Document:

EX-10.1

 Exhibit 10.1 

PROMISSORY NOTE 
  

			
	$112,804,430	  	 Miami, Florida

June 16, 2022

 FOR VALUE RECEIVED, MSP RECOVERY, LLC, a Florida limited liability company (the “Borrower”) hereby
unconditionally promises to pay to the order of John H. Ruiz, an individual, and Frank C. Quesada, an individual (the “Noteholders”) the principal amount of $112,804,430 (One Hundred Twelve Million Eight Hundred Fourt Thousand Four
Hundred Thirty US Dollars 00/100)) (the “Loan”), together with all accrued interest thereon, as provided in this Promissory Note (this “Note”). 

1. Payment Dates. 

(a) Payment Date. The aggregate unpaid principal amount of the Loan, all accrued and unpaid interest, and all other
amounts payable under this Note shall be due and payable on June 16, 2026 (the “Initial Maturity Date”). 

(b) Prepayment. The Borrower may prepay the Loan in whole or in part at any time or from time to time without prepayment
penalties, fees or other expenses by paying the principal amount to be prepaid together with accrued interest thereon to the date of prepayment. 

(c) Loan Acceleration. The Noteholders may declare all Loan obligations immediately due and shall have the right to
require the Borrower to accelerate repayment that the aggregate unpaid principal amount of the Loan, all accrued and unpaid interest, and all other amounts payable under this Note if: (i) Borrower, or an affiliate of the Borrower, terminates,
for any or no cause, that certain Legal Services Agreement (the “LSA”) between Lionheart II Holdings, LLC, La Ley con John H. Ruiz, P.A. d/b/a MSP Recovery Law Firm and MSP Law Firm PLLC, dated May 23, 2022. The decision to
terminate the LSA shall be made by the Board of Direcotrs of MSP Recovery, Inc., and John H. Ruiz and Frank C. Quesda shall abstain from voting on such termination of the LSA. 

2. Interest. 

(a) Interest Rate. Except as provided in Section 2(b), principal amounts outstanding under this Note shall bear payment-in-kind interest (computed on the basis of a year of 365 or 366 days, as applicable, and the actual days elapsed) at a rate per annum equal to 4.0% (four percent),
which will be added to the outstanding principal amount of of the Loan, and will be payable upon the earlier of (i) the Note Maturity Date, or (ii) earlier repayment of the Loan. 

 (b) Interest Rate Limitation. If at any time the interest rate
payable on the Loan shall exceed the maximum rate of interest permitted under applicable law, such interest rate shall be reduced automatically to the maximum rate permitted. 

3. Payment Mechanics. 

(a) Manner of Payment. All payments of principal and interest shall be made in US dollars no later than 12:00 PM on
the date on which such payment is due. Such payments shall be made by wire transfer of immediately available funds to the Noteholders’ accounts and at the bank specified by the Noteholders on Schedule A hereto, as may be amended from
time to time in writing by a joint instruction to the Borrower with 30 days’ advance notice. 
 (b) Application of
Payments. All payments shall be applied, first, to fees or charges outstanding under this Note, second, to accrued interest, and, third, to principal outstanding under this Note. 

(c) Business Day. Whenever any payment hereunder is due on a day that is not a Business Day, such payment shall be made
on the next succeeding Business Day, and interest shall be calculated to include such extension. “Business Day” means a day other than Saturday, Sunday, or other day on which commercial banks in New York, NY are authorized or
required by law to close. 
 (d) Evidence of Debt. The Borrower authorizes the Noteholders to record on the grid
attached as Exhibit A the Loan made to the Borrower and the date and amount of each payment or prepayment of the Loan. The entries made by the Noteholders shall be prima facie evidence of the existence and amount of
the obligations of the Borrower recorded therein in the absence of manifest error. No failure to make any such record, nor any errors in making any such records, shall affect the validity of the Borrower’s obligation to repay the unpaid
principal of the Loan with interest in accordance with the terms of this Note. 
 4. Representations and Warranties. The Borrower
represents and warrants to the Noteholderss as follows: 
 (a) Existence. The Borrower is a limited liability company
duly formed, validly existing, and in good standing under the laws of the state of its organization. The Borrower has the requisite power and authority to own, lease, and operate its property, and to carry on its business. 

(b) Compliance with Law. The Borrower is in compliance with all laws, statutes, ordinances, rules, and regulations
applicable to or binding on the Borrower, its property, and business. 
 (c) Power and Authority. The Borrower has the
requisite power and authority to execute, deliver, and perform its obligations under this Note. 

  
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 (d) Authorization; Execution and Delivery. The execution and delivery
of this Note by the Borrower and the performance of its obligations hereunder have been duly authorized by all necessary limited liability action in accordance with applicable law. The Borrower has duly executed and delivered this Note. 

