Document:

Exhibit 10.1

Exhibit 10.1

EXECUTION COPY

FIRST SUPPLEMENTAL INDENTURE

FIRST SUPPLEMENTAL INDENTURE, dated as of June 17, 2011, between GSI Commerce, Inc., a Delaware corporation
(hereinafter called the “Company”), having its principal office at 935 First Avenue, King of Prussia,
Pennsylvania 19406, and The Bank of New York Mellon, as trustee hereunder (hereinafter called the “Trustee”).

W I T N E S S E T H

WHEREAS, the Company heretofore executed and delivered to the Trustee an Indenture dated as of July 2, 2007 (as
may be supplemented or amended from time to time by one or more indentures supplemental thereto entered into pursuant
to the applicable provisions thereof, being hereinafter called the “Indenture”; all capitalized terms used
herein which are not otherwise defined herein have the meanings ascribed thereto in the Indenture), providing for the
issuance of the Company’s 2.50% Convertible Senior Notes due 2027 (hereinafter called the “Notes”); and

WHEREAS, pursuant to that certain Agreement and Plan of Merger, dated as of March 27, 2011, Gibraltar Acquisition
Corp., a wholly-owned subsidiary of eBay Inc., merged with and into the Company (the “Merger”) and, as such,
the Company is now a wholly owned subsidiary of eBay Inc.; and

WHEREAS, pursuant to the terms and conditions of the Merger, all Common Stock of the Company was converted into
the right to receive $29.25 per share (the “Merger Consideration”); and

WHEREAS, the Merger constitutes a “Merger Event” as defined in Section 15.10 of the Indenture; and

WHEREAS, on June 10, 2011, a Memorandum of Understanding (the “Memorandum of Understanding”) was filed
with the State of Delaware in the matter captioned In Re GSI Commerce Inc. Shareholder Litigation (the “Shareholder
Litigation”) which provided for a settlement of the Shareholder Litigation and for the payment by eBay Inc. of
$0.33 per share (the “Settlement Payment”) to Company shareholders.

WHEREAS, Section 15.10(b) of the Indenture provides that at the effective time of a Merger Event, the right to
convert each $1,000 principal amount of Notes shall be changed to a right to convert such Notes to the kind and amount
of cash, securities or other property or assets that a holder of a number of shares of Common Stock equal to the
Conversion Rate immediately prior to the Merger Event would have been entitled to receive (defined as the
“Reference Property”); and

WHEREAS, the Conversion Rate in effect immediately prior to the Merger Event was 33.3333 per $1,000 principal
amount of Notes; and

WHEREAS, pursuant to the Merger Event, 33.3333 shares of Common Stock would be entitled to receive cash in the
amount of the product of (i) 33.3333 and (ii) $29.25 , or an aggregate of $974.9990; and

 

 

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WHEREAS, pursuant to the Memorandum of Understanding, upon the Merger Event, 33.3333 shares of Common Stock would
be entitled to receive cash in the amount of the product of (i) 33.3333 and (ii) $0.33, or an aggregate of $11.00; and

WHEREAS, Section 11.01(6) of the Indenture provides that the Company and the Trustee may amend certain provisions
of the Indenture; and

WHEREAS, the Company desires to amend the Indenture as set forth in Article I hereof; and

WHEREAS, all things necessary to make this First Supplemental Indenture a valid agreement of the Company, in
accordance with its terms, have been done;

NOW, THEREFORE, THIS FIRST SUPPLEMENTAL INDENTURE WITNESSETH, that, for and in consideration of the premises, the
Company agrees with the Trustee as follows:

ARTICLE I

AMENDMENTS

Section 1.01 Effect. The amendments set forth in this Article I shall apply only in respect of the Notes
created pursuant to the Indenture.

Section 1.02 Conversion of Notes. In accordance with Section 15.10 of the Indenture, as of the date
hereof, if a Holder exercises its right to convert its Notes in accordance with the provisions of the Indenture (other
than a conversion “in connection with” the Make-Whole Fundamental Change that occurs from the date hereof until the
Fundamental Change Repurchase Date relating to the Merger), the Company will pay to such Holder, in full satisfaction
of the Company’s obligations with respect to such conversion, cash in an amount, for each $1,000 in principal amount of
the Notes to be converted, equal to $986.00. Upon a conversion “in connection with” the Make-Whole Fundamental Change
that occurs from the date hereof until the Fundamental Change Repurchase Date relating to the Merger, the Company will
pay to such Holder, in full satisfaction of the Company’s obligations with respect to such conversion, cash in an
amount, for each $1,000 in principal amount of the Notes to be converted, equal to $1,135.38.

