Exhibit 10.36
VISA INC. 2007
EQUITY INCENTIVE COMPENSATION PLAN CEO
Performance
Share Award Agreement
This PERFORMANCE
SHARE AWARD AGREEMENT (this “ Agreement ”),
dated November 5, 2008 (the “ Grant Date
”), is by and between VISA INC. (the “ Company
”) and [ —
] (the “
Participant ”), pursuant to the Visa Inc. 2007 Equity
Incentive Compensation Plan (the “ Plan ”).
Capitalized terms that are not defined herein shall have the
meanings given to such terms in the Plan.
WHEREAS
, pursuant to the
provisions of the Plan, the Committee has authorized the grant to
the Participant of Performance Shares in accordance with the terms
and conditions of this Agreement; and
WHEREAS
, the Participant
and the Company desire to enter into this Agreement to evidence and
confirm the grant of such Performance Shares on the terms and
conditions set forth herein.
NOW
,
THEREFORE , the Participant and the Company agree as
follows:
1. Grant of
Performance Shares . Pursuant to the provisions of the Plan and
this Agreement, the Company on the Grant Date has granted and
hereby evidences the grant to the Participant, subject to the terms
and conditions set forth herein and in the Plan, of an Award of
[ —
] Performance
Shares (this “ Award ”).
2. Payment of
Earned and Vested Performance Shares . Subject to the
provisions of this Section 2 and Sections 4 and 5 of the
Agreement, the Payment Value of each Performance Share covered by
this Award which the Committee determines, in writing, to be earned
and vested pursuant to Sections 3, 4(b) or 5 shall be paid or
delivered to the Participant on a date as soon as administratively
practicable (but no later than 60 days) after the applicable
vesting date described in Sections 3(b), 4(b) or 5 on which such
Performance Share initially becomes vested. For purposes of this
Agreement, “ Payment Value ” means the Fair
Market Value of a Share on the applicable vesting date. Payments
hereunder shall be made in Shares, unless the Committee, in its
discretion, determines to make such payments in cash or a
combination of cash and Shares. The foregoing to the contrary
notwithstanding, if the Participant’s Termination occurs
under any circumstances other than death, any such payment due by
reason of such Termination shall be delayed for six months from the
date of such Termination if the Participant is a “specified
employee” (as such term is defined in
Section 409A(a)(2)(B)(i) of the Code).
3. Performance
Criteria and Vesting Applicable to Performance Shares
.
(a)
Performance Criteria .
(i)
Performance Cycle . The Performance Cycle for this Award
shall commence on October 1, 2008, and shall end on
September 30, 2009.
(ii)
Performance Goal . The Performance Goal for the Performance
Cycle is specified levels of the Company’s Adjusted Net
Income. For this purpose,
1
“ Adjusted Net
Income ” means the Company’s fiscal year 2009 net
revenue, less operating expenses, including depreciation and
amortization, as reported in the Company’s Fiscal Year 2009
Financial Statements. Expenses related to covered litigation,
restructuring costs, purchase amortization, and other income and
expenses are excluded. The amount of Adjusted Net Income shall be
adjusted to exclude the effects of extraordinary items to the
extent approved by the Committee in its discretion.
(iii)
Percentage of Performance Shares Earned . The extent to
which Performance Shares shall become earned when and to the extent
determined by the Committee according to the following
schedule:
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Performance
Level
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|
Adjusted Net Income
|
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Percentage of
Performance
Shares Earned
|
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Less than
$[ —
]
|
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0%
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Threshold
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$[
—
]
|
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50%
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Target
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$[
—
]
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100%
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Maximum
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$[
—
] or
more
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200%
|
If the Adjusted
Net Income falls between Threshold and Target, or between Target
and Maximum, then the percentage of Performance Shares earned shall
be the sum of the Percentage of Performance Shares Earned in the
schedule above for the lower such Performance Level plus the
product of (i) the difference between the Percentage of
Performance Shares Earned in the schedule above for the greater and
lower such Performance Levels, multiplied by (ii) a fraction,
the numerator of which is the amount by which the Adjusted Net
Income achieved exceeds the Adjusted Net Income in the schedule
above for the lower such Performance Level and the denominator of
which is the difference between Adjusted Net Income amounts in the
schedule above for the greater and lower such Performance Levels.
