Document:

tvty-ex104_51.htm

 

Exhibit 10.4

 

TIVITY HEALTH, INC.

SECOND AMENDED AND RESTATED 2014 STOCK INCENTIVE PLAN

MARKET STOCK UNIT AWARD AGREEMENT

 

This MARKET STOCK UNIT AWARD AGREEMENT (the “Agreement”), dated GRANT DATE, is by and between Tivity Health, Inc., a Delaware corporation (the “Company”), and Richard M. Ashworth (the “Grantee”), under the Company's Second Amended and Restated 2014 Stock Incentive Plan (the “Plan”).  Terms not otherwise defined herein shall have the meanings given to them in the Grantee’s Employment Agreement, dated May 20, 2020 (as may be amended from time to time, the “Employment Agreement”), or if not defined in the Employment Agreement, then the meanings given to them in the Plan.

 

Section 1.Market Stock Unit Award; Performance Goals. Subject to adjustment as set forth in Section 8 and/or Exhibit A, the Grantee is hereby granted 150,000 restricted stock units (the “Target Award”) under the Plan, with the specific number of restricted stock units ultimately earned by the Grantee to be determined in accordance with Exhibit A hereto (the “Market Stock Units”).  Each Market Stock Unit represents the right to receive one share of the Company's Common Stock, $.001 par value (the “Stock”), subject to the terms and conditions of this Agreement and the Plan.  Except as otherwise provided in Section 3 or Section 5.2, before the Market Stock Units will be earned and settled, the Committee shall determine the level of achievement of the Performance Goals described in Exhibit A hereto which the Committee shall do as soon as reasonably practicable after the third anniversary of the Start Date (as defined in the Employment Agreement) (the “End Date of the Performance Period”, and such period, the “Performance Period”), but in no event later than seventy-five (75) days following such End Date of the Performance Period.  Any Market Stock Units that are not earned as a result of the level of achievement of the Performance Goals as of the End Date of the Performance Period shall be immediately forfeited as of the End Date of the Performance Period.

 

Section 2.Vesting of the Award.  Except as otherwise provided in Section 3 and Section 5.2 below, 100% of the Market Stock Units determined by the Committee to be earned pursuant to Section 1 and Exhibit A will vest on the End Date of the Performance Period (the “Vesting Date”), as long as the Grantee is serving as an employee of the Company on such date.  The Company shall, in its sole discretion, issue (a) one share of the Stock (in the aggregate, the “Distributed Shares”), (b) cash in an amount equal to the closing stock price per share of Stock on the Vesting Date or other date on which the Market Stock Units vest pursuant to Section 3 or Section 5 (or if such date is not a trading day, then on the last trading day immediately preceding such date) or (c) a combination of cash and Stock (as described in this Section 2), to the Grantee in settlement of each earned and vested Market Stock Unit at or around the time the Market Stock Unit vests pursuant to this Agreement.  The Distributed Shares, if any, shall be represented by a certificate or by a book-entry in the Company’s records.

 

Section 3.Forfeiture on Termination of Employment.  

 

3.1.Termination by the Company for Cause.  If the Grantee’s employment with the Company is involuntarily terminated for Cause prior to the Vesting Date, then all Market Stock Units will be forfeited and the Grantee shall have no further rights with respect to such Market Stock Units. 

 

3.2.Termination by the Company without Cause or by the Grantee for Good Reason. If Grantee’s employment with the Company (a) is involuntarily terminated by the Company without Cause, or (b) is terminated by the Grantee for Good Reason, then, subject to Grantee’s execution of the release of claims in the form attached to the Employment Agreement, the Vesting Date shall be the Date of Termination, and the number of Market Stock Units that shall vest (the “Pro Rata Amount”) shall be the product of (i) a fraction, the numerator of which is the number of full calendar months during the Performance Period that the Grantee was employed by the Company, and the denominator of which is 36, multiplied by (ii) the number of Market Stock Units that would vest pursuant to Exhibit A if the Performance Goals that had been achieved as of the Date of 

 

 

Termination had in fact been achieved as of the End Date of the Performance Period (i.e., based on actual performance through the Date of Termination).  Any Market Stock Units that vest pursuant to this Section 3.2 shall be settled promptly following the Vesting Date (as modified), but in no event later than seventy-five (75) days following such Vesting Date.  For purposes of this Agreement, the term “Date of Termination” shall have the meaning set forth in the Employment Agreement.

 

3.3.Termination by Death or Disability.  If the Grantee’s employment with the Company terminates by reason of death or Disability (as defined in the Employment Agreement), then the Vesting Date shall be the Date of Termination, and the number of Market Stock Units that shall vest shall be the product of (i) a fraction, the numerator of which is the number of full calendar months during the Performance Period that the Grantee was employed by the Company, and the denominator of which is 36, multiplied by (ii) the number of Market Stock Units that would vest pursuant to Exhibit A if the Performance Goals that had been achieved as of the Date of Termination had in fact been achieved as of the End Date of the Performance Period (i.e., based on actual performance through the Date of Termination).  Any Market Stock Units that vest pursuant to this Section 3.3 shall be settled promptly following the Vesting Date (as modified), but in no event later than seventy-five (75) days following such Vesting Date.

 

3.4. Other Termination.  Subject to Section 5.2, if the Grantee's employment with the Company terminates for any reason other than as described in Sections 3.1 through 3.3 above (or if Grantee fails to execute the release of claims in the form attached to the Employment Agreement, if applicable), then all Market Stock Units that have not vested prior to the Date of Termination will immediately thereupon be forfeited and the Grantee shall have no further rights with respect to such Market Stock Units. 

Section 4.Voting Rights and Dividends.  The Grantee shall be credited with cash dividend equivalents with respect to each Market Stock Unit outstanding at the time of any payment of dividends to stockholders on a share of Stock in accordance with the terms set forth in the Plan, and such dividend equivalents shall accumulate and be paid (in cash, without interest) to the Grantee when and only if the Market Stock Units to which they relate become vested and are settled in accordance with this Agreement.  The Grantee shall not have any voting rights with respect to the Stock underlying the Market Stock Units prior to the issuance of the Distributed Shares.  A holder of Distributed Shares shall have full dividend and voting rights as a holder of Stock.

 

Section 5.Restrictions on Transfer; Change in Control.

 

5.1.General Restrictions.  The Market Stock Units shall not be transferable by the Grantee (or his legal representative or estate, as applicable) other than by will or by the laws of descent and distribution.  The terms of this Agreement shall be binding on the executors, administrators, heirs and successors of the Grantee. 

 

5.2.Change in Control.

 

(a)If in connection with a Change in Control, the acquiring corporation (or other successor to the Company in the Change in Control) does not assume the Market Stock Units, then 

a number of Market Stock Units shall vest and be settled in Stock issued to the Grantee immediately prior to the Change in Control equal to the number of Market Stock Units that would have vested pursuant to Exhibit A on the Vesting Date (i.e., based on actual performance); provided, however, that for purposes of this Section 5.2(a), the End Date of the Performance Period shall be deemed to be the date of the Change in Control.

