the contractor.
	
 

	
 
	
B.
	
Place the accounts on the “House” account, in which case no Commissions are paid.

	
 
	
C.
	
Move accounts to another team member to cover. In this scenario, the covering team member may earn QV under his or her incentive plan from such accounts.
	
 

Upon the employee’s return from leave of absence, the employee will be reassigned the Company accounts

the employee worked on prior to going on leave, or assigned new accounts, according to the operational needs of the business.

	
 
	
3.5
	
NO SELLING OR CLOSING

This Plan is designed to incentivize you to effectively engage in market development, deal origination, and business development activities in support of the Principals’ sales activities. However, only the Principals have authority to negotiate, Book, and Close Transactions. While your compensation under this Plan is based in part upon the Principals’ Booking and Closing Transactions, nothing in this Plan is to be construed as permitting you to negotiate, Book or Close Transactions. If you do not abide by this policy, you will not receive any QV and may be subject to disciplinary action, up to and including termination of employment.

	
 
	
3.6
	
PLAN ADMINISTRATION

	
 
	
3.6.1
	
Eligibility & Effective Period

This Plan is effective during the Effective Period and the Company does not guarantee that this Plan or any similar plan will be offered again after the Effective Period. Your eligibility to participate in this Plan ends on the earlier of (a) the last day of the Effective Period; or (b) the Date of Termination.

	
 
	
3.6.2
	
Administration

This Plan is administered by HR / Sales Compensation. Please contact your manager or HR / Sales Compensation if you have any questions.

	
 
	
3.6.3
	
Entire Agreement

The Plan is comprised of these Plan Rules, Addendums, and the applicable Details Sheet, collectively. These documents collectively supersede all previous sales compensation plans, commission plans, bonus plans, and any other plan or agreement, whether written or oral, that provides for any form of incentive compensation or any compensation in addition to your base salary or equity in SVMK Inc.

This Plan shall not supersede any commissions or bonuses accrued but unpaid under a prior plan. This Plan does, however, supersede and cancel any ramps or guaranteed commissions provided for under a prior plan.

The terms of the Plan are not incorporated into the contract of employment between you and the Company.

	
 
	
3.6.4
	
Annual Update and Plan Amendments

Generally, the Company reviews and updates the terms and conditions of incentive plans and Details Sheets at least annually. For future calendar years, the plan and Details Sheets for that year will be approved in writing by an authorized representative of the Company and delivered to you within 90 days of the prior year end, slated to be effective retroactive to January 1st of the relevant calendar year where permitted by local law.

Additionally, subject to applicable local law, at any time during the Effective Period, the Company may at its absolute discretion amend, suspend, or delete any of the terms and conditions of this Plan (including any Details Sheet) or suspend, replace, or withdraw the Plan in its entirety, pursuant to a written amendment approved by the Head of HR / Benefits and the Chief Sales Officer (a “Plan Amendment”). Unless otherwise advised by the Company and subject to applicable local law, any Plan Amendment made during the Effective Period will come into effect immediately after we provide you with written notice of the Plan Amendment and may be retroactive to the beginning of the Plan Effective Period in case of obvious administrative error.

However, no Plan Amendments to this Plan will have a retroactive effect on any Closed Transactions and such Transactions shall be subject to the terms and conditions in effect at the time the Booked Transaction converted to a Closed Transaction.

 

If a new incentive plan is implemented by the Company that is intended to replace this Plan before the end of this calendar year, this Plan will expire on the date that the new plan is stated to become effective and where required, you must sign the new incentive commission plan to be eligible to receive any payments under it. From that date, you will not be entitled to any benefits under this Plan even if you do not sign the new plan.

Data Transfers

Information related to incentive compensation is required for the management and administration of this Plan and it is necessary to share your personal information with third parties, including but not limited to, payroll processors, compensation management service providers, Company affiliates, regulators or insurers, based in your jurisdiction of employment or elsewhere. It may also be necessary to share this information with potential or future employers, potential bidders and purchasers of the Company or business in which you work or in order to comply with any legal or regulatory obligations. This may involve a transfer of data, including your personal sensitive data, to a country which may not have the same data protection laws as your jurisdiction of employment. By signing this Plan, you consent to the Company holding, processing, transferring or disclosing such personal data.

Interpretation

Any capitalized term used in a Details Sheet, but not defined in that Details Sheet, will have the meaning given to that term in these Plan Rules. If there is any conflict between a Details Sheet and these Plan Rules, the Details Sheet will prevail to the extent of the conflict.

Taxes

This Plan is subject to applicable local laws and therefore payments may be subject to limitations, deductions, and withholding taxes.

Miscellaneous

Notwithstanding anything to the contrary in this Plan, this Plan will be administered so as to comply with the minimum requirements of applicable legislation, as amended from time to time, that is applicable in your place of work. The Company’s failure to enforce any provision of this Plan will not be a waiver of its right to subsequent enforcement of the provision or any other provision of the Plan. This Plan does not in any way alter the nature of your employment with the Company’s or its ability to terminate your employment and the fact that this Plan covers a specified time period does not guarantee that your employment will be continuous through that time period.

Where required, this Plan and any attachments may be executed by the parties in separate counterparts each of which, when executed, shall be considered to be an original and all of which shall constitute the same document. Executed counterparts may be delivered by facsimile or PDF email or other means of electronic delivery.

version: January 1, 2020

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00312-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00312-of-00352.parquet"}]]