Document:

ssti-ex101_177.htm

 

Exhibit 10.1

ShotSpotter, Inc.

Amended and Restated Nonemployee Director Compensation Policy

Adopted by the Board of Directors: May 5, 2020 

 

1.General

This ShotSpotter, Inc. Amended and Restated Nonemployee Director Compensation Policy (the “Policy”) is designed to provide for the compensation of each member of the board of directors (the “Board”) of ShotSpotter, Inc. (the “Company”) who is not an employee of the Company or any of its subsidiaries (each, a “Nonemployee Director”).  The Policy is effective as of January 1, 2020 and will continue in effect until its termination by the Board.  The Policy replaces and supersedes any and all compensation policies or programs previously established or maintained by the Company with respect to Nonemployee Directors; provided, however, that any options or restricted stock units (“RSUs”) outstanding on such effective date shall not be affected by this Policy and shall continue to be governed by the grant notice, agreement and equity incentive plan relating to such options or RSUs.

2.Administration

The Board, or any committee to whom the Board delegates the requisite authority, will administer the Policy.  The Board (or such committee) will have the sole discretion and authority to administer, interpret, amend and terminate the Policy, and the decisions of the Board (or such committee) will be final and binding on all persons having an interest in the Policy.

3.Eligibility

Each Nonemployee Director will be eligible to receive the compensation set forth in the Policy in accordance with the terms of the Policy.  Such compensation will be paid or granted, as applicable, automatically and without further action of the Board or any Board committee to each Nonemployee Director. 

4.Cash Retainers

Each Nonemployee Director is eligible to receive cash retainers at the applicable rates set forth in the following table for each full year of service as (i) a chairperson and/or member of the Board and (ii) a chairperson of a committee of the Board (“Committee”):

	
Role
	
Annual Retainer Rate

	
Board
	
Chair
	
$55,0001

	
Member (not Chair)
	
$35,000

	
Audit Committee
	
Chair
	
$15,000

	
 
	
Member (not Chair)
	
$7,0001

	
Compensation Committee
	
Chair
	
$10,000

	
 
	
Member (not Chair)
	
$5,0001

	
Nominating and Corporate Governance Committee
	
Chair
	
$7,500

	
 
	
Member (not Chair)
	
$3,0001

	
	 

	
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Effective on the date of the Company’s 2020 annual meeting of stockholders; for the period from January 1, 2020 until such date, the retainer for the Board Chair is $41,250, the retainer for non-Chair directors is $31,250, and there are no retainers for committee membership in a non-Chair role.

 

 

Each Nonemployee Director will be eligible to receive each type of retainer set forth in the table above that is applicable to such Nonemployee Director.  Retainer payments will be made quarterly in arrears on or before the last business day of each calendar quarter and will be pro-rated for partial quarters of service based on the number of days served in the quarter divided by the number of days in the quarter.  Retainer payments for the quarter in which the 2020 annual meeting of stockholders occurs will also be pro-rated for the change in retainer amounts to take effect as of the date of such meeting.  

5.RSU Awards

(a)Initial Awards.  Each Nonemployee Director elected to the Board after this Policy is adopted, other than at an annual meeting of stockholders (a “New Director”), will be eligible to receive an RSU award (an “Initial Award”) based on the dollar amounts set forth in the following table, multiplied by a fraction, the numerator of which is the number of days that will elapse between and including the date of his or her appointment and the first anniversary of the previous annual meeting of stockholders, and the denominator of which is 365:

	
Role
	
Dollar Value of Initial Award

	
Board
	
Chair
	
$150,000, subject to reduction as provided below

	
Member (not Chair)
	
$100,000

If a New Director is appointed as the chairperson of the Board and the chairperson of any Committee(s) in connection with his or her initial election to the Board, the dollar value of his or her Initial Award in respect of being chairperson of the Board will be decreased by the cash retainer amount(s) applicable to the chairperson role(s) of such Committee(s) (e.g., if the chairperson of the Board is also the chairperson of the Compensation Committee, the dollar value of the Annual Award associated with serving on as the chairperson of the Board will be reduced from $150,000 to $140,000).  The date of grant of Initial Awards will be the effective date of such New Director’s appointment to the Board or, if such date is within a closed trading window under the Company’s Policy Regarding Stock Trading by Officers, Directors and Other Designated Employees, the next business day on which the trading window is open.

