Document:

Exhibit

Exhibit 10.1

    

PayPal Holdings, Inc.
INDEPENDENT DIRECTOR COMPENSATION POLICY
(Effective as of January 1, 2017)

Independent Directors (as defined in the PayPal Holdings, Inc. 2015 Equity Incentive Award Plan, as it may be amended and restated from time to time (the “Plan”)) of PayPal Holdings, Inc. (“PayPal”) shall be eligible to receive cash and/or equity compensation as set forth in this Independent Director Compensation Policy (this “Policy”).  The cash compensation and equity grants described in this Policy shall be paid or be made, as applicable, automatically and without further action of the Board of Directors of PayPal (the “Board”) or the Compensation Committee of the Board, to each Independent Director who may be eligible to receive such cash compensation or equity grants.  This Policy shall remain in effect until it is revised or rescinded by further action of the Board or the Compensation Committee of the Board.

Equity Awards:

	
		
	All Independent Directors
	$250,000 in PayPal common stock 

	Board Chair
	$100,000 in PayPal common stock

For purposes of clarity, the Board Chair receives $100,000 in PayPal common stock, in addition to the $250,000 in PayPal common stock he receives as an Independent Director.
      
Annual Retainers:    

	
		
	All Independent Directors
	$80,000/year

	Board Chair
	$100,000/year

	Lead Independent Director
	$75,000/year

	Audit Committee Chair
	$25,000/year

	Compensation Committee Chair and Corporate Governance & Nominating Committee Chair
	$20,000/year

	Audit Committee Member
	$20,000/year

	Compensation Committee Member
	$18,000/year

	Corporate Governance & Nominating Committee Member
	$10,000/year

For purposes of clarity, (i) an Independent Director who serves as the chair of a committee will be entitled to the committee chair annual retainer for that specific committee in addition to the Independent Director annual retainer but will not be entitled to the committee annual retainer for serving as a member of that specific committee and (ii) an Independent Director who serves as Board Chair will be entitled to the Board Chair annual retainer in addition to the Independent Director annual retainer.

Annual retainers shall be payable on the first trading day after January 1 of each year in which the Independent Director serves as an Independent Director of the Board of PayPal (“the Annual Retainer Payment Date”) and shall be paid as soon as administratively practicable following the Annual Retainer Payment Date. If an Independent Director is elected or appointed to serve as a member of the Board, or appointed to serve as a member of a committee or as a chair of a committee in which such director is not a member prior to such appointment, during a calendar year but following the Annual Retainer Payment Date for such calendar year, his or her annual retainer(s) (or additional retainer if the Independent Director is serving in a different capacity) will be prorated, by multiplying such annual retainer(s) by a fraction, the numerator of which is the number of days from the appointment or election 

Exhibit 10.1

date to December 31 of such calendar year, and the denominator of which is 365 (the “prorated annual retainer”).  The prorated annual retainer shall be paid to the Independent Director as soon as administratively practicable following such appointment or election.  An Independent Director that changes roles during a calendar year but following the Annual Retainer Payment Date for such calendar year will be entitled to a proration of the incremental increase, if any, between his or her annual retainer amount received for such calendar year and the increased retainer amount. For the avoidance of doubt, the Independent Director is not required to repay his or her annual retainer(s) or any portion thereof in the event that such Independent Director’s role is changed or service is terminated during the calendar year.  In lieu of receiving an annual retainer in cash, an Independent Director may elect to receive a fully vested Stock Payment award of PayPal common stock having a Fair Market Value equal to the forgone retainer. 

All capitalized terms used but not defined herein (or in Exhibit A) shall have the meaning ascribed to them in the Plan.  See Exhibit A for additional information regarding Independent Director equity compensation.

