Document:

Exhibit 4.2

LONG-TERM INCENTIVE PLAN No. 4

 

This Long-Term Incentive Plan No. 4 sets forth the rules applicable to the voluntary and revocable implementation of a long-term incentive plan to key-personnel of Zenvia Inc. and all of its controlled subsidiaries (each controlled subsidiary individually referred to as “Zenvia Group Company”, and Zenvia Inc. along with all of its controlled subsidiaries jointly referred to as “Zenvia Group”), to be paid in Class A common shares issued by Zenvia Inc. or in cash, pursuant to the concepts and criteria defined below (“ILP 4”). 

 

 

Section 1 –  Defined Terms

 

1.1.              In addition to the terms defined throughout this ILP 4, the terms in capital letter below shall have the meanings ascribed to them hereinafter:

 

	
“Restricted Shares”

	
means a certain number of Class A common shares issued by Zenvia Inc. to be delivered to the Participants, calculated as set forth in this ILP 4, pursuant to the conversion methodology and upon fulfillment of the conditions provided by this ILP 4.

	
 

	
 

	
“Board of Directors”

	
means the Board of Directors of Zenvia Inc.

	
 

	
 

	
“Granting Agreement”

	
means the Granting Agreement entered into by and between a Zenvia Group Company and the Participant, setting forth the inclusion of the Participant in ILP 4 and, when applicable, the specific terms and conditions of the rights provided by this ILP 4.

	
 

	
 

	
“Granting Base Date”

	
means May 5th, 2022.

	
 

	
 

	
“Participants”

	
means the Eligible Professionals to be defined by the Board of Directors to take part in this ILP 4.

	
 

	
 

	
“Level 1 Participants”

	
means ILP 4 Participants occupying the following positions: Director, Senior Manager, Manager, Advisor, or Consultant, or Strategic Employee (Grade 22 or lower).

	
 

	
 

	
“Level 2 Participants”

	
means ILP 4 Participants occupying the following positions: (i) CEO, VP or Executive Officer (Grades 23 to 27), or (ii) Business Line Owners (Grades 20 to 24).

	
 

	
 

	
“Vesting Period”

	
means the period of twenty-eight (28) months following the Granting Base Date.

	
 

	
 

	
“Strategic Employees”

	
means the Employees occupying Grade 16 to 22 positions who, according to the assessment and designation of the Board of Directors, (a)  perform roles critical to the Zenvia Group, with great impact to the business, and/or (b) for which roles one may not easily find qualified substitutes available in the market. 

	
 

	
 

	
Zenvia Inc.

	
means Zenvia Inc., a company duly organized and existing under the laws of the Cayman Islands, headquartered at Georgetown, Church Street, Ugland House, PO Box 309, Zipcode KY1-1104, which shares are authorized for trade in NASDAQ Stock Exchange (NASDAQ: ZENV).

 

	
 

	
 

Section 2 –  Premises of the Plan

 

2.1.         The premises of this ILP 4 are the following: 

	
a.

	
The ILP 4 shall be applicable to the Eligible Professionals of the Zenvia Group Companies that become Participants, upon approval by the Board of the Directors and any other required corporate approvals;

 

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b.

	
Joining the ILP 4 is voluntary and shall be formalized through the signature of the respective Granting Agreement by the Participant and Zenvia or the Zenvia Group Company to which the Participant is associated on the Granting Base Date;

	
c.

	
In the context of this ILP 4, the right to receive Restricted Shares shall be considered as having been assigned to the Participants on the Granting Base Date, regardless of the date in which the Zenvia Group Company and the Participant have entered into the Granting Agreement;

	
d.

	
The amount of Class A common shares of Zenvia Inc. to be issued in relation to this ILP 4 shall not exceed two hundred and forty thousand (240,000). In case of splitting or reverse splitting of shares issued by Zenvia Inc., the threshold shall be automatically adjusted in the same ratio of such splitting or reverse splitting.

	
e.

	
The rights derived from this ILP 4 assigned to the Participants are strictly personal and shall not be assigned or transferred for any reason, except for legitimate and/or testamentary heirs in case of the Participant’s demise, pursuant to Section 6.2 below;

	
f.

	
Joining this ILP 4 shall not impair the receipt by Participants of possible short-term incentives, such as annual bonuses or profit sharing plans of the Zenvia Group Company to which they are associated, or of other long-term incentives that have already been or will be granted to Participants by said Zenvia Group Company.