ARTICLE II

MISCELLANEOUS PROVISIONS; GOVERNING LAW; ACCEPTANCE BY TRUSTEE

Section 2.01 Instruments to be Read Together. This First Supplemental Indenture is an indenture
supplemental to and in implementation of the Indenture and the Officer’s Certificate, and said Indenture, the Officer’s
Certificate and this First Supplemental Indenture shall henceforth be read together.

 

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Section 2.02 Confirmation. The Indenture as amended and supplemented by this First Supplemental Indenture
is in all respects confirmed and preserved.

Section 2.03 Counterparts. This First Supplemental Indenture may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together
constitute but one and the same instrument.

Section 2.04 Effectiveness. The provisions of this First Supplemental Indenture will take effect
immediately upon its execution and delivery by the Trustee in accordance with the provisions of Section 11.04 of the
Indenture, provided that the amendments set forth in this First Supplemental Indenture shall apply only in
respect of the Notes.

Section 2.05 Construction of First Supplemental Indenture. THIS FIRST SUPPLEMENTAL INDENTURE AND EACH
NOTE SHALL BE DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF THE STATE OF NEW YORK AND SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (WITHOUT REFERENCE TO PRINCIPLES OF CONFLICTS OF LAW).

Section 2.06 Trust Indenture Act Controls. If any provision of this First Supplemental Indenture or the
Notes shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions
shall not in any way be affected or impaired thereby.

Section 2.07 Acceptance by Trustee. The Trustee accepts the amendments of the Indenture and this First
Supplemental Indenture and agrees to execute the trusts created by the Indenture as hereby amended, but only upon the
terms and conditions set forth in the Indenture. The Trustee assumes no responsibility for the correctness of the
recitals contained herein, which shall be taken as the statements of the Company. The Trustee makes no representation
and shall have no responsibility as to the validity of this First Supplemental Indenture or the proper authorization or
the due execution hereof by the Company.

[Signature Page Follows.]

 

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IN WITNESS WHEREOF, the parties hereto have caused this First Supplemental Indenture to be
duly executed as of the day and year first above written.

	 	 	 	 	 
	 	GSI COMMERCE, INC.

 	 
	 	By 	 /s/ Scott Rosenberg
 	 
	 	Name:  	Scott Rosenberg 	 
	 	Title:  	Chief Financial Officer 	 
	 

Trustee:

	 	 	 	 	 
	 	

THE BANK OF NEW YORK MELLON, as trustee

 	 
	 	By 	 /s/ Francine Kincaid
 	 
	 	Name:  	Francine Kincaid 	 
	 	Title:  	Vice President 	 
	 

[Signature Page to the First Supplemental Indenture]

 

4Exhibit 10.2

EXHIBIT 10.2

GSI Commerce, Inc.

2010 Equity Incentive Plan

Performance Award Agreement

	 	 	 
	PARTICIPANT:

	 	Christopher Saridakis
	 
	 	 
	GRANT DATE:

	 	June 16, 2011
	 
	 	 
	MAXIMUM PERFORMANCE AWARD:

	 	$30 million
	 
	 	 
	PERFORMANCE PERIODS:

	 	Four consecutive annual Performance Periods,
beginning with the 2012 calendar year and
ending with the 2015 calendar year

THIS AGREEMENT, effective as of the Grant Date set forth above, is between GSI Commerce, Inc., a
Delaware corporation (the “Company”, “we”, “our” or “us”), and the Participant named above (“you”
or “yours”), pursuant to the provisions of the Company’s 2010 Equity Incentive Plan (the “Plan”)
with respect to the award (the “Award”) specified above. Capitalized terms used and not defined in
this Performance Award Agreement (this “Agreement”) shall have the meanings given to them in the
Plan.

By accepting this Agreement, you irrevocably agree, on your own behalf and on behalf of your heirs
and any other person claiming rights under this Agreement, to all of the terms and conditions of
the Award as set forth in or pursuant to this Agreement and the Plan (as such may be amended from
time to time).

You and the Company agree that the Award is being granted in full satisfaction of the Company’s
obligations to you pursuant to Section 3.5 of the Employment Agreement between you and the Company,
dated March 23, 2010 (the “Employment Agreement”); provided that the performance period and
performance conditions are modified herein to reflect the acquisition of the Company by eBay Inc.,
a Delaware corporation (“eBay”), pursuant to the merger of Gibralter Acquisition Corp, a Delaware
corporation and a wholly owned subsidiary of eBay (“Merger Sub”), with and into the Company (the
“Merger”), pursuant to the terms of the Agreement and Plan of Merger among eBay, Merger Sub and the
Company, dated as of March 27, 2011 (the “Merger Agreement”).

