Document:

EXHIBIT 10.6(d)

 

THE TRADE DESK, INC.

 

EXERCISE NOTICE

 

The Trade Desk, Inc.

Attention: Stock Administration

 

1.                                      Exercise of Option(s).  Effective as of today,            , 20  , the undersigned (the “Participant”) hereby elects to exercise one or more of the Participant’s options (each, an “Option”) to purchase shares of the Common Stock (the “Shares”) of The Trade Desk, Inc. (the “Company”), under and pursuant to the applicable Company equity plan identified below (each, a “Plan”) and the applicable Stock Option Agreement identified below (each, an “Option Agreement”).  Capitalized terms used herein without definition shall have the meanings given in the applicable Option Agreement.

 

OPTION GRANT TABLE

 

	
Grant
   ID
   Number
    	
 
    	
Date of
   Grant
    	
 
    	
Vesting
   Start
   Date
    	
 
    	
Applicable
   Plan(1)
   (2010 Plan
   or 2015
   Plan)
    	
 
    	
Type of
   Option
   (ISO or
   NSO)
    	
 
    	
Number
   of Shares
   for Which
   Option is
   Exercised
    	
 
    	
Remaining
   Option
   Shares
    	
 
    	
Per Share
   Exercise
   Price
    	
 
    	
Total
   Option
   Exercise
   Price
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
AGGREGATE EXERCISE PRICE:
    	
 
    	
 
    	
 
    

 

(1) 2010 Plan refers to the Company’s 2010 Stock Plan and 2015 Plan refers to the Company’s 2015 Equity Incentive Plan, each as amended from time to time.

 

	
Certificate(s) (if any) to   be issued in name of:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cash Payment delivered herewith:
    	
 
    	
o
    	
 
    	
$            
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Other form of consideration delivered herewith   (only if approved by the Administrator):
    	
 
    	
o
    	
 
    	
Form of Consideration:
   $            
    

 

2.                                      Representations of the Participant.  The Participant acknowledges that the Participant has received, read and understood the applicable Plan(s) and Option Agreement(s).  The Participant agrees to abide by and be bound by their terms and conditions.

 

3.                                      Rights as Stockholder.  Until the stock certificate evidencing Shares purchased pursuant to the

 

 

exercise of the Option(s) is issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company) or the Shares purchased pursuant to the exercise of the Option(s) are entered into the Company’s records in book entry form (as applicable), no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to Shares subject to the Option(s), notwithstanding the exercise of the Option(s).  The Company shall issue (or cause to be issued) such stock certificate with respect to the Shares subject to the Option(s) or shall enter (or cause to be entered) such Shares into the Company’s records in book entry form, in either case, promptly after the Option(s) are exercised.  No adjustment will be made for a dividend or other right for which the record date is prior to the date the stock certificate is issued or the Shares are entered into the Company’s records in book entry form (as applicable), except as otherwise provided in the applicable Plan.  The Participant shall enjoy rights as a stockholder until such time as the Participant disposes of the Shares, subject to the terms and conditions of the applicable Plan.

 

4.                                      The Participant’s Rights to Transfer Shares. Without limiting the generality of any other provision hereof, the Participant hereby expressly acknowledges that (i) Sections 10(h) (“Lock-Up Period”), 10(i) (“Right of First Refusal”) and 10(j) (“Take-Along Rights”) of the 2015 Plan and (ii) Sections 7 (“Right of Repurchase”), 8 (“Consent for Transfers; Right Of First Refusal”) and 12 (“Restrictions On Transfer”) of the 2010 Plan, in each case, as applicable, are expressly incorporated into this Agreement and are applicable to the Shares acquired by the Participant under the applicable Plan.

 

5.                                      Transfer Restrictions.  Any transfer or sale of the Shares is further subject to restrictions on transfer imposed by any applicable state and federal securities laws.  Any transfer or attempted transfer of any of the Shares not in accordance with the terms of this Agreement, and/or applicable law shall be void and the Company may enforce the terms of this Agreement by stop transfer instructions or similar actions by the Company and its agents or designees.

 

6.                                      Tax Consultation.  The Participant understands that the Participant may suffer adverse tax consequences as a result of the Participant’s purchase or disposition of the Shares.  The Participant represents that the Participant has consulted with any tax consultants the Participant deems advisable in connection with the purchase or disposition of the Shares and that the Participant is not relying on the Company for any tax advice.

