Document:

Exhibit

EXECUTION VERSION

FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT
This First Amendment to Loan and Security Agreement (this “Amendment”) is entered into as of March 17, 2018, by and between EAST WEST BANK (“Bank”) and OAKTREE STRATEGIC INCOME CORPORATION (f/k/a  FIFTH STREET SENIOR FLOATING RATE CORP.), a Delaware corporation (“Borrower”).
RECITALS
Borrower and Bank are parties to that certain Loan and Security Agreement dated as of January 6, 2016 (as amended from time to time, the “Agreement”).  
Borrower has informed Bank that Borrower has changed its legal name from Fifth Street Senior Floating Rate Corp. to Oaktree Strategic Income Corporation.  In connection therewith, the parties desire to amend the Agreement in accordance with the terms of this Amendment.
NOW, THEREFORE, the parties agree as follows:
1.All references in the Agreement to “Fifth Street Floating Rate Corp.” hereby are replaced with “Oaktree Strategic Income Corporation”, and all references to “Borrower” in the Agreement shall refer to Oaktree Strategic Income Corporation, a Delaware corporation.  All references in the Agreement to the Borrower’s address in Greenwich, CT hereby are replaced with the following address: 333 South Grand Avenue, 28th Floor, Los Angeles, CA 90071, Attention: Legal Department.
2.    The following defined terms and their respective definitions here by are added to Section 1.1 of the Agreement or amended and restated as follows:
“Borrowing Base” means an amount equal to (i) seventy percent (70%) of the aggregate value of the Eligible Loans provided by the Borrower in accordance with Section 6.3(d) that are First Lien Loans, plus (ii) fifty-five percent (55%) of the aggregate value of the Eligible Loans provided by the Borrower in accordance with Section 6.3(d) that are Second Lien Loans, plus (iii) the lesser of (a) forty percent (40%) of the aggregate value of the Eligible Loans provided by the Borrower in accordance with Section 6.3(d) that (1) are Unsecured Loans and (2) with respect to which the Obligor on such Eligible Loan has a trailing twelve (12) month EBITDA greater than Fifteen Million Dollars ($15,000,000) (the “Obligor EBITDA Requirement”) as of the date such Eligible Loan is included in the Borrowing Base and (3) no one customer of an Obligor is the source of revenue in excess of fifteen percent (15%) of the Obligor EBITDA Requirement, and (b) an amount equal to fifteen percent (15%) of the Revolving Line (as determined by Bank with reference to the most recent Borrowing Base Certificate delivered by Borrower), plus (iv) the total amount of Collections on deposit in the Borrowing Base Account.  Notwithstanding the foregoing, the aggregate Advances made hereunder with respect to any one Eligible Loan shall not exceed Four Million Dollars ($4,000,000).
“Borrowing Base Account” means Account No.              maintained by Borrower with Bank.
“Collections” means all principal, interest and fees with respect to Financed Loans.
“Collections Account” means Account No.                 maintained by Borrower with Custodian and subject to the Custodian Control Agreement.
“Custodian Control Agreement” means that certain Custodian Control Agreement by and among Custodian, Bank and Borrower dated as of January 6, 2016.
“Excess Collections” means any Collections or any other amounts maintained in the Borrowing Base Account in excess of the Collections included in the Borrowing Base with respect to which Bank has made Advances to Borrower.
“First Amendment” means that first amendment to this Loan and Security Agreement entered into by the parties hereto on the First Amendment Effective Date. 

