Document:

Exhibit 10.36

 

	

    	
 
    	
Advised Line of Credit Note
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
$8,000,000.00
    
	
 
    	
 
    	
Date: February 14, 2011
    

 

Promise to Pay. On or before September 30, 2011, for value received, TANGOE, INC. (the “Borrower”) promises to pay to JPMorgan Chase Bank, N.A., whose address is 2 Corporate Drive, 7th Floor, Shelton, CT 06484 (the “Bank”) or order, in lawful money of the United States of America, the sum of Eight Million and 00/100 Dollars ($8,000,000.00) or so much thereof as may be advanced and outstanding, plus interest on the unpaid principal balance as provided below.

 

Interest Rate Definitions. As used in this Note, the following terms have the following respective meanings:

 

“Adjusted LIBOR Rate” means, with respect to a LIBOR Rate Advance for the relevant Interest Period, the sum of (i) the Applicable Margin plus (ii) the quotient of (a) the LIBOR Rate applicable to such Interest Period, divided by (b) one minus the Reserve Requirement (expressed as a decimal) applicable to such Interest Period.

 

“Adjusted One Month LIBOR Rate” means, with respect to a CB Floating Rate Advance for any day, the sum of (i) 2.50% per annum plus (ii) the quotient of (a) the interest rate determined by the Bank by reference to the Page to be the rate at approximately 11:00 a.m. London time, on such date or, if such date is not a Business Day, on the immediately preceding Business Day for dollar deposits with a maturity equal to one (1) month, divided by (b) one minus the Reserve Requirement (expressed as a decimal) applicable to dollar deposits in the London interbank market with a maturity equal to one (1) month.

 

“Advance” means a LIBOR Rate Advance or a CB Floating Rate Advance and “Advances” means all LIBOR Rate Advances and all CB Floating Rate Advances under this Note.

 

“Applicable Margin” means with respect to any CB Floating Rate Advance, 1.00% per annum and with respect to any LIBOR Rate Advance, 4.00% per annum.

 

“Business Day” means (i) with respect to the Adjusted One Month LIBOR Rate and any borrowing, payment or rate selection of LIBOR Rate Advances, a day (other than a Saturday or Sunday) on which banks generally are open in Connecticut and/or New York for the conduct of substantially all of their commercial lending activities and on which dealings in United States dollars are carried on in the London interbank market and (ii) for all other purposes, a day other than a Saturday, Sunday or any other day on which national banking associations are authorized to be closed.

 

“CB Floating Rate” means the Prime Rate; provided that the CB Floating Rate shall, on any day, not be less than the Adjusted One Month LIBOR Rate. The CB Floating Rate is a variable rate and any change in the CB Floating Rate due to any change in the Prime Rate or the Adjusted One Month LIBOR Rate is effective from and including the effective date of such change in the Prime Rate or the Adjusted One Month LIBOR Rate, respectively.

 

“CB Floating Rate Advance” means any borrowing under this Note when and to the extent that its interest rate is determined by reference to the CB Floating Rate.

 

“Interest Period” means, with respect to a LIBOR Rate Advance, a period of one (1), two (2) or three (3) month(s) commencing on a Business Day selected by the Borrower pursuant to this Note. Such Interest Period shall end on the day which corresponds numerically to such date one (1), two (2) or three (3) month(s) thereafter, as applicable, provided, however, that if there is no such numerically corresponding day in such first, second or third succeeding month(s), as applicable, such Interest Period shall end on the last Business Day of such first, second or third succeeding month(s), as applicable. If an Interest Period would otherwise end on a day which is not a Business Day, such Interest Period shall end on the next succeeding Business Day, provided, however, that if said next succeeding Business Day falls in a new calendar month, such Interest Period shall end on the immediately preceding Business Day.

 

“LIBOR Rate” means with respect to any LIBOR Rate Advance for any Interest Period, the interest rate determined by the Bank by reference to Reuters Screen LIBOR01, formerly known as Page 3750 of the Moneyline Telerate Service (together with any successor or substitute, the “Service”) or any successor or substitute page of the Service, providing rate quotations comparable to those currently provided on such page of the Service, as determined by the Bank from time to time for purposes of providing quotations of interest

 

 

rates applicable to dollar deposits in the London interbank market (the “Page”) to be the rate at approximately 11:00 a.m. London time, two Business Days prior to the commencement of the Interest Period for dollar deposits with a maturity equal to such Interest Period. If no LIBOR Rate is available to the Bank, the applicable LIBOR Rate for the relevant Interest Period shall instead be the rate determined by the Bank to be the rate at which the Bank offers to place U.S. dollar deposits having a maturity equal to such Interest Period with first-class banks in the London interbank market at approximately 11:00 a.m. (London time) two Business Days prior to the first day of such Interest Period.

 

“LIBOR Rate Advance” means any borrowing under this Note when and to the extent that its interest rate is determined by reference to the Adjusted LIBOR Rate.

 

“Prime Rate” means the rate of interest per annum announced from time to time by the Bank as its prime rate. The Prime Rate is a variable rate and each change in the Prime Rate is effective from and including the date the change is announced as being effective. THE PRIME RATE IS A REFERENCE RATE AND MAY NOT BE THE BANK’S LOWEST RATE.

 

“Principal Payment Date” is defined in the paragraph entitled “Principal Payments” below.

 

“Regulation D” means Regulation D of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor thereto or other regulation or official interpretation of said Board of Governors relating to reserve requirements applicable to member banks of the Federal Reserve System.

 

“Reserve Requirement” means the maximum aggregate reserve requirement (including all basic, supplemental, marginal and other reserves) which is imposed under Regulation D.

 

Interest Rates. The Advance(s) evidenced by this Note may be drawn down and remain outstanding as up to five (5) LIBOR Rate Advances and/or a CB Floating Rate Advance. The Borrower shall pay interest to the Bank on the outstanding and unpaid principal amount of each CB Floating Rate Advance at the CB Floating Rate plus the Applicable Margin and each LIBOR Rate Advance at the Adjusted LIBOR Rate. Interest shall be calculated on the basis of the actual number of days elapsed in a year of 360 days. In no event shall the interest rate applicable to any Advance exceed the maximum rate allowed by law. Any interest payment which would for any reason be deemed unlawful under applicable law shall be applied to principal.

 

Bank Records. The Bank shall, in the ordinary course of business, make notations in its records of the date, amount, interest rate and Interest Period of each Advance hereunder, the amount of each payment on the Advances, and other information. Such records shall, in the absence of manifest error, be conclusive as to the outstanding principal balance of and interest rate or rates applicable to this Note.

 

Notice and Manner of Electing Interest Rates on Advances. The Borrower shall give the Bank written notice (effective upon receipt) of the Borrower’s intent to draw down an Advance under this Note no later than 2:00 p.m. Eastern time, on the date of disbursement, if the full amount of the drawn Advance is to be disbursed as a CB Floating Rate Advance and no later than 11:00 a.m. Eastern time three (3) Business Days before disbursement, if any part of such Advance is to be disbursed as a LIBOR Rate Advance. The Borrower’s notice must specify: (a) the disbursement date, (b) the amount of each Advance, (c) the type of each Advance (CB Floating Rate Advance or LIBOR Rate Advance), and (d) for each LIBOR Rate Advance, the duration of the applicable Interest Period; provided, however, that the Borrower may not elect an Interest Period ending after the maturity date of this Note. Each LIBOR Rate Advance shall be in a minimum amount of Five Hundred Thousand and 00/100 Dollars ($500,000.00). All notices under this paragraph are irrevocable. By the Bank’s close of business on the disbursement date and upon fulfillment of the conditions set forth herein and in any other of the Related Documents, the Bank shall disburse the requested Advances in immediately available funds by crediting the amount of such Advances to the Borrower’s account with the Bank.

 

Conversion and Renewals. The Borrower may elect from time to time to convert one type of Advance into another or to renew any Advance by giving the Bank written notice no later than 2:00 p.m. Eastern time, on the date of the conversion into or renewal of a CB Floating Rate Advance and 11:00 a.m. Eastern time three (3) Business Days before conversion into or renewal of a LIBOR Rate Advance, specifying: (a) the renewal or conversion date, (b) the amount of the Advance to be converted or renewed, (c) in the case of conversion, the type of Advance to be converted into (CB Floating Rate Advance or LIBOR Rate Advance), and (d) in the case of renewals of or conversion into a LIBOR Rate Advance, the applicable Interest Period, provided that (i) the minimum principal amount of each LIBOR Rate Advance outstanding after a renewal or conversion shall be Five Hundred Thousand and 00/100 Dollars ($500,000.00); (ii) a LIBOR Rate Advance can only be converted on the last day of the Interest Period for the Advance; and (iii) the Borrower may not elect an Interest Period ending after the maturity date of this Note. All notices given under this paragraph are irrevocable. If the Borrower fails to give the Bank the notice specified above for the renewal or conversion of a LIBOR Rate Advance

 

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by 11:00 a.m. Eastern time three (3) Business Days before the end of the Interest Period for that Advance, the Advance shall automatically be converted to a CB Floating Rate Advance on the last day of the Interest Period for the Advance.

 

Interest Payments. Interest on the Advances shall be paid as follows:

 

A.            For each CB Floating Rate Advance, on the first day of each month beginning with the first month following disbursement of the Advance or following conversion of an Advance into a CB Floating Rate Advance, and at the maturity or conversion of the Advance into a LIBOR Rate Advance;

 

B.            For each LIBOR Rate Advance, on the last day of the Interest Period for the Advance and, if the Interest Period is longer than three months, at three-month intervals beginning with the day three months from the date the Advance is disbursed.

 

Principal Payments. All outstanding principal and interest is due and payable in full on September 30, 2011, which is defined herein as the “Principal Payment Date”.

 

Default Rate of Interest. After a default has occurred under this Note, whether or not the Bank elects to accelerate the maturity of this Note because of such default, all Advances outstanding under this Note, shall bear interest at a per annum rate equal to the interest rate being charged on each such Advance plus three percent (3.00%) from the date the Bank elects to impose such rate. Imposition of this rate shall not affect any limitations contained in this Note on the Borrower’s right to repay principal on any LIBOR Rate Advance before the expiration of the Interest Period for each such Advance.

 

Prepayment/Funding Loss Indemnification. The Borrower may prepay all or any part of any CB Floating Rate Advance at any time without premium or penalty.

 

The Borrower shall pay the Bank amounts sufficient (in the Bank’s reasonable opinion) to compensate the Bank for any loss, cost, or expense inclined as a result of:

 

A.            Any payment of a LIBOR Rate Advance on a date other than the last day of the Interest Period for the Advance, including, without limitation, acceleration of the Advances by the Bank pursuant to this Note or the other Related Documents; or

 

B.            Any failure by the Borrower to borrow or renew a LIBOR Rate Advance on the date specified in the relevant notice from the Borrower to the Bank.

 

Additional Costs. If any applicable domestic or foreign law, treaty, government rule or regulation now or later in effect (whether or not it now applies to the Bank) or the interpretation or administration thereof by a governmental authority charged with such interpretation or administration, or compliance by the Bank with any guideline, request or directive of such an authority (whether or not having the force of law), shall (a) affect the basis of taxation of payments to the Bank of any amounts payable by the Borrower under this Note or the other Related Documents (other than taxes imposed on the overall net income of the Bank by the jurisdiction or by any political subdivision or taxing authority of the jurisdiction in which the Bank has its principal office), or (b) impose, modify or deem applicable any reserve, special deposit or similar requirement (including, without limitation, Federal Deposit Insurance Corporation deposit insurance premiums or assessments) against assets of, deposits with or for the account of, or credit extended by the Bank, or (c) impose any other condition with respect to this Note or the other Related Documents and the result of any of the foregoing is to increase the cost to the Bank of extending, maintaining or funding any LIBOR Rate Advance or to reduce the amount of any sum receivable by the Bank on any Advance, or (d) affect the amount of capital required or expected to be maintained by the Bank (or any corporation controlling the Bank) and the Bank determines that the amount of such capital is increased by or based upon the existence of the Bank’s obligations under this Note or the other Related Documents and the increase has the effect of reducing the rate of return on the Bank’s (or its controlling corporation’s) capital as a consequence of the obligations under this Note or the other Related Documents to a level below that which the Bank (or its controlling corporation) could have achieved but for such circumstances (taking into consideration its policies with respect to capital adequacy) by an amount deemed by the Bank to be material, then the Borrower shall pay to the Bank, from time to time, upon request by the Bank, additional amounts sufficient to compensate the Bank for the increased cost or reduced sum receivable. Whenever the Bank shall learn of circumstances described in this section which are likely to result in additional costs to the Borrower, the Bank shall give prompt written notice to the Borrower of the basis for and the estimated amount of any such anticipated additional costs. A statement as to the amount of the increased cost or reduced sum receivable, prepared in good faith and in reasonable detail by the Bank and submitted by the Bank to the Borrower, shall be conclusive and binding for all purposes absent manifest error in computation.