  

Section 3 –  Eligibility

 

3.1.         The Board of Directors shall define the employees and executives eligible to join the ILP 4 among the following: (a) those occupying the position of CEO, VP, Executive Officer, Business Line Owner (BLO), Senior Manager, Manager, Advisor or Consultant in a Zenvia Group Company on the Granting Base Date, (b) Strategic Employees, or (c) those who are hired or promoted to the positions described in item “(a)” above or defined as Strategic Employees within four (4) months from the Granting Base Date (except for specific cases defined by the Board of Directors) (“Eligible Professionals”). No Eligible Professional shall be granted a sure, certain, or acquired right to be selected to join the ILP 4. The Board of Directors shall choose the Participants among the Eligible Professionals.

 

3.1.1.        The number of Strategic Employees eligible to join the ILP 4 shall be limited to ten percent (10%) of the professionals associated with the Zenvia Group as Strategic Employees.

 

3.2.         The Participant that wishes to join the ILP 4 to which they have been elected shall enter into the respective Granting Agreement within the term determined by the Board of Directors. The execution of the Granting Agreement shall entail express, irrevocable, and irreversible acceptance by the Participant of all the terms of this ILP 4, to which the Participant is bound to comply.

 

3.3.         The payment of Restricted Shares to Participants in the context of this ILP 4 shall be subject to the maintenance of the employment or contractual relationship between the Participant and the Zenvia Group Company during the Vesting Period (except for the provision of Section 6.2 below), in addition to the fulfillment of all other applicable obligations and conditions set forth in this ILP 4. The execution of the Granting Agreement and the election to join this ILP 4 do not guarantee the Participants any rights over the Restricted Shares and do not represent a guarantee to receive them, and constitute a mere expectation of a right. Until the ownership of the shares issued by Zenvia Inc. is effectively transferred to the Participant, the Participant shall have no shareholder rights or privileges, including, without limitation, voting rights or rights to receive dividends in relation to the shares. 

 

 

Section 4 –  Granting Methodology

 

4.1.         Level 1 Participants. On the Granting Base Date, Level 1 Participants shall be granted the right to receive, upon completion of the Vesting Period and the fulfillment of the other conditions set forth in this ILP 4, as well as the execution of the Granting Agreement, a certain amount of Restricted Shares, calculated according to the criteria described in the following sections.

 

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4.1.1.       The amount of Restricted Shares attributed to each Level 1 Participant shall be calculated by multiplying the Participant’s monthly gross base salary as of March 31, 2022 (without any additional amounts, labor reflexes or benefits) by the multiple applicable to said position, pursuant to the table below (“Level 1 Amount”):

 

	
Position

	
Grade

	
Maximum Salary Multiple

	
Officer

	
22

	
6

	
Senior Manager / Advisor

	
21

	
3

	
Manager / Consultant

	
20

	
1

	
Strategic Employee

	
16-19

	
1

 

4.1.2.    The maximum multiples set forth in the table above shall be applicable to Level 1 Participants holding their respective positions on the Granting Base Date and that, therefore, are able to fully complete the Vesting Period. 

 

4.1.2.1.     For Level 1 Participants hired or promoted to their respective positions or defined as Strategic Employees after the Granting Base Date within four (4) months following the Granting Base Date (except for decisions by the Board of Directors regarding specific cases), the effective multiple shall be calculated using the following formula: 

 

Effective Multiple = Position Maximum Multiple x Effective Vesting ÷ Total Vesting

 

Where:

 

“Position Maximum Multiple” means the maximum multiple applicable to the position of the Level 1 Participant, pursuant to the table above;

 

“Total Vesting” means twenty-eight (28) months;

 

“Effective Vesting” means the number of months of the Vesting Period to be effectively fulfilled by the Level 1 Participant.

 

As an example, an Officer (whose Position Maximum Multiple is 6) hired or promoted to said position three (3) months following the Granting Base Date shall have an Effective Vesting of twenty-five (25) months, thus its Effective Multiple shall be calculated as follows:

 

Effective Multiple = 6 x 25 ÷ 28

 

Effective Multiple = 5,357

 

4.1.2.2.     For the calculation of the Effective Vesting in the context of this ILP 4, the following shall be observed: (a) for professionals hired and/or promoted up to the 15th day of each month, the whole month shall be considered, and (b) for professionals hired and/or promoted after the 15th day of each month, only the subsequent month onwards shall be considered.

 

4.1.3.     The Level 1 Amount calculated in Brazilian Reais pursuant to the Sections above shall be converted into Restricted Shares, considering a per Restricted Share value of R$ 75.728036 (US$ 14.27) – which corresponds to (i) the arithmetic average of the closing prices of Zenvia Inc. shares in the ninety (90) trading days following its debut in NASDAQ Stock Exchange, and (ii) the conversion rate of R$ 5.3068 Brazilian Real per US Dollar, pursuant to average of the PTAX-Venda Rate within the same period, as published by the Central Bank of Brazil.