You and the Company agree as follows:

	 	 	 	 	 
	1.

	 	Application of
Plan;
Administration
	 	This Agreement and your rights under this Agreement
are subject to all the terms and conditions of the
Plan, as it may be amended from time to time, as well
as to such rules and regulations as the Compensation
Committee of the Board of Directors of the Company
(the “Board”) may adopt. It is expressly understood
that the Compensation Committee of the Board 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 you to the extent
permitted by the Plan.

 

 

 

	 	 	 	 	 
	2.

	 	Performance Goal
and Award Amount
	 	The Award shall be earned over four separate annual
Performance Periods (each a “Performance Period”),
beginning with the 2012 calendar year and ending with
the 2015 calendar year. The amount of the Award (the
“Award Amount”) payable to you hereunder with respect
to each Performance Period shall be equal to
$7,500,000 multiplied by the total number of EBITDA
Thresholds, defined below, that are attained by the
Business Unit, defined below, during such Performance
Period. An EBITDA Threshold is attained if the
EBITDA of the Business Unit during a Performance
Period equals or exceeds any of the following amounts
(the “EBITDA Thresholds”):
	 
	 	 	 	 
	 

	 	 	 	$300,000,000; 
	 
	 	 	 	 
	 

	 	 	 	$375,000,000;
	 
	 	 	 	 
	 

	 	 	 	$425,000,000; and
	 
	 	 	 	 
	 

	 	 	 	$475,000,000. 
	 
	 	 	 	 
	 

	 	 	 	For purposes of this Agreement:
	 
	 	 	 	 
	 

	 	 	 	“Business Unit” shall mean the business of the
Company and its majority-owned subsidiaries or,
following the consummation of the Merger, the
business unit of eBay that includes the business
conducted by the Company and its majority-owned
subsidiaries as of the Grant Date, excluding the
businesses conducted by Fanatics, LLC, TeamStore,
Inc., RueLaLa, Inc., and ShopRunner, Inc. or any of
their subsidiaries.
	 
	 	 	 	 
	 

	 	 	 	“EBITDA” shall mean, following the consummation of
the Merger, eBay’s non-GAAP Business Unit Operating
Income, adjusted (i) to exclude expenses for
interest, taxes, depreciation, amortization and the
deferred acquisition payments recorded as
compensation expense related to the acquisition of
Fetchback, Inc., and (ii) to include reasonable
estimates of (A) annual expenses for stock-based
compensation granted to you, (B) annual expenses for
long-term incentive compensation granted to you and
other employees of the Business Unit, to the extent
not otherwise included, and (C) patent litigation
expenses allocable to the Performance Period (which
shall be estimated by the Chief Financial Officer, in
consultation with the General Counsel, of the Company
or, following the consummation of the Merger, of
eBay, in a manner consistent with the Company’s past
practice). If the Merger Agreement shall terminate
prior to the consummation of the Merger, “EBITDA”
shall mean earnings before interest, taxes,
depreciation and amortization, as determined by the
Company in its reasonable discretion and in
accordance with past practice.
	 
	 	 	 	 
	 

	 	 	 	Whether an EBITDA Threshold is attained during a
Performance Period shall be determined as of the last
day of such Performance Period and shall be based on
the EBITDA for such Performance Period as certified
by the Compensation Committee of the Board. More
than one EBITDA Threshold may be attained in any one
Performance Period; provided that the attainment of
an EBITDA Threshold in any Performance Period shall
not be considered to have been attained again in any
subsequent Performance Period for purposes of
determining the Award Amount in such subsequent
Performance Period. If an EBITDA Threshold is
attained, then the corresponding portion of the Award
Amount is considered earned, regardless of the
Business Unit’s performance in a subsequent
Performance Period, subject to the vesting conditions
described in Section 3 of this Agreement. The
maximum Award Amount under this Agreement with
respect to all Performance Periods shall be
$30,000,000 (i.e., $7,500,000 multiplied by each of
the four EBITDA Thresholds attained).

