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Document

Exhibit 10.1

FIFTH AMENDMENT TO LOAN AND SECURITY AGREEMENT
This Fifth Amendment to Loan and Security Agreement (this “Amendment”) is entered into as of February 9, 2021, by and among WESTERN ALLIANCE BANK, an Arizona corporation (“Bank”) REALNETWORKS DIGITAL MUSIC OF CALIFORNIA, INC., a California corporation (“RN DMC”) and REALNETWORKS, INC., a Washington corporation (“RealNetworks”, and together with RN DMC, each a “Borrower” and collectively, “Borrowers”).
RECITALS
Borrowers and Bank are parties to that certain Loan and Security Agreement dated as of August 1, 2019, as amended from time to time, including by that certain Default Waiver and First Amendment to Loan and Security Agreement dated as of February 28, 2020, that certain Second Amendment to Loan and Security Agreement dated as of March 31, 2020, that certain Third Amendment to Loan and Security Agreement dated as of April 30, 2020, that certain Consent Letter Regarding Stock Purchase dated as of October 7, 2020, and that certain Fourth Amendment to Loan and Security Agreement dated as of December 30, 2020 (the “Agreement”).  The parties desire to amend the Agreement in accordance with the terms of this Amendment.
NOW, THEREFORE, the parties agree as follows:
1.The following defined terms in Section 1.1 of the Agreement hereby are added, amended or restated as follows:
“Fifth Amendment Effective Date” means February 9, 2021.
“Prime Rate” means the greater of three and one quarter of one percent (3.25%) or the Prime Rate published in the Money Rates section of the Western Edition of The Wall Street Journal, or such other rate of interest publicly announced from time to time by Bank as its Prime Rate.  Bank may price loans to its customers at, above or below the Prime Rate.   Any change in the Prime Rate shall take effect at the opening of business on the day specified in the public announcement of a change in Prime Rate. 
“Revolving Line” means a credit extension of up to Six Million Five Hundred Thousand Dollars ($6,500,000).
“Revolving Maturity Date” means August 1, 2022.
2.With respect to the definition of “Eligible Accounts” in Section 1.1 of the Agreement, subsection (k) hereby is amended and restated in its entirety to read as follows:
“(k)    Accounts with respect to an account debtor, including Subsidiaries and Affiliates, whose total obligations to Borrower exceed thirty percent (30%) (or thirty-five percent (35%), with respect to Accounts owing by Syniverse Technologies, LLC, a Delaware limited liability company, and its affiliates) of all Accounts, to the extent such obligations exceed the aforementioned percentage, except as approved in writing by Bank;”
3.With respect to the definition of “Eligible Accounts” in Section 1.1 of the Agreement, subsection (h) hereby is amended and restated in its entirety to read as follows:
“(h)    Accounts with respect to which the account debtor does not have its principal place of business in the United States, except for Accounts (i) owing by any of Sony Music Entertainment Japan, Rakuten Inc., LG Electronics, RealTek Semiconductor, Socionext, Mediatek, and Samsung Electronic Co., Ltd., or (ii) that are approved in writing by Bank on a case-by-case basis;”
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4.Section 2.4 of the Agreement hereby is amended and restated in its entirety to read as follows:
“2.4    Collections.  All Collections received via credit card payments, a recurring ACH transfers, wire transfers, checks or any other payment method shall be deposited into the Collection Account; provided that notwithstanding the foregoing, Borrower shall only be deemed to have violated this provision if, beginning on February 28, 2021 and at all times thereafter, less than eighty percent (80%) of Borrower’s domestic Collections received via credit card payments, recurring ACH transfers, wire transfers, checks or any other payment method are being deposited into the Collection Account. Bank shall (i) so long as no Event of Default has occurred and is continuing, transfer all Collections deposited into the Collection Account to a Borrower’s deposit accounts maintained with Bank on the same day as the Collections are received, or (ii) if an Event of Default has occurred and is continuing, apply the Collections deposited into the Collection Account to the outstanding Obligations within three (3) Business Days of the date received.  