Document:

Letter of Employment, dated June 4, 2007 - Joseph Saunders

 Exhibit 10.6 
 

 
 June 4, 2007 
 Joseph
Saunders 
 Dear Joe: 
 We refer to the letter
agreement, dated February 12, 2007 (the “Prior Letter Agreement”), between Visa International Service Association (“Visa International”) and you, pursuant to which you agreed to serve as Executive Chairman of
the Transition Governance Committee (“TGC”) and Interim Chief Executive Officer Pro tempore of Visa Inc., a corporation to be formed. We are pleased to confirm your appointment by the TGC and the Board of Directors of Visa
International as Chairman and Chief Executive Officer of Visa Inc. This letter agreement will govern the terms of your employment, and supersedes and replaces the Prior Letter Agreement, which is terminated and of no further force or effect as of
the date of this letter agreement. 
 You will be an employee of Visa International on a temporary basis until Visa Inc. is formed, as
explained below. You will report to the TGC for the benefit of the Visa enterprise as a whole (“Visa”). Upon the formation of Visa Inc., your employment will transfer to Visa Inc., and Visa International will assign to Visa Inc.,
and Visa Inc. will assume all of the rights and responsibilities of your employer pursuant to this letter agreement. 
 Subject to the terms
of this letter agreement, you will: 
 (a) serve as Chief Executive Officer of Visa Inc. (“CEO”) for a term commencing
May 15, 2007 and ending on May 15, 2009, subject to earlier termination by the Board of Directors of Visa Inc., and 
 (b) continue
to serve as Chairman of the TGC or, upon formation, the Visa Inc. Board of Directors at least through the date that is 90 days following the date of Visa Inc.’s initial public offering, subject to earlier termination by the Board of Directors
of Visa Inc. 
 The foregoing to the contrary notwithstanding, the Board of Directors of Visa Inc. may, in its discretion, elect to extend
the term of your employment as CEO and/or as Chairman hereunder for one or more additional periods determined by the Board of Directors upon notice by it to you prior to the end of the then-current term of employment as CEO or Chairman, as the case
may be. 
 You have resigned your positions as a member of the Boards of Directors of Visa International, Visa USA, Inc. and any of their
affiliates. As CEO and Chairman hereunder, you will report to the TGC or, upon formation, the Visa Inc. Board of Directors. Your office will be located in San Francisco, California, subject to travel required by your employment. 
 Visa International 
 P.O. Box 8999 
 San Francisco, CA 94128-8999 
 U.S.A. 

 As Chairman and CEO, your key responsibilities will be to provide executive leadership over the
transition process to Visa Inc. Your primary tasks will be the following: 
 (1) Governance: 
  

	 	(A)	recruit independent directors of Visa Inc.; 

  

	 	(B)	lead the development of the Visa Inc. Board of Directors, including composition and criteria for members; 

  

	 	(C)	develop compensation approach and plans of Visa; and 

  

	 	(D)	approve restructuring communications for Visa. 

 (2)
Structure: 
  

	 	(A)	deliver executed definitive agreement for establishment of Visa; and 

  

	 	(B)	administer the budget for Visa during the transition. 

 (3) Organization: 
  

	 	(A)	capture and deliver synergies as contemplated in connection with Visa’s Project Atlas; 

  

	 	(B)	develop the organizational structure for Visa; 

  

	 	(C)	develop the human resources policies of Visa, including compensation approach; and 

  

	 	(D)	select top management of Visa. 