    
154433396 v5 

EXECUTION VERSION

“First Amendment Effective Date” means March __, 2018.
“Obligor” means any obligor under a Loan.
3.    The following defined term and its respective definition hereby is deleted from the Agreement in its entirety:  
“Collections DDA”
4.    Clause (t) of the  defined term, “Eligible Loan”, set forth in Section 1.1 of the Agreement hereby is amended and restated as follows:
“(t) such Loan shall not be included on Borrower’s internal list of non-performing credits;”
5.    The second to last sentence in Section 2.1(a) of the Agreement hereby is amended and restated as follows:    
“Bank will credit the amount of Advances made under this Section 2.1(a) to Borrower’s designated deposit account at Bank.” 
6.    Section 5.5 of the Agreement hereby is amended and restated in its entirety to read as follows:
“5.5    Charter Documents. The Charter Documents are in full force and effect in the form presented to Bank as of the First Amendment Effective Date.”
7.    Section 6.6 of the Agreement hereby is amended and restated in its entirety to read as follows:
“6.6    Bank Accounts.  Borrower shall cause each Obligor or, to the extent any Obligors make payments to Custodian with respect to Financed Loans, Custodian, to deposit all payments (including, without limitation, principal, interest and fees) on account of any Financed Loans directly into the Collections Account, subject to the terms and conditions set forth in this Agreement. Borrower shall promptly deliver all payments that it receives with respect to Financed Loans into the Collections Account.  Notwithstanding the foregoing, any Collections requested by Borrower to be included in the Borrowing Base, shall be transferred from the Collections Account to the Borrowing Base Account on the Business Day that Borrower delivers to Bank a written request for such transfer and an updated Borrowing Base Certificate (provided that Bank receives such written request and Borrowing Base Certificate by 3:00 p.m. Eastern time on the applicable Business Day). Bank shall at all times have exclusive control of the Borrowing Base Account and restrict Borrower’s access to and use of any amounts maintained in the Borrowing Base Account; provided that, upon Borrower’s written request, Bank shall transfer to the Collections Account any Excess Collections.” 
8.    New Section 6.7(c) hereby is added to the Agreement as follows:
“(c)     Minimum Cash at Bank.  A balance of cash in demand deposit accounts maintained at Bank by Borrower of not less than Seven Hundred Fifty Thousand Dollars ($750,000) in the aggregate; provided, however, (i) if at any time Borrower fails to comply with the foregoing minimum cash requirement (a “Minimum Cash Default”), such Minimum Cash Default shall not be deemed an Event of Default under this Agreement if Borrower cures such Minimum Cash Default within five (5) Business Days after its occurrence (a “Minimum Cash Default Cure”) (provided that no Credit Extensions shall be made during such cure period), and (ii) Borrower shall be permitted to exercise a Minimum Cash Default Cure no more than once every fiscal quarter of Borrower.”
9.    Exhibit D (Compliance Certificate) to the Agreement hereby is replaced with Exhibit D attached hereto.
10.    Schedule 1 to the Agreement hereby is replaced with Schedule 1 attached hereto.

    
154433396 v5 

EXECUTION VERSION

11.    No course of dealing on the part of Bank or its officers, nor any failure or delay in the exercise of any right by Bank, shall operate as a waiver thereof, and any single or partial exercise of any such right shall not preclude any later exercise of any such right.  Bank’s failure at any time to require strict performance by Borrower of any provision shall not affect any right of Bank thereafter to demand strict compliance and performance.  Any suspension or waiver of a right must be in writing signed by an officer of Bank.
12.    Unless otherwise defined, all initially capitalized terms in this Amendment shall be as defined in the Agreement.  The Agreement, as amended hereby, shall be and remain in full force and effect in accordance with its respective terms and hereby is ratified and confirmed in all respects.  Except as expressly set forth herein, the execution, delivery, and performance of this Amendment shall not operate as a waiver of, or as an amendment of, any right, power, or remedy of Bank under the Agreement, as in effect prior to the date hereof.
13.    Borrower represents and warrants that the Representations and Warranties contained in the Agreement are true and correct as of the date of, and after giving effect to, this Amendment, and that no Event of Default has occurred and is continuing.  
14.    This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing this Amendment (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original hereof.
15.    As a condition to the effectiveness of this Amendment, Bank shall have received, in form and substance satisfactory to Bank, the following:
(a)    this Amendment, duly executed by Borrower;
(b)    a UCC name change amendment with respect to Borrower;
(c)    a certificate with respect to incumbency and resolutions of Borrower, authorizing the execution and delivery of this Agreement;
(d)    all reasonable Bank Expenses incurred through the date of this Amendment, which may be debited from any of Borrower's accounts at Bank; and
(e)    such other documents, and completion of such other matters, as Bank may reasonably deem necessary or appropriate.
16.    This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument.

[Balance of Page Intentionally Left Blank]

    
154433396 v5 

EXECUTION VERSION

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

	
	
	OAKTREE STRATEGIC INCOME CORPORATION (f/k/a FIFTH STREET SENIOR FLOATING RATE CORP.)