(b)Annual Awards.  On the date of each annual meeting of stockholders, each Nonemployee Director in office immediately after such meeting will be eligible to receive an RSU award (an “Annual Award”) for service as a Nonemployee Director based on the dollar amounts set forth in the following table:

	
Role
	
Dollar Value of Annual Award

	
Board
	
Chair
	
$150,000, subject to reduction as provided below

	
Member (not Chair)
	
$100,000

If, on the date of grant of an Annual Award, the chairperson of the Board is also the chairperson of any Committee(s), the dollar value of his or her Annual Award in respect of being chairperson of the Board will be decreased by the cash retainer amount(s) applicable to the chairperson role(s) of such Committee(s) (e.g., if the chairperson of the Board is also the chairperson of the Compensation Committee, the dollar value of the Annual Award associated with serving on as the chairperson of the Board will be reduced from $150,000 to $140,000).  The date of grant of Annual Awards will be the date of the applicable annual meeting of stockholders.

(c)Number of Shares Subject to RSU Awards.  The number of shares subject to an Initial Award or Annual Award (either, an “RSU Award”) will be equal to (i) the applicable dollar amount determined pursuant to Section 5(a) or 5(b) above, divided by (ii) the closing price of the Company’s common stock on the date of grant, rounded down to the nearest whole share; provided, however, that the number of shares subject to any RSU Award 

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may be reduced to the extent necessary to ensure that the Company’s compensation of Nonemployee Directors does not exceed the limit set forth in Section 3(e) of the Company’s 2017 Equity Incentive Plan (the “Plan”).

(d)Other Terms of RSU Awards.  Each RSU Award will be granted under the Plan and will be subject to the terms of the Plan, the applicable award agreement and this Policy.  Each RSU Award will vest on the earlier of (i) the first anniversary of the date of grant and (ii) the date of the next annual meeting of stockholders.  In addition, the vesting of all RSU Awards will accelerate in full upon a Change in Control (as defined in the Plan) or immediately prior to the effectiveness of a Nonemployee Director’s resignation or removal (and contingent upon the effectiveness of a Change in Control) in the event that the Nonemployee Director is required to resign his or her position as a Nonemployee Director as a condition of the Change in Control or the Nonemployee Director is removed from his or her position as a Nonemployee Director in connection with the Change in Control.  Vesting will cease upon the termination of the Nonemployee Director’s service as a member of the Board and any RSUs subject to such RSU Award that are unvested on the date of such termination will be automatically forfeited by such Nonemployee Director on such date.

6.Expenses

Each Nonemployee Director will be eligible for reimbursement from the Company for all reasonable out-of-pocket expenses incurred in connection with attending in-person meetings of the Board or any Committee.  To the extent that any taxable reimbursements are provided to any Nonemployee Director, they will be provided in accordance with Section 409A of the Internal Revenue Code of 1986, including, but not limited to, the following provisions: (i) the amount of any such expenses eligible for reimbursement during such individual’s taxable year may not affect the expenses eligible for reimbursement in any other taxable year; (ii) the reimbursement of an eligible expense must be made no later than the last day of such individual’s taxable year that immediately follows the taxable year in which the expense was incurred; and (iii) the right to any reimbursement may not be subject to liquidation or exchange for another benefit.

3EX-10.1

 Exhibit 10.1 
  

 
 FORM OF POPULAR, INC. 

2020 LONG-TERM EQUITY INCENTIVE AWARD 

AND AGREEMENT 

Recipient: 
 The Talent
and Compensation Committee of the Board of Directors of Popular, Inc. (the “Committee”) awarded you on February 27, 2020 (the “Grant Date”) a Long-Term Incentive Award consisting of Restricted Stock
(“Restricted Stock”) and Performance Shares (“Performance Shares” and, in conjunction with the Restricted Stock, the “Award”). 

This award agreement (the “Award Agreement”), dated as of the Grant Date, sets forth the terms and conditions of your Award.
This Award is made under the Popular, Inc. 2004 Omnibus Incentive Plan, as amended (the “Plan”) and, except as otherwise provided herein, is subject to the terms of the Plan. Capitalized terms used but not otherwise defined in this
Award Agreement have the meanings given in the Plan. 
 1.    Award. The number of shares of Restricted Stock and
Performance Shares subject to this Award is set forth in Annex 1 hereto. The Award will vest as set forth below. 