5. Events of Default. The occurrence and continuance of any of the following shall constitute an “Event of Default”
hereunder: 
 (a) Failure to Pay. The Borrower fails to pay (i) any principal amount of the Loan when due;
(ii) any interest on the Loan within five (5) days after the date such amount is due; or (iii) any other amount due hereunder within ten (10) days after such amount is due. 

(b) Breach of Representations and Warranties. Any representation or warranty made by the Borrower to the Noteholders
herein contains an untrue or misleading statement of a material fact as of the date made; provided, however, no Event of Default shall be deemed to have occurred pursuant to this Section 5(b) if, within thirty (30) days of
the date on which the Borrower receives notice (from any source) of such untrue or misleading statement, Borrower shall have addressed the adverse effects of such untrue or misleading statement to the reasonable satisfaction of the Noteholders. 

(c) Bankruptcy; Insolvency. 

(i) The Borrower institutes a voluntary case seeking relief under any law relating to bankruptcy, insolvency, reorganization,
or other relief for debtors. 
 (ii) An involuntary case is commenced seeking the liquidation or reorganization of the
Borrower under any law relating to bankruptcy or insolvency, and such case is not dismissed or vacated within sixty (60) days of its filing. 

(iii) The Borrower makes a general assignment for the benefit of its creditors. 

(iv) The Borrower is unable, or admits in writing its inability, to pay its debts as they become due. 

(v) A case is commenced against the Borrower or its assets seeking attachment, execution, or similar process against all or a
substantial part of its assets, and such case is not dismissed or vacated within sixty (60) days of its filing. 
 (d)
Failure to Give Notice. The Borrower fails to give the notice of Event of Default specified in 6. 

  
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 6. Notice of Event of Default. As soon as possible after it becomes aware that an
Event of Default has occurred, and in any event within two (2) Business Days, the Borrower shall notify the Noteholders in writing of the nature and extent of such Event of Default and the action, if any, it has taken or proposes to take with
respect to such Event of Default. 
 7. Remedies. Upon the occurrence and during the continuance of an Event of Default, the
Noteholders may, at their option, by written notice to the Borrower declare the outstanding principal amount of the Loan, accrued and unpaid interest thereon, and all other amounts payable hereunder immediately due and payable; provided,
however, if an Event of Default described in Sections 5(c)(i), 5(c)(iii), or 5(c)(iv) shall occur, the outstanding principal amount, accrued and unpaid interest, and all other amounts payable hereunder shall become immediately due and payable
without notice, declaration, or other act on the part of the Noteholders. 
 8. Expenses. The Borrower shall reimburse the
Noteholders on demand for all reasonable and documented out-of-pocket costs, expenses, and fees, including the reasonable fees and expenses of counsel, incurred by the
Noteholders in connection with the negotiation, documentation, and execution of this Note and the enforcement of the Noteholders’ rights hereunder. 

9. Notices. All notices and other communications relating to this Note shall be in writing and shall be deemed given upon the first to
occur of (x) deposit with the United States Postal Service or overnight courier service, properly addressed and postage prepaid; (y) transmittal by facsimile or e-mail properly addressed (with
written acknowledgment from the intended recipient such as “return receipt requested” function, return e-mail, or other written acknowledgment); or (z) actual receipt by an employee or agent of
the other party. Notices hereunder shall be sent to the following addresses, or to such other address as such party shall specify in writing: 

(a) If to the Borrower: 
 MSP
Recovery, LLC 
 Attention: Sandra Rodriguez 

E-mail: srodriguez@msprecovery.com 

(b) If to the Noteholders: 
 John
H. Ruiz / Frank C. Quesada 
 Attention: John H. Ruiz 

E-mail: jruiz@msprecoverylawfirm.com 

10. Governing Law. This Note and any claim, controversy, dispute, or cause of action (whether in contract, tort, or otherwise) based
on, arising out of, or relating to this Note and the transactions contemplated hereby shall be governed by and construed in accordance with the laws of the State of Florida. 

  
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 11. Disputes. 

(a) Submission to Jurisdiction. 

(i) The Borrower irrevocably and unconditionally (A) agrees that any action, suit, or proceeding arising from or relating
to this Note may be brought in the courts of the State of Florida sitting in Miami-Dade County, and (B) submits to the exclusive jurisdiction of such courts in any such action, suit, or proceeding. Final judgment against the Borrower in any
such action, suit, or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. 

(ii) Nothing in this Section 11(a) shall affect the right of the Noteholders to bring any action, suit, or proceeding
relating to this Note against the Borrower or its properties in the courts of any other jurisdiction. 
 (iii) Nothing in
this Section 11(a) shall affect the right of the Noteholders to serve process upon the Borrower in any manner authorized by the laws of any such jurisdiction. 

