Document:

Document

Exhibit 10.13

Zuora, Inc.
101 Redwood Shores Parkway
Redwood City, California    94065

November 16, 2021
Dear Jennifer:
This letter agreement (this “Agreement”) is made and entered into as of November 16, 2021 and confirms the terms of the agreement we have reached with you with respect to your departure and transition from Zuora, Inc. (“Zuora” or the “Company”).

1.Separation. You have provided notice to Zuora of your intention to retire as Zuora’s Senior Vice President, General Counsel and Corporate Secretary effective on February 11, 2022 (the “Transition Date”).  Following the Transition Date, you will serve as a non-officer employee in an advisory role reporting to Zuora’s Chief Executive Officer, until May 1, 2022 (the “Separation Date”). The period from the Transition Date through the Separation Date shall be referred to in this Agreement as the Transition Period. During the Transition Period, (a) you will continue to be paid your current base salary, (b) you will be eligible to participate in all Zuora-sponsored health and benefit plans, and (c) your outstanding Zuora equity awards will continue to vest. In addition, you will be eligible to receive the bonus payout for the period ending January 31, 2022 (“FY22”) under Zuora’s Cash Incentive Plan (including any true-up or true-down payment under such plan for FY22) at the time such bonus is generally paid to eligible employees, subject to taxes and withholdings. Notwithstanding the above, you acknowledge that you will not be eligible to receive a bonus payout under Zuora’s Cash Incentive Plan for any period  after FY22, or to be awarded any equity grants after the date of this Agreement.
2.Consulting Services. At the end of the Transition Period, you will cease being an employee of Zuora.  If you sign this Agreement and you sign a second release of all claims in substantially the form attached as Exhibit A hereto that becomes effective on or prior to the Separation Date, then from May 2, 2022 through July 31, 2022 (the “Consulting Period”), Zuora agrees to retain you as a consultant of Zuora and you agree that during the Consulting Period you will provide advisory and transition services to Zuora. Assignment of these services shall be at the direction of Zuora’s Chief Executive Officer and such employees as he may designate from time to time.  During the Consulting Period:
(a)Zuora will pay you a consulting fee of $250 per hour for your services rendered during the Consulting Period.  You agree to provide Zuora with an invoice (submitted to ZEO Success at mary.hartman@zuora.com) by the 15th day of each month indicating the number or hours/days worked in the prior calendar month.  You will be reimbursed by Zuora for all ordinary and reasonable direct expenses which you may incur in connection with your services during the Consulting Period, including travel expenses. You are solely responsible for providing, at your expense, those ordinary and necessary general and administrative resources needed for performance of the consulting services such as a cell phone or any related costs for internet service or telephone communication (although Zuora may provide a computer to you as may be 
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appropriate for purposes of performing the consulting services). Such general and administrative expenses are not eligible for reimbursement.
(b)Your status and relationship with Zuora shall be that of an independent contractor and consultant. You will receive an IRS form 1099 for the consulting fees paid by Zuora under this Agreement. You will be responsible for payment of federal, state and local taxes, contributions required under Social Security and any other taxes imposed with respect to your receipt of fees for your consulting services under this Agreement. 

(c)You will not be eligible to participate in any Zuora-sponsored compensation, welfare or employee benefits, or bonus or cash incentive plans. 

(d)Any inventions, improvements, concepts, or ideas made or conceived by you in connection with and during the performance of the consulting services under this Agreement shall be considered the sole and exclusive property of Zuora. Any work performed by you under this Agreement during the Consulting Period shall be considered a Work Made for Hire as that phrase is defined by the United States Copyright laws and shall be owned by and for the express benefit of Zuora. In the event it should be established that such work does not qualify as a Work Made for Hire, you agree to and do hereby assign to Zuora all of your right, title and interest in such work product including, but not limited to, all copyrights, patents, trademarks and other proprietary rights. Both during the Consulting Period and thereafter, you agree to fully cooperate with Zuora in the protection and enforcement of any intellectual property rights that may derive as a result of the services performed by you during the Consulting Period. This shall include executing, acknowledging and delivering to Zuora all documents or papers which may be necessary to enable Zuora to publish or protect said inventions, improvements, and ideas.

3.Equity Awards. Treatment of your unvested restricted share awards will be in accordance with the provisions of Zuora’s applicable equity incentive plan under which they were granted and the corresponding grant agreements (the “Equity Agreements”); provided, however, you understand and agree that notwithstanding anything to the contrary in the Equity Agreements, all of the restricted shares on which the restrictions have not lapsed and all unvested equity as of the Separation Date will be forfeited as of that date.  You acknowledge and agree that you have no rights in or with respect to Zuora’s stock other than as described in Paragraph 1 above and this Paragraph 3. Stock options you hold that are vested as of the Separation Date are exercisable with respect to the vested shares at any time until three months after the end of the Consulting Period (i.e. until October 31, 2022).  Except as expressly set forth in Paragraph 1 above and this Paragraph 3, all of the terms set forth in the Equity Agreements will remain in full force and effect.
4.Return of Company Property. You agree that on or before the Separation Date, you will return all Zuora assets including (without limitation) phones, keys, credit cards, card key passes and any other property that you received in connection with your employment including copies of documents that belong to Zuora and files stored on your computer(s) that contain information belonging to Zuora. With respect to any computer that may be provided to you for purposes of performing the consulting services, you agree to return such computer upon Zuora’s request (but not later than the end of the Consulting Period (i.e., July 31, 2022). 