 

7.                                      Restrictive Legends and Stop-Transfer Orders.

 

(a)                                 Legends.  The Participant understands and agrees that the Company shall cause the legends set forth below or legends substantially equivalent thereto, to be placed upon any certificate(s), if any, evidencing ownership of the Shares together with any other legends that may be required by state or federal securities laws:

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED OR HYPOTHECATED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER THE ACT AND SUCH LAWS OR AN OPINION OF COUNSEL, IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITIES AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.

 

 

THE SHARES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, ASSIGNED, TRANSFERRED, ENCUMBERED OR IN ANY MANNER DISPOSED OF, EXCEPT IN COMPLIANCE WITH THE TERMS OF A WRITTEN STOCK OPTION AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER OF THE SHARES (OR THE PREDECESSOR IN INTEREST TO THE SHARES).  SUCH STOCK OPTION AGREEMENT GRANTS TO THE ISSUER OF THESE SHARES CERTAIN RIGHTS OF FIRST REFUSAL UPON AN ATTEMPTED TRANSFER OF THE SHARES AND CERTAIN REPURCHASE RIGHTS UPON TERMINATION OF SERVICE WITH THE ISSUER.  THE SECRETARY OF THE ISSUER WILL UPON WRITTEN REQUEST FURNISH A COPY OF SUCH STOCK OPTION AGREEMENT TO THE HOLDER HEREOF WITHOUT CHARGE.

 

(b)                                 Stop-Transfer Notices.  The Participant agrees that, in order to ensure compliance with the restrictions referred to herein, the Company may issue appropriate “stop transfer” instructions to its transfer agent, if any, and that, if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records.

 

(c)                                  Refusal to Transfer.  The Company shall not be required (i) to transfer on its books any Shares that have been sold or otherwise transferred in violation of any of the provisions of this Agreement or (ii) to treat as owner of such Shares or to accord the right to vote or pay dividends to any purchaser or other transferee to whom such Shares shall have been so transferred.

 

8.                                      Successors and Assigns.  The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the successors and assigns of the Company.  Subject to the restrictions on transfer herein set forth, this Agreement shall be binding upon the Participant and his or her heirs, executors, administrators, successors and assigns.

 

9.                                      Interpretation.  The Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under this Agreement.

 

10.                               Governing Law; Severability.  This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware excluding that body of law pertaining to conflicts of law.  Should any provision of this Agreement be determined by a court of law to be illegal or unenforceable, the other provisions shall nevertheless remain effective and shall remain enforceable.

 

11.                               Notices.  Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given upon personal delivery or upon deposit in the United States mail by certified mail, with postage and fees prepaid, addressed to the other party at its address as shown below beneath its signature, or to such other address as such party may designate in writing from time to time to the other party.

 

12.                               Further Instruments.  The Participant hereby agrees to execute such further instruments and to take such further action as may be reasonably necessary to carry out the purposes and intent of this Agreement including, without limitation, the Investment Representation Statement in the form attached hereto as Exhibit A.

 

13.                               Delivery of Payment.  The Participant herewith delivers to the Company the full Exercise Price for the Shares, as well as any applicable withholding tax.  Payment of the Aggregate Exercise Price shall be made in accordance with Section 5 of the applicable Option Agreement.

 

14.                               Entire Agreement.  The Plan(s) and Option Agreement(s) are incorporated herein by reference.

 

 

This Agreement, the Plan(s), the Option Agreement(s) and the Investment Representation Statement constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and the Participant with respect to the subject matter hereof.

 

	
 
    	
Submitted by:
    
	
 
    	
 
    
	
 
    	
PARTICIPANT
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Participant
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Address:
    	
 
    
	
 
    	
 
    	
 
    

 

 

EXHIBIT A

 

INVESTMENT REPRESENTATION STATEMENT

 

	
PARTICIPANT
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
COMPANY
    	
:
    	
The Trade Desk, Inc.
    
	
 
    	
 
    	
 
    
	
SECURITY
    	
:
    	
Common Stock
    
	
 
    	
 
    	
 
    
	
AMOUNT
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
DATE
    	
:
    	
 
    

 

In connection with the purchase of the above-listed shares of Common Stock (the “Securities”) of The Trade Desk, Inc. (the “Company”), the undersigned (the “Participant”) represents to the Company the following:

 

(a)                                 The Participant is aware of the Company’s business affairs and financial condition and has acquired sufficient information about the Company to reach an informed and knowledgeable decision to acquire the Securities.  The Participant is acquiring these Securities for investment for the Participant’s own account only and not with a view to, or for resale in connection with, any “distribution” thereof within the meaning of the Securities Act of 1933, as amended (the “Securities Act”).