(b) Venue. The Borrower irrevocably and unconditionally waives, to the fullest extent permitted by law, (i) any
objection that it may now or hereafter have to the laying of venue in any action, suit, or proceeding relating to this Note in any court referred to in Section 11(a), and (ii) the defense of inconvenient forum to the maintenance of such
action, suit, or proceeding in any such court. 
 (c) Waiver of Jury Trial. THE BORROWER HEREBY IRREVOCABLY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY RELATING TO THIS NOTE OR THE TRANSACTIONS CONTEMPLATED HEREBY, WHETHER BASED ON CONTRACT, TORT, OR ANY OTHER
THEORY. 
 12. Successors and Assigns. This Note may be assigned or transferred by the Noteholders to any individual, corporation,
company, limited liability company, trust, joint venture, association, partnership, unincorporated organization, governmental authority, or other entity. 

13. Integration. This Note constitutes the entire contract between the Borrower and the Noteholders with respect to the subject matter
hereof and supersedes all previous agreements and understandings, oral or written, with respect thereto; provided, however, that nothing in this Note modifies, supersedes, voids, or otherwise alters the MIPA. 

14. Amendments and Waivers. No term of this Note may be waived, modified, or amended, except by an instrument in writing signed by the
Borrower and the Noteholders. Any waiver of the terms hereof sshall be effective only in the specific instance and for the specific purpose given. 

  
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 15. No Waiver; Cumulative Remedies. No failure by the Noteholders to exercise
and no delay in exercising any right, remedy, or power hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, or power hereunder preclude any other or further exercise thereof or the exercise of
any other right, remedy, or power. The rights, remedies, and powers herein provided are cumulative and not exclusive of any other rights, remedies, or powers provided by law. 

16. Severability. If any term or provision of this Note is invalid, illegal, or unenforceable in any jurisdiction, such invalidity,
illegality, or unenforceability shall not affect any other term or provision of this Note or render such term or provision invalid or unenforceable in any other jurisdiction. 

17. Counterparts. This Note and any amendments, waivers, consents, or supplements hereto may be executed in counterparts, each of which
shall constitute an original, but all of which taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page to this Note by facsimile or in electronic (“pdf” or “tif”) format shall be
as effective as delivery of a manually executed counterpart of this Note. 
 18. Electronic Execution. The words
“execution,” “signed,” “signature,” and words of similar import in this Note shall be deemed to include electronic and digital signatures and the keeping of records in electronic form, each of which shall be of the same
effect, validity, and enforceability as manually executed signatures and paper-based recordkeeping systems, to the extent and as provided for under applicable law, including the Electronic Signatures in Global and National Commerce Act of 2000
(15 U.S.C. § 7001 et seq.), the Electronic Signatures and Records Act of 1999 (N.Y. State Tech. Law §§ 301-309), and any other similar state laws based on the Uniform
Electronic Transactions Act. 
 [Signature Page Follows] 

  
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 IN WITNESS WHEREOF, the Borrower has executed this Note as of June 16, 2022. 

 

			
	MSP RECOVERY, LLC
		
	By	 	/s/ Sandra Rodriguez
		 	Name: Sandra Rodriguez
		 	Title: Manager

  

			
	ACKNOWLEDGED AND ACCEPTED BY NOTEHOLDERS
	
	/s/ John H. Ruiz
	John H. Ruiz
	
	/s/ Frank C. Quesada
	Frank C. Quesada

  
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 EXHIBIT A 

PAYMENTS ON THE LOAN 
  

							
	 Date
	  	Principal Amount Paid	  	Unpaid Principal
Balance	  	Name of Person Making
Notation

  
 8 

 SCHEDULE A 

  
 9Document

June 15, 2022

Gabrielle Rabinovitch

Dear Gabrielle,

PayPal is transforming the digital economy and the work we are doing together has never been more important. Our products and services are needed more than ever, and our journey continues to fulfill our mission of democratizing financial services and improving the financial health of individuals, families, businesses, and communities throughout the world. Your contributions play a critical role in driving PayPal’s continued growth and success. I look forward to continuing our work together and supporting your ongoing career growth at PayPal as we seize the endless opportunities ahead.

In recognition of your appointment to interim Chief Financial Officer effective May 23, 2022 upon John Rainey’s departure (the “Effective Date”), I am thrilled to inform you that you are being awarded a special equity award of $3,000,000 and a cash bonus award of $1,000,000, subject to the approval of the Compensation Committee of the Board of Directors of PayPal Holdings, Inc. (the “Compensation Committee”).  In addition, during the Transition Period (as defined below), you will be eligible to participate in the PayPal Holdings, Inc. Executive Change in Control and Severance Plan (as it may be amended and restated from time to time, the “Severance Plan”) at the Executive Vice President level, subject to the terms and conditions of this letter agreement. 

Nothing in this letter agreement is intended to alter the at-will nature of the employment relationship between you and PayPal.

