Document:

EX-4.2

 Exhibit 4.2 

EXECUTION COPY 
  

 
 ALTERYX, INC. 

SECOND AMENDED AND RESTATED 
 INVESTORS’
RIGHTS AGREEMENT 
 September 24, 2015 

 TABLE OF CONTENTS 
  

							
	 	 	 	  	Page	 
			
	SECTION †1	 	 DEFINITIONS
	  	 	1	 
			
	 1.1
	 	Certain Definitions	  	 	1	 
			
	SECTION †2	 	 REGISTRATION RIGHTS
	  	 	3	 
			
	 2.1
	 	Requested Registration	  	 	3	 
	 2.2
	 	Company Registration	  	 	6	 
	 2.3
	 	Registration on Form S-3	  	 	7	 
	 2.4
	 	Expenses of Registration	  	 	7	 
	 2.5
	 	Registration Procedures	  	 	8	 
	 2.6
	 	Indemnification	  	 	9	 
	 2.7
	 	Information by Holder	  	 	11	 
	 2.8
	 	Restrictions on Transfer	  	 	11	 
	 2.9
	 	Rule 144 Reporting	  	 	13	 
	 2.10
	 	Market Stand-Off Agreement	  	 	13	 
	 2.11
	 	Delay of Registration	  	 	14	 
	 2.12
	 	Transfer or Assignment of Registration Rights	  	 	14	 
	 2.13
	 	Limitations on Subsequent Registration Rights	  	 	14	 
	 2.14
	 	Termination of Registration Rights	  	 	14	 
			
	SECTION †3	 	 INFORMATION COVENANTS OF THE COMPANY
	  	 	14	 
			
	 3.1
	 	Basic Financial Information and Inspection Rights	  	 	14	 
	 3.2
	 	Confidentiality	  	 	15	 
	 3.3
	 	D&O Insurance; Key Man Insurance	  	 	16	 
	 3.4
	 	Indemnification Agreements	  	 	16	 
	 3.5
	 	Proprietary Information and Inventions Agreement	  	 	16	 
	 3.6
	 	Compensation Committee	  	 	16	 
	 3.7
	 	Notification	  	 	16	 
	 3.8
	 	Right to Conduct Activities	  	 	16	 
	 3.9
	 	Termination of Covenants	  	 	16	 
			
	SECTION †4	 	 RIGHT OF FIRST REFUSAL
	  	 	17	 
			
	 4.1
	 	Right of First Refusal to Significant Stockholders	  	 	17	 
			
	SECTION †5	 	 MISCELLANEOUS
	  	 	18	 
			
	 5.1
	 	Amendment	  	 	18	 
	 5.2
	 	Notices	  	 	18	 
	 5.3
	 	Governing Law	  	 	19	 
	 5.4
	 	Successors and Assigns	  	 	19	 
	 5.5
	 	Entire Agreement	  	 	19	 
	 5.6
	 	Delays or Omissions	  	 	19	 
	 5.7
	 	Severability	  	 	20	 
	 5.8
	 	Titles and Subtitles	  	 	20	 
	 5.9
	 	Counterparts	  	 	20	 
	 5.10
	 	Telecopy Execution and Delivery	  	 	20	 
	 5.11
	 	Jurisdiction; Venue	  	 	20	 
	 5.12
	 	Further Assurances	  	 	20	 

  
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 TABLE OF CONTENTS (continued) 

 

							
	 5.13
	 	Termination Upon Change of Control	  	 	20	 
	 5.14
	 	Conflict	  	 	20	 
	 5.15
	 	Attorneys’ Fees	  	 	20	 
	 5.16
	 	Jury Trial	  	 	20	 
	 5.17
	 	Common Stock Valuation	  	 	21	 
	 5.18
	 	Aggregation of Stock	  	 	21	 

  
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 ALTERYX, INC. 

SECOND AMENDED AND RESTATED 
 INVESTORS’
RIGHTS AGREEMENT 
 This Second Amended and Restated Investors’ Rights Agreement (this “Agreement”) is made and
entered into as of September 24, 2015, by and among Alteryx, Inc., a Delaware corporation (the “Company”); the individuals listed on Exhibit A-1 (each a
“Principal Stockholder” and collectively “Principal Stockholders”); Sapphire Ventures Fund I, L.P., Toba Capital Fund II, LLC, Teach A Man To Fish Foundation, and the funds affiliated with Insight
Venture Management, LLC (“Insight”) set forth on Exhibit A-2 (the “Existing Preferred Holders”); Meritech Capital Partners V L.P. and Meritech
Capital Affiliates V L.P. (together, the “Meritech Investors”) and the funds and investment vehicles set forth on Exhibit A-3, (together with any Iconiq Affiliates that hold shares of stock in the Company, the
“Iconiq Investors” and, together with the Meritech Investors and the Existing Preferred Holders, the “Investors”). 

RECITALS 
 The Company, the Principal
Stockholders and the Existing Preferred Holders are parties to a First Amended and Restated Investors’ Rights Agreement dated as of September 30, 2014 (the “Prior Agreement”). The Company, certain of the Existing
Preferred Holders, the Iconiq Investors and the Meritech Investors have entered into a Series C Preferred Stock and Common Stock Purchase Agreement (the “Purchase Agreement”) dated of even date herewith, pursuant to which the
Company desires to sell to the Iconiq Investor, the Meritech Investors and certain Existing Preferred Holders, and the Iconiq Investor, the Meritech Investors and certain Existing Preferred Holders desire to purchase (the “Series C
Financing”) from the Company shares of the Company’s Series C Preferred Stock (the “Series C Preferred Stock”) and shares of the Company’s Common Stock (the “Common Stock”). Capitalized
terms not otherwise defined herein have the meaning given them in the Purchase Agreement. A condition to the obligations of the purchasers under the Purchase Agreement is that the Company, the Principal Stockholders, the Existing Preferred Holders,
the Iconiq Investor and the Meritech Investors enter into this Agreement in order to provide the Investors (i) certain rights to register shares of the Company’s common stock issuable upon conversion of the Company’s preferred stock held
by the Investors, (ii) certain rights to receive or inspect information pertaining to the Company, and (iii) a right of first refusal with respect to certain issuances by the Company of its securities. The Company, the Principal Stockholders and the
Existing Preferred Holders desire to induce the Iconiq Investors and the Meritech Investors to purchase shares of Series C Preferred Stock and Common Stock pursuant to the Purchase Agreement by agreeing to the terms and conditions set forth below.

 The Company, the Principal Stockholders and the Existing Preferred Holders desire to amend and restate the Prior Agreement in its entirety as set
forth herein. 
 AGREEMENT 

SECTION †1 DEFINITIONS 
  

	 	1.1	Certain Definitions. As used in this Agreement, the following terms shall have the meanings set forth below: 

(a)       “Affiliate” means, with respect to any individual, firm, corporation, partnership,
association, limited liability company, trust or any other entity (collectively, a “Person”), another Person who, directly or indirectly, controls, is controlled by or is under common control with such Person, including,
without limitation, any general partner, managing member, officer or director of such Person or any venture capital fund now or hereafter existing that is controlled by one or more general partners or managing members of, or shares the same
management company with, such Person. 

 (b)       “Closing” shall mean the date of the sale
of shares of the Company’s Series C Preferred Stock pursuant to the Purchase Agreement. 
 (c)
      “Commission” shall mean the Securities and Exchange Commission or any other federal agency at the time administering the Securities Act. 

(d)       “Common Stock” means the Common Stock of the Company. 

(e)       “Conversion Stock” shall mean shares of Common Stock issued upon conversion of the
Preferred Stock. 
 (f)       “Exchange Act” shall mean the Securities Exchange Act of 1934, as
amended, or any similar successor federal statute and the rules and regulations thereunder, all as the same shall be in effect from time to time. 

(g)       “Holders” shall mean the Investors and any holder of Registrable Securities as provided
hereunder or to whom the registration rights conferred by this Agreement have been duly and validly transferred in accordance with Section 2.12 of this Agreement. 

(h)       “Indemnified Party” shall have the meaning set forth in Section 2.6(c). 

(i)       “Indemnifying Party” shall have the meaning set forth in Section 2.6(c). 

(j)       “Initial Public Offering” shall mean the closing of the Company’s first firm
commitment underwritten public offering of the Company’s Common Stock registered under the Securities Act. 
 (k)
      “Initiating Holders” shall mean any Holder or Holders who in the aggregate hold not less than fifty percent (50%) of the outstanding Registrable Securities. 

(l)       “Major Investor” shall mean (i) any Holder who owns at least 100,000 shares (as
adjusted for stock splits, stock dividends, reverse stock splits, and the like) of Preferred Stock and (ii) for purposes of Section 3.1 only, the Meritech Investors, if the Meritech Investors own at least 2,000,000 shares of Common Stock. 

(m)       “New Securities” shall have the meaning set forth in Section 4.1(a). 

(n)       “Preferred Stock” shall mean shares of the Company’s Series A Preferred Stock,
Series B Preferred Stock and Series C Preferred Stock. 
 (o)       “Purchase Agreement”
shall have the meaning set forth in the Recitals. 
 (p)       “Registrable Securities” shall
mean (i) shares of Common Stock held by an Investor, whether acquired as of the date of this Agreement or thereafter, including but not limited to, the shares of Common Stock issued or issuable pursuant to the conversion of the Shares; (ii) any
Common Stock issued as a dividend or other distribution with respect to or in exchange for or in replacement of the shares referenced in (i) above and (iii) for purposes of Section 2.2 and 2.4 through 2.14 as appropriate, shares of Common Stock held
by the Principal Stockholders; provided, however, that Registrable Securities shall not include any shares of Common Stock described in clause (i), (ii), or (iii) above which have previously been registered or which have been sold to the
public either pursuant to a registration statement or Rule 144, or which have been sold 

  
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in a private transaction in which the transferor’s rights under this Agreement are not validly assigned in accordance with this Agreement. 

(q)       The terms “register,” “registered” and
“registration” shall refer to a registration effected by preparing and filing a registration statement in compliance with the Securities Act and applicable rules and regulations thereunder, and the declaration or ordering of
the effectiveness of such registration statement. 
 (r)       “Registration Expenses” shall
mean all expenses incurred in effecting any registration pursuant to this Agreement, including, without limitation, all registration, qualification, and filing fees, printing expenses, escrow fees, fees and disbursements of counsel for the Company
and one special counsel for the Holders reasonably acceptable to each Investor, blue sky fees and expenses, and expenses of any regular or special audits incident to or required by any such registration, but shall not include Selling Expenses, fees
and disbursements of other counsel for the Holders and the compensation of regular employees of the Company, which shall be paid in any event by the Company. 

(s)       “Restricted Securities” shall mean any Registrable Securities required to bear the
first legend set forth in Section 2.8(b). 
 (t)       “Rule 144” shall mean Rule 144 as
promulgated by the Commission under the Securities Act, as such Rule may be amended from time to time, or any similar successor rule that may be promulgated by the Commission. 

(u)       “Rule 145” shall mean Rule 145 as promulgated by the Commission under the Securities
Act, as such Rule may be amended from time to time, or any similar successor rule that may be promulgated by the Commission 
 (v)
      “Securities Act” shall mean the Securities Act of 1933, as amended, or any similar successor federal statute and the rules and regulations thereunder, all as the same shall be in effect
from time to time. 
 (w)       “Selling Expenses” shall mean all underwriting discounts,
selling commissions and stock transfer taxes applicable to the sale of Registrable Securities and fees and disbursements of counsel for any Holder (other than the fees and disbursements of one special counsel to the Holders included in Registration
Expenses). 
 (x)       “Shares” shall mean the Preferred Stock. 

(y)       “Significant Stockholders” shall mean the Investors and the Principal Stockholders.

 (z)       “Withdrawn Registration” shall mean a forfeited demand registration under Section
2.1 in accordance with the terms and conditions of Section 2.4. 
 SECTION †2 REGISTRATION RIGHTS 

 

	 	2.1	Requested Registration. 

 (a)       Request for
Registration. Subject to the conditions set forth in this Section 2.1, if the Company shall receive from Initiating Holders a written request signed by such Initiating Holders that the Company effect any registration with respect to all or a
part of the Registrable Securities (such request shall state the number of shares of Registrable Securities to be disposed of by such Initiating Holders) and the 

  
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holders of a majority of the then outstanding shares of Preferred Stock, voting together as a single class on an as-converted basis consent to such registration, the Company will: 

(i)        promptly give written notice of the proposed registration to all other Holders; and 

(ii)       as soon as practicable, file and use its commercially reasonable efforts to effect such registration
(including, without limitation, filing post-effective amendments, appropriate qualifications under applicable blue sky or other state securities laws, and appropriate compliance with the Securities Act) and to permit or facilitate the sale and
distribution of all or such portion of such Registrable Securities as are specified in such request, together with all or such portion of the Registrable Securities of any Holder or Holders joining in such request as are specified in a written
request received by the Company within twenty (20) days after such written notice from the Company is mailed or delivered. 
 (b)
    Limitations on Requested Registration. The Company shall not be obligated to effect, or to take any action to effect, any such registration pursuant to this Section 2.1: 

(i)         Prior to the earlier of (A) the three (3) year anniversary of the date of this Agreement or (B) six
(6) months following the effective date of the first registration statement filed by the Company covering an underwritten offering of any of its securities to the general public (or the subsequent date on which all market stand-off agreements
applicable to the offering have terminated); 
 (ii)        If the Initiating Holders propose to sell less than
twenty percent (20%) of the outstanding Registrable Securities unless the aggregate proceeds of which (after deduction for underwriter’s discounts and expenses related to the issuance) are greater than $5,000,000; 

(iii)       In any particular jurisdiction in which the Company would be required to execute a general consent to service
of process in effecting such registration, qualification, or compliance, unless the Company is already subject to service in such jurisdiction and except as may be required by the Securities Act; 

(iv)       After the Company has initiated two (2) such registrations pursuant to this Section 2.1 (counting for these
purposes only (x) registrations which have been declared or ordered effective and pursuant to which securities have been sold, and (y) Withdrawn Registrations); 

(v)        During the period starting with the date ninety (90) days prior to the Company’s good faith estimate
of the date of filing of, and ending on a date one hundred eighty (180) days after the effective date of, a Company-initiated registration (or ending on the subsequent date on which all market stand-off agreements applicable to the offering have
terminated); provided that the Company is actively employing in good faith commercially reasonable efforts to cause such registration statement to become effective; and 

(vi)       If the Initiating Holders propose to dispose of shares of Registrable Securities that may be registered on Form S-3 pursuant to a request made under Section 2.3. 
 (c)     Deferral.
If (i) in the good faith judgment of the Board of Directors of the Company, the filing of a registration statement covering the Registrable Securities would be detrimental to the Company and the Board of Directors of the Company concludes, as a
result, that it is in the best interests of the Company to defer the filing of such registration statement at such time, and (ii) the Company shall furnish to such Holders a certificate signed by the Chief Executive Officer or equivalent senior
executive of the Company stating that in the good faith judgment of the Board of Directors of the Company, it would be 

  
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detrimental to the Company for such registration statement to be filed in the near future and that it is, therefore, in the best interests of the Company to defer the filing of such registration
statement, then (in addition to the limitations set forth in Section 2.1(b)(v) above) the Company shall have the right to defer such filing for a period of not more than sixty (60) days after receipt of the request of the Initiating Holders, and,
provided further, that the Company shall not defer its obligation in this manner more than twice in any twelve-month period. 
 (d)
      Underwriting. If the Initiating Holders intend to distribute the Registrable Securities covered by their request by means of an underwriting, they shall so advise the Company in writing as a part of
their request made pursuant to Section 2.1, and the Company shall include such information in the written notice of the proposed registration to all other Holders. The underwriter(s) will be selected by the Company and shall be reasonably acceptable
to a majority in interest of the Initiating Holders. In such event, the right of any Holder to include all or any portion of its Registrable Securities in a registration pursuant to this Section 2.1 shall be conditioned upon such Holder’s
participation in an underwriting and the inclusion of such Holder’s Registrable Securities to the extent provided herein. If the Company shall request inclusion in any registration pursuant to Section 2.1 of securities being sold for its own
account, or if other persons shall request inclusion in any registration pursuant to Section 2.1, the Initiating Holders shall, on behalf of all Holders, offer to include such securities in the underwriting and such offer shall be conditioned upon
the participation of the Company or such other persons in such underwriting and the inclusion of the Company’s and such person’s other securities of the Company and their acceptance of the further applicable provisions of this Section
†2 (including Section 2.10). The Company shall (together with all Holders and other persons proposing to distribute their securities through such underwriting) enter into an underwriting agreement in customary form with the representative of
the underwriter or underwriters selected for such underwriting by the Company, which underwriters are reasonably acceptable to a majority-in-interest of the Initiating Holders. 

Notwithstanding any other provision of this Section 2.1, if the underwriters advise the Initiating Holders in writing that marketing factors require a
limitation on the number of shares to be underwritten, the number of Registrable Securities that may be so included shall be allocated as follows: (i) first, among all Holders requesting to include Registrable Securities in such registration
statement based on the pro rata percentage of Registrable Securities held by such Holders, assuming conversion; and (ii) second, to the Company, which the Company may allocate, at its discretion, for its own account, or for the account of
other holders or employees of the Company. 
 If a person who has requested inclusion in such registration as provided above does not agree to the
terms of any such underwriting, such person shall be excluded therefrom by written notice from the Company, the underwriter or the Initiating Holders; provided that, notwithstanding anything to the contrary contained herein, such terms of any
such underwriting do not require any Holder to make any representations or warranties to or agreements with the Company or the underwriters in connection with such underwriting agreement other than representations, warranties or agreements regarding
such Holder, such Holder’s title to the Registrable Securities, such Holder’s authority to sell the Registrable Securities, such Holder’s intended method of distribution, absence of liens with respect to the Registrable Securities,
enforceability of the applicable underwriting agreement as against such Holder, receipt of all consents and approvals with respect to the entry into such underwriting agreement and the sale of such Registrable Securities and any other
representations required to be made by such Holder under applicable law, rule or regulation, and the aggregate amount of the liability of such Holder in connection with such underwriting agreement shall not exceed such Holder’s net proceeds
from such underwritten offering. The securities so excluded shall also be withdrawn from registration. Any Registrable Securities or other securities excluded or withdrawn from such underwriting shall also be withdrawn from such registration. If
shares are so withdrawn from the registration and if the number of shares to be included in such registration was previously reduced as a result of marketing factors pursuant to this Section 2.1(c), then the Company shall then offer to all Holders
who have retained 

  
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rights to include securities in the registration the right to include additional Registrable Securities in the registration in an aggregate amount equal to the number of shares so withdrawn. 