 

(b)                                 The Participant acknowledges and understands that the Securities constitute “restricted securities” under the Securities Act and have not been registered under the Securities Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of the Participant’s investment intent as expressed herein.  The Participant understands that, in the view of the Securities and Exchange Commission, the statutory basis for such exemption may be unavailable if the Participant’s representation was predicated solely upon a present intention to hold these Securities for the minimum capital gains period specified under tax statutes, for a deferred sale, for or until an increase or decrease in the market price of the Securities, or for a period of one year or any other fixed period in the future.  The Participant further understands that the Securities must be held indefinitely unless they are subsequently registered under the Securities Act or an exemption from such registration is available.  The Participant further acknowledges and understands that the Company is under no obligation to register the Securities.  The Participant understands that the certificate evidencing the Securities will be imprinted with a legend which prohibits the transfer of the Securities unless they are registered or such registration is not required in the opinion of counsel satisfactory to the Company and any other legend required under applicable securities laws or agreements.

 

(c)                                  The Participant is familiar with the provisions of Rule 701 and Rule 144, each promulgated under the Securities Act, which, in substance, permit limited public resale of “restricted securities” acquired, directly or indirectly from the issuer thereof, in a non-public offering subject to the satisfaction of certain conditions.  Rule 701 provides that if the issuer qualifies under Rule 701 at the time of the grant of the Option(s) to the Participant, the exercise(s) will be exempt from registration under the Securities Act.  In the event the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), ninety (90) days thereafter (or such longer period as any market stand-off agreement may require) the Securities exempt under Rule 701 may under present law be resold, subject to the satisfaction of certain of the conditions specified by Rule 144, including:  (1) the resale being made through a broker in an unsolicited “broker’s transaction” or in transactions directly with a market maker (as this term is defined under the Exchange Act); and, in the case of an affiliate, (2) the availability of certain public information about the Company, (3) the amount of Securities being sold during any three (3)-month period not exceeding the limitations

 

 

specified in Rule 144(e), and (4) the timely filing of a Form 144, if applicable.  In the event that the Company does not qualify under Rule 701 at the time of grant of the Option(s), then the Securities may be resold in certain limited circumstances subject to the provisions of Rule 144, which requires the resale to occur not less than six months, or, in the event the Company is not subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, not less than one year, after the later of the date the Securities were sold by the Company or the date the Securities were sold by an affiliate of the Company, within the meaning of Rule 144; and, in the case of acquisition of the Securities by an affiliate, the satisfaction of the conditions set forth in sections (1), (2), (3) and (4) of the paragraph immediately above or, in the case of a non-affiliate who subsequently holds the Securities less than one year, the satisfaction of the conditions set forth in section (2) of the paragraph immediately above.

 

(d)                                 The Participant further understands that in the event all of the applicable requirements of Rule 701 or 144 are not satisfied, registration under the Securities Act, compliance with Regulation A, or some other registration exemption will be required; and that, notwithstanding the fact that Rules 144 and 701 are not exclusive, the Staff of the Securities and Exchange Commission has expressed its opinion that persons proposing to sell private placement securities other than in a registered offering and otherwise than pursuant to Rules 144 or 701 will have a substantial burden of proof in establishing that an exemption from registration is available for such offers or sales, and that such persons and their respective brokers who participate in such transactions do so at their own risk.  The Participant understands that no assurances can be given that any such other registration exemption will be available in such event.

 

	
 
    	
 
    	
 
    	
Signature of the Participant:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Participant
    
	
 
    	
 
    	
 
    	
 
    
	
Date: 
    	
                    ,EXHIBIT 10.9

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (this “Agreement”), dated as of January 28, 2016 (the “Effective Date”), is entered into by and between The Trade Desk, Inc. (the “Company”), and Jeff Green (“Executive”).

 

WHEREAS, Executive is currently employed by the Company; and

 

WHEREAS, effective as of the Effective Date, the Company desires to continue to employ Executive and Executive desires to accept such continued employment, upon the terms and subject to the conditions set forth in this Agreement.

 

NOW, THEREFORE, in consideration of the mutual agreements set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

 

1.                                      At-Will Employment.  Executive’s employment with the Company under this Agreement is “at-will” and is not for a specified period of time.  Subject to the Company’s obligations under Section 6 hereof, either Executive or the Company may terminate Executive’s employment at any time and for any reason or no reason.  The at-will nature of this employment relationship cannot be changed except in a writing signed by Executive and an authorized officer of the Company.  The period of Executive’s employment with the Company under this Agreement is referred to herein as the “Term”.  For the avoidance of doubt, the provisions of Section 7 and 8 below shall survive any termination of the Term and/or this Agreement.