 

4.1.4.     The total payment of the Restricted Shares shall be carried out within sixty (60) days following the end of the Vesting Period.  At the end of the Vesting Period, the Board of Directors may, at its sole discretion, pay the Restricted Shares to the Level 1 Participants in the following manners, in accordance with Section 4.4 below: 

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(i)

	
by means of the delivery of the amount of Class A common shares corresponding to the Restricted Shares owed to the Level 1 Participant, calculated pursuant to Section 4.1.3 above;

	
(ii)

	
in cash, by means of the payment of the amount, in Brazilian Reais, of the Restricted Shares, calculated on the final day of the Vesting Period, based on their closing price at NASDAQ Stock Exchange at that final day (or the immediately previous business day), converted by the PTAX-Venda Rate of the same day, as published by the Central Bank of Brazil; or

	
(iii)

	
by means of a mix of options (i) and (ii) above, pursuant to proportions set forth at discretion of the Board of Directors.

4.2.         Level 2 Participants. On the Granting Base Date, Level 2 Participants shall be granted the right to receive, upon completion of the Vesting Period and the fulfillment of the other conditions set forth in this ILP 4, as well as the execution of the Granting Agreement, a certain amount of Restricted Shares, calculated according to the criteria described in the following sections.

 

4.2.1.     The amount of Restricted Shares attributed to each Level 2 Participant shall be calculated by multiplying the Participant’s monthly gross base salary as of March 31, 2022 (without any additional amounts, labor reflexes or benefits) by the multiple applicable to said position, pursuant to the table below (“Level 2 Base Amount”):

 

	
Position

	
Grade

	
Maximum Salary Multiple

	
CEO

	
27

	
10

	
VP

	
25

	
10

	
Executive Officer

	
24

	
10

	
Executive Officer

	
23

	
10

	
Business Line Owner

	
20-24

	
1-10

 

4.2.2.     The same proportionality rule applicable to Level 1 Participants set forth in Section 4.1.2 above shall be applicable to the calculation of the salary multiples of Level 2 Participants, mutatis mutandis.

 

4.2.3.    Fixed Installment and Performance Adjustment. Upon fulfillment of the conditions set forth in this ILP 4 and in the respective Granting Agreements, Level 2 Participants shall have the right to receive a fixed installment of fifty percent (50%) of the Level 2 Base Amount in Restricted Shares. The remaining fifty percent (50%) of the Level 2 Base Amount shall be subject to the C-Level Performance Adjustment or to the BLO Performance Adjustment, depending on the position held by the Participant, pursuant to the following definitions and criteria.

	
4.2.3.1.

	
Performance Adjustment – CEO, VP and Executive Officers. Fifty percent (50%) of the shares to be distributed in the context of this ILP 4 to Level 2 Participants that hold the positions of CEO, VP or Executive Officer shall depend on the achievement of the Zenvia Group’s consolidated gross profit growth target defined by the Board of Directors for the Coverage Period (“C-Level Performance Adjustment”), pursuant to the following criteria:

 

	
a.

	
For the purpose of this ILP 4, the “Coverage Period” means the complete fiscal years of 2020, 2021, 2022 and 2023.

	
b.

	
At the end of the Coverage Period, the “Zenvia Performance Factor” applicable to the Restricted Shares of the Level 2 Participant subject to the C-Level Performance Adjustment shall be calculated pursuant to the targets listed in the table below. Intermediate values shall be calculated by interpolation, pursuant to the provisions of the Schedule I to this ILP 4 depicted in the chart below:

	
Performance Index

	
Below minimum threshold

	
Minimum Threshold

	
Target

	
Maximum threshold

	
Gross Profit Growth Target

	
> 80%

	
80%

	
100%

	
150%

	
Zenvia Performance Factor

	
0

	
50%

	
100%

	
225%

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Chart: Gross Profit Target in the Coverage Period vs. Zenvia Performance Factor

 

 

	
c.

	
For clarity’s sake, (i) if the Zenvia Group does not reach at least eighty percent (80%) of the gross profit growth target expected for the Coverage Period, the applicable Zenvia Performance Factor shall be zero – that is, the installment of Restricted Shares of the Level 2 Participant subject to the C-Level Performance Adjustment shall be nil –, and (ii) if the Zenvia Group exceeds one hundred and fifty percent (150%) of the gross profit growth target expected for the Coverage Period, the applicable Zenvia Performance Factor shall be two hundred and twenty-five percent (225%).

	
d.