 

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Illegality. If any applicable domestic or foreign law, treaty, rule or regulation now or later in effect (whether or not it now applies to the Bank) or the interpretation or administration thereof by a governmental authority charged with such interpretation or administration, or compliance by the Bank with any guideline, request or directive of such an authority (whether or not having the force of law), shall make it unlawful or impossible for the Bank to maintain or fund the LIBOR Rate Advances, then, upon notice to the Borrower by the Bank, the outstanding principal amount of the LIBOR Rate Advances, together with accrued interest and any other amounts payable to the Bank under this Note or the other Related Documents on account of the LIBOR Rate Advances shall be repaid (a) immediately upon the Bank’s demand if such change or compliance with such requests, in the Bank’s judgment, requires immediate repayment, or (b) at the expiration of the last Interest Period to expire before the effective date of any such change or request provided, however, that subject to the terms and conditions of this Note and the other Related Documents the Borrower shall be entitled to simultaneously replace the entire outstanding balance of any LIBOR Rate Advance repaid in accordance with this section with a CB Floating Rate Advance in the same amount.

 

Inability to Determine Interest Rate. If the Bank determines that (a) quotations of interest rates for the relevant deposits referred to in the definition of Adjusted LIBOR Rate are not being provided for purposes of determining the interest rate on a LIBOR Rate Advance as provided in this Note, or (b) the relevant interest rates referred to in the definition of Adjusted LIBOR Rate do not accurately cover the cost to the Bank of making, funding or maintaining LIBOR Rate Advances, then the Bank shall at the Bank’s option, give notice of such circumstances to the Borrower, whereupon (i) the obligation of the Bank to make LIBOR Rate Advances shall be suspended until the Bank notifies the Borrower that the circumstances giving rise to the suspension no longer exists, and (ii) the Borrower shall repay in full the then outstanding principal amount of each LIBOR Rate Advance, together with accrued interest, on the last day of the then current Interest Period applicable to the LIBOR Rate Advance, provided, however, that, subject to the terms and conditions of this Note and the other Related Documents, the Borrower shall be entitled to simultaneously replace the entire outstanding balance of any LIBOR Rate Advance repaid in accordance with this section with an Advance bearing interest at the CB Floating Rate plus the Applicable Margin for CB Floating Rate Advances in the same amount. If the Bank determines on any day that quotations of interest rates for the relevant deposits referred to in the definition of Adjusted One Month LIBOR Rate are not being provided for purposes of determining the interest rate on any CB Floating Rate Advance on any day, then each CB Floating Rate Advance shall bear interest at the Prime Rate plus the Applicable Margin for CB Floating Rate Advances until the Bank determines that quotations of interest rates for the relevant deposits referred to in the definition of Adjusted One Month LIBOR Rate are being provided.

 

Obligations Due on Non-Business Day. Whenever any payment under this Note becomes due and payable on a day that is not a Business Day, if no default then exists under this Note, the maturity of the payment shall be extended to the next succeeding Business Day, except, in the case of a LIBOR Rate Advance, if the result of the extension would be to extend the payment into another calendar month, the payment must be made on the immediately preceding Business Day.

 

Matters Regarding Payment. The Borrower will pay the Bank at the Bank’s address shown above or at such other place as the Bank may designate. Payments shall be allocated among principal, interest and fees at the discretion of the Bank unless otherwise agreed or required by applicable law. Acceptance by the Bank of any payment which is less than the payment due at the time shall not constitute a waiver of the Bank’s right to receive payment in full at that time or any other time.

 

Authorization for Direct Payments (ACH Debits). To effectuate any payment due under this Note or under any other Related Documents, the Borrower hereby authorizes the Bank to initiate debit entries to Account Number 935114660 at the Bank and to debit the same to such account. This authorization to initiate debit entries shall remain in full force and effect until the Bank has received written notification of its termination in such time and in such manner as to afford the Bank a reasonable opportunity to act on it. The Borrower represents that the Borrower is and will be the owner of all funds in such account. The Borrower acknowledges: (1) that such debit entries may cause an overdraft of such account which may result in the Bank’s refusal to honor items drawn on such account until adequate deposits are made to such account; (2) that the Bank is under no duty or obligation to initiate any debit entry for any purpose; and (3) that if a debit is not made because the above-referenced account does not have a sufficient available balance, or otherwise, the payment may be late or past due.

 

Late Fee. Any principal or interest which is not paid within 10 days after its due date (whether as stated, by acceleration or otherwise) shall be subject to a late payment charge of five percent (5.00%) of the total payment due, in addition to the payment of interest, up to the maximum amount of One Thousand Five Hundred and 00/100 Dollars ($1,500.00) per late charge. The Borrower agrees to pay and stipulates that five percent (5.00%) of the total payment due is a reasonable amount for a late payment charge. The Borrower shall pay the late payment charge upon demand by the Bank or, if billed, within the time specified.

 

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Purpose of Loan. The Borrower acknowledges and agrees that this Note evidences a loan for a business, commercial, agricultural or similar commercial enterprise purpose, and that no advance shall be used for any personal, family or household purpose. The proceeds of the loan shall be used only for the Borrower’s general corporate purposes.

 

Uncommitted Line of Credit. The Bank has approved an uncommitted line of credit to the Borrower in a principal amount not to exceed the lesser of (i) the Borrowing Base; and (ii) $8,000,000.00 (the “Line Amount”). In the event the outstanding principal balance under this Note at any time exceeds the Line Amount (the “Line Overadvance”), the Borrower agrees to immediately pay, without notice or demand by the Bank, an aggregate amount equal to the Line Overadvance, together with accrued and unpaid interest on the Line Overadvance. The execution and delivery of this Note and the acceptance by the Bank of this Note shall not be deemed or construed to create any contractual commitment to lend by the Bank to the Borrower. The line of credit is in the form of advances made from time to time by the Bank in its sole and absolute discretion to the Borrower. This Note evidences the Borrower’s obligation to repay those advances. Bank may refuse to make any loan at any time notwithstanding that no event of default has occurred or exists or that Bank has made loans hereunder under similar circumstances. Bank may, for any reason or no reason at all, refuse to make any loan under this Note. The Borrower has executed and delivered this Note to provide for the terms that must be met before Bank will consider making an advance to Borrower and for ease of administering Advances that Bank may in its sole discretion make to Borrower. The aggregate outstanding principal amount of debt evidenced by this Note is the amount so reflected from time to time in the records of the Bank.

 

General Definitions. As used in this Note, the following terms have the following respective meanings:

 

	
1.
    	
“Affiliate” means any Person which,   directly or indirectly, Controls or is Controlled by or under common Control   with, another Person, and any director or officer thereof. The Bank is under   no circumstances to be deemed an Affiliate of the Borrower or any of its   Subsidiaries.
    
	
 
    	
 
    
	
2.
    	
“Borrowing Base” means the amount stated as   the net available amount on the most recent Borrowing Base Certificate   submitted by Borrower to Bank, subject to verification by the Bank and   determination by the Bank at any time and calculated using the eligibility   criteria, borrowing base factors, dollar ceilings for various components and   any deductions specified in the Borrowing Base Certificate. The Bank may in   its sole discretion decline to make an advance when requested even if net   availability under the Borrowing Base then exists.
    
	
 
    	
 
    
	
3.
    	
“Borrowing Base Certificate” means the   report periodically submitted by the Borrower to the Bank in form acceptable   to the Bank.
    
	
 
    	
 
    
	
4.
    	
“Collateral” means all Property, now   or in the future subject to any Lien in favor of the Bank, securing or   intending to secure, any of the Liabilities.
    
	
 
    	
 
    
	
5.
    	
“Control” as used with respect to   any Person, means the power to direct or cause the direction of, the   management and policies of that Person, directly or indirectly, whether   through the ownership of Equity Interests, by contract, or otherwise.   “Controlling” and “Controlled” have meanings correlative thereto.
    
	
 
    	
 
    
	
6.
    	
“Equity Interests” means shares   of capital stock, partnership interests, membership interests in a limited   liability company, beneficial interests in a trust or other equity ownership   interests in a Person, and any warrants, options or other rights entitling   the holder thereof to purchase or acquire any such equity interest.
    
	
 
    	
 
    
	
7.
    	
“GAAP” means generally accepted   accounting principles in effect from time to time in the United States of   America, consistently applied.
    
	
 
    	
 
    
	
8.
    	
“Liabilities” means all debts,   obligations, and liabilities of every kind and character of the Borrower,   whether individual, joint and several, contingent or otherwise, now or   hereafter existing in favor of the Bank, including without limitation, all   liabilities, interest, costs and fees, arising under or from any note, open   account, overdraft, credit card, lease, Rate Management Transaction, letter   of credit application, endorsement, surety agreement, guaranty, acceptance,   foreign exchange contract or depository service contract, whether payable to   the Bank or to a third party and subsequently acquired by the Bank, any   monetary obligations (including interest) incurred or accrued during the   pendency of any bankruptcy, insolvency, receivership or other similar   proceedings, regardless of whether allowed or allowable in such proceeding,   and all renewals, extensions, modifications, consolidations, rearrangements,   restatements, replacements or substitutions of any of the foregoing.
    

 

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9.
    	
“Lieu” means any mortgage, deed   of trust, pledge, charge, encumbrance, security interest, collateral   assignment or other lien or restriction of any kind.
    
	
 
    	
 
    
	
10.
    	
“Obligor” means any Borrower,   guarantor, surety, co-signer, endorser, general partner or other Person who   may now or in the future be obligated to pay any of the Liabilities.
    
	
 
    	
 
    
	
11.
    	
“Person” means any individual,   corporation, partnership, limited liability company, joint venture, joint   stock association, association, bank, business trust, trust, unincorporated   organization, any foreign governmental authority, the United States of   America, any state of the United States and any political subdivision of any   of the foregoing or any other form of entity.
    
	
 
    	
 
    
	
12.
    	
“Pledgor” means any Person   providing Collateral.
    
	
 
    	
 
    
	
13.
    	
“Property” means any interest in any   kind of property or asset, whether real, personal or mixed, tangible or   intangible.
    
	
 
    	
 
    
	
14.
    	
“Rate Management Transaction” means any   transaction (including an agreement with respect thereto) that is a rate   swap, basis swap, forward rate transaction, commodity swap, commodity option,   equity or equity index swap, equity or equity index option, bond option,   interest rate option, foreign exchange transaction, cap transaction, floor   transaction, collar transaction, forward transaction, currency swap   transaction, cross-currency rate swap transaction, currency option,   derivative transaction or any other similar transaction (including any option   with respect to any of these transactions) or any combination thereof,   whether linked to one or more interest rates, foreign currencies, commodity   prices, equity prices or other financial measures.
    
	
 
    	
 
    
	
15.
    	
“Related Documents” means this   Note, all loan agreements, credit agreements, reimbursement agreements,   security agreements, mortgages, deeds of trust, pledge agreements,   assignments, guaranties, and any other instrument or document executed in   connection with this Note or in connection with any of the Liabilities.
    
	
 
    	
 
    
	
16.
    	
“Subsidiary” means, as to any   particular Person (the “parent”), a Person the accounts of which would be   consolidated with those of the parent in the parent’s consolidated financial   statements if such financial statements were prepared in accordance with GAAP   as of the date of determination, as well as any other Person of which fifty   percent (50%) or more of the Equity Interests is at the time of determination   directly or indirectly owned, Controlled or held, by the parent or by any   Person or Persons Controlled by the parent, either alone or together with the   parent.
    

 

Financial Reports. Furnish to the Bank whatever information, statements, books and records the Bank may from time to time reasonably request, including at a minimum:

 

A.            Within forty-five (45) days after each quarterly period, the consolidated financial statements of the Borrower and its Subsidiaries prepared and presented in accordance with GAAP, including a balance sheet as of the end of that period, and income statement for that period, and, if requested at any time by the Bank, statements of cash flow and retained earnings for that period, all certified as correct by one of its authorized agents.

 

B.            Within one hundred and eighty (180) days after and as of the end of each of its fiscal years, the consolidated financial statements of the Borrower and its Subsidiaries prepared and presented in accordance with GAAP, including a balance sheet and statements of income, cash flow and retained earnings, such financial statements to be reviewed by an independent certified public accountant of recognized standing satisfactory to the Bank.

 

C.            A Borrowing Base Certificate, along with such supporting documentation as the Bank may request, at the following times: (A) within twenty (20) days after and as of the end of each calendar month in which there was an outstanding advance of principal under this Note on the last day of such month, and (B) if no Borrowing Base Certificate has been provided or is otherwise due as of the end of the immediately preceding month, with any request for an advance under this uncommitted advised line of credit.