 

	 	2.2	Company Registration. 

 (a)       Company
Registration. If the Company shall determine to register any of its securities either for its own account or the account of a security holder or holders, other than a registration pursuant to Section 2.1 or 2.3, a registration relating
solely to employee benefit plans, a registration relating to the offer and sale of debt securities, a registration relating to a corporate reorganization or other Rule 145 transaction, or a registration on any registration form that does not permit
secondary sales, the Company will: 
 (i)       promptly give written notice of the proposed registration to all
Holders; and 
 (ii)       use its commercially reasonable efforts to include in such registration (and any related
qualification under blue sky laws or other compliance), except as set forth in Section 2.2(b) below, and in any underwriting involved therein, all of such Registrable Securities as are specified in a written request or requests made by any Holder or
Holders received by the Company within ten (10) days after such written notice from the Company is mailed or delivered. Such written request may specify all or a part of a Holder’s Registrable Securities. 

(b)       Underwriting. If the registration of which the Company gives notice is for a registered public
offering involving an underwriting, the Company shall so advise the Holders as a part of the written notice given pursuant to Section 2.2(a)(i). In such event, the right of any Holder to registration pursuant to this Section 2.2 shall be conditioned
upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting to the extent provided herein. All Holders proposing to distribute their securities through such
underwriting shall (together with the Company) enter into an underwriting agreement in customary form with the representative of the underwriter or underwriters selected by the Company. 

Notwithstanding any other provision of this Section 2.2, if the underwriters advise the Company in writing that marketing factors require a limitation
on the number of shares to be underwritten, the underwriters may (subject to the limitations set forth below) limit the number of Registrable Securities to be included in, the registration and underwriting. The Company shall so advise all holders of
securities requesting registration, and the number of shares of securities that are entitled to be included in the registration and underwriting shall be allocated, as follows: (i) first, to the Company for securities being sold for its own account,
and (ii) second, to the Investors up to the number of Registrable Securities they are requesting to include in such registration statement, and (iii) third, to the Principal Stockholders requesting to include Registrable Securities in such
registration statement based on the pro rata percentage of Registrable Securities held by such Principal Stockholders. Notwithstanding the foregoing, no such reduction shall reduce the value of the Registrable Securities of the Investors
included in such registration below twenty five percent (25%) of the total value of securities included in such registration, unless such offering is the Company’s Initial Public Offering, in which event any or all of the Registrable Securities
of the Investors may be excluded. 
 If a person who has requested inclusion in such registration as provided above does not agree to the terms of any
such underwriting, such person shall also be excluded therefrom by written notice from the Company or the underwriter; provided that, notwithstanding anything to the contrary contained herein, such terms of any such underwriting do not
require any Holder to make any representations or warranties to or agreements with the Company or the underwriters in connection with such underwriting agreement other than representations, warranties or agreements regarding such Holder, such
Holder’s title to the Registrable Securities, such Holder’s authority to sell the Registrable Securities, such Holder’s intended method of 

  
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distribution, absence of liens with respect to the Registrable Securities, enforceability of the applicable underwriting agreement as against such Holder, receipt of all consents and approvals
with respect to the entry into such underwriting agreement and the sale of such Registrable Securities and any other representations required to be made by such Holder under applicable law, rule or regulation, and the aggregate amount of the
liability of such Holder in connection with such underwriting agreement shall not exceed such Holder’s net proceeds from such underwritten offering. The Registrable Securities or other securities so excluded shall also be withdrawn from such
registration. Any Registrable Securities or other securities excluded or withdrawn from such underwriting shall be withdrawn from such registration. 

(c)       Right to Terminate Registration. The Company shall have the right to terminate or withdraw any
registration initiated by it under this Section 2.2 prior to the effectiveness of such registration whether or not any Holder has elected to include securities in such registration. 

 

	 	2.3	Registration on Form S-3. 

 (a)       Request for Form S-3
Registration. After its initial public offering, the Company shall use its commercially reasonable efforts to qualify for registration on Form S-3 or any comparable or successor form or forms. After the Company has qualified for the use of
Form S-3, in addition to the rights contained in the foregoing provisions of this Section †2 and subject to the conditions set forth in this Section 2.3, if the Company shall receive from a Holder or Holders of Registrable Securities a
written request that the Company effect any registration on Form S-3 or any similar short form registration statement with respect to all or part of the Registrable Securities (such request shall state the number of shares of Registrable Securities
to be disposed of and the intended methods of disposition of such shares by such Holder or Holders) and a majority of the Company’s Board of Directors approve the registration of such Registrable Securities, the Company will take all such
action with respect to such Registrable Securities as required by Section 2.1(a)(i) and (ii). 
 (b)
      Limitations on Form S-3 Registration. The Company shall not be obligated to effect, or take any action to effect, any such registration pursuant to this Section 2.3: 

(i)       In the circumstances described in either Sections 2.1(b)(i), 2.1(b)(iii) or 2.1(b)(v); 

(ii)       If the Holders propose to sell Registrable Securities on Form S-3 at an aggregate price to the public of less
than $1,000,000; or 
 (iii)       If, in a given twelve-month period, the Company has effected two (2) such
registrations in such period. 
 (c)       Deferral. The provisions of Section 2.1(c) shall apply to any
registration pursuant to this Section 2.3. 
 (d)       Underwriting. If the Holders of Registrable
Securities requesting registration under this Section 2.3 intend to distribute the Registrable Securities covered by their request by means of an underwriting, the provisions of Section 2.1(c) shall apply to such registration. Notwithstanding
anything contained herein to the contrary, registrations effected pursuant to this Section 2.3 shall not be counted as requests for registration or registrations effected pursuant to Section 2.1. 

2.4       Expenses of Registration. All Registration Expenses incurred in connection with registrations pursuant to
Sections 2.1, 2.2 and 2.3 shall be borne by the Company; provided, however, that the Company shall not be required to pay for any expenses of any registration proceeding begun pursuant to 

  
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Sections 2.1 and 2.3 if the registration request is subsequently withdrawn at the request of the Holders of a majority of the Registrable Securities to be registered or because a sufficient
number of Holders shall have withdrawn so that the minimum offering conditions set forth in Sections 2.1 and 2.3 are no longer satisfied (in which case all participating Holders shall bear such expenses pro rata among each other based on the
number of Registrable Securities requested to be so registered), unless (i) the Holders of a majority of the Registrable Securities agree to forfeit their right to a demand registration pursuant to Section 2.1 or (ii) a withdrawal by the Holders is
based upon material adverse information relating to the Company that is different from the information known or available (upon request from the Company or otherwise) to the Holders requesting registration at the time of their request for
registration under Section 2.1. In the event of (ii) above, or if all participating Holders bear the Registration Expenses related to such withdrawn registration (which, if applicable, shall be allocated pro rata among each Holder based
on the number of Registrable Securities requested to be so registered), such registration shall not be treated as a counted registration for purposes of Section 2.1. All Selling Expenses relating to securities registered on behalf of the Holders
shall be borne by the holders of securities included in such registration pro rata among each other on the basis of the number of Registrable Securities so registered. 

2.5       Registration Procedures. In the case of each registration effected by the Company pursuant to Section
†2, the Company will keep each Holder advised in writing as to the initiation of each registration and as to the completion thereof. At its expense, the Company will use its commercially reasonable efforts to: 

(a)       Keep such registration effective for a period of ending on the earlier of the date which is ninety (90) days
from the effective date of the registration statement or such time as the Holder or Holders have completed the distribution described in the registration statement relating thereto; 

(b)       Prepare and file with the Commission such amendments and supplements to such registration statement and the
prospectus used in connection with such registration statement (including, but not limited to, any issuer free writing prospectus, as defined in Rule 433 under the Securities Act) as may be necessary to comply with the provisions of the Securities
Act with respect to the disposition of all securities covered by such registration statement for the period set forth in subsection (a) above; 
 (c)
      Furnish such number of prospectuses, including any preliminary prospectuses, and other documents incident thereto, including any amendment of or supplement to the prospectus, as a Holder from time to time may
reasonably request; 
 (d)       Register and qualify the securities covered by such registration statement under such
other securities or Blue Sky laws of such jurisdiction as shall be reasonably requested by the Holders; provided, that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a
general consent to service of process in any such states or jurisdictions; 
 (e)       Notify each seller of
Registrable Securities covered by such registration statement at any time when a prospectus relating thereto is required to be delivered under the Securities Act of the happening of any event as a result of which the prospectus included in such
registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading or incomplete in light of the
circumstances then existing, and following such notification timely prepare and furnish to such seller a reasonable number of copies of a supplement to or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the
purchasers of such shares, such prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading or incomplete in light of
the circumstances then existing; 

  
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 (f)       Provide a transfer agent and registrar for all Registrable
Securities registered pursuant to such registration statement and a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such registration; 

(g)       Cause all such Registrable Securities registered pursuant hereunder to be listed on each securities exchange on
which similar securities issued by the Company are then listed; and 
 (h)       In connection with any underwritten
offering pursuant to a registration statement filed pursuant to Section 2.1, enter into an underwriting agreement in form reasonably necessary to effect the offer and sale of Common Stock, provided such underwriting agreement contains
reasonable and customary provisions, and provided further, that each Holder participating in such underwriting shall also enter into and perform its obligations under such an agreement. 

 

	 	2.6	Indemnification. 

 (a)       To the fullest extent permitted by
law, the Company will indemnify and hold harmless each Holder, each of its officers, members, directors, stockholders and partners, legal counsel and accountants and each person controlling such Holder within the meaning of Section 15 of the
Securities Act, with respect to which registration, qualification or compliance has been effected pursuant to this Section †2, and each underwriter, if any, and each person who controls within the meaning of Section 15 of the Securities Act any
underwriter, against all expenses, claims, losses, damages and liabilities (or actions, proceedings or settlements in respect thereof) arising out of or based on: (i) any untrue statement (or alleged untrue statement) of a material fact contained or
incorporated by reference in any prospectus, offering circular, amendment or supplements thereto, any issuer information (as defined in Rule 433 of the Securities Act) or other document (including any related registration statement, notification or
the like) incident to any such registration, qualification or compliance, (ii) any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, or (iii) any
violation (or alleged violation) by the Company of the Securities Act, the Exchange Act, any state securities laws or any rule or regulation thereunder applicable to the Company and relating to action or inaction required of the Company in
connection with any offering covered by such registration, qualification or compliance, and the Company will reimburse each such Holder, each of its officers, members, directors, stockholders, partners, legal counsel and accountants and each person
controlling such Holder, each such underwriter and each person who controls any such underwriter, for any legal and any other expenses reasonably incurred in connection with investigating and defending or settling any such claim, loss, damage,
liability or action; provided that the Company will not be liable in any such case to the extent that any such claim, loss, damage, liability, or action arises out of or is based on any untrue statement or omission based upon written
information furnished to the Company by such Holder, any of such Holder’s officers, members, directors, stockholders, partners, legal counsel or accountants, any person controlling such Holder, such underwriter or any person who controls any
such underwriter, and stated to be specifically for use therein; and provided, further that, the indemnity agreement contained in this Section 2.6(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or
action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld). 
 (b)
      To the fullest extent permitted by law, each Holder, severally and not jointly, will, if Registrable Securities held by such Holder are included in the securities as to which such registration, qualification or
compliance is being effected, indemnify and hold harmless the Company, each of its directors, officers, partners, legal counsel and accountants and each underwriter, if any, of the Company’s securities covered by such a registration statement,
each person who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act, each other such Holder, and each of their officers, directors and partners, and each person controlling each other such Holder, against
all claims, losses, damages and liabilities (or actions in respect thereof) arising out of or based on: (i) any untrue statement (or 

  
 -9- 

 
alleged untrue statement) of a material fact contained or incorporated by reference in any prospectus, offering circular or other document (including any related registration statement,
notification, or the like) incident to any such registration, qualification or compliance, or (ii) any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not
misleading, in each case to the extent, but only to the extent, that such untrue statement or omission is contained in any information furnished in writing by such Holder to the Company specifically for inclusion in such prospectus, offering
circular or other document (including any related registration statement, notification, or the like) incident to any such registration and has not been corrected in a subsequent writing prior to or concurrently with the sale of the Registrable
Securities to the Person asserting the claim, in each case to the extent, but only to the extent, that such untrue statement (or alleged untrue statement) or omission (or alleged omission) was made in such prospectus, offering circular or other
document (including any related registration statement, notification, or the like) incident to any such registration, in reliance upon and in conformity with written information furnished to the Company by such Holder expressly for use therein, and
will reimburse the Company and such Holders, directors, officers, partners, legal counsel and accountants, persons, underwriters, or control persons for any legal or any other expenses reasonably incurred in connection with investigating or
defending any such claim, loss, damage, liability or action, in each case to the extent, but only to the extent, that such untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in such registration statement,
prospectus, offering circular or other document in reliance upon and in conformity with written information furnished to the Company by such Holder and stated to be specifically for use therein; provided, however, that the obligations of such
Holder hereunder shall not apply to amounts paid in settlement of any such claims, losses, damages or liabilities (or actions in respect thereof) if such settlement is effected without the consent of such Holder (which consent shall not be
unreasonably withheld); and provided that in no event shall any indemnity under this Section 2.6 exceed the net proceeds from the offering received by such Holder, except in the case of fraud or willful misconduct by such Holder. 

(c)       Each party entitled to indemnification under this Section 2.6 (the “Indemnified Party”)
shall give notice to the party required to provide indemnification (the “Indemnifying Party”) promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and shall permit the
Indemnifying Party to assume the defense of such claim or any litigation resulting therefrom; provided that counsel for the Indemnifying Party, who shall conduct the defense of such claim or any litigation resulting therefrom, shall be
approved by the Indemnified Party (whose approval shall not be unreasonably withheld), and the Indemnified Party may participate in such defense at such party’s expense; and provided further that the failure of any Indemnified Party to
give notice as provided herein shall not relieve the Indemnifying Party of its obligations under this Section 2.6, to the extent such failure is not prejudicial. No Indemnifying Party, in the defense of any such claim or litigation, shall, except
with the consent of each Indemnified Party, consent to entry of any judgment or enter into any settlement that does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all
liability in respect to such claim or litigation. Each Indemnified Party shall furnish such information regarding itself or the claim in question as an Indemnifying Party may reasonably request in writing and as shall be reasonably required in
connection with defense of such claim and litigation resulting therefrom. 
 (d)       If the indemnification provided
for in this Section 2.6 is held by a court of competent jurisdiction to be unavailable to an Indemnified Party with respect to any loss, liability, claim, damage, or expense referred to herein, then the Indemnifying Party, in lieu of indemnifying
such Indemnified Party hereunder, shall contribute to the amount paid or payable by such Indemnified Party as a result of such loss, liability, claim, damage, or expense in such proportion as is appropriate to reflect the relative fault of the
Indemnifying Party on the one hand and of the Indemnified Party on the other in connection with the statements or omissions that resulted in such loss, liability, claim, damage, or expense as well as any other relevant equitable considerations;
provided, however, that no contribution by any Holder, when combined with any amounts paid by such Holder pursuant to Section 2.6(b), shall exceed the net proceeds from the 

  
 -10- 

 
offering received by such Holder; and provided further that in no event shall a Holder’s liability pursuant to this Section 2.6(d), when combined with the amounts paid or
payable by such Holder pursuant to Section 2.6(b), exceed the proceeds from the offering received by such Holder (net of any expenses paid by such Holder). The relative fault of the Indemnifying Party and of the Indemnified Party shall be determined
by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the Indemnifying Party or by the Indemnified Party and the
parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission. No person or entity guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act)
will be entitled to contribution from any person or entity who was not guilty of such fraudulent misrepresentation. 
 (e)
      Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in connection with the underwritten public offering are in
conflict with the foregoing provisions, the provisions in the underwriting agreement shall control provided that in no event shall any indemnity obligations exceed the net proceeds from the offering received by such Holder, except in the case of
fraud or willful misconduct by such Holder. 
 2.7     Information by Holder. Each Holder of Registrable Securities shall
furnish to the Company such information regarding such Holder and the distribution proposed by such Holder as the Company may reasonably request in writing and as shall be reasonably required in connection with any registration, qualification, or
compliance referred to in this Section †2. 
  

	 	2.8	Restrictions on Transfer. 

 (a)       The Holder of each certificate
representing Registrable Securities by acceptance thereof agrees to comply in all respects with the provisions of this Section 2.8. Each Holder agrees not to make any sale, assignment, transfer, pledge or other disposition of all or any portion of
the Restricted Securities, or any beneficial interest therein, unless and until the transferee thereof has agreed in writing for the benefit of the Company to take and hold such Restricted Securities subject to, and to be bound by, the terms and
conditions set forth in this Agreement, including, without limitation, this Section 2.8 and Section 2.10, and: 
  (i)
       There is then in effect a registration statement under the Securities Act covering such proposed disposition and the disposition is made in accordance with the registration statement; or 

 (ii)       The Holder shall have given prior written notice to the Company of the Holder’s intention to make
such disposition and shall have furnished the Company with a detailed description of the manner and circumstances of the proposed disposition, and the Holder shall have furnished the Company, at the Holder’s expense, with (i) an opinion of
counsel, reasonably satisfactory to the Company, to the effect that such disposition will not require registration of such Restricted Securities under the Securities Act or (ii) a “no action” letter from the Commission to the effect that
the transfer of such securities without registration will not result in a recommendation by the staff of the Commission that action be taken with respect thereto, whereupon the holder of such Restricted Securities shall be entitled to transfer such
Restricted Securities in accordance with the terms of the notice delivered by the Holder to the Company. 
 (b)
      Each certificate representing Registrable Securities shall (unless otherwise permitted by the provisions of this Agreement) be stamped or otherwise imprinted with a legend substantially similar to the following
(in addition to any legend required under applicable state securities laws): 

  
 -11- 

 THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “ACT”), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS PURSUANT
TO REGISTRATION OR AN EXEMPTION THEREFROM AND EXCEPT AS SET FORTH IN AN INVESTORS’ RIGHTS AGREEMENT, AS AMENDED AND/OR RESTATED, WITH THE COMPANY. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE
ISSUER THAT SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION OTHERWISE COMPLIES WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS UNLESS SUCH TRANSFER IS ALLOWED IN AN INVESTORS’ RIGHTS AGREEMENT, AS AMENDED AND/OR RESTATED, WITH THE
COMPANY. 
 THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO (1) RESTRICTIONS ON TRANSFERABILITY AND RESALE, INCLUDING A LOCK-UP PERIOD IN
THE EVENT OF A PUBLIC OFFERING, AS SET FORTH IN AN INVESTORS’ RIGHTS AGREEMENT, AS AMENDED AND/OR RESTATED, AND (2) VOTING RESTRICTIONS AS SET FORTH IN A VOTING AGREEMENT, AS AMENDED AND/OR RESTATED, AMONG THE COMPANY AND THE ORIGINAL HOLDERS
OF THESE SHARES, COPIES OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE COMPANY. 
 The Holders consent to the Company making a notation on
its records and giving instructions to any transfer agent of the Restricted Securities in order to implement the restrictions on transfer established in this Section 2.8. 