	
The gross profit amounts used to calculate the percentage of the target met for the Coverage Period shall be extracted from the annual audited consolidated financial statements of Zenvia Group, and the gross profit targets for the Coverage Period shall be defined by the Board of Directors.

	
e.

	
In line with the provisions set forth in the Sections above, the effective number of Restricted Shares to be delivered to the Level 2 Participants that hold positions of CEO, VP and Executive Director in the context of this ILP 4 (“C-Level Effective Amount”) shall be calculated as follows:

C-Level Effective Amount = 
(Level 2 Base Amount x 50%) + (Level 2 Base Amount x 50% x Zenvia Performance Factor)

	
4.2.3.2.

	
Performance Adjustment – Business Line Owners. (ii) Twenty-five percent (25%) of the shares to be distributed in the context of this ILP 4 to Level 2 Participants that hold the position of BLO shall depend on the achievement of the Zenvia Group’s consolidated gross profit growth target) and (ii)  twenty-five percent (25%) of the shares to be distributed in the context of this ILP 4 to Level 2 Participants that hold the position of BLO shall depend on the achevement of their respective Business Line gross profit growth target, as defined by the Board of Directors for the Coverage Period (“BLO Performance Adjustment”), pursuant to the following criteria:

 

	
a.

	
The Zenvia Performance Factor shall be calculated pursuant to Section 4.2.3.1, items ‘b’, ‘c’ and ‘d’ above.

	
b.

	
At the end of the Coverage Period, the “BL Performance Factor” applicable to the Restricted Shares of the Level 2 Participant subject to the BLO Performance Adjustment shall be calculated pursuant to the targets listed in the table below. Intermediate values shall be calculated by interpolation, pursuant to the provisions of the Schedule I to this ILP 4 depicted in the chart below:

	
Performance Index

	
Below minimum threshold

	
Minimum Threshold

	
Target

	
Maximum threshold

	
Gross Profit Growth Target

	
> 80%

	
80%

	
100%

	
150%

	
BL Performance Factor

	
0

	
50%

	
100%

	
225%

 

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Chart: Gross Profit Target in the Coverage Period vs. BL Performance Factor

 

 

	
c.

	
For clarity sake, (i) if the Business Line does not reach at least eighty percent (80%) of the gross profit growth target expected for the Coverage Period, the applicable BL Performance Factor shall be zero – that is, the installment of Restricted Shares of the Level 2 Participant subject to the BLO Performance Adjustment shall be nil –, and (ii) if the Business Line exceeds one hundred and fifty percent (150%) of the gross profit growth target expected for the Coverage Period, the applicable BL Performance Factor shall be two hundred and twenty-five percent (225%).

	
d.

	
In line with the provisions set forth in the Sections above, the effective number of Restricted Shares to be delivered to the Level 2 Participants that hold positions of BLO in the context of this ILP 4 (“BLO Effective Amount”) shall be calculated as follows:

BLO Effective Amount = 
(Level 2 Base Amount x 50%) + (Level 2 Base Amount x 25% x Zenvia Performance Factor) + 
(Level 2 Base Amount 2 x 25% x BL Performance Factor)

 

4.2.4.         The C-Level Effective Amount and the BLO Effective Amount shall be calculated in Brazilian Reais pursuant to Section 4.1.3 below.

 

4.2.5.        Upon completion of the Vesting Period, the Zenvia Group Company shall pay the Restricted Shares to the Level 2 Participants or in the other manners set forth in Section 4.1.4 above.

 

4.3.         Restrictions on Trading. The Class A common shares issued by Zenvia Inc. delivered to the Participants in the context of this ILP 4 may not be transferred or assigned to third parties, whether free of charge or not, in private negotiation or stock market, for a period of one hundred and eighty (180) days following its definitive delivery to said Participant, except if (i) said shares have been duly registered for trading with the Securities and Exchange Commission (“SEC”), or (ii) the applicable legislation provides a specific waiver allowing the transference or assignment of such shares without its registration with the SEC. In any case, the trade of such Class A common shares shall be subject to the provisions of the Zenvia Group Policies and Procedures for Trading in Securities.

 

4.3.1.   Notwithstanding the provision above, when the payment of Restricted Shares involves the delivery of shares issued by Zenvia Inc. to the Participants, the Board of Directors may (i) establish and disclose fixed terms for the Participants to receive the shares to which they are entitled, (ii) establish at any time, additional restrictions for the receipt of shares in dates that precede the disclosure of material facts, including dates that precede the closing of the fiscal year and the publishing of financial statements and quarterly or annual results, decisions of capital increase, dividends distributions, distribution of bonus shares, share splits and the publishing of the respective public notices thereto, as well as other dates in which the Board of Directors deems the temporary suspension of the delivery of shares to Participants to be reasonable, and (iii) determine that the sale of Class A common shares received by the Participants in the context of this ILP 4 be carried out according to a sale plan to be established in agreement between the Participant and Zenvia Group’s Investor Relations Office, in order to avoid a negative impact on the price of the Zenvia Inc. shares.