 

2.                                      Position and Duties.  During the Term, Executive shall initially serve as Chief Executive Officer of the Company, and shall serve in such other or additional positions as the Company may determine from time to time.  Executive shall perform such duties as are usual and customary for Executive’s position(s) and shall devote Executive’s full business time to the business and affairs of the Company, its subsidiaries and its affiliates as is necessary to perform the services required hereunder. Executive shall not engage in any other employment, occupation, consulting or other business activity during the Term. Notwithstanding the foregoing, during the Term, it shall not be a violation of this Agreement for Executive to: (i) serve on boards, committees or similar bodies of charitable or nonprofit organizations, or engage in charitable activities, or (ii) fulfill limited teaching, speaking and writing engagements, in each case, so long as such activities do not, individually or in the aggregate, materially interfere or conflict with the performance of Executive’s duties and responsibilities under this Agreement.  Executive agrees to observe and comply with the rules and policies of the Company, as in effect from time to time, including, and without limitation, any rules and policies relating to Executive’s obligations to the Company upon a termination of employment.

 

3.                                      Location.  During the Term, Executive shall perform the services required by this Agreement at the Company’s offices in Ventura, California, or such other location as the Company shall determine, except for travel to other locations as may be necessary to fulfill Executive’s duties and responsibilities hereunder.

 

 

4.                                      Compensation and  Benefits; Expenses.

 

(a)                                 Base Salary.  During the Term, Executive shall receive a base salary (the “Base Salary”) of $400,000 per year.  The Base Salary shall be reviewed annually by the Board of Directors of the Company (the “Board”) and may be increased (but not reduced) from time to time by the Board in its sole discretion.  The Base Salary shall be paid in accordance with the Company’s customary payroll practices, as in effect from time to time, but no less often than monthly.

 

(b)                                 Cash Incentive Programs.

 

(i)                                     Executive will be eligible to participate in the Company’s cash incentive programs made available generally to senior executives of the Company, as in effect from time to time (any such incentive, a “Cash Incentive”), provided that the terms and conditions on which Executive participates in any such Cash Incentive program(s) shall be determined by the Board in its sole discretion.  With respect to calendar year 2016, Executive will participate in an uncapped Cash Incentive program under which incentives are determined as a percentage of the Company’s Net Revenue (as defined below) for calendar year 2016, but only if the Company achieves the applicable Gross Managed Revenue (as defined below) targets for such calendar year, as follows:

 

	
If the Company’s Gross Managed
   Revenue for the calendar year
   2016 equals:
    	
 
    	
Then Executive’s Cash Incentive
   for calendar year 2016 will equal
   the following percentage of the
   Company’s Net Revenue for such
   calendar year:
    	
 
    
	
$500,000,000 or   less
    	
 
    	
0.0000
    	
%
    
	
$600,000,000
    	
 
    	
0.0700
    	
%
    
	
$700,000,000
    	
 
    	
0.1200
    	
%
    
	
$800,000,000
    	
 
    	
0.1700
    	
%
    
	
$900,000,000
    	
 
    	
0.2200
    	
%
    
	
$1,000,000,000   or more
    	
 
    	
0.2400
    	
%
    

 

If the Company’s Gross Managed Revenue for calendar year 2016 exceeds $500,000,000, but falls between any two of the Gross Managed Revenue targets set forth above, then Executive’s Cash Incentive for calendar year 2016 (the “2016 Cash Incentive”) will be determined by straight-line interpolation between the Net Revenue percentages applicable to such Gross Managed Revenue targets.

 

(ii)                                  Any 2016 Cash Incentive will be paid to Executive in quarterly installments during calendar year 2016, with actual payments made no later than sixty (60) days after the end of the relevant calendar quarter, subject to Executive’s continued employment with the Company through the end of such calendar quarter.  Quarterly 2016 Cash Incentive installments will be earned during the applicable calendar quarter based on actual Gross Managed Revenue for such calendar quarter; provided, that the Company may, as determined by the Board in its sole discretion, pay quarterly amounts in excess of applicable Gross Managed Revenue attainment for the calendar quarter based on the Board’s good-faith estimate of annual

 

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Gross Managed Revenue (but, for the avoidance of doubt, the Company shall have no obligation to do so).  If the Company pays any quarterly 2016 Cash Incentive in excess of the amount payable based on actual Gross Managed Revenue attainment for such calendar quarter, any such excess amount shall, to the extent determined by the Board, reduce the amount of any future quarterly installment as necessary to cause the actual annual amount of such Cash Incentive to correspond to the foregoing table.  The Board may review and revise or terminate the 2016 Cash Incentive program from time to time (including in connection with a Change in Control (as defined below)), in its sole discretion, provided that any such change shall not adversely impact any 2016 Cash Incentive earned by Executive prior to such change. In the event of a conflict between the terms of the 2016 Cash Incentive program and the provisions contained in any formal bonus plan adopted by the Company, the provisions of the formal bonus plan will control.

