Document:

Document

Exhibit 10.16

AMENDMENT NO. 5 TO ADMINISTRATION AGREEMENT
THIS AMENDMENT NO. 5 TO ADMINISTRATION AGREEMENT (this “Amendment”), dated as of November 12, 2018 and made effective as of October 1, 2018, is entered into by and among PROSPER FUNDING LLC (the “Company” and the “Licensor”), PROSPER MARKETPLACE, INC., in its capacity as the Licensee (“Licensee”), PROSPER MARKETPLACE, INC., in its separate capacity as the Corporate Administrator (the “Corporate Administrator”), PROSPER MARKETPLACE, INC., in its separate capacity as the Loan Platform Administrator (the “Loan Platform Administrator”), and PROSPER MARKETPLACE, INC., in its separate capacity as the Loan and Note Servicer (the “Loan and Note Servicer”).
RECITALS
WHEREAS, the parties hereto entered into that certain Administration Agreement dated as of January 22, 2013 and made effective as of February 1, 2013, pursuant to which Prosper Marketplace, Inc. provides Prosper Funding LLC certain corporate administration services and platform administration services, and services all Borrower Loans and Securities (as heretofore amended or otherwise modified, the “Administration Agreement”); 
WHEREAS, the parties hereto have previously amended the Administration Agreement pursuant to that certain Amendment No. 1 to Administration Agreement dated as of January 1, 2014, that certain Amendment No. 2 to Administration Agreement dated as of January 1, 2015, that certain Amendment No. 3 to Administration Agreement dated as of November 8, 2016 and made effective as of July 1, 2016, and that certain Amendment No. 4 to Administration Agreement dated as of January 25, 2018; and
WHEREAS, the parties hereto desire to further amend the Administration Agreement as set forth herein.
NOW, THEREFORE, in consideration of the foregoing and of other good and valuable consideration, the receipt and sufficiency of which hereby are acknowledged, the parties hereby agree as follows:
ARTICLE 1.
DEFINITIONS 
1.1 Any capitalized terms used in this Amendment but not otherwise defined shall have the meanings ascribed to those terms under the Administration Agreement.
ARTICLE 2.
MODIFICATIONS
2.1 Effective as of October 1, 2018, the “Loan Platform Servicing Fee” section of Exhibit C to the Administration Agreement is hereby deleted in its entirety and replaced with the following:
On the last Business Day of each calendar month, the Company shall pay to the Loan Platform Administrator (in respect of its provision of the services described in Article IV of this

 Agreement) an amount equal to the product of $135.00 and the number of Borrower Loans funded since the last monthly fee payment date.
ARTICLE 3.
MISCELLANEOUS
3.1 Reference to and Effect on the Administration Agreement.
(a) Upon the effectiveness of this Amendment, (i) each reference in the Administration Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import shall mean and be a reference to the Administration Agreement as amended or otherwise modified hereby and (ii) each reference to the Administration Agreement or any other document, instrument or agreement executed and/or delivered in connection with the Administration Agreement, shall mean and be a reference to the Administration Agreement as amended or otherwise modified hereby.
(b) Except as specifically waived, amended or otherwise modified above, the terms and conditions of the Administration Agreement and any other documents, instruments and agreements executed and/or delivered in connection therewith, shall remain in full force and effect and are hereby ratified and confirmed.
(c) The execution, delivery and effectiveness of this Amendment shall not constitute a waiver of any provision contained in the Administration Agreement, except as specifically set forth herein.
3.2 Execution in Counterparts.  This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which when taken together shall constitute but one and the same instrument.  Delivery of an executed counterpart of a signature page to this Amendment by telecopier or other electronic imaging system shall be effective as delivery of a manually executed counterpart of this Amendment.
3.3 GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ITS CONFLICTS OF LAW RULES, OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW.
3.4 Headings.  Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.
3.5 Successors and Assigns.  This Amendment shall be binding upon each party hereto and their respective successors and assigns, and shall inure to the benefit of each party hereto and their successors and assigns.
3.6 Entire Agreement.  This Amendment, taken together with the Administration Agreement, embodies the entire agreement and understanding of the parties hereto and
2

 supersedes all prior agreements and understandings, written and oral, relating to the subject matter hereof.

[Signature page follows.]

3

IN WITNESS WHEREOF, each Party has caused this Amendment to be signed in its corporate name on its behalf by its proper official duly authorized as of the day, month and year first above written.
Company:
PROSPER FUNDING LLC
By:______________________________________
Name:  Julie Hwang
Title:  Secretary
Address: 221 Main Street, 3rd Floor
San Francisco, CA  94105

Tax Identification No.: 45-4526070

Licensor:
PROSPER FUNDING LLC
By:______________________________________
Name:  Julie Hwang
Title:  Secretary
Address: 221 Main Street, 3rd Floor
San Francisco, CA  94105

Tax Identification No.: 45-4526070

Licensee:
PROSPER MARKETPLACE, INC.