By: /s/ Mel Carlisle   
Name: Mel Carlisle            
Title: Chief Financial Officer            

EAST WEST BANK

By:/s/ Michael D. Sinclair   
Name: Michael D. Sinclair   
Title: Managing Director   

	

	 

	 

	 

	 

	 

	 

	 

[Signature Page to First Amendment to Loan and Security Agreement]

    
154433396 v5 

EXECUTION VERSION

EXHIBIT D
COMPLIANCE CERTIFICATE
		
	TO:
	EAST WEST BANK

FROM:             OAKTREE STRATEGIC INCOME CORPORATION 
                         (F/K/A) FIFTH STREET SENIOR FLOATING RATE CORP.

The undersigned authorized officer of OAKTREE STRATEGIC INCOME CORPORATION hereby certifies that in accordance with the terms and conditions of the Loan and Security Agreement between Borrower and Bank (the “Agreement”), (i)  Borrower is in complete compliance for the period ending _______________ with all required covenants except as noted below, (ii) all representations and warranties of Borrower stated in the Agreement are true and correct in all material respects as of the date hereof and (iii) all Financed Loans continue to comply with clauses (q) and (r) of the defined term “Eligible Loans” as set forth in the Agreement.  Attached herewith are the required documents supporting the above certification.  The Officer further certifies that these are prepared in accordance with the internal accounting and valuation policies in effect as of the Closing Date except as explained in an accompanying letter or footnotes.
Please indicate compliance status by circling Yes/No under “Complies” column.

    
154433396 v5 

EXECUTION VERSION

	
							
	 
	Reporting Covenant
	Required
	Complies

	 
	 
	 
	 
	 

	 
	Borrowing Base Certificate
	With each request for an Advance, and monthly within 45 days
	Yes
	No

	 
	 
	 
	 
	 

	 
	Compliance Certificate
	Monthly within 45 days
	Yes
	No

	 
	 
	 
	 
	 

	 
	Borrower Servicer Report
	Monthly within 45 days
	Yes
	No

	 
	 
	 
	 
	 

	 
	Quarterly internal portfolio review package
 
	Quarterly within 60 days (other than with respect to Q4), within 120 days of Q4
	Yes
	No

	 
	Notice of material changes to credit policy or risk rating system, or any risk rating changes within Borrower’s portfolio as reflected in the borrower service reports
	Immediately upon the occurrence thereof
	Yes
	No

	 
	 
	 
	 
	 

	 
	10-K and 10-Q reports
	FYE within 120 days
	Yes
	No

	 
	 
	 
	 
	 

	 
	Borrower’s Financial Covenants (tested quarterly)

	Required
	Actual
	Complies

	 
	Minimum Cash at Bank
	$750,000
	$_______________
	Yes
	No

	 
	Minimum Net Assets
	$275,000,000*
	$_________
	Yes
	No

	 
	Minimum Asset Coverage
	200%
	_________
	Yes
	No

	* increasing by ninety percent (90%) of any increase of net assets as of the end of each fiscal year (with no adjustment for any decreases in net assets), tested as of the end of each fiscal quarter of Borrower, commencing with the fiscal quarter ended September 30, 2015

Comments Regarding Exceptions:  See Attached.
	BANK USE ONLY

	 
	 

	 
	Received by:    

	Sincerely,
	AUTHORIZED SIGNER

	 
	 

	 
	Date:    

	 
	 

	   
	Verified:    

	SIGNATURE
	AUTHORIZED SIGNER

	 
	 

	 
	 

	   
	Date:    

	TITLE
	 

	 
	Compliance Status
	Yes
	No

	   
	 