 

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	 	 	 	The Compensation Committee of the Board may take
reasonable action to adjust either the EBITDA
Thresholds or the manner in which EBITDA is
determined with respect to any current or future
Performance Period to reflect one or more of the
following: (i) items related to a change in
accounting principles; (ii) items relating to
financing activities; (iii) expenses for
restructuring or productivity initiatives; (iv) other
non-operating items; (v) items related to
acquisitions; (vi) items attributable to the business
operations of any entity acquired by the Company;
(vii) items related to the disposal of a business or
segment of a business; (viii) items related to
discontinued operations that do not qualify as a
segment of a business under GAAP; (ix) items
attributable to any stock dividend, stock split,
combination or exchange of shares; (x) any other
items of significant income or expense which are
determined to be appropriate adjustments; (xi) items
relating to unusual or extraordinary corporate
transactions, events or developments, (xii) items
related to amortization of acquired intangible
assets; (xiii) items that are outside the scope of
the Company’s core, on-going Business Unit
activities; (xiv) items relating to any other unusual
or nonrecurring events or changes in applicable laws,
accounting principles or business conditions; or (xv)
items relating to any change in the payment or
allocation of general and administrative expenses
among the business units of the Company and its
Affiliates. If such adjustment occurs later than 90
days after the commencement of a Performance Period,
such adjustment shall apply to such Performance
Period only to the extent that the adjustment is
necessary to reflect objectively determinable changes
in the EBITDA of the Business Unit, as reflected in
the financial statements of the Company, and shall be
made in compliance with Section 162(m) of the
Internal Revenue Code of 1986, as amended (the
“Code”).
	 
	 	 	 	 
	3.

	 	Award Vesting
	 	No Award Amount will be payable to you hereunder
unless the Award is vested. The Award will vest in
the following circumstances:
	 
	 	 	 	 
	 

	 	 	 	(a)   Employment Continues Through First
Business Day After January 1, 2016. The Award will
vest if you are continuously employed by the Company
through the first business day after January 1, 2016.
All references in this Agreement to employment by the
Company shall include employment by any parent or
subsidiary of the Company. 

	 
	 	 	 	 
	 

	 	 	 	(b)   Termination of Employment Due to
Death. The Award will vest if your employment
terminates due to your death on or before the first
business day after January 1, 2016. Upon such a
termination of your employment, the Award Amount will
be based on the EBITDA Thresholds attained through
the last day of the Performance Period ending on or
prior to your termination of employment. 

 

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	 	 	 	(c)   Termination of Employment by the
Company without Cause. The Award will vest if your
employment is terminated by the Company without Cause
on or before the first business day after January 1,
2016. “Cause” will exist if the Board (or an
appropriate committee thereof) in good faith
determines that (i) you are grossly negligent or
engaged in willful misconduct in the performance of
your duties, (ii) you are convicted of, or enter a
plea of guilty or nolo contendere to, a crime
constituting a felony or any criminal offense
involving fraud, dishonesty or moral turpitude under
the laws of the United States or any state thereof
other than an automobile offense, or (iii) you
breach, in a material respect, any written material
agreement between you and the Company or violate, in
a material respect, the Company’s Code of Business
Conduct or any of the Company’s material policy
statements. Notwithstanding the foregoing, Cause
shall only exist after (a) the Company delivers
written notice to you of its intention to terminate
for Cause within thirty (30) days after the Company
has actual knowledge of the facts and circumstances
upon which it seeks to rely as a basis for its right
to terminate for Cause, (b) such notice sets forth in
reasonable detail such facts and circumstances and
(c) in the case of clauses (i) or (iii), you have
failed to correct the acts, omissions or events set
forth in the Company’s notice, if such acts,
omissions or events are reasonably capable of being
corrected, within thirty (30) days following delivery
of the Company’s written notice of its intention to
terminate for Cause. Upon a termination of your
employment by the Company without Cause, the Award
Amount will be based on the EBITDA Thresholds
attained through the last day of the Performance
Period ending on or prior to your termination of
employment. 

	 
	 	 	 	 
	 

	 	 	 	In the event that your employment with the Company
terminates on or before the first business day after
January 1, 2016 for any reason other than your death
or a termination by the Company without Cause, the
Award will not vest and no Award Amount will be
payable to you hereunder.
	 
	 	 	 	 
	4.

	 	Settlement of
Vested Performance
Award
	 	The Award will be settled after the completion of the
applicable Performance Periods and the satisfaction
of the applicable vesting conditions set forth in
Section 3 by the payment of the Award Amount to you
or, in the event of your death, to your designated
beneficiary. If you are continuously employed
through the first business day after January 1, 2016,
such payment will be made in two equal installments.
The first installment shall be paid prior to March
15, 2016, and the second installment payment shall be
paid on the first anniversary of the first
installment, but in all events prior to March 15,
2017. If your employment is terminated on or prior
to the first business day after January 1, 2016 due
to your death or a termination by the Company without
Cause, such payment shall be made in one installment
prior to March 15th of the year following
your termination of employment or death.
	 