The percentage of Performance Shares earned shall never exceed
200%.
(iv)
Notification . Promptly following the end of the Performance
Cycle, the Committee shall notify the Participant in writing of the
number of Performance Shares earned.
(b)
Vesting . One-half of the Performance Shares that are earned
pursuant to Section 3(a) shall become vested on each of
November 5, 2010, and November 5, 2011.
4. Termination
of Employment .
(a) In
General . Except as otherwise provided in this Section 4
or in Section 5 of this Agreement or in the Plan, all
Performance Shares subject to this Award that have not become
vested pursuant to Section 3(b) prior to the date of the
Participant’s Termination shall be immediately forfeited upon
such Termination.
(b) Death,
Disability, without Cause, for Good Reason prior to a Change of
Control, and Retirement . Upon Termination of the Participant
after the end of the
2
Performance Cycle due to
death or Disability (as defined below), by the Company without
Cause (as defined below) , by the Participant for Good Reason (as
defined below) prior to a Change of Control or at or after
attainment of normal retirement eligibility under the generally
applicable retirement plan of the Company, a Subsidiary or an
Affiliate under which the Participant is covered in his or her home
country (“Retirement”), the Participant shall be fully
vested in all of his or her Performance Shares that have been
earned pursuant to Section 3(a)(iii) but are not yet vested
under Section 3(b). If Termination of the Participant occurs
due to death or Disability, by the Company without Cause, by the
Participant for Good Reason prior to a Change of Control or
Retirement, in each case, prior to the end of the Performance
Cycle, as of the last day of the Performance Cycle, all of the
Performance Shares (if any) subject to this Award shall be eligible
to be earned (based on actual performance through the end of the
Performance Cycle), and any such earned Performance Shares shall be
fully vested.
5. Change of
Control . Notwithstanding Sections 2, 3 or 4 of this Agreement
to the contrary, if a Change of Control occurs, and, at any later
time prior to the second (2nd) anniversary of the Change of
Control, but after the end of the Performance Cycle, the
Participant incurs a Termination, either by the Company, a
Subsidiary or an Affiliate without Cause, or by the Participant for
Good Reason, then the Participant shall be fully vested in all of
the Performance Shares subject to this Award that have been earned
pursuant to Section 3(a)(iii) but not yet vested under
Section 3(b) ( provided that, if such Change of Control
occurs prior to the end of the Performance Cycle, the percentage of
Performance Shares subject to this Award earned shall be based on
the deemed achievement of the Target Performance Level (within the
meaning of Section 3(a)(iii)), and such earned Performance
Shares shall be fully vested upon any such Termination). For the
avoidance of doubt, Section 14.1(b) of the Plan shall not
apply to the Performance Shares subject to this Agreement to the
extent such provision conflicts with this
Section 5.
6.
Restrictions on Transfer . Performance Shares may not be
sold, assigned, hypothecated, pledged or otherwise transferred or
encumbered in any manner except (a) by will or the laws of
descent and distribution or (b) as otherwise permitted
pursuant to the Plan.
7. Dividend
Equivalents . Each Performance Share subject to this Award
shall entitle the Participant to Dividend Equivalents with respect
to regular cash dividends that would otherwise be paid on one Share
during the period from the date such Performance Share is earned in
accordance with Section 3(a) to the date such Performance
Share is paid in accordance with Section 2 or forfeited in
accordance with Section 4(a). Any such Dividend Equivalent
shall be paid to the Participant at (or within thirty
(30) days followin