By:______________________________________
Name:   Julie Hwang
Title:     General Counsel and Secretary
Address: 221 Main Street, 3rd Floor
San Francisco, CA  94105

Tax Identification No.: 73-1733867

[Signature page to Amendment No. 5 to Administration Agreement]

Corporate Administrator:
PROSPER MARKETPLACE, INC.

By:______________________________________
Name:   Julie Hwang 
Title:     General Counsel and Secretary
Address: 221 Main Street, 3rd Floor
San Francisco, CA  94105

Tax Identification No.: 73-1733867

Loan Platform Administrator:
PROSPER MARKETPLACE, INC.

By:______________________________________
Name:   Julie Hwang
Title:     General Counsel and Secretary
Address: 221 Main Street, 3rd Floor
San Francisco, CA  94105

Tax Identification No.: 73-1733867

Loan and Note Servicer:
PROSPER MARKETPLACE, INC.

By:______________________________________
Name:   Julie Hwang
Title:     General Counsel and Secretary
Address: 221 Main Street, 3rd Floor
San Francisco, CA  94105

Tax Identification No.: 73-1733867

[Signature page to Amendment No. 5 to Administration Agreement]exhibit109employeeagreem

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                             Addendum                                          You will be a participant in the 2018 PAIP program.  Under the provisions of our plan,     you will have a “first year” target opportunity of 50% of your base salary based on the     Bank’s performance in 2018.  In 2019, 10% of your target opportunity will be based on     meeting quarterly production goals. The 2018 PAIP will be paid out in February 2019     and you will be given credit for six months of service for this payment.          You will also be eligible to participate in the Bank’s Long Term Incentive Plan (LTIP)     effective the date of your hire.  This plan will allow you an additional target opportunity     of 30% of your base salary.  Each performance period in the LTIP is three years.  Due to     your hire date, the first performance period you will be eligible for will run from 1/1/18-    12/31/20.  Participants who are hired by Columbia Bank between January 1st and June    30th of a Plan Year will receive a pro rata incentive award based on their length of     employment during the Performance Period.  Since you are starting after June 30th, we    have decided to allow you to get the benefit of the full year and your payment will not be    prorated.  The first payout will occur after the plan year ending 2020, at which time you    will be eligible for 2/3 of that award payment with the final 1/3 being paid out at the end    of 2021. The result is a rolling series of annual awards, with two thirds of the payout for a    performance period paid out at the end of year three of the performance period and one    third of the payout paid at the end of year four.  We expect the LTIP will be converted to    an equity award at the time the Management Recognition Awards are approved in May    2019.  (See LTIP Summary Plan Description Booklet for further information)        You will also be eligible for the Management Recognition Equity Awards when the plan     is approved by our shareholders in May 2019.  These awards are in addition to the     awards made under our Long Term Incentive program.         As an employee of the Bank, you will also be eligible to participate in the Bank’s     Employee Stock Ownership Plan (ESOP) after 6 months of service.  (See highlights of     the ESOP Summary Plan Description for further information)        As a member of the Executive Management team, our internal policy requires you to     own three times your base salary in CLBK stock.  This requirement must be achieved     within five years of your employment.  All sources of CLBK stock are included in     meeting this requirement including the Management Recognition Awards and the ESOP     allocations.                   You will also receive a company owned car with an approximate value of $45,000.  You     will be able to choose your car based on this allowance.                   You may start contributing to the Bank’s 401(k) plan on the first day of the month     following your date of hire. The Bank’s matching contributions (100% of your first 3%)     will commence on the first day of the month following six months of service. The     vesting in this plan is graded, with full vesting upon completion of five years of service.                

 

  Upon hire you will also be a participant in the Bank’s Defined Benefit Pension Plan.      The vesting under this plan is five years of service and each participant must work a     minimum of 1,000 hours to receive annual vesting credit. Your benefit depends upon the     number of years of service you work and your final high five year average salary when     the benefit is calculated.  In particular, your benefit is calculated by multiplying 1.8% X     Your Final Average Salary X Your Years of Service.  Based on various actuarial results,     the annual value of this benefit is estimated to be approximately 15% of your base     salary.  (See Highlights of the Columbia Bank Retirement Plan for further     information)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00294-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00294-of-00352.parquet"}]]