Bank has no duty to do any act other than to apply such amounts as required above.  If an item of Collections is not honored or Bank does not receive good funds for any reason, any amount previously transferred to a Borrower’s deposit accounts at Bank or applied to the outstanding Obligations shall be reversed as of the date transferred or applied, as applicable, and, if applied to the outstanding Obligations, interest will accrue as if the Collections had not been so applied.  Bank shall have, with respect to any goods related to the Accounts, all the rights and remedies of an unpaid seller under the UCC and other applicable law, including the rights of replevin, claim and delivery, reclamation and stoppage in transit.”
5.Section 2.5(a) of the Agreement hereby is amended and restated in its entirety to read as follows:
    “(a)    Facility Fee.  On August 1, 2021 and on each annual anniversary thereafter, a Facility Fee equal to Sixteen Thousand One Hundred Twenty-Five Dollars ($16,125), which shall be fully earned as of the Fifth Amendment Effective Date;”
6.With respect to Section 3.2 of the Agreement, the “and” at the end of subsection (a) hereby is deleted, the period (“.”) at the end of subsection (b) hereby is deleted and replaced by a semicolon (“;”) followed by the word “and”, and new subsection (c) hereby is added in its entirety to read as follows:
“(c)    solely with respect to any Credit Extension requested by Borrower on or after the Fifth Amendment Effective Date, Bank’s receipt of evidence satisfactory to Bank that at least eighty percent (80%) of Borrower’s domestic entity collections have been and continue to be deposited into the Collection Account pursuant to Section 2.4 hereof.”
7.With respect to Section 6.3 of the Agreement, the word “and” is hereby added to the end of subsection (e), the semicolon (“;”) and word “and” at the end of subsection (f) are hereby replaced by a period (“.”), and subsection (g) is hereby deleted in its entirety.
8.Exhibit D hereby is replaced in its entirety by Exhibit D attached hereto.
9.No course of dealing on the part of Bank or its officers, nor any failure or delay in the exercise of any right by Bank, shall operate as a waiver thereof, and any single or partial exercise of any such right shall not preclude any later exercise of any such right.  Bank’s failure at any time to require strict performance by any Borrower of any provision shall not affect any right of Bank thereafter to demand strict compliance and performance.  Any suspension or waiver of a right must be in writing signed by an officer of Bank.
10.Unless otherwise defined, all initially capitalized terms in this Amendment shall be as defined in the Agreement.  The Agreement, as amended hereby, shall be and remain in full force and effect in accordance with its respective terms and hereby is ratified and confirmed in all respects.  Except as expressly set forth herein, the execution, delivery, and performance of this Amendment shall not operate as a waiver of, or as an amendment of, any right, power, or remedy of Bank under the Agreement, as in effect prior to the date hereof.
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11.Each Borrower represents and warrants that immediately after giving effect to this Amendment, the Representations and Warranties contained in the Agreement are true and correct as of the date of this Amendment, and that no Event of Default has occurred and is continuing.  
12.As a condition to the effectiveness of this Amendment, Bank shall have received, in form and substance satisfactory to Bank, the following:
(i)this Amendment, duly executed by each Borrower;
(ii)Corporate Resolutions to Borrow, duly executed by each Borrower; and
(iii)all reasonable Bank Expenses incurred through the date of this Amendment, which may be debited from any account of RealNetworks.
13.This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument.
[Balance of Page Intentionally Left Blank]