 

(iii)                               For purposes of this Agreement, “Gross Managed Revenue” shall mean, with respect to any calendar year, the Company’s total gross managed revenue during such year; and “Net Revenue” shall mean, with respect to any calendar year, the Company’s total Gross Managed Revenue less the total cost of media and data during such year.

 

(c)                                  Benefits; Paid Time Off.  During the Term, Executive will be eligible to participate in the health, welfare and retirement benefit plans, policies and programs (including, as applicable, medical, dental, disability, life and accidental death insurance plans and programs) and any vacation or paid-time-off policies or programs, in each case, as maintained by the Company for the benefit of its senior executives from time to time.  Executive shall be entitled to participate in any Company paid-time-off program applicable to its senior executives, as in effect from time to time.  Nothing contained in this Section 4(c) shall create or be deemed to create any obligation on the part of the Company to adopt or maintain, or restrict the Company’s ability to amend or terminate,  any health, welfare, retirement, fringe or other benefit plan(s) or program(s) at any time.

 

(d)                                 Expenses.  During the Term, Executive shall be entitled to receive prompt reimbursement for all ordinary and necessary business expenses incurred by Executive in the performance of Executive’s services hereunder, to the extent incurred and substantiated in accordance with the policies, practices and procedures of the Company applicable to its senior executives, as in effect from time to time.

 

(e)                                  Stock Option.  Subject to approval by the Board, the Company will grant Executive, during the fourth calendar quarter of 2015 (and subject to Executive’s continued employment with the Company through the grant date), under the Company’s 2015 Equity Incentive Plan (the “Plan”), an incentive stock option to purchase 137,310  shares of Company common stock (an “Option”), with an exercise price equal to $1.232 per share, which is at least equal to the fair market value of the shares of Company common stock underlying the Option on the grant date.  Subject to Executive’s continued employment with the Company through the applicable vesting date, the Option will vest and become exercisable with respect to one-forty-eighth (1/48th) of the shares subject thereto on each monthly anniversary of January 1, 2016.  Notwithstanding the foregoing, if the Company experiences a Change in Control (as defined in the Plan) prior to the full vesting (or forfeiture) of the Option and Executive’s employment is terminated by the Company without Cause (as defined below) within three (3) months prior to the consummation of such Change in Control, then, subject to Section 6(b) below, one hundred 

 

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percent (100%) of any then-unvested portion of the Option will vest and become exercisable immediately prior to such Change in Control.  In addition, (i) if the Company experiences a Change in Control (as defined in the Plan) prior to the full vesting (or forfeiture) of the Option and Executive remains employed by the Company through at least immediately prior to such Change in Control, fifty percent (50%) of any then-unvested portion of the Option shall vest immediately prior to such Change in Control, and (ii) if the Company experiences a Change in Control (as defined in the Plan) prior to the full vesting (or forfeiture) of the Option and Executive’s employment is terminated by the Company without Cause within two (2) years following the consummation of such Change in Control, subject to and conditioned upon Executive’s timely execution and non-revocation of a Release (as defined below), one hundred percent (100%) of any then-unvested portion of the Option will vest in full and become exercisable upon the effectiveness of the Release.  Each Option will be subject in all respects to the terms and conditions set forth in the Plan and in an award agreement to be entered into between the Company and Executive, which will evidence the grant of the Option (each, an “Option Agreement”).

 

5.                                      Termination of Employment. Executive’s employment may be terminated at any time by the Company, for Cause (as defined below) or without Cause, and Executive may resign for any reason, each in accordance with the terms of this Agreement.  For purposes of this Agreement, “Cause” shall mean the occurrence of one or more of the following:

 

a.                                      Executive’s conviction of or plea of no contest to a felony or a crime involving any financial dishonesty against the Company;

 

b.                                      Executive’s willful misconduct that causes material harm or loss to the Company, including, but not limited to, misappropriation or conversion of Company assets;

 

c.                                       Executive’s gross negligence or refusal or willful failure to act in accordance with any specific lawful direction or order of the Company (or a parent or subsidiary of the Company) which causes material harm or loss to the Company (and Executive’s failure to cure the same, to the extent capable of cure, within ten (10) days of receiving written notice from the Company (or any acquirer or successor));

 

d.                                      Executive’s material breach of any agreement with the Company (or a parent or subsidiary of the Company) which causes material harm or loss to the Company (and Executive’s failure to cure the same, to the extent capable of cure, within ten (10) days of receiving written notice from the Company (or any acquirer or successor)); or

 

e.                                       Executive’s unauthorized use or disclosure of the Company’s confidential information or trade secrets, which use or disclosure causes material harm to the Company.