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4.4.         Taxes. The Zenvia Group Company and the Participants shall be liable for the taxes levied on the operations set forth in this ILP 4 according to the applicable law. If required by the applicable law , the Zenvia Group Company shall withhold the taxes owed by the Participant and pay the amount of Restricted Shares net of said taxes. For clarity’s sake, when the Zenvia Group Company withholds at source the taxes owed by the Participant and the payment of Restricted Shares is carried out by means of the delivery of Class A common shares issued by Zenvia Inc., the amount of shares delivered to the Participants shall correspond to the amount of the Restricted Shares net of the value of the withheld taxes.

 

Section 5 –  Specific Conditions and Amendments

 

5.1.         The Board of Directors shall be entitled, in specific cases, to (a) reduce the Vesting Period or dismiss the fulfillment of the Vesting Period by the Participant, (b) reserve repurchase options and/or pre-emption rights to Zenvia Inc. in relation to Class A common shares issued in the context of this ILP 4, (c) review and change Zenvia Group’s or Business Lines’ gross profit growth targets established for the Coverage Period, (d) amend (including with regard to the formula set forth in Section 4 above) or, as applicable, extinguish this ILP 4 before the end of the Vesting Period in order to preserve the financial stability of the Zenvia Group.

 

5.2.           Any amendments to the SEC and NASDAQ Stock Exchange regulationsapplicable to Zenvia Inc., as well as to any other material legislative or case-law amendments related to public companies, to labor laws and/or to the tax effects of the grant of restricted shares to employees under incentive plans, in Brazil, in the Cayman Islands or in any jurisdiction in which the Zenvia Group conducts business, may lead to the complete revision or extinction of this ILP 4.

 

5.3.          Notwithstanding the provisions of Sections 5.1 and 5.2 above, this ILP 4 may be updated, amended, reviewed, or cancelled at the sole discretion of the Board of Directors without the approval of the Participants, provided that any rights acquired upon completion of the Vesting Period shall be preserved. 

 

 

Section 6 –  Termination of a Participant’s Agreement; Suspension and Loss of Rights

 

6.1.          If any Participant, prior to the completion of the Vesting Period (a) is dismissed or removed from its position with cause, (b) voluntarily retires, or (c) quits or resigns his/her respective position by personal initiative, said Participant shall lose the right to receive the Restricted Shares to which they would be entitled to in the context of this ILP 4.

 

6.2.          If any Participant, prior to the completion of the Vesting Period, (a) is dismissed or removed from its position without cause, (b) is stricken with supervenient civil incapacity or retires due to invalidity, or (c) deceases, the right of said Participant to receive the Restricted Shares shall be preserved (or of its legal and/or testamentary heirs, as applicable in case of demise), proportionally to the period of the Vesting Period effectively completed from the execution of the respective Granting Agreement to the date of the termination, being ascertained that the other rules applicable to the calculation of the amount of Restricted Shares to be delivered and the applicable trade restrictions set forth in this ILP, as well as the provisions of Section 6.6 below.

 

6.3.        For the purpose of this ILP 4, “Cause” means (a) any of the causes set forth in Article 482 of the Brazilian Consolidation of Labor Laws, (b) proven violation (i) of material duties and obligations set forth in the employment agreement or in the service agreement of the Participant, pursuant to the applicable law, (ii) of the Memorandum and Articles of Association of Zenvia Inc., of Zenvia’s bylaws, of the bylaws or articles of association of the Zenvia Group Companies, as applicable, and of Zenvia Group applicable corporate policies, especially (but without limitation) the Zenvia Group’s Code of Ethics and Conduct and Anti-Corruption and Anti-Bribery Policy, and (iii) fiduciary duties applicable to officers set forth in the applicable law, if the Participant occupies a position of officer of Zenvia or a Zenvia Group Company, and (c) first instance conviction for the practice of any crimes set forth in Brazilian law.

 

6.4.          If any of the facts listed in Section 6.3 above take place after the end of the Vesting Period, the rights granted to the Participants in the Context of this ILP 4 shall not be modified, except in case of a just cause dismissal due to a fact which has provenly taken place before the end of the Vesting Period.