 In addition, you will
have such duties and responsibilities as are determined by the Board of Directors of Visa Inc. 
 You will perform the foregoing
responsibilities and tasks subject to the approval of the TGC and the Board of Directors of Visa Inc., as applicable. 
 You will devote your
full business time and efforts to the business of Visa; provided that you may continue to serve as a member of the boards of directors of Affinion and NewStar Financial, so long as such service does not create a conflict of interest with your
service with, or interfere with your performance of your duties with, Visa, as determined in the good faith discretion of the TGC or the Board of Directors of Visa Inc. (in each case, excluding you). 
 As base compensation (“Base Compensation”) for service as Chairman and CEO as contemplated by this letter agreement, you will receive a
base salary at an annual rate equal to $950,000 during your term of employment. Base Compensation will be payable in accordance 

  

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with Visa International’s regular payroll schedule. You will also be eligible for paid vacation, holiday and sick days in accordance with Visa
International’s policies and procedures, and you will be eligible to participate in the employee benefit plans of Visa International, subject to the terms and conditions of such plans. You and your spouse will also be eligible to receive health
benefits pursuant to Visa International’s, Visa Inc’s or their successor’s or designated entity’s health plan, as in effect from time to time, during the term of your employment through the earlier of (i) your eligibility
for health benefits from any other employer and (ii) your attainment of age 65, except in the event your employment is terminated by Visa with cause (as determined by in the good faith discretion of the TGC, or, if the TGC is not then in
existence, the Board of Directors of Visa Inc. (in each case, excluding you)) (“Cause”). “Cause” shall be interpreted to include the following: neglect of your duties (other than on account of a medically-determined
incapacity which renders you unable to regularly perform usual duties); committing fraud, misappropriation or embezzlement in the performance of duties; conviction of a felony; disclosure of confidential information in violation of Visa’s
written policies; or engaging in conduct that is materially injurious to Visa. You will be required to pay the portion of the cost of such benefits as is paid by actively employed employees from time to time. 
 You will be eligible for an annual performance bonus with respect to the term of your employment. The target annual performance bonus will be 200%-300%
of Base Compensation earned by you. Your actual annual performance bonus can exceed or fall below this range and will be decided by the TGC, or, if the TGC is not then in existence, the Board of Directors of Visa Inc. (in each case, excluding you),
in its discretion, based on such factors as the following: execution of definitive agreements in connection with the formation of Visa Inc. and successful achievement of your above-described key responsibilities and primary tasks. Subject to the
following paragraph, your annual performance bonus with respect to fiscal year 2007 will be not less than 250% of Base Compensation earned by you during fiscal year 2007 and will be payable after the close of the fiscal year, on the same schedule as
that for other Visa International employees. You will also be eligible for a long-term performance bonus with respect to the term of your employment. The target long-term performance bonus will be 500%-600% of Base Compensation earned by you, and
your actual long-term performance bonus within this range will be decided by the TGC, or, if the TGC is not then in existence, the Board of Directors of Visa Inc. (in each case, excluding you), in its discretion, based on its evaluation of your
performance. With respect to fiscal year 2007, the TGC will recommend to the Visa Inc. Board of Directors your 2007 long-term performance bonus be converted into, and payable in, shares of Visa Inc. common stock, based on the fair market value of
such stock on the conversion date, and on mutually-agreeable terms. Such bonus will be so paid if so approved by the Visa Inc. Board of Directors. If the TGC or Visa Inc. Board of Directors deems this impractical, any long-term performance bonus for
which you may be eligible will be payable in cash. 
 In order to be eligible to receive any annual or long-term bonus performance bonus, you
must be in an “active working status” at the time of the bonus payment, except as provided in the immediately following paragraph. For purposes of this letter agreement, “active working status” means that you have not resigned
(or given notice of your intent to resign) and have not been terminated for any reason (or been given notice of your termination). 
  