Exhibit 10.1

EXHIBIT A

PayPal Holdings, Inc.
INDEPENDENT DIRECTOR EQUITY COMPENSATION POLICY
(Effective as of January 1, 2017)

Independent Directors of the Board of Directors (the “Board”) of PayPal Holdings, Inc. (“PayPal”) are entitled to receive equity awards as part of the compensation for their service to the Board.  The Compensation Committee of the Board (the “Committee”) is responsible for reviewing and approving the equity compensation arrangements for Independent Directors.  Currently, the Committee has approved an arrangement whereby Independent Directors receive awards of PayPal common stock under the PayPal Holdings, Inc. 2015 Equity Incentive Award Plan, as it may be amended and restated from time to time (the “Plan”) according to a set, non-discretionary formula.  This memorandum shall serve as written documentation of the non-discretionary formula established by the Committee pursuant to Section 11.1 of the Plan and shall supersede any prior policy or description of the formula.  All awards are subject to the terms and conditions of the Plan and an award agreement in the form approved by the Committee to evidence such type of grant pursuant to this policy (the “award agreement”).

		
	(1)
	Annual Award of Common Stock

Each Independent Director shall be granted a fully vested Stock Payment award of PayPal common stock under the Plan, promptly following the annual meeting of stockholders of PayPal (“Annual Meeting”). The number of shares of PayPal common stock subject to the award will be determined by dividing the amount of the annual equity award (i.e., $250,000 and, with respect to the additional equity award to the Board Chair, $100,000) by the per share Fair Market Value of PayPal common stock on the date of the Annual Meeting, rounded up to the nearest whole share (the “Annual Stock Award”).

If an Independent Director is appointed or elected at any time other than an Annual Meeting, the Independent Director shall not be eligible to receive an Annual Stock Award for any period prior to the first Annual Meeting following his or her appointment or election.

		
	(2)
	Annual Retainer Elections

An Independent Director may elect to have all of his or her annual retainer (“Annual Retainer”) for services to the Board (and, to the extent applicable, on any committees thereof) in a particular taxable year delivered in the form of a fully vested Stock Payment award for PayPal common stock under the Plan rather than in the form of an annual cash payment (the “Elective Stock Award”).  Such an election may only be made with respect to 100% of the Annual Retainer(s) for the calendar year and may not be made for a portion of any Annual Retainer.  In the event an Independent Director receives a prorated Annual Retainer due to his or her appointment or election during a calendar year but following the Annual Retainer Payment Date (as defined in the Policy) for such calendar year, such Independent Director may elect to receive 100% of his or her prorated Annual Retainer for the calendar year as an Elective Stock Award.  An Independent Director who elects to receive an Elective Stock Award is referred to as an “Electing Director.”  

The number of shares of PayPal common stock subject to each Elective Stock Award will be determined by dividing the amount of the cash payment in lieu of which such Elective Stock Award is being made by the per share Fair Market Value of PayPal common stock on the date that the cash payment would otherwise be payable, rounded up to the nearest whole share.  For example, if an Electing Director were entitled to an Annual Retainer payment of $100,000 on January 3 and the per share Fair Market Value of PayPal common stock was $40 on such date, the Electing Director would be entitled to receive a fully vested Stock Payment award for 2,500 shares of PayPal common stock in lieu of the $100,000 cash payment.  The Elective Stock Award will be granted as of the date the cash payment would otherwise have been payable to the Independent Director.

Exhibit 10.1

Each Electing Director’s election must be in a form approved by the Committee and must be delivered to the Committee (or a person designated by the Committee to receive such election) as specified by the Committee or as otherwise prescribed by law.

(3) Treatment of DSUs Previously Granted to Independent Directors

Any elections made by Independent Directors, under the terms and conditions of the eBay Inc. Independent Director Compensation policy or the PayPal Holdings, Inc. Independent Director Compensation policy at the time of election, to have their annual retainers in respect of service to the Board prior to January 1, 2016 delivered in the form of DSUs (rather than in cash) will continue to apply to such annual retainers and shall be administered under such policies.

All applicable terms of the Plan and the applicable award agreement shall continue to apply to all DSUs. With respect to DSUs granted prior to August 1, 2013 under the eBay Inc. Independent Director Compensation policy and assumed by PayPal, PayPal has the discretion to deliver shares of PayPal common stock subject to the vested DSU award or a lump sum payment in cash equal to the aggregate Fair Market Value of such shares on the date of distribution.  DSUs granted on or after August 1, 2013 may only be settled in shares of PayPal common stock.  