	 	 	 	 
	 

	 	 	 	The Award may be settled by the delivery of (i) cash,
(ii) shares of Common Stock (“Shares”) or (iii) any
combination thereof as determined in the sole
discretion of the Compensation Committee of the
Board. To the extent all or a portion of the Award
is settled in Shares, the number of Shares delivered
to you shall be equal to the cash equivalent value of
the portion of the Award that is payable in Shares,
divided by the average closing price of a Share as
reported on the NASDAQ Global Select Market for the
period of 30 consecutive trading days ending on (and
including) the last trading day prior to the date the
Award becomes vested, and rounding down to the
nearest whole number of Shares.

 

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	 	 	 	Notwithstanding any other provision of this Agreement
or the Plan to the contrary, the parties acknowledge
(x) that time is of the essence with respect to the
issuance or delivery of any cash or Shares pursuant
to this Agreement and (y) that the Company will not
be obligated to issue or deliver any cash or Shares
pursuant to this Agreement (i) until all conditions
to this Agreement have been satisfied or removed,
(ii) if the outstanding Common Stock is at the time
listed on any stock exchange or included for
quotation on an inter-dealer system, until the Shares
have been listed or included or authorized to be
listed or included on such exchange or system upon
official notice of issuance, (iii) until the issuance
or delivery of the Shares would not cause the Company
to issue or sell more shares of Common Stock than the
Company is then legally entitled to issue or sell,
and (iv) until all other legal matters in connection
with the issuance and delivery of such Shares have
been approved by internal legal counsel to the
Company.
	 
	 	 	 	 
	 

	 	 	 	You hereby authorize any brokerage service provider
acceptable to the Company to open a securities
account for you to be used for the settlement of the
Award settled in Shares. The date on which Shares
are issued may include a delay in order to provide
the Company such time as it determines appropriate to
address tax withholding and other administrative
matters.
	 
	 	 	 	 
	5.

	 	Rights as

Stockholder
	 	Except as otherwise provided in this Agreement, you
will not be entitled to any privileges of ownership
of the Shares underlying the Award, if any, including
voting, receipt of dividends or any other rights as a
stockholder of the Company, unless and until Shares
are actually delivered to you under this Agreement.
	 
	 	 	 	 
	6.

	 	Transferability
	 	Except as provided in Section 9(k) hereof, your right
to receive payment under this Agreement is not
transferable, whether voluntarily or involuntarily,
by operation of law or otherwise, other than by will
or the laws of descent and distribution. Any
voluntary or involuntary assignment, pledge,
transfer, or other disposition of, or any attachment,
execution, garnishment, or lien issued against or
placed upon your right to receive payments under this
Agreement, in violation of the terms of this
Agreement shall be void. Notwithstanding the
foregoing, by delivering written notice to the
Company, in a form satisfactory to the Company, you
may designate a third party who, in the event of your
death, will thereafter be entitled to receive any
distribution of cash or Shares pursuant to this
Agreement.
	 
	 	 	 	 
	7.

	 	Taxes
	 	(a)   General. You are ultimately liable
and responsible for all taxes owed by you in
connection with the Award. The Company makes no
representation or undertaking regarding the treatment
of any tax withholding in connection with the grant,
issuance, vesting or settlement of the Award, and the
subsequent sale of any of the Shares underlying the
Award. The Company does not commit and is under no
obligation to structure this Agreement to reduce or
eliminate your tax liability. 

 

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	 	 	 	(b)   Withholding. On or before the date
upon which the Award is settled and any other date
upon which tax withholding obligations of the Company
may arise, or at any time thereafter as requested by
the Company, you hereby authorize withholding from,
at the Company’s election, Shares, payroll and any
other amounts payable to you and you otherwise agree
to make adequate provision for, as determined by the
Company, any sums required to satisfy the Federal,
state, local and foreign tax withholding obligations
of the Company or an Affiliate, if any, which arise
in connection with any of the above events or
otherwise. Unless the tax withholding obligations of
the Company or any Affiliate are satisfied, the
Company will have no obligation to make any payments
under this Agreement. 

	 
	 	 	 	 
	8.