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 If your employment is terminated prior to May 15, 2009, (i) involuntarily by Visa without Cause
or (ii) due to your permanent disability (within the meaning of the Visa disability plan in which you then participate, or, if none, as determined by the TGC, or, if the TGC is not then in existence, the Board of Directors of Visa Inc. (in each
case, excluding you)), you or your beneficiaries will receive as severance (a) two years’ Base Compensation, (b) two times your target annual performance bonus, at 250%, for the then-current fiscal year, and (c) the full-value of
any long-term performance bonus that would otherwise have become payable during the two years following such termination. Any severance amounts described in clauses (a) and (b) immediately preceding will be payable in a single lump-sum
promptly following such termination of employment and any severance amount described in clause (c) immediately preceding will be payable when such long-term performances bonuses may be payable to similarly situated active employees of Visa.
Notwithstanding the foregoing, in the event your employment terminates, if necessary to avoid any violation of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), with respect to any amounts payable
pursuant to this paragraph, you will not receive any such amounts until the first scheduled payroll date that occurs more than six months following the date of termination of employment. As a condition of receiving any severance for which you
otherwise qualify under this paragraph, you agree to execute, deliver and not revoke (within the time period permitted by applicable law) a general release of Visa and its affiliates and their respective officers, directors, employees and owners
from any and all claims, obligations and liabilities of any kind whatsoever arising from or in connection with your employment or termination of employment with Visa or this letter agreement (including, without limitation, civil rights claims), or
otherwise, in such form as is requested by Visa. Upon termination of your employment with Visa under any circumstances, all of your rights to compensation, benefits, bonuses, severance or similar remuneration, other than any severance to which you
are entitled in accordance with the foregoing provisions of this paragraph, from Visa will terminate. 
 To the extent that the aggregate
amount of any payments described in the immediately preceding paragraph are subject to the excise tax provisions of Section 4999 of the Code, Visa will pay you an additional payment in an amount that when added to such payments will place you
in the same after-tax position as if the excise tax imposed by Section 4999 of the Code (but excluding any income taxes and penalties imposed pursuant to Section 409A of the Code) did not apply to such payments. The amount of this
additional payment will be determined by Visa’s independent accountants and, as required, remitted to the applicable tax authorities. 
 Your cash compensation will be subject to applicable deductions and required withholdings. 
 During the term of your employment
with Visa and thereafter: (a) you will not divulge, transmit or otherwise disclose (except as legally compelled by court order, and then only to the extent required, provided that you have given prompt notice to the TGC (or, if TGC is
not then in existence, the Board of Directors of Visa Inc.) of any such order), directly or indirectly, other than in the regular and proper course of business of Visa, any customer lists, trade secrets or other confidential knowledge or information
with respect to the operations or finances of Visa or with respect to confidential or secret processes, services, techniques, customers, clients or plans with respect to Visa (all of the foregoing collectively hereinafter referred to as
“Confidential Information”), and (b) you will not use, directly or indirectly, any Confidential Information for the 

  

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benefit of anyone other than Visa; provided, however, that you have no obligation, express or implied, to refrain from using or disclosing to
others any such knowledge or information which is or hereafter shall become available to the general public other than through disclosure by you. All Confidential Information, new processes, techniques, know-how, methods, inventions, plans,
products, patents, services and devices developed, made or invented by you, alone or with others, while an employee of Visa which are related to the business of Visa will be and become the sole property of Visa, unless released in writing by the
TGC, or, if the TGC is not then in existence, the Board of Directors of Visa Inc. (in each case, excluding you), and you hereby assign any and all rights therein or thereto to Visa. You hereby acknowledge and confirm that you understand that your
covenants contained in the immediately preceding sentence are limited by California Labor Code Section 2870, which provides: 
 “(a) Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer shall not apply to an invention that the employee developed
entirely on his or her own time without using the employer’s equipment, supplies, facilities, or trade secret information except for those inventions that either: 
 (1) Relate at the time of conception or reduction to practice of the invention to the employer’s business, or actual or demonstrably
anticipated research or development of the employer; or 
 (2) Result from any work performed by the employee for the
employer. 
 (b) To the extent a provision in an employment agreement purports to require an employee to assign an invention
otherwise excluded from being required to be assigned under subdivision (a), the provision is against the public policy of this state and is unenforceable.” 
 Nothing in this letter agreement is intended to expand the scope of protection provided you by Sections 2870 through 2872 of the California Labor Code. Your covenants set forth in the foregoing paragraph are collectively referred to
below as the “Covenants.” 
 As an employee of Visa, you agree to be bound by and comply with all of Visa’s employment
policies and practices, including but not limited to all terms and conditions contained in any employee handbook and other documents that may be issued to you, as may be amended from time to time. 
 Any dispute or controversy between the parties relating to this letter agreement or relating to or arising out of your employment with Visa will be
settled by binding arbitration in the city of San Francisco, State of California, pursuant to the governing rules of the American Arbitration Association. Judgment upon the award may be entered in any court of competent jurisdiction. All parties
will maintain the confidentiality of any such arbitration, unless the parties expressly agree otherwise in writing or the law provides to the contrary. Notwithstanding anything herein to the contrary, if any dispute arises between the parties
concerning the Covenants, or if Visa makes any claim concerning the Covenants, Visa will be entitled to seek 