5.General Release of all Claims.  In consideration for Zuora agreeing to provide you with the compensation described in Pargaraph 1 during the Transition Period, to the fullest extent permitted by law, you waive, release and promise never to assert any claims or causes of action, whether or not now known, against Zuora or its predecessors, successors or past or present subsidiaries, stockholders, directors, officers, employees, 
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consultants, attorneys, agents, assigns and employee benefit plans with respect to any matter, including (without limitation) any matter related to your employment with Zuora or the termination of that employment, including (without limitation) claims to attorneys’ fees or costs, claims of wrongful discharge, constructive discharge, emotional distress, defamation, invasion of privacy, fraud, breach of contract or breach of the covenant of good faith and fair dealing and any claims of discrimination, retaliation or harassment based on sex, age, race, national origin, disability or any other basis under the Title VII of the Civil Rights Act of 1964, the California Fair Employment and Housing Act, the Age Discrimination in Employment Act of 1967, the Americans with Disabilities Act and all other laws and regulations relating to employment.  However, this release covers only those claims that arose prior to the execution of this Agreement and only those claims that may be waived by applicable law.  Execution of this Agreement does not bar any claim that arises hereafter, including (without limitation) a claim for breach of this Agreement and does not waive any claims for alleged work-related injuries that you have filed with Zuora’s workers’ compensation insurance company.
6.Waiver.  You expressly waive and release any and all rights and benefits under Section 1542 of the California Civil Code (or any analogous law of any other state), which reads as follows:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.
7.Effective Date and Revocation. You have up to 21 days after you receive this Agreement to review it.  You are advised to consult an attorney of your own choosing (at your own expense) before signing this Agreement.  Furthermore, you have up to seven days after you sign this Agreement to revoke it.  If you wish to revoke this Agreement after signing it, you may do so by delivering a letter of revocation to me.  If you do not revoke this Agreement, the eighth day after the date you sign it will be the “Effective Date.”  Because of the seven-day revocation period, no part of this Agreement will become effective or enforceable until the Effective Date.

8.Legal Proceedings. You agree that you will cooperate fully with Zuora, regarding existing and future legal or administrative proceedings or asserted claims relating to events which occurred during your employment in which Zuora is a party, and as to which you might in Zuora’s view have personal knowledge, including without limitation the execution of affidavits or other documents providing information requested by Zuora.  

9.Nondisclosure, Assignment and Non-Solicitation Agreement.  You agree that at all times during and after your employment with Zuora, you were and shall remain bound by the Employee Nondisclosure, Assignment and Non-Solicitation Agreement dated May 1, 2015 between you and Zuora (the “Nondisclosure Agreement”).

10.Confidential and Proprietary Information. Without in any way limiting your general legal obligation to maintain the confidentiality of Zuora confidential and proprietary information, as a condition of receiving any of the benefits and payments provided by this Agreement, you agree to keep all confidential and proprietary information of Zuora, its subsidiaries and affiliated companies, including joint venture partners, strictly confidential, and not to disclose any such confidential or proprietary information to any other person except to the extent that disclosure is required by law, court order, or governmental inquiry. For purposes of this paragraph, confidential and proprietary information includes, but is not limited to, any non-public trade secret or commercially sensitive or valuable information concerning the business affairs, customers, 
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technologies, and personnel of Zuora and any of its affiliated entities, and includes among other information:
 
												
	 	•	 	information that is related to any programs or procurements in which you have been involved or about which you have obtained information during your employment at Zuora;

 
												
	 	•	 	information concerning Zuora’s customers, clients, or prospects, and their products, processes and policies;

 
												
	 	•	 	information concerning the management, policies, strategies, product development plans and finances of Zuora; and

 
												
	 	•	 	information regarding the officers and employees of Zuora.

You hereby agree to return to Zuora all Zuora confidential and proprietary information and property, whether located in files, memoranda, documents, or on computers, laptops, phones, removable media or other portable storage devices, and that you will not misappropriate, upload or download, transfer to any third party, or otherwise share or distribute Zuora confidential or proprietary data. You may retain your rolodex and a copy of your electronic address book to the extent they only contain contact information.
11.Insider Information. During your employment with Zuora, you have been treated as an “insider” for securities law purposes. Please review your obligations regarding your treatment of insider information, and remember that any financial plan, program, estimate, financial performance data or matter not readily available to the general public shall be maintained in strict confidence and may not be disclosed or discussed publicly. Remember that you remain subject to Zuora’s Insider Trading Policy through the end of the Consulting Period.