Notwithstanding anything to the contrary, for any Independent Director who ceases to be a Board member, any unvested DSUs granted prior to the effective date of such resignation or termination shall automatically vest in full. 

In addition, any unvested DSU awards previously granted to an Independent Director will automatically vest in full and become distributable immediately prior to a Change in Control (as defined under the Plan), subject to Section 409A of the Code.

(4)  DSUs Held by Former Directors of eBay Inc.

In connection with the distribution of shares of PayPal common stock to the stockholders of eBay Inc., DSUs previously granted to members of the eBay Inc. Board of Directors (the “eBay Board”) were adjusted in the manner set forth in the Employee Matters Agreement by and between PayPal and eBay Inc., dated July 17, 2015, and PayPal assumed and shall deliver or pay the portion of such DSUs relating to PayPal common stock to such members upon their separation from service with the Board or, if such member continues to serve as a member of the eBay Board after such distribution, upon their separation from service with the eBay Board.Exhibit 10.1

 

SEPARATION AGREEMENT

 

This Separation Agreement (this “Agreement”) is made and entered into as of 7:00 a.m., Central Time, January 17, 2017 (the “Effective Time”), by and between Christopher & Banks Corporation, a Delaware corporation with its headquarters located in Plymouth, Minnesota (the “Company”) and LuAnn Via (“Executive”).

 

RECITALS

 

WHEREAS, the Company has employed Executive as its Chief Executive Officer (“CEO”) pursuant to the terms of that certain Amended and Restated Employment Agreement, entered into as of June 26, 2014 (as amended by Amendment No. 1 thereto, entered into as of February 24, 2016, the “Employment Agreement”);

 

WHEREAS, the Company has determined to terminate the employment of Executive without “Cause” (as defined in the Employment Agreement, “Cause”) pursuant to the terms and condition of Article 12 of the Employment Agreement, effective as of the Effective Time;

 

WHEREAS, the Company and Executive desire to set forth their complete understandings with regard to the foregoing termination of employment; and

 

WHEREAS, concurrently with the execution of this Agreement by the Company and Executive, Executive has executed a Release of Claims in the form attached to the Employment Agreement as Exhibit A thereto (the “Release”).

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing recitals, the mutual covenants set forth below and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged by the parties hereto, the Company and Executive hereby agree as follows:

 

Section 1.                                           Termination of Employment; Board Resignation.  The Company hereby terminates the employment of Executive from the position of CEO, and all other officer or employee positions she may hold with the Company or any subsidiary or affiliate of the Company, effective as of the Effective Time (the “Termination”).  In connection therewith, and pursuant to Section 12.4 of the Employment Agreement, when fully executed by the parties, this Agreement will also constitute Executive’s resignation from her position as a member of the Company’s Board of Directors and from all other boards of directors of any subsidiary or affiliate of the Company on which she may serve.

 

Section 2.                                           Termination without Cause; Payments.  The Company and Executive acknowledge and agree that the Termination constitutes a termination without Cause, pursuant to the terms of Section 12.1 of the Employment Agreement.  Therefore, Executive shall be entitled to receive the payments and benefits set forth in such Section, pursuant to the terms and conditions thereof (including, without limitation, the terms of Section 12.1(a) and Section 12.1(b)).  For the avoidance of doubt (but, without in any way changing the legal effect of the terms of the Employment Agreement), the parties agree that, subject to the Executive’s compliance with Section 12.1(b) of the Employment Agreement (including, as noted therein, Executive’s continued compliance with Articles 6, 7 and 8 thereof), Executive shall be entitled to

 

 

receive the following, after the Termination (subject to withholding of any taxes (and any other obligations) required to be withheld by the Company):

 

a.                                      severance payments from the Company in an aggregate amount equal to $850,000, payable in accordance with the Company’s regular payroll schedule after expiration of any applicable rescission periods (as more specifically set forth in the Release);