 

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6.5.          The granting of the rights derived from this ILP 4 shall be immediately suspended in relation to any Participant that becomes formally investigated, indicted, cited, or summoned in investigative, administrative, or judicial proceedings aimed at ascertaining the practice of illegal acts by the Participant involving Zenvia, a Zenvia Group Company or Zenvia Inc. or any crimes set forth by the applicable law. The suspension shall be lifted upon definitive absolution of the Participant.

6.6.         In case of demise or supervenient civil incapacity, notwithstanding the moment it takes place, the payment of the Restricted Shares to which the deceased or incapable Participated is entitled shall be carried out to the legitimate person that provenly represents interests of the Participant’s estate. If proof is not presented within one (1) year following the date of the agreement termination event, the rights of the deceased or incapable Participant to the Restricted Shares issued in the context of this ILP 4 shall be lost.  

 

Section 7 –  Term

 

7.1.           This ILP 4 shall be in effect for an indeterminate term.

 

Section 8 –  Miscellaneous

 

8.1.           Any cases not covered by this ILP 4 shall be regulated by the Board of Directors.

 

8.2.          If, for any reason, any provision of this ILP 4 is deemed to be invalid, illegal, or ineffective, the invalidity, illegality and ineffectiveness shall be restricted to such disposition, and the validity, legality, and effectiveness of the remaining provisions of this ILP 4 shall not be affected in any way. 

 

8.3.           This ILP 4 shall be governed and interpreted pursuant to the laws of the Cayman Islands. Any disputed between Participants and Zenvia regarding this ILP 4 shall be resolved pursuant to the Granting Agreement.

 

8.4.          The existence of this ILP 4 or of the Granting Agreements shall not prevent or undermine any operation involving, directly or indirectly, whether free of charge or not, totally or partially, shares issued by Zenvia Inc. or any Zenvia Group Company (including, without limitation, corporate restructuring operations such as transformation, incorporation, merger, demerger or transference of share interest, with or without change of control, or delisting), and carrying out said operations shall not depend on prior or latter approval by any Participant. 

 

8.5.         No provision of this ILP 4 shall be construed as granting any rights to the Participants other than those expressly set forth herein, nor shall it grant the Participants any rights regarding tenure as officers or employees, independently of position or role, nor shall it interfere in any way with the right of any Zenvia Group Company to terminate at any time its relationship with the Participant. 

 

 

*-*-*

 

Approved by the Board of Directors of Zenvia Inc. on the meeting held on May 4th, 2022.

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Schedule I

 

Performance Factor Percentages

 

	
Percentage of Gross Profit Growth Target met 
in the Coverage Period

	
Performance Factor

	
< 80%

	
0

	
80%

	
50%

	
81%

	
53%

	
82%

	
55%

	
83%

	
58%

	
84%

	
60%

	
85%

	
63%

	
86%

	
65%

	
87%

	
68%

	
88%

	
70%

	
89%

	
73%

	
90%

	
75%

	
91%

	
78%

	
92%

	
80%

	
93%

	
83%

	
94%

	
85%

	
95%

	
88%

	
96%

	
90%

	
97%

	
93%

	
98%

	
95%

	
99%

	
98%

	
100%

	
100%

	
101%

	
103%

	
102%

	
105%

	
103%

	
108%

	
104%

	
110%

	
105%

	
113%

	
106%

	
115%

	
107%

	
118%

	
108%

	
120%

	
109%

	
123%

	
110%

	
125%

	
111%

	
128%

	
112%

	
130%

	
113%

	
133%

	
114%

	
135%

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Percentage of Gross Profit Growth Target met 
in the Coverage Period

	
Performance Factor

	
115%

	
138%

	
116%

	
140%

	
117%

	
143%

	
118%

	
145%

	
119%

	
148%

	
120%

	
150%

	
121%

	
153%

	
122%

	
155%

	
123%

	
158%

	
124%

	
160%

	
125%

	
163%

	
126%

	
165%

	
127%

	
168%

	
128%

	
170%

	
129%

	
173%

	
130%

	
175%

	
131%

	
178%

	
132%

	
180%

	
133%

	
183%

	
134%

	
185%

	
135%

	
188%

	
136%

	
190%

	
137%

	
193%

	
138%

	
195%

	
139%

	
198%

	
140%

	
200%

	
141%

	
203%

	
142%

	
205%

	
143%

	
208%

	
144%

	
210%

	
145%

	
213%

	
146%

	
215%

	
147%

	
218%

	
148%

	
220%

	
149%

	
223%

	
150%

	
225%

	
> 150%

	
225%

 

	10EX-10.1

 Exhibit 10.1 

FIRST AMENDMENT TO SUBSCRIPTION AGREEMENT 

This FIRST AMENDMENT TO SUBSCRIPTION AGREEMENT (this “Amendment”) dated as of July 1, 2022, is entered into by and among
Selina Hospitality PLC (“Issuer”), formerly known as Selina Holding Company, UK Societas, BOA Acquisition Corp. (“BOA”) and Bet on America Holdings LLC (“Investor”). 