	 	Clawback
	 	In the event that the Board (or an appropriate
committee thereof) determines in good faith that the
earlier determination of the EBITDA of the Business
Unit was based on materially incorrect data, and that
in fact such EBITDA had not been achieved or had been
achieved to a lesser extent than originally
determined and any amount paid (or portion thereof)
under this Agreement would not have been paid, given
the correct data, then in each such instance, you
shall, at the request of the Board (or appropriate
committee thereof), return or forfeit, as applicable,
all or a portion (but no more than one-hundred
percent (100%) of such payment to you based on such
incorrect data. The amount to be recovered from you
shall be the amount determined by the Board or
appropriate committee thereof, by which the payment
to you exceeded the amount that would have been paid
to you based on the correct data. However, if you
have disposed of Shares issued to you in connection
with this Agreement, the cash equivalent value of
such Shares on the date the Company calculated the
number shares owed shall be paid by you to the
Company upon notice from the Company as provided by
the Board (or appropriate committee thereof). The
right of the Company and/or Board with respect to
this right of return and/or recapture from the
Participant set out above in this paragraph shall be
limited to twelve (12) months from the payment of the
Award Amount.
	 
	 	 	 	 
	 

	 	 	 	In the event that the Board (or appropriate committee
thereof) determines that you have, prior to payment
of the Award Amount, committed an act or omission
that would have constituted Cause, the Board (or
appropriate committee thereof), whether or not you
were terminated because of such act or omission, may
require you to return or forfeit, as applicable, any
amount paid to you under this Agreement. If you have
disposed of Shares issued to you in connection with
this Agreement, the cash equivalent value of such
Shares on the date the Company calculated the number
shares owed shall be paid by you to the Company upon
notice from the Company as provided by the Board (or
appropriate committee thereof). The right of the
Company and/or Board with respect to this right of
return and/or recapture from the Participant set out
above in this paragraph shall be limited to twelve
(12) months from the payment of the Award Amount.

 

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	9.

	 	Miscellaneous
	 	(a)   YOU ACKNOWLEDGE AND AGREE THAT THIS
AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER
AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT
CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED
ENGAGEMENT AS AN EMPLOYEE, DIRECTOR, OR CONSULTANT OF
THE COMPANY FOR THE VESTING PERIOD, FOR THE
PERFORMANCE PERIOD, FOR ANY PERIOD, OR AT ALL, AND
SHALL NOT INTERFERE WITH YOUR RIGHT OR THE COMPANY’S
RIGHT TO TERMINATE YOUR RELATIONSHIP (I) AS AN
EMPLOYEE AT ANY TIME, FOR ANY REASON OR NO REASON,
WITH OR WITHOUT CAUSE; (II) AS A CONSULTANT PURSUANT
TO THE TERMS OF THIS AGREEMENT WITH THE COMPANY OR AN
AFFILIATE; OR (III) AS A DIRECTOR PURSUANT TO THE
BYLAWS OF THE COMPANY AND ANY APPLICABLE PROVISIONS
OF THE CORPORATE LAW OF THE STATE OR OTHER
JURISDICTION IN WHICH THE COMPANY IS DOMICILED, AS
THE CASE MAY BE. 

	 
	 	 	 	 
	 

	 	 	 	(b)    The Award is unfunded and as a
holder of the Award you will be considered an
unsecured creditor of the Company with respect to the
Company’s obligation, if any, to pay cash or issue
Shares pursuant to this Agreement. Upon issuance of
Shares, if applicable, you will obtain full voting
and other rights as a stockholder of the Company.
Nothing contained in this Agreement, and no action
taken pursuant to its provisions, will create or be
construed to create a trust of any kind or a
fiduciary relationship between you and the Company or
any other person. 

	 
	 	 	 	 
	 

	 	 	 	(c)   This Agreement will be subject to all
applicable laws, rules, and regulations, and to such
approvals by any governmental agencies or stock
exchanges as may be required. The Company may impose
such restrictions, conditions or limitations as it
determines appropriate as to the timing and manner of
any resales by you or other subsequent transfers by
you of any Shares issued as a result of or under this
Agreement, including without limitation (i)
restrictions under an insider trading policy, (ii)
restrictions that may be necessary in the absence of
an effective registration statement under the
Securities Act of 1933, as amended, covering the
Award and (iii) restrictions as to the use of a
specified brokerage firm or other agent for such
resales or other transfers. Any sale of Shares
issued pursuant to this Agreement must also comply
with other applicable laws and regulations governing
the sale of such Shares. 