12.Governing Law and Arbitration. This Agreement shall be governed by and construed and enforced in accordance with the laws of California (other than their choice-of law provisions). Any dispute arising under this Agreement shall be settled exclusively through arbitration in San Mateo County, California. Such arbitration shall be conducted in accordance with the rules of the American Arbitration Association before a single arbitrator. The decision of the arbitrator shall be final and binding on both parties. Judgment may be entered on the award of the arbitrator in any court having proper jurisdiction.

13.Entire Agreement. Except as expressly provided in this Agreement, this Agreement renders null and void and completely supersedes any prior written, oral or other agreements or representation between you and Zuora (including the Change in Control and Severance Agreement between you and Zuora dated May 15, 2017) and this Agreement constitutes the entire agreement between you and Zuora regarding the subject matter of this Agreement. You acknowledge that you have not relied on any representations, promises, or agreements of any kind made in connection with your decision to sign this Agreement except for those set forth in this Agreement. This Agreement may be modified only in a written document signed by you and a duly authorized officer of Zuora.

14.Severability.  If any term of this Agreement is held to be invalid, void or unenforceable, the remainder of this Agreement will remain in full force and effect and will in no way be affected, and the parties will use their best efforts to find an alternate way to achieve the same result.

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15.Execution.  This Agreement may be executed in counterparts, each of which will be considered an original, but all of which together will constitute one agreement.  Execution of a facsimile or electronic copy will have the same force and effect as execution of an original, and a facsimile or electronic signature will be deemed an original and valid signature.

[Signature page follows]

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Please indicate your agreement with the above terms by signing below.

Very truly yours,
ZUORA, INC.
By:  /s/ Laura Robblee
Laura Robblee
Senior Vice President, ZEO Success
I agree to the terms of this Agreement, and I am voluntarily signing this release of all claims.  I acknowledge that I have read and understand this Agreement, and I understand that I cannot pursue any of the claims and rights that I have waived in this Agreement at any time in the future.
/s/ Jennifer Pileggi
Jennifer W. Pileggi
Dated: November 16, 2021

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EXHIBIT A
RELEASE
This General Release of All Claims (the “Release”) is entered into between Jennifer W. Pileggi (“Employee”) and Zuora, Inc. (the “Company”) (collectively, the “parties”).

WHEREAS, in November 2021, Employee and the Company entered into an agreement regarding Employee’s transition and separation from employment with the Company (the “Letter Agreement,” to which this Release is attached as Exhibit A);

WHEREAS, Employee’s employment with the Company terminated on May 1, 2022 (the “Separation Date”) and the Company has determined that Employee cooperatively and diligently provided services through the Separation Date; 

NOW THEREFORE, in consideration for the mutual promises and undertakings of the parties as set forth below, Employee and the Company hereby enter into this Release.

1.Acknowledgment of Payment of Wages:  By her signature below, Employee acknowledges that, on the Separation Date, the Company paid him for all wages, salary, vacation, bonuses, commissions, reimbursable expenses, and any similar payments due him from the Company as of the Separation Date.  By signing below, Employee acknowledges that the Company does not owe him any other amounts, except as may become payable under the Letter Agreement and this Release.
2.Return of Company Property:  Employee hereby warrants to the Company that she has returned to the Company all property or data of the Company of any type whatsoever that has been in her possession, custody or control (except for such items that the Company may provide for purposes of Employee’s consulting services during the Consulting Period.
3.Consideration:  In exchange for Employee’s agreement to this Release and her other promises in the Letter Agreement and herein, the Company agrees to provide Employee with the consideration set forth in Paragraph 2 of the Letter Agreement.  By signing below, Employee acknowledges that she is receiving the consideration in exchange for waiving her rights to claims referred to in this Release and she would not otherwise be entitled to the consideration.  
4.General Release and Waiver of Claims:  
a.The payments and promises set forth in this Release are in full satisfaction of all accrued salary, vacation pay, bonus and commission pay, profit-sharing, stock, stock options or other ownership interest in the Company, termination benefits or other compensation to which Employee may be entitled by virtue of her employment with the Company or her separation from the Company, including pursuant to the Letter Agreement.  To the fullest extent permitted by law, Employee hereby releases and waives any other claims she may have against the Company and its owners, agents, officers, shareholders, employees, directors, attorneys, subscribers, subsidiaries, affiliates, successors and assigns (collectively “Releasees”), whether known or not known, including, without limitation, claims under any employment laws, including, but not limited to, claims of unlawful discharge, breach of contract, breach of the covenant of good faith and fair dealing, fraud, violation of public policy, defamation, physical injury, emotional distress, claims for additional compensation or benefits arising out of her employment or separation of employment, claims under Title VII of the 1964 Civil Rights Act, as amended, the California Fair Employment and Housing Act and any other laws and/or regulations relating to employment or employment discrimination, including, without limitation, claims based on age or under the Age Discrimination in Employment Act or Older Workers Benefit Protection Act, and/or claims based on disability or under the Americans with Disabilities Act. 
b.By signing below, Employee expressly waives any benefits of Section 1542 of the Civil Code of the State of California, which provides as follows:

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER WOULD HAVE MATERIALLY 
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AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.
c.Employee and the Company do not intend to release claims that she may not release as a matter of law, including but not limited to claims for indemnity under California Labor Code Section 2802, or any claims for enforcement of this Release.  To the fullest extent permitted by law, any dispute regarding the scope of this general release shall be determined by an arbitrator under the procedures set forth in the arbitration clause set forth in the Letter Agreement.
5.Nondisparagement:  Employee agrees that she will not disparage Releasees or their products, services, agents, representatives, directors, officers, shareholders, attorneys, employees, vendors, affiliates, successors or assigns, or any person acting by, through, under or in concert with any of them, with any written or oral statement.  Nothing in this section shall prohibit Employee from providing truthful information in response to a subpoena or other legal process. 
6.No Admission of Liability:  This Release is not and shall not be construed or contended by Employee to be an admission or evidence of any wrongdoing or liability on the part of Releasees, their representatives, heirs, executors, attorneys, agents, partners, officers, shareholders, directors, employees, subsidiaries, affiliates, divisions, successors or assigns.  This Release shall be afforded the maximum protection allowable under California Evidence Code Section 1152 and/or any other state or federal provisions of similar effect.
7.Complete and Voluntary Agreement:  This Release, together with the Letter Agreement, Employee Nondisclosure, Assignment and Non-Solicitation Agreement, constitute the entire agreement between Employee and Releasees with respect to the subject matter hereof and supersedes all prior negotiations and agreements, whether written or oral, relating to such subject matter.  Employee acknowledges that neither Releasees nor their agents or attorneys have made any promise, representation or warranty whatsoever, either express or implied, written or oral, which is not contained in this Release for the purpose of inducing Employee to execute this Release, and Employee acknowledges that he has executed this Release in reliance only upon such promises, representations and warranties as are contained herein, and that Employee is executing this Release voluntarily, free of any duress or coercion.
8.Review of Release; Effective Date and Revocation:  You have up to 21 days after you receive this Agreement to review and sign it; however, you may sign this Agreement at any time after you receive it if you wish to do so.  You are advised to consult an attorney of your own choosing (at your own expense) before signing this Agreement.  Furthermore, you have up to seven days after you sign this Agreement to revoke it.  If you wish to revoke this Agreement after signing it, you may do so by delivering a letter of revocation to me.  If you do not revoke this Agreement, this Agreement will become effective on the eighth day after the date you sign it (the “Effective Date”). Employee also understands that he may revoke this Release within seven (7) days of signing this document and that the consideration to be provided to him pursuant to Section 2 of the Letter Agreement will be provided only following expiration of that seven (7) day revocation period and in accordance with the timing set forth in the Letter Agreement.
9.Severability:  The provisions of this Release are severable, and if any part of it is found to be invalid or unenforceable, the other parts shall remain fully valid and enforceable.  Specifically, should a court, arbitrator, or government agency conclude that a particular claim may not be released as a matter of law, it is the intention of the parties that the general release, the waiver of unknown claims above shall otherwise remain effective to release any and all other claims.
10.Other Terms of Letter Agreement Incorporated Herein:  All other terms of the Letter Agreement to the extent not inconsistent with the terms of this Release are hereby incorporated in this Release as though fully stated herein and apply with equal force to this Release, including, without limitation, the provisions on Arbitration, Governing Law, and Attorneys’ Fees.

Dated: ____________________    ________________________________
Laura Robblee
Chief Human Resources Officer
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Zuora, Inc.

Dated: ____________________                ________________________________
                            Jennifer W. Pileggi

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Exhibit 10.14

CHANGE IN CONTROL AND SEVERANCE AGREEMENT

This Change in Control and Severance Agreement (the “Agreement”) is entered into by and between ____________ (the “Executive”) and Zuora, Inc., a Delaware corporation (the “Company”), and is effective as of the date last signed below (the “Effective Date”).

1.Agreement.

This Agreement shall terminate on the date the Executive’s employment with the Company terminates for a reason other than a Qualifying Termination or CIC Qualifying Termination; provided, however, if a definitive agreement relating to a Change in Control has been signed by the Company then this Agreement shall remain in effect through the earlier of:

(a)    The date the Executive’s employment with the Company terminates for a reason other than a Qualifying Termination or CIC Qualifying Termination, or

(b)    The date the Company has met all of its obligations under this Agreement following a termination of the Executive’s employment with the Company due to a Qualifying Termination or CIC Qualifying Termination.