 

(b)If in connection with a Change in Control, the acquiring corporation  (or other successor to the Company in the Change in Control) assumes the Market Stock Units and if Grantee’s employment with the Company (or its successor company) (i) is involuntarily terminated within 12 months following such Change in Control without Cause, or (ii) is terminated by the Grantee for Good Reason within 12 months following a Change in Control, then subject to Grantee’s execution of the release of claims in the form 

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attached to the Employment Agreement, the Vesting Date shall be the Date of Termination and the number of Market Stock Units that will be eligible to vest on the Vesting Date shall be equal to the number of Market Stock Units that would have vested pursuant to Exhibit A on such Vesting Date (i.e., based on actual performance); provided, however, that for purposes of this Section

5.2(b), the End Date of the Performance Period shall be deemed to be the date of the Change in Control.

 

Section 6.Restrictive Agreement.  As a condition to the receipt of any Distributed Shares, the Grantee (or his legal representative or estate or any third party transferee, as applicable), if the Company so requests, will execute an agreement in form satisfactory to the Company in which the Grantee or such other recipient of the shares represents that he or she is purchasing the shares for investment purposes, and not with a view to resale or distribution.  

 

Section 7.Market Stock Units Award Subject to Recoupment Policy. The award of Market Stock Units is subject to the Tivity Health, Inc. Compensation Recoupment Policy (the “Policy”), and such Market Stock Units, or any amount traceable to the award of Market Stock Units, shall be subject to the recoupment obligations described in the Policy.

 

Section 8.Adjustment.  In the event of any merger, reorganization, consolidation, recapitalization, extraordinary cash dividend, stock dividend, stock split or other change in corporate structure affecting the Stock, the number of Market Stock Units subject to this Agreement, as well as the performance criteria set forth on Exhibit A, shall be equitably and proportionately adjusted by the Committee in accordance with the Plan and the intent of this Agreement (without duplication of Section 4) in a manner that leaves Grantee in the same or better economic position after such adjustment as compared to prior to such adjustment.

 

Section 9.Tax Withholding.  The Company shall have the right to require the Grantee to remit to the Company, or to withhold from wages or other amounts payable to the Grantee, an amount necessary to satisfy any federal, state and local withholding tax requirements attributable to the vesting and payment of the Market Stock Units prior to the delivery of the Distributed Shares, or cash, as applicable, or may withhold from the Distributed Shares an amount of Stock having a Fair Market Value equal to such federal, state or local taxes as shall be required to be withheld pursuant to any applicable law or regulation.

 

Section 10.Plan.  This Agreement is made under and subject to the provisions of the Plan, and all of the provisions of the Plan that do not conflict with this Agreement are also provisions of this Agreement.  If there is a difference or conflict between the provisions of this Agreement and the provisions of the Plan, the provisions of this Agreement will govern.  By signing this Agreement, the Grantee confirms that he or she has received a copy of the Plan.

 

Section 11.Confidentiality, Non-Solicitation and Non-Compete. In the event Grantee is adjudged, by a final ruling of a court of competent jurisdiction, to have breached the confidentiality, non-solicitation or non-compete covenants to which he is subject, the Market Stock Units shall immediately thereupon expire and be forfeited, and the Company shall be entitled to seek other appropriate remedies it may have available in connection with such breach.

 

Section 12.Miscellaneous.

 

12.1.Entire Agreement.  This Agreement, the Employment Agreement and the Plan contain the entire understanding and agreement between the Company and the Grantee concerning the Market Stock Units granted hereby, and supersede any prior or contemporaneous negotiations and understandings.  The Company and the Grantee have made no promises, agreements, conditions, or understandings relating to the Market Stock Units, either orally or in writing, that are not included in this Agreement, the Employment Agreement and/or the Plan.

 

12.2.Employment.  By establishing the Plan, granting awards under the Plan, and entering 

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into this Agreement, the Company does not give the Grantee any right to continue to be employed by the Company or to be entitled to any remuneration or benefits not set forth in this Agreement, the Employment Agreement and/or the Plan.  

 

12.3.Captions.  The captions and section numbers appearing in this Agreement are inserted only as a matter of convenience.  They do not define, limit, construe, or describe the scope or intent of the provisions of this Agreement.

 

12.4.Counterparts.  This Agreement may be executed in counterparts, each of which when signed by the Company and the Grantee will be deemed an original and all of which together will be deemed the same Agreement.

 

12.5.Notice.  All notices required to be given under this Agreement shall be deemed to be received if delivered or mailed as provided for herein, to the parties at the following addresses, or to such other address as either party may provide in writing from time to time.

 

To the Company:Tivity Health, Inc.

701 Cool Springs Blvd

Franklin, Tennessee 37067

 

		
	
To the Grantee:
	
Richard M. Ashworth

	
(Grantee name and address)
	
Address on File

	
 
	
at Tivity Health

	
 
	
 

 

12.6.Amendment.  Subject to the restrictions contained in the Plan, the Committee may amend the terms of this Agreement, prospectively or retroactively, but, subject to Section 8 above, no such amendment shall impair the rights of the Grantee hereunder without the Grantee's consent.

 

12.7.Governing Law.  This Agreement shall be governed and construed exclusively in accordance with the law of the State of Delaware applicable to agreements to be performed in the State of Delaware to the extent it may apply.

 

12.8.Validity; Severability.  If, for any reason, any provision hereof shall be determined to be invalid or unenforceable, the validity and effect of the other provisions hereof shall not be affected thereby.  Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or any other jurisdiction, but this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.  If any court determines that any provision of this Agreement is unenforceable but has the power to reduce the scope or duration of such provision, as the case may be, such provision, in its reduced form, shall then be enforceable.

 

12.9.Interpretation; Resolution of Disputes; Section 409A.

 

(a)It is expressly understood that the Committee is authorized to administer, construe and make all determinations necessary or appropriate to the administration of the Plan and this Agreement, all of which shall be binding upon the Grantee.  Any dispute or disagreement which may arise under, or as a result of, or in any way related to, the interpretation, construction or application of this Agreement shall be determined by the Committee.  Any determination made hereunder shall be final, binding and conclusive on the Grantee and the Company for all purposes absent manifest error.