  

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preliminary relief in a court of competent jurisdiction pending the outcome of arbitration with respect to such dispute or claim. If such judicial
proceedings are instituted, the parties agree that such proceedings shall not be stayed or delayed pending the outcome of any arbitration proceedings hereunder. In the event of any dispute under this letter agreement, all reasonable attorney fees
and disbursements of the prevailing party will be paid by the non-prevailing party. 
 Notwithstanding any other provisions of this letter
agreement to the contrary, all of the boards of directors of Visa International, Visa USA, Inc. and Visa Canada Association and the regional boards of directors of Visa International, including Inovant, L.L.C., must confirm your appointment before
this offer becomes effective. 
 This letter agreement constitutes the entire agreement between Visa and you concerning your employment,
supersedes all prior agreements and undertakings, both written and oral, including the Prior Letter Agreement, and may not be modified or amended in any way except in writing signed by both Visa International and you. 
 Please indicate your acknowledgement of, and agreement with, the matters set forth above by signing this letter agreement as set forth below. 

 

			
	Sincerely yours,
	
	VISA INTERNATIONAL SERVICE ASSOCIATION
		
	By:	 	 /s/ William Campbell

		 	William Campbell
		 	Chairman of the Board of Directors of Visa International Service Association, and Chairman of the Transition Governance Committee

 AGREED AND ACCEPTED: 
 JOSEPH SAUNDERS 
  

					
	 /s/ Joseph Saunders
	 		 	 June 11, 2007

	Signature	 		 	Date

  

 Page 6Visa U.S.A. Long Term Incentive Plan for fiscal 2006

 Exhibit 10.7 
 Visa USA 
 Long Term Incentive Plan 
 For Fiscal Year 2006 
 Plan Cycle: 10/1/2005 – 9/30/2008 

 Section 1: Definitions 
  

	1.1	Board – The Board of Directors of the Company, or any designated members or committee thereof with responsibility for executive compensation matters.

  

	1.2	CEO – The Chief Executive Officer of Visa USA. 

  

	1.3	Company – Visa USA. 

  

	1.4	Corporate Performance – Performance against objectives established for Visa USA. 

  

	1.5	Deferred Award – The Participant’s Performance Award that is deemed invested during the two year Deferral Period. 

  

	1.6	Deferral Period – The two year period that begins October 1, 2006 and ends September 30, 2008. 

  

	1.7	Extraordinary Occurrences – Those events that, in the opinion of the Board, are outside the control of the Company and are likely to have a significant unanticipated
effect, whether positive or negative, on the Company’s operating and/or financial results. 

  

	1.8	Final Award—The amount payable to a Participant by the Company under the LTIP. No payout or award from the LTIP shall be included in the definition of “pay” or
“compensation” for purposes of any retirement benefit calculation, agreement, or plan, whether qualified or nonqualified, maintained or sponsored by the Company or any of its affiliates. 

  

	1.9	LTD Plan – The Visa Long Term Disability Plan. 

  

	1.10	LTIP – The Visa USA Long Term Incentive Plan. 

  

	1.11	Participants – Designated senior level executives of Visa USA who have a significant influence on strategic direction and long term performance. Executives must be
nominated by the CEO and approved by the Board. Within parameters approved by the Board, the CEO may designate executives below the senior executive level. 