	DATE
	 

    
154433396 v5 

Schedule 1
SCHEDULE 1 - FORM OF LOAN AGREEMENT SUPPLEMENT
LOAN AGREEMENT SUPPLEMENT No. [ ]
LOAN AGREEMENT SUPPLEMENT No. [   ], dated _______________, 20____ (“Loan Supplement”), to the Loan and Security Agreement dated as of January 6, 2016 (as amended, restated, or otherwise modified from time to time, the “Loan Agreement”) by and between the undersigned OAKTREE STRATEGIC INCOME CORPORATION (f/k/a  FIFTH STREET SENIOR FLOATING RATE CORP.) (“Borrower”) and EAST WEST BANK (“Bank”).  Capitalized terms used herein but not otherwise defined herein are used with the respective meanings given to such terms in the Loan Agreement.
To secure the prompt payment by Borrower of all amounts from time to time outstanding under the Loan Agreement, and the performance by Borrower of all the terms contained in the Loan Agreement, Borrower grants Bank, a first priority security interest in each Loan described in Annex A hereto, which Loans shall be deemed to be additional Collateral.  The Loan Agreement is hereby incorporated by reference herein and is hereby ratified, approved and confirmed.  Annex A (Loan Schedule) is attached hereto.  The proceeds of the Loans should be transferred to Borrower’s account with Bank set forth below:
Bank Name:    East West Bank
Account No.:    _______________

Borrower hereby certifies that (a) the foregoing information is true and correct and authorizes Bank to endorse in its respective books and records, the interest rate applicable on the funding date (the “Funding Date”) of the Advance contemplated in connection with this Supplement and the Advance Request and the principal amount set forth below; (b) the representations and warranties made by Borrower in the Loan Agreement are true and correct on the date hereof and shall be true and correct on such Funding Date.  No Event of Default has occurred and is continuing under the Loan Agreement.  This Supplement may be executed by Borrower and Bank in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument.
Advance Funding Date:  _____________, 20____
Advance Amount:  $____________
Interest Rate:  ______%
This Supplement is delivered as of this day and year first above written.
	
			
	EAST WEST BANK
	 
	OAKTREE STRATEGIC INCOME CORPORATION

	 
	 
	 

	 
	 
	 

	By:   
	 
	By:   

	Name:
	 
	Name:

	Title:
	 
	Title:

	 
	 
	 

Annex A -- Description of Loans

1
154431683 v1 

Annex A to Supplement
Upon the funding of the Advance referenced in the Loan Supplement, this schedule and the Loans described below automatically shall be deemed to be a part of the Collateral.
	
				
	Borrower Name
	Borrower Loan #
	Original Principal Amount
	Outstanding Principal Amount

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

and all Borrower’s Books relating to the foregoing, and any and all claims, rights and interests in any of the above and all substitutions for, additions, attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or all of the foregoing.

    
154433396 v5 

CORPORATE BORROWING CERTIFICATE

BORROWER: OAKTREE STRATEGIC INCOME CORPORATION 
                      (F/K/A FIFTH STREET SENIOR FLOATING RATE CORP.    DATE:               March __, 2018

BANK:    EAST WEST BANK

I hereby certify as follows, as of the date set forth above:
1.  I am the Secretary, Assistant Secretary or other officer of the Borrower.   My title is as set forth below.

2.  Borrower’s exact legal name is set forth above.  Borrower is a corporation existing under the laws of the State of 
Delaware.  
 
             
3.  Attached hereto are true, correct and complete copies of Borrower’s Certificate of Incorporation (including amendments), as filed with the Secretary of State of the state in which Borrower is incorporated as set forth in paragraph 2 above.  Such Certificate of Incorporation have not been amended, annulled, rescinded, revoked or supplemented, and remain in full force and effect as of the date hereof.  

4.  The following resolutions were duly and validly adopted by Borrower’s Board of Directors at a duly held meeting of such directors (or pursuant to a unanimous written consent or other authorized corporate action).  Such resolutions are in full force and effect as of the date hereof and have not been in any way modified, repealed, rescinded, amended or revoked, and Bank may rely on them until Bank receives written notice of revocation from Borrower.

	
				
	Name
	Title
	Signature
	Authorized to Add or Remove Signatories

	            
	            
	            
	□

	            
	            
	            
	□

	            
	            
	            
	□

	            
	            
	            
	□

RESOLVED, that any one of the following officers or employees of Borrower, whose names, titles and signatures are below, may act on behalf of Borrower:

RESOLVED FURTHER, that any one of the persons designated above with a checked box beside his or her name may, from time to time, add or remove any individuals to and from the above list of persons authorized to act on behalf of Borrower.