 

Bank’s Right of Setoff. The Borrower grants to the Bank a security interest in the Deposits, and the Bank is authorized to setoff and apply, all Deposits, Securities and Other Property, and Bank Debt against any and all Liabilities. This right of setoff may be exercised at any time and from time to time after the occurrence of any default, without prior notice to or demand on the Borrower and regardless of whether any Liabilities are contingent, unmatured or unliquidated. In this paragraph: (a) the term “Deposits” means any and all accounts and deposits of the Borrower (whether general, special, time, demand, provisional or final) at any time held by the Bank (including all Deposits held jointly with another, but excluding any IRA or Keogh Deposits, or any trust Deposits in which a security interest would be prohibited by law); (b)  the term “Securities and Other Property” means any and all securities and other 

 

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personal property of the Borrower in the custody, possession or control of the Bank, JPMorgan Chase & Co. or their respective Subsidiaries and Affiliates (other than Property held by the Bank in a fiduciary capacity); and (c) the term “Bank Debt” means all indebtedness at any time owing by the Bank, to or for the credit or account of the Borrower and any claim of the Borrower (whether individual, joint and several or otherwise) against the Bank now or hereafter existing.

 

Representations by Borrower. The Borrower represents and warrants that each of the following is and will remain true and correct until the later of maturity or the date on which all Liabilities evidenced by this Note are paid in full: (a) the execution and delivery of this Note and the performance of the obligations it imposes do not violate any law, conflict with any agreement by which it is bound, or require the consent or approval of any other Person; (b) this Note is a valid and binding agreement of the Borrower, enforceable according to its terms, except as may be limited by bankruptcy, insolvency or other laws affecting the enforcement of creditor’s rights generally and by general principles of equity; (c) all balance sheets, profit and loss statements, other financial statements and applications for credit furnished to the Bank in connection with the Liabilities are accurate and fairly reflect the financial condition of the Persons to which they apply on their effective dates, including contingent liabilities of every type, which financial condition has not materially and adversely changed since those dates; and, if the Borrower is not a natural Person: (i) it is duly organized, validly existing and in good standing under the laws of the state where it is organized and in good standing in each state where it is doing business; and (ii) the execution and delivery of this Note and the performance of the obligations it imposes (A) are within its powers and have been duly authorized by all necessary action of its governing body, and (B) do not contravene the terms of its articles of incorporation or organization, its by-laws, regulations or any partnership, operating or other agreement governing its organization and affairs.

 

Events of Default/Acceleration. If any of the following events occurs, this Note shall become due immediately, without notice, at the Bank’s option:

 

	
1.
    	
Any Obligor fails to pay when due any of the Liabilities or any other   debt to any Person, or any amount payable with respect to any of the   Liabilities, or under this Note, any other Related Document, or any agreement   or instrument evidencing other debt to any Person.
    
	
2.
    	
Any Obligor or any Pledger: (a) fails to observe or perform or   otherwise violates any other term, covenant, condition or agreement of any of   the Related Documents; (b) makes any materially incorrect or misleading   representation, warranty, or certificate to the Bank; (c) makes any   materially incorrect or misleading representation in any financial statement   or other information delivered to the Bank; or (d) defaults under the   terms of any agreement or instrument relating to any debt for borrowed money   (other than the debt evidenced by the Related Documents) and the effect of   such default will allow the creditor to declare the debt due before its   stated maturity.
    
	
3.
    	
In the event (a) there is a default under the terms of any   Related Document, (b) any Obligor terminates or revokes or purports to   terminate or revoke its guaranty or any Obligor’s guaranty becomes   unenforceable in whole or in part, (c) any Obligor fails to perform   promptly under its guaranty, or (d) any Obligor fails to comply with, or   perform under any agreement, now or hereafter in effect, between the Obligor   and the Bank, or any Affiliate of the Bank or their respective successors and   assigns.
    
	
4.
    	
There is any loss, theft, damage, or destruction of any Collateral   not covered by insurance.
    
	
5.
    	
Any event occurs that would permit the Pension Benefit Guaranty   Corporation to terminate any employee benefit plan of any Obligor or any   Subsidiary of any Obligor.
    
	
6.
    	
Any Obligor or any of its Subsidiaries or any Pledgor:   (a) becomes insolvent or unable to pay its debts as they become due;   (b) makes an assignment for the benefit of creditors; (c) consents   to the appointment of a custodian, receiver, or trustee for itself or for a   substantial part of its Property; (d) commences any proceeding under any   bankruptcy, reorganization, liquidation, insolvency or similar laws;   (e) conceals or removes any of its Property, with intent to hinder,   delay or defraud any of its creditors; (f) makes or permits a transfer   of any of its Property, which may be fraudulent under any bankruptcy,   fraudulent conveyance or similar law; or (g) makes a transfer of any of its   Property to or for the benefit of a creditor at a time when other creditors   similarly situated have not been paid.
    
	
7.
    	
A custodian, receiver, or trustee is appointed for any Obligor or any   of its Subsidiaries or any Pledgor or for a substantial part of their   respective Properly.
    
	
8.
    	
Any Obligor or any of its Subsidiaries, without the Bank’s written   consent: (a) liquidates or is dissolved; (b) merges or consolidates   with any other Person; (c) leases, sells or otherwise conveys a material   part of its assets or business outside the ordinary course of its business;   (d) leases, purchases, or otherwise acquires a material part of the   assets of any other Person, except in the ordinary course of its business; or   (e) agrees to do any of the foregoing; provided, however, that any   Subsidiary of an Obligor may merge or consolidate with any other Subsidiary   of that Obligor, or with the Obligor, so long as the Obligor is the survivor.
    
	
9.
    	
Proceedings are commenced under any bankruptcy, reorganization,   liquidation, or similar laws against any Obligor or any of its Subsidiaries   or any Pledgor and remain undismissed for thirty (30) days after   commencement; or any Obligor or any of its Subsidiaries or any Pledgor   consents to the commencement of those proceedings.
    

 

7

 

	
10.
    	
Any judgment is entered against any Obligor or any of its   Subsidiaries, or any attachment, seizure, sequestration, levy, or garnishment   is issued against any Property of any Obligor or any of its Subsidiaries or   of any Pledgor or any Collateral.
    
	
11.
    	
Any individual Obligor or Pledgor dies, or a guardian or conservator   is appointed for any individual Obligor or Pledgor or all or any portion of   their respective Property, or the Collateral.
    
	
12.
    	
Any material adverse change occurs in: (a) the reputation,   Property, financial condition, business, assets, affairs, prospects,   liabilities, or operations of any Obligor or any of its Subsidiaries;   (b) any Obligor’s or Pledgor’s ability to perform its obligations under   the Related Documents; or (c) the Collateral.
    

 

Remedies. If this Note is not paid at maturity, whether by acceleration or otherwise, the Bank shall have all of the rights and remedies provided by any law or agreement, in equity or otherwise. The Bank is authorized to cause all or any part of the Collateral to be transferred to or registered in its name or in the name of any other Person, with or without designating the capacity of that nominee. Without limiting any other available remedy, the Borrower is liable for any deficiency remaining after disposition of any Collateral. The Borrower is liable to the Bank for all reasonable costs and expenses of every kind incurred (or charged by internal allocation) in connection with the negotiation, preparation, execution, filing, recording, modification, supplementing and waiver of this Note or the other Related Documents and the making, servicing and collection of this Note or the other Related Documents and any other amounts owed under this Note or the other Related Documents, including without limitation reasonable attorneys’ fees and court costs. These costs and expenses include without limitation any costs or expenses incurred by the Bank in any bankruptcy, reorganization, insolvency or other similar proceeding.

 

Waivers. Each Obligor waives: (a) to the extent not prohibited by law, all rights and benefits under any laws or statutes regarding sureties, as may be amended; (b) any right to receive notice of the following matters before the Bank enforces any of its rights: (i) the Bank’s acceptance of this Note, (ii) any credit that the Bank extends to the Borrower, (iii) the Borrower’s default, (iv) any demand, diligence, presentment, dishonor and protest, or (v) any action that the Bank takes regarding the Borrower, anyone else, any Collateral, or any of the Liabilities, that it might be entitled to by law, under any other agreement, in equity or otherwise; (c) any right to require the Bank to proceed against the Borrower, any other Obligor, or any Collateral, or pursue any remedy in the Bank’s power to pursue; (d) any defense based on any claim that any endorser’s or other Obligor’s obligations exceed or are more burdensome than those of the Borrower; (e) the benefit of any statute of limitations affecting liability of any endorser or other Obligor or the enforcement hereof; (f) any defense arising by reason of any disability or other defense of the Borrower or by reason of the cessation from any cause whatsoever (other than payment in full) of the obligation of the Borrower for the Liabilities; (g) any and all rights to any prior notice or prior opportunity for a hearing that the Borrower may have under Sections 52-278a to 52-278n, inclusive, of the Connecticut General Statutes, as the same may be amended, or under any similar law whether state, federal or constitutional, that may be hereafter enacted; (h) any requirement for the posting of a bond and any right to request a court to require the Bank to post a bond in connection with any prejudgment remedy sought, it being the Borrower’s intent that in the event of any legal action between the Borrower and the Bank pertaining to this Note, the Bank may invoke any prejudgment remedy, without providing the Borrower with any prior notice or prior opportunity for a hearing and the Bank’s attorney is specifically authorized to issue a writ for any prejudgment remedy without prior court order; and (i) any defense based on or arising out of any defense that the Borrower may have to the payment or performance of the Liabilities or any portion thereof. Each Obligor consents to any extension or postponement of time of its payment without limit as to the number or period, to any substitution, exchange or release of all or any part of the Collateral, to the addition of any other Person, and to the release or discharge of, or suspension of any rights and remedies against, any Obligor. The Bank may waive or delay enforcing any of its rights without losing them. Any waiver affects only the specific terms and time period stated in the waiver. No modification or waiver of any provision of this Note is effective unless it is in writing and signed by the Person against whom it is being enforced. The Borrower acknowledges that it has made these waivers knowingly and voluntarily and after consideration of the ramifications of these waivers with its attorneys.

 

Cooperation. The Borrower agrees to fully cooperate with the Bank and not to delay, impede or otherwise interfere with the efforts of the Bank to secure payment from the Collateral including actions, proceedings, motions, orders, agreements or other matters relating to relief from automatic stay, abandonment of Property, use of cash Collateral and sale of the Collateral free and clear of all Liens.

 

Rights of Subrogation. Each Obligor waives and agrees not to enforce any rights of subrogation, contribution or indemnification that it may have against the Borrower, any other Obligor, or the Collateral, until the Borrower and such Obligor have fully performed all their obligations to the Bank, even if those obligations are not covered by this Note.

 

Reinstatement. The Borrower agrees that to the extent any payment or transfer is received by the Bank in connection with the Liabilities evidenced by this Note, and all or any part of the payment or transfer is subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be transferred or repaid by the Bank or transferred or paid over to a trustee, receiver or any other Person, whether under any bankruptcy act or otherwise (any of those payments or transfers is hereinafter referred to as a “Preferential Payment”), then this Note shall continue to be effective or shall be reinstated, as the case may be, even if all those 

 

8

 

Liabilities have been paid in full and whether or not the Bank is in possession of this Note, or whether the Note has been marked paid, released or canceled, or returned to the Borrower and, to the extent of the payment, repayment or other transfer by the Bank, the Liabilities or part intended to be satisfied by the Preferential Payment shall be revived and continued in full force and effect as if the Preferential Payment had not been made.

 

Governing Law and Venue. This Note shall be governed by and construed in accordance with the laws of the State of Connecticut (without giving effect to its laws of conflicts). The Borrower agrees that any legal action or proceeding with respect to any of its obligations under this Note may be brought by the Bank in any state or federal court located in the State of Connecticut, as the Bank in its sole discretion may elect. By the execution and delivery of this Note, the Borrower submits to and accepts, for itself and in respect of its property, generally and unconditionally, the non-exclusive jurisdiction of those courts. The Borrower waives any claim that the State of Connecticut is not a convenient forum or the proper venue for any such suit, action or proceeding.

 

Renewal and Extension. This Note is given in replacement, renewal and/or extension of, but not in extinguishment of the indebtedness evidenced by, that Advised Line of Credit Note dated September 15, 2010 executed by the Borrower in the original principal amount of Six Million and 00/100 Dollars ($6,000,000.00), including previous renewals or modifications thereof, if any (the “Prior Note” and together with all loan agreements, credit agreements, reimbursement agreements, security agreements, mortgages, deeds of trust, pledge agreements, assignments, guaranties, and any other instrument or document executed in connection with the Prior Note, the “Prior Related Documents”), and is not a novation thereof. All interest evidenced by the Prior Note shall continue to be due and payable until paid. The Borrower fully, finally, and forever releases and discharges the Bank and its successors, assigns, directors, officers, employees, agents, and representatives (each a “Bank Party”) from any and all causes of action, claims, debts, demands, and liabilities, of whatever kind or nature, in law or equity, of the Borrower, whether now known or unknown to the Borrower (i) in respect of the Liabilities evidenced by the Prior Note and the Prior Related Documents, or of the actions or omissions of any Bank Party in any manner related to the Liabilities evidenced by the Prior Note or the Prior Related Documents and (ii) arising from events occurring prior to the date of this Note. If applicable, all Collateral continues to secure the payment of this Note and the Liabilities. The provisions of this Note are effective on the date that this Note has been executed by all of the signers and delivered to the Bank.