(c)       The first legend referring to federal and state securities laws identified in Section 2.8(b) stamped on a
certificate evidencing the Restricted Securities and the stock transfer instructions and record notations with respect to the Restricted Securities shall be removed and the Company shall issue a certificate without such legend to the holder of
Restricted Securities if (i) those securities are registered under the Securities Act, or (ii) the holder provides the Company with an opinion of counsel reasonably acceptable to the Company to the effect that a sale or transfer of those securities
may be made without registration or qualification. 
 (d)       Notwithstanding the provisions of this Agreement, no
restriction on transfer of Registrable Securities shall apply to a transfer by a Holder that is (A) a partnership transferring to its partners or former partners in accordance with partnership interests, provided that any such former partner was a
partner of Holder as of the date of this Agreement or becomes a partner of Holder after the date of this Agreement, (B) a corporation or other entity transferring to a wholly-owned subsidiary or a parent corporation that owns all of the capital
stock of the Holder, (C) a limited liability company transferring to its members or former members in accordance with their interest in the limited liability company, provided that any such former member was a member of Holder as of the date of this
Agreement or becomes a member of Holder after the date of this Agreement, (D) an individual transferring to the Holder’s family member or trust for the benefit of an individual Holder, (E) an entity transferring to another entity that is under
common control with such Holder, or (F) (i), in the case of any Iconiq Investor, funds or investment vehicles controlled, managed or advised by affiliates of Iconiq Capital Management, LLC (collectively, the “Iconiq
Affiliates”); (ii), in the case of any Insight Investor, funds or investment vehicles controlled, managed or advised by affiliates of Insight (collectively, the “Insight Affiliates”); or (iii), in the case of the
Meritech Investors, funds or 

  
 -12- 

 
investment vehicles controlled, managed or advised by Meritech Capital LLC (collectively, the “Meritech Affiliates”); provided that in each case the transferee will
agree in writing to be subject to the terms of this Agreement to the same extent as if he were an original Holder hereunder. 

2.9      Rule 144 Reporting. With a view to making available the benefits of certain rules and regulations of the
Commission that may permit the sale of the Restricted Securities to the public without registration, the Company agrees to use its commercially reasonable efforts to: 

  (a)       Make and keep adequate current public information with respect to the Company available in
accordance with Rule 144 under the Securities Act, at all times from and after ninety (90) days following the effective date of the first registration under the Securities Act filed by the Company for an offering of its securities to the general
public; 
   (b)       File with the Commission in a timely manner all reports and other documents required
of the Company under the Securities Act and the Exchange Act at any time after it has become subject to such reporting requirements; and 

  (c)       So long as a Holder owns any Restricted Securities, furnish to the Holder forthwith upon written
request a written statement by the Company as to its compliance with the reporting requirements of Rule 144 (at any time from and after ninety (90) days following the effective date of the first registration statement filed by the Company for an
offering of its securities to the general public), and of the Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements), a copy of the most recent annual or quarterly report of the Company, and such
other reports and documents as a Holder may reasonably request in availing itself of any rule or regulation of the Commission allowing a Holder to sell any such securities without registration. 

2.10     Market Stand-Off Agreement. Each Holder shall not sell or otherwise transfer, make any short sale of, loan,
grant any option for the purchase of, or enter into any hedging or similar transaction with the same economic effect as a sale of, or otherwise dispose of, any Common Stock (or other securities) of the Company held by such Holder (other than those
included in the registration) during the one hundred and eighty (180) day period following the effective date of the registration statement for the Company’s Initial Public Offering filed under the Securities Act, provided that all
officers and directors of the Company and all holders of at least one percent (1%) of the Company’s voting securities are bound by and have entered into similar agreements. Notwithstanding the foregoing, if during the last 17 days of the
restricted period, the Company issues an earnings release or material news or a material event relating to the Company occurs, or prior to the expiration of the restricted period the Company announces that it will release earnings results during the
16-day period beginning on the last day of the restricted period, then, upon the request of the managing underwriter, to the extent required by any FINRA rules, the restrictions imposed by this subsection shall continue to apply until the end of the
third trading day following the expiration of the 15-day period beginning on the issuance of the earnings release or the occurrence of the material news or material event. In no event will the restricted period extend beyond 216 days after the
effective date of the registration statement. Notwithstanding Section 5.1 of this Agreement, any discretionary release or waiver by the Company from the obligations provided in this Section 2.10 shall be approved by the Company’s Board of
Directors (including the approval of each of the Series A Designees and the Series B Designee (as defined below), to the extent the Series A Designees and Series B Designee continue to hold a seat on the Company’s board of directors at such
time), and all such waivers shall apply pro rata to all Holders. The obligations described in this Section 2.10 shall not apply to a registration relating solely to employee benefit plans on Form S-1 or Form S-8 or similar forms that may be
promulgated in the future, or a registration relating solely to a transaction on Form S-4 or similar forms that may be promulgated in the future. The Company may impose stop-transfer instructions and may stamp each such certificate with the second
legend set forth in Section 2.8(b) with respect to the shares of Common Stock (or other securities) subject to the foregoing 

  
 -13- 

 
restriction until the end of such one hundred and eighty (180) day (or other) period. Each Holder agrees to execute a market standoff agreement with said underwriters in customary form consistent
with the provisions of this Section 2.10. The “Series A Designees” shall mean the members of the Board of Directors appointed by the holders of shares of the Company’s Series A Preferred Stock. The “Series B Designee” shall
mean the member of the Board of Directors appointed by the holders of shares of the Company’s Series B Preferred Stock. 

2.11      Delay of Registration. No Holder shall have any right to take any action to restrain, enjoin, or
otherwise delay any registration as the result of any controversy that might arise with respect to the interpretation or implementation of this Section †2. 

2.12      Transfer or Assignment of Registration Rights. The rights to cause the Company to register securities
granted to a Holder by the Company under this Section †2 may be transferred or assigned (a) by a Holder to its current and former partners and members and to its affiliates and to a transferee or assignee of not less than one percent (1%) of
the outstanding shares of Common Stock and Preferred Stock (as presently constituted and subject to subsequent adjustments for stock splits, stock dividends, reverse stock splits, and the like) and (b) by an Iconiq Investor to an Iconiq Affiliate,
(c) by an Insight Investor to an Insight Affiliate and (d) by the Meritech Investors to a Meritech Affiliate; provided that (i) the Company is given written notice prior to said transfer or assignment, stating the name and address of the
transferee or assignee and identifying the securities with respect to which such registration rights are intended to be transferred or assigned and (ii) the transferee or assignee of such rights assumes in writing the obligations of such Holder
under this Agreement, including without limitation the obligations set forth in Section 2.10. 

2.13      Limitations on Subsequent Registration Rights. From and after the date of this Agreement, the Company
shall not, without the prior written consent of Holders holding at least fifty percent (50%) of the Registrable Securities, enter into any agreement with any holder or prospective holder of any securities of the Company giving such holder or
prospective holder any registration rights the terms of which are pari passu with or senior to the registration rights granted to the Holders hereunder. 

2.14      Termination of Registration Rights. The right of any Holder to request registration or inclusion in any
registration pursuant to Sections 2.1, 2.2 or 2.3 shall terminate five (5) years after the closing of the Company’s Initial Public Offering. 

SECTION †3 INFORMATION COVENANTS OF THE COMPANY 

The Company hereby covenants and agrees, as follows: 
  

	 	  3.1        Basic	Financial Information and Inspection Rights. 

    (a)       Basic Financial Information. The Company will furnish the following
reports to each Major Investor (as defined below) (other than a Major Investor reasonably deemed by the Company to be a competitor of the Company; provided, however, that each of Sapphire Ventures Fund I, L.P., Toba Capital Fund II, LLC, any Insight
Investor, any Iconiq Investor and any Meritech Investor shall not be deemed to be a competitor of the Company): 
     (i)
      As soon as practicable after the end of each fiscal year of the Company (commencing with fiscal year ended 2015), and in any event within one hundred and twenty (120) days (or such longer period of time within 270
days after the end of the fiscal year as approved by the Board of Directors) after the end of each fiscal year of the Company, an audited consolidated balance sheet of the Company and its subsidiaries, if any, as at the end of such fiscal year, and
audited consolidated statements of income and cash flows of the Company and its subsidiaries, if any, for such year, prepared in accordance with 

  
 -14- 

 
U.S. generally accepted accounting principles consistently applied, certified by the Company’s Chief Financial Officer; 

(ii)       As soon as practicable after the end of each quarterly accounting periods in each fiscal year of the Company,
and in any event within forty five (45) days after the end of each quarterly accounting periods in each fiscal year of the Company, an unaudited consolidated balance sheet of the Company and its subsidiaries, if any, as of the end of each such
quarterly period, and unaudited consolidated statements of income and cash flows of the Company and its subsidiaries, if any, for such period, prepared in accordance with U.S. generally accepted accounting principles consistently applied, subject to
changes resulting from normal year-end audit adjustments; 
 (iii)       Beginning with the first full calendar month
after Closing, as soon as practicable after the end of each monthly accounting period thereafter, and in any event within thirty (30) days after the end of each such monthly accounting period, an unaudited consolidated balance sheet of the Company
and its subsidiaries, if any, as of the end of each such monthly period, and unaudited consolidated statements of income and cash flows of the Company and its subsidiaries, if any, for such period, prepared in accordance with U.S. generally accepted
accounting principles consistently applied, subject to changes resulting from normal year-end audit adjustments; 
 (iv)
      As soon as practicable, prior to the beginning of each fiscal year of the Company, and in any event within thirty (30) days prior to the beginning of each fiscal year of the Company, an annual budget and operating
plan for the coming fiscal year including monthly projected financial statements; and 
 (v)       Such other
information as may be reasonably requested by such Major Investor. 
 (b)
      Inspection. The Company shall permit each Major Investor, to visit and inspect the Company’s properties, to examine its books of account and records and to discuss
the Company’s affairs, finances and accounts with its officers, all upon reasonable advance notice and at such reasonable times during regular business hours as may be requested by such Major Investor (other than a Major Investor reasonably
deemed by the Company to be a competitor of the Company, provided, however, that each of Sapphire Ventures Fund I L.P., Toba Capital Fund II, LLC, Insight Venture Management, LLC and each Iconiq Investor shall not be deemed to be a competitor of the
Company). 
 3.2     Confidentiality. Each Holder acknowledges that the information received by them pursuant to this
Agreement may be confidential and for its use only, and it will not use any information that is in writing and marked as confidential in violation of the Exchange Act or reproduce, disclose or disseminate such information to any other person, except
in connection with the exercise of rights under this Agreement, unless the Company has made such information available to the public generally or such Holder is required to disclose such information by a governmental authority; provided,
however, that a Holder may disclose confidential information (i) to its attorneys, accountants, consultants, and other professionals to the extent necessary to obtain their services in connection with monitoring its investment in the Company;
(ii) to any prospective purchaser of any Registrable Securities from such Holder, if such prospective purchaser agrees in writing to be bound by the provisions of this Section 3.2; or (iii) to any existing or prospective investor, affiliate,
partner, member, stockholder, or wholly owned subsidiary of such Holder in the ordinary course of business, provided that such Holder informs such person that such information is confidential and directs such person to maintain the
confidentiality of such information, and such person agrees in writing to be bound by the provisions of this Section 3.2. 

  
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 3.3       D&O Insurance; Key Man Insurance. The Company will
obtain and maintain a Directors and Officers Insurance policy upon terms satisfactory to the Investors and in an amount customary for the Company’s industry but with coverage of no less than $1,000,000 (or such higher amount as approved by the
Board of Directors). Each member of the Company’s Board of Directors shall be provided with Directors and Officers Insurance as set forth above. The Company will maintain key-man insurance with $1,000,000 coverage covering Dean Stoecker. 

3.4       Indemnification Agreements. The Company will enter into a form of indemnification agreement reasonably
satisfactory to the Investors that indemnifies each of the directors serving on the Company’s Board of Directors. 
 3.5
      Proprietary Information and Inventions Agreement. The Company shall require that all employees, officers and consultants to execute and deliver a Proprietary Information and Inventions Agreement substantially
in a form and substance acceptable to the Investors and approved by the Company’s Board of Directors, containing standard provisions with respect to confidentiality, corporate ownership of inventions and innovations and non-competition and
non-solicitation covenants. 
 3.6       Compensation Committee. The Board of Directors of the Company shall
establish and maintain a compensation committee and each of the Series A Designees and Series B Designee shall be entitled to be a member of the compensation committee. 

3.7       Notification. The Company shall provide prompt written notice to each of its members of the Board of
Directors of the initiation of any legal action or proceeding against the Company or any material adverse claim, dispute or other development. 

3.8       Right to Conduct Activities. The Company hereby agrees and acknowledges that each of Sapphire Ventures
Fund I, L.P., Toba Capital Fund II, LLC, any Insight Investor and each Iconiq Investor is a professional investment fund, and as such invests in numerous portfolio companies, some of which may be deemed competitive with the Company’s business
(as currently conducted or as currently proposed to be conducted). The Company hereby agrees that, to the extent permitted under applicable law, each such Investor shall not be prohibited from competing with the Company; provided, however, that the
foregoing shall not relieve (x) any of the Investors from liability associated with the unauthorized disclosure of the Company’s confidential information obtained pursuant to this Agreement, or (y) any director (including the Series A Designees
and the Series B Designee) or officer of the Company from any liability associated with his or her fiduciary duties to the Company. 
 3.1
      Amendment of Agreement. Promptly after Closing, the Company shall (a) use its commercially reasonable efforts to enter into an amendment to its license agreement with Belk (the “Belk Agreement”) in
order to (i) revise the triggering events for release of source code from escrow to include only those listed in the Company’s source code escrow agreement with Iron Mountain, and (ii) limit Belk’s use of any Company source code after any
release from escrow solely to support and maintain Company software for the remainder of the term of the license of any Company software licenses and (b) if the Company does not amend the Belk Agreement as provided in clause (a) of Section 3.8 prior
to the expiration of the term of Belk Agreement, terminate and not renew the Belk Agreement. 
 3.9       Termination
of Covenants. Except for the covenants set forth in Section 3.2, the covenants set forth in Section 3 shall terminate and be of no further force and effect after the closing of the Company’s Initial Public Offering or a Liquidation
Transaction (as defined under the Company’s Fourth Amended and Restated Certificate of Incorporation, as may be further amended and/or restated from time to time, the “Restated Certificate”) in which the consideration
received by the stockholders of the Company is all cash or freely-tradeable securities. 

  
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 SECTION †4 RIGHT OF FIRST REFUSAL 

4.1       Right of First Refusal to Significant Stockholders. The Company hereby grants to each Significant
Stockholder, the right of first refusal to purchase its pro rata share of New Securities (as defined in this Section 4.1(a) which the Company may, from time to time, propose to sell and issue after the date of this Agreement. A Significant
Stockholder’s pro rata share, for purposes of this right of first refusal, is equal to the ratio of (a) the number of shares of Common Stock owned by such Significant Stockholder immediately prior to the issuance of New Securities (as
defined below) (assuming full conversion of the Shares owned by such Significant Stockholder) to (b) the total number of shares of Common Stock outstanding immediately prior to the issuance of New Securities (assuming full conversion and exercise of
all convertible and exercisable securities of the Company and including shares of Common Stock issuable to employees, consultants or directors pursuant to a stock option plan, restricted stock plan, or other stock plan approved by the Board of
Directors). Each Significant Stockholder shall have a right of over-allotment such that if any Significant Stockholder fails to exercise its right hereunder to purchase its pro rata share of New Securities, the other Significant Stockholders
may purchase the non-purchasing Significant Stockholder’s portion on a pro rata basis. This right of first refusal shall be subject to the following provisions: 

 (a)       “New Securities” shall mean any capital stock (including Common Stock and/or
Preferred Stock) of the Company whether now authorized or not, and rights, convertible securities, options or warrants to purchase such capital stock, and securities of any type whatsoever that are, or may become, exercisable or convertible into
capital stock; provided that the term “New Securities” does not include: 
 (i)
      the Shares and the Conversion Stock; 
 (ii)       shares of Common Stock (or
options therefore) issued or issuable to officers, employees, directors, consultants, placement agents, and other service providers of the Company (or any subsidiary) pursuant to stock grants, option plans, purchase plans, agreements or other
employee stock incentive programs or arrangements approved by the Board of Directors of the Company, including options outstanding as of the date of this Agreement; 

(iii)       securities issued pursuant to the conversion or exercise of any outstanding convertible or exercisable
securities as of this date of this Agreement; 
 (iv)       securities offered pursuant to a bona fide, firmly
underwritten public offering pursuant to a registration statement filed under the Securities Act; 
 (v)
      securities issued pursuant to stock splits, stock dividends, or similar transactions; 
 (vi)
      securities of the Company which are otherwise excluded by the affirmative consent of, in the case of the Series C Preferred Stock, the Requisite Series C Holders (as defined in the Restated Certificate), and the
case of the Series A and Series B Preferred Stock, the holders of a majority of outstanding shares of each such series of Preferred Stock; and 

(vii)       any right, option or warrant to acquire any security convertible into the securities excluded from the
definition of New Securities pursuant to subsections (i) through (vi) above. 
  (b)       In the event the
Company proposes to undertake an issuance of New Securities, it shall give each Significant Stockholder written notice of its intention, describing the type of New Securities, and their price and the general terms upon which the Company proposes to
issue the same. Each Significant Stockholder shall have fifteen (15) days after any such notice is mailed or delivered to agree to purchase such 

  
 -17- 

 
Holder’s pro rata share of such New Securities and to indicate whether such Holder desires to exercise its over-allotment option for the price and upon the terms specified in the
notice by giving written notice to the Company, in substantially the form attached as Schedule 1, and stating therein the quantity of New Securities to be purchased. 

    (c)       In the event the Holders fail to exercise fully the right of first refusal and
over-allotment rights, if any, within said fifteen (15) day period (the “Election Period”), the Company shall have ninety (90) days thereafter to sell or enter into an agreement (pursuant to which the sale of New Securities
covered thereby shall be closed, if at all, within ninety (90) days from the date of said agreement) to sell that portion of the New Securities with respect to which the Significant Stockholders’ right of first refusal option set forth in this
Section 4.1 was not exercised, at a price and upon terms no more favorable to the purchasers thereof than specified in the Company’s notice to Significant Stockholders delivered pursuant to Section 4.1(b). In the event the Company has not sold
within such ninety (90) day period following the Election Period, or such ninety (90) day period following the date of said agreement, the Company shall not thereafter issue or sell any New Securities, without first again offering such securities to
the Significant Stockholders in the manner provided in this Section 4.1. 
     (d)       The right
of first refusal granted under this Agreement shall expire upon, and shall not be applicable to, the Company’s Qualified Public Offering (as defined in the Restated Certificate). 

