Document:

box-ex101_20150430467.htm

 

EXHIBIT 10.1

 

BOX, INC.

OUTSIDE DIRECTOR COMPENSATION POLICY

Box, Inc. (the “Company”) believes that the granting of equity and cash compensation to members of its Board of Directors (the “Board,” and members of the Board, the “Directors”) represents an effective tool to attract, retain and reward Directors who are not employees of the Company (the “Outside Directors”).  This Outside Director Compensation Policy (the “Policy”) is intended to formalize the Company’s policy regarding cash compensation and grants of equity 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 2015 Equity Incentive Plan (the “Plan”).  Each Outside Director will be solely responsible for any tax obligations incurred by such Outside Director as a result of the equity and cash payments such Outside Director receives under this Policy.

This Policy became effective on January 22, 2015 (the effective date of the registration statement in connection with the initial public offering of the Company’s securities (the “Effective Date”)), and was amended and restated on March 26, 2015. 

	
1.
	
Cash Retainers

Annual Cash Retainer for Board Service

Each Outside Director will be paid an annual cash retainer of $30,000.

Annual Cash Retainers for Lead Independent Director and Committee Service

Effective February 1, 2015, each Outside Director will be paid additional annual cash retainers for applicable service as follows:

 

			
	
Lead Independent Director
	
$ 12,000
	
 

	
 
	
 
	
 

	
Committee Service:
	
Chair
	
Member

	
 
	
 
	
 

	
Audit
	
$  20,000
	
$ 8,000

	
 
	
 
	
 

	
Compensation
	
$  12,000
	
$ 8,000

	
 
	
 
	
 

	
Nominating and Corporate Governance
	
$    8,000
	
$ 4,000

All cash compensation will be paid quarterly in arrears on a prorated basis. 

No Outside Director will receive per meeting attendance fees for attending Board or meetings of committees of the Board.

	
2.
	
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 2 of this Policy will be automatic and nondiscretionary, except as otherwise provided herein, and will be made in accordance with the following provisions:

 

 

 

 

(a)No Discretion.  No person will have any discretion to select which Outside Directors will be granted any Awards under this Policy or to determine the number of shares of Company common stock (“Shares”) to be covered by such Awards.

(b)Initial Awards.  Subject to Section 11 of the Plan, effective on the date the person first becomes an Outside Director, whether through election by the stockholders of the Company or appointment by the Board to fill a vacancy, such Outside Director automatically will be granted Awards with a Value (as defined below) equal to $450,000 (collectively, the “Initial Award”).  The Initial Award will be comprised of Options and Restricted Stock Units (“RSUs”), each having a Value of 50% of the aggregate Initial Award.

With respect to the portion of the Initial Award that is an Option, such portion of the Initial Award will vest in 36 equal, monthly installments beginning with the first monthly anniversary after the grant date, in each case, provided that the Outside Director continues to serve as a Service Provider through the applicable vesting date.  

With respect to the portion of the Initial Award that are RSUs, such portion of the Initial Award will vest in 3 annual installments beginning with the first anniversary after the grant date, in each case, provided that the Outside Director continues to serve as a Service Provider through the applicable vesting date.

For clarity, a Director who is an Employee who ceases to be an Employee, but who remains a Director, will not receive an Initial Award.

(c)Annual Awards.  Subject to Section 11 of the Plan, on the date of each annual meeting of the Company’s stockholders (the “Annual Meeting”) beginning with the 2015 Annual Meeting, each Outside Director automatically will be granted Awards with a Value equal to $200,000 (collectively, the “Annual Award”).  The Annual Award will be comprised of Options and RSUs, each having a Value of 50% of the aggregate Annual Award.  

Each portion of the Annual Award (whether an Option or RSUs) will fully vest upon the earlier of: (i) the 12-month anniversary of the grant date; or (ii) the next Annual Meeting, in each case, provided that the Outside Director continues to serve as a Service Provider through the vesting date.

For clarity, an Outside Director will not be eligible for an Annual Award unless the Outside Director has been a Director either (i) for at least 1 full calendar year; or (ii) at the previous year’s Annual Meeting.