 

b.                                      bonus payment earned by Executive under the Company’s Spring component of the Fiscal 2016 Annual Incentive Program (the “Spring Plan”), which amount (subject to confirmation following the audit by the Company’s independent auditors of the Company’s financial statements as of and for the fiscal year ended January 28, 2017) is expected to be equal to $285,600, payable in accordance with the terms of the Spring Plan;

 

c.                                       provided that Executive is then-eligible for and timely elects COBRA coverage, the Company shall pay Executive’s COBRA premiums for a period not to exceed eighteen (18) months, and that amount will be equal to her then-current COBRA payment; and

 

d.                                      payment by the Company to Executive of her accrued but unused vacation for calendar year 2017, through the Effective Time, in an amount equal to $3,935.62.

 

Section 3.                                           Continuing Terms of Employment Agreement.  For the avoidance of doubt (but, without in any way changing the legal effect of the terms of the Employment Agreement), the parties acknowledge and agree that the following Articles of the Employment Agreement, and those provisions of the Employment Agreement necessary to enforce such Articles, shall survive the Termination and any future termination of the Employment Agreement:

 

	
Article
    	
 
    	
Title
    
	
5
    	
 
    	
Certain Definitions (other than   Sections 5.2 and 5.6)
    
	
6
    	
 
    	
Noncompetition and   Nonsolicitation*
    
	
7
    	
 
    	
Confidential Information and   Company Property**
    
	
8
    	
 
    	
Intellectual Property and Work   For Hire
    
	
10
    	
 
    	
Certain Remedies
    
	
12
    	
 
    	
Termination (other than Sections   12.2 and 12.3)
    
	
13
    	
 
    	
Indemnification
    
	
15
    	
 
    	
Mediation; Governing Law and   Venue (other than Section 15.1)
    
	
17
    	
 
    	
Miscellaneous (other than   Section 17.5)
    

 

*For the avoidance of doubt, the mutual nondisparagement provisions of Section 6.5 of the Employment Agreement shall continue to apply after the Termination and any future termination of the Employment Agreement by their terms.

**Notwithstanding anything to the contrary set forth in Section 6.5 or Section 7.1 of the Employment Agreement, the Company understands and acknowledges that certain whistleblower laws permit Executive to communicate directly with governmental or regulatory authorities,

 

2

 

including communications with the U.S. Securities and Exchange Commission about possible securities law violations. The Company acknowledges that Executive is not required to seek the Company’s permission or notify the Company of any communications made in compliance with applicable whistleblower laws, and that the Company will not consider such communications to violate either Section 6.5 or Section 7.1 of the Employment Agreement (or any other agreement between Executive and the Company) or any Company policy by which Executive is bound.

 

Section 4.                                           Additional Understandings.  The parties hereto further agree as follows:

 

a.                                      Stock Option Award.  The Company granted to Executive a stock option award, pursuant to a Stock Option Agreement dated November 26, 2012 (the “Option Agreement”), to acquire 1,500,000 shares of the Company’s Common Stock, at an exercise price of $3.43.  The Compensation Committee of the Board of Directors of the Company has determined to amend, and hereby amends, Section 8(1) thereof to extend the exercise period following Termination to October 17, 2017.

 

b.                                      Payment of Certain Expenses.  The Company agrees promptly to pay directly to third party providers, upon receipt of customary and complete invoicing or other documentation of such expenses, a total not to exceed $25,000 in the aggregate for Executive’s expenses related to any or all of the following:

 

i.                                         packing and transporting her personal effects from her Minneapolis apartment to a location of her choosing in Memphis, Tennessee;

 

ii.                                      transporting her automobile to Ft. Lauderdale, Florida, at a mutually agreeable time;

 

iii.                                   the rent due on Executive’s Minneapolis apartment for the months of February and March, 2017; and

 

iv.                                  the fees and expenses actually incurred on her behalf by attorneys and accountants retained by her in connection with the negotiation and execution of this Agreement.