SECTION †5 MISCELLANEOUS 
 5.1
      Amendment. Except as expressly provided herein, neither this Agreement nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument referencing this Agreement and
signed by each of (a) the Company, (b) the Requisite Series C Holders (as defined in the Company’s Certificate of Incorporation), (c) the holders of a majority of outstanding Series A Preferred Stock, (d) the holders of a majority of
outstanding Series B Preferred Stock ) and (e) the Principal Stockholders holding at least fifty percent (50%) of the Common Stock held by all of the Principal Stockholders, provided, that no amendment or waiver of this Agreement that by its terms
treats any Principal Stockholder adversely and in a manner different from the manner in which such amendment or waiver treats any other Principal Stockholder shall be effective without the prior written consent of the adversely and differently
treated Principal Stockholder and provided, further, that no amendment or waiver of this Agreement that by its terms treats any Investor adversely and in a manner different from the manner in which such amendment or waiver
treats any other party hereto shall be effective without the prior written consent of such Investor. The Company shall give prompt notice of any amendment or termination hereof or waiver hereunder to any party hereto that did not consent in writing
to such amendment, termination, or waiver. Any such amendment, waiver, discharge or termination effected in accordance with this paragraph shall be binding upon each Holder, each Principal Stockholder and each future holder of shares of Preferred
Stock or Common Stock with rights or obligations under this Agreement. Each Principal Stockholder acknowledges that by the operation of this paragraph, the Principal Stockholders holding a majority of the Common Stock held by all of the Principal
Stockholders will have the right and power to diminish or eliminate all rights of such Principal Stockholder under this Agreement. 
 5.2
      Notices. All notices and other communications required or permitted hereunder shall be in writing and shall be mailed by registered or certified mail, postage prepaid, sent by facsimile or electronic mail (if
to an Investor or Holder) or otherwise delivered by hand, messenger or courier service addressed: 
     (a)
      if to an Investor, to the Investor’s respective address, facsimile number or electronic mail address as shown on the signature page hereto, as may be updated in accordance with the provisions hereof; 

  
 -18- 

     (b)       if to a Principal Stockholder, to the
applicable address shown on Exhibit A of this Agreement,; or 
     (c)       if to the
Company, to the attention of the Chief Executive Officer or Chief Financial Officer of the Company at 230 Commerce, Irvine, CA 92602, or at such other current address as the Company shall have furnished to the Investor, with a copy to the General
Counsel at the same address. 
 Each such notice or other communication shall for all purposes of this Agreement be treated as effective or having
been given (i) if delivered by hand, messenger or courier service, when delivered (or if sent via a nationally-recognized overnight courier service, freight prepaid, specifying next-business-day delivery, one business day after deposit with the
courier), or (ii) if sent via mail, at the earlier of its receipt or five days after the same has been deposited in a regularly-maintained receptacle for the deposit of the United States mail, addressed and mailed as aforesaid, or (iii) if sent via
facsimile, upon confirmation of facsimile transfer or, if sent via electronic mail, upon confirmation of delivery when directed to the relevant electronic mail address, if sent during normal business hours of the recipient, or if not sent during
normal business hours of the recipient, then on the recipient’s next business day. In the event of any conflict between the Company’s books and records and this Agreement or any notice delivered hereunder, the Company’s books and
records will control absent fraud or error. 
 5.3       Governing Law. This Agreement shall be governed in all
respects by the internal laws of the State of Delaware as applied to agreements entered into among Delaware residents to be performed entirely within Delaware, without regard to principles of conflicts of law. 

5.4       Successors and Assigns. This Agreement, and any and all rights, duties and obligations hereunder, shall
not be assigned, transferred, delegated or sublicensed by any party to this Agreement without the prior written consent of the Investors and the Company, which consent shall not be unreasonably withheld, delayed or denied. Subject to the foregoing
and except as otherwise provided herein, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto. Notwithstanding the foregoing, it is
expressly agreed and understood that the Investors may assign any and all of its rights and obligations under this Agreement to a transferee of the Shares so long as (i) the transferee is an Affiliate of such Investor, (ii) the transferee is not a
competitor of the Company, and (iii) the transferee agrees in writing to be bound to the terms hereof. 
 5.5
      Entire Agreement. This Agreement and the exhibits hereto constitute the full and entire understanding and agreement between the parties with regard to the subjects hereof. No party hereto shall be liable or
bound to any other party in any manner with regard to the subjects hereof or thereof by any warranties, representations or covenants except as specifically set forth herein. 

5.6       Delays or Omissions. Except as expressly provided herein, no delay or omission to exercise any right,
power or remedy accruing to any party to this Agreement upon any breach or default of any other party under this Agreement shall impair any such right, power or remedy of such non-defaulting party, nor shall it be construed to be a waiver of any
such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring, nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter
occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in
writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any party to this Agreement, shall be cumulative and not alternative. 

  
 -19- 

 5.7        Severability. If any provision of this Agreement
becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, portions of such provision, or such provision in its entirety, to the extent necessary, shall be severed from this Agreement, and such court will
replace such illegal, void or unenforceable provision of this Agreement with a valid and enforceable provision that will achieve, to the extent possible, the same economic, business and other purposes of the illegal, void or unenforceable provision.
The balance of this Agreement shall be enforceable in accordance with its terms. 
 5.8        Titles and
Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. All references in this Agreement to sections, paragraphs and exhibits shall,
unless otherwise provided, refer to sections and paragraphs hereof and exhibits attached hereto. 
 5.9
       Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be enforceable against the parties that execute such counterparts, and all of which together shall
constitute one instrument. 
 5.10       Telecopy Execution and Delivery. A facsimile, telecopy or other
reproduction of this Agreement may be executed by one or more parties hereto and delivered by such party by facsimile or any similar electronic transmission device pursuant to which the signature of or on behalf of such party can be seen. Such
execution and delivery shall be considered valid, binding and effective for all purposes. At the request of any party hereto, all parties hereto agree to execute and deliver an original of this Agreement as well as any facsimile, telecopy or other
reproduction hereof. 
 5.11       Jurisdiction; Venue. With respect to any disputes arising out of or related to
this Agreement, the parties consent to the exclusive jurisdiction of, and venue in, the state courts in the State of Delaware (or in the event of exclusive federal jurisdiction, the federal courts located in Delaware). 

5.12       Further Assurances. Each party hereto agrees to execute and deliver, by the proper exercise of its
corporate, limited liability company, partnership or other powers, all such other and additional instruments and documents and do all such other acts and things as may be necessary to more fully effectuate this Agreement. 

5.13       Termination Upon Change of Control. Notwithstanding anything to the contrary herein, this Agreement
(excluding any then-existing obligations) shall terminate upon a Liquidation Transaction (as defined in the Restated Certificate). 
 5.14
      Conflict. In the event of any conflict between the terms of this Agreement and the Restated Certificate or the Company’s bylaws, the terms of the Restated Certificate or the Company’s bylaws, as the
case may be, will control. 
 5.15       Attorneys’ Fees. In the event that any suit or action is instituted
to enforce any provision in this Agreement, the prevailing party in such dispute shall be entitled to recover from the losing party such reasonable fees and expenses of attorneys and accountants, which shall include, without limitation, all fees,
costs and expenses of appeals. 
 5.16       Jury Trial. 

     (a)       EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING (WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATED TO THIS AGREEMENT. This paragraph shall not restrict a party from exercising

  
 -20- 

 
remedies under the Uniform Commercial Code or from exercising pre-judgment remedies under applicable law. 

5.17       Common Stock Valuation. As soon as reasonably possible, following the Closing, the Company shall
engage an independent firm to conduct a valuation of the Company in accordance with Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations thereunder so as to determine the fair market value of the Company’s common
stock. 
 5.18       Aggregation of Stock. All shares of capital stock held or acquired by
Affiliates or funds or investment vehicles controlled, managed or advised by Affiliates shall be aggregated together for the purpose of determining the availability of any rights under this Agreement and such Affiliated Persons may apportion such
rights as among themselves in any manner they deem appropriate. 
 (signature page follows) 

  
 -21- 

 The parties are signing this Second Amended and Restated Investors’ Rights Agreement as of the date
stated in the introductory clause. 
  

			
	 ALTERYX, INC.,
 a Delaware
corporation

		
	By:	 	/s/ Gary Acord
		 	  

		 	Gary Acord, Chief Financial Officer

  
  

  
 Signature Page to Alteryx,
Inc. 
 Second Amended and Restated Investors Rights Agreement 

 The parties are signing this Second Amended and Restated Investors’ Rights Agreement as of the date
stated in the introductory clause. 
  

					
	INVESTORS:
	
	ICONIQ STRATEGIC PARTNERS II, L.P.
		
	By:	 	 ICONIQ Strategic Partners II GP, L.P.,
 its General
Partner

	By:	 	 ICONIQ Strategic Partners II TT GP, Ltd.,
 its General
Partner

		
	By:	 	/s/ Kevin Foster
		 	  

		 	Name:	 	Kevin Foster
		 	Title:	 	Authorized Person
	
	ICONIQ STRATEGIC PARTNERS II-B, L.P.
		
	By:	 	 ICONIQ Strategic Partners II GP, L.P.,
 its General
Partner

	By:	 	 ICONIQ Strategic Partners II TT GP, Ltd.,
 its General
Partner

		
	By:	 	/s/ Kevin Foster
		 	  

		 	Name:	 	Kevin Foster
		 	Title:	 	Authorized Person

 [Signature page to the Alteryx, Inc. Second Amended and Restated Investors Rights Agreement] 

 The parties are signing this Second Amended and Restated Investors’ Rights Agreement as of the date
staled in the introductory clause. 
  

			
	INVESTORS:
	
	INSIGHT VENTURE PARTNERS VIII, L.P.
	
	By: Insight Venture Associates VIII, L.P., its general partner
	
	By: Insight Venture Associates VIII, Ltd., its general partner
		
	By:	 	/s/ Blair M. Flicker
		 	  

	Name:	 	 Blair M. Flicker

	Title:	 	 Authorized Officer

 
			
		
	Address:	 	 1114 Avenue of the Americas

New York, NY 10036
 Attn: Blair
Flicker

 
			
	
	INSIGHT VENTURE PARTNERS (CAYMAN) VIII, L.P.
	
	By: Insight Venture Associates VIII, L.P., its general partner
	
	By: Insight Venture Associates VIII, Ltd., its general partner
		
	By:	 	/s/ Blair M. Flicker
		 	  

	Name:	 	 Blair M. Flicker

	Title:	 	 Authorized Officer

 
			
		
	Address:	 	 1114 Avenue of the Americas

New York, NY 10036
 Attn: Blair
Flicker

  
 Signature Page to Alteryx,
Inc. 
 Second Amended and Restated Investors Rights Agreement 

 The parties are signing this Second Amended and Restated Investors’ Rights Agreement as of the date
stated in the introductory clause. 
  

			
	INVESTORS:
	
	INSIGHT VENTURE PARTNERS VIII (CO- INVESTORS), L.P.
	
	By: Insight Venture Associates VIII, L.P., its general partner
	
	By: Insight Venture Associates VIII, Ltd., its general partner
		
	By:	 	/s/ Blair M. Flicker
		 	  

	Name:	 	 Blair M. Flicker

	Title:	 	 Authorized Officer

 
			
		
	Address:	 	 1114 Avenue of the Americas

New York, NY 10036
 Attn: Blair
Flicker

 
			
	
	INSIGHT VENTURE PARTNERS (DELAWARE) VIII, L.P.
	
	By: Insight Venture Associates VIII, L.P., its general partner
	
	By: Insight Venture Associates VIII, Ltd., its general partner
		
	By:	 	/s/ Blair M. Flicker
		 	  

	Name:	 	 Blair M. Flicker

	Title:	 	 Authorized Officer

 
			
		
	Address:	 	 1114 Avenue of the Americas

New York, NY 10036
 Attn: Blair
Flicker

  
 Signature Page to Alteryx,
Inc. 
 Second Amended and Restated Investors Rights Agreement 

 The parties are signing this Second Amended and Restated Investors’ Rights Agreement as of the date
stated in the introductory clause. 
  

			
	INVESTORS:
	
	INSIGHT VENTURE PARTNERS COINVESTMENT FUND III, L.P.
	
	By: Insight Venture Associates Coinvestment III, L.P., its general partner
	
	By: Insight Venture Associates Coinvestment III, Ltd., its general partner
		
	By:	 	/s/ Blair M. Flicker
		 	  

	Name:	 	 Blair M. Flicker

	Title:	 	 Authorized Officer

 
			
		
	Address:	 	 1114 Avenue of the Americas

New York, NY 10036
 Attn: Blair
Flicker

 
			
	
	INSIGHT VENTURE PARTNERS COINVESTMENT FUND (DELAWARE) III, L.P.
	
	By: Insight Venture Associates Coinvestment III, L.P., its general partner
	
	By: Insight Venture Associates Coinvestment III, Ltd., its general partner
		
	By:	 	/s/ Blair M. Flicker
		 	  

	Name:	 	 Blair M. Flicker

	Title:	 	 Authorized Officer

 
			
		
	Address:	 	 1114 Avenue of the Americas

New York, NY 10036
 Attn: Blair
Flicker

  
 Signature Page to Alteryx,
Inc. 
 Second Amended and Restated Investors Rights Agreement 

 The parties are signing this Second Amended and Restated Investors’ Rights Agreement as of the date
stated in the introductory clause. 
  

			
	INVESTORS:
	
	SAPPHIRE VENTURES FUND I, L.P.
		
	By:	 	 SAPPHIRE VENTURES (GPE) I, LLC,
 its General Partner

		
	By:	 	/s/ Nino Marakovic
		 	  

	Name:	 	 Nino Marakovic

	Title:	 	 Managing Member

		
	By:	 	 SAPPHIRE VENTURES (GPE) I, LLC,
 its General Partner

		
	By:	 	/s/ Jayendra Das
		 	  

	Name:	 	 Jayendra Das

	Title:	 	 Managing Member

 
			
		
	Address:	 	 3408 Hillview Avenue
 Palo
Alto,, CA 94304

  
 Signature Page to Alteryx,
Inc. 
 Second Amended and Restated Investors Rights Agreement 

 The parties are signing this Second Amended and Restated Investors’ Rights Agreement as of the date
stated in the introductory clause. 
  

			
	INVESTORS:
	
	MERITECH CAPITAL PARTNERS V L.P.
		
	By:	 	 Meritech Capital Associates V L.L.C
 its General
Partner

		
	By:	 	/s/ Rob Ward
		 	  

		 	Rob Ward, a managing member
	
	MERITECH CAPITAL AFFILIATES V L.P.
		
	By:	 	 Meritech Capital Associates V L.L.C
 its General
Partner

		
	By:	 	/s/ Rob Ward
		 	  

		 	Rob Ward, a managing member

  
 Signature Page to Alteryx,
Inc. 
 Second Amended and Restated Investors Rights Agreement 

 The parties are signing this Second Amended and Restated Investors’ Rights Agreement as of the date
stated in the introductory clause. 
  

			
	INVESTORS:
	
	TOBA CAPITAL FUND II, LLC
	By:	 	 TOBA CAPITAL FUND II SERIES, LLC
 Its Managing Member

		
	By:	 	Toba Capital Management, LLC
	Its:	 	Manager
		
	By:	 	/s/ Vincent C. Smith
		
	Name:	 	Vincent C. Smith
	Title:	 	Managing Member
	
	TEACH A MAN TO FISH FOUNDATION
		
	By:	 	/s/ Vincent C. Smith
		
	Name:	 	Vincent Smith
	Title:	 	President

  
 Signature Page to Alteryx,
Inc. 
 Second Amended and Restated Investors Rights Agreement 

 The parties are signing this Second Amended and Restated Investors’ Rights Agreement as of the date
stated in the introductory clause. 
  

	
	PRINCIPAL STOCKHOLDERS:
	
	/s/ Edward Harding
	Edward “Ned” Harding

  
 Signature Page to Alteryx,
Inc. 
 Second Amended and Restated Investors Rights Agreement 

 The parties are signing this Second Amended and Restated Investors’ Rights Agreement as of the date
stated in the introductory clause. 
  

			
	PRINCIPAL STOCKHOLDERS:
	
	DBRA, Limited Partnership, a California limited partnership
		
	By:	 	/s/ Dean A. Stoecker
		 	Dean A. Stoecker, General Partner

  
 Signature Page to Alteryx,
Inc. 
 Second Amended and Restated Investors Rights Agreement 

 The parties are signing this Second Amended and Restated Investors’ Rights Agreement as of the date
stated in the introductory clause. 
  

	
	PRINCIPAL STOCKHOLDERS:
	
	/s/ Olivia Duane Adams
	Olivia Duane Adams

  

  
 Signature Page to Alteryx,
Inc. 
 Second Amended and Restated Investors Rights Agreement 

 The parties are signing this Second Amended and Restated Investors’ Rights Agreement as of the date
stated in the introductory clause. 
  

			
	PRINCIPAL STOCKHOLDERS:
	
	Thomson Reuters Organization LLC, a Florida limited liability company (formerly Thomson Reuters Organization Corp.)
		
	By:	 	/s/ John Bellizzi
		 	John Bellizzi, Vice President

  
 Signature Page to Alteryx,
Inc. 
 Second Amended and Restated Investors Rights Agreement 

 EXHIBIT A-1 

PRINCIPAL STOCKHOLDERS 
 Edward “Ned” Harding 

[Address] 
 Olivia Duane Adams 

[Address] 
 DBRA, Limited Partnership 

[Address] 
 Thomson Reuters Organization LLC 

[Address] 

 EXHIBIT A-2 

FUNDS AFFILIATED WITH INSIGHT VENTURE MANAGEMENT 
 Insight
Venture Partners VIII, L.P. 
 Insight Venture Partners (Cayman) VIII, L.P. 

Insight Venture Partners VIII (Co-Investors), L.P. 
 Insight Venture Partners
(Delaware) VIII, L.P. 
 Insight Venture Partners Coinvestment Fund III, L.P. 

Insight Venture Partners Coinvestment Fund (Delaware) III, L.P. 

 Exhibit A-3 

ICONIQ INVESTORS 
 Iconiq Strategic Partners II, L.P. 

Iconiq Strategic Partners II-B, L.P 

 SCHEDULE 1 

NOTICE AND WAIVER/ELECTION OF 
 RIGHT OF
FIRST REFUSAL 
 I do hereby waive or exercise, as indicated below, my rights of first refusal under the Second Amended and Restated
Investors’ Rights Agreement dated as of September       , 2015 (the “Agreement”): 
 1.
Waiver of [      ] days’ notice period in which to exercise right of first refusal: (please check only one) 
  

	 	(    )	WAIVE in full, on behalf of all Holders, the [      ]-day notice period provided to exercise my right of first refusal granted under the Agreement. 

 

	 	(    )	DO NOT WAIVE the notice period described above. 

 2. Issuance and Sale of New Securities: (please check only one)

  

	 	(    )	WAIVE in full the right of first refusal granted under the Agreement with respect to the issuance of the New Securities. 

  

	 	(    )	ELECT TO PARTICIPATE in $                   (please provide amount) in New Securities proposed to be issued
by Alteryx, Inc., a Delaware corporation, representing LESS than my pro rata portion of the aggregate of $[            ] in New Securities being offered in the financing.

  

	 	(    )	ELECT TO PARTICIPATE in $                   in New Securities proposed to be issued by Alteryx, Inc., a Delaware
corporation, representing my FULL pro rata portion of the aggregate of $[            ] in New Securities being offered in the financing. 

 

	 	(    )	ELECT TO PARTICIPATE in my full pro rata portion of the aggregate of $[            ] in New Securities being made available in the
financing AND, to the extent available, the greater of (x) an additional $             (please provide amount) or (y) my pro rata portion of any remaining investment
amount available in the event other Significant Stockholders do not exercise their full rights of first refusal with respect to the $[            ] in New Securities being offered in
the financing. 

