Document:

EX-10.2

   

  Exhibit 10.2

  NETAPP, INC.

  OUTSIDE DIRECTOR COMPENSATION POLICY

  (As amended, effective as of November 1, 2021 (the “Effective Date”))

  NetApp, Inc. (the “Company”) believes that the granting of equity and cash compensation to its members of the Board of Directors (the “Board,” and members of the Board, “Directors”) represents a powerful tool to attract, retain and reward Directors who are not employees of the Company (“Outside Directors”).  This Outside Director Compensation Policy (the “Policy”) is intended to formalize the Company’s policy regarding grants of equity and cash compensation to its Outside Directors.  Unless otherwise defined herein, capitalized terms used in this Policy will have the meaning given such term in the Company’s 2021 Equity Incentive Plan (the “Plan”), or if the Plan is no longer in place, the meaning given to such terms or any similar terms in the equity plan then in place.  Outside Directors will be solely responsible for any tax obligations they incur as a result of the equity and cash payments received under this Policy.

  I.EQUITY COMPENSATION

  Outside Directors will be entitled to receive all types of Awards (except Incentive Stock Options) under the Plan (or the applicable equity plan in place at the time of grant), including discretionary Awards not covered under this Policy.  All grants of Awards to Outside Directors pursuant to Section II of this Policy will be automatic and nondiscretionary, except as otherwise provided herein, and will be made in accordance with the following provisions:

  A.Type of Award.  Prior to the date upon which an Award is to become effective pursuant to this Policy, the Administrator may determine the type of Award or Awards that an Outside Director will receive.  Except as provided herein, not all Outside Directors will be required to receive the same type or amount of Awards under this Policy.  In the absence of the Administrator making a determination as to the type of Award that is to be granted to an Outside Director under this Policy, the Outside Director will receive his or her Award in the form of Restricted Stock Units (“RSUs”).  Any Award granted pursuant to this Policy will be subject to the other terms and conditions of the Plan (or the applicable equity plan in place at the time of grant) and form of Award Agreement previously approved for use under the Plan (or the applicable equity plan in place at the time of grant).  

  B.Value.  For purposes of this Policy, “Value” means (i) with respect to any Awards of Restricted Stock or RSUs the product of (A) the Fair Market Value of one Share on the grant date of such Award, and (B) the aggregate number of Shares of Restricted Stock or number of Shares subject to or issuable pursuant to the RSUs, and (ii) with respect to any Option, the Black-Scholes option valuation methodology, or such other methodology the Administrator may determine prior to the grant of an Award becoming effective, on the grant date of such Award.

  C.No Discretion.  No person will have any discretion to select which Outside Directors will be granted Awards under this Policy or to determine the number of Shares to be covered by such Awards (except as provided in Section III.E. below).

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  II.GRANTING OF AUTOMATIC AWARDS

  A.Grant of Initial Award.  Subject to Section V.B. of this Policy, each individual who is first elected or appointed as an Outside Director shall automatically be granted, on the date that is two business days following  such initial election or appointment (the “Initial Grant Date”), an award (the “Initial Award”) of a number of RSUs with a Value of $250,000 (if such election or appointment occurs before February of the applicable Board Year) or with a Value of $125,000 (if such election or appointment occurs after February of the applicable Board Year), rounded down to the nearest whole Share. A “Board Year” shall run from the date of the Annual Stockholders Meeting until the date immediately preceding the next Annual Stockholders Meeting.  However, the Outside Director shall not receive any Initial Award if he or she was in the employ of the Company or any of its Subsidiaries or Parents, as applicable during the past three years ending on the date of the election or appointment.

  B.Grant of Annual Awards.  Subject to Section V.B. of this Policy, on the date of each Annual Stockholders Meeting, but after any stockholder votes are taken on such date (the “Annual Award Grant Date”), each Outside Director who is to continue to serve as an Outside Director shall automatically be granted an award (an “Annual Award”) of a number of RSUs with a Value of $250,000 (or, in the case of an Outside Director who serves as the Chairperson of the Board, with a Value of $325,000), rounded down to the nearest whole Share. 

  III.TERMS OF INITIAL AND ANNUAL AWARDS

  A.Award Agreement.  Each Award granted pursuant to this Policy (“Automatic Awards”) shall be evidenced by an Award Agreement in such form as the Administrator shall determine, which complies with the terms specified below.