2.    Vesting; Payout. 

(a)    Restricted Stock Vesting. Except as otherwise stated in this Section 2, you shall become vested in the
Restricted Stock as follows (each of the dates described in (i) and (ii) below, a “Restricted Stock Vesting Date”): 

(i) 80% of your Restricted Stock shall vest in equal annual installments on each of the dates specified in Annex 1, and 

(ii) 20% of your Restricted Stock shall vest upon termination of your employment after attaining (x) age 55 with 10 years of service with
the Corporation or (y) age 60 with 5 years of service with the Corporation. 
 Years of service shall be determined pursuant to the
Corporation’s personnel policies and procedures. 
 (b)    Performance Shares Vesting. Except as otherwise
stated in this Section 2, you shall become vested in the Performance Shares on the day of the first scheduled meeting of the Committee taking place in the month of February 2023, subject to the Corporation’s achievement of the Performance
Goals specified in Annex 1 during the Performance Cycle, as certified by the Committee on such meeting (hereinafter the “Performance Shares Vesting Date” and, together with the Restricted Stock Vesting
Date, the “Vesting Date”). The Performance Goals will be based on two performance metrics weighted equally: the Relative Total Shareholder Return (the “TSR”) and the Absolute

  
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Return on Average Assets (the “ROA”) goals. The Performance Cycle is a three (3) year period beginning on January 1 of the calendar year of the Grant Date and ending on
December 31 of the third year. Each Performance Goal will have a defined minimum threshold (i.e., minimum result for which an incentive would be earned), target (i.e., result at which 100% of the incentive would be earned) and maximum level of
performance (i.e., result at which 1.5 times the incentive target would be earned). 
 (c)    Approved
Retirement. Upon an Approved Retirement after attaining (x) age 55 with 10 years of service with the Corporation or (y) age 60 with 5 years of service with the Corporation: (1) your outstanding Restricted Stock shall fully vest;
and (2) your outstanding Performance Shares shall continue outstanding and vest in full on the Performance Shares Vesting Date in accordance with the actual results of the Performance Goals during the Performance Cycle. 

(d)    Vesting upon Retirement on or after age 50 before attaining age 55 and 10 years of
service.    The Committee, at its discretion, may accord the same treatment accorded in Section 2(c) above if you retire from your employment on or after age 50, and before attaining age 55 and 10 years of service,
provided the sum of your age and years of service is at least 75. 
 (e)    Death. Provided that on the date of
your death you are still employed by the Corporation and your rights in respect of your Award have not been previously terminated, any then unvested outstanding Award shall immediately vest and be paid to the representative of your estate promptly
after your death. In the case of the Performance Shares, the number of shares will be calculated as if the target number of Performance Shares had in fact been earned. 

(f)    Disability. If you become subject to Disability while you are still employed by the Corporation, any then
unvested outstanding Award shares shall vest and shall be paid to you promptly after you become subject to Disability. In the case of the Performance Shares, the number of shares will be calculated as if the target number of Performance Shares had
in fact been earned. 
 (g)    Change of Control. If your employment is terminated by the Corporation or any
successor entity thereto without Cause, or if you terminate your employment for Good Reason, in each case upon or within two years after a Change of Control, prior to a Vesting Date, and provided your rights in respect of the shares of your unvested
Award have not previously terminated, the shares of your unvested Award shall immediately vest and be delivered to you promptly after such termination of employment; provided that, as of the Change of Control date, any outstanding Performance
Shares shall be deemed earned at the greater of the target level or actual performance level through the Change of Control date (or if no target level is specified, the maximum level) with respect to all open performance periods and such Performance
Shares shall be subject to time-based vesting through the end of the original Performance Cycle for each such Award, subject to accelerated vesting in accordance with the first sentence of this clause. 

(h)    Termination without Cause. If the Corporation terminates your employment without Cause you will receive
payment of the Award on a prorated basis based on the number of full months in the vesting schedule in which you were an active 

  
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employee (with a partial month worked counted as a full month if you were an active employee for 15 days or more in the month) and such reduced Award will vest immediately upon your termination
of employment, calculated in the case of Performance Shares as if the target number of Performance Shares had in fact been earned, as provided in the Plan. 

(i)    Payout. The transfer restrictions on the applicable number of whole shares of Restricted Stock shall lapse
on each Vesting Date or such other vesting date as determined in this Section 2 and in the terms of the Plan. The payout with respect to vested Performance Shares shall be made on the Performance Shares Vesting Date, in which date the Committee
shall determine the total number of shares earned based upon the actual performance results during the Performance Cycle. The vested shares will be delivered to you as soon as administratively practicable, generally within 45 days following each
Vesting Date. 
 3.    Termination of Award. 

(a)    Except as provided herein, your rights in respect of your outstanding unvested Award shares shall immediately
terminate, and no shares shall be paid in respect thereof, if at any time prior to the respective Vesting Date you terminate your employment. 