  

			
	Date:	 	  

  

	
	  

	(Print investor name)
	
	  

	(Signature)
	
	  

	(Print name of signatory, if signing for an entity)
	
	  

	(Print title of signatory, if signing for an entity)

 This is neither a commitment to purchase nor a commitment to issue the New Securities described above. Such issuance
can only be made by way of definitive documentation related to such issuance. Alteryx, Inc. will supply you with such definitive documentation upon request or if you indicate that you would like to exercise your first offer rights in whole or in
part. 

 AGREEMENT TO WAIVE CERTAIN RIGHTS UNDER AND AMEND THE SECOND AMENDED AND RESTATED INVESTORS’ RIGHTS
AGREEMENT 
 This Agreement to Waive Certain Rights Under and Amend the Second Amended and Restated Investors’ Rights Agreement (this
“Waiver and Amendment Agreement”) is entered into as of August 21, 2017 by the undersigned parties to that certain Second Amended and Restated Investors’ Rights Agreement, dated as of September 24, 2015 (the
“Rights Agreement”), by and among Alteryx, Inc., a Delaware corporation (the “Company”), the Investors and the Principal Stockholders. Capitalized terms used but not defined herein shall have the meanings ascribed
to them in the Rights Agreement. 
 RECITALS 

A.    WHEREAS, the Company is planning an underwritten public offering of the Company’s Class A common stock (the
“Public Offering”) pursuant to a Registration Statement on Form S-1 to be filed with the Securities and Exchange Commission on or around September 5, 2017, as may be amended. 

B.    WHEREAS, in connection with the Public Offering, and as an inducement for the Company and Goldman Sachs & Co. LLC and
J.P. Morgan Securities LLC, as the representatives of the several underwriters that are underwriting the Public Offering (the “Representatives”), to continue their efforts in connection with the Public Offering, the undersigned
Significant Stockholders shall enter into this Waiver and Amendment Agreement. 
 C.    WHEREAS, the Company’s Board of
Directors has determined it is in the best interests of the Company and its stockholders for the Significant Stockholders to amend and waive certain of the provisions in the Rights Agreement with respect to registration rights and to amend certain
other provisions in the Rights Agreement. 
 D.    WHEREAS, the undersigned Significant Stockholders desire to waive, on behalf of
themselves and all other Significant Stockholders, all registration rights with respect to the Public Offering, including, without limitation, the registration rights provided in Section 2.2 of the Rights Agreement, and any related notice
rights, and to amend the Rights Agreement all as set forth below. 
 NOW, THEREFORE, in consideration of the foregoing recitals and for other good and
valuable consideration, the adequacy and sufficiency of which are hereby acknowledged, the undersigned hereby agree as follows: 

1.    Incorporation of Recitals. Each of the above recitals is incorporated herein by reference. 

2.    Amendment to Section 2.14 and Section 5.1 of the Rights Agreement. 

2.1    Section 2.14 of the Rights Agreement is hereby amended and restated in its entirety to state the following: 

 “2.14 Termination of Registration Rights. The right of any Holder to request registration or
inclusion in any registration pursuant to Section 2.1, 2.2. or 2.3 shall terminate on the earlier of (a) March 29, 2022 and (b) such time as all of such Holder’s Registrable Securities could be sold without any restriction
on volume or manner of sale in any three-month period under Rule 144 or any successor.” 
 2.2    Section 5.1 of the
Rights Agreement is hereby amended and restated in its entirety to state the following: 
 “5.1 Amendment. Except as expressly provided
herein, neither this Agreement nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument referencing this Agreement and signed by each of (a) the Company, (b) the holders of a majority of the
Registrable Securities then outstanding and held by the Investors who continue to have rights to request registration or inclusion in any registration pursuant to Section 2.1, 2.2 or 2.3, and (c) the holders of a majority of the
Registrable Securities then outstanding and held by the Principal Stockholders who are still providing services to the Company as a director, officer or employee, provided, that no amendment or waiver of this Agreement that by its terms
treats any Principal Stockholder adversely and in a manner different from the manner in which such amendment or waiver treats any other Principal Stockholder shall be effective without the prior written consent of the adversely and differently
treated Principal Stockholder and provided, further, that no amendment or waiver of this Agreement that by its terms treats any Investor adversely and in a manner different from the manner in which such amendment or waiver treats any other
party hereto shall be effective without the prior written consent of such Investor. The Company shall give prompt notice of any amendment or termination hereof or waiver hereunder to any holder of Registrable Securities then outstanding as of the
date of such amendment, termination or waiver that did not consent in writing to such amendment, termination, or waiver. Any such amendment, waiver, discharge or termination effected in accordance with this paragraph shall be binding upon each
Holder and each Principal Stockholder. The Principal Stockholders holding a majority of the Registrable Securities then outstanding and held by the Principal Stockholders who are still providing services to the Company as a director, officer or
employee shall have the right and power to diminish or eliminate all rights of Principal Stockholders under this Agreement.” 

3.    Waiver of Certain Registration Rights. The undersigned parties hereby waive on behalf of themselves and all other
Significant Stockholders, all registration rights with respect to the Public Offering, including, without limitation, the registration rights provided in Section 2.2 of the Rights Agreement, and any related notice rights. 

4.    Full Force and Effect. Except as expressly modified herein, the Rights Agreement shall remain in full force and effect.

 5.    Applicability of Waiver. The undersigned parties understand and acknowledge that by executing this Waiver and
Amendment Agreement, the waivers set forth in Section 3 herein shall be effective and binding on the undersigned parties, each holder of any Registrable Securities, each future holder of all such Registrable Securities, and the Company. 

 6.    Assignability of Waiver. The waiver set forth in Section 3 herein is
assignable by the Company and is expressly for the benefit of the Representatives. The undersigned understands that the Company and the Representatives are relying upon this Waiver and Amendment Agreement. 

7.    Waiver Expiration. The waivers set forth in Section 3 herein shall expire upon the earliest to occur, if any, of
(i) the date the Company advises the Representatives, in writing, prior to the execution of an underwriting agreement (the “Underwriting Agreement”) providing for the Public Offering, that it has determined not to proceed with
the Public Offering, (ii) the date of the termination of the Underwriting Agreement if prior to the closing of the Public Offering or (iii) September 20, 2017 if the Underwriting Agreement has not been executed and delivered by the
Company by such date. 
 8.    Governing Law. This Waiver and Amendment Agreement shall be governed in all respects by the
internal laws of the State of Delaware as applied to agreements entered into among Delaware residents to be performed entirely within Delaware, without regard to principles of conflicts of law. 

9.    Counterparts. This Waiver and Amendment Agreement may be executed in counterparts, delivered by facsimile or portable
document format (.pdf or similar format), each of which will constitute an original and all of which together will constitute one agreement. 

10.    Miscellaneous. Except as expressly set forth herein, this Waiver and Amendment Agreement shall not apply to any other
provisions of the Rights Agreement. 
 [Signature Pages to Follow] 
  

 The parties are signing this Waiver and Amendment Agreement as of the date stated in the introductory
clause. 
  

			
	COMPANY:
	
	ALTERYX, INC.
		
	By:	 	    /s/ Dean Stoecker
		 	Dean Stoecker, Chief Executive Officer

  

			
	Address:	 	3345 Michelson Drive, Suite 400
		 	Irvine, California 92612

 SIGNATURE PAGE TO WAIVER AND AMENDMENT AGREEMENT 

 The parties are signing this Waiver and Amendment Agreement as of the date stated in the introductory
clause. 
  

			
	SIGNIFICANT STOCKHOLDER:
		
	By:	 	    /s/ Edward “Ned” Harding
		 	Edward “Ned” Harding

 SIGNATURE PAGE TO WAIVER AND AMENDMENT AGREEMENT 

 The parties are signing this Waiver and Amendment Agreement as of the date stated in the introductory
clause. 
  

			
	SIGNIFICANT STOCKHOLDER:
		
	By:	 	    /s/ Olivia Duane Adams
		 	Olivia Duane Adams

 SIGNATURE PAGE TO WAIVER AND AMENDMENT AGREEMENT 

 The parties are signing this Waiver and Amendment Agreement as of the date stated in the introductory
clause. 
  

			
	SIGNIFICANT STOCKHOLDER:
	
	DBRA, Limited Partnership, a California limited partnership
		
	By:	 	    /s/ Dean A. Stoecker
		 	Dean A. Stoecker, General Partner

 SIGNATURE PAGE TO WAIVER AND AMENDMENT AGREEMENT 

 The parties are signing this Waiver and Amendment Agreement as of the date stated in the introductory
clause. 
  

			
	SIGNIFICANT STOCKHOLDER:
	
	Thomson Reuters U.S. LLC (successor-in-interest to Thomson Reuters Organization LLC)
		
	By:	 	    /s/ John Bellizzi
		 	John Bellizzi, Vice President

 SIGNATURE PAGE TO WAIVER AND AMENDMENT AGREEMENT 

 The parties are signing this Waiver and Amendment Agreement as of the date stated in the introductory
clause. 
  

			
	SIGNIFICANT STOCKHOLDER:
	
	SAPPHIRE VENTURES FUND I, L.P.
		
	By:	 	SAPPHIRE VENTURES (GPE) I, LLC,
		 	Its General Partner
		
	By:	 	/s/ Nino Marakovic
		
	Name:	 	Nino Marakovic
		
	Title:	 	Managing Member
		
	By:	 	SAPPHIRE VENTURES (GPE) I, LLC,
		 	Its General Partner
		
	By:	 	/s/ R. Douglas Higgins
		
	Name:	 	R. Douglas Higgins
		
	Title:	 	Managing Member

 SIGNATURE PAGE TO WAIVER AND AMENDMENT AGREEMENT 

 The parties are signing this Waiver and Amendment Agreement as of the date stated in the introductory
clause. 
  

			
	SIGNIFICANT STOCKHOLDER:
	
	INSIGHT VENTURE PARTNERS VIII, L.P.
	
	By: Insight Venture Associates VIII, L.P., its general partner
	
	By: Insight Venture Associates VIII, Ltd., its general partner
		
	By:	 	/s/ Eric Goldstein
		
	Name:	 	Eric Goldstein
		
	Title:	 	Attorney-in-Fact

 
			
	Address:	 	 1114 Avenue of the Americas
 New York, NY 10036

Attn: Blair Flicker

 
			
	
	INSIGHT VENTURE PARTNERS (CAYMAN) VIII, L.P.
	
	By: Insight Venture Associates VIII, L.P., its general partner
	
	By: Insight Venture Associates VIII, Ltd., its general partner
		
	By:	 	/s/ Eric Goldstein
		
	Name:	 	Eric Goldstein
		
	Title:	 	Attorney-in-Fact

 
			
	Address:	 	 1114 Avenue of the Americas
 New York, NY 10036

Attn: Blair Flicker

 SIGNATURE PAGE TO WAIVER AND AMENDMENT AGREEMENT 

 The parties are signing this Waiver and Amendment Agreement as of the date stated in the introductory
clause. 
  

			
	SIGNIFICANT STOCKHOLDER:
	
	 INSIGHT VENTURE PARTNERS VIII
 (CO-INVESTORS), L.P.

	
	By: Insight Venture Associates VIII, L.P., its general partner
	
	By: Insight Venture Associates VIII, Ltd., its general partner
		
	By:	 	/s/ Eric Goldstein
		
	Name:	 	Eric Goldstein
		
	Title:	 	Attorney-in-Fact

 
			
		
	Address:	 	 1114 Avenue of the Americas
 New York, NY 10036

Attn: Blair Flicker

 
			
	
	INSIGHT VENTURE PARTNERS (DELAWARE) VIII, L.P.
	
	By: Insight Venture Associates VIII, L.P., its general partner
	
	By: Insight Venture Associates VIII, Ltd., its general partner
		
	By:	 	/s/ Eric Goldstein
		
	Name:	 	Eric Goldstein
		
	Title:	 	Attorney-in-Fact

 
			
		
	Address:	 	 1114 Avenue of the Americas
 New York, NY 10036

Attn: Blair Flicker

 SIGNATURE PAGE TO WAIVER AND AMENDMENT AGREEMENT 

 The parties are signing this Waiver and Amendment Agreement as of the date stated in the introductory
clause. 
  

			
	SIGNIFICANT STOCKHOLDER:
	
	INSIGHT VENTURE PARTNERS COINVESTMENT FUND III, L.P.
	
	By: Insight Venture Associates Coinvestment III, L.P., its general partner
	
	By: Insight Venture Associates Coinvestment III, Ltd., its general partner
		
	By:	 	/s/ Eric Goldstein
		
	Name:	 	Eric Goldstein
		
	Title:	 	Attorney-in-Fact

 
			
		
	Address:	 	 1114 Avenue of the Americas
 New York, NY 10036

Attn: Blair Flicker

 
			
	
	INSIGHT VENTURE PARTNERS COINVESTMENT FUND (DELAWARE) III, L.P.
	
	By: Insight Venture Associates Coinvestment III, L.P., its general partner
	
	By: Insight Venture Associates Coinvestment III, Ltd., its general partner
		
	By:	 	/s/ Eric Goldstein
		
	Name:	 	Eric Goldstein
		
	Title:	 	Attorney-in-Fact

 
			
		
	Address:	 	 1114 Avenue of the Americas
 New York, NY 10036

Attn: Blair Flicker

  
  

SIGNATURE PAGE TO WAIVER AND AMENDMENT AGREEMENT 

 The parties are signing this Waiver and Amendment Agreement as of the date stated in the introductory
clause. 
  

			
	SIGNIFICANT STOCKHOLDER:
	
	ICONIQ STRATEGIC PARTNERS II, L.P.
	
	By: ICONIQ Strategic Partners II GP, L.P., its General Partner
	By: ICONIQ Strategic Partners II TT GP, Ltd., its General Partner
		
	By:	 	/s/ Gregory S. Stranger
		
	Name:	 	Gregory S. Stranger
		
	Title:	 	General Partner

 
			
	
	ICONIQ STRATEGIC PARTNERS II-B, L.P.
	
	By: ICONIQ Strategic Partners II GP, L.P., its General Partner
	By: ICONIQ Strategic Partners II TT GP, Ltd., its General Partner
		
	By:	 	/s/ Gregory S. Stranger
		
	Name:	 	Gregory S. Stranger
		
	Title:	 	General Partner

 
			
	
	 ICONIQ STRATEGIC PARTNERS II
 CO-INVEST, L.P.
AX SERIES,

	
	a Delaware series limited partnership
	By: ICONIQ Strategic Partners II GP, L.P., its General Partner
	By: ICONIQ Strategic Partners II TT GP, Ltd., its General Partner
		
	By:	 	/s/ Gregory S. Stranger
		
	Name:	 	Gregory S. Stranger
		
	Title:	 	General Partner

  
  

SIGNATURE PAGE TO WAIVER AND AMENDMENT AGREEMENTExhibit 10.1

 

EXECUTION VERSION

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement (this “Agreement”), dated August 29, 2017 (the “Effective Date”), is entered into by and between The Howard Hughes Corporation, a Delaware corporation (the “Company”), and David R. Weinreb (the “Executive”).

 

RECITALS

 

WHEREAS, the Company desires to employ the Executive upon and subject to the terms, conditions, rights and obligations set forth in this Agreement;

 

WHEREAS, the Executive desires to accept such employment upon and subject to the terms, conditions, rights and obligations set forth in this Agreement; and

 

WHEREAS, the parties desire to enter into and be bound by this Agreement.

 

NOW THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

 

1.                                      Employment Period.  The Company hereby agrees to employ the Executive, and the Executive hereby agrees to work in the employ of the Company, subject to the terms and conditions, rights and obligations of this Agreement, for the period commencing on the Effective Date and ending, unless terminated earlier pursuant to Section 3 hereof, on the tenth (10th) anniversary of the Effective Date (the “Employment Period”).  Thereafter, the Employment Period shall renew automatically for additional periods of one (1) year, unless either party provides the other party with written notice of non-renewal at least sixty (60) days prior to the date of automatic renewal.

 

2.                                      Terms of Employment.

 

(a)                                 Position and Duties.

 

(i)                                     During the Employment Period, the Executive shall serve as Chief Executive Officer (“CEO”) of the Company, with such authority, duties and responsibilities as are normally attendant to such position and such other duties commensurate with the position of CEO of the Company that may be reasonably assigned by the Company’s Board of Directors (the “Board”).  The Executive shall report solely and directly to the Board.  In addition, the Company shall nominate the Executive for election to the Board each year during the Employment Period.

 

(ii)                                  During the Employment Period, and excluding any periods of vacation and sick leave to which the Executive is entitled, the Executive agrees to devote all of his business attention and time to the business and affairs of the Company, and to use his reasonable best efforts to perform such responsibilities.  During the Employment Period, it shall not be a violation of this Agreement for the Executive to (A) consistent with Company governance policies, serve on corporate boards or committees of businesses that are not competitors of the Company, with prior written approval of the Board or an authorized committee thereof, (B) serve on civic or charitable boards or 

 

 

committees, (C) manage personal and family investments, and (D) engage in lectures or teaching, so long as any such activities referenced in Sections 3(a)(ii)(A)-(D) do not, individually or in the aggregate, interfere with the discharge of the Executive’s responsibilities pursuant to this Agreement; provided, however, for the avoidance of doubt, during the Employment Period, the Executive shall not hold any other management positions at other companies or any other entities.  Notwithstanding the foregoing, so long as such activities do not interfere with the Executive’s duties and responsibilities to the Company, the Executive shall be able to manage and oversee Executive’s existing assets and the existing assets and business of TPMC Realty Corporation and its Affiliates (as defined below) (“TPMC”), but shall not make any new investments on or after the Effective Date unless (1) such investments are passive investments that are not competitive with the Company and the Executive provides notice to the Company of such investments within ten (10) days following any such investment; or (2) the Executive obtains the prior written consent of the Company, which consent shall not be unreasonably withheld.  For purposes of this Agreement, the term “Affiliate” has the meaning given to such term under the Securities Act of 1933.

 

(iii)                               Place of Performance.  The principal place of employment of the Executive will be in the Dallas, Texas metropolitan area (the “Principal Location”).  The Executive understands that he shall regularly be required to travel in connection with the performance of his duties hereunder.

 

(b)                                 Compensation.

 

(i)                                     Annual Base Salary.  During the Employment Period, unless increased by the Board in its sole discretion, the Executive shall receive an annual base salary of ONE MILLION AND 00/100 DOLLARS ($1,000,000.00) (the “Annual Base Salary”), payable in equal installments in accordance with the Company’s normal payroll practice for its senior executives, subject to the Executive’s continued employment with the Company.