 

Miscellaneous. If more than one Borrower executes this Note: (i) each Borrower is liable jointly and severally for the Liabilities evidenced by this Note; (ii) the term “Borrower” means any one or more of them; and (iii) the receipt of value by any one of them constitutes the receipt of value by the others. This Note binds the Borrower and its successors, and benefits the Bank, its successors and assigns. Any reference to the Bank includes any holder of this Note. Section headings are for convenience of reference only and do not affect the interpretation of this Note. Any notices and demands under or related to this Note shall be in writing and delivered to the intended party at its address stated herein, and if to the Bank, at its main office if no other address of the Bank is specified herein, by one of the following means: (a) by hand; (b) by a nationally recognized overnight courier service; or (c) by certified mail, postage prepaid, with return receipt requested. Notice shall be deemed given: (a) upon receipt if delivered by hand; (b) on the Delivery Day after the day of deposit with a nationally recognized courier service; or (c) on the third Delivery Day after the notice is deposited in the mail. “Delivery Day” means a day other than a Saturday, a Sunday, or any other day on which national banking associations are authorized to be closed. Any party may change its address for purposes of the receipt of notices and demands by giving notice of such change in the manner provided in this provision. This Note and the other Related Documents embody the entire agreement between the Borrower and the Bank regarding the terms of the loan evidenced by this Note and supercede all oral statements and prior writings relating to that loan. No delay on the part of the Bank in the exercise of any right or remedy waives that right or remedy. No single or partial exercise by the Bank of any right or remedy precludes any other future exercise of it or the exercise of any other right or remedy. No waiver or indulgence by the Bank of any default is effective unless it is in writing and signed by the Bank, nor shall a waiver on one occasion bar or waive that right on any future occasion. The rights of the Bank under this Note and the other Related Documents are in addition to other rights (including without limitation, other rights of setoff) the Bank may have contractually, by law, in equity or otherwise, all of which are cumulative and hereby retained by the Bank. If any provision of this Note cannot be enforced, the remaining portions of this Note shall continue in effect. The Borrower agrees that the Bank may provide any information or knowledge the Bank may have about the Borrower or about any matter relating to this Note or the Related Documents to JPMorgan Chase & Co., or any of its Subsidiaries or Affiliates or their successors, or to any one or more purchasers or potential purchasers of this Note or the Related Documents. The Borrower agrees that the Bank may at any time sell, assign or transfer one or more interests or participations in all or any part of its rights and obligations in this Note to one or more purchasers whether or not related to the Bank. Time is of the essence under this Note and in the performance of every term, covenant and obligation contained herein.

 

Government Regulation. The Borrower shall not (a) be or become subject at any time to any law, regulation, or list of any government agency (including, without limitation, the U.S. Office of Foreign Asset Control list) that prohibits or limits the Bank from making any advance or extension of credit to the Borrower or from otherwise conducting business with the Borrower, or (b) fail to provide documentary and other evidence of the Borrower’s identity as may be requested by the Bank at any time to enable the Bank to

 

9

 

verify the Borrower’s identity or to comply with any applicable law or regulation, including, without limitation, Section 326 of the USA Patriot Act of 2001, 31 U.S.C. Section 5318.

 

USA PATRIOT ACT NOTIFICATION. The following notification is provided to the Borrower pursuant to Section 326 of the USA Patriot Act of 2001, 31 U.S.C. Section 5318:

 

IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each Person that opens an account, including any deposit account, treasury management account, loan, other extension of credit, or other financial services product. What this means for the Borrower: When the Borrower opens an account, if the Borrower is an individual, the Bank will ask for the Borrower’s name, taxpayer identification number, residential address, date of birth, and other information that will allow the Bank to identify the Borrower, and if the Borrower is not an individual, the Bank will ask for the Borrower’s name, taxpayer identification number, business address, and other information that will allow the Bank to identify the Borrower. The Bank may also ask, if the Borrower is an individual, to see the Borrower’s driver’s license or other identifying documents, and if the Borrower is not an individual, to see the Borrower’s legal organizational documents or other identifying documents.

 

WAIVER OF SPECIAL DAMAGES. THE BORROWER WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT THE UNDERSIGNED MAY HAVE TO CLAIM OR RECOVER FROM THE BANK IN ANY LEGAL ACTION OR PROCEEDING ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES.

 

JURY WAIVER. THE BORROWER AND THE BANK (BY ITS ACCEPTANCE HEREOF) HEREBY VOLUNTARILY, KNOWINGLY, IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE (WHETHER BASED ON CONTRACT, TORT, OR OTHERWISE) BETWEEN THE BORROWER AND THE BANK ARISING OUT OF OR IN ANY WAY RELATED TO THIS NOTE OR THE OTHER RELATED DOCUMENTS. THIS PROVISION IS A MATERIAL INDUCEMENT TO THE BANK TO PROVIDE THE FINANCING EVIDENCED BY THIS NOTE.

 

	
 
    	
Borrower:
    
	
 
    	
 
    
	
 
    	
TANGOE, INC.
    
	
 
    	
 
    
	
Address:     35 Executive   Blvd. 
    	
By:   
    	
/s/   Gary R. Martino
    
	
 
    	
  Orange, CT 06477
    	
 
    	
 
    
	
 
    	
Gary R. Martino 
    	
Chief Financial Officer
    
	
 
    	
Printed Name 
    	
Title        
    
	
 
    	
 
    	
 
    
	
 
    	
Date signed:    February 14, 2011
    
					

 

10Exhibit 10.3

 

CHOICE MODEL MARKETING AGREEMENT

 

CHOICE MODEL MARKETING AGREEMENT (the “Agreement”), dated as of the 21st day of January, 2011, by and among (i) AFFINITY GROUP, INC., a Delaware corporation (“Affinity”), (ii) CAMPING WORLD, INC., a Kentucky corporation and CWI, Inc., a Kentucky corporation (“CWI”) and a wholly owned subsidiary of Camping World (together, “Camping World”), and (iii) GMAC INSURANCE MARKETING, INC., a Missouri corporation (the “GMACI Agency”).

 

WITNESSETH:

 

WHEREAS, National General Insurance Company, an Affiliate of the GMACI Agency (“NGIC”), and Affinity and certain of its Affiliates are parties to  certain agreements set forth under the heading “Existing Affinity Agreements” listed on Exhibit 1 hereto (the “Existing Affinity Agreements”);

 

WHEREAS, NGIC, Camping World and certain related parties are parties to certain agreements set forth under the heading Existing Camping World Agreements listed on Exhibit 1 hereto (the “Existing Camping World Agreements”);

 

WHEREAS, Affinity and Camping World, on the one hand, and NGIC, on the other hand, wish to terminate the Existing Affinity Agreements and the Existing Camping World Agreements and to establish a new arrangement and agreement, all on the terms set forth in this Agreement; and

 

WHEREAS, concurrent with the execution of this Agreement, each of NGIC, Affinity, Camping World and certain of their Affiliates are entering into a termination agreement to terminate the Existing Affinity Agreements and the Existing Camping World Agreements (the “Termination Agreement”).

 

NOW, THEREFORE, in consideration of the premises and of the respective representations, warranties, covenants, agreements and conditions contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

 

I

DEFINITIONS

 

As used herein, the following terms shall have the following meanings:

 

Affiliate.  When used with respect to any Person means any other Person which, directly or indirectly, controls, is controlled by or is under common control with such Person.  For purposes of this definition, “control” (including the correlative terms “controlling,” “controlled by” and “under common control with”), with respect to any Person, shall mean possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such

 

 

Person, whether through the ownership of voting securities or by contract or otherwise.  With respect to investment partnerships, to the extent the organizational documents thereof require or permit a distribution of assets to partners and others upon the liquidation or winding up of the investment partnership or otherwise, the term “Affiliate” shall include such partners and others.

 

Affinity.  See the first paragraph of this Agreement.

 

Affinity’s Confidential Information.  See Article X.1.

 

Affinity Members.  Members of any of the present or future affinity or other clubs or membership organizations, including the Good Sam Club, of Affinity or its subsidiaries other than Camping World.

 

Affinity Member Lists.  Lists of the Affinity Members maintained by Affinity or its subsidiaries.

 

Agency Commissions.  The commissions, profits, co-op dollars and all other payments made to the Good Sam Insurance Agency by the Carriers for Insurance and Insurance Products issued to Affinity Members and Camping World Customers through the Good Sam Insurance Agency as contemplated by this Agreement.

 

Annual Marketing Budget.  For any calendar year during the Term, the plan for marketing and the budget of marketing expenses to be incurred by the parties in connection with marketing and promoting the Branded Products during that year as established and agreed upon by the parties pursuant to Section V.4.

 

Branded Products.  Insurance or Insurance Products that bear, or are marketed or solicited, using a trade name, trademark, service mark, logo or slogan of Affinity, Camping World or any of their subsidiaries.

 

Camping World.  See the first paragraph of this Agreement.

 

Camping World Customers.  Customers of Camping World or its subsidiaries, including, without limitation, its catalogues, retail stores, other selling outlets and members of any of either of their present or future affinity or other clubs or membership organizations, including the President’s Club.

 

Camping World Customer Lists.  Lists of Camping World Customers maintained by Camping World and its subsidiaries.

 

Camping World Insurance Agencies.  See Section V.8.

 

Camping World’s Confidential Information.  See Article X.1.

 

Carrier.  An insurance company (other than the GMACI Carrier) that is licensed and authorized to issue Insurance and Insurance Products and that has entered into an agency agreement

 

2

 

with the Good Sam Insurance Agency to offer Insurance and Insurance Products through the Choice Platform.

 

Choice Platform.  The “choice model” program owned and operated by the Good Sam Insurance Agency through which Insurance and Insurance Products are marketed, offered and issued to Affinity Members and Camping World Customers pursuant to the terms of this Agreement.

 

Cross-Marketed Products.  See Section IV.3.

 

CWI.  See the first paragraph of this Agreement.

 

Direct Written Premiums.  For any period, gross premiums, less credits for premium cancellations and returns recorded and received by the GMACI Carrier during such period.

 

Effective Time.  See Section Article II.

 

Existing Affinity Agreements.  See the recitals of this Agreement.

 

Existing Affinity Policies.  See Article II.

 

Existing Affinity Policy Marketing Fee.  See Section VIII.3.

 

Existing Camping World Agreements.  See the recitals of this Agreement.

 

Existing Camping World Policies.  See Article II.

 

Existing Camping World Policy Marketing Fee.  See Section VIII.4.

 

First Cure Period.  See Section VI.2(b).

 

GMACI Agency.  See the first paragraph of this Agreement.

 

GMACI Carrier.  Each Affiliate of the GMACI Agency that is licensed and authorized to issue Insurance and Insurance Products and that has entered into an agency agreement with the Good Sam Insurance Agency to offer insurance through the Choice Platform.

 

Good Sam Insurance Agency.  The insurance agency operated by CWI or a successor insurance agency owned by Affinity or an Affiliate of Affinity.

 

Insurance and Insurance Products.  Any (i) automobile or recreational vehicle property and casualty insurance product, including Vehicle Coverage, homeowners insurance, motorcycle insurance, boat insurance, and personal umbrella insurance, but specifically excluding Warranty Coverage and roadside assistance services, and (ii) any other insurance products to which the parties mutually agree in writing should be included as Insurance and Insurance Products.

 

3

 

Launch.  The first date on which the Choice Platform is fully operational, which means that the GMACI Carrier and at least four (4) Carriers for RV Insurance, auto and homeowners Insurance and Insurance Products and at least two (2) Carriers for the other property and casualty Insurance and Insurance Products (such as motorcycle, boat and personal umbrella insurance) are “live” on the Choice Platform.

 

Management Standard.  See Section IV.6.

 

Marketing Expenses.  See Section V.5.

 

Marketing Fee.  See Section VIII.1(a).

 

Membership Publications.  The written publications and communication vehicles owned or operated by Affinity or Camping World or any of their subsidiaries where the primary recipients and readers are the Affinity Members or Camping World Customers, including, but not limited to, the Good Sam, Camping World and Rider publications.

 

Milestones.  See Article VII.

 

Multi-Policy Ratio.  See Exhibit 2.

 

New GMACI Carrier Policies.  See Section VIII.1(a).