 

c.                                       Certain Company Equipment.  The Company and Executive agree as follows:

 

i.                                          Laptop, Surface Tablet and iPad.  Executive shall be entitled to retain the Company-issued laptop, Surface Tablet and iPad that she has been using during her employment with the Company, provided that, all Company information, documentation, data, passwords, etc. have been permanently removed, to the Company’s reasonable satisfaction, and that, thereafter, Executive shall be solely responsible for all costs of using and maintaining such Laptop, Surface Tablet and iPad.

 

ii.                                       Cell Phone.  Executive shall return, at the Effective Time, the Company-issued cell phone that she has been using during her employment with the Company.

 

3

 

Section 5.                                           Miscellaneous.

 

a.                                      Entire Agreement.  The Company and Executive acknowledge that this Agreement, together with the Employment Agreement (as clarified by this Agreement), the Release, the Option Agreement (as amended by this Agreement) and that certain Indemnification Agreement between the Company and Executive, dated January 30, 2013, contain the full and complete agreement between the parties hereto, that there are no oral or implied agreements or other modifications not specifically set forth herein, and that this Agreement, together with the other  agreements specifically referenced in this Section 5(a), supersede any prior agreements or understandings, if any, between the Company and Executive, whether written or oral.

 

b.                                      Amendments.  The parties agree that no amendments of this Agreement may be made except by means or a written agreement signed by each of the parties and approved by the Company’s Board of Directors (the “Board”) or the Board’s Compensation Committee.

 

c.                                       Waiver.   Either party’s failure to demand strict performance and compliance with any part of this Agreement shall not be deemed to be a waiver of such party’s rights under this Agreement or by operation of law. Any waiver by either party of a breach of any provision of this Agreement shall not operate as or be construed as a waiver of any subsequent breach thereof.

 

d.                                      Notices.  All notices, requests, demands, and other communications hereunder shall be in writing and shall be deemed to have been duly given when delivered in person, when delivered by an express delivery service or courier service to the address listed below, or three (3) business days after it is mailed, certified, return receipt requested, postage prepaid:

 

If to Executive, addressed to:

 

LuAnn Via
 1600 South Ocean Blvd.

Unit No. 2004

Pompano Beach, FL 33062

If to the Company, addressed to:

 

Christopher & Banks Corporation
 2400 Xenium Lane North
 Plymouth, MN  55441
 Attn:  Chair of Board

          With a copy (to the same address) to: General Counsel

 

Any party hereto may, from time to time, by written notice to the other party, designate a different address, or in the case of the Company, a different notice party, which shall be substituted for the one specified above for such party.

 

4

 

e.                                       Governing Law.  The parties acknowledge that the Company’s principal place of business is located in the State of Minnesota. The parties hereby agree that this Agreement shall be construed in accordance with the internal laws of the State of Minnesota without regard to the conflict of laws thereof; provided that, both parties understand and agree that the statutory and common law of the State of Delaware shall govern all matters regarding Executive’s performance of her fiduciary duties and indemnification (and reimbursement of related expenses) of Executive.

 

f.                                        Venue.  The parties agree that the exclusive venue for any litigation commenced by the Company or the Executive relating to this Agreement or Executive’s prior employment shall be the state courts located in Hennepin County, Minnesota and the United States District Court, District of Minnesota in Hennepin County, Minnesota. The parties waive any rights to object to venue as set forth herein, including any argument of inconvenience for any reason.

 

g.                                       Rights of Executive’s Successors.  In the event of Executive’s death prior to the payment of any amounts due to Executive under any of clauses (a), (b) or (d) of Section 2 of this Agreement, such payments shall be made to Executive’s spouse or, if she is not survived by a spouse, to her estate.

 

h.                                      Counterparts.  This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original and all of which, when taken together, constitute one and the same document. The signature of any party to any counterpart (including copies or PDF’s of signatures transmitted by facsimile or e-mail) shall be deemed a signature to, and may be appended to, any other counterpart.

 

 

	
 
    	
/s/ LuAnn   Via
    
	
 
    	
LuAnn Via
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
CHRISTOPHER &   BANKS CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kent   Kleeberger
    
	
 
    	
 
    	
Kent   Kleeberger
    
	
 
    	
 
    	
Chair of   the Board
    

 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00265-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00265-of-00352.parquet"}]]