W I T N E S E T H: 
 WHEREAS,
Issuer, BOA and Investor entered into that certain Subscription Agreement, dated as of December 2, 2021 (the “Original Subscription Agreement,” and as amended hereby, the “Subscription Agreement”); and

 WHEREAS, Issuer, BOA and Investor desire to amend the Original Subscription Agreement, in accordance with Section 9(g) thereof, as
set forth herein. 
 NOW, THEREFORE, in consideration of the mutual agreements herein contained and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
 SECTION
1     Defined Terms. Capitalized terms used and not otherwise defined in this Amendment (including Schedule I hereto) shall have the meanings given such terms in the Original Subscription Agreement.

 SECTION 2     Certain Amendments Related to the Subscription. The definition of “Eligible
Investments” set forth Section 1(b) of the Original Subscription Agreement is hereby amended to include the Aggregate Qualifying Fee Reductions (as defined Schedule I hereto). For clarity, the aggregate amount of the Backstop
Obligation shall be reduced by the amount of Aggregate Qualifying Fee Reductions, as calculated pursuant to Schedule I hereto. From the date hereof until the Closing, each of BOA and the Investor agree to use reasonable best efforts to obtain
the maximum amount of Transaction Fee Reductions (as defined in Schedule I). 
 SECTION 3    Certain
Amendments Related to Closing. Section 2 of the Original Subscription Agreement is hereby deleted in its entirety and substituted in place thereof with the following: 

“2.    Closing. 

a.     The closing of the sale, purchase and issuance of the Shares, other than such number of Shares to be
purchased by Investor to satisfy the Backstop Obligation (any such Shares, the “Backstop Shares”), contemplated hereby (the “Closing”, and the date that the Closing actually occurs, the “Closing
Date”) is contingent upon the substantially concurrent consummation of the Transaction. The Closing shall occur on the date of, and concurrently with, the effectiveness and closing of the Transaction (the “Transaction
Closing”) (but for the avoidance of doubt, shall occur after giving effect to the Capital Restructuring (as defined in the Transaction Agreement)). 

b.     As soon as practical following execution of this Amendment, the Investor shall deliver to the Issuer
100% of the Subscription Amount ($10,000,000.00) (the “Pre-Funded Amount”) by wire transfer of United States dollars in immediately available funds to an account designated by the Issuer. The wire transfer shall identify the
Investor, and unless otherwise agreed to by the Issuer, the funds shall be wired from an account in 

 
the Investor’s name. For the avoidance of doubt, the Issuer may utilize the Pre-Funded Amount for any corporate purpose following receipt and is not
required to hold the funds in escrow until the Closing. 
 c.     In consideration of the Issuer paying
the Pre-Funded Amount in accordance with Section 2(b), if the Closing occurs, the Investor shall be entitled to receive a fee equal to twenty-five percent (25%) of the
Pre-Funded Amount (“Early Funding Fee”), which fee shall be payable solely by the Issuer issuing and allotting 250,000 Shares to the Investor on the Closing Date. 

d.     The Issuer shall deliver, or cause to be delivered, written notice to the Investor (the
“Closing Notice”), that the Issuer reasonably expects all conditions to the closing of the Transaction under the Transaction Agreement to be satisfied or waived on a date that is not less than five (5) business days from the
date of the Closing Notice. The Issuer shall deliver to Investor (i) at the Closing, the Shares (including, for the avoidance of doubt, those issued and allotted pursuant to Section 2(c)), in book entry form and free and clear of any liens
or other restrictions (other than those arising under the Issuer’s constituent documents and applicable laws), in the name of the Investor (or its nominee), and (ii) as promptly as practicable after the Closing, evidence from the
Issuer’s transfer agent of the issuance of such Shares on and as of the Closing Date. 
 e.    If
the Closing does not occur on or prior to the Termination Date (as defined in the Transaction Agreement): 