	 
	 	 	 	 
	 

	 	 	 	(d)   The payments provided under this
Agreement are intended to be exempt from Section 409A
of the Code as short-term deferrals pursuant to
Treasury regulation §1.409A-1(b)(4), and for this
purpose each payment shall be considered a separate
payment. In the event the terms of this Agreement
would subject you to taxes or penalties under Section
409A of the Code (“409A Penalties”), the Company and
you shall cooperate diligently to amend the terms of
this Agreement to avoid such 409A Penalties, to the
extent possible; provided that in no event shall the
Company be responsible for any 409A Penalties that
arise in connection with any amounts payable under
this Agreement. To the extent any amount under this
Agreement is payable by reference to your termination
of employment, such term shall be deemed to refer to
your “separation from service,” within the meaning of
Section 409A of the Code. Notwithstanding any other
provision in this Agreement, if you are a “specified
employee,” as defined in Section 409A of the Code, as
of the date of your separation from service, then to
the extent the Company determines that,
notwithstanding the intent of the Company, an amount
payable to you (i) constitutes the payment of
nonqualified deferred compensation, within the
meaning of Section 409A of the Code, (ii) is payable
upon your separation from service and (iii) under the
terms of this Agreement would be payable prior to the
six-month anniversary of your separation from
service, such payment shall be delayed until the
earlier to occur of (a) the six-month anniversary of
the separation from service and (b) the date of your
death. 

 

7

 

	 	 	 	 	 
	 

	 	 	 	(e)   The interpretation, performance and
enforcement of this Agreement will be governed by the
law of the state of Delaware without regard to such
state’s conflicts of laws rules. 

	 
	 	 	 	 
	 

	 	 	 	(f)   Any question concerning the
interpretation of this Agreement or the Plan, any
adjustments required to be made under the Plan and
any controversy that may arise under the Plan or this
Agreement shall be determined by the Compensation
Committee of the Board (including any person(s) to
whom the Board has delegated its authority) in its
sole and absolute discretion. Such decision by the
Compensation Committee shall be final and binding.

	 
	 	 	 	 
	 

	 	 	 	(g)   This Agreement and the Plan represent
the entire agreement between the parties with respect
to the Award, and supersede and preempt any prior
understandings, agreements or representations by or
between the parties, written or oral, which may have
related in any manner to the subject matter of the
Award, including without limitation Section 3.5 and
Exhibit B of the Employment Agreement. In the event
of a conflict between the terms and conditions of the
Plan and the terms and conditions of this Agreement,
the terms and conditions of the Plan shall prevail.

	 	 	 	 	 
	 

	 	 	 	(h)   If all or any part of this Agreement
or the Plan is declared by any court or governmental
authority to be unlawful or invalid, such
unlawfulness or invalidity will not invalidate any
portion of this Agreement or the Plan not declared to
be unlawful or invalid. Any Section of this
Agreement (or part of such a Section) so declared to
be unlawful or invalid will, if possible, be
construed in a manner which will give effect to the
terms of such Section or part of such Section to the
fullest extent possible while remaining lawful and
valid. 

	 
	 	 	 	 
	 

	 	 	 	(i)   Either party’s failure to enforce any
provision of this Agreement shall not in any way be
construed as a waiver of any such provision, nor
prevent that party from thereafter enforcing any
other provision of this Agreement. The rights
granted both parties hereunder are cumulative and
shall not constitute a waiver of either party’s right
to assert any other legal remedy available to it.

	 
	 	 	 	 
	 

	 	 	 	(j)   This Agreement may be amended only by
a writing executed by you and the Company which
specifically states that it is amending this
Agreement. Notwithstanding the foregoing and subject
to Section 13(e) of the Plan, this Agreement may be
amended solely by the Board (or an appropriate
committee thereof) by a writing which specifically
states that it is amending this Agreement, so long as
a copy of such amendment is delivered to you.
Without limiting the foregoing, the Board (or an
appropriate committee thereof) reserves the right to
change, by written notice to you, the provisions of
this Agreement in any way it may deem necessary or
advisable to carry out the purpose of the grant as a
result of any change in applicable laws or
regulations or any future law, regulation, ruling or
judicial decision, provided that any such change will
be applicable only to rights relating to that portion
of the Award which is then subject to restrictions as
provided herein. 