2.    Qualifying Termination.  If the Executive is subject to a Qualifying Termination, then, subject to Sections 4, 8, and 9 below, Executive will be entitled to the following benefits:

(a)    Severance Payment.  The Company shall pay the Executive an amount equal to six (6) months of his or her monthly base salary (at the rate in effect immediately prior to the actions that resulted in the Qualifying Termination).  The Executive will receive his or her severance payment in a cash lump sum which will be made on the first business day occurring after the sixtieth (60th) day following the Separation, provided that the Release Conditions have been satisfied.  If Executive is subject to a Qualifying Termination, no Equity Awards (as defined below) shall accelerate, except as may be provided in an individual equity award agreement between Executive and the Company.

(b)    Continued Employee Benefits.  If Executive timely elects continued coverage under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”), the Company shall pay the full amount of Executive’s COBRA premiums on behalf of the Executive for the Executive’s continued coverage under the Company’s health, dental and vision plans, including coverage for the Executive’s eligible 
dependents, for the six (6)-month period following the Executive’s Separation or, if earlier, until Executive is eligible to be covered under another substantially equivalent medical insurance plan by a subsequent employer; provided that if the Company determines that it cannot provide the payment of COBRA on behalf of the Executive without violating applicable law or incurring additional expense under applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Company will provide Executive, in lieu thereof, a taxable lump sum payment for the balance of the six (6)-month COBRA period, which payment will equal 100% of the applicable COBRA premium for the Executive and any dependents.  The number of months of COBRA to be paid, in the event of a cash payment under the preceding sentence, shall be reduced by the number of months of COBRA premiums previously paid by the Company.

3.    CIC Qualifying Termination.  If the Executive is subject to a CIC Qualifying Termination, then subject to Sections 4, 8, and 9 below, Executive will be entitled to the following benefits:

(a)    Severance Payment.  The Company or its successor shall pay the Executive an amount equal to (i) [twelve (12) months]1 [eighteen (18) months]2 of his or her monthly base salary (at the rate in effect immediately prior to the actions that resulted in the Separation) plus (ii) the Executive’s prorated target bonus for the fiscal year in which the Executive’s Separation occurred.  The prorated target bonus will be determined based on the Executive’s annual target bonus for the applicable fiscal year multiplied 

1 Bracketed language applies to Zuora’s executives other than the Chief Executive Officer. 
2 Bracketed language applies only to Zuora’s Chief Executive Officer.

by the quotient obtained by dividing the number of days in such fiscal year (up to and including the Separation date) by 365.  The Executive will receive his or her severance payment in a cash lump sum which will be made on the first business day occurring after the sixtieth (60th) day following the Separation, provided that the Release Conditions have been satisfied.

(b)    Equity.  Each of Executive’s then outstanding unvested Equity Awards (as defined  below), shall accelerate and become vested and exercisable as follows: (A) with respect to unvested time-based Equity Awards (i.e., Equity Awards not subject to the satisfaction of performance goals over a performance period), 100% of the then unvested shares shall become fully vested and exercisable, and (B) with respect to unvested Equity Awards that vest subject to the satisfaction of performance goals over a performance period, the applicable performance goals shall be deemed achieved at 100% of target level of performance.  “Equity Awards” means all options to purchase shares of Company common stock, restricted stock units, and all other stock-based awards granted to the Executive, including but not limited to stock bonus awards, restricted stock or stock appreciation rights. Subject to Section 4, the accelerated vesting described above shall be effective as of the date of the Separation.

(c)    Continued Employee Benefits.  If Executive timely elects continued coverage under COBRA, the Company shall pay the full amount of Executive’s COBRA premiums on behalf of the Executive for the Executive’s continued coverage under the Company’s health, dental and vision plans, including coverage for the Executive’s eligible dependents, for the twelve (12)-month period following the Executive’s Separation or, if earlier, until Executive is eligible to be covered under another substantially equivalent medical insurance plan by a subsequent employer; provided that if the Company determines that it cannot provide the payment of COBRA on behalf of the Executive without violating applicable law or incurring additional expense under applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Company will provide Executive, in lieu thereof, a taxable lump sum payment for the balance of the twelve (12)-month COBRA period, which payment will equal 100% of the applicable COBRA premium for the Executive and any dependents.  The number of months of COBRA to be paid, in any case, shall be reduced by the number of months of COBRA previously paid by the Company.

(d)    Benefits True Up.  In the event the Executive terminates pursuant to a Qualifying Termination under Section 2 and that termination is later determined by the Company to qualify as a CIC Qualifying Termination, then the Company shall make a true-up payment to Executive so that the aggregate of all benefits provided to Executive are equal to those in this Section 3.  Notwithstanding the timing described in Sections 3(a), 3(b) and 3(c), this true-up payment will occur on the closing of the Change in Control, and any equity awards that would otherwise forfeit upon a Qualifying Termination shall remain outstanding and eligible to vest for three (3) months following such Qualifying Termination to permit the 100% acceleration described in Section 3(b) above.