 

NGIC.  See the Recitals of this Agreement.

 

Non-Membership Publications.  The written publications and communication vehicles owned or operated by Affinity or Camping World or any of their subsidiaries which are not Membership Publications.

 

Notice of Breach.  See Section II.2(b).

 

Performance Standards.  The standards and metrics of performance as set forth in Exhibit 2 attached hereto.

 

Person.  An individual, a corporation, a partnership, a joint venture, a limited liability company, a trust, an unincorporated organization or any other entity or organization, including a government, a political subdivision or an agency or instrumentality thereof, and shall include the plural thereof.

 

Point of Sale Materials.  The point of sale materials, retail flyers, catalogs and similar materials directed at the Affinity Members and Camping World Customers.

 

RV Insurance.  Vehicle Coverage for recreational vehicles.

 

Sales Conversion Ratio.  See Exhibit 2.

 

4

 

Second Cure Period.  See Section VI.2(b).

 

Service Fee.  See Section VIII.2.

 

Service Level Metrics.  See Exhibit 2.

 

Term.  See Section III.1.

 

Termination Agreement.  See the Recitals of this Agreement.

 

Vehicle Coverage.  Private passenger automobile liability and physical damage insurance coverages (which includes all insurance coverages reasonably related thereto, including, without limitation, comprehensive, collision, third party property damage and bodily injury liability coverages and personal injury protection).  Automobile includes private passenger automobiles, motorcycles and recreational vehicles, motor homes, travel trailers, minivans, sport utility vehicles, and other similar vehicles or items.  For the purpose of this Agreement, recreational vehicles or RVs include motor homes, travel trailers, 5th wheels, pop ups, and conversion vans.

 

Warranty Coverage.  Mechanical breakdown insurance and extended warranty or service contracts.

 

II

THE EFFECTIVE TIME

 

This Agreement shall become effective as of January 21, 2011 (the “Effective Time”).  As more specifically provided in the Termination Agreement, this Agreement shall supersede and replace the Existing Affinity Agreements and Existing Camping World Agreements in all respects and the term of each of the Existing Affinity Agreements and Existing Camping World Agreements shall be deemed to have expired at the Effective Time.  The parties agree, from time to time upon the request of any other party, to take such action, including delivery of documents or certificates, as is reasonably necessary to evidence the termination of the Existing Affinity Agreements and Existing Camping World Agreements and the parties agree to waive any and all terms and conditions that may have otherwise survived a termination of the Existing Affinity Agreements and Existing Camping World Agreements.  Notwithstanding the foregoing and as more specifically set forth under Sections VIII.3 and VIII.4 below, this Agreement shall apply to all policies in effect at the Effective Time under the Existing Affinity Agreements (the “Existing Affinity Policies”) and all policies in effect at the Effective Time under the Existing Camping World Agreements (the “Existing Camping World Policies”).

 

III

TERM AND TERMINATION

 

1.                                       Term.  The term of this Agreement (the “Term”) shall commence at the Effective Time and shall extend, without interruption except to the extent otherwise expressly provided in this Agreement, for a period of twenty-one (21) years.

 

5

 

2.                                       Termination.

 

(a)                                  Notwithstanding anything herein to the contrary, Affinity and Camping World, at either of their sole discretion and in accordance with the provisions of Section VI.3 hereof and Exhibit 2, shall have the right to terminate this Agreement at any time for failure to meet the Performance Standards.

 

(b)                                 In the event that either Affinity or Camping World, on the one hand, or the GMACI Agency, on the other hand, fails to perform any of its obligations under this Agreement and such breach is material, the non-breaching party may deliver a written notice (a “Notice of Breach”) describing such violation or nonperformance in reasonable detail.  The breaching party shall have thirty (30) days in which to cure the violation or non-performance described in the Notice of Breach; and if such party does not cure such violation or non-performance as aforesaid, the party delivering the Notice of Breach may terminate this Agreement as to the breaching party upon a further thirty (30) days’ written notice to the other party which termination shall take effect on the thirtieth (30th) day after delivery of such second notice.  In addition to or in place of delivery of notice of such termination, the non-breaching party may pursue at law or at equity any other rights or remedies (including specific performance) for any failure by the other party to perform any of its obligations hereunder.

 

3.                                       Effect of Expiration or Termination.  In the event of the expiration or termination of this Agreement, each party’s obligations for payment under this Agreement shall be as provided under Article VIII hereof.

 

IV

GOOD SAM INSURANCE AGENCY

 

1.                                       Choice Platform.  The Good Sam Insurance Agency shall implement and operate the Choice Platform, which Choice Platform will include (a) Insurance and Insurance Products underwritten by the GMACI Carrier, including the Branded Products, (b) Insurance and Insurance Products offered by other Carriers, and (c) Cross-Marketed Products (as defined in Section IV.3 below).  XXXXX  The Good Sam Insurance Agency shall offer Insurance and Insurance Products through a direct call center, online, the Camping World retail stores and other selling outlets, and such other means to which the parties may agree from time to time.  The Good Sam Insurance Agency shall manage the online marketing process for the Choice Platform.  Camping World shall manage the marketing efforts for the Choice Platform through the Camping World retail stores and other selling outlets.  Subject to the terms of this Agreement, the GMACI Agency shall operate the call center and shall manage the sales process through the call center and online, including all quoting, binding and rate presentation, and customer service as more specifically provided under Article VI hereof.

 

2.                                                                                       The Launch.  The parties intend that the Launch of the Good Sam Insurance Agency shall occur no later than January 1, 2012.  In connection with the Launch, the Good Sam Insurance Agency shall be responsible for (a) obtaining all licenses and permits as are required to sell, solicit and negotiate Insurance and Insurance Products in all 50 states and the District of Columbia, and (b) entering into appropriate agreements with each of the Carriers and the GMACI

 

6

 

Carrier no later than August 31, 2011.  In the event that the Good Sam Insurance Agency is unable to enter into the aforementioned agreements with the Carriers by August 31, 2011, the parties shall mutually agree upon a new date for the Launch.  The GMACI Agency shall be responsible for ensuring that the call center, sales process and customer service functions for the Good Sam Insurance Agency are fully operational by the Launch.  If the Launch has not occurred by January 1, 2012, the GMACI Agency shall pay Affinity a weekly penalty of $25,000 until the Launch has occurred; provided, however, that such penalty shall only be due if the Good Sam Insurance Agency was able to enter into the aforementioned agreements with the Carriers by August 31, 2011.  Upon occurrence of the Launch, the date of the Launch shall be confirmed in writing by the parties hereto.

 

3.                                       Products on the Choice Platform.  The Good Sam Insurance Agency shall market, quote and sell (a) the Insurance and Insurance Products and (b) Good Sam memberships and associated Affinity and Camping World products, and any other products that the parties hereto from time to time agree to market, quote and sell through the Choice Platform (collectively, the “Cross-Marketed Products”).  With respect to the offering of Good Sam memberships and associated Affinity and Camping World products, the compensation for selling such Cross-Marketed Products shall be on such terms and conditions as the parties mutually agree in writing as an amendment hereto.  To the extent the parties agree to offer any other Cross-Marketed Products on the Choice Platform, the terms and conditions, including compensation for selling such Cross-Marketed Products, shall be on such terms and conditions as the parties mutually agree in writing as an amendment hereto.

 

4.                                       Carriers. The Good Sam Insurance Agency shall select the Carriers and shall enter into customary agency agreements with the Carriers and the GMACI Carrier reflecting the arrangements contemplated in this Agreement, including Section V.5. below.  XXXXXXXXXXXXXXXXXXXX

 

5.                                       Renewal Rights.  The Good Sam Insurance Agency shall own and control all renewal rights and expirations on all Insurance and Insurance Products issued or sold through the Good Sam Insurance Agency, including to Affinity Members or Camping World Customers, and shall have the sole and exclusive right to customer relationships with policyholders of Insurance and Insurance Products contemplated under this Agreement, including Insurance and Insurance Products underwritten, written or issued by the GMACI Carrier.  If the GMACI Agency is party to any agency agreement with the GMACI Carrier that is inconsistent with this Section V.5., the GMACI Agency shall assign to the Good Sam Insurance Agency the renewal rights and expirations contemplated in this Section V.5.

 

6.                                       Management of the Good Sam Insurance Agency.  The business, property and affairs of the Good Sam Insurance Agency shall be managed exclusively by the Good Sam Insurance Agency, but with the guidance and advice of the GMACI Agency, Affinity and Camping World.  Management decisions for the Choice Platform shall be made based upon the mutual best interests of the Good Sam Insurance Agency, the GMACI Agency, Affinity, Camping World, the Affinity Members and Camping World Customers, always to the extent compliant with applicable law (the “Management Standard”).

 

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V

MARKETING OF INSURANCE AND INSURANCE PRODUCTS

 

1.                                       Promotion of the Good Sam Insurance Agency.  The Good Sam Insurance Agency shall be responsible for all efforts related to marketing and promotion of the Good Sam Insurance Agency and the Branded Products, including creative, printing, production, materials and other related services, and the Good Sam Insurance Agency may, at its sole discretion, engage third parties to perform such services.  Affinity, with respect to the Affinity Members, and Camping World, with respect to the Camping World Customers, shall lead, manage and execute marketing efforts and collaborate with the GMACI Agency regarding product positioning, legal disclaimers, XXXXX in all mailers, publications, advertisements and other written materials and during sales process and communications with Affinity Members and Camping World Customers.

 

2.                                       Exclusive Program.  The parties hereto agree that, during the Term hereof, the Choice Platform shall be the exclusive program for marketing, promoting, selling, soliciting and negotiating the Insurance and Insurance Products to the Affinity Members and Camping World Customers, including in the Camping World retail stores and other selling outlets.  All marketing, promoting, selling, soliciting and negotiating by the parties hereto of Insurance and Insurance Products to Affinity Members and Camping World Customers shall exclusively promote the Good Sam Insurance Agency and shall direct customers to go online or to call the Good Sam Insurance Agency to quote and purchase Insurance and Insurance Products.

 

3.                                       Preferred Status and Advertising.

 

(a)                                  The Branded Products will be given preferential status in all marketing and sales efforts to Affinity Members and Camping World Customers, including in all Membership and Non-Membership Publications, all Camping World retail stores and other selling outlets and all Point of Sale Materials.

 

(b)                                 Affinity and Camping World each agree, and agree to cause their subsidiaries, not to permit any other insurance carrier, including the Carriers, to advertise Insurance and Insurance Products in Affinity’s or Camping World’s Membership Publications, in any Camping World retail store or other selling outlets or in any Point of Sale Materials.  The Good Sam Insurance Agency will be the only Person permitted to advertise Insurance and Insurance Products in Affinity’s and Camping World’s Membership Publications, in all Camping World retail stores and other selling outlets and in all Point of Sale Materials; provided, however, that advertising by the Good Sam Insurance Agency may include references in those advertisements to the Carriers as participants in the Choice Platform and/or as one of the participating Carriers of the Good Sam Insurance Agency; provided, further, that any such materials clearly give preferential status to the Branded Products.

 

(c)                                  Carriers may separately advertise Insurance and Insurance Products in Affinity’s or Camping World’s Non-Membership Publications, but such advertisements shall not include references that the Carrier is a participant in the Choice Platform and/or is one of the participating Carriers of the Good Sam Insurance Agency unless the advertisements direct prospects and customers solely to the Good Sam Insurance Agency call center or website for all inquiries.  The Good Sam Insurance Agency shall have the right to review and approve all

 

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advertisements regarding Insurance and Insurance Products prior to their placement.  From time to time, the parties may mutually agree that other Carriers not be permitted to advertise in Non-Membership Publications.  Any such agreement shall be upon such terms and conditions, including compensation, as the parties mutually agree in writing as an amendment hereto.

 

4.                                       Branded Products.  The GMACI Carrier shall have the exclusive right to develop Branded Products with Affinity or Camping World, as applicable, using the “Affinity,” “Good Sam”, “Camping World”, “Rider” or other Affinity or Camping World proprietary name to which the parties may agree from time to time, and neither Affinity nor Camping World shall, and they each shall cause their subsidiaries and Affiliates not to, develop, any Branded Products with any other insurance carrier, including the Carriers.  Neither Affinity nor Camping World shall endorse any Branded Products to the Affinity Members and Camping World Customers other than those developed with the GMACI Carrier.  Notwithstanding the foregoing, Carriers participating in the Choice Platform may be identified as Good Sam Insurance Agency carriers in any and all communications, marketing collateral and the like.  Subject to the terms of this Agreement, Carriers will not be prohibited from independently, without the collaboration of Affinity or Camping World, as the case may be, developing Insurance and Insurance Products exclusively for Affinity Members or Camping World Customers or from offering discounts or special product benefits under the Carrier’s own brand name.