 

8

 

	 	 	 	 	 
	 

	 	 	 	(k)   The rights and obligations of the
Company under this Agreement will be transferable by
the Company to any one or more persons or entities,
and all covenants and agreements hereunder will inure
to the benefit of, and be enforceable by the
Company’s successors and assigns. Without limiting
the foregoing, the Award and this Agreement shall be
assumed by eBay upon, and subject to, the
consummation of the Merger, following which all
references herein to the Board and the Compensation
Committee shall mean the Board of Directors and
Compensation Committee, respectively, of eBay, and
all references to Shares or Common Stock shall mean
shares of common stock of eBay; provided that EBITDA
shall continue to be determined solely with respect
to the Business Unit. You may not assign, transfer or
pledge the Award or any right or interest therein or
thereunder to anyone other than by will or the laws
of descent and distribution except with the prior
written consent of the Company. Upon ten (10) days
written notice to you with the opportunity to cure,
the Company may cancel your rights hereunder if you
attempt to assign or transfer them in a manner
inconsistent with this Agreement. 

	 
	 	 	 	 
	 

	 	 	 	(l)   All notices with respect to this
Agreement shall be in writing and shall be hand
delivered or sent by first class mail or reputable
overnight delivery service, expenses prepaid. Notice
may also be given by electronic mail or facsimile and
shall be effective on the date transmitted if
confirmed within 24 hours thereafter by a signed
original sent in a manner provided in the preceding
sentence. Notices to the Company or the Board (or an
appropriate committee thereof) shall be delivered or
sent (i) prior to the consummation of the Merger to
the Company’s headquarters, 935 First Avenue, King of
Prussia, PA 19406, to the attention of its Chief
Financial Officer and its General Counsel and (ii)
after the consummation of the Merger to eBay’s
headquarters, 2065 Hamilton Ave., San Jose, CA 95125,
to the attention of its General Counsel. Notices to
you shall be sufficient if delivered or sent to your
address as it appears in the regular records of the
Company or its transfer agent. 

	 
	 	 	 	 
	 

	 	 	 	(m)   The headings of the Sections in this
Agreement are inserted for convenience only and will
not be deemed to constitute a part of this Agreement
or to affect the meaning of this Agreement. 

	 
	 	 	 	 
	 

	 	 	 	(n)   You agree upon request to execute any
further documents or instruments necessary or
desirable in the reasonable determination of the
Company to effect the terms of this Agreement. 

 

9

 

	 	 	 	 	 
	 

	 	 	 	(o)    You agree to reasonably assist and
cooperate with the Company and its affiliates and/or
their agents, officers, directors and employees in
connection with any disputes, litigation or
investigations of any nature brought by, against, or
otherwise involving the Company or its affiliates
during the period of your employment by the Company
and thereafter. The Company agrees it will reimburse
expenses incurred by you and pay compensation to you
for the two aforementioned periods in the manner as
follows: (x) the Company will reimburse you for
reasonable out of pocket expenses incurred in
connection therewith, in accordance with Company
policy during the period in which you are employed by
the Company and (y) the Company also agrees it will
reimburse you for reasonable out of pocket expenses
submitted to the Company and reasonable compensation,
as mutually agreed between you and the Company and
such agreement by the Company shall not be
unreasonably withheld, delayed or conditioned, in
connection with the required activities outlined
above in this section during the period after
termination of your employment with the Company.
Notwithstanding anything to the contrary contained
herein or in the Company policy, as applicable, (i)
any and all compensation payable to you in accordance
with this paragraph shall be paid by the Company to
you by no later than March 15 following the calendar
year in which you rendered services giving rise to
the compensation; and (ii) any and all expense
incurred by you that are eligible for reimbursement
in accordance with this paragraph shall be paid by
the Company to you by no later than March 15
following the calendar year in which you incurred the
expense, provided that you submit proof to the
Company of the expense incurred in accordance with
the submittal procedures contained in the Company’s
expense reimbursement policy. 

Remainder of page intentionally left blank

 

10

 

The Company hereby grants this Award to you as of the Grant Date specified
above, and by your signature below you acknowledge your agreement to the terms of this Performance
Award Agreement.

	 	 	 	 	 
	GSI COMMERCE, INC.
	 	 	 	 
	 
	 	 	 	 
	/s/ Michael R. Conn
 

By

	 	June 16, 2011
 

Date
	 	 
	 
	 	 	 	 
	Michael R. Conn
 

Name

	 	 	 	 
	 
	 	 	 	 
	Executive Vice President,
Finance 

and Chief Financial Officer
 

Title

	 	 	 	 
	 
	 	 	 	 
	Acknowledged and Accepted by:
	 	 	 	 
	 
	 	 	 	 
	/s/ Christopher Saridakis
 

Christopher Saridakis

	 	June 15, 2011
 

Date
	 	 

Signature Page to Saridakis Performance Award Agreement

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