4.    General Release.  Any other provision of this Agreement notwithstanding, the benefits under Sections 2 and 3 shall not apply unless the Executive (i) has executed a general release (in a form prescribed by the Company) of all known and unknown claims that he or she may then have against the Company or persons affiliated with the Company and such release has become effective and (ii) has agreed not to prosecute any legal action or other proceeding based upon any of such claims.  The release must be in the form prescribed by the Company, without alterations (this document effecting the foregoing, the “Release”).  The Company will deliver the form of Release to the Executive within thirty (30) days after the Executive’s Separation.  The Executive must execute and return the Release within the time period specified in the form, and, in all events, within sixty (60) days following the termination event described in Sections 2 or 3, as applicable.

5.    Accrued Compensation and Benefits.  Notwithstanding anything to the contrary in Sections 2 and 3 above, the Company shall pay Executive’s earned but unpaid base salary and other vested but unpaid cash entitlements for the period through and including the termination of employment, including unused earned vacation pay and unreimbursed documented business expenses incurred by Executive prior to the date of termination (collectively “Accrued Compensation and Expenses”).  In addition, Executive shall be entitled to any other vested benefits earned by Executive for the period through and including the termination date of Executive’s employment under any other employee benefit plans and arrangements maintained by the Company, in accordance with the terms of such plans and arrangements, except as may 

be modified herein (collectively “Accrued Benefits”).  Any Accrued Compensation and Expenses to which the Executive is entitled shall be paid to the Executive in cash as soon as administratively practicable after the termination, and, in any event, no later than two and one-half (2-1/2) months after the end of the taxable year in which the termination of the Executive occurs or at such earlier time as may be required by applicable law.  Any Accrued Benefits to which the Executive is entitled shall be paid to the Executive as provided in the relevant plans and arrangements.

6.    Definitions.

(a)    “Cause” means Executive (i) has been convicted of, or has pleaded guilty or nolo contendere to, any felony or to any crime involving moral turpitude, (ii) has engaged in willful misconduct in the performance of his or her duties, (iii) has materially failed or refused to perform the material duties of his or her position with the Company after having received written notice from the Company that such failure or refusal would constitute “Cause” hereunder and not having corrected such failure or refusal to the reasonable satisfaction of the Company within thirty (30) days of the Company’s delivery of such written notice of failure or refusal, (iv) has engaged in gross negligence in the performance of his or her duties, (v) has breached the Company’s Employee Nondisclosure, Assignment and Non-Solicitation Agreement, or (vi) has committed any act of fraud, theft, embezzlement, misappropriation of funds, breach of fiduciary duty or other willful act of material dishonesty against the Company that results in economic or reputational harm to the Company.

(b)    “Change in Control” means the occurrence of any of the following events: (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the total voting power represented by the Company’s then outstanding voting securities; or (ii) the consummation of the sale or disposition by the Company of all or substantially all of the Company’s assets; or (iii) the consummation of a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation; provided that such event in (i) through (iii) (including any series of such events) also qualifies as a “change in control event” under Code Section 409A.

(c)    “CIC Qualifying Termination” means a Separation (i) within the twelve (12) months immediately following a Change in Control or (ii) within the three (3) months immediately preceding a Change in Control, but as to part (ii) only if the Separation occurs following a Potential Change in Control, in each case, resulting from (A) the Company terminating the Executive’s employment for any reason other than Cause or (B) the Executive voluntarily resigning his or her employment for Good Reason.  A termination or resignation due to the Executive’s death or disability shall not constitute a CIC Qualifying Termination.  A “Potential Change in Control” means the date of execution of a definitive agreement for a corporate transaction which, if consummated, would constitute the applicable Change in Control.  In the case of a termination following a Potential Change in Control and before the consummation of a Change in Control, solely for purposes of benefits under this Agreement, the date of Separation will be deemed the date the Executive’s employment terminated.

(d)    “Code” means the Internal Revenue Code of 1986, as amended.

(e)    “Good Reason” means the occurrence of any of the following events or conditions, without Executive’s express written consent (i) a material reduction of the Executive’s primary job duties or level of responsibility (collectively, “Duties”) relative to the Executive’s Duties that were in effect immediately prior to the Change in Control; provided, however, that for purposes of this clause, a material reduction in the Executive’s Duties will not be deemed to occur [(A) if the Company is acquired and made a division or business unit of a larger entity, and following the consummation of the Change in Control the Executive retains similar Duties for such division or business unit of the acquiring 

corporation, but not for the entire acquiring corporation, or (B)]3 solely because of a change in title; (ii) a ten percent (10%) or greater reduction in then-current annual base salary or annual bonus target (other than an across-the-board salary reduction for all similarly situated executives then employed by the acquirer); or (iii) relocation of Executive’s primary work office to an office or location that would increase Executive’s one-way commute to more than fifty (50) miles from Executive’s current residence.  With respect to each of subsections (i), (ii), and (iii) above, Executive must provide notice to the Company of the condition giving rise to “Good Reason” within thirty (30) days of the initial existence of such condition, and the Company will have thirty (30) days following such notice to remedy such condition.  Executive must resign Executive’s employment no later than fifteen (15) days following expiration of the Company’s thirty (30) day cure period or written receipt from the Company of its intent not to cure.