i.     as a result of any Shareholder Litigation (as defined below), then, unless otherwise agreed to in
writing by the Issuer, BOA and the Investor, the Issuer shall, no later than 30 calendar days after the Termination Date, return the Pre-Funded Amount so delivered by the Investor by wire transfer in
immediately available funds to the account specified by the Investor. For purposes hereof, “Shareholder Litigation” means any claim or proceeding (including any class action or derivative litigation) asserted or commenced by, on behalf of
or in the name of, any shareholder of the Issuer against or otherwise involving the Issuer, its Board of Directors, any committee thereof, any of the Issuer’s directors or officers and/or any of the Issuer’s shareholders or affiliates, in
each case, relating directly or indirectly to, and seeking to restrain or otherwise the restrict the consummation of the transactions contemplated by, the Subscription Agreement, the Transaction Agreement (including the exhibits thereto) or the
Transaction (including any such claim or proceeding based on allegations that the Issuer’s entry into or amendment of the Subscription Agreement or the Transaction Agreement and the respective terms and conditions thereof conflicted with or
violated any of the Issuer’s existing agreements or constituted a breach of the fiduciary duties of any of the Issuer’s or its subsidiaries officers or directors); or 

ii.     for any other reason other than pursuant to Section 2(e)(i), unless otherwise agreed to in
writing by the Issuer, BOA and the Investor, the Pre- Funded Amount shall on the Termination Date automatically, without any action on the part of the Issuer or the Investor, convert into a unsecured loan with
terms and conditions as set forth in Schedule II hereto. 

  
 2 

 f.    The closing of the sale, purchase and issuance of
any Backstop Shares pursuant to the Backstop Obligation shall occur on date to be determined by Investor, in its sole discretion (the “Backstop Closing Date”); provided, however, that unless otherwise agreed to in
writing by the Issuer and the Investor, in no event shall the Backstop Closing Date occur later than December 31, 2023. Investor shall notify the Issuer in writing of the Backstop Closing Date no later than two (2) business days prior to the
Backstop Closing Date. On the Backstop Closing Date, (i) Investor shall deliver to the Issuer, by wire transfer of United States dollars in immediately available funds to an account designated by the Issuer, an amount equal to the number of
Backstop Shares to be purchased multiplied by the Per Share Purchase Price and (ii)(x) the Issuer shall deliver to Investor the Backstop Shares, in book entry form and free and clear of any liens or other restrictions (other than those arising under
the Issuer’s constituent documents and applicable laws), in the name of the Investor (or its nominee), and (y) as promptly as practicable thereafter, evidence from the Issuer’s transfer agent of the issuance of such Backstop Shares on
and as of the Backstop Closing Date. 
 g.     For purposes of this Subscription Agreement,
“business day” shall mean a day, other than a Saturday or Sunday, on which commercial banks in both New York, New York and London, United Kingdom are open for the general transaction of business.” 

SECTION 4     Representations and Warranties. Each of the representations and warranties of the Issuer and the
Investor, as set forth in Section 5 and Section 6 of the Original Subscription Agreement, respectively, shall be true and correct as if made as of the date hereof. 

SECTION 5     Miscellaneous. This Amendment (including the Schedules attached hereto) represents the entire
agreement among the parties with respect to the subject matter hereof. The provisions of Article 9 of the Original Subscription Agreement are hereby incorporated into this Amendment, mutatis mutandis. Each reference in the Subscription
Agreement (or in any and all instruments or documents provided for in the Subscription Agreement or delivered or to be delivered thereunder or in connection therewith) to “this Agreement”, “hereunder”, “hereof”,
“herein”, or words of like import shall, except where the context otherwise requires, be deemed a reference to the Original Subscription Agreement as amended hereby. No reference to this Amendment need be made in any instrument or document
at any time referring to the Subscription Agreement, and a reference to the Subscription Agreement in any of such instruments or documents will be deemed to be a reference to the Original Subscription Agreement as amended hereby. Except as expressly
provided in this Amendment, all provisions of the Original Subscription Agreement remain in full force and effect and are not modified by this Amendment, and the parties hereto hereby ratify and confirm each and every provision thereof. 

[Remainder of Page Intentionally Left Blank] 

  
 3 

 IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment as of the date
first above written. 
  

			
	SELINA HOSPITALITY PLC
		
	By:	 	 /s/ Rafael Museri

	Name:	 	Rafael Museri
	Title:	 	CEO
	
	BOA ACQUISITION CORP.
		
	By:	 	 /s/ Ben Friedman

	Name:	 	Ben Friedman
	Title:	 	Authorized Signatory
	
	BET ON AMERICA HOLDINGS LLC
		
	By:	 	 /s/ Ben Friedman

	Name:	 	Ben Friedman
	Title:	 	Authorized Signatory

  
 [Signature Page to
First Amendment to Subscription Agreement] 

 SCHEDULE I 

Transaction Fee Reduction Schedule

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