 

(ii)                                  Annual Bonus.  Commencing in 2017, and continuing during each subsequent calendar year of the Employment Period, the Executive shall be eligible for an annual cash bonus (the “Annual Bonus”) in the targeted amount of FIVE MILLION AND 00/100 DOLLARS ($5,000,000.00) (the “Target Bonus Amount”), which shall be awarded each year during the Employment Period by the Compensation Committee of the Board (the “Compensation Committee”) based upon its evaluation of such performance measures and objectives as may be established by the Compensation Committee from time to time following good faith consultation with the Executive (the “Annual Bonus Performance Metrics”).  The amount of the Annual Bonus that shall be paid to Executive each year shall be determined by the Compensation Committee based on the achievement of the Annual Bonus Performance Metrics; provided, however, that, if the Internal Revenue Code of 1986, as amended (the “Code”), Section 162(m) goal described in the next sentence has been achieved for any given year, then the Annual Bonus for such year shall be equal to at least sixty-five percent (65%) of the Target Bonus Amount, but not more than one hundred twenty percent (120%) of the Target Bonus Amount.  The determination as to whether the performance goals have been 

 

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achieved shall be made in the reasonable discretion of the Compensation Committee and, to the extent Section 162(m) of the Code is applicable, shall be (1) consistent with and subject to the requirements set forth in Section 162(m) of the Code and (2) the amount to be paid with respect to the Annual Bonus shall be determined in a manner consistent with the immediately preceding sentence.  The Annual Bonus for each year shall be paid to the Executive as soon as reasonably practicable following the end of such year and at the same time that other senior executives of the Company receive bonus payments, but in no event later than March 15 following the end of the fiscal year to which such Annual Bonus relates.

 

(iii)                               Annual Equity or Equity-Based Incentive Awards.  Commencing in 2017, and continuing during each subsequent calendar year of the Employment Period, the Executive shall be eligible to receive an annual equity award (the “Annual LTIP Award”), which shall be awarded each year during the Employment Period by the Compensation Committee based upon its evaluation of such performance measures and objectives as may be established by the Compensation Committee from time to time following good faith consultation with the Executive. The Annual LTIP Award shall be a long-term equity or equity-based incentive award with an aggregate grant value (based on the achievement of the applicable performance metrics that cause the award to vest at the level of 100%, and without taking into account the probability of the award vesting at that level on the date of grant) on the date of grant equal to THREE MILLION AND 00/100 DOLLARS ($3,000,000.00), with the number of shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”) subject to such Annual LTIP Award determined by dividing the aggregate grant value by the closing price per share of the Common Stock on a nationally recognized exchange or as otherwise provided for in the Incentive Plan on the date of grant, which shall be awarded each year upon the achievement of certain performance goals established by the Compensation Committee for such year. The determination as to whether the performance goals have been achieved shall be made in the sole discretion of the Compensation Committee and, to the extent Section 162(m) of the Code is applicable, shall be consistent with and subject to the requirements set forth in Section 162(m) of the Code. The Annual LTIP Award shall be granted to the Executive at the same time that other senior executives of the Company are granted their annual equity or equity-based incentive awards but in no event later than March 15 following the end of the fiscal year to which such Annual LTIP Award relates. All Annual LTIP Awards granted to the Executive shall provide for performance-based vesting and a maximum vesting percentage of 200% (assuming the grant is made based on the achievement of the applicable performance metrics at the 100% level), and shall be subject to the terms and conditions of the Incentive Plan and any applicable award agreements thereunder. For purposes of this Agreement, “Incentive Plan” shall mean The Howard Hughes Corporation Amended and Restated 2010 Incentive Plan, as in effect from time to time (and any successor plan thereto).

 

(iv)                              Initial Equity Incentive Award.  On the Effective Date, or as soon thereafter as is practical, the Company shall grant to the Executive an initial one-time award (the “Initial LTIP Award”) of 25,738 shares of Common Stock.  The Initial LTIP Award shall provide for performance-based vesting, and shall be subject to the terms and  

 

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conditions of the Incentive Plan and The Howard Hughes Corporation Restricted Stock Agreement, substantially in the form attached hereto as Exhibit A.

 

(v)                                 Stock Ownership Requirement.  The Executive previously purchased a warrant (the “Existing Warrant”) to acquire 2,367,985 shares of Common Stock (the “Existing Warrant Shares”) for FIFTEEN MILLION AND 00/100 DOLLARS ($15,000,000.00).  On June 15, 2017 (the “Warrant Exercise Date”), the Executive fully exercised the Existing Warrant. Accordingly, subject to the terms of that certain new Warrant Purchase Agreement, dated June 16, 2017 (the “New Warrant Agreement”), the Executive shall be required to own at all times from and after the Warrant Exercise Date and until the fifth (5th) anniversary of the Effective Date 401,156 shares of Common Stock.

 

(vi)                              Future Warrant Agreement.  The Company shall include a proposal in its 2022 proxy materials (and use commercially reasonable efforts to obtain stockholder approval of such proposal) for Executive to purchase a fair market value warrant, which warrant shall be exercisable for a number of shares of Common Stock as the Executive may determine in his sole and absolute discretion; provided, however, that, in no event shall the number of shares of Common Stock subject to purchase under the warrant exceed 2,500,000 shares of Common Stock (such amount as may be adjusted for stock dividends, stock splits, reverse stock splits and other similar transactions) (the “Future Warrant Agreement”). The Future Warrant Agreement shall have substantially similar terms, and be subject to the same conditions, as the New Warrant Agreement and, if stockholder approval is obtained, Executive shall have the right, but not the obligation, to enter into the Future Warrant Agreement with the Company.

 

(vii)                           Relocation.  If the Board requests, and the Executive agrees, to relocate from the Principal Location during the Employment Period, then the Company shall provide the Executive with (A) home sale services (at market price and with no reimbursement for any loss on home price) and (B) reimbursement in accordance with Company policy for the Executive’s reasonable and properly documented moving expenses, which shall include the costs of moving the Executive, his family and possessions from the Principal Location to the location requested by the Board.

 

(viii)                        Indemnification.  Simultaneously herewith, or as promptly as practicable hereafter, the Company and the Executive will enter into an indemnification agreement on substantially the same terms as the indemnification agreements entered into by the Company and each of its directors prior to the Effective Date.

 

(c)                                  Benefits.  During the Employment Period, except as otherwise expressly provided herein, the Executive shall be entitled to participate in all employee welfare benefit plans, practices, policies and programs and fringe benefits to the extent applicable generally and on a basis no less favorable than that provided to other senior officers of the Company, including, without limitation, health, medical, dental, long-term disability and life insurance plans.  The Executive shall be entitled to paid annual vacation totaling four (4) weeks per calendar year in accordance with the Company’s vacation policy in effect from time to time.

 

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(d)                                 Expenses.  The Company shall reimburse the Executive for all reasonable and necessary expenses actually incurred by the Executive in connection with the business affairs of the Company and the performance of the Executive’s duties hereunder, in accordance with Company policy as in effect from time to time.  In addition, promptly after the submission of invoices in reasonable detail, the Company shall pay all reasonable fees (billed at standard hourly rates) and expenses of Clouse Dunn LLP and Munsch Hardt Kopf & Harr PC, counsel to the Executive, in connection with the negotiation of this Agreement, the Warrant Agreement and any other agreement or instrument contemplated hereunder or thereunder.

 

(e)                                  Business Travel.  Notwithstanding the foregoing, to the extent that the Executive is required to travel during the Employment Period in connection with the Executive’s duties and responsibilities hereunder, the Company shall reimburse the Executive and/or permit the Executive to travel, in each case, in accordance with the manner of and travel practices utilized by the Executive during the two (2) years prior to the Effective Date.

 

3.                                      Termination of Employment.

 

(a)                                 Death or Permanent Disability.  The Executive’s employment shall terminate automatically upon the Executive’s death or if the Executive suffers a Permanent Disability.  For purposes of this Agreement, “Permanent Disability” means the inability of the Executive to perform the essential functions of his job with the Company by reason of a medically determinable physical or mental impairment that can be expected to last for sixty (60) or more consecutive days or more than ninety (90) days during any three hundred sixty-five (365) day period, as determined by a duly licensed physician.  If the Executive suffers a Permanent Disability during the Employment Period, the Company may give to the Executive written notice, in accordance with Section 12(b), of its intention to terminate the Executive’s employment.  In such event, the Executive’s employment with the Company shall terminate effective on the thirtieth (30th) day after the Executive’s receipt of such notice by the Company (the “Disability Effective Date”), provided that, within the thirty (30) days after such receipt, the Executive shall not have returned to full-time performance of the Executive’s duties.  The Executive shall fully cooperate in connection with the determination of whether a Permanent Disability exists.

 

(b)                                 Cause.  The Company may terminate the Executive’s employment during the Employment Period for Cause.  For purposes of this Agreement, “Cause” shall mean, as determined in good faith by a unanimous vote (excluding the Executive if he is then a member of the Board) of the Board at a meeting of the Board held for such purpose, and where the Executive and the Executive’s counsel had an opportunity (on at least 15 days prior notice) to be heard before the Board, the Executive’s:

 

(i)                                     conviction, plea of guilty or no contest to any felony;

 

(ii)                                  gross negligence or willful misconduct in the performance of the Executive’s duties;

 

(iii)                               drug addiction or habitual intoxication;

 

5

 

(iv)                              commission of fraud, embezzlement, misappropriation of funds, breach of fiduciary duty, material violation of law or a material act of dishonesty against the Company, in each case that the Board determines was willful;

 

(v)                                 material and continued breach of this Agreement, after notice for substantial performance is delivered by the Company in writing that identifies in reasonable detail the manner in which the Company believes the Executive is in breach of this Agreement;

 

(vi)                              willful material breach of Company policy or code of conduct; or

 

(vii)                           willful and continued failure to substantially perform his duties hereunder (other than such failure resulting from the Executive’s incapacity due to physical or mental illness);

 

provided, however, that in each case the Company shall provide the Executive with written notice that an event constituting Cause has occurred (such notice to be provided within sixty (60) days of the initial occurrence of such event) and specifying the details of such event.  With respect to any events described under Sections 3(b)(ii),(v),(vi) or (vii) above, the Executive shall be given thirty (30) days from his receipt of written notice to cure such events.  If the Executive cures an event during such period that would otherwise constitute Cause, then the Company will have no right to terminate the Executive’s employment for Cause. For purposes of this provision, no act or omission on the part of the Executive shall be considered “willful” unless it is done or omitted not in good faith or without reasonable belief that the act or omission was in the best interests of the Company.  Any act or omission by the Executive based upon a resolution duly adopted by the Board or advice of counsel for the Company shall be conclusively presumed to have been done or omitted in good faith and in the best interests of the Company.  This Section 3(b) shall not prevent the Executive from challenging whether the Board acted in good faith in determining that Cause exists or that the Executive has failed to cure any act (or failure to act) that purportedly formed the basis for the Board’s determination in accordance with the procedures set forth in Section 10.  In addition, and for the avoidance of doubt, the burden of proof regarding the existence of Cause shall be on the Company.

 

(c)                                  Good Reason.  The Executive may terminate the Executive’s employment during the Employment Period for Good Reason.  For purposes of this Agreement, “Good Reason” shall mean the occurrence of any of the following events without the Executive’s written consent:

 

(i)                                     a material diminution in the Executive’s base compensation;

 

(ii)                                  a material diminution in the Executive’s authority, duties or responsibilities;

 

(iii)                               the Executive no longer reports directly to the Board;

 

(iv)                              the failure by the Company to obtain stockholder approval of the Future Warrant Agreement or, if the requisite stockholder approval has been obtained, the refusal by the Company to enter into the Future Warrant Agreement with the Executive;

 

6

 

(v)                                 any other action or inaction that constitutes a material breach by the Company of this Agreement; or

 

(vi)                              any requirement that the Executive relocate or maintain his Principal Location more than fifty (50) miles from Dallas, Texas.

 

provided, however, that in each case the Executive must provide the Company with written notice that an that an event constituting Good Reason has occurred (such notice to be provided within sixty (60) days of the initial occurrence of such event) and specifying the details of such event.  With respect to any events described under Section 3(c)(i), (ii), (iv), (v) or (vi) above, the Company shall be given thirty (30) days from its receipt of written notice to cure such events.  If the Company cures an event during such period that would otherwise constitute Good Reason, then the Executive will have no right to terminate his employment for Good Reason.  Following the occurrence of a Change in Control (as defined below), any claim by the Executive that Good Reason exists shall be presumed to be valid and correct unless an AAA arbitrator determines, in accordance with Section 10, that the Company has established by clear and convincing evidence that Good Reason does not exist.  A termination of the Executive’s employment for Good Reason in accordance with this Section 3(c) is intended to be treated as an involuntary separation from service for purposes of Section 409A of the Code.

 

(d)                                 Without Cause.  Subject to the provisions of this Agreement, the Company shall have the right to terminate the Executive’s employment hereunder without Cause by providing the Executive with sixty (60) days’ prior written Notice of Termination, and such termination shall not in and of itself be, nor shall it be deemed to be, a breach of this Agreement.

 

(e)                                  Without Good Reason.  The Executive will have the right to voluntarily terminate his employment hereunder without Good Reason by providing the Company with sixty (60) days’ prior written Notice of Termination, and such voluntary termination shall not in and of itself be, nor shall it be deemed to be, a breach of this Agreement.

 

(f)                                   Notice of Termination.  Any termination by the Company or by the Executive shall be communicated by providing Notice of Termination to the other party hereto given in accordance with Section 12(b).  For purposes of this Agreement, a “Notice of Termination” means a written notice which (i) indicates the specific termination provision in this Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated, and (iii) the contemplated date of termination.

 

4.                                      Obligations of the Company upon Termination.

 

(a)                                 Non-Change in Control Termination (Other than Non-Renewal).  If (1) during the Employment Period, the Company shall terminate the Executive’s employment without Cause (and other than upon the Executive’s death or Permanent Disability) or (2) during the Employment Period, the Executive shall terminate his employment for Good Reason,  the Company shall have no further obligations to the Executive except as follows:

 

7

 

(i)                                     the Company shall pay or provide the Executive, to the extent not theretofore paid, as soon as practicable after the date of termination (but in no event later than 60 days after the date of termination):  (A) accrued Annual Base Salary and vacation pay through the date of termination;  (B) any reimbursement to which the Executive is entitled pursuant to Company policy, but which was not reimbursed prior to the date of termination; and (C) any other earned but unpaid outstanding compensatory arrangements ((A), (B) and (C)), together, the “Accrued Benefits”);

 

(ii)                                  if the Code Section 162(m) performance goal is achieved for the calendar year in which the Executive’s employment is terminated, the Company shall pay the Executive at the normally scheduled time an amount equal to the product of (x) the Target Bonus Amount multiplied by (y) a fraction, the numerator of which is the number of days of during such calendar year that the Executive was employed by the Company and the denominator of which is 365 (the “Prorated Bonus”);

 

(iii)                               the Company shall pay the Executive, on the 60th day following the date of termination, a lump sum amount equal to the product of one times (1x) the sum of (A) the Annual Base Salary (which shall be the Annual Base Salary prior to any reduction if the termination is for Good Reason because of a reduction in the Annual Base Salary) plus (B) the Target Bonus Amount; and

 

(iv)                              all outstanding equity compensation awards that vest based on the achievement of performance metrics and that are subject to forfeiture on the date of termination shall remain outstanding and continue to vest in accordance with the terms and conditions of the grant of the applicable equity award as if Executive’s employment had continued through the date on which the performance metrics are measured (and the Company shall take any action that is necessary to ensure that such equity awards remain outstanding under the Incentive Plan), and at such time such equity awards shall either be vested or forfeited based on the achievement of the applicable performance metrics (the “Continued Eligibility for Vesting”).

 

The amounts payable or to be provided under this Section 4(a) shall be in lieu of any amounts that would otherwise be paid or provided under Section 4(b), Section 4(c) and Section 4(d).

 

(b)                                 Non-Renewal.  If the Executive’s employment is terminated based on the Company electing to not renew or extend the Employment Period on the tenth (10th) anniversary, or any subsequent anniversary, of the Effective Date, the Company shall have no further obligations to the Executive except as follows:

 

(i)                                     the Accrued Benefits;

 

(ii)                                  if the Code Section 162(m) performance goal is achieved for the calendar year in which the Executive’s employment is terminated, the Prorated Bonus; and

 

(iii)                               the Continued Eligibility for Vesting.

 

8

 

The amounts payable or to be provided under this Section 4(b) shall be in lieu of any amounts that would otherwise be paid or provided under Section 4(a), Section 4(c) and Section 4(d).

 

(c)                                  Termination Because of Death or Permanent Disability.  If, during the Employment Period, the Executive’s employment terminates because the Executive dies or as a result of Permanent Disability, the Company shall have no further obligations to the Executive except as follows:

 

(i)                                     the Accrued Benefits;

 

(ii)                                  the Company shall pay the Executive, on the 60th day following the date of termination, an amount equal to the product of (x) the Target Bonus Amount multiplied by (y) a fraction, the numerator of which is the number of days of during such calendar year that the Executive was employed by the Company and the denominator of which is 365 (the “Prorated Target Bonus”); and

 

(iii)                               the Continued Eligibility for Vesting.

 

The amounts payable or to be provided under this Section 4(c) shall be in lieu of any amounts that would otherwise be paid or provided under Section 4(a), Section 4(b) and Section 4(d).

 

(d)                                 Change in Control Termination.  If, during the Employment Period, the Company shall terminate the Executive’s employment without Cause (and other than upon the Executive’s death or Permanent Disability), or if the Executive shall terminate his employment for Good Reason, in either case, in connection with, or within twelve (12) months following, a Change in Control (any such termination of employment, a “Change in Control Termination”), the Company shall have no further obligations to the Executive except as follows:

 

(i)                                     the Accrued Benefits;

 

(ii)                                  the Prorated Target Bonus;

 

(iii)                               the Company shall pay the Executive, on the 60th day following the date of termination, a lump sum amount equal to the product of one times (1x) the sum of (A) the Annual Base Salary (which shall be the Annual Base Salary prior to any reduction if the termination is for Good Reason because of a reduction in the Annual Base Salary) plus (B) the Target Bonus Amount; and

 

(iv)                              all outstanding equity compensation awards, if any, that are subject to forfeiture on the date of termination shall fully and immediately vest and become non-forfeitable, with any awards that vest based on the achievement of performance metrics vesting at the greater of (1) one hundred percent (100%) of the number of shares of Common Stock granted pursuant to each such award, or (2) the performance level achieved as of the date of termination.

 

The amounts payable or to be provided under this Section 4(d) shall be in lieu of any amounts that would otherwise be paid or provided under Section 4(a), Section 4(b) and Section 4(c).

 

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(e)                                  Condition.  The Company shall not be required to make the payments and provide the benefits specified in Sections 4(a)(ii), 4(a)(iii), 4(a)(iv), 4(b)(ii), 4(b)(iii), 4(c)(ii), 4(c)(iii), 4(d)(ii), 4(d)(iii) or 4(d)(iv) hereof unless, prior to payment, the parties hereto (or the Executive’s estate in the event of Executive’s death) have entered into a release substantially in the form attached hereto as Exhibit B (for which the applicable seven-day revocation period has expired), prior to the 60th day following the date of termination, under which the Executive releases the Company, its Affiliates and their officers, directors and employees from all liability (other than the payments and benefits under this Agreement); provided, that if the time period for executing and returning the release begins in one taxable year and ends in a second taxable year, any payments shall not commence until the second taxable year.  In the event that such release is not executed and delivered to the Company in accordance with this Section 4(e) prior to the 60th day following the date of termination (with the applicable seven-day revocation period having expired), the Executive shall forfeit the payments and benefits specified in Sections 4(a)(ii), 4(a)(iii), 4(a)(iv), 4(b)(ii), 4(b)(iii), 4(c)(ii), 4(c)(iii), 4(d)(ii), 4(d)(iii) or 4(d)(iv) hereof, as applicable.