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IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the first date above written.
						
		
		REALNETWORKS, INC. a Washington corporation
By: /s/ Michael Parham    
Name:    Michael Parham                
Title: SVP, General Counsel & Corp Secretary    

		RealNetworks Digital Music of California, Inc., a California corporation
By: /s/ Michael Parham    
Name:    Michael Parham                

Title: SVP, General Counsel & Corp Secretary    
Western Alliance Bank, an Arizona corporation
By: /s/ Kyle Leyendecker    
Name:    Kyle Leyendecker            
Title: EVP    

[Signature Page to Fifth Amendment to Loan and Security Agreement]
WEST\292533143.2EX-10.1

 

 
 Exhibit 10.1 

January 13, 2021 
 David Francisco 

Dear Dave, 
 This letter is to offer you the position of Chief
Financial Officer of Organogenesis Holdings Inc. (the “Company”), reporting to the Company’s Chief Executive Officer. This offer is contingent on completion of a satisfactory background and reference check. Your first day of
employment with the Company (your “Start Date”) is expected to be Monday, February 8, 2021. 
 The details of your offer are as
follows: 
 Base Salary: You will be paid a salary of $14,423.08 per pay period, which is equivalent to $375,000.00 per year, in accordance with the
Company’s standard bi-weekly payroll schedule and subject to review each year. This is an exempt position under the Fair Labor Standards Act. 

Short-Term Incentive: You will be eligible to participate in the Company’s annual executive management bonus program. Your annual target bonus is
50% of your base salary based on criteria set by the Board of Directors of the Company. Any bonus in respect of 2021 will be pro-rated based on your date of hire. 

Signing Bonus: The Company will pay you a signing bonus of $50,000.00, payable within two weeks of your Start Date. 

Withholding: All payments to you by the Company are subject to all applicable tax reporting and withholding requirements. 

Benefits: You will be eligible to participate in the Company’s benefit programs, subject to the terms and conditions of each plan. The
Company’s current benefit plans include, but are not limited to, the following: medical, dental, vision, flexible spending, executive life and AD&D, short and long-term disability, and tuition assistance. You will be eligible to participate
in the Company’s 401(k) Savings Plan on the first of the month after you complete three months of 

  

					
	 U.S.A. Corporate Headquarters
  

85 Dan Road | Canton, Massachusetts 02021 | United States
	 	  
 Phone: +1 781.575.0775
	 	  
 www.organogenesis.com

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service. Once eligible, you will be automatically enrolled into the 401(k) as soon as it’s administratively possible. You will receive paid Company holidays and sick time; and will accrue up
to four (4) weeks’ vacation per calendar year. 
 Equity: The Company will grant you on your Start Date (a) restricted stock units for
the Company’s common stock with a grant date fair value of $68,750.00 and vesting on the first anniversary of your Start Date and (b) stock options to purchase common stock of the Company with a grant date fair value of $206,250.00 and
vesting on the one year anniversary of your Start Date and with an exercise price per share equal to the fair market value of a share of the Company’s common stock on your Start Date. 

Other: Change in control benefits and annual equity grants will be consistent with the terms awarded by the Company to its other executives. 

Invention, Non-Disclosure and Non-Competition Agreement: You will be
required to execute and deliver to the Company the attached standard form of Invention, Non-Disclosure and Non-Competition Agreement, which contains provisions relating
to inventions, proprietary information and non-competition. 
 Work Authorization: The Immigration Reform and
Control Act requires employers to verify employment eligibility and identity of new employees. On your Start Date, you must provide the Company with appropriate documents to establish your eligibility to work in the United States (e.g., social
security card, driver’s license, U.S. passport). 
 Employment at Will: Your employment with the Company at all times will be at will, meaning
that you are not being offered employment for a definite period and that either you or the Company may terminate the employment relationship at any time for any reason. 

  
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 If the foregoing accurately sets forth our mutual understanding with respect to your employment with the
Company, indicate your acceptance by countersigning this letter and returning the following completed items to Human Resources: 
  

	•	 	 Original Offer Letter 

  

	•	 	 Non-disclosure/Non-compete

 We look forward to having you join our team! 

 

	
	Sincerely,
	
	/s/ Gary Gillheeney
	
	Name: Gary Gillheeney
	Title: President and Chief Executive Officer

  

	
	ACCEPTED
	
	/s/ David Francisco
	Name: David Francisco
	Date: January 15, 2021

 Enclosure 

  
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