 

5.                                       Marketing Expenses.  Each of the GMACI Carrier, on the one hand, and Affinity and Camping World, on the other hand, shall XXXXXXX the marketing expenses, incurred in connection with the marketing activities provided for under this Article V, including, but not limited to, costs and expenses related to direct mail, advertising and outbound calls made in an effort to market and retain new and existing customers, modeling analytics (including model development and scoring fees), new creative and creative updates, but specifically excluding data processing expenses (the “Marketing Expenses”).  The portion of Marketing Expenses to be paid by Affinity and/or Camping World for any period shall be allocated to each such party in the same proportion as Marketing Fees (as defined in Section VIII.1) are paid to such party for that period.  XXXXXXXXXXX

 

6.                                       Marketing Budget.

 

(a)                                  Until the anticipated Launch, Affinity and Camping World, on the one hand, and the GMACI Agency, on the other hand, agree to continue to market at the 2011 plan or 2010 actual expense levels, consistent with the campaign break-even expenditure levels set forth in Exhibit 3 hereto and using the same or similar marketing materials as provided under the 2011 plan.  In the three (3) month period leading up to the anticipated Launch, the parties shall meet to develop the Annual Marketing Budget for the Good Sam Insurance Agency and the Choice Platform.

 

(b)                                 Within ninety (90) days prior to the beginning of each calendar year following the Launch, the parties shall prepare and agree, in accordance with the Management Standard, upon the Annual Marketing Budget for the following calendar year.  During any year, upon mutual consent, the parties may agree to modify the Annual Marketing Budget for such year.

 

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(c)                                  Camping World agrees to provide, as part of each Annual Marketing Budget:

 

(i)                                     reasonable rights of access to all Camping World stores for display or distribution of marketing materials and participation in on-site promotional events, provided that the location and prominence of such materials shall be reasonably determined by Camping World;

 

(ii)                                  space, as reasonably determined by Camping World, in Camping World catalogs for Good Sam Insurance Agency bind-in cards and other inserts; and

 

(iii)                               space for the promotion and marketing of the Branded Products in all President’s Club membership and renewal kits, and in all stand alone outserts in all President’s Club newsletters.

 

7.                                       Marketing Materials.  Affinity and Camping World, on the one hand, and the GMACI Agency, on the other hand, shall deliver to the other, for the other’s prior written approval, the forms of all documents and printed materials contemplated for distribution which refer to the other party or its Affiliates, including, in the case of the GMACI Agency, the GMACI Carrier, and shall not distribute any such form of document prior to its receipt of written approval thereof from the other party.  Each party hereto agrees that a party’s trade names, trademarks, service marks, logos and slogans used by such party shall remain the sole and exclusive property of such party, and that such trade names, trademarks, service marks, logos and slogans, shall be used by a party only after receiving prior written approval from the owning party, and then only in connection with the services to be provided pursuant to the terms of this Agreement.  No prior written approval required under this Section V.7. shall be unreasonably withheld or delayed and such prior written approval shall be deemed to have been given if the other party does not respond in writing within ten (10) business days after the form of document or other material to be approved has been delivered to the other party pursuant hereto.

 

8.                                       Camping World Insurance Agencies.

 

i.                        Within ninety (90) days after the Effective Time, and thereafter until the Launch, the GMACI Agency shall assume responsibility for the operation and management, and all reasonable costs and expenses associated therewith, of those certain insurance agencies currently operated and managed by Camping World (the “Camping World Insurance Agencies”); provided, however, that Camping World and the GMACI Agency shall XXXXXXXXXXXXXXXXXXXXX of the Marketing Expenses associated with the Camping World Insurance Agencies.

 

ii.                     Prior to the date on which the GMACI Agency assumes management of the Camping World Insurance Agencies, Camping World will continue to operate the Camping World Insurance Agencies and will continue to be responsible for all expenses of such operation and Camping World will retain all commissions and other payments received by the Camping World Insurance Agencies for policies written through such agencies.  For the period during which the GMACI Agency is operating the Camping World Insurance Agencies, the GMACI Agency and

 

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Camping World will XXXXXXXXXX in all agency commissions and other payments received by the Camping World Insurance Agencies for policies written with insurance carriers other than NGIC through the Camping World Insurance Agencies on both existing business and new business. Payment for policies written with NGIC shall be made in accordance with Section VIII.4 hereof.

 

iii.                  From and after the Launch, the policies written through the Camping World Insurance Agencies shall be written through the Good Sam Insurance Agency and Camping World agrees to take any and all such action, including delivery of any documents or certificates, as is reasonably necessary to transfer and assign such policies to the Good Sam Insurance Agency.  Commissions and other payments related to the renewals of these policies shall be as provided under Section VIII.1 hereof.

 

9.                                       Cooperation.  Each of Affinity, Camping World and the GMACI Agency shall designate an employee with decision-making authority to be available to the other party, by telephone or as otherwise agreed by the parties, to serve as a liaison with the other party for managing and overseeing the marketing and promotional activities contemplated by this Agreement.  Specifically, these employees shall work together in a spirit of cooperation to, among other things, establish the Annual Marketing Budget, develop Branded Products from time to time, review and agree to terms and conditions related to the marketing and sale of Cross-Marketed Products from time to time and to take such other actions as may be necessary or appropriate to consummate and effect completely the activities contemplated by this Agreement.

 

VI

CALL CENTER OPERATIONS; PERFORMANCE STANDARDS

 

1.                                       Call Center.

 

i.                        The GMACI Agency shall exclusively manage and be responsible for all call center operations.  Such responsibilities shall include, but not be limited to, (i) training and education associated with the Insurance and Insurance Products, including those of the Carriers, (ii) insurance services related to Insurance and Insurance Products underwritten, written or issued by the GMACI Carrier, including, without limitation, premium billing, claims adjustment, claims processing and handling of policy inquiries, changes and renewals and ongoing underwriting decisions, (iii) managing the sales process with prospective and existing policyholders, (iv) managing all quoting, binding and rate presentation, through the call center or online, and (v) customer service.  For the avoidance of doubt, the GMACI Agency shall have no responsibility with respect to premium billing, claims adjustment, claims processing, and ongoing underwriting decisions for Insurance and Insurance Products written by the Carriers, unless otherwise expressly negotiated with the Carrier.  The Good Sam Insurance Agency may provide guidance and advice with respect to such matters, including choice positioning, legal disclaimers, integration with marketing materials and training for any of the products sold through the Good Sam Insurance Agency.

 

ii.                     The GMACI Agency shall dedicate a group of sales agents within its call center to handle all Choice Platform calls and supply overflow capacity from additional non-dedicated

 

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sales agents as necessary, and Affinity agrees to cause the Good Sam Insurance Agency to make all necessary filings and take all action necessary to authorize these sales agents to transact business on the Good Sam Insurance Agency’s behalf.  The GMACI Agency agrees to perform such tests and refine such processes as it may deem reasonably necessary to ensure its satisfaction of the Performance Standards.

 

iii.                  The GMACI Agency agrees to expend a reasonable amount of research and development resources to refine and develop Insurance and Insurance Products, marketing strategies and operational procedures specifically designed for the sale of the Branded Products to Affinity Members and Camping World Customers.

 

iv.                 The GMACI Agency shall perform its duties and activities as provided in this Agreement in accordance in all material respects with applicable law.

 

2.                                       Performance Standards.  The GMACI Agency shall operate the call center in accordance with the Performance Standards as follows:

 

(a)                                  Measurement of the Performance Standards shall commence on the first day of the third (3rd) full month following the month of Launch.

 

(b)                                 The Multi-Policy Ratio and Sales Conversion Ratio shall each be measured on an annual basis following the Launch, as more specifically defined in Exhibit 2.  In the event that, following any such year, the GMACI Agency has failed to satisfy either the Multi-Policy Ratio or Sales Conversion Ratio, the GMACI Agency shall have ninety (90) days following written notification from Affinity during which to achieve, as the case may be, the prior year’s Multi-Policy Ratio or Sales Conversion Ratio, measured over such 90-day period (the “First Cure Period”).  If the GMACI Agency fails to cure the failure during the First Cure Period, the GMACI Agency shall then have an additional ninety (90) days to achieve, as the case may be, the current year’s Multi Policy Ratio or Sales Conversion Ratio, measured over such 90-day period (the “Second Cure Period”).  In the event the GMACI Agency fails to cure during such Second Cure Period, Affinity shall have the right to terminate this Agreement following ninety (90) days’ written notice to the GMACI Agency.

 

(c)                                  The Service Levels shall be measured each week following the Launch, as more specifically defined in Exhibit 2.  If the GMACI Agency fails to achieve the Service Levels for four (4) consecutive weeks on three (3) occasions during any twelve-month period, Affinity shall have the right to (i) terminate this Agreement upon ninety (90) days’ written notice to the GMACI Agency, or (ii) upon written notice to the GMACI Agency, receive a penalty fee from the GMACI Agency of XXXXXXXX for each succeeding week until the Service Levels are met.  Such penalty shall be paid in accordance with the provisions of Section VIII.6 hereof.  The foregoing notwithstanding, the GMACI Agency shall not be required to achieve the Service Levels for any week if the call volume during such week exceeds the forecasted volume as set forth in the Annual Marketing Budget by at least XXXXXXXX.  In addition, if, pursuant to Section V.6(b), the parties have modified the Annual Marketing Budget upward to cause an increase in call volume to be more than XXXXX higher than budgeted, the Service Levels shall be suspended for a period of sixty (60)

 

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days to enable the GMACI Agency to adjust its staffing and other arrangements to meet such modification.

 

VII

MILESTONES

 

As soon as commercially reasonable following the Effective Time, the parties shall establish milestones (the “Milestones”) for the Launch.  The Milestones shall be adopted in writing by the parties hereto and, upon execution by all parties, shall be incorporated in this Agreement as an exhibit.

 

VIII

FEES

 

1.                                       Marketing Fee.

 

(a)                                  In consideration of developing the Branded Products and the Good Sam Insurance Agency contemplated under this Agreement, the GMACI Agency shall pay or cause to be paid to the Good Sam Insurance Agency a fee (the “Marketing Fee”) on all Insurance and Insurance Products underwritten, written or issued by the GMACI Carrier during the Term of this Agreement (the “New GMACI Carrier Policies”).  The Marketing Fee payable with respect to Affinity Members shall be equal to XXXXXX of Direct Written Premiums for RV Insurance and XXXXX of the Direct Written Premium for all other Insurance and Insurance Products underwritten, written or issued by the GMACI Carrier to Affinity Members.  The Marketing Fee payable with respect to Camping World Customers shall be equal to XXXXXX of Direct Written Premiums for RV Insurance and XXXXX of the Direct Written Premium for all other Insurance and Insurance Products underwritten, written or issued by the GMACI Carrier to Camping World Customers.

 

(b)                                 The GMACI Agency will continue to pay the Marketing Fee to the Good Sam Insurance Agency or its designee following the expiration or termination of this Agreement with respect to the New GMACI Carrier Policies in existence on the date of expiration or termination of this Agreement for as long as the New GMACI Carrier Policies are in force.  Affinity and Camping World agree, and agree to cause each of its subsidiaries, including the Good Sam Insurance Agency, not to target and directly market the policyholders of the New NGIC Policies to replace the New GMACI Carrier Policies.  More specifically, Affinity and Camping World agree, and agree to cause each of its subsidiaries, including the Good Sam Insurance Agency, not to move the New GMACI Carrier Policies to another carrier (called a “book-roll”) unless the policyholder of the New GMACI Carrier Policy first initiates contact with the Good Sam Insurance Agency, requests quotes from other Carriers on the Choice Platform and opts to move to another Carrier. Following the termination or expiration of this Agreement, the Good Sam Insurance Agency may market other Insurance and Insurance Products to the policyholders of the New GMACI Carrier Policies following expiration or termination of this Agreement as long as the GMACI Carrier continues to be a carrier on the Choice Platform.

 

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(c)                                  In the event the GMACI Agency terminates this Agreement for material breach by either Affinity or Camping World, the GMACI Agency’s obligation to pay the Marketing Fees pursuant to this Section VIII.1 shall immediately terminate.

 

2.                                       Service Fee.  As a service fee (the “Service Fee”) to compensate the GMACI Agency for the call center management, sales, and management of other functions outsourced to it by the Good Sam Insurance Agency pursuant to this Agreement, Affinity shall cause the Good Sam Insurance Agency to pay the GMACI Agency XXXXXX of all Agency Commissions paid by the Carriers to the Good Sam Insurance Agency with respect to Insurance and Insurance Products underwritten, written or issued by the Carriers to Affinity Members or Camping World Customers.  The Service Fee shall be paid during the Term and will continue to be paid following expiration or termination of this Agreement for any reason for all Insurance and Insurance Products for which Agency Commissions are being paid on the date of expiration or termination of this Agreement as long as the Good Sam Insurance Agency continues to receive such Agency Commissions with respect to Insurance and Insurance Products underwritten, written or issued by Carriers to Affinity Members or Camping World Customers.