(b)    If the Corporation terminates your employment forCause, your Award shares shall be cancelled and the provisions
under the Plan will apply. 
 4.    Non-transferability. This Award (or
any rights and obligations hereunder) may not be sold, exchanged, transferred, assigned, pledged, hypothecated or otherwise disposed of or hedged, in any manner (including through the use of any cash-settled instrument), whether voluntarily or
involuntarily and whether by operation of law or otherwise, other than by will or by the laws of descent and distribution. 

5.    Withholding, Consents and Legends. 

(a)    You shall be solely responsible for any applicable taxes (including, without limitation, income and excise taxes)
and penalties, and any interest that accrues thereon, incurred in connection with your Award. The Corporation will withhold shares of Common Stock for the payment of taxes in connection with the vesting of your Award or upon the occurrence of any
other event that, in accordance with applicable law, will generate a tax liability with regards to your Award. The Corporation will withhold shares of Common Stock with a value equal to the amount of taxes that the Corporation determines it is
required to withhold under applicable laws (with such withholding obligation determined based on any applicable minimum statutory withholding rates). The Corporation will use the Fair Market Value of the Common Stock on the Restricted Stock Vesting
Date or such other date, as applicable, in order to determine the number of shares to be withheld. If you wish to remit cash to the Corporation (through payroll deduction or otherwise), in each case in an amount sufficient in the opinion of the
Corporation to satisfy such withholding obligation, you must notify the Corporation in advance and do so in compliance with all applicable laws and pursuant to such rules as the Corporation may establish from time to time, including, but not limited
to, the Corporation’s Insider Trading Policy. 

  
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 (b)    Your right to receive shares pursuant to the Award is conditioned
on the receipt to the reasonable satisfaction of the Committee of any required consent that the Committee may reasonably determine to be necessary or advisable. By accepting delivery of the shares, you acknowledge that you are subject to the
Corporation’s Insider Trading Policy. 
 6.    Section 409A. Shares awarded under this Award Agreement are
intended to be exempt from Section 409A of the U.S. Code, to the extent applicable, and this Award Agreement is intended to, and shall be interpreted, administered and construed consistent therewith. The Committee shall have full authority to
give effect to the intent of this Section 6. 
 7.    No Rights to Continued Employment. Nothing in this
Award Agreement shall be construed as giving you any right to continued employment by the Corporation or any of its affiliates or affect any right that the Corporation or any of its affiliates may have to terminate or alter the terms and conditions
of your employment. 
 8.    Successors and Assigns of the Corporation. The terms and conditions of this Award
Agreement shall be binding upon, and shall inure to the benefit of, the Corporation and its successor entities. 

9.    Committee Discretion. Subject to the terms of the Plan, the Committee shall have full discretion with respect
to any actions to be taken or determinations to be made in connection with this Award Agreement, and its determinations shall be final, binding and conclusive. 

10.    Amendment. The Committee reserves the right at any time to amend the terms and conditions set forth in this
Award Agreement; provided that, notwithstanding the foregoing, no such amendment shall materially adversely affect your rights and obligations under this Award Agreement without your consent (or the consent of your estate, if such consent is
obtained after your death), and provided, further, that the Committee may not postpone the payout of shares to occur at any time after the applicable time provided for in this Award Agreement. Any amendment of this Award Agreement
shall be in writing signed by an authorized member of the Committee or a person or persons designated by the Committee. 

11.    Adjustment; Other Plan Provisions. Subject to Section 10, the Committee shall adjust equitably the
terms of this Award in accordance with Section 5.4 of the Plan, if applicable. Subject to the terms of this Award Agreement, the Restricted Stock shall be subject to the terms of the Plan, including, but not limited to, the provisions of
Section 8.4 related to dividends and voting rights. Cash dividends paid on the Restricted Stock and on all of the Common Stock that may be subsequently acquired with such cash dividends, will be invested in the purchase of additional shares of
Common Stock of the Corporation in accordance with the Popular, Inc. Dividend Reinvestment and Stock Purchase Plan (the “DRIP”); such shares are not subject to the restrictions and are immediately vested. The Restricted Stock shall
be held in custody by the Fiduciary Services Division of Banco Popular de Puerto Rico. 

  
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 Performance Shares will accrue Dividend Equivalents prior to the Performance Shares Vesting
Date. Accrued Dividend Equivalents with respect to the Performance Shares will be invested in additional shares of Common Stock of the Corporation in accordance with the formula set forth in the DRIP. All shares of Common Stock acquired pursuant to
the reinvestment of dividends will be subject to the terms and conditions of Section 2 and will be paid out on the Performance Shares Vesting Date based on the actual number of Performance Shares earned on that date. 