(d)Terms Applicable to all Options Granted Under this Policy.  The per Share exercise price for all Options granted under this Policy will be one hundred percent (100%) of the Fair Market Value on the grant date.

(e)Change in Control.  In the event of a Change in Control, each Outside Director will fully vest in his or her Awards.

(f)Value.  To determine the number of Shares subject to an Initial Award or Annual Award, the specified Value for RSUs will be divided by the average of the closing trading price of a Share for the 30-trading day period ending on the trading day prior to the grant date, or such other methodology the Board or the Compensation Committee of the Board (the “Compensation Committee”) may determine prior to the grant of the RSUs becoming effective.  To determine the number of shares subject to an Option, the number of Shares determined in the preceding 

2

 

 

 

sentence will be multiplied by 2 or such other multiplier that the Compensation Committee may determine prior to the grant of an Option being effective.

	
3.
	
Travel Expenses

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

	
4.
	
Additional Provisions

All provisions of the Plan not inconsistent with this Policy will apply to Awards granted to Outside Directors.

	
5.
	
Revisions

The Board in its discretion may change and otherwise revise the terms of Awards granted under this Policy, including, without limitation, the number of Shares subject thereto, for Awards of the same or different type granted on or after the date the Board determines to make any such change or revision.  

 

3box-ex102_20150430468.htm

Exhibit 10.2

EXECUTION VERSION

AMENDMENT NO. 3 TO CREDIT AGREEMENT

AMENDMENT NO. 3 TO CREDIT AGREEMENT dated as of March 18, 2015 (this “Amendment”) to the Credit Agreement dated as of August 27, 2013 (as heretofore amended, the “Credit Agreement”) among BOX, INC. (the “Borrower”), the LENDERS party thereto (the “Lenders”) and CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as Administrative Agent (the “Administrative Agent”).

W I T N E S S E T H :

WHEREAS, the Borrower wishes to reduce the Total Commitment under the Credit Agreement from $75,000,000 to $65,000,000 and then from $65,000,000 to $60,000,000 and amend certain other provisions of the Credit Agreement;

WHEREAS, Section 9.07 of the Credit Agreement permits the Credit Agreement to be amended from time to time by the Borrower and the Required Lenders; and

WHEREAS, the Borrower, the Administrative Agent and the Lenders identified on the signature pages hereto which collectively constitute the Required Lenders have agreed to amend certain provisions of the Credit Agreement, subject to the terms and conditions set forth herein.

NOW, THEREFORE, the parties hereto agree as follows:

SECTION 1. Defined Terms; References. Unless otherwise specifically defined herein, each term used herein that is defined in the Credit Agreement has the meaning assigned to such term in the Credit Agreement. Each reference to “hereof”, “hereunder”, “herein” and “hereby” and each other similar reference and each reference to “this Agreement” and each other similar reference contained in the Credit Agreement shall, after this Amendment becomes effective, refer to the Credit Agreement as amended hereby.

SECTION 2. Amendments. (a) Section 1.01 of the Credit Agreement is hereby amended by amending the defined term “Permitted Investments” by (i) deleting the word “and” at the end of clause (e); (ii) replacing the period at the end of clause (f) with “; and”; and (iii) adding a new clause (g) to read as follows:

“(g) other investments described in Exhibit A to the Third Amendment.”

(b) Section 1.01 of the Credit Agreement is hereby further amended by adding a new defined term “Third Amendment” to read as follows:

“Third Amendment” shall mean Amendment No. 3 to Credit Agreement dated as of March 18, 2015, by and among the Borrower, the Lenders and the Administrative Agent.”

(c) Section 1.01 of the Credit Agreement is hereby further amended by amending and restating the defined term “Total Commitment” in its entirety to read as follows:

“Total Commitment” shall mean, at any time, the aggregate amount of the Commitments as in effect at such time. The Total Commitment on March 18, 2015 is $65,000,000. The Total Commitment shall be automatically reduced, ratably in respect of the applicable Commitment of each Lender, to $60,000,000 on April 1, 2015.”;

(d) Section 6.01(d) of the Credit Agreement is hereby amended by deleting the dollar amount “$15,000,000” and replacing it with “$50,000,000”.