  B.Automatic Awards.  

  1.Vesting.  Subject to the other provisions of this Policy:

  (i)Initial Award.  The RSUs granted pursuant to an Initial Award shall vest upon the Outside Director’s continuous service as a Director through the day immediately preceding the date of the next Annual Stockholders Meeting following the Initial Grant Date. 

  (ii)Annual RSUs.  The RSUs granted pursuant to an Annual Award shall vest upon the Outside Director’s continuous service as a Director through the day immediately preceding the date of the next Annual Stockholders Meeting following the Annual Award Grant Date. 

  (iii)Effect of Cessation of Board Service.  If an Outside Director ceases to serve as a Director for any reason other than due to death or Disability, then his or her Automatic Award(s) which are not then vested shall never become vested or paid out and shall be immediately forfeited.  If an Outside Director ceases to serve as a Director by reason of death or Disability prior to the vesting of his or her Automatic Award(s), then one hundred percent (100%) of the RSUs shall 

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  immediately become vested, and subject to the terms and conditions of any deferral election made pursuant to Section III.B.2 below, payable.  

  2.Deferral of Proceeds.  The Administrator may, in its discretion, provide an Outside Director with the opportunity to defer the delivery of the proceeds of any vested Automatic Awards that would otherwise be delivered to the Outside Director hereunder.  Any such deferral election shall be subject to such rules, conditions and procedures as shall be determined by the Administrator or its respective authorized designee, in its sole discretion, which rules, conditions and procedures shall at all times comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended, and the final regulations and guidance thereunder, as may be amended from time to time (together, “Section 409A”), unless otherwise specifically determined by the Administrator.  If an Outside Director elects to defer the proceeds of any vested Automatic Awards in accordance with this Section, payment of the deferred vested Automatic Awards shall be made in accordance with the terms of the deferral election and the Award Agreement evidencing such Award.

  C.Approval of Grants.  Board or Compensation Committee approval of this Policy shall constitute pre-approval of each Award made under this Policy on or after the Effective Date, and the subsequent exercise or payment of that Award in accordance with the terms and conditions of this Policy and the Award Agreement evidencing such Award.  

  D.Merger or Change in Control.  In the event of a merger of the Company with or into another corporation or other entity or a Change in Control, with respect to Awards granted to an Outside Director while such individual was an Outside Director, the Outside Director will fully vest in and have the right to exercise Options and/or Stock Appreciation Rights as of immediately prior to such Change in Control as to all of the Shares underlying such Award, including those Shares which otherwise would not be vested or exercisable, all restrictions on Restricted Stock and Restricted Stock Units will lapse, and, with respect to Awards with performance-based vesting, all performance goals or other vesting criteria will be deemed achieved at target levels and as to a prorated portion of each Award based on the portion of the applicable performance period that has lapsed through the date of the merger or Change in Control, and all other terms and conditions met as to such prorated portion of such Award, in each case, unless specifically provided otherwise under the applicable Award Agreement or other written agreement authorized by the Administrator between the Outside Director and the Company or any of its Subsidiaries or Parents, as applicable.  

  E.Adjustments.  In the event that any dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, reclassification, repurchase, or exchange of Shares or other securities of the Company, or other change in the corporate structure of the Company affecting the Shares occurs (other than any ordinary dividends or other ordinary distributions), the Administrator, in order to prevent diminution or enlargement of the benefits or potential benefits intended to be made available under this Policy, will, if applicable, adjust the number and class of shares of stock issuable pursuant to, and the class and price of shares of stock covered by, the Awards to be granted under this Policy.

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  IV.CASH COMPENSATION

  A.Annual Retainer Fee.  The Company will pay each Outside Director an annual fee of $75,000 for serving on the Board (the “Annual Fee”).  

  B. Chairperson Fee.  The Company will pay the Outside Director who serves as the Chairperson of the Board an annual fee of $75,000 for service as the Chairperson (the “Annual Chairperson Fee”).  