 

6.                                      Obligations of the Company Upon Termination.

 

(a)                                 Accrued Obligations.  If Executive’s employment under this Agreement terminates during the Term for any reason, upon such termination, the Company will pay to Executive in a single lump-sum payment, within thirty (30) days after the Date of Termination (as defined below), or such earlier date as may be required by applicable law, the aggregate 

 

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amount of (i) any earned but unpaid Base Salary, (ii) unreimbursed business expenses incurred prior to the Date of Termination that are reimbursable in accordance with Section 4(d) above, and (iii) accrued, unused vacation through the Termination Date (if any) (together, the “Accrued Obligations”).  Vested benefits (if any) under any employee benefit plans shall be governed by the terms and conditions of the applicable plans.

 

(b)                                 Termination by the Company Without Cause.  If, during the Term, the Company terminates Executive’s employment without Cause, upon Executive’s “separation from service” from the Company (within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”)) (a “Separation from Service” and, the date of any such Separation from Service, the “Termination Date”), subject to and conditioned upon Executive’s timely execution and non-revocation of a general release of claims substantially in the form attached hereto as Exhibit A (the “Release”) and Executive’s continued compliance with the provisions of Section 7 below (the “Restrictions”), Executive will be entitled to receive the payments and benefits set forth below:

 

(i)                                     The Company shall continue to pay to Executive his then-current Base Salary (the “Severance”) during the period commencing on the Termination Date and ending on the four (4)-month anniversary of the Termination Date (the “Severance Period”). The Company shall pay the Severance in substantially equal installments in accordance with the Company’s normal payroll practices during the Severance Period; provided, that no Severance payments shall be made prior to the date on which the Release becomes effective and irrevocable, and if the aggregate period during which Executive is entitled to consider and/or revoke the Release spans two (2) calendar years, no payments under this Section 6(b)(i) shall be made prior to the beginning of the second (2nd) such calendar year (and any payments otherwise payable prior thereto (if any) shall instead be paid on the first regularly scheduled Company payroll date occurring in the latter such calendar year); and

 

(ii)                                  (A) If the Termination Date occurs within two (2) years following a Change in Control, one hundred percent (100%) of any then-unvested portion of the Option (to the extent then-outstanding) will vest and become exercisable upon the effectiveness of the Release (and shall, following such termination, remain outstanding and eligible to vest on such date of the Release has become effective and irrevocable); and (B) if the Termination Date occurs prior to the occurrence of a Change in Control, one hundred percent (100%) of any then-unvested portion of the Option held by Executive as of the Termination Date shall remain outstanding and eligible to vest upon the occurrence of a Change in Control (in accordance with Section 4(e) above) and shall automatically terminate on the earlier of the three (3)-month anniversary of the Termination Date (to the extent such Option does not become vested in accordance with Section 4(e) above on or prior to such three (3)-month anniversary) or any expiration date that would apply to the Option had Executive remained employed with the Company.

 

Notwithstanding the foregoing, upon any breach by Executive of any of the Restrictions on or following the Termination Date, (x) any unpaid portion of the Severance shall cease to be payable and shall be forfeited by Executive upon such breach, (y) any unexercised portion of the Option shall be immediately forfeited, and (z) any Severance amounts paid to Executive on or after the date of any such breach shall be repaid by Executive to the Company immediately upon

 

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demand therefor.

 

(c)                                  Other Terminations.  If Executive’s employment is terminated for any reason not described in Section 6(b) above (including, without limitation, due to a termination of Executive’s employment by the Company for Cause, by Executive for any reason or due to Executive’s death or disability), the Company will pay Executive only the Accrued Obligations in accordance with Section 6(a) above.

 

(d)                                 Six-Month Delay.  Notwithstanding anything to the contrary in this Agreement, no compensation or benefits, including without limitation any severance payments under Section 6 hereof, shall be paid to Executive during the six (6)-month period following Executive’s Separation from Service if the Company determines that paying such amounts at the time or times indicated in this Agreement would be a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code.  If the payment of any such amounts is delayed as a result of the previous sentence, then on the first business day following the end of such six (6)-month period (or such earlier date upon which such amount can be paid under Section 409A of the Code without resulting in a prohibited distribution, including as a result of Executive’s death), the Company shall pay Executive a lump-sum amount equal to the cumulative amount that would have otherwise been payable to Executive during such period (without interest).