(f)    “Qualifying Termination” means a Separation that is not a CIC Qualifying Termination, but which results from [(i)] the Company terminating the Executive’s employment for any reason other than Cause[ or (ii) the Executive voluntarily resigning his employment for Good Reason]4.  A termination or resignation due to the Executive’s death or disability shall not constitute a Qualifying Termination.

(g)    “Release Conditions” means (i) the Company has received the Executive’s executed Release and (ii) any rescission period applicable to the Executive’s executed Release has expired such that the Release is effective.

(h)    “Separation” means a “separation from service,” as defined in the regulations under Section 409A of the Code.

7.    Successors.

(a)    Company’s Successors.  The Company shall require any successor (whether direct or indirect and whether by purchase, lease, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets, by an agreement in substance and form satisfactory to the Executive, to assume this Agreement and to agree expressly to perform this Agreement in the same manner and to the same extent as the Company would be required to perform it in the absence of a succession.  For all purposes under this Agreement, the term “Company” shall include any successor to the Company’s business and/or assets or which becomes bound by this Agreement by operation of law.

(b)    Executive’s Successors.  This Agreement and all rights of the Executive hereunder shall inure to the benefit of, and be enforceable by, the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.

8.    Golden Parachute Taxes.

(a)    Best After-Tax Result.  In the event that any payment or benefit received or to be received by Executive pursuant to this Agreement or otherwise (“Payments”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code and (ii) but for this subsection (a), be subject to the excise tax imposed by Section 4999 of the Code, any successor provisions, or any comparable federal, state, local or foreign excise tax (“Excise Tax”), then such Payments shall be either (A) provided in full or (B) provided as to such lesser extent which would result in no portion of such Payments being subject to the Excise Tax (“Reduced Amount”), whichever of the foregoing amounts, taking into account the applicable federal, state, local and foreign income, employment and other taxes and the Excise Tax (including, without limitation, any interest or penalties on such taxes), results in the receipt by Executive, on an after-tax basis, of the greatest amount of payments and benefits provided for hereunder or otherwise, notwithstanding that all or some portion of such Payments may be subject to the Excise Tax.  Unless the Company and Executive otherwise agree in writing, any determination required under this Section shall be made by independent tax counsel designated by the Company and reasonably acceptable to Executive (“Independent Tax Counsel”), whose determination shall be conclusive and 

3 Bracketed language applies to Zuora’s executives other than the Chief Executive Officer, Chief Financial Officer, Chief Legal Officer, Chief Revenue Officer and Chief Human Resources Officer.
4 This subsection 6(f)(ii) applies only to the Chief Executive Officer.

binding upon Executive and the Company for all purposes.  For purposes of making the calculations required under this Section, Independent Tax Counsel may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code; provided that Independent Tax Counsel shall assume that Executive pays all taxes at the highest marginal rate.  The Company and Executive shall furnish to Independent Tax Counsel such information and documents as Independent Tax Counsel may reasonably request in order to make a determination under this Section.  The Company shall bear all costs that Independent Tax Counsel may reasonably incur in connection with any calculations contemplated by this Section.  In the event that the above clause (ii)(B) of this Section applies, then based on the information provided to Executive and the Company by Independent Tax Counsel, Executive may, in Executive’s sole discretion and within thirty (30) days of the date on which Executive is provided with the information prepared by Independent Tax Counsel, determine which and how much of the Payments (including the accelerated vesting of equity compensation awards) to be otherwise received by Executive shall be eliminated or reduced (as long as after such determination the value (as calculated by Independent Tax Counsel in accordance with the provisions of Sections 280G and 4999 of the Code) of the amounts payable or distributable to Executive equals the Reduced Amount).