RESOLVED FURTHER, that such individuals may, on behalf of Borrower:

Borrow Money.  Borrow money from East West Bank (“Bank”).
Execute Loan Documents.  Execute any loan documents Bank requires. 
Grant Security.  Grant Bank a security interest in any of Borrower’s assets.
Negotiate Items.  Negotiate or discount all drafts, trade acceptances, promissory notes, or other indebtedness in which Borrower has an interest and receive cash or otherwise use the proceeds.
Further Acts.  Designate other individuals to request advances, pay fees and costs and execute other documents or agreements (including documents or agreement that waive Borrowers right to a jury trial) they believe to be necessary to effectuate such resolutions.

RESOLVED FURTHER, that all acts authorized by the above resolutions and any prior acts relating thereto are ratified. 

    
154433396 v5 

5.  The persons listed above are Borrower’s officers or employees with their titles and signatures shown next to their names.

                        

By:                      
Name:                      
Title:                      

*** If the Secretary, Assistant Secretary or other certifying officer executing above is designated by the resolutions set forth in paragraph 4 as one of the authorized signing officers, this Certificate must also be signed by a second authorized officer or director of Borrower.

I, the __________________________ of Borrower, hereby certify as to paragraphs 1 through 5 above, as  
                  [print title]
of the date set forth above.

By:                      
Name:                      
Title:                      

    
154433396 v5Exhibit

January 12, 2018

Alex Spinelli

Dear Alex,

I am pleased to offer you the position of EVP of Engineering & Operations/CTO, working from a new LivePerson office to be established in Seattle, WA. You are scheduled to start on March 1, 2018, reporting to Robert LoCascio, the Company’s CEO.  This letter confirms the terms and conditions of our employment offer to you:
    
		
	•
	You will be paid salary at an initial annualized salary rate of US$450,000USD per year, to be paid in accordance with our the current payroll practices (we currently pay salary on a semi-monthly basis on the 15th and last day of each month).

		
	•
	You will be eligible to participate in the LivePerson bonus plan as it exists from time to time under terms comparable to other LivePerson employees of similar role and responsibility.  Your target annual bonus for 2018 will be US$450,000, which will be prorated for the portion of 2018 that you are employed at LivePerson based on your actual start date.  For the 2018 fiscal year, eighty percent (80%) of your target annual bonus  will be payable in equal quarterly installments in the last payroll of each fiscal quarter, and otherwise subject to our normal payroll practices.  

		
	•
	The remaining twenty (20%) of your 2018 target bonus payout, as well as any bonus payouts for future fiscal years, if any, is anticipated to be paid during the first quarter of the subsequent fiscal year in accordance with then-current company practices, and will be determined in the sole discretion of LivePerson based on the profitability of the company as compared to Plan, your individual bonus target and your personal contribution to the company’s efforts as determined by the Company in its sole discretion.  Eligibility for and payment of such bonus, if any, is conditioned on your being actively employed by LivePerson as of the date the bonus, if any, is paid.  Your actual bonus payment is likely to be either greater or less than your target amount based on these criteria.  In any year, LivePerson may determine not to pay any bonus based on the above criteria.  LivePerson reserves the right to amend or terminate its bonus plan at any time.

		
	•
	 You will be granted as of your start date inducement awards consisting of the following:

		
	•
	Unvested restricted stock units (RSUs) in respect of 200,000 shares of LivePerson common stock; and 

		
	•
	An unvested option to purchase 100,000 shares of LivePerson common stock at a strike price determined by the LivePerson Board of Directors;   
 
The equity grants described above will be granted in accordance with our then-current standard policies and under the terms and conditions of the applicable corresponding Grant Agreement(s) provided to you by the Company, and will vest in equal increments of 25% annually over four (4) years, beginning on the first anniversary of the grant date.  

		
	•
	You will be eligible for vacation in accordance with LivePerson’s vacation policy as it exists from time to time.  Under the current policy, you will accrue vacation at the approximate rate of 1.66 vacation 

days per month (20 days per year). 

		
	•
	You will be eligible to enroll in the LivePerson health and disability insurance program on the first day of the first full calendar month of your employment subject to the terms and conditions of the applicable plans and policies, as they exist from time to time.  You will be eligible to participate in the company’s 401(k) savings plan following your employment start date subject to the terms and conditions of the plan.   
    

		
	•
	You will receive further orientation regarding benefits you are eligible for and company policies on or shortly after your start date. 