(e) Section 6.01(e) of the Credit Agreement is hereby amended by deleting the dollar amount “$15,000,000” and replacing it with “$50,000,000”.

(f) Section 6.01(m) of the Credit Agreement is hereby amended by deleting the dollar amount “$7,500,000” and replacing it with “$35,000,000”.

SECTION 3. Representations of Borrower. The Borrower represents and warrants that (i) the representations and warranties set forth in Article 3 of the Credit Agreement and in the other Loan Documents will be true on and as of the Amendment Effective Date (as defined below) and (ii) no Default will have occurred and be continuing on such date.

 

 

 

EXECUTION VERSION

 

SECTION 4. Governing Law. This Amendment shall be governed by and construed in accordance with the laws of the State of New York.

SECTION 5. Effectiveness. This Amendment shall become effective on the date (the “Amendment Effective Date”) when the Administrative Agent shall have received from each of the Borrower and the Required Lenders a counterpart hereof signed by such party or facsimile or other written confirmation (in form satisfactory to the Administrative Agent) that such party has signed a counterpart hereof; provided that, after giving effect to all Credit Events as of such date, (i) the Aggregate Exposure as of such date does not exceed $65,000,000 and (ii) the reduction in the Total Commitment from $75,000,000 to $65,000,000, as set forth in Section 2(c) of this Amendment, shall be applied ratably in respect of the applicable Commitment of each Lender.

SECTION 6. Miscellaneous. This Amendment may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Amendment shall constitute a Loan Document for all purposes of the Credit Agreement. In accordance with Section 9.05 of the Credit Agreement, the Borrower agrees to reimburse the Administrative Agent for its reasonable and documented out-of-pocket expenses in connection with this Agreement, including the reasonable and documented fees, charges and disbursements of counsel for the Administrative Agent. The Borrower acknowledges and agrees that the Administrative Agent, each Lender and each Related Party of any of the foregoing shall be entitled to the benefit of the indemnity provisions of Section 9.05 of the Credit Agreement, as if each such person was included in the definition of “Indemnitee” thereunder, this Agreement was the “Agreement” referred to therein and the transactions contemplated hereunder were the “transactions” referred to therein. Except as expressly set forth herein, this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of or otherwise affect the rights and remedies of any Lender or the Administrative Agent under the Credit Agreement or any other Loan Document, and shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document, all of which are ratified and affirmed in all respects and shall continue in full force and effect. Nothing herein shall be deemed to entitle any Loan Party to a consent to, or a waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document in similar or different circumstances.

[SIGNATURE PAGES TO FOLLOW]

 

 

 

 

POSTING VERSION – 03/13/2015

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first above written.

 

	
 
	
BOX, INC

	
 
	
By:
	
/s/ Peter Mcgoff

	
 
	
 
	
Name: Peter Mcgoff

	
 
	
 
	
Title: general Counsel

	
 
	
By:
	
/s/ Jennifer Ceran 

	
 
	
 
	
Jennifer Ceran

	
 
	
 
	
Treasurer

 

[Signature Page – Amendment No. 3 to the Credit Agreement]

 

 

	
 
	
CREDIT SUISSE AG, CAYMAN

ISLANDS BRANCH, individually and as

Administrative Agent and Collateral Agent

	
 
	
 
	
 

	
 
	
By:
	
/s/ William O’ Daly

	
 
	
Name: 
	
BILL O’ Daly

	
 
	
Title: 
	
Authorized Signatory

	
 
	
 
	
 

	
 
	
By:
	
/s/ Sean MacGregor

	
 
	
Name: 
	
Sean MacGregor

	
 
	
Title: 
	
Authorized Signatory

 

[Signature Page – Amendment No. 3 to the Credit Agreement]

 

 

	
 
	
JPMORGAN CHASE BANK, N.A.

	
 
	
 
	
 

	
 
	
By:
	
/s/ Jon G. Kowalczuk

	
 
	
Name:
	
John G. Kowalczuk

	
 
	
Title: 
	
Executive Director

 

[Signature Page – Amendment No. 3 to the Credit Agreement]

 

 

	
 
	
MORGAN STANLEY SENIOR 

FUNDING, INC.