 

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(b)Notwithstanding anything herein to the contrary, to the maximum extent permitted by applicable law, the Market Stock Units (including any dividend equivalent rights) are intended to qualify as a “short-term deferral” pursuant to Section 1.409A-1(b)(4) of the U.S. Treasury Regulations and this Agreement shall be interpreted consistently therewith.  However, under certain circumstances, administration of the Market Stock Units or any dividend equivalent rights may not so qualify, and in that case, the Committee shall administer the grant and settlement of such Market Stock Units and any dividend equivalent rights in strict compliance with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”).  Further, notwithstanding anything herein to the contrary, if at the time of a Participant’s termination of employment with the Company, the Participant is a “specified employee” as defined in Section 409A of the Code, and the deferral of the commencement of any payments or benefits otherwise payable hereunder as a result of such termination of service is necessary in order to prevent the imposition of any accelerated or additional tax under Section 409A of the Code, then the Company will defer the commencement of the payment of any such payments or benefits hereunder (without any reduction in such payments or benefits ultimately paid or provided to the Participant) to the minimum extent necessary to satisfy Section 409A of the Code until the date that is six months and one day following the Participant’s termination of employment with the Company (or the earliest date as is permitted under Section 409A of the Code), if such payment or benefit is payable upon a termination of employment.  Each payment of Market Stock Units (and related dividend equivalent rights) constitutes a “separate payment” for purposes of Section 409A of the Code. Notwithstanding any other provision of this Agreement, if and to the extent that any payment under this Agreement constitutes non-qualified deferred compensation under Section 409A of the Code (as reasonably determined by the Company and the Grantee), and is payable upon the Grantee’s termination of employment, then such payment shall be made or provided to the Grantee only upon a “separation from service” as defined for purposes of Section 409A of the Code.  If the Market Stock Units constitute deferred compensation and are subject to Section 409A of the Code, if a release is required for settlement of Market Stock Units and if the period in which to consider and revoke the release begins in one taxable year and ends in a second taxable year, such settlement shall not occur until the second taxable year.

 

12.10.Successors in Interest.  This Agreement shall inure to the benefit of and be binding upon any successor to the Company.  This Agreement shall inure to the benefit of the Grantee’s legal representative and permitted assignees.  All obligations imposed upon the Grantee and all rights granted to the Company under this Agreement shall be binding upon the Grantee’s heirs, executors, administrators, successors and assignees.  

 

 

[remainder of page intentionally left blank; signature page follows]

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IN WITNESS WHEREOF, the parties have caused the Market Stock Unit Award Agreement to be duly executed as of the day and year first written above.

 

 

TIVITY HEALTH, INC.

 

 

By: 

 

Name:

Title:

 

 

 

GRANTEE: Richard M. Ashworth

 

Online Grant Acceptance Satisfies

Signature Requirement

 

 

 

 

 

 

 

 

 

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EXHIBIT A

 

Subject to the remaining provisions of this paragraph, the number of Market Stock Units earned shall be determined based on the cumulative total shareholder return of the Company's Stock over the Performance Period. The cumulative total shareholder return (“TSR”) will be calculated using a beginning price equal to $9.63, and an ending price equal to the trading volume weighted average price of the Company's Stock (“VWAP”) over the period of twenty (20) consecutive trading days ending on the End Date of the Performance Period, and accounting for immediate reinvestment (as of the ex-dividend date) of all cash dividends and other cash distributions (excluding cash distributions resulting from share repurchases or redemptions by the Company) over the Performance Period.  In the event Grantee's employment terminates under the circumstances described in Sections 3.2 or 3.3 or the Market Stock Units are settled pursuant to Section 5.2, the ending price shall be equal to the VWAP over the period of twenty (20) consecutive trading days ending on the Date of Termination (or Change in Control, if applicable).  For purposes of this Exhibit A, “VWAP” equals (A) the sum of the closing stock price multiplied by the trading volume for each trading day of the 20-day measurement period, divided by (B) the total trading volume over the same period.

 

The Target Award set forth in Section 1 of this Agreement shall be multiplied by the applicable percentage set forth in the table below (rounded to the nearest full share) with earned amounts between the performance levels set forth in the table to be interpolated linearly as further set forth below.  

 

7Exhibit

Exhibit 10.1

AMENDMENT NO. 1 TO
CREDIT AGREEMENT

This AMENDMENT NO. 1 TO CREDIT AGREEMENT (this “Amendment”) dated as of May 19, 2020, is entered into by and among ONDECK ASSET FUNDING II LLC, a Delaware limited liability company (“Company”), the Lenders party hereto which constitute all the Lenders currently party to the Credit Agreement (as defined below) and ARES AGENT SERVICES, L.P., as Administrative Agent for the Lenders (in such capacity, “Administrative Agent”).
RECITALS:
WHEREAS, Company, the Lenders party thereto from time to time, the Administrative Agent, ARES AGENT SERVICES, L.P., as Collateral Agent, and WELLS FARGO BANK, N.A., as Paying Agent, entered into a Credit Agreement, dated as of August 8, 2018 (as may be amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), pursuant to which the Lenders have made advances and other financial accommodations to Company. Capitalized terms not otherwise defined in this Amendment have the same meanings as specified in the Credit Agreement, as amended hereby; 
WHEREAS, Company, the Lenders and the Administrative Agent desire to amend the Credit Agreement as set forth herein subject to the terms and conditions set forth herein; and
 WHEREAS, pursuant to the Temporary Waiver, dated as of May 14, 2020 (the “Temporary Waiver”), by and among Company, the Administrative Agent and the Lenders, the parties hereto agreed to apply Collections for the month of April 2020 (the “April Collections”) on the Interest Payment Date occurring on May 15, 2020 solely with respect to items “first” through “fifth” of Section 2.11(a) of the Credit Agreement, to retain the remaining April Collections (the “Retained April Collections”) in the Collection Account and desire to apply all Collections in the Collection Account, including the Retained April Collections, as of the date hereof as set forth herein.
NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants herein contained, the parties hereto agree as follows:
SECTION 1.    AMENDMENTS TO THE CREDIT AGREEMENT
The Credit Agreement is, effective as of the First Amendment Effective Date and subject to the satisfaction of the conditions precedent set forth in Section 4.1 hereof, hereby amended as follows:

		
	1.1
	 Section 1.1 of the Credit Agreement. 

		
	(a)
	The following new definitions are hereby added to Section 1.1 of the Credit Agreement in the appropriate alphabetical order:

“COVID Impacted Industries” means the industries set forth on Appendix F.
“COVID Policies” means the portion of the written Underwriting Policies attached hereto as Appendix G that relate to the COVID-19 pandemic.
“COVID Receivable” means any Receivable arising under an OnDeck LOC that (i) was originated and the first advance thereunder was funded on or prior to March 11, 2020, (ii) had, as 