		
	•
	This offer is made contingent upon your successful completion of the Company’s pre-employment procedures, including reference and background verification of your prior employment and other information provided by you during the interview process, as well as proof of identity and authorization to work in the United States, as required by law.

		
	•
	You will receive further orientation regarding benefits you are eligible for and company policies on or shortly after your start date.  

		
	•
	Your employment with LivePerson is at-will and may be terminated by you or LivePerson at any time with or without cause and with or without notice.

		
	•
	In the event that (a) your employment is terminated by the Company without Cause (as defined below), or (b) terminated by you for Good Reason (as defined below), and (c) and provided that within sixty (60) days following your termination date you timely execute and do not revoke a separation and release agreement drafted by and satisfactory to the Company, the Company will provide you with severance pay equal to six (6) months pay at your then current base salary rate and, if such termination occurs on or before the date that bonuses are paid for the fiscal year prior to termination, a payment equal to the bonus you would have received for the prior fiscal year had you remained employed on the date bonuses for such fiscal year are paid.  In the event you terminate your employment due to subparagraph “i” of the definition of Good Reason, then your severance pay shall be paid at the base salary rate immediately preceding any reduction thereof.  All payments hereunder shall be payable in accordance with the payment procedures described below.   For the avoidance of doubt, the foregoing severance shall not be paid in the event that your employment is terminated by reason of your voluntary resignation (other than for Good Reason).  

		
	•
	In the event that within the 12-month period following a Change of Control (as defined below) your employment is terminated by the Company without Cause or by you for Good Reason; and provided that within sixty (60) days following your termination date you timely execute and do not revoke a Release (as defined above), the Company will provide you with the severance pay equal to six (6) months pay at your then current base salary rate and, if applicable, the bonus payments described in the immediately preceding paragraph and, with regard to any outstanding option and/or other equity awards held by you at the time of your termination:  (a) if you have been employed by the Company for less than 24 months at the time your employment is terminated, the total number of shares of common stock that would have vested in the 24-month period following your termination date if you had remained employed shall become immediately vested and exercisable on your termination date, and (b) if you have been employed by the Company for 24 months or more at the time your employment is terminated, all outstanding shares of common stock granted to you will become fully vested and exercisable on your termination date, and (c) in either case, the vested portion of any outstanding option and/or other equity awards held by you shall remain exercisable for 90 days following your date of termination, but in no event later than the original term of the option as set forth in the applicable award agreement.  

		
	•
	For purposes hereof, “Change of Control” shall be defined as, and limited to: the consummation of any transaction or group of related transactions following which the holders (or persons or entities that directly or indirectly control, are controlled by, or are under common control with, the holders) of the Company’s voting power immediately prior to such transaction(s) no longer hold securities having the voting power necessary to elect a majority of the board of directors of the surviving entity or entities, or a sale of all or substantially all of the Company’s assets.

		
	•
	Severance payments described above shall commence on the Company's first regularly scheduled payroll date that occurs as soon as practicable after the conditions set forth above are satisfied, and with respect to bonus payments, on the date bonuses are paid by the Company but in any event all severance and bonus payments hereunder shall be paid in full no later than the fifteenth (15th) day of the third (3rd) month following the end of your first tax year in which your termination of employment occurs, or, if later, the fifteenth (15th) day of the third (3rd) month following the end of the Company's first tax year in which your termination of employment occurs, as provided in Treasury Regulation Section 1.409A-1(b)(4).  The parties intend that the payments and benefits provided pursuant to this letter are exempt from the requirements of Section 409A of the Internal Revenue Code of 1986, as amended, the regulations and other guidance under and any state law of similar effect ("Section 409A") and any ambiguities herein will be interpreted to be so exempt.  Each payment and benefit payable under this letter is intended to constitute separate payments for purposes of Treasury Regulation Section 1.409A-2(b)(2).  Notwithstanding anything herein to the contrary, the Company shall have no liability to you or to any other person, for any taxes, penalties or otherwise, if the payments and benefits provided pursuant to this letter that are intended to be exempt from Section 409A are not so exempt.

		
	•
	In the event that your employment is voluntarily terminated at any time by you (other than for Good Reason as set forth herein), or by the Company for Cause, you will be entitled only to your earned and unpaid compensation earned through the date of your termination of employment in accordance with applicable law.  You will not be entitled to severance, option acceleration, or any other compensation or consideration that you might have received had your employment with the Company not been terminated.