About Your Equity Awards

•This equity award will be granted* in restricted stock units (RSUs) and performance-based restricted stock units (PBRSUs), supporting our pay-for-performance philosophy.
•The anticipated grant date for such RSUs and PBRSUs is on or around June 15, 2022.* 
•The chart below details the vesting schedule for these grants.

									
	Grant	Value	Vesting Schedule
	Restricted Stock Units (“RSUs”)	USD $1,500,000	The value of the RSUs will be converted into the number of shares to be granted, as determined based on PayPal policies on the date of grant.  One-third (1/3) of the shares subject to the RSUs will vest on the first anniversary of the grant date, with one-twelfth (1/12) of the shares subject to the RSUs vesting on each quarterly vest date thereafter, in each case conditioned upon your continued employment with a PayPal company.

The RSUs are subject to applicable taxes and withholdings and are governed by the applicable award agreement and any other related plans and agreements.

	Performance-based Restricted Stock Units (“PBRSUs”)	Target value of USD $1,500,000	The target value of the PBRSUs will be converted into the number of target shares to be granted, as determined based on PayPal policies.

Any PBRSUs earned based on PayPal Holdings’ performance over the 2022-2024 performance period will be vested and settled in March of 2025, conditioned upon your continued employment with a PayPal company.

The PBRSUs are subject to applicable taxes and withholdings and are governed by the applicable award agreement and any other related plans and agreements.

*Grant awards are subject to approval by the Compensation Committee. 

About Your Cash Bonus

•The cash bonus award will be paid in two installments:
•$500,000 will be payable within the first two pay periods from the date of this letter; and 
•the remaining $500,000 will be payable within two pay periods following the earlier of: (i) the second month anniversary of the start date of the permanent or successor Chief Financial Officer and (ii) March 1, 2023.   
•Each payment is subject to applicable taxes and withholdings and is governed by the terms and conditions of this letter agreement.
•Your active employment, as a full-time employee of PayPal in good standing as of the respective payment date, is required to receive the portion of the cash bonus payable on such date.
•If your employment with PayPal ceases for reasons of resignation or Cause (as defined in the Severance Plan, provided that the name “Gabrielle Rabinovitch” will be deemed to replace the defined term “Eligible Participant”), or notice is given for reasons of Cause or resignation, in each case before the applicable payment date, the then-unpaid portion of the cash bonus will not be earned and no pro-rata payment of the then-unpaid portion of the cash bonus will be paid.

About Your Participation in the Severance Plan
•During the Transition Period, you will be eligible to participate in the Severance Plan at the Executive Vice President level, subject to the terms and conditions of the Severance Plan and as set forth herein. 
•“Transition Period” shall mean the period commencing on the Effective Date and ending on the sixth month anniversary of the start date of the permanent or successor PayPal Chief Financial Officer. 
•Notwithstanding anything in this letter agreement to the contrary:
             			
	2211 North First Street San Jose, CA 95131 paypal.com

◦Your eligibility to participate in the Severance Plan at the Executive Vice President level is contingent on your continuous reasonable best efforts to support the permanent or successor Chief Financial Officer in their transition to their Chief Financial Officer role until the sixth month anniversary of the start date of the permanent or successor PayPal Chief Financial Officer, unless otherwise determined by PayPal in its sole discretion. 
◦If the Transition Period expires while you remain employed with PayPal, your eligibility to receive severance from PayPal in the future (if any) shall return to the Senior Vice President level, unless otherwise determined by PayPal in its sole discretion.
◦Notwithstanding anything in the Severance Plan to the contrary, the following occurrences will not constitute Good Reason under the Severance Plan with respect to you (and, for the avoidance of doubt, they will not be considered a “material reduction in the Eligible Participant’s authorities, duties or responsibilities” under the Severance Plan): 
▪A return to a role or title similar to or the same as the Senior Vice President, Corporate Finance and Investor Relations role and title that you held prior to the Effective Date; and/or
▪A change in your reporting relationship such that you no longer report to PayPal’s Chief Executive Officer and/or such that you are required to report to the Chief Financial Officer. 

This letter agreement is the entire agreement between you and PayPal regarding any special equity award or cash bonus and supersedes and replaces any prior agreements regarding any retention bonus, whether verbal or written.

PayPal has tremendous opportunities ahead and your continued contributions are key to helping us live our values and deliver for our customers. Thank you again for all you do on behalf of PayPal, and congratulations on this well-deserved recognition. 

Sincerely,

/s/ Dan Schulman

Dan Schulman
President and CEO

I agree to the terms and conditions set forth in this letter agreement.

									
			
	/s/ Gabrielle Rabinovitch		6/16/2022
	Gabrielle Rabinovitch		Date
			

             			
	2211 North First Street San Jose, CA 95131 paypal.com

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