 

(f)                                         Resignation from Certain Directorships.  Following the Employment Period or the termination of the Executive’s employment for any reason, if and to the extent requested by the Board, the Executive agrees to resign from the Board, all fiduciary positions (including as trustee) and from all other offices and positions he holds with the Company and any of its Affiliates; provided, however, that if the Executive refuses to tender his resignation after the Board has made such request, then the Board shall be empowered to tender the Executive’s resignation from such offices and positions.

 

5.                                      Change in Control.

 

(a)                                       For purposes of this Agreement, “Change in Control” means the occurrence of any of the following events:

 

(i)                                     A “change in the ownership of the Company” which shall occur on the date that any one person, or more than one person acting as a group acquires ownership of stock in the Company that, together with stock held by such person or group, constitutes more than 50% of the total fair market value or total voting power of the stock of the Company; however, if any one person or more than one person acting as a group, is considered to own more than 50% of the total fair market value or total voting power of the stock of the Company, the acquisition of additional stock by the same person or persons will not be considered a “change in the ownership of the Company” (or to cause a “change in the effective control of the Company” within the meaning of Section 5(a)(ii) below) and an increase of the effective percentage of stock owned by any one person, or persons acting as a group, as a result of a transaction in which the Company acquires its stock in exchange for property will be treated as an acquisition of stock for purposes of this paragraph; provided further, however, that for purposes of this Section 5(a)(i), the following acquisitions shall not constitute a Change in Control:  (A) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any entity controlled by the Company, or (B) any acquisition by investors (immediately prior to such acquisition) in the Company for financing purposes, as determined by the Board in its sole discretion.  This Section 5(a)(i) 

 

10

 

applies only when there is a transfer of the stock of the Company (or issuance of stock) and stock in the Company remains outstanding after the transaction.

(ii)                                  A “change in the effective control of the Company” which shall occur on the date that either (A) any one person, or more than one person acting as a group acquires (or has acquired during the twelve-month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the Company possessing 35% or more of the total voting power of the stock of the Company, except for (1) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any entity controlled by the Company or (2) any acquisition by investors (immediately prior to such acquisition) in the Company for financing purposes, as determined by the Board in its sole discretion; or (B) a majority of the members of the Board are replaced during any twelve-month period by directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or election.  For purposes of a “change in the effective control of the Company,” if any one person, or more than one person acting as a group, is considered to effectively control the Company within the meaning of this Section 5(a)(ii), the acquisition of additional control of the Company by the same person or persons is not considered a “change in the effective control of the Company,” or to cause a “change in the ownership of the Company” within the meaning of Section 5(a)(i) above.

 

(iii)                               The occurrence of any of the transactions contemplated by Section 5(a)(i) or 5(a)(ii) above in connection with which the stock of the Company ceases to be publicly traded on a national securities exchange.

 

(iv)                              A “change in the ownership of a substantial portion of the Company’s assets” which shall occur on the date that any one person, or more than one person acting as a group acquires (or has acquired during the twelve-month period ending on the date of the most recent acquisition by such person or persons) assets of the Company that have a total gross fair market value equal to or more than 60% of the total gross fair market value of all the assets of the Company immediately prior to such acquisition or acquisitions; provided that the proceeds of such acquisition or acquisitions are distributed to the shareholders of the Company in connection with such acquisition or acquisitions.  For this purpose, gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets.  Any transfer of assets to an entity that is controlled by the shareholders of the Company immediately after the transfer, as provided in guidance issued pursuant to Section 409A of the Code, shall not constitute a Change in Control.

 

(v)                                 For purposes of this Section 5(a), the provisions of Section 318(a) of the Code regarding the constructive ownership of stock will apply to determine stock ownership; provided, that stock underlying unvested options (including options exercisable for stock that is not substantially vested) will not be treated as owned by the individual who holds the option.  In addition, for purposes of this Section 5(a), “Company” includes (A) the Company and (B) an entity that is a stockholder owning

 

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more than 50% of the total fair market value and total voting power (a “Majority Shareholder”) of the Company, or any entity in a chain of entities in which each entity is a Majority Shareholder of another entity in the chain, ending in the Company.

 

6.                                      No Mitigation.  In no event shall the Executive be obligated to seek or obtain other employment after the date of termination, or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement, and such amounts shall not be reduced, whether or not the Executive obtains other employment.  The Company may offset any amounts that it owes to the Executive by any amounts that the Executive owes to the Company or its Affiliates; provided that, in no event, shall any payment under this Agreement that constitutes “nonqualified deferred compensation” for purposes of Section 409A of the Code be subject to offset by any amount unless such offset is expressly permitted under Section 409A of the Code.

 

7.                                      Potential Reductions.

 

(a)                                       Notwithstanding any other provisions in this Agreement, in the event that any payment or benefit received or to be received by the Executive (including, without limitation, any payment or benefit received in connection with a Change in Control or the termination of the Executive’s employment, whether pursuant to the terms of this Agreement or any other plan, program, arrangement or agreement) (all such payments and benefits, together, the “Total Payments”) would be subject (in whole or part), to any excise tax imposed under Section 4999 of the Code, or any successor provision thereto (the “Excise Tax”), then, after taking into account any reduction in the Total Payments provided by reason of Section 280G of the Code in such other plan, program, arrangement or agreement, the Company will reduce the Executive’s payments and/or benefits under this Agreement, to the extent necessary so that no portion of the Total Payments is subject to the Excise Tax (but in no event to less than zero), in the following order:  (i) any cash severance amount, as described in Sections 4(d)(ii) and 4(d)(iii); and (ii) any acceleration of outstanding equity compensation, as described in Section 4(d)(iv) hereof (the payments and benefits set forth in clauses (i) through (ii) of this Section 7(a), together, the “Potential Payments”); provided, however, that the Potential Payments shall only be reduced if (A) the net amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state and local income taxes on such reduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such reduced Total Payments), is greater than or equal to (B) the net amount of such Total Payments without such reduction (but after subtracting the net amount of federal, state and local income taxes on such Total Payments and the amount of Excise Tax to which the Executive would be subject in respect of such unreduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such unreduced Total Payments.  For purposes of determining whether and the extent to which the Total Payments will be subject to the Excise Tax:  (i) no portion of the Total Payments the receipt or enjoyment of which the Executive shall have waived at such time and in such manner as not to constitute a “payment” within the meaning of Section 280G(b) of the Code shall be taken into account; (ii) no portion of the Total Payments shall be taken into account which does not constitute a “parachute payment” within the meaning of Section 280G(b)(2) of the Code (including, without limitation, by reason of Section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no portion of such Total Payments shall be taken into account which 

 

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constitutes reasonable compensation for services actually rendered, within the meaning of Section 280G(b)(4)(B) of the Code, in excess of the “base amount” (as set forth in Section 280G(b)(3) of the Code) that is allocable to such reasonable compensation; and (iii) the value of any non-cash benefit or any deferred payment or  benefit included in the Total Payments shall be determined by in accordance with the principles of Sections 280G(d)(3) and (4) of the Code.

 

(b)                                       All determinations required to be made under this Section 7, including whether an Excise Tax would otherwise be imposed, whether the Total Payments shall be reduced, the amount of any such reduction and the assumptions to be utilized in arriving at such determinations not expressly provided for herein, shall be made by an independent, nationally recognized accounting firm or compensation consulting firm mutually acceptable to the Company and Executive (the “Determination Firm”) which shall provide detailed supporting calculations both to the Company and Executive within 15 business days of the receipt of notice from the Company that a payment is due to be made hereunder, or such earlier time as is requested by the Executive.  All reasonable fees and expenses of the Determination Firm shall be borne solely by the Company.  Any determination by the Determination Firm shall be binding upon the Company and Executive, absent manifest error.  As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Determination Firm hereunder, it is possible that payments which Executive was entitled to, but did not receive as a result of application of Section 7, could have been made without the imposition of the Excise Tax (“Underpayment”), consistent with the calculations required to be made hereunder.  In such event, the Determination Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to or for the benefit of Executive but no later than March 15 of the year after the year in which the Underpayment is determined to exist, which is when the legally binding right to such Underpayment arises.

 

(c)                                        The fact that the Executive’s right to payments or benefits may be reduced by reason of the limitations contained in this Section 7 shall not of itself limit or otherwise affect any other rights of the Executive under this Agreement.

 

8.                                      Restrictive Covenants.

 

(a)                                       Non-Solicit.  During the Employment Period, and for a twelve (12) month period after the Executive’s employment is terminated for any reason, the Executive shall not (except in connection with the performance of his duties for the Company) in any manner, directly or indirectly (without the prior written consent of the Company) Solicit (as defined below) anyone who is then an employee or independent contractor of the Company or its Affiliates (or who was an employee or independent contractor of the Company or its Affiliates within the prior twelve (12) months to resign from the Company or its Affiliates or to apply for or accept employment with any other business or enterprise.  For purposes of this Agreement, “Solicit” means any direct or indirect communication of any kind, regardless of who initiates it, that in any way invites, advises, encourages or requests any person to take or refrain from taking any action.

 

(b)                                       Confidential Information.  The Executive hereby acknowledges that, as an employee of the Company, he will be making use of, acquiring and adding to confidential

 

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information of a special and unique nature and value relating to the Company and its Affiliates and their strategic plan and financial operations.  The Executive further recognizes and acknowledges that all confidential information is the exclusive property of the Company and its Affiliates, is material and confidential, and is critical to the successful conduct of the business of the Company and its Affiliates.  Accordingly, the Executive hereby covenants and agrees that he  will use confidential information for the benefit of the Company and its Affiliates only and shall not at any time, directly or indirectly, during the term of this Agreement and thereafter divulge, reveal or communicate any confidential information to any person, firm, corporation or entity whatsoever, or use any confidential information for his own benefit or for the benefit of others.  Notwithstanding the foregoing, the Executive shall be authorized to disclose confidential information (i) as may be required by law or legal process after providing the Company with prior written notice and an opportunity to respond to such disclosure (unless such notice is prohibited by law), or (ii) with the prior written consent of the Company. Notwithstanding anything to the contrary in this Agreement, the Executive shall not be prohibited from: (i) filing and, as provided for under Section 21F of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) maintaining the confidentiality of a claim with a government agency that is responsible for enforcing a law; (ii) providing confidential information to the extent required by law or legal process or permitted by Section 21F of the Exchange Act; (iii) cooperating, participating or assisting in any government or regulatory entity investigation or proceeding; or (iv) receiving an award for information provided to any government agency that is responsible for enforcing the law.

 

(c)                                  Non-Competition.  During the Employment Period, and for a twelve (12) month period after the Executive’s employment is terminated for any reason, the Executive shall not directly or indirectly (whether for compensation or otherwise) own or hold any interest in, manage, operate, control, consult with, render services for, or in any manner participate in any business that is directly competitive with the business of the Company, either as a general or limited partner, proprietor, shareholder, officer, director, agent, employee, consultant, trustee, Affiliate or otherwise.  Nothing herein shall prohibit the Executive from being a passive owner of the outstanding securities of any publicly traded company engaged in the business of the Company; provided that the Executive does not take an “activist” role with respect to the operation or management of such public company during the restricted period.  For the avoidance of doubt, the Executive shall not be deemed to be competing with the business of the Company as a result of the Executive’s oversight of the Executive’s existing assets and the existing assets and business of TPMC, each as of the date hereof and as described in Section 2(a)(ii) hereof.  In addition to and without limiting the foregoing, during the Employment Period, the Executive shall present to, and seek consent from, the Compensation Committee before making any investment in any real estate business of any kind, consent shall not be unreasonably withheld or delayed.

 

(d)                                       Survival.  Any termination of the Executive’s employment or of this Agreement shall have no effect on the continuing operation of this Section 8.

 

(e)                                        Non-Disparagement.  During the Employment Period and thereafter, the Executive shall not, in any manner, directly or indirectly through another person or entity, knowingly make any false or any disparaging or derogatory statements about the Company, any of its Affiliates or any of their employees, officers or directors.  The Company, in turn, agrees

 

14

 

that it will not make, in any authorized corporate communications to third parties, and it will direct the members of the Board, the Chief Executive Officer and other executive officers of the Company, not to in any manner, directly or indirectly through another person or entity, knowingly make any false or any disparaging or derogatory statements about the Executive; provided, however, that nothing herein shall prevent either party from giving truthful testimony or from  otherwise making good faith statements in connection with legal investigations or other proceedings.

 

(f)                                         Enforcement.  If, at the time of enforcement of this Section 8, a court of competent jurisdiction holds that the restrictions stated herein are unreasonable under circumstances then existing, the parties hereto agree that the maximum period, scope or geographical area reasonable under such circumstances shall be substituted for the stated period, scope or area.  Because the Executive’s services are unique and because the Executive has access to confidential information, the parties hereto agree that money damages would be an inadequate remedy for any breach of this Section 8.  Therefore, in the event of a breach or threatened breach of this Agreement, the Company or its successors or assigns may, in addition to other rights and remedies existing in their favor, apply to any court of competent jurisdiction for specific performance and/or injunctive or other relief in order to enforce, or prevent any violations of, the provisions hereof.

 

9.                                      Successors.

 

(a)                                       This Agreement is personal to the Executive and without the prior written consent of the Company shall not be assignable by the Executive otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by the Executive’s legal representatives.

 

(b)                                       This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns.

 

(c)                                        The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place.  Upon the occurrence of a Change in Control, the Company will similarly require the acquiring entity to assume the Company’s obligations under this Agreement.  As used in this Agreement, “Company” shall mean the Company as defined above and any successor to its business and/or assets (or the acquiring entity upon the occurrence of a Change in Control as described and defined above).

 

10.                               Disputes.

 

(a)                                       Jurisdiction and Choice of Forum.  Except as set forth in Section 8(f), all disputes directly or indirectly arising under or related to the employment of the Executive or the provisions of this Agreement shall be settled by final and binding arbitration under the rules of the American Arbitration Association (“AAA”) then in effect, such arbitration shall be held in Dallas, Texas, as the sole and exclusive remedy of the parties.  The arbitration shall be heard by

 

15

 

one (1) AAA arbitrator who shall be selected by AAA.  The arbitrator shall have the authority to order expedited discovery and shall set a hearing within ninety (90) days following the arbitrator’s appointment as arbitrator by the AAA.  The arbitrator shall render an award and decision not later than thirty (30) days following the closing of arbitration hearing.  Judgment on any arbitration  award may be entered in any court of competent jurisdiction.  The prevailing party in any arbitration hearing shall also be entitled to recover his/its costs and attorneys’ fees.

 

(b)                                       Governing Law.  This Agreement and any disputes, claims or defenses arising under it will be governed by and construed in accordance with the law of the State of Delaware applicable to contracts made and to be performed entirely within that State.

 

11.                               Section 409A of the Code.

 

(a)                                       Compliance.  The intent of the parties is that payments and benefits under this Agreement are either exempt from or comply with Section 409A of the Code (“Section 409A”) and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to that end.  The parties acknowledge and agree that the interpretation of Section 409A and its application to the terms of this Agreement is uncertain and may be subject to change as additional guidance and interpretations become available.  In no event whatsoever shall the Company be liable for any tax, interest or penalties that may be imposed on the Executive by Section 409A or any damages for failing to comply with Section 409A.

 

(b)                                       Six Month Delay for Specified Employees.  If any payment, compensation or other benefit provided to the Executive in connection with his employment termination is determined, in whole or in part, to constitute “nonqualified deferred compensation” within the meaning of Section 409A and the Executive is a “specified employee” as defined in Section 409A, no part of such payments shall be paid before the day that is six months plus one day after the Executive’s date of termination or, if earlier, the Executive’s death (the “New Payment Date”).  The aggregate of any payments that otherwise would have been paid to the Executive during the period between the date of termination and the New Payment Date shall be paid to the Executive in a lump sum on such New Payment Date.  Thereafter, any payments that remain outstanding as of the day immediately following the New Payment Date shall be paid without delay over the time period originally scheduled, in accordance with the terms of this Agreement.

 

(c)                                        Termination as a Separation from Service.  A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits subject to Section 409A upon or following a termination of employment until such termination is also a “separation from service” within the meaning of Section 409A and for purposes of any such provision of this Agreement, references to a “resignation,” “termination,” “terminate,” “termination of employment” or like terms shall mean separation from service.

 

(d)                                       Payments for Reimbursements and In-Kind Benefits.  All reimbursements for costs and expenses under this Agreement shall be paid in no event later than the end of the calendar year following the calendar year in which the Executive incurs such expense.  With regard to any provision herein that provides for reimbursement of costs and expenses or in-kind benefits, except as permitted by Section 409A, (i) the right to reimbursement or in-kind benefits

 

16

 

shall not be subject to liquidation or exchange for another benefit, and (ii) the amount of expenses eligible for reimbursement or in-kind benefits provided during any taxable year shall not affect the expenses eligible for reimbursement or in-kind benefits to be provided in any other taxable year.

 

(e)                                        Payments within Specified Number of Days.  Whenever a payment under this Agreement specifies a payment period with reference to a number of days (e.g., “payment shall be made within 30 days following the date of termination”), the actual date of payment within the specified period shall be within the sole discretion of the Company.

 

(f)                                         Installments as Separate Payment.  If under this Agreement, an amount is paid in two or more installments, for purposes of Section 409A, each installment shall be treated as a separate payment.

 

12.                               Miscellaneous.

 

(a)                                       Amendment.  This Agreement may not be amended or modified otherwise than by a written agreement executed by the parties hereto or their respective successors and legal representatives.

 

(b)                                       Notices.  Whenever any notice is required or permitted hereunder, such notice must be in writing and personally delivered, mailed by certified or registered mail, return receipt requested, or by email transmission.  The parties agree that any notices shall be given at the following addresses; provided that the parties may change, at any time and from time to time, by written notice to the other, the address which it or he had previously specified for receiving notices:

 

If to the Executive:

 

at the Executive’s primary residential address
 as shown on the records of the Company

 

with a copy to:

 

Keith Clouse
 Clouse Dunn LLP
 1201 Elm Street, Suite 5200
 Dallas, Texas 75270

 

If to the Company:

 

The Howard Hughes Corporation
 One Galleria Tower
 13355 Noel Road, Suite 950
 Dallas, Texas 75240
 Attention:  Office of the General Counsel

 

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with a copy to:

 

William A. Ackman, Chairman of the Board
 888 Seventh Avenue, 42nd Floor
 New York, NY 10019

 

or to such other address as either party shall have furnished to the other in writing in accordance herewith.  Notice and communications shall be effective when actually received by the addressee.