  C.Committee Member Retainer Fee.  The Company will pay each Outside Director who serves as a member of the Audit Committee, Compensation Committee or Corporate Governance and Nominating Committee the applicable annual fee for serving as a member of such committee set forth in the table below (the “Annual Committee Member Fee”).    The Annual Committee Member Fee for each committee will be:

  		
	Committee
	Annual Committee Member Fee

	Audit Committee
	$20,000

	Compensation Committee
	$15,000

	Corporate Governance and Nominating Committee
	$10,000
 

  D.Committee Chairperson Retainer Fee.  In addition to the Annual Committee Member Fee, the Company will pay each Outside Director who serves as chairperson of the Audit Committee, Compensation Committee or Corporate Governance and Nominating Committee the applicable annual fee for serving as the chairperson set forth in the table below (the “Annual Committee Chairperson Fee”).  The Annual Committee Chairperson Fee for each committee will be:

  		
	Committee
	Annual Committee Chairperson Fee

	Audit Committee
	$30,000

	Compensation Committee
	$22,500

	Corporate Governance and Nominating Committee
	$15,000

  E.Payments. Each of the Annual Fee, the Annual Chairperson Fee, the Annual Committee Member Fee and the Annual Committee Chairperson Fee will be paid in four equal quarterly installments on a prorated basis with each quarterly payment paid by the 15th of the first month of the applicable quarter; provided that no quarterly fees shall be payable to an Outside 

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  Director who is not continuing as a Director following an Annual Stockholders Meeting. If a Director’s service is terminated by the Company or the Director in the middle of a quarter, then the Director shall, within one month from such termination, repay the Company the portion of the quarterly fees representing the period left in the quarter following the date of termination.   

  V.MISCELLANEOUS.

  A.Travel Expenses.  Each Outside Director’s reasonable, customary, and documented travel expenses to Board meetings will be reimbursed by the Company. 

  B.Outside Director Limitations.  No Outside Director may be paid, issued or granted, in any calendar year, cash retainer fees and Awards (whether settled in cash or stock) with an aggregate value of more than $1,000,000 (with the value of each Award based on its grant date fair value (determined in accordance with U.S. generally accepted accounting principles)).  Any cash compensation paid or Awards granted to an individual while he or she was an Employee, or while he or she was a Consultant but not an Outside Director, will be excluded for purposes of the foregoing limits.

  C.Section 409A.  In no event will cash compensation or expense reimbursement payments under this Policy be paid after the later of (i) the fifteenth (15th) day of the third (3rd) month following the end of the Company’s fiscal year in which the compensation is earned or expenses are incurred, as applicable, or (ii) the fifteenth (15th) day of the third (3rd) month following the end of the calendar year in which the compensation is earned or expenses are incurred, as applicable, in compliance with the “short-term deferral” exception under Section 409A.  It is the intent of this Policy that this Policy and all payments hereunder be exempt from or otherwise comply with the requirements of Section 409A so that none of the compensation to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities or ambiguous terms herein will be interpreted to be so exempt or comply.  In no event will the Company reimburse an Outside Director for any taxes imposed or other costs incurred as a result of Section 409A.

  D.Revisions.  The Board or any Committee designated by the Board may amend, alter, suspend, or terminate this Policy at any time and for any reason.  No amendment, alteration, suspension, or termination of this Policy will materially impair the rights of an Outside Director with respect to compensation that already has been paid or awarded, unless otherwise mutually agreed between the Outside Director and the Company.  Termination of this Policy will not affect the Board’s or the Compensation Committee’s ability to exercise the powers granted to it under the Plan with respect to Awards granted under the Plan pursuant to this Policy prior to the date of such termination.

  * * *

   

  5EX-10.3

   

  Exhibit 10.3

  EXECUTION COPY

  AMENDMENT NO. 1

  Dated as of November 17, 2021

  to

  AMENDED AND RESTATED CREDIT AGREEMENT

  Dated as of January 22, 2021

  THIS AMENDMENT NO. 1 (this “Amendment”) is made as of November 17, 2021 by and among NetApp, Inc., a Delaware corporation (the “Borrower”), the Lenders party hereto and JPMorgan Chase Bank, N.A., as Administrative Agent (the “Administrative Agent”), under that certain Amended and Restated Credit Agreement, dated as of January 22, 2021, by and among the Borrower, the Lenders and the Administrative Agent (as amended, restated, supplemented or otherwise modified from time to time prior to the date hereof, the “Credit Agreement”).  Capitalized terms used herein and not otherwise defined herein shall have the respective meanings given to them in the Credit Agreement.