 

3.                                       Existing Affinity Policies.  For all Existing Affinity Policies, the GMACI Agency shall pay or cause to be paid to the Good Sam Insurance Agency or its designee a fee  (the “Existing Affinity Policy Marketing Fee”) as follows:

 

(a)                                  XXXXX of Direct Written Premiums for Vehicle Coverage, including RV Insurance, except as provided under Sections VIII.3(d) and (e) below;

 

(b)                                 XXXXX of Direct Written Premium for new policies and XXXXX of Direct Written Premium on renewal business for Insurance and Insurance Products written through independent agents;

 

(c)                                  XXXXX of Direct Written Premium for homeowner Insurance and Insurance Products written through Homesite, except that in the states of Connecticut, Louisiana, Michigan, Minnesota, New Jersey, New York and Tennessee, the fee is XXXXX of Direct Written Premium on new policies and XXXXX on renewals;

 

(d)                                 XXXXX of Direct Written Premium for mobile homes written through Homesite; and

 

(e)                                  XXXXX of Direct Written Premium for private passenger automobile, motorcycle and snowmobile Insurance and Insurance Products and RV Insurance written through Progressive.

 

If this Agreement is terminated at any time during the period of five (5) years from Launch due to the GMACI Agency failing to meet the Performance Standards, then for the period from the date of termination of this Agreement to the fifth (5th) anniversary of Launch, the GMACI Agency shall continue to pay the Existing Affinity Policy Marketing Fee to Affinity under this Section VIII.3 for each Existing Affinity Policy as long as that Existing Affinity Policy is in force.  The obligation of the GMACI Agency to pay the Existing Affinity Policy Marketing Fee for Existing Affinity

 

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Policies following the termination of this Agreement under this Section VIII.3 shall cease on the fifth (5th) anniversary of Launch.  Existing Affinity Policies will continue to renew, cancel and reinstate pursuant to NGIC standard processes and procedures. Affinity may cross-market through the Choice Platform to a policyholder of any Existing Affinity Policy Insurance and Insurance Products underwritten by the Carriers other than the type of policy held by such policyholder but Affinity agrees not to target and directly market the policyholders of the Existing Affinity Policies to replace the Existing Affinity Policies.  In the event the GMACI Agency terminates this Agreement for material breach by Affinity, the GMACI Agency’s obligation to pay the Existing Affinity Policy Marketing Fee for the Existing Affinity Policies shall terminate at the time of termination of this Agreement.

 

4.                                       Existing Camping World Policies.  For all Existing Camping World Policies, the GMACI Agency shall pay or cause to be paid to the Good Sam Insurance Agency or its designee a fee (the “Existing Camping World Policy Marketing Fee”) as follows:

 

(a)                                  XXXXX of Direct Written Premiums for Insurance and Insurance Products underwritten by NGIC or any of its Affiliates under the Existing Camping World Agreements;

 

(b)                                 XXXXX of Direct Written Premium for homeowner Insurance and Insurance Products written through Homesite, except that in the states of Connecticut, Louisiana, Michigan, Minnesota, New Jersey, New York and Tennessee, the fee is XXXXX of Direct Written Premium on new policies and XXXXX on renewals;

 

(d)                                 XXXXX of Direct Written Premium for Insurance and Insurance Products underwritten by Progressive through a direct call center operated by the GMACI Agency of any of its Affiliates as a result of a direct solicitation by NGIC or any of its Affiliates (except for boat and Texas full-timer RV Insurance the amount shall be XXXXX); and

 

(e)                                  XXXXX of Direct Written Premium for private passenger automobile and XXXXX for boat, motorcycle and snowmobile Insurance and Insurance Products and RV Insurance written through Progressive through Camping World licensed agents from leads generated from a Camping World retail store location or referred by Camping World employees or agents at Camping World retail store locations to the GMACI Agency or any of its Affiliates direct call center.

 

If this Agreement is terminated at any time during the period of five (5) years from Launch due to the GMACI Agency failing to meet the Performance Standards, then for the period from the date of termination of this Agreement to the fifth (5th) anniversary of Launch, the GMACI Agency shall continue to pay the Existing Camping World Policy Marketing Fee under this Section VIII.4 for each Existing Camping World Policy as long as that Existing Camping World Policy is in force.  The obligation of the GMACI Agency to pay the Existing Camping World Policy Marketing Fee for Existing Camping World Policies to Camping World following the termination of this Agreement under this Section VIII.3 shall cease on the fifth (5th) anniversary of Launch.  Existing Camping World Policies will continue to renew, cancel and reinstate pursuant to NGIC standard processes and procedures. Camping World may cross-market through the Choice Platform to a policyholder of any Existing Camping World Policy Insurance and Insurance Products underwritten

 

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by the Carriers other than the type of policy held by such policyholder but Camping World agrees not to target and directly market the policyholders of the Existing Camping World Policies to replace the Existing Camping World Policies.  In the event the GMACI Agency terminates this Agreement for material breach by Camping World, the GMACI Agency’s obligation to pay the Existing Camping World Policy Marketing Fee for the Existing Camping World Policies shall terminate at the time of termination of this Agreement.

 

5.                                       Reporting of Fees and Expenses and Payment.

 

(a)                                  Within thirty (30) days following the expiration of each month for which Marketing Fees, Existing Affinity Policy Marketing Fees or Existing Camping World Policy Marketing Fees are payable, the GMACI Agency shall remit payment, by wire transfer, to the Good Sam Insurance Agency or its designee as the case may be, the Marketing Fees, Existing Affinity Policy Marketing Fees and Existing Camping World Policy Marketing Fees earned for the prior month.

 

(b)                                 Within thirty (30) days following the expiration of each month for which Service Fees are payable, Affinity agrees to cause the Good Sam Insurance Agency to (i) transmit to the GMACI Agency an accounting of all Agency Commissions earned during the prior month and a report detailing the information set forth in Exhibit 4, and (ii) remit to the GMACI Agency, by wire transfer, the Service Fees earned for the prior month.

 

(c)                                  Following the expiration of any month during which Affinity or Camping World, as the case may be, incurs Marketing Expenses, Affinity or Camping World, as the case may be, shall transmit to the GMACI Agency an invoice setting forth the type of marketing activity, total cost of activity, the GMACI Agency portion of the Marketing Expenses, vendor, date of service and a copy of actual invoices received from any third-party vendors.  Within forty-five (45) days after receipt of such invoice, the GMACI Agency shall remit payment to Affinity by wire transfer.

 

6.                                       Survival. The provisions of this Article VIII shall survive expiration or termination of this Agreement for any reason.

 

7.                                       Right to Offset.  The GMACI Agency, on the one hand, and Affinity and Camping World, on the other hand, shall be entitled to set off any undisputed indebtedness, amounts or obligations owed by it to the other party against any and all undisputed indebtedness, amounts or other obligations owed to it by the other party.

 

IX

OTHER MARKETING AGREEMENTS

 

a.                                       Cross-Selling.  It is the intention of Affinity, Camping World and the GMACI Agency that they and their respective subsidiaries and Affiliates pursue other cross selling opportunities and that they reasonably compensate each other therefor on an actual volume basis.  Nothing in this Section IX.1. shall be deemed to require either party to make efforts on behalf of the other party outside of the normal course of its business or if such would interfere with the other party’s business or otherwise diminish the provisions of this Agreement.

 

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b.                                      Recreational Vehicle Business.  Each of Affinity, Camping World and the GMACI Agency agrees to collaborate in order to enhance the other’s business as relates to recreational vehicles.  Such collaboration may include the sharing of customer lists, reports and other database information, but only to the extent such party is legally entitled to do so.  The confidentiality provisions of Article X shall apply to each of the parties hereto and each of their respective Affiliates with respect to the information shared by the other party to the same extent they apply to the parties in Article X below.

 

X

CONFIDENTIALITY

 

1.                                       Affinity Member and Camping World Customer Information.  The GMACI Agency agrees that,  all lists, records and information relating to Affinity Members, and all marketing materials, information, techniques and renewal materials, in each case whether oral or written, and whether or not labeled as confidential by Affinity (collectively, “Affinity’s Confidential Information”) is confidential and proprietary to Affinity and shall be received in confidence by the GMACI Agency and the GMACI Agency will not use, disclose, reproduce or dispose of such information in any manner except as expressly provided herein.  Affinity agrees that, except to the extent included as part of Affinity’s Confidential Information, the marketing materials, information and techniques provided by the GMACI Agency to Affinity with respect to solicitations hereunder, and all other proprietary non-public information provided by the GMACI Agency to Affinity, whether oral or written, and whether or not labeled as confidential by the GMACI Agency, is confidential and proprietary to the GMACI Agency and will be received in confidence by Affinity, and Affinity will not use, disclose reproduce or dispose of such information in any manner except as provided herein.  At no time will the GMACI Agency solicit active or inactive Affinity Members or Camping World Customers for products or services without prior written approval from Affinity or Camping World, as applicable.  The GMACI Agency agrees that all lists, records and information relating to Camping World Customers, and all marketing materials, information, techniques and renewal materials, in each case whether oral or written, and whether or not labeled as confidential by Camping World (collectively, “Camping World’s Confidential Information”) is confidential and proprietary to Camping World and shall be received in confidence by the GMACI Agency and the GMACI Agency will not use, disclose, reproduce or dispose of such information in any manner except as expressly provided herein.  Camping World agrees that, except to the extent included as part of Camping World’s Confidential Information, the marketing materials, information and techniques provided by the GMACI Agency to Camping World with respect to solicitations hereunder, and all other proprietary non-public information provided by the GMACI Agency to Camping World, whether oral or written, and whether or not labeled as confidential by the GMACI Agency, is confidential and proprietary to the GMACI Agency and will be received in confidence by Camping World, and Camping World will not use, disclose reproduce or dispose of such information in any manner except as provided herein.  At no time will the GMACI Agency solicit active or inactive Camping World Customers for products or services without prior written approval from Camping World.

 

2.                                       Confidential Information.  The GMACI Agency hereby agrees on behalf of itself and each of its Affiliates and each of Affinity and Camping World hereby agrees on behalf of itself

 

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and each of its respective Affiliates that it has received, and may be receiving, from the other parties hereto information that is confidential and highly proprietary, which confidential and highly proprietary information may include customer lists, customer reports, reserve information, renewal information and other information relating to the business and operations of such other party and such party hereby agrees that it has kept, and will continue to keep, such confidential information confidential, and will use such information only as may be required to perform its obligations under this Agreement and it has not used, and it will not use, such information except as may otherwise be permitted under this Agreement (it being understood that such confidential information may be so disclosed to the extent necessary or required in order to comply with applicable law, rule or regulation or for legal, administrative or regulatory reasons or in order to enforce any rights hereunder).

 

3.                                       Employee Non-Solicitation.  During the Term, each party hereby agrees on behalf of itself and each of its Affiliates that it will not, directly or indirectly, solicit for employment or hire or retain any employee or advisor or agent of the other party or of the other party’s affiliates; provided that the foregoing provision will not prevent any solicitation of employment not specifically directed toward the other party’s or such other party’s affiliates employees, advisors or agents.

 

4.                                       Survival. Sections X.1 and X.2 shall survive expiration or termination of this Agreement for any reason.

 

XI

REPRESENTATIONS AND WARRANTIES

 

1.                                       Affinity and Camping World Representations and Warranties.  Each of Affinity and Camping World represents and warrants to the GMACI Agency, as follows:

 

(a)                                  the execution and delivery of this Agreement has been duly authorized and adopted by all necessary corporate action and it has full power and authority to enter into this Agreement and to consummate the transactions and perform its obligations contemplated hereby.

 

(b)                                 its obligations under this Agreement are legal, valid and binding obligations enforceable against it in accordance with its terms.

 

(c)                                  it is not a party to, or is bound by, any contractual agreement or instrument which would prevent or impede or restrict its performance under this Agreement.

 

(d)                                 prior to the Launch, the Good Sam Insurance Agency will have obtained such licenses and permits as are required to sell, solicit and negotiate property and casualty insurance in all 50 states and the District of Columbia.

 

(e)                                  during the Term hereof, it shall continue to maintain all licenses, permits and authorizations as are necessary in order for it to perform with its obligations hereunder and in performing its obligations under this Agreement, it will comply with all applicable laws and regulations applicable to it.

 

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(f)                                    during the Term hereof, it shall maintain insurance of the types and amounts as are reasonable and customary in consideration of its obligations hereunder.

 

2.                                       The GMACI Agency Representations and Warranties.  The GMACI Agency represents and warrants to each of Affinity and Camping World as follows:

 

(a)                                  the execution and delivery of this Agreement has been duly authorized and adopted by all necessary corporate action and it has full power and authority to enter into this Agreement and to consummate the transactions and perform its obligations contemplated hereby.