 

(c)                                        Severability.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.

 

(d)                                       Tax Withholding.  The Company may withhold from any amounts payable under this Agreement such federal, state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or regulation.

 

(e)                                        Compliance with Dodd-Frank.  All payments under this Agreement, if and to the extent they are subject to the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), shall be subject to any incentive compensation policy established from time to time by the Company to comply with the Dodd-Frank Act. The Executive acknowledges and agrees that the Company may from time to time establish incentive compensation policies that may apply to this Agreement and the awards contemplated hereunder.

 

(f)                                         No Waiver.  The Executive’s or the Company’s failure to insist upon strict compliance with any provision of this Agreement or the failure to assert any right the Executive or the Company may have hereunder, including, without limitation, the Company’s right to terminate the Executive for Cause pursuant to Section 3 (subject to Executive’s right to challenge such determination in accordance with the provisions set forth in Section 3), shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement.

 

(g)                                        No Strict Construction.  It is the parties’ intention that this Agreement not be construed more strictly with regard to the Executive or the Company.

 

(h)                                       Entire Agreement.  This Agreement shall supersede any other employment or severance agreement or similar arrangements between the parties, and shall supersede any prior understandings, agreements or representations by or among the parties, written or oral, whether in term sheets, presentations or otherwise, relating to the subject matter hereof.  In the event of any inconsistency or conflict between any terms, definitions or conditions of this Agreement and the terms, definitions or conditions of any other agreement (other than the New Warrant Agreement), the terms, definitions and conditions of this Agreement shall govern and control, except to the extent otherwise provided in the New Warrant Agreement, in which case, the terms of the New Warrant Agreement shall govern and control.

 

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(i)                                           Counterparts.  This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

 

(j)                                          Section References; Captions.  Any reference to a “Section” herein is a reference to a section of this Agreement unless otherwise stated.  The captions of this Agreement are not part of the provisions hereof and shall have no force or effect.

 

[Remainder of page intentionally left blank]

 

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IN WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and, pursuant to the authorization from the Board or other duly authorized governing body, the Company has caused these presents to be executed in its name on its behalf, all as of the Effective Date.

 

 

	
 
    	
EXECUTIVE
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
/s/   David R. Weinreb
    
	
 
    	
David   R. Weinreb
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
THE   HOWARD HUGHES CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
/s/   R. Scot Sellers
    
	
 
    	
 
    	
R.   Scot Sellers
    
	
 
    	
 
    	
Chairman   of the Compensation Committee
    

 

[Signature Page to Employment Agreement]

 

 

EXHIBIT A

 

The Howard Hughes Corporation Restricted Stock Agreement

 

[See Attached]

 

 

EXECUTION VERSION

 

THE HOWARD HUGHES CORPORATION

 

RESTRICTED STOCK AGREEMENT

 

WHEREAS, David R. Weinreb (the “Grantee”) is an employee of The Howard Hughes Corporation (and its successors, the “Company”);

 

WHEREAS, the grant of Restricted Stock was authorized by the Compensation Committee of the Board (the “Compensation Committee”) on August 29, 2017;

 

WHEREAS, the date of grant is August 29, 2017 (“Date of Grant”); and

 

WHEREAS, pursuant to The Howard Hughes Corporation Amended and Restated 2010 Incentive Plan (the “Plan”), and subject to the terms and conditions thereof and the terms and conditions of this agreement (this “Agreement”), the Company has granted to Grantee as of the Date of Grant the right to receive 25,738 shares of common stock of the Company (the “Restricted Shares”).

 

NOW, THEREFORE, the Company and Grantee hereby agree as follows:

 

1.             Rights of Grantee.  The Restricted Shares subject to this grant shall be fully paid and nonassessable and shall be either:  (i) represented by certificates held in custody by the Company until all restrictions thereon have lapsed, together with a stock power or powers executed by Grantee in whose name such certificates are registered, endorsed in blank and covering such Restricted Shares; or (ii) held at the Company’s transfer agent in book entry form with appropriate restrictions relating to the transfer of such Restricted Shares, and endorsed with an appropriate legend referring to the restrictions hereinafter set forth.  Grantee shall have the right to vote the Restricted Shares.  Upon vesting of the Restricted Shares hereunder, the Grantee:  (x) shall receive cash dividends or cash distributions, if any, paid or made by the Company with respect to common shares after the Date of Grant and prior to the vesting of the Restricted Shares; and (y) shall receive any additional Restricted Shares that Grantee may become entitled to receive by virtue of a Restricted Share dividend, a merger or reorganization in which the Company is the surviving corporation or any other change in the capital structure of the Company.

 

2.             Restrictions on Transfer of Restricted Shares.  The Restricted Shares subject to this grant may not be assigned, exchanged, pledged, sold, transferred or otherwise disposed of by Grantee, except to the Company, until the Restricted Shares have become nonforfeitable in accordance with Sections 3, 4 and 5 hereof.  The Grantee’s rights with respect to such purported transfer in violation of the provisions of this Section 2 of this Agreement shall be null and void, and the purported transferee shall obtain no rights with respect to such Restricted Shares.

 

3.             Vesting of Restricted Shares.  Subject to the terms and conditions of Sections 4 and 5 of this Agreement, 100% of the Restricted Shares covered by this Agreement shall vest in accordance with the vesting schedule based on the total shareholder return as set forth on Exhibit A (the “Performance-based Vesting Schedule”).  Subject to the terms and

 

 

conditions of Sections 4 and 5 of this Agreement, up to an additional 100% of the Restricted Shares covered by this Agreement (the “Additional Shares”) may be issued in accordance with the Performance-based Vesting Schedule.

 

4.             Forfeiture of Awards.  Except to the extent Grantee’s rights to receive the Restricted Shares and the Additional Shares (and, in each case, any dividends declared thereunder) covered by this Agreement have become nonforfeitable pursuant to Section 3 of this Agreement or pursuant to the Employment Agreement between the Company and the Grantee, dated August 29, 2017 (the “Employment Agreement”), Grantee’s rights to receive the Restricted Shares and the Additional Shares covered by this Agreement shall be forfeited automatically and without further notice on the date that Grantee ceases to be an employee of the Company or a Subsidiary.

 

5.             Death or Disability.  Notwithstanding Sections 3 and 4 of this Agreement, if the Grantee dies or suffers a Permanent Disability (as defined in the Employment Agreement) before the vesting of the Restricted Shares, then the Restricted Shares shall vest in accordance with the terms and conditions of the Employment Agreement.

 

6.             Compliance with Law.  The Company shall make reasonable efforts to comply with all applicable federal and state securities laws; provided, however, that notwithstanding any other provision of this Agreement, the Company shall not be obligated to issue any of the Restricted Shares covered by this Agreement if the issuance thereof would result in violation of any such law.

 

7.             Compliance with Section 409A of the Code.  To the extent applicable, it is intended that this Agreement and the Plan comply with the provisions of Section 409A of the Code, so that the income inclusion provisions of Section 409A(a)(1) of the Code do not apply to Grantee.  This Agreement and the Plan shall be administered in a manner consistent with this intent.  Reference to Section 409A of the Code is to Section 409A of the Internal Revenue Code of 1986, as amended, and will also include any proposed, temporary or final regulations, or any other guidance promulgated with respect to such Section by the U.S. Department of the Treasury or the Internal Revenue Service.

 

8.             Amendments.  Any amendment to the Plan shall be deemed to be an amendment to this Agreement to the extent that the amendment is applicable hereto; provided, however, that no amendment shall adversely affect the rights of Grantee under this Agreement without Grantee’s consent; further, provided, that Grantee’s consent shall not be required to an amendment that is deemed necessary by the Company to ensure compliance with Section 409A of the Code or the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 or any regulations promulgated thereunder, including as a result of the implementation of any recoupment policy the Company adopts to comply with the requirements set forth in the Dodd-Frank Act.

 

9.             Severability.  In the event that one or more of the provisions of this Agreement shall be invalidated for any reason by a court of competent jurisdiction, any provision so invalidated shall be deemed to be separable from the other provisions hereof, and the remaining provisions hereof shall continue to be valid and fully enforceable.

 

2

 

10.          Relation to Plan.  This Agreement is subject to the terms and conditions of the Plan.  In the event of any inconsistency between the provisions of this Agreement and the Plan, the Plan shall govern.  Capitalized terms used herein without definition shall have the meanings assigned to them in the Plan.  The Compensation Committee acting pursuant to the Plan, as constituted from time to time, shall, except as expressly provided otherwise herein or in the Plan, have the right to determine any questions which arise in connection with the grant of Restricted Shares.

 

11.          Successors and Assigns.  Without limiting Section 2 hereof, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the successors, administrators, heirs, legal representatives and assigns of Grantee, and the successors and assigns of the Company.

 

12.          Governing Law.  This Agreement is made under, and shall be construed in accordance with, the internal substantive laws of the State of Delaware without giving effect to the principles of conflict of laws thereof.

 

[Remainder of Page Intentionally Left Blank, Signature Page to Follow]

 

3

 

Executed in the name and on behalf of the Company, as of the 29th day of August, 2017.

 

 

	
 
    	
THE HOWARD HUGHES   CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

The undersigned Grantee hereby acknowledges receipt of an executed original of this Agreement and accepts the right to receive the Restricted Shares or other securities covered hereby, subject to the terms and conditions of the Plan and the terms and conditions herein above set forth.

 

 

	
 
    	
GRANTEE
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: David R. Weinreb
    
	
 
    	
 
    	
Date:
    

 

[Signature Page to Restricted Stock Agreement]

 

 

EXHIBIT A

PERFORMANCE-BASED VESTING SCHEDULE

 

	
Cumulative Compounded
   Annual Total Shareholder
   Return
    	
 
    	
Stock Price End
    	
 
    	
Vesting %
    	
 
    
	
0.00% to 10.99%
    	
 
    	
$
    	
195.14 or below
    	
 
    	
0
    	
%
    
	
11.00% to 11.99%
    	
 
    	
$
    	
195.15
    	
 
    	
30
    	
%
    
	
12.00% to 12.99%
    	
 
    	
$
    	
204.10
    	
 
    	
60
    	
%
    
	
13.00% to 13.99%
    	
 
    	
$
    	
213.37
    	
 
    	
90
    	
%
    
	
14.00% to 14.99%
    	
 
    	
$
    	
222.98
    	
 
    	
120
    	
%
    
	
15.00% to 15.99%
    	
 
    	
$
    	
232.94
    	
 
    	
150
    	
%
    
	
16.00% to 16.99%
    	
 
    	
$
    	
243.24
    	
 
    	
160
    	
%
    
	
17.00% to 17.99%
    	
 
    	
$
    	
253.91
    	
 
    	
170
    	
%
    
	
18.00% to 18.99%
    	
 
    	
$
    	
264.95
    	
 
    	
180
    	
%
    
	
19.00% to 19.99%
    	
 
    	
$
    	
276.36
    	
 
    	
190
    	
%
    
	
20.00% +
    	
 
    	
$
    	
288.17
    	
 
    	
200
    	
%
    

 

The Restricted Shares shall vest on December 31, 2022, according to the schedule above; provided, that the Company achieves the corresponding cumulative compounded annual total shareholder return (“TSR”) target.  $115.81, the closing share price of the Company on August 29, 2017, shall be used as the beginning price for the purpose of calculating TSR.  The ending price for the purpose of calculating TSR shall be the volume weighted average share price of the Company for the last 30 trading days of 2022.  A TSR target is deemed satisfied if the TSR (calculated as described above) meets or exceeds such target.  If the “Stock Price End” amount is higher than the threshold “Stock Price End” amount, but less than the “Stock Price End” amount for the next highest threshold, then, in this instance, the percentage of the Award that vests shall be interpolated between the two thresholds.  For example, if your Award was for 1,000 Restricted Shares and on December 31, 2022 the “Stock End Price” was $227.96 (i.e., mid-way between $222.98 and $232.94), then, in this instance, you would be entitled to 1,350 fully vested Shares (135% of 1,000 Restricted Shares).  Share price shall be based on the daily closing price of the Company’s common stock as reported in the consolidated transaction reporting system and shall be rounded to nearest whole cent.

 

A-1

 

The Compensation Committee may make adjustments to the terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events, including without limitation, stock splits, stock dividends, spinoffs or other similar events, or as a result of changes in applicable laws, regulations or accounting principles, to prevent dilution or enlargement of the benefits or increase in intended benefits or potential intended benefits provided by an Award; provided, that such adjustments shall be consistent with the requirements of Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”) with regard to Awards subject to Section 162(m) of the Code.

 

The term “Award” shall have the meaning set forth in The Howard Hughes Corporation 2010 Amended and Restated Incentive Plan.  All other capitalized terms used herein without definition shall have the meanings assigned to them in the Restricted Stock Agreement to which this Exhibit A is attached.

 

A-2

 

EXHIBIT B

 

WAIVER AND RELEASE AGREEMENT

 

This Waiver and Release Agreement (hereinafter “Release”) is entered into among David R. Weinreb (hereinafter “Executive”) and The Howard Hughes Corporation, a Delaware corporation (the “Company”).

 

The parties previously entered into an employment agreement dated August 29, 2017 (the “Employment Agreement”), pursuant to which Executive is entitled to certain payments and benefits upon termination of employment subject to the execution and nonrevocation of this Release. Executive has had a termination of employment pursuant to the Employment Agreement.

 

NOW THEREFORE, in consideration of certain payments and benefits under the Employment Agreement, Executive and the Company agree as follows:

 

1.             Executive expressly waives and releases the Company, its affiliates and related entities, parent corporations and subsidiaries, and all current and former directors, administrators, supervisors, managers, agents, officers, partners, stockholders, attorneys, insurers and employees of the Company and its affiliates, related entities, parent corporations and subsidiaries, and their successors and assigns (the “Company Released Entities”), from any and all claims, actions and causes of action, at law or in equity, known or unknown, including, without limitation, those directly or indirectly relating to or connected with Executive’s employment with the Company or termination of such employment, including but not limited to any and all claims under the Texas Commission on Human Rights Act, the Texas Payday Act, the Employee Retirement Income Security Act of 1974, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans with Disabilities Act, as such Acts have been amended, and all other forms of employment discrimination whether under federal, state or local statute or ordinance, wrongful termination, retaliatory discharge, breach of express, implied, or oral contract, interference with contractual relations, defamation, intentional infliction of emotional distress and any other tort or contract claim under common law of any state or for attorneys’ fees, based on any act, transaction, circumstance or event arising up to and including the date of Executive’s execution of this Release; provided, however, that (i) nothing herein shall limit or impede Executive’s right to file or pursue an administrative charge with, or participate in, any investigation before the Equal Employment Opportunity Commission, or any similar local, state or federal agency, or to file a claim for unemployment compensation benefits, and/or any causes of action which by law Executive may not legally waive, (ii) Executive does not release the Company Released Entities from any rights and/or claims (a) Executive may have that arise after the date Executive signs this Release, (b) that by law cannot be waived by private agreement, (c) to enforce the Employment Agreement in accordance with its terms (including the severance provisions set forth in the Employment Agreement), subject to the terms of this Release or (d) to enforce this Release.  Executive agrees, however, that if Executive or anyone acting on Executive’s behalf, brings any action concerning or related to any cause of action or liability released in this Release, Executive waives any right to, and will not accept, any payments, monies, damages, or other relief, awarded in connection therewith. Notwithstanding anything to

 

B-1

 

the contrary in this Release, Executive shall not be prohibited from: (i) filing and, as provided for under Section 21F of the Securities Exchange  Act of 1934, maintaining the confidentiality of a claim with a government agency that is responsible for enforcing a law; (ii) providing confidential information to the extent required by law or legal process or permitted by Section 21F of the Securities Exchange Act of 1934; (iii) cooperating, participating or assisting in any government or regulatory entity investigation or proceeding; or (iv) receiving an award for information provided to any government agency that is responsible for enforcing the law. The Company expressly waives and releases Executive from any and all claims, actions and causes of action, at law or in equity, known or unknown, arising prior to the Effective Date; provided, however, the Company does not release Executive from any of the following rights and/or claims:  (i) any rights and/or claims the Company may have that arise after the date Executive signs this Release; (ii) any rights and/or claims that by law cannot be waived by private agreement; (iii) any rights and/or claims which are based upon any acts or omissions of Executive that involve fraud or arising out of acts that constitute a violation of criminal laws; (iv) any rights and/or claims to enforce the Employment Agreement in accordance with its terms (including the restrictive covenants set forth in the Employment Agreement), subject to the terms of this Release; or (v) any rights and/or claims to enforce this Release.

 

2.             Executive acknowledges:  (a) that Executive has been advised in writing hereby to consult with an attorney before signing this Release, and (b) that Executive has had at least twenty-one (21) days after receipt of this information and Release to consider whether to accept or reject this Release.  Executive understands that Executive may sign this Release prior to the end of such twenty-one (21) day period, but is not required to do so.  In addition, Executive has seven (7) days after Executive signs this Release to revoke it.  Such revocation must be in writing and delivered either by hand or mailed and postmarked within the seven (7) day revocation period.  If sent by mail, it is requested that it be sent by certified mail, return receipt requested to the Company, in care of the office of the General Counsel.  If Executive revokes this Release as provided herein, it shall be null and void.  If Executive does not revoke this Release within seven (7) days after signing it, this Release shall become enforceable and effective on the eighth (8th) day after the Executive signs this Release (the “Effective Date”).

 

3.             Executive and the Company agree that neither this Release nor the performance hereunder constitutes an admission by the Company or any of its affiliates of any violation of any federal, state or local law, regulation, or common law, or any breach of any contract or any other wrongdoing of any type.

 

4.             This Release shall be construed and enforced pursuant to the laws of the State of Delaware as to substance and procedure, including all questions of conflicts of laws.

 

5.             This Release constitutes the entire agreement between the parties concerning the subject matter hereof and supersedes all prior and contemporaneous agreements, if any, between the parties relating to the subject matter thereof; provided that this Release does not apply to:  (a) any claims under employee benefit plans subject to the Employee Retirement Income Security Act of 1974 in accordance with the terms of the applicable employee benefit plan, or any option agreement or other agreement pursuant to which Executive may exercise rights after termination of employment to acquire stock or other equity of the Company, (b) any claim under or based on a breach of this Release or Sections 4 or 8 of the Employment Agreement after the

 

B-2

 

date that Executive signs this Release; (c) rights or claims that may arise under the Age Discrimination in Employment Act or otherwise after the date that Executive signs this Release; or (d) any right to  indemnification or directors and officers liability insurance coverage to with Executive is otherwise entitled in accordance with the Employment Agreement.

 

6.             EXECUTIVE ACKNOWLEDGES THAT EXECUTIVE HAS FULLY READ AND FULLY UNDERSTANDS THIS RELEASE; AND THAT EXECUTIVE ENTERED INTO IT FREELY AND VOLUNTARILY AND WITHOUT COERCION OR PROMISES NOT CONTAINED IN THIS RELEASE.

 

 

	
EXECUTIVE
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
David R. Weinreb
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
THE HOWARD HUGHES CORPORATION
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    

 

B-3

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