9.    Miscellaneous Provisions.

(a)    Section 409A.  To the extent (i) any payments to which Executive becomes entitled under this Agreement, or any agreement or plan referenced herein, in connection with Executive’s termination of employment with the Company constitute deferred compensation subject to Section 409A of the Code and (ii) Executive is deemed at the time of such termination of employment to be a “specified” employee under Section 409A of the Code, then such payment or payments shall not be made or commence until the earlier of (A) the expiration of the six (6)-month period measured from the Executive’s Separation; or (B) the date of Executive’s death following such Separation; provided, however, that such deferral shall only be effected to the extent required to avoid adverse tax treatment to Executive, including (without limitation) the additional twenty percent (20%) tax for which Executive would otherwise be liable under Section 409A(a)(1)(B) of the Code in the absence of such deferral.  Upon the expiration of the applicable deferral period, any payments which would have otherwise been made during that period (whether in a single sum or in installments) in the absence of this paragraph shall be paid to Executive or Executive’s beneficiary in one lump sum (without interest).  Except as otherwise expressly provided herein, to the extent any expense reimbursement or the provision of any in-kind benefit under this Agreement (or otherwise referenced herein) is determined to be subject to (and not exempt from) Section 409A of the Code, the amount of any such expenses eligible for reimbursement, or the provision of any in-kind benefit, within one calendar year shall not affect the expenses eligible for reimbursement or in-kind benefits to be provided in any other calendar year; in no event shall any expenses be reimbursed after the last day of the calendar year following the calendar year in which Executive incurred such expenses, and in no event shall any right to reimbursement or the provision of any in-kind benefit be subject to liquidation or exchange for another benefit.  To the extent that any provision of this Agreement is ambiguous as to its exemption or compliance with Section 409A, the provision will be read in such a manner so that all payments hereunder are exempt from Section 409A to the maximum permissible extent, and for any payments where such construction is not tenable, that those payments comply with Section 409A to the maximum permissible extent.  To the extent any payment under this Agreement may be classified as a “short-term deferral” within the meaning of Section 409A, such payment shall be deemed a short-term deferral, even if it may also qualify for an exemption from Section 409A under another provision of Section 409A.  Payments pursuant to this Agreement (or referenced in this Agreement) are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the regulations under Section 409A.  Notwithstanding anything to the contrary in this Agreement, if the period of time comprising (x) the time to consider and make effective the Release and (y) the time after the expiration or cessation of any cure period or attempt to cure Good Reason, spans two calendar years, then, any payments that constitute deferred compensation subject to Section 409A will be made in the second calendar year.

(b)    Other Arrangements.  This Agreement supersedes any and all cash severance arrangements and vesting acceleration arrangements on change in control under any prior option agreement, restricted stock unit agreement, severance and salary continuation arrangements, programs and plans which were previously offered by the Company to the Executive, including change in control 

severance arrangements pursuant to an employment agreement or offer letter, and Executive hereby waives Executive’s rights to such other benefits.  In no event shall any individual receive cash severance benefits under both this Agreement and any other severance pay or salary continuation program, plan or other arrangement with the Company.  For the avoidance of doubt, in no event shall Executive receive benefits under both Sections 2 and 3 with respect to Executive’s Separation.

(c)    Dispute Resolution.  To ensure rapid and economical resolution of any and all disputes that might arise in connection with this Agreement, Executive and the Company agree that any and all disputes, claims, and causes of action, in law or equity, arising from or relating to this Agreement or its enforcement, performance, breach, or interpretation, will be resolved solely and exclusively by final, binding, and confidential arbitration, by a single arbitrator, in San Francisco County, and conducted by Judicial Arbitration & Mediation Services, Inc. (“JAMS”) under its then-existing employment rules and procedures.  Nothing in this Section 9(c), however, is intended to prevent either party from obtaining injunctive relief in court to prevent irreparable harm pending the conclusion of any such arbitration.  Each party to an arbitration or litigation hereunder shall be responsible for the payment of its own attorneys’ fees. 

(d)    Notice.  Notices and all other communications contemplated by this Agreement shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by U.S. registered or certified mail, return receipt requested and postage prepaid or deposited with Federal Express Corporation, with shipping charges prepaid.  In the case of the Executive, mailed notices shall be addressed to him or her at the home address which he or she most recently communicated to the Company in writing.  In the case of the Company, mailed notices shall be addressed to its corporate headquarters, and all notices shall be directed to the attention of its Secretary.

(e)    Waiver.  No provision of this Agreement shall be modified, waived or discharged unless the modification, waiver or discharge is agreed to in writing and signed by the Executive and by an authorized officer of the Company (other than the Executive).  No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time.

(f)    Withholding Taxes.  All payments made under this Agreement shall be subject to applicable withholding and income taxes.

(g)    Severability.  The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision hereof, which shall remain in full force and effect.

(h)    At-Will Employment.  Nothing in this Agreement shall confer upon the Executive any right to continue in service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company or any subsidiary of the Company or of the Executive, which rights are hereby expressly reserved by each, to terminate his or her service at any time and for any reason.

(i)    Choice of Law.  The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of California (other than its choice-of-law provisions).

[Signature Page to Change in Control and Severance Agreement Follows]

IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by its duly authorized officer, as of the date last signed below.  This Agreement may be signed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

									
	EXECUTIVE:	ZUORA, INC.
			
			
	__________________________________	__________________________________
	Name:	By: 	
		Title:	
	Date: ___________________	Date: ___________________

[Signature Page to Change in Control and Severance Agreement]

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