 

(e)                                  Termination of Offices and Directorships; Full Settlement.  Upon termination of Executive’s employment for any reason, unless otherwise specified in a written agreement between Executive and the Company, Executive shall be deemed to have resigned from all offices, directorships, and other employment positions then held with the Company or its affiliates, if any, and shall take all actions reasonably requested by the Company to effectuate the foregoing. Except as expressly provided in this Agreement, the Company shall have no further obligations, and Executive shall have no further rights or entitlements, in connection with or following Executive’s termination of employment.

 

(f)                                   Obligations of Executive Upon Termination.  Upon termination of Executive’s employment for any reason, Executive shall return to the Company (i) all keys, files, records (and copies thereof), equipment (including, but not limited to, computer hardware, software and printers, wireless handheld devices, cellular phones and pagers), access or credit cards, Company identification, and any other Company-owned property in Executive’s possession or control, and (ii) all documents and copies, including hard and electronic copies, of documents in Executive’s possession relating to any Confidential Information (as defined below) including without limitation, internal and external business forms, manuals, correspondence, notes and computer programs, and Executive shall not make or retain any copy or extract of any of the foregoing.

 

7.                                      Restrictive Covenants.

 

(a)                                 Confidentiality Agreement.  Executive acknowledges and agrees that, concurrently with the execution of this Agreement, Executive is entering into an agreement with the Company containing certain intellectual property assignment, confidentiality, non-solicitation provisions in the form attached hereto as Exhibit B (the “Confidentiality Agreement”). Executive acknowledges and agrees that Executive shall remain bound by, and comply with 

 

6

 

Executive’s obligations under, the Confidentiality Agreement.

 

(b)                                 Continuing Operation, Survival.  Except as specifically provided in this Section 7, none of the termination of Executive’s employment, the Term or this Agreement will have any effect on the continuing operation of this Section 7, and this Section 7 shall continue to apply in accordance with its terms during and after Executive’s employment with the Company, whether or not any other provisions of this Agreement remain in effect at such time.

 

8.                                      Arbitration.

 

(a)                                 Any controversy or dispute that establishes a legal or equitable cause of action (“Arbitration Claim”) between any two or more Persons Subject to Arbitration (defined below), including without limitation any controversy or dispute, whether based on contract, common law, or federal, state or local statute or regulation, arising out of, or relating to Executive’s employment or the termination thereof, shall be submitted to final and binding arbitration as the sole and exclusive remedy for such controversy or dispute.  Notwithstanding the foregoing, this Agreement shall not require any Person Subject to Arbitration to arbitrate pursuant to this Agreement any claims: (i) under a Company benefit plan subject to the Employee Retirement Income Security Act, as amended; or (ii) as to which applicable law not preempted by the Federal Arbitration Act prohibits resolution by binding arbitration.  Either party may seek provisional non-monetary remedies in a court of competent jurisdiction to the extent that such remedies are not available or not available in a timely fashion through arbitration.  It is the parties’ intent that issues of arbitrability of any dispute shall be decided by the arbitrator.

 

(b)                                 “Persons Subject to Arbitration” means, individually and collectively, (i) Executive, (ii) any person in privity with or claiming through, on behalf of or in the right of Executive, (iii) the Company, (iv) any past, present or future affiliate, employee, officer, director or agent of the Company, and/or (v) any person or entity alleged to be acting in concert with or to be jointly liable with any of the foregoing.

 

(c)                                  The arbitration shall take place before a single neutral arbitrator at the JAMS office in Los Angeles, California.  Such arbitrator shall be provided through JAMS by mutual agreement of the parties to the arbitration; provided that, absent such agreement, the arbitrator shall be selected in accordance with the rules of JAMS then in effect.  The arbitrator shall permit reasonable discovery.  The arbitration shall be conducted in accordance with the JAMS rule applicable to employment disputes in effect at the time of the arbitration.  The award or decision of the arbitrator shall be rendered in writing; shall be final and binding on the parties; and may be enforced by judgment or order of a court of competent jurisdiction.

 

(d)                                 In the event of arbitration relating to this Agreement, the non-prevailing party shall reimburse the prevailing party for all costs incurred by the prevailing party in connection with such arbitration (including, without limitation, reasonable legal fees in connection with such arbitration, including any litigation or appeal therefrom).