 

(b)                                 its obligations under this Agreement are legal, valid and binding obligations enforceable against it in accordance with its terms.

 

(c)                                  it is not a party to, or is bound by, any contractual agreement or instrument which would prevent or impede or restrict its performance under this Agreement.

 

(d)                                 during the Term hereof, it shall continue to maintain all licenses, permits and authorizations as are necessary in order for it to perform with its obligations hereunder and in performing its obligations under this Agreement, it will comply with all applicable laws and regulations applicable to it.

 

(e)                                  during the Term hereof, it shall maintain insurance of the types and amounts as are reasonable and customary in consideration of its obligations hereunder.

 

XII

TRADEMARKS AND OTHER INTELLECTUAL PROPERTY

 

Except as may be otherwise provided under this Agreement, neither party will make any use of trademarks, service marks, logos or other intellectual property owned by, licensed to or used by the other without first obtaining the other’s written consent, such consent not to be unreasonably withheld or delayed, except as otherwise provided herein.  All intellectual property owned by a party is and will remain the property of such party.  During the term of this Agreement, Affinity and Camping World hereby grant to the GMACI Agency a royalty-free license to use the name “Good Sam Insurance Agency” in connection with the services to be provided by the GMACI Agency pursuant to this Agreement.  At such time as the parties hereto develop the Branded Products, Affinity and Camping World each shall grant the GMACI Agency a royalty-free license to use the proprietary name chosen for such Branded Products in connection with the services to be provided by the GMACI Agency pursuant to this Agreement.

 

XIII

RECORDS AND REPORTS

 

Each party will maintain, for the period required by applicable law, records relating to its performance of its obligations under this Agreement, including all proofs of enrollment.  Each party, together with such party’s representatives, will have the right, at its sole expense, upon reasonable

 

19

 

 

 

notice to other party and during the other party’s normal business hours, to inspect and copy the other party’s data and records in order to verify that such other party’s performance hereunder has complied with its obligations under this Agreement, and such other party will cooperate to the extent reasonably requested in connection with any such inspection and copying.  During the Term and for such period after the Term for which Marketing Fees, Existing Affinity Policy Marketing Fees, Existing Camping World Marketing Fees or Service Fees, as applicable, are paid under Article VIII, each party shall provide to the other such information as is reasonably requested by any of the parties hereto regarding insurance marketing activities, Agency Commissions and the amount of Direct Written Premiums received for Insurance and Insurance Products as contemplated hereunder.  Reports containing such information shall be substantially in the form, and shall be supplied with such frequency, as may be mutually agreed by the parties hereto.

 

XIV

MISCELLANEOUS

 

1.                                       No Agency.  Except as expressly provided in this Agreement, neither the GMACI Agency, on the one hand, nor Affinity or Camping World, on the other hand, shall hold itself out as being the agent, representative, employee or the principal of any other party.  This Agreement does not make any party hereto the agent of the other, nor does it create a partnership, a consortium, an association, a joint venture, or any form of juristic person or entity.  Except as the parties may otherwise agree pursuant to separate agency or other agreements, no party hereto shall have any authority or right to assume or create obligations of any kind or nature, express or implied, on behalf of, or in the name of any other party, nor to accept service of any legal process of any kind addressed to or intended for any other party, nor to bind any other party in any respect, without the specific prior written authorization of such other party.

 

2.                                       Indemnification.  Each of Affinity and Camping World, on the one hand, and the GMACI Agency, on the other hand, agrees to indemnify and hold harmless the other party and the subsidiaries and Affiliates of the other party and its and their respective employees, officers, directors, shareholders and agents, from and against any and all claims, demands, losses, damages, liabilities, causes of action, judgments, awards, penalties, interest and costs and expenses (including, but not limited to, reasonable attorneys’ fees) arising out of, or resulting from, in whole or in part, the performance by the other party (or any of its or their respective employees, officers, directors, shareholders, agents, subsidiaries and Affiliates) of its respective obligations under this Agreement.  This Section XIV.2 shall survive expiration or termination of this Agreement for any reason.

 

3.                                       Assignment.  Neither Affinity or Camping World, on the one hand, nor the GMACI Agency, on the other hand, shall, directly or indirectly, sell, assign or transfer (other than a pledge, transfer or collateral assignment to or for the benefit of a lender) any of its rights or obligations contemplated under this Agreement without first obtaining the written consent of the other party; provided, however, that a party may assign its rights and obligations under this Agreement to an Affiliate following notice to the other parties.  This Agreement shall inure to the benefit of and be binding upon the parties, their permitted successors, trustees, assigns, receivers and legal representatives but shall not inure to the benefit of any other person or entity, except as specifically contemplated by Section XIV.3.

 

20

 

4.                                       Entire Agreement; Amendment.  This Agreement contains the entire and only agreement between the parties with respect to the subject matter hereof, and no oral statements or representations or prior written matter not contained herein or therein shall have any force or effect.  This Agreement may not be modified in any way except by a writing subscribed by the parties by their duly authorized representatives.  No amendment of this Agreement or its exhibits or schedules shall be of any force or effect unless reduced to writing and executed in writing by the parties.

 

5.                                       Notices.  All notices under this Agreement must be in writing and shall be delivered by (i) certified or registered mail, postage prepaid, return receipt requested, or (ii) nationally recognized overnight commercial courier or delivery service, or (iii) by facsimile transmission as follows:

 

To the GMACI Agency:

 

GMAC Insurance Marketing, Inc.

500 West 5th Street

Winston-Salem, NC 27101

Attention:  President

	
Telephone:
    	
(336)   435-2278
    
	
Facsimile:
    	
(336)   435-3757
    

 

With a copy to (which shall not constitute notice):

 

GMAC Insurance Marketing, Inc.
 59 Maiden Lane, 23rd Floor

New York, NY 10038

Attn:  General Counsel

Telephone:  (212) 380-9500

Facsimile:  (212) 380-9499

 

To Affinity:

 

Affinity Group, Inc.

2575 Vista Del Mar Drive

Ventura, CA  93001

Attention: President

	
Telephone:
    	
(805)   667-4100
    
	
Facsimile:
    	
(805)   667-4419
    

 

21

 

To Camping World:

 

Camping World, Inc.

250 Parkway Drive

Suite 320

Lincolnshire, IL 60069

Attention: President

	
Telephone:
    	
(847)   229-6457
    
	
Facsimile:
    	
(847)   557-1267
    

 

All notices, consents, waivers, and other communications under this Agreement shall be deemed to have been duly given when (a) delivered by hand (with written confirmation of receipt), (b) sent by facsimile (with written confirmation of receipt), , or (c) when received by the addressee, if sent by a nationally recognized overnight delivery service (receipt requested), in each case to the appropriate addresses and facsimile numbers set forth above (or to such other addresses and telecopier numbers as a party may designate by notice to the other party in accordance with the provisions of this Agreement).

 

6.                                       Governing Law.  This Agreement shall be governed by and construed and enforced in all respects according to the internal laws of the State of Delaware, determined without reference to conflict of law principles.

 

7.                                       Injunctive Relief.  The parties hereto recognize that a breach of Section X.1 or X.2 of this Agreement may cause irreparable injury and that damages at law would be difficult to ascertain.  The parties hereto therefore consent to the granting of equitable relief by way of a restraining order or temporary or permanent injunction by any court of competent jurisdiction to prohibit the breach or enforce the performance of the covenants thereof, in addition to any other remedies available at law or in equity.

 

8.                                       Severability.  In the event that any of the provisions of this Agreement are held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision thereof and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein and the parties hereto shall to the fullest extent possible modify any such provision to the extent required to carry out the general intention of this Agreement and to impart validity thereto.

 

9.                                       Waiver.  No forbearance, indulgence, or relaxation or inaction by any party at any time to require performance of any provisions of this Agreement shall in any way affect, diminish or prejudice the right of a party hereto to require performance of that provision and any waiver or acquiescence by any party hereto in any breach of any provision of this Agreement shall not be construed as a waiver or acquiescence in any continuing or succeeding breach of such provision, a waiver or an amendment of the provision itself or a waiver of any right under or arising out of this Agreement or acquiescence in or recognition of rights and/or positions other than as expressly stipulated in this Agreement.

 

10.                                 Counterparts.  This Agreement may be executed in any number of counterparts each of which shall be deemed to be an original and all of which shall constitute one and the same Agreement.

 

22

 

[The remainder of this page is intentionally blank.  Signature page follows.]

 

23

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first written above.

 

	
 
    	
AFFINITY GROUP, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Stephen Adams 
    
	
 
    	
 
    	
Name:   Stephen Adams 
    
	
 
    	
 
    	
Title:   Chairman
    
	
 
    	
 
    	
 
    
	
 
    	
CAMPING WORLD, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Stephen Adams 
    
	
 
    	
 
    	
Name:   Stephen Adams 
    
	
 
    	
 
    	
Title:   Chairman
    
	
 
    	
 
    	
 
    
	
 
    	
CWI, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Stephen Adams 
    
	
 
    	
 
    	
Name:   Stephen Adams 
    
	
 
    	
 
    	
Title:   Chairman
    
	
 
    	
 
    	
 
    
	
 
    	
GMAC   INSURANCE MARKETING, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Barry karfunkel
    
	
 
    	
 
    	
Name:   Barry karfunkel
    
	
 
    	
 
    	
Title:   Vice President
    

 

24

 

EXHIBIT 1

 

Existing Affinity Agreements

 

GOOD SAM CLUB

 

1.               Service Agreement between National General Insurance Company and Trailer Life Publishing Company Incorporated effective June 2, 1978, all Addendums and Amendments thereto and any and all Letters of Agreement pertaining thereto.

 

2.               Working Agreement between National General Insurance Company and Trailer Life Publishing Company Incorporated dated June 2, 1978, all Addendums and Amendments thereto and any and all Letters of Agreement pertaining thereto.

 

RIDER MOTORCYCLE PROGRAM

 

1.               Service Agreement between National General Insurance Company and Trailer Life Publishing Company Incorporated effective September 15, 1979, all Addendums and Amendments thereto and any and all Letters of Agreement pertaining thereto.

 

2.               Working Agreement between National General Insurance Company and Trailer Life Publishing Company Incorporated last dated October 5, 1979, all Addendums and Amendments thereto and any and all Letters of Agreement pertaining thereto.

 

COAST TO COAST

 

1.               Service Agreement between National Insurance Company and Coast to Coast Incorporated effective October 23, 1987, all Addendums and Amendments thereto and any and all Letters of Agreement pertaining thereto.

 

2.               Working Agreement between National Insurance Company and Coast to Coast Incorporated last dated October 23, 1987, all Addendums and Amendments thereto and any and all Letters of Agreement pertaining thereto.

 

3.               Profit Sharing Agreement between National Insurance Company and Coast to Coast Incorporated effective January 1, 1987, all Addendums and Amendments thereto and any and all Letters of Agreement pertaining thereto.

 

GOLF CARD

 

1.               Service Agreement between National General Insurance Company and GOLF CARD INTERNATIONAL, INC. last dated April 17, 1992, all Addendums and Amendments thereto and any and all Letters of Agreement pertaining thereto.

 

 

2.               Working Agreement between National General Insurance Company and GOLF CARD INTERNATIONAL, INC. last dated April 17, 1992, all Addendums and Amendments thereto and any and all Letters of Agreement pertaining thereto.

 

Existing Camping World Agreements

 

1.               Amended and Restated Marketing Agreement among Camping World, Inc.; CWI, Inc.; Camping World Insurance Services, Inc.; Camping World Insurance Services of Nevada, Inc.; Camping World Insurance Services of Texas, Inc.; Affinity Group Plans, Inc. and National Alliance Insurance Company; National General Insurance Company and National General Assurance Company dated as of May 15, 2002, all Addendums and Amendments thereto and any and all Letters of Agreement pertaining thereto.

 

 

EXHIBIT 2

 

Performance Standards

 

XXXXX

 

 

EXHIBIT 3

 

Computing Profit Break-Even

 

XXXXX

 

 

 

EXHIBIT 4

 

Choice Model Marketing Agreement

 

SAMPLE COMMISSIONS REPORT

1/01/2011 – 1/31/2011

 

Commissionable Written Premium

 

	
Producer 
   Code
    	
 
    	
Premium 
   State
    	
 
    	
Affinity 
   Plan
    	
 
    	
Commission
   Rate
    	
 
    	
New
    	
 
    	
Renewal
    	
 
    	
Endorsement
    	
 
    	
Cancelled
    	
 
    	
Total
    	
 
    	
Commissions
    	
 
    	
Ending 
   Policies 
   In 
   Force
    	
 
    	
Cancelled 
   Counts
    	
 
    	
New 
   Business 
   Counts

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00188-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00188-of-00352.parquet"}]]