  

	1.12	Performance Award – Amount that is determined at the end of the one year Performance Period. 

  

	1.13	Performance Measure – Each factor that is taken into consideration under the LTIP in determining the value of the Performance Award. 

  

 2 

	1.14	Performance Period – The one year period that begins October 1, 2005 and ends September 30, 2006. 

  

	1.15	Plan Cycle – The three year period that begins October 1, 2005 and ends September 30, 2008. 

  

	1.16	Plan Year – The Company’s fiscal year, which starts October 1 and ends September 30. 

  

	1.17	Target Award – The initial value of an award at the beginning of the Plan Cycle and prior to any Performance Measure adjustments or Final Award value determination.

  

	1.18	VIP – The Visa USA Incentive Plan. 

 Section 2:
Purpose of the LTIP 
 The purpose of the LTIP is to motivate, reward and retain certain executives who make a significant contribution
towards the Company’s achievement of Board established performance targets. The LTIP accomplishes its objective by providing eligible executives with a competitive long term compensation opportunity tied to the performance of the Company and
the performance of selected investments. 
 Section 3: General Description of the LTIP 
  

	3.1	The LTIP provides for annual grants of long term incentive awards comparable to competitive levels of long term incentives among peer group companies. LTIP grants are revalued at
the end of the first Plan Year in which they are granted based upon Company performance against objective performance measures set at or near the beginning of the Plan Year. For the LTIP for 2006, Performance Awards will be based on the actual
corporate performance results of the VIP for FY 2006 as determined by the CEO and the Board. The value of the Final Awards will be determined by the subsequent performance of various available investments as directed by the Participants over the
course of the Deferral Period. 

  

	3.2	Extraordinary Occurrences may be considered by the Board when assessing performance results, and adjustments may be made to the performance measures by the Board to ensure
that the purpose of the LTIP is served, and that the best interests of the Company and the Participants are protected, and not brought into conflict with one another. 

  

 3 

 Section 4: Long Term Incentive Awards 
  

	4.1	A Target Award is established at the beginning of the Plan Cycle for each Participant by the CEO and the Board. This Target Award may vary at the sole discretion of the CEO
and the Board. 

  

	4.2	The Target Award will be expressed as a fixed dollar amount. At the end of the Performance Period, the Target Award will be revalued based upon the CEO’s and
Board’s evaluation of Company performance against the established VIP for FY06 corporate performance measures. A Participant’s Performance Award may be modified at the discretion of the CEO or the Board of Directors. The resulting
Performance Award value can range from 0% to 220% of the Target Award: 

  

			
	 Actual VIP Corporate Performance
	  	 LTIP Performance Award

	Maximum Performance	  	220% of Target Award
	Above Target Performance	  	160% of Target Award
	Target Performance	  	100% of Target Award
	Threshold Performance	  	20% of Target Award
	Below Threshold Performance	  	0% of Target Award

  

	4.3	Once determined, the Performance Award is deferred as a Deferred Award until the end of the Deferral Period. The Deferred Award will be credited at the beginning of
the Deferral Period to an account bearing the name of the individual Participant, and such account will be further credited with income or loss from investments allocated to the account during the Deferral Period. The Participant may select from a
choice of fixed and/or variable investments as made available by the Board. Should the Participant not select an investment option, the Deferred Award will be deemed invested in the Fidelity Retirement Money Market Fund. No part of any award vests
until the Plan Cycle ends. 

  

	4.4	The vesting of the Deferred Award is conditioned on the Participant being employed by the Company and actively working at the end of the Plan Cycle. The Participant shall have no
beneficial entitlement to or beneficial interest in the Target Award, the Performance Award or the Deferred Award, or to any amount credited to the account bearing his or her name, until the Deferred Award vests at the end of the Deferral Period.
The vested Deferred Award is payable as a Final Award in accordance with Section 6.2. 