12.    Governing Law. This award shall be governed by and construed in accordance with the laws of Puerto Rico,
without regard to principles of conflicts of laws. 
 13.    Incentive Recoupment. This award shall be subject to
the terms of the Popular, Inc. Incentive Recoupment Guideline in effect as of the Grant Date and as such guideline may be required to be modified in accordance with applicable law or regulation. 

14.    Headings. The headings in this Award Agreement are for the purpose of convenience only and are not intended
to define or limit the construction of the provisions hereof. 
 IN WITNESS WHEREOF, POPULAR, INC. and the Recipient caused this Award
Agreement to be duly executed and delivered as of the Grant Date. 
  

									
	POPULAR, INC.	 		 	ACCEPTED:
					
	By:	 	[Insert Name of Representative]	 		 	By:	 	[Insert Name of Recipient]
	Title:	 	[Insert Title of Representative]	 		 	Title:	 	[Insert Title of Recipient]
		
	                                    
        	 	                                    
        
	Signature	 	Signature

  
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 ANNEX 1 

POPULAR, INC. 
 2020
LONG-TERM EQUITY INCENTIVE AWARD 
 Recipient: 

Employee Number: 
 Grant Date: February 27, 2020

 Total Dollar Value of Award: 
 Common Stock Market Price as
of closing on Grant Date: 
 Restricted Stock 

Dollar Value of Restricted Stock Award: 
 Shares of Restricted
Stock Awarded: 
 Restricted Stock Vesting Dates: 
  

			
	 Shares (20%)
 Shares (20%)

Shares (20%)
 Shares (20%)
	  	 February 23, 2021
 February 23,
2022
 February 23, 2023
 February 23,
2024

		
	Shares (20%)	  	 Upon termination of your employment after attaining:

(i) age 55 with 10 years of service, or (ii) age 60 with 5 years of service.

  
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 Performance Shares 

Dollar Value of Performance Shares Award: 
 Grant Date: February
27, 2020 
 Common Stock Market Price as of closing on Grant Date: 

Total Target Number of Shares:                 (50% Total Shareholder Return
/ 50% Return on Assets) 
  

					
	Relative Total Shareholder Return (TSR)1 –	  	 Percentile Rank among

Comparator Group
	  	 Shares Earned

(% of Target)

	Opening Price =	  	 75th Percentile or above

(maximum)
	  	(1.5x target shares)
			
		  	 50th Percentile

(target)
	  	(1x target shares)
			
		  	 25th Percentile

(threshold)
	  	(0.5x target shares)
			
		  	Below 25th Percentile	  	0
			
	Absolute Return on Average Assets (ROA)2 –	  	     
ROA
	  	 Shares Earned

(% of Target)

			
	3-year simple average ROA 2020-2022	  	(maximum)	  	(1.5x target shares)
			
		  	(target)	  	(1x target shares)
			
		  	(threshold)	  	(0.5x target shares)
			
		  	Lower than	  	0
	
	 Results between threshold, target and maximum performance

will be interpolated to determine vesting award

 1 TSR will be calculated as [(Closing Price at end of period * (1 +
number of shares purchased assuming reinvestment of dividends))/Opening Price at beginning of period] – 1 
  

	 	•	 	 Closing Price and Opening Price are based on the preceding 60 trading days average daily close price to mitigate
against share price volatility of point-in-time metrics. 

  

	 	•	 	 Opening price = average price 10/7/19-12/31/19 

 

	 	•	 	 Closing price = average price 10/6/22-12/31/22 

 

	 	•	 	 TSR calculations shall assume that dividends are reinvested on the
ex-dividend date (i.e., the date a dividend asset is guaranteed). 

 Comparator Group — SNL
US Banks greater than $10 billion in assets – Performance will be based on the composition of the group at the end of the 3-year Performance Cycle. 

If Popular’s absolute TSR is negative, payout will be limited to a maximum of 100% of target. 

2 3-year simple average ROA for 3 years (2020-2022). The
Committee may adjust the goal or results to reflect a core profitability that would not be unduly inflated or deflated by certain transactions that do not reflect the underlying performance of Popular’s ongoing operations, including, but not
limited to, the impact of significant tax reform, sales of non-earning assets, sales of branches or other businesses, certain business acquisition costs and revenues, extraordinary events or charitable
contributions, severance costs and certain litigation and settlement costs, among others. 

  
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