  WHEREAS, the Borrower has requested that the requisite Lenders and the Administrative Agent agree to make certain amendments to the Credit Agreement;

  WHEREAS, the Borrower, the Lenders party hereto and the Administrative Agent have agreed to amend the Credit Agreement on the terms and conditions set forth herein;

  NOW, THEREFORE, in consideration of the premises set forth above, the terms and conditions contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Borrower, the Lenders party hereto and the Administrative Agent hereby agree to enter into this Amendment.

  1.Amendments to the Credit Agreement.  Effective as of the date of satisfaction of the conditions precedent set forth in Section 2 below, the parties hereto agree that the Credit Agreement is hereby amended as follows (the Credit Agreement as so amended, the “Amended Credit Agreement”):

  a.Section 1.01 of the Credit Agreement is hereby amended to insert the following definition therein in the appropriate alphabetical order as follows:

  “Amendment No. 1 Effective Date” means November 17, 2021.

  b.Section 1.01 of the Credit Agreement is hereby amended to restate the definition of “Agreed Currencies” appearing therein in its entirety as follows:

  “Agreed Currencies” means (i) Dollars, (ii) euro, (iii) Canadian Dollars, (iv) Australian Dollars, (v) Singapore Dollars and (vi) any other currency (x) that is a lawful currency (other than Dollars) that is readily available, not restricted and freely transferable and convertible into Dollars and (y) that is agreed to by the Administrative Agent and each of the Lenders.  For the avoidance of doubt, it is understood and agreed that on and after the Amendment No. 1 Effective Date, the only Agreed Currencies under this Agreement 

   

  

   

  shall be Dollars, euro, Canadian Dollars, Australian Dollars and Singapore Dollars (notwithstanding any references in this Agreement to any other currency) and no additional currency shall be included as an Agreed Currency until such currency is requested by the Borrower and approved by the Administrative Agent and each of the Lenders pursuant to an amendment to this Agreement mutually satisfactory to the Borrower, the Administrative Agent and each of the Lenders.

  c.The definition of “Interest Period” set forth in Section 1.01 of the Credit Agreement is hereby amended to replace the reference to “one, two (if available), three or six months thereafter” appearing therein with a reference to “one, three or six months thereafter”.

  2.Conditions of Effectiveness.  The effectiveness of this Amendment is subject to the conditions precedent that:

  a. the Administrative Agent shall have received counterparts of this Amendment duly executed by the Borrower, the Required Lenders and the Administrative Agent; and

  b.the Administrative Agent shall have received all fees and other amounts due and payable on or prior to the date hereof, including, to the extent invoiced at least one (1) Business Day prior to the Amendment No. 1 Effective Date, reimbursement or payment of all out-of-pocket expenses required to be reimbursed or paid by the Borrower under the Credit Agreement in connection with this Amendment.

  3.Representations and Warranties of the Borrower.  The Borrower hereby represents and warrants as follows:

  a.This Amendment and the Amended Credit Agreement constitute legal, valid and binding obligations of the Borrower, enforceable in accordance with their terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

  b.As of the date hereof and after giving effect to the terms of this Amendment, (i) no Default has occurred and is continuing and (ii) the representations and warranties of the Borrower set forth in the Amended Credit Agreement (other than the representations and warranties contained in Section 3.04(b) and Section 3.06(a) of the Credit Agreement) are true and correct in all material respects (except that any representation and warranty that is qualified by materiality or Material Adverse Effect are true and correct in all respects), except to the extent such representation and warranty specifically refers to an earlier date, in which case it is true and correct in all material respects (except that any representation and warranty that is qualified by materiality or Material Adverse Effect is true and correct in all respects) as of such earlier date.

  4.Reference to and Effect on the Credit Agreement.

  a.Upon the effectiveness hereof, each reference to the Credit Agreement in the Credit Agreement or any other Loan Document shall mean and be a reference to the Amended Credit Agreement.

  b.Each Loan Document and all other documents, instruments and agreements executed and/or delivered in connection therewith shall remain in full force and effect and are hereby reaffirmed, ratified and confirmed.

  c.The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Administrative Agent or the Lenders, nor constitute a waiver 

   

  

   

  of any provision of the Amended Credit Agreement, the Loan Documents or any other documents, instruments and agreements executed and/or delivered in connection therewith.

  d.This Amendment is a Loan Document under (and as defined in) the Amended Credit Agreement.