  

 4 

	4.5	In the event of a Participant’s voluntary or involuntary termination of employment with the Company before the end of the Plan Cycle, no award is paid under this LTIP
except as provided under Section 4.6 and Section 4.7. 

  

	4.6	In the event of termination of employment due to (a) voluntary retirement, or retirement under the terms of a formal Company severance plan, after reaching age 60,
(b) voluntary termination, or retirement under the terms of a formal Company severance plan, after age 50 with 5 years of service, or (c) disability as defined under the LTD Plan or death during a Plan Cycle, a prorated award is paid to
the Participant (or the Participant’s estate or designated beneficiary in the case of death). In the case of (a) or (b), a Participant’s age and service is determined as of the date of termination of employment, unless termination
occurs under the terms of a formal Company severance plan, in which case age and service, for purposes of eligibility for a prorated payment (but not calculation of the amount of the prorated payment) is determined as of the end of the period on
which severance pay is based. The Board shall have the authority, in its sole discretion, to waive the proration feature of the LTIP and authorize the payment of a nonprorated award. 

 In the event of termination of employment before the end of the Performance Period, a prorated award is valued and paid at termination or the date the
Participant becomes disabled as defined under the LTD Plan at 100% of the prorated Target Award. In the event of termination during the Deferral Period, a prorated award is valued and paid as close as practicable to the end of the month during which
termination occurs or the date the Participant becomes disabled as defined under the LTD Plan. The amount of any prorated award is determined by reference to the number of months that the Participant performed services during the Plan Cycle, divided
by 36. 
  

	4.7	In the event that the Participant is reassigned mid-Plan Year or mid-Plan Cycle from one Region to another (Inovant LLC, Visa USA, and Visa Worldwide Services shall each be
deemed a Region solely for purposes of this Section), any LTIP award shall be apportioned between Regions. 

 Section 5: Plan
Administration 
  

	5.1	The Board has the sole responsibility for interpreting, administering, and modifying the LTIP as necessary. The Board’s construction, interpretation, and administration
of the LTIP shall be final and binding on all parties. 

  

 5 

	5.2	The Performance Measures used to determine the Performance Award may change from Plan Year to Plan Year to reflect modifications in the Company’s strategic objectives.
Such changes may be made as deemed necessary by the Board, to serve the best interests of the Company. Maintenance of financial information relevant to the measurement of performance during a Plan Year shall be the responsibility of an
administrative committee or a senior executive of the Company. The financial information considered as part of LTIP operation may be audited annually by the Company’s independent auditors prior to submission to the Board for consideration.

 Section 6: Payment of Awards 
  

	6.1	If actual performance under the LTIP falls between performance levels specifically designated in the LTIP, then the amount of the Performance Award will be calculated by
linear interpolation. 

  

	6.2	Final Awards will be paid in cash to Participants as soon after the end of the Plan Cycle in which they have been earned as is reasonably practicable.

  

	6.3	The payment of all or any portion of a Final Award may be deferred under the terms of the Visa Deferred Compensation Plan by the Participant making a timely and valid
election thereunder. 

 Section 7: Miscellaneous 
  

	7.1	The Board may terminate, amend or modify the LTIP as well as the Target Awards granted under the LTIP at any time. 

  

	7.2	No right to an award under the LTIP exists, and no right or interest in an award under the LTIP is assignable or transferable, or subject to any lien or encumbrance, either
directly or indirectly, by operation of law or otherwise, including levy, garnishment, attachment, pledge, or bankruptcy. 

  

	7.3	Participation in the LTIP does not guarantee or create any right to continued employment by the Company, and the Company reserves the right to dismiss any Participant at any
time. Participation in one Plan Cycle does not guarantee participation in another Plan Cycle. 

  

	7.4	All awards to be paid under the LTIP shall be subject to all applicable withholding taxes, including federal and state income taxes and employment taxes. The Company shall
withhold such taxes in accordance with applicable tax regulations. 

  

	7.5	The laws of the State of California shall control all matters relating to the LTIP. 

  

 6

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