 
Exhibit 10.1

of April 24, 2020, a Missed Payment Factor of less than (x) if such Receivable is a Daily Pay Receivable, thirty (30), (y) if such Receivable is a Weekly Pay Receivable, six (6) or (z) if such Receivable is a Monthly Pay Receivable, one and one half (1.5) and (iii) the Servicer subsequently determines that such Receivable is “COVID19-Confirmed” or “Pandemic-Impacted” or that it has any other similar COVID-19 related indication in its loan servicing platform, in each case, in accordance with the Underwriting Policies (as amended by the COVID Policies).  
“COVID Related Material Modification” means any Material Modification of a COVID Receivable made in accordance with the Underwriting Policies (as amended by the COVID Policies) during the Relief Period that (x) had a Missed Payment Factor of zero as of March 11, 2020 and (y) had, as of April 24, 2020, a Missed Payment Factor of less than (i) if such Receivable is a Daily Pay Receivable, thirty (30), (ii) if such Receivable is a Weekly Pay Receivable, six (6) or (iii) if such Receivable is a Monthly Pay Receivable, one and one half (1.5).For the avoidance of doubt, no COVID Related Material Modifications may be made after the expiration of the Relief Period.
“COVID Related Modification” means any COVID Related Material Modification or COVID Related Temporary Modification. 
“COVID Related Temporary Modification” means any temporary modification of a COVID Receivable made in accordance with Underwriting Policies (as amended by the COVID Policies) during the Relief Period, including, but not limited to, grace days, workout programs or holds, that (x) had a Missed Payment Factor of zero as of March 11, 2020 and (y) had, as of April 24, 2020, a Missed Payment Factor of less than (i) if such Receivable is a Daily Pay Receivable, thirty (30), (ii) if such Receivable is a Weekly Pay Receivable, six (6) or (iii) if such Receivable is a Monthly Pay Receivable, one and one half (1.5).  For the avoidance of doubt, no COVID Related Temporary Modifications may be made after the expiration of the Relief Period.
“Effective Advance Rate” means, (a) as of the First Amendment Effective Date, the lesser of (i) 82.5% and (ii) the Effective Advance Rate Benchmark calculated as of the First Amendment Effective Date and (b) as of any subsequent Interest Payment Date from the First Amendment Effective Date to but excluding the Relief Period End Date, the lesser of (i) the Effective Advance Rate Benchmark calculated as of such Interest Payment Date and (ii) the lowest Effective Advance Rate as of any date on or after the First Amendment Effective Date. The Effective Advance Rate shall be (x) determined on the First Amendment Effective Date and on each Interest Payment Date occurring from the First Amendment Effective Date to but excluding the Relief Period End Date, (y) reflected in a report in form and substance acceptable to the Administrative Agent and the Requisite Lenders delivered by the Servicer on each such date and (z) used for calculations of the Borrowing Base until re-determined on the immediately succeeding Interest Payment Date during the period beginning on the First Amendment Effective Date to but excluding the Relief Period End Date.
“Effective Advance Rate Benchmark” means, as of the First Amendment Effective Date or any subsequent Interest Payment Date from the First Amendment Effective Date to but excluding the Relief Period End Date, the percentage equivalent of a fraction (a) the numerator of which is (i) the Total Utilization of Commitments as of such date, after giving effect to any repayments of the Loans on such date minus (ii) the aggregate amount of Collections in the Lockbox Account and the Collection Account to the extent such Collections and other funds have already been applied to reduce the Eligible Portfolio Outstanding Principal Balance as of such date, after the application of Collections pursuant to Section 2.11 on such date, minus (iii) the fair market value of all Permitted 

 
Exhibit 10.1

Investments held in the Collection Account as of such date, after the application of Collections pursuant to Section 2.11 on such date, plus (iv) 100% of the sum of the Accrued Interest Amount through such date and the aggregate amount of all accrued and unpaid fees and expenses due hereunder and under the Servicing Agreement, the Backup Servicing Agreement, the Custodial Agreement and the Successor Servicing Agreement through such date and (b) the denominator of which is the Adjusted EPOPB as of such date.
 “First Amendment” means that certain Amendment No. 1 to Credit Agreement, dated as of May 19, 2020, by and among the Company, the Lenders party thereto and the Administrative Agent.
“First Amendment Effective Date” means May 20, 2020. 
“Monthly Pay Receivable” means any COVID Receivable for which a Payment is due once per month (after giving effect to any COVID Related Modification relating thereto). 
“Relief Period” means the period beginning on March 11, 2020 to but excluding the Relief Period End Date.
“Relief Period End Date” means July 23, 2020, or such later date as mutually agreed by the Administrative Agent (acting with the prior written consent of the Requisite Lenders) and the Company.
“Specified Servicer Default” means the occurrence of a Servicer Default under clause (viii) of the definition thereof that has not been waived by the holders of the related Indebtedness.

“Step Down Phase 1 Period” means the 30-day period beginning on (and including) the Relief Period End Date.
“Step Down Phase 2 Period” means the 30-day period beginning immediately after the expiration of the Step Down Phase 1 Period. 
“Target Advance Rate” means 70%.
(b)    The following definitions in Section 1.1 of the Credit Agreement are hereby amended and restated as follows:
“Advance Rate” means, (a) from the First Amendment Effective Date to but excluding the Relief Period End Date, the Effective Advance Rate then applicable in accordance with the definition thereof and (b) at all times on and after the Relief Period End Date, the Target Advance Rate.

 
Exhibit 10.1

 “Charged-Off Receivable” means, with respect to any date of determination, a Receivable which (i) consistent with the Underwriting Policies has or should have been written off the Company’s books as uncollectable, (ii) has a Missed Payment Factor of (x) with respect to Daily Pay Receivables, sixty (60) or higher, (y) with respect to Weekly Pay Receivables, twelve (12) or higher or (z) with respect to Monthly Pay Receivables, three (3) or higher, (iii) which, to the Company’s or Servicer’s knowledge, has been the subject of fraud in connection with its origination or (iv) for which, to the Company’s or Servicer’s knowledge, the related Receivables Obligor is the subject of a bankruptcy or insolvency proceeding.
“Delinquency Ratio” means, as of any Determination Date, the percentage equivalent of a fraction (a) the numerator of which is the aggregate Outstanding Principal Balance of all Pledged Receivables (that are not Charged-Off Receivables) that had a Missed Payment Factor of (x) with respect to Daily Pay Receivables, fifteen (15) or higher, (y) with respect to Weekly Pay Receivables, three (3) or higher, or (z)  with respect to Monthly Pay Receivables, 0.75 or higher, in each case, as of such Determination Date, and (b) the denominator of which is the aggregate Outstanding Principal Balance of all Pledged Receivables (that are not Charged-Off Receivables) as of such Determination Date. 
“Excess Interest Collections” means, with respect to any Monthly Period, an amount equal to (a) the sum of all Collections received during such Monthly Period that were not applied by the Servicer to reduce the Outstanding Principal Balance of the Pledged Receivables in accordance with the Servicing Agreement minus (b) the aggregate amount paid (or payable) by Company on the first Interest Payment Date following such Monthly Period pursuant to clauses (a)(i), (a)(ii), (a)(iii), (a)(iv), (a)(v), (a)(vi), (a)(vii), (a)(ix), (a)(x), (a)(xi), (a)(xii), (a)(xiii), and (a)(xv) of Section 2.11.