  5.Governing Law.  This Amendment shall be construed in accordance with and governed by the law of the State of New York.

  6.Headings.  Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.

  7.Counterparts.  This Amendment may be executed by one or more of the parties hereto on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  The words “execution,” “signed,” “signature,” “delivery,” and words of like import in or relating to this Amendment shall be deemed to include Electronic Signatures (as defined below), deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be.  As used herein, “Electronic Signatures” means any electronic symbol or process attached to, or associated with, any contract or other record and adopted by a person with the intent to sign, authenticate or accept such contract or record.

  [Signature Pages Follow]

   

   

   

  

   

  IN WITNESS WHEREOF, this Amendment has been duly executed and delivered as of the day and year first above written.

  			
	 
	NETAPP, INC.,

	 
	as the Borrower

	 
	 
	 

	 
	 
	 

	 
	By:
	/s/ Michael J. Berry

	 
	Name:
	Michael J. Berry

	  
	Title:
	Executive Vice President and Chief Financial Officer

   

   

   

   

  Signature Page to Amendment No. 1 to

  Amended and Restated Credit Agreement

  NetApp, Inc.

  

   

   

  			
	 
	JPMORGAN CHASE BANK, N.A.,

	 
	individually as a Lender and as Administrative Agent

	 
	 
	 

	 
	 
	 

	 
	By:
	/s/ Zachary Quan

	 
	Name:
	Zachary Quan

	  
	Title:
	Vice President

   

   

  Signature Page to Amendment No. 1 to

  Amended and Restated Credit Agreement

  NetApp, Inc.

  

   

   

  			
	 
	BANK OF AMERICA, N.A.,

	 
	as a Lender

	 
	 
	 

	 
	 
	 

	 
	By:
	/s/ Brandon Bolio

	 
	Name:
	Brandon Bolio

	  
	Title:
	Director

   

   

  Signature Page to Amendment No. 1 to

  Amended and Restated Credit Agreement

  NetApp, Inc.

  

   

   

  			
	 
	WELLS FARGO BANK, NATIONAL ASSOCIATION,

	 
	as a Lender

	 
	 
	 

	 
	 
	 

	 
	By:
	/s/ Sid Khanolkar

	 
	Name:
	Sid Khanolkar

	  
	Title:
	Director

   

   

  Signature Page to Amendment No. 1 to

  Amended and Restated Credit Agreement

  NetApp, Inc.

  

   

   

   

  			
	 
	CITIBANK, N.A.,

	 
	as a Lender

	 
	 
	 

	 
	 
	 

	 
	By:
	/s/ Carmen Kelleher

	 
	Name:
	Carmen Kelleher

	  
	Title:
	Vice President

   

   

  Signature Page to Amendment No. 1 to

  Amended and Restated Credit Agreement

  NetApp, Inc.

  

   

   

   

  			
	 
	MUFG BANK, LTD.,

	 
	as a Lender

	 
	 
	 

	 
	 
	 

	 
	By:
	/s/ Lillian Kim

	 
	Name:
	Lillian Kim

	  
	Title:
	Director

   

   

  Signature Page to Amendment No. 1 to

  Amended and Restated Credit Agreement

  NetApp, Inc.

  

   

   

  			
	 
	GOLDMAN SACHS BANK USA,

	 
	as a Lender

	 
	 
	 

	 
	 
	 

	 
	By:
	/s/ Dan Martis

	 
	Name:
	Dan Martis

	  
	Title:
	Authorized Signatory

   

   

  Signature Page to Amendment No. 1 to

  Amended and Restated Credit Agreement

  NetApp, Inc.

  

   

   

   

  			
	 
	BNP PARIBAS,

	 
	as a Lender

	 
	 
	 

	 
	 
	 

	 
	By:
	/s/ George Ko

	 
	Name:
	George Ko

	  
	Title:
	Director

	 
	 
	 

	 
	By:
	/s/ Gregory R. Paul

	 
	Name:
	Gregory R. Paul

	 
	Title:
	Managing Director, SF Branch Manager

   

   

  Signature Page to Amendment No. 1 to

  Amended and Restated Credit Agreement

  NetApp, Inc.

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