 

(e)                                  WAIVER OF TRIAL BY JURY OR COURT.  EXECUTIVE AND THE COMPANY UNDERSTAND THAT BY AGREEING TO ARBITRATE ANY ARBITRATION 

 

7

 

CLAIM, THEY WILL NOT HAVE THE RIGHT TO HAVE ANY ARBITRATION CLAIM DECIDED BY A JURY OR A COURT, BUT SHALL INSTEAD HAVE ANY ARBITRATION CLAIM DECIDED THROUGH ARBITRATION.

 

(f)                                   WAIVER OF OTHER RIGHTS.  EXECUTIVE AND THE COMPANY WAIVE ANY CONSTITUTIONAL OR OTHER RIGHTS OT BRING CLAIMS COVERED BY THIS AGREEMENT OTHER THAN IN THEIR INDIVIDUAL CAPACITIES.  EXCEPT AS MAY BE PROHIBITED BY LAW, THIS WAIVER INCLUDES THE ABILITY TO ASSERT CLAIMS AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS OR REPRESENTATIVE PROCEEDING.

 

(g)                                  This Section 8 shall be interpreted to conform to any applicable law concerning the terms and enforcement of agreements to arbitrate employment disputes.  To the extent any terms or conditions of this Section 8 would preclude its enforcement, such terms shall be severed or interpreted in a manner to allow for the enforcement of this Section 8.  To the extent applicable law imposes additional requirements to allow enforcement of this Section 8, this Agreement shall be interpreted to include such terms or conditions.

 

9.                                      Successors.  This Agreement is personal to Executive and, without the prior written consent of the Company, shall not be assignable by Executive otherwise than by will or the laws of descent and distribution.  This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns.

 

10.                               Notice.  For the purposes of this Agreement, notices, demands and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when delivered either personally, by reputable overnight courier or by United States certified or registered mail, return receipt requested, postage prepaid, addressed as follows:

 

If to Executive:

At Executive’s last known address

evidenced on the Company’s

payroll records.

 

If to the Company:

The Trade Desk, Inc.

42 N. Chestnut Street

Ventura, California 93001

Attn:                    Chief Financial Officer

 

or to such other address as any party may have furnished to the other in writing in accordance with this Agreement, except that notices of change of address shall be effective only upon receipt.

 

11.                               Section 409A.

 

(a)                                 To the extent applicable, this Agreement shall be interpreted in accordance with Section 409A of the Code and Department of Treasury regulations and other interpretative

 

8

 

guidance issued thereunder, including without limitation any such regulations or other such guidance that may be issued after the Effective Date (collectively, “Section 409A”).  Notwithstanding any provision of this Agreement to the contrary, in the event that following the Effective Date, the Company determines that any compensation or benefits payable under this Agreement may be subject to Section 409A, the Company may adopt such amendments to this Agreement or adopt other policies or procedures (including amendments, policies and procedures with retroactive effect), or take any other actions that the Company determines are necessary or appropriate to preserve the intended tax treatment of the compensation and benefits payable hereunder, including without limitation actions intended to (i) exempt the compensation and benefits payable under this Agreement from Section 409A, and/or (ii) comply with the requirements of Section 409A, provided, that this Section 11 does not, and shall not be construed so as to, create any obligation on the part of the Company to adopt any such amendments, policies or procedures or to take any other such actions.  In no event shall the Company, its affiliates or any of their respective officers, directors or advisors be liable for any taxes, interest or penalties imposed under Section 409A or any corresponding provision of state or local law.

 

(b)                                 Any right to a series of installment payments pursuant to this Agreement, including without limitation the Severance, is to be treated as a right to a series of separate payments.  To the extent permitted under Section 409A, any separate payment or benefit under this Agreement or otherwise shall not be deemed “nonqualified deferred compensation” subject to Section 409A to the extent provided in the exceptions in Treasury Regulation Section 1.409A-1(b)(4), Section 1.409A-1(b)(9) or any other applicable exception or provision of Section 409A.

 

12.                               Withholding.  All payments hereunder will be subject to any required withholding of federal, state and local taxes pursuant to any applicable law or regulation and the Company and its affiliates shall be entitled to withhold any and all such taxes from amounts payable hereunder.

 

13.                               Amendment; Waiver; Survival.  No provisions of this Agreement may be amended, modified, or waived unless agreed to in writing and signed by Executive and by a duly authorized officer of the Company.  No waiver by either party of any breach by the other party of any condition or provision of this Agreement shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.  The respective rights and obligations of the parties under this Agreement shall survive Executive’s termination