		
	•
	For purposes hereof, “Cause” shall mean a determination by the Company that:  (i) you materially failed to perform your specified or fundamental duties to the Company or any of its subsidiaries,  (ii) you were convicted of, or pled nolo contendere to, a felony (regardless of the nature of the felony), or any other crime involving dishonesty, fraud, or moral turpitude, (iii) you engaged in or acted with gross negligence or willful misconduct (including but not limited to acts of fraud, criminal activity or professional misconduct) in connection with the performance of your duties and responsibilities to the Company or any of its subsidiaries, (iv) you failed to substantially comply with the written rules and policies of the Company or any of its subsidiaries governing employee conduct or with the lawful directives of the Board of Directors, or (v) you breached any non-disclosure, non-solicitation or other restrictive covenant obligation to the Company or any of its subsidiaries.  If the Company in its reasonable discretion determines that an event or incident described in to subparagraph (i) or (iv) of the definition of Cause is curable, then in order to terminate your employment for Cause pursuant to subparagraph (i) or (iv) of the definition of Cause, the Company shall (a) provide you with written notice of the event or incident that it considers to be “Cause” within 30 calendar days following its occurrence, (b) provide you with a period of at least 15 calendar days to cure the event or incident, and (c) if the Cause persists following the cure period, terminate your employment by written termination letter any time within 60 calendar days following the date that notice to cure was delivered to you.

		
	•
	For purposes hereof, “Good Reason” shall mean one or all of the following conditions arising without your consent: (i) a material reduction in your annual base salary by the Company, other than as part of an across-the-board reduction in parity with a reduction applicable to all employees or to other employees of similar role and responsibility; (ii) a material diminution by the Company of your role, 

responsibilities and title, or (iii) a relocation of the Company’s principal office to a location more than 50 miles from its location on the date hereof (or from such other location to which you have consented after the date hereof), unless such new location is closer to your primary residence than the prior location.  To be entitled to terminate your employment for Good Reason, you must (a) provide written notice to the Company of the event or change you consider constitutes “Good Reason” within 30 calendar days following its occurrence, (b) provide the Company with a period of at least 30 calendar days to cure the event or change, and (c) if the Good Reason persists following the cure period, actually resign by written resignation letter within 60 calendar days following the event or change. 

		
	•
	This letter shall not be construed as an agreement (either express or implied) to employ you, or for any guaranteed term of employment, and shall in no way alter the Company’s policy of employment at-will, under which both the Company and you remain free to end the employment relationship for any reason, at any time, with or without cause or notice. Your employment with LivePerson is at-will and may be terminated by you or LivePerson at any time with or without cause and with or without notice.

		
	•
	This offer is made contingent upon your successful completion of the Company’s pre-employment procedures, including reference and background verification of your prior employment and other information provided by you during the interview process, as well as proof of identity and authorization to work in the United States, as required by law.

		
	•
	By signing this letter you confirm that you are not subject to any agreement, with a prior employer or otherwise, which would prohibit, limit or otherwise be inconsistent with your employment at LivePerson or prevent you from performing your obligations to LivePerson.  Additionally, please be advised that it is LivePerson’s corporate policy not to obtain or use any confidential, proprietary information or trade secrets of its competitors or others, unless it is properly obtained from sources permitted to disclose such information.  By signing this letter below, you are acknowledging that you have been advised of this policy and that you accept and will abide by it, and you are also agreeing that you will not use or disclose any confidential or proprietary information of LivePerson to any third party, including any previous or subsequent employer.

Please indicate your acceptance of this offer by signing and dating below.  You will also receive additional information about LivePerson as well as some forms and documents that you must complete prior to your start date.  Your employment is contingent upon the return of the requested material.  The terms of this offer cannot be changed unless in writing signed by LivePerson. If you have any questions, please do not hesitate to reach out to the People Group. 

LivePerson is a dynamic organization with tremendous growth opportunities.  We look forward to you joining us and hope that you share our excitement for the opportunity it presents to everyone on the team.

	
		
	Sincerely,

__________________________________
Daryl J. Carlough
SVP, Global & Corporate Controller

______________
Date

	Accepted By:

______________________________
Alex Spinelli

______________
Date

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