SEC Contract Filing

Filing Date: 2021-11-05

Document Content:
<DOCUMENT>
<TYPE>EX-10.5
<SEQUENCE>6
<FILENAME>pmts-20210930xex10d5.htm
<DESCRIPTION>EX-10.5
<TEXT>
<!--Enhanced HTML document created with Toppan Merrill Bridge 9.11.0.85--><!--Created on: 11/5/2021 09:10:34 AM (UTC)--><!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"><html><head><meta charset="UTF-8"><title></title></head><body><div style="margin-top:30pt;"></div><div style="max-width:100%;padding-left:5.88%;padding-right:5.88%;position:relative;"><div style="margin-top:30pt;width:100%;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:right;margin:0pt 0pt 12pt 0pt;"><b style="font-weight:bold;">Exhibit 10.5</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:center;margin:0pt 0pt 12pt 0pt;"><img src="pmts-20210930xex10d5001.jpg" alt="Graphic" style="display:inline-block;height:24.74pt;left:0%;padding-bottom:0pt;position:relative;top:0pt;width:211.47pt;"></p></div><div style="clear:both;max-width:100%;position:relative;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><font style="font-family:'Arial','Helvetica','sans-serif';font-size:12pt;">October 1, 2021</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><font style="font-family:'Arial','Helvetica','sans-serif';visibility:hidden;">&#8203;</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><font style="font-family:'Arial','Helvetica','sans-serif';font-size:12pt;">John Lowe</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><font style="font-family:'Arial','Helvetica','sans-serif';font-size:12pt;">7603 E 8th Pl</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><font style="font-family:'Arial','Helvetica','sans-serif';font-size:12pt;">Denver, CO 80230</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><font style="font-family:'Arial','Helvetica','sans-serif';visibility:hidden;">&#8203;</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt 0pt 12pt 0pt;"><font style="font-family:'Arial','Helvetica','sans-serif';font-size:12pt;">Dear John,</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt 0pt 12pt 0pt;"><font style="font-family:'Arial','Helvetica','sans-serif';font-size:12pt;">We are pleased to offer you the position of&#160;SVP &amp; General Manager Secure Card, with an effective date of&#160;October 5, 2021.&#160; In this role, you will continue to report to&#160;me.</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt 0pt 12pt 0pt;"><font style="font-family:'Arial','Helvetica','sans-serif';font-size:12pt;">Your salaried rate in this position will be&#160;$16,153.85&#160;&#160;per pay period which if annualized equals&#160;$420,000&#160;per year. Your next merit eligibility date will be February or March 2023 and will continue to depend on overall company budgets and yours and company performance.</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt 0pt 12pt 0pt;"><font style="font-family:'Arial','Helvetica','sans-serif';font-size:12pt;">You will continue to be eligible for CPI&#8217;s Short-Term Incentive Plan (STIP).&#160; Your new annual target opportunity is $357,000, or approximately&#160;85% of your new base pay.&#160; For 2021 your STIP target opportunity is $315,825 comprised of 75% of your CFO STIP target of $302,100 and 25% of your new STIP target of $357,000. The STIP is paid quarterly and is based on Company and individual performance results. The plan also requires minimum Company financial results to be met and you remaining employed through day of payout.</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt 0pt 12pt 0pt;"><font style="font-family:'Arial','Helvetica','sans-serif';font-size:12pt;white-space:pre-wrap;">You will be eligible for long-term incentives, under the Company&#8217;s Omnibus Incentive Plan. Your new annual target is $173,000. The difference between this new target and your CFO LTIP target of $167,478 or $5,522 will be multiplied by 1.65 ($9,111) to represent approximately 18 months until the next LTIP awards in February or March 2023 will be granted on the close of business of October 5, 2021, with a 50/50 split between restricted stock units and stock options, on terms established by the Compensation Committee of the Board. Your next equity grant is anticipated to be in February or March 2023, which is our next planned annual grant, as we are resetting timing of our annual cycle from fall to February/March.</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt 0pt 12pt 0pt;"><font style="font-family:'Arial','Helvetica','sans-serif';font-size:12pt;">Also, note that in 2023, our intent is to rebalance the weighting between our STIP and LTIP plans, with a heavier balance moving to LTIP/equity. We anticipate that the weighting between STIP and LTIP value for your role will be weighted approximately 50% to STIP or $265,000 and 50% to LTIP or $265,000 in 2023 based on your new annual STIP and LTIP targets as outlined in this letter.</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><font style="font-family:'Arial','Helvetica','sans-serif';font-size:12pt;">John, we are very excited to offer this opportunity to broaden your career experience, and to support your continued growth and development. To further demonstrate our commitment to your learning and networking in this new role, we are also offering the opportunity to apply for and participate in an Executive Education program geared toward General Management. There are a variety of top-tier universities offering