	
 
	
 
	
 

	
 
	
By:
	
/s/ Sharon Bazbaz

	
 
	
Name: 
	
Sharon Bazbaz

	
 
	
Title: 
	
Vice President

 

[Signature Page – Amendment No. 3 to the Credit Agreement]

 

 

	
 
	
BMO HARRIS FINANCING, INC.

	
 
	
 
	
 

	
 
	
By:
	
/s/ Tomasz Milewski

	
 
	
Name:
	
Tomasz Milewski

	
 
	
Title:
	
VICE PRESIDENT

 

 

 

[Signature Page – Amendment No. 3 to the Credit Agreement]

 

EXECUTION VERSION

Exhibit A

To Amendment No. 3 to Credit Agreement

Other Permitted Investments

Table A – Portfolio Investment Guidelines

 

	
Eligible Securities

	
Description
	
 
	
Issuer

Concentration

Limit*
	
 
	
Maturity

Limit*
	
 
	
Minimum

Rating*
	
 
	
Asset Class

Concentration

Limit*

	
Government Securities
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Securities explicitly backed by the

full faith and credit of the US

Government
	
 
	
100%
	
 
	
3.1 year
	
 
	
N/A
	
 
	
no limit

	
US Federal Agencies and

Government Sponsored Enterprises
	
 
	
50%
	
 
	
3.1 year
	
 
	
N/A
	
 
	
no limit

	
Sovereign, Quasi-Sovereign, and

Supranational
	
 
	
5%
	
 
	
3.1 year
	
 
	
A-/A3
	
 
	
50%

	
Corporate Securities
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
US and foreign commercial paper

(CP), including private placement
	
 
	
5%
	
 
	
270 days
	
 
	
Al/Pl
	
 
	
50%

	
Bonds, notes, MTNs. FRNs.

Including 144A’s
	
 
	
5%
	
 
	
3.1 year
	
 
	
A-/A3
	
 
	
50%

	
Senior bank-issued debt. Non-FDIC

deposits, Non-FDIC CDs, ECDs,

Deposit Notes, TDs
	
 
	
5%
	
 
	
365 days
	
 
	
Al/Pl
	
 
	
50%

	
Repurchase Agreements
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
All repos must be collateralized by

at least 102% US Treasuries and US

Agencies

No other collateral is acceptable
	
 
	
15% per counterparty
	
 
	
30 days
	
 
	
Al/Pl per counterparty
	
 
	
no limit

	
Other Securities
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Mortgage-Backed Securities:

Agency MBS only
	
 
	
5% per

specified pool
	
 
	
20 months (WAL)
	
 
	
N/A
	
 
	
25%

	
Asset-Backed Securities (ABS):

Credit cards and auto receivables only
	
 
	
5%
	
 
	
20 months (WAL)
	
 
	
AAA/Aaa
	
 
	
25%

	
Municipal debt obligations
	
 
	
5%
	
 
	
3.1 year
	
 
	
A-/A3
	
 
	
50%

	
Money Market Funds

($5B or greater in size)
	
 
	
N/A
	
 
	
Rule 2A-7
	
 
	
Rule 2A-7
	
 
	
no limit

	
Portfolio Limits

	
Description
	
 
	
 
	
 
	
Max/Min*
	
 
	
 
	
 
	
 

	
Average duration maximum
	
 
	
 
	
 
	
2 years
	
 
	
 
	
 
	
 

	
Corporate bonds/notes 

minimum issue size
	
 
	
 
	
 
	
$200mm
	
 
	
 
	
 
	
 

	
Municipal bonds/notes 

minimum issue size
	
 
	
 
	
 
	
$25mm
	
 
	
 
	
 
	
 

	
Asset-Backed Securities 

minimum tranche size at time of 

purchase
	
 
	
 
	
 
	
$l00mm
	
 
	
 
	
 
	
 

	
Maximum percentage of any 

Money Market Fund ($5B or greater)
	
 
	
 
	
 
	
5%
	
 
	
 
	
 
	
 

 

	
*
	
At the time of purchase

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