“Missed Payment Factor” means, in respect of any Receivable, an amount equal to the sum of (a) the amount equal to (i) the total past due amount of Payments in respect of such Receivable, divided by (ii) the required periodic Payment in respect of such Receivable as set forth in the related Receivables Agreement, determined, with respect to Payments due during the Relief Period, by giving effect to COVID Related Temporary Modifications during the Relief Period, but without giving effect to any other temporary modifications (including, but not limited to, grace days, workout programs or holds) of such required periodic Payment then applicable to such Receivable, and (b) the number of Payment Dates, if any, past the Receivable maturity date on which a Payment was due but not received; provided that, unless otherwise agreed to by the Administrative Agent and the Requisite Lenders prior to June 10, 2020, at all times after the First Amendment Effective Date, “Missed Payment Factor” shall have the following meaning for the purpose of calculating the Delinquency Ratio to determine whether a Hot Backup Servicer Event (as defined in the Backup Servicing Agreement) has occurred: “Missed Payment Factor” means, in respect of any Receivable, an amount equal to the sum of (a) the amount equal to (i) the total past due amount of Payments in respect of such Receivable, divided by (ii) the required periodic Payment in respect of such Receivable as set forth in the related Receivables Agreement, determined without giving effect to any temporary modifications (including, but not limited to, grace days, workout programs or holds) of such required periodic Payment then applicable to such Receivable, and (b) the number of Payment Dates, if any, past the Receivable maturity date on which a Payment was due but not received.

 
Exhibit 10.1

“Receivable Yield” means, with respect to any Receivable, the imputed interest rate that is calculated on the basis of the expected aggregate annualized rate of return (calculated inclusive of all interest and fees (other than any Upfront Fees)) of such Receivable over the life of such Receivable.
Such calculation shall assume:

(a) 12 Payment Dates per annum, for Monthly Pay Receivables;

(b) 52 Payment Dates per annum, for Weekly Pay Receivables; and 

(c) 252 Payment Dates per annum, for Daily Pay Receivables.
“Weekly Pay Receivable” means any Receivable for which a Payment is generally due once per week (and, for the avoidance of doubt, each LOC Receivable, other than Monthly Pay Receivables, shall be considered a Weekly Pay Receivable hereunder).

1.2    Section 2.1(a) of the Credit Agreement is hereby amended by (x) inserting “or the Relief Period” immediately after “the Early Amortization Period” where it appears therein and (y) adding the following sentence at the end thereof:
Notwithstanding anything to the contrary herein, the Company shall not request any Loans, and the Lenders shall not be required to fund any Loans to the Company, from the First Amendment Effective Date to but excluding the Relief Period End Date.

1.3    Section 2.10(c)(vii) of the Credit Agreement is hereby amended by replacing the first parenthetical therein with the following:
(and, (x) with respect to clause (A) below, so long as no Early Amortization Period is then occurring, and (y) with respect to clause (C) below, so long as the Commitment Period is in effect and, other than with respect to Subsequent LOC Advances made after May 12, 2020, the Relief Period has ended (unless otherwise agreed with the consent of the Administrative Agent and the Requisite Lenders))
1.4    Section 2.11(a) of the Credit Agreement is hereby amended to restate clauses (i), (v) – (viii) and (xii) – (xv) and to add a new clause (xvi) as set forth below:

(i)    first, to Company, amounts sufficient for Company to maintain its limited liability company existence and to pay similar expenses up to an amount not to exceed $1,000 in any Fiscal Year, and only to the extent not previously distributed to Company during such Fiscal Year pursuant to clause (xvi) below; 
(v)     fifth, (A) prior to the occurrence of a Specified Servicer Default, on a pro rata basis to the Class B Lenders, at the direction of the Administrative Agent, to pay fees (including, without any limitation, any and all payments payable or allocable to the Class B Lenders pursuant to the Pricing Letter) and unpaid accrued Class B Interest Amounts (calculated in accordance with Section 2.5), (B) on and after the occurrence of a Specified Servicer Default until the Class A Loans have been reduced to zero, to the Class A Lenders based on their Pro Rata Shares at the direction of 

 
Exhibit 10.1

the Administrative Agent, to pay in reduction of the Class A Loans, an amount equal to the fees and unpaid accrued Class B Interest Amounts that would have been paid to the Class B Lenders if clause (A) applied and (C) on and after the occurrence of a Specified Servicer Default, but only if the Class A Loans have been previously reduced to zero, on a pro rata basis to the Class B Lenders, at the direction of the Administrative Agent, to pay fees (including, without any limitation, any and all payments payable or allocable to the Class B Lenders pursuant to the Pricing Letter) and unpaid accrued Class B Interest Amounts (calculated in accordance with Section 2.5), including all unpaid fees and unpaid accrued Class B Interest Amounts that were not paid to the Class B Lenders on previous Interest Payment Dates due to the application of clause (B); 
(vi)    sixth, (A) prior to the occurrence of a Specified Servicer Default, to the Class A Lenders based on their Pro Rata Shares at the direction of the Administrative Agent, to pay in reduction of the Class A Loans, any amount necessary to reduce the Class A Borrowing Base Deficiency Amount, if any, to zero and (B) on and after the occurrence of a Specified Servicer Default, to the Class A Lenders based on their Pro Rata Shares at the direction of the Administrative Agent, to pay in reduction of the Class A Loans, any amount necessary to reduce the Borrowing Base Deficiency, if any, to zero;
(vii)    seventh, (A) prior to the occurrence of a Specified Servicer Default, to the Class B Lenders based on their Pro Rata Shares at the direction of the Administrative Agent, to pay in reduction of the Class B Loans, any amount necessary to reduce the Class B Borrowing Base Deficiency Amount, if any, to zero and (B) on and after the occurrence of a Specified Servicer Default, but only if the Class A Loans have been previously reduced to zero, to the Class B Lenders based on their Pro Rata Shares at the direction of the Administrative Agent, to pay in reduction of the Class B Loans, any amount necessary to reduce the Class B Borrowing Base Deficiency Amount, if any, to zero;
(viii)    eighth, on or after the Interest Payment Date occurring in September 2021 (A) prior to the occurrence of a Specified Servicer Default, to the Lenders, at the direction of the Administrative Agent, the Principal Payment Amount to reduce the outstanding principal balance of the Loans (which amount shall be allocated to the Class A Loans and the Class B Loans pro rata based on the Class A Commitments and Class B Commitments (and thereafter allocated to each Class A Lender or Class B Lender, as applicable, based on their related Pro Rata Shares)) and (B) on and after the occurrence of a Specified Servicer Default, (1) first, to the Class A Lenders based on their Pro Rata Shares at the direction of the Administrative Agent, the Principal Payment Amount to reduce the outstanding principal balance of the Class A Loans and (2) second, after the Class A Loans have been reduced to zero, to the Class B Lenders based on their Pro Rata Shares at the direction of the Administrative Agent, the Principal Payment Amount to reduce the outstanding principal balance of the Class B Loans;
(xii)    twelfth, (A) prior to the occurrence of a Specified Servicer Default, on a pro rata basis, to the Class B Lenders (based on their Pro Rata Shares), at the direction of the Administrative Agent, to pay any other Obligations then due and owing to the Class B Lenders or Class B Indemnitees, (B) on and after the occurrence of a Specified Servicer Default until the Class A Loans have been reduced to zero, to the Class A Lenders based on their Pro Rata Shares at the direction of the Administrative Agent, to pay in reduction of the Class A Loans, an amount equal to any other Obligations then due and owing to the Class B Lenders or Class B Indemnitees that would have been paid to the Class B Lenders or Class B Indemnitees if clause (A) applied and (C) on and after the occurrence of a Specified Servicer Default, but only if the Class A Loans have been 

 
Exhibit 10.1

previously reduced to zero, on a pro rata basis, to the Class B Lenders (based on their Pro Rata Shares), at the direction of the Administrative Agent, to pay any other Obligations then due and owing to the Class B Lenders or Class B Indemnitees, including all unpaid Obligations that were due and owing but not paid to the Class B Lenders or Class B Indemnitees on previous Interest Payment Dates due to the application of clause (B);
(xiii)    thirteenth, (A) prior to the occurrence of a Specified Servicer Default, to pay all other Obligations or any other amount then due and owing hereunder; (B) on and after the occurrence of a Specified Servicer Default until the Class A Loans have been reduced to zero, to the Class A Lenders based on their Pro Rata Shares at the direction of the Administrative Agent, to pay in reduction of the Class A Loans, an amount equal to any other Obligations or any other amount then due and owing to the Class B Lenders or Class B Indemnitees that would have been paid to the Class B Lenders or Class B Indemnitees if clause (A) applied and (C) on and after the occurrence of a Specified Servicer Default, but only if the Class A Loans have been previously reduced to zero, to pay all other Obligations or any other amount then due and owing hereunder, including all unpaid Obligations or any other amounts that were due and owing but not paid to the Class B Lenders or Class B Indemnitees on previous Interest Payment Dates due to the application of clause (B); 
(xiv)    fourteenth, from the First Amendment Effective Date to but excluding the Relief Period End Date, (A) prior to the occurrence of a Specified Servicer Default, all remaining amounts to be applied on a pro rata basis, at the direction of the Administrative Agent, to the Class A Lenders and the Class B Lenders to repay the principal of the Loans (which amount shall be allocated to the Class A Loans and the Class B Loans pro rata based on the Class A Commitments and the Class B Commitments (and thereafter allocated to each Class A Lender or Class B Lender, as applicable, based on their related Pro Rata Shares)) and (B) on and after the occurrence of a Specified Servicer Default, all remaining amounts to be applied (1) first, to the Class A Lenders based on their Pro Rata Shares at the direction of the Administrative Agent, to repay the principal of the Class A Loans and (2) second, after the Class A Loans have been reduced to zero, to the Class B Lenders based on their Pro Rata Shares at the direction of the Administrative Agent, to repay the principal of the Class B Loans;
(xv)    fifteenth, (A) prior to the occurrence of a Specified Servicer Default, at the election of Company, on a pro rata basis, at the direction of the Administrative Agent, to the Class A Lenders and the Class B Lenders to repay the principal of the Loans (which amount shall be allocated to the Class A Loans and the Class B Loans pro rata based on the Class A Commitments and the Class B Commitments (and thereafter allocated to each Class A Lender or Class B Lender, as applicable, based on their related Pro Rata Shares)) and (B) on and after the occurrence of a Specified Servicer Default, at the election of Company, (1) first, to the Class A Lenders based on their Pro Rata Shares at the direction of the Administrative Agent, to repay the principal of the Class A Loans and (2) second, after the Class A Loans have been reduced to zero, to the Class B Lenders based on their Pro Rata Shares at the direction of the Administrative Agent, to repay the principal of the Class B Loans; and
(xvi)    sixteenth, to the extent that no Principal Payment Amount Adjustment Event would exist after giving effect to such distribution, any remainder to Company or as Company shall direct consistent with Section 6.5; provided, that if and to the extent a Principal Payment Amount Adjustment Event would occur after giving effect to any such distribution to the Company, then such amount of such distribution shall be paid to reduce the outstanding principal balance of the Loans, as follows: (A) prior to the occurrence of a Specified Servicer Default, such amount shall be 

 
Exhibit 10.1

allocated to the Class A Loans and the Class B Loans pro rata based on the Class A Commitments and Class B Commitments (and thereafter allocated to each Class A Lender or Class B Lender, as applicable, based on their related Pro Rata Shares), and (B) on and after the occurrence of a Specified Servicer Default, such amount shall be allocated (1) first, to the Class A Lenders based on their Pro Rata Shares at the direction of the Administrative Agent, to repay the principal of the Class A Loans and (2) second, after the Class A Loans have been reduced to zero, to the Class B Lenders based on their Pro Rata Shares at the direction of the Administrative Agent, to repay the principal of the Class B Loans.”
1.5    Section 2.11(b) of the Credit Agreement is hereby amended to restate clause (i) as set forth below:
(i) first, to Company, amounts sufficient for Company to maintain its limited liability company existence and to pay similar expenses up to an amount not to exceed $1,000 in any Fiscal Year, and only to the extent not previously distributed to Company during such Fiscal Year pursuant to Section 2.11(a)(i) or 2.11(a)(xvi) above;
1.6     Section 5.1(k) of the Credit Agreement is hereby amended as follows:
(a)    clause (i) is hereby amended and restated in its entirety as follows:
“(i)    on either Thursday or Friday of each week (or if such day is not a Business Day, the immediately preceding Business Day), a Borrowing Base Report;”
(b)    clause (iii) is hereby amended by replacing “; and” with “;”.
(c)     clause (iv) is hereby amended by replacing “.” with “; and”.
(d)    A new clause (v) is hereby added thereto as follows:
“(v) such other reporting specific to the Receivables or the Company as reasonably requested by the Administrative Agent or any Lender during the Relief Period, the Step Down Phase 1 Period and Step Down Phase 2 Period (including without limitation, measures of actual to scheduled contractual collections and Company’s liquidity on a weekly basis).”
1.7     Section 6.5 of the Credit Agreement is hereby amended by (x) replacing “Section 2.11(a)(xv)” with “Section 2.11(a)(xvi)” where it appears therein and (y) by replacing the portion thereof beginning with “[n]otwithstanding anything herein to the contrary” in its entirety with the following sentence:
Notwithstanding anything herein to the contrary herein, (i) on any Credit Date with respect to a Credit Extension, and (ii) on any date the Loans are repaid hereunder as described in the last sentence of Section 2.1(b) when the Early Amortization Period or Relief Period is not in effect and there is no Borrowing Base Deficiency, Company may without further action on the part of Company distribute the proceeds of such Credit Extension, or such amounts that have been released from the Reserve Account, as applicable, to Holdings so long as no Borrowing Base Deficiency has occurred or would result therefrom (each, a “Borrower Distribution”). For the avoidance of doubt, notwithstanding anything to the contrary herein, the Company shall not be permitted to make any Restricted Junior Payments during the Relief Period.

 
Exhibit 10.1

1.8    Section 7.1(c) of the Credit Agreement is hereby amended and restated as follows:
(c) Breach of Certain Covenants. (i) Failure of Company to perform or comply with any term or condition contained in Section 2.3, Section 2.10, Section 5.1(j), Section 5.2, Section 5.7 or Section 6, or failure to distribute Collections in accordance with Section 2.11, (ii) failure of Company to comply with any term or covenant in the letter agreement dated as of May 20, 2020 among Company, Holdings, the Administrative Agent and the Lenders or (iii) failure of Holdings to perform or comply with any term or condition contained in Section 6 of the Undertakings Agreement; or

1.9    Appendix C to the Credit Agreement.  Appendix C to the Credit Agreement is amended as set forth on Exhibit A hereto. 
1.10    Appendix D to the Credit Agreement.  Appendix D to the Credit Agreement is amended as set forth on Exhibit B hereto. 
1.11    Appendix E to the Credit Agreement.  Appendix E to the Credit Agreement is amended as set forth on Exhibit C hereto. 
1.12    Appendix F to the Credit Agreement.  A new Appendix F as set forth on Exhibit D hereto is hereby added to the Credit Agreement.
1.13    Appendix G to the Credit Agreement.  A new Appendix G as set forth on Exhibit E hereto is hereby added to the Credit Agreement.
SECTION 2.    AGREEMENT TO APPLY COLLECTIONS
The Company, Administrative Agent and the Lenders agree to apply all of the Collections, including the Retained April Collections, in the Collection Account as of the date hereof as set forth in the Borrowing Base Certificate delivered to the Administrative Agent and the Lenders on the First Amendment Effective Date to (i) distribute $1,808,332 to the Company to make a distribution to Holdings and (ii) to repay the Loans pro rata based on the Class A Commitments and Class B Commitments (and thereafter allocated to each Class A Lender or Class B Lender, as applicable, based on their related Pro Rata Shares).
SECTION 3.    REPRESENTATIONS AND WARRANTIES
In order to induce the Administrative Agent and the Lenders party hereto to enter into this Amendment, Company represents and warrants to the Administrative Agent and each Lender, on the First Amendment Effective Date, that the following statements are true and correct, it being understood and agreed that the representations and warranties made on the First Amendment Effective Date are deemed to be made concurrently with the consummation of the transactions contemplated hereby:
3.1    Due Authorization. The execution, delivery and performance of this Amendment have been duly authorized by all necessary action on the part of Company.
3.2    Binding Obligation. This Amendment has been duly executed and delivered by Company and is the legally valid and binding obligation of Company enforceable against Company in accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium 

 
Exhibit 10.1

or similar laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability.
3.3    Incorporation of Representations and Warranties from Credit Agreement. The representations and warranties contained in Section 4 of the Credit Agreement are true and correct in all material respects on and as of the First Amendment Effective Date (as defined below) as though made on and as of that date, except to the extent such representations and warranties specifically relate to an earlier date, in which case they were true and correct in all material respects on and as of such earlier date; provided that, in each case, such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof.
3.4    Absence of Certain Circumstances.  
(a)    No event has occurred and is continuing or will result from the consummation of the transactions contemplated by this Amendment that would constitute a Default, an Event of Default or a Servicer Default.
(b)    After giving effect to the amendments herein, no Borrowing Base Deficiency shall have occurred and be continuing under the Credit Agreement or will result from the consummation of the transactions contemplated by this Amendment.
SECTION 4.    MISCELLANEOUS
4.1    Conditions of Effectiveness. This Amendment (other than Section 4.10 below) shall become effective as of the date (such date, the “First Amendment Effective Date”) on which:
(a)    the Administrative Agent has received counterparts of (i) this Amendment executed by Company, the Administrative Agent and the Lenders party hereto, (ii) Amendment No. 1 to Asset Purchase Agreement, dated as of the First Amendment Effective Date, substantially in the form attached as Exhibit F hereto, executed by Company, On Deck Capital, Inc. (“Holdings”), the Lenders party thereto and the Administrative Agent, and (iii) Amendment No. 1 to Servicing Agreement, dated as of the First Amendment Effective Date, substantially in the form attached as Exhibit G hereto, executed by Company, Holdings, the Lenders party thereto and the Administrative Agent;
(b)    the Administrative Agent shall have received a pro forma Borrowing Base Certificate setting forth the calculations required to be provided pursuant to the form thereof, after giving effect to the application of all of the Collections, including the Retained April Collections, in the Collection Account as of the date hereof, in accordance with Section 2; 

(c)    no Borrowing Base Deficiency shall exist after giving effect to the amendments to the Credit Agreement set forth herein; and
(d)    the Company shall have paid in full (i) the Administrative Agent’s costs and expenses, including the fees and expenses of counsel to the Administrative Agent, in connection with this Amendment and the Temporary Waiver and (ii) the fees and expenses of counsel to the Lenders in connection with this Amendment and the Temporary Waiver. 
4.2    Reference to and Effect on the Credit Agreement and the Other Credit Documents. 

 
Exhibit 10.1

(a)       On and after the First Amendment Effective Date, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit Agreement, and each reference in the Credit Documents and the Related Agreements to “the Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement, as amended by this Amendment.  This Amendment is hereby designated as a Credit Document for all purposes of the Credit Documents.
(b)    This Amendment is hereby designated as a Credit Document.
(c)          Except as expressly set forth herein, no other amendments, changes or modifications to the Credit Agreement and each other Credit Document are intended or implied, and in all other respects the Credit Agreement and each other Credit Document are and shall continue to be in full force and effect and are hereby in all respects specifically ratified, restated and confirmed by all parties hereto as of the First Amendment Effective Date and Company shall not be entitled to any other further amendment by virtue of the provisions of this Amendment or with respect to the subject matter of this Amendment. To the extent of conflict between the terms of this Amendment and the other Credit Documents, the terms of this Amendment shall control. The Credit Agreement and this Amendment shall be read and construed as one agreement.
(d)      The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any Lender, the Administrative Agent, the Collateral Agent or the Paying Agent under the Credit Agreement, nor constitute a waiver of any provision of the Credit Agreement.
4.4    RELEASE.  IN CONSIDERATION OF THE AMENDMENTS CONTAINED HEREIN THE SUFFICIENCY OF WHICH IS HEREBY ACKNOWLEDGED, COMPANY, ON BEHALF OF ITSELF AND ITS SUBSIDIARIES, HEREBY IRREVOCABLY RELEASES AND FOREVER DISCHARGES THE ADMINISTRATIVE AGENT AND EACH LENDER AND EACH OF THEIR RESPECTIVE AFFILIATES AND ITS OFFICERS, PARTNERS, DIRECTORS, TRUSTEES, EMPLOYEES AND AGENTS (EACH, A “RELEASED PERSON”) OF AND FROM ALL DAMAGES, LOSSES, CLAIMS, DEMANDS, LIABILITIES, OBLIGATIONS, ACTIONS AND CAUSES OF ACTION WHATSOEVER WHICH ANY SUCH PERSON MAY NOW HAVE OR CLAIM TO HAVE ON AND AS OF THE DATE HEREOF AGAINST ANY RELEASED PERSON, WHETHER PRESENTLY KNOWN OR UNKNOWN, LIQUIDATED OR UNLIQUIDATED, SUSPECTED OR UNSUSPECTED, CONTINGENT OR NON-CONTINGENT, AND OF EVERY NATURE AND EXTENT WHATSOEVER WITH RESPECT TO THE CREDIT AGREEMENT AND THE OTHER CREDIT DOCUMENTS AND THE TRANSACTIONS CONTEMPLATED THEREBY (COLLECTIVELY, “CLAIMS”).  COMPANY REPRESENTS AND WARRANTS TO THE ADMINISTRATIVE AGENT AND EACH LENDER THAT NONE OF IT OR ITS SUBSIDIARIES HAS GRANTED OR PURPORTED TO GRANT TO ANY OTHER PERSON ANY INTEREST WHATSOEVER IN ANY CLAIM, AS SECURITY OR OTHERWISE.
4.5    Binding Effect. This Amendment shall be binding upon and inure to the benefit of each of the parties hereto, each of the Lenders and each of their respective successors and assigns.
4.6    Governing Law. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW) THEREOF.

 
Exhibit 10.1

4.7    Execution in Counterparts. This Amendment may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  The words “execution,” signed,” “signature,” and words of like import in this Amendment or in any other certificate, agreement or document related to this Amendment shall include images of manually executed signatures transmitted by facsimile or other electronic format (including, without limitation, “pdf”, “tif” or “jpg”) and other electronic signatures (including, without limitation, DocuSign and AdobeSign).  The use of electronic signatures and electronic records (including, without limitation, any contract or other record created, generated, sent, communicated, received, or stored by electronic means) shall be of the same legal effect, validity and enforceability as a manually executed signature or use of a paper-based record-keeping system to the fullest extent permitted by applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act and any other applicable law, including, without limitation, any state law based on the Uniform Electronic Transactions Act or the Uniform Commercial Code.
4.8    Headings. Section headings herein are included herein for convenience of reference only and shall not constitute a part hereof for any other purpose or be given any substantive effect.
4.9    Administrative Agent and Lender Consent.  Each of the Administrative Agent and the Lenders hereby consents to Amendment No. 1 to the Asset Purchase Agreement and Amendment No. 1 to the Servicing Agreement attached hereto as Exhibits F and G, respectively.
4.10    Extension of Temporary Waiver and Consent.   Effective as of the date hereof, the “Waiver Period” as defined in Section 1.1 of that certain Temporary Waiver and Consent, dated as of May 14, 2020, by and among the Company, solely with respect to Section 3 thereof, Holdings, the Lenders and the Administrative Agent, is hereby extended to end at the close of business on May 20, 2020.
IN WITNESS THEREOF, the parties hereto have caused this Amendment No. 1 to Credit Agreement to be executed by their respective officers thereunto duly authorized, as of the date first above written.

ONDECK ASSET FUNDING II LLC, 
as Company

By:    /s/ Kenneth A. Brause 
Name:    Kenneth A. Brause 
Title:      Chief Financial Officer

ARES AGENT SERVICES, L.P., 
as Administrative Agent

By: Ares Agent Services GP LLC,
its General Partner

By:    /s/ Jeffrey W. Kramer 
Name:    Jeffrey W. Kramer 
Title:      Authorized Signatory

 
Exhibit 10.1

LIBERTY MUTUAL INSURANCE COMPANY, 
as a Class A Lender 

By: Liberty Mutual Group Asset Management Inc., its Adviser

By:    /s/ Paul Mitrokostas 
Name:    Paul Mitrokostas 
Title:      Executive Vice President

PEERLESS INSURANCE COMPANY, 
as a Class A Lender 

By: Liberty Mutual Group Asset Management Inc., its Adviser

By:    /s/ Paul Mitrokostas 
Name:    Paul Mitrokostas 
Title:      Executive Vice President

EMPLOYERS INSURANCE COMPANY OF WAUSAU, 
as a Class A Lender 

By: Liberty Mutual Group Asset Management Inc., its Adviser

By:    /s/ Paul Mitrokostas 
Name:    Paul Mitrokostas 
Title:      Executive Vice President

THE OHIO CASUALTY INSURANCE COMPANY, 
as a Class A Lender 

By: Liberty Mutual Group Asset Management Inc., its Adviser

By:    /s/ Paul Mitrokostas 
Name:    Paul Mitrokostas 
Title:      Executive Vice President

 
Exhibit 10.1

LIBERTY MUTUAL FIRE INSURANCE COMPANY, as a Class A Lender 

By: Liberty Mutual Group Asset Management Inc., its Adviser

By:    /s/ Paul Mitrokostas 
Name:    Paul Mitrokostas 
Title:      Executive Vice President   

SAFECO INSURANCE COMPANY OF AMERICA, 
as a Class A Lender 

By: Liberty Mutual Group Asset Management Inc., its Adviser

By:    /s/ Paul Mitrokostas 
Name:    Paul Mitrokostas 
Title:      Executive Vice President  

ARES SECURED INCOME MASTER FUND LP, 
as a Class A Lender 

By: Ares Management LLC, 
its Manager

By:    /s/ Jeffrey W. Kramer 
Name:    Jeffrey W. Kramer 
Title:      Authorized Signatory

SONORAN CACTUS PRIVATE ASSET BACKED FUND, LLC, 
as a Class B Lender 

By:  Ares Cactus Operating Manager GP, LLC, its Manager

By:    /s/ Jeffrey W. Kramer 
Name:    Jeffrey W. Kramer 
Title:      Authorized Signatory 

 
Exhibit 10.1

GLENLAKE LOAN FUND, LLC, 
as a Class B Lender 

By:  Ares Management LLC, its Investment Manager

By:    /s/ Jeffrey W. Kramer 
Name:    Jeffrey W. Kramer 
Title:      Authorized Signatory

ARES CREDIT STRATEGIES INSURANCE DEDICATED FUND SERIES OF SALI MULTI-SERIES FUND, L.P., 
as a Class B Lender 

By:  Ares Management LLC, its investment subadvisor

By:    /s/ Matthew G. Jill 
Name:    Matthew G. Jill 
Title:      Authorized Signatory

SA REAL ASSETS 20 LIMITED, 
as a Class B Lender 

By:  Ares Management LLC, its investment manager

By:    /s/ Matthew G. Jill 
Name:    Matthew G. Jill 
Title:      Authorized Signatory

ARES ASSET-BACKED LOAN FUND LP, 
as a Class B Lender 

By:  Ares Capital Management III LLC, its
management company

By:    /s/ Jeffrey W. Kramer 
Name:    Jeffrey W. Kramer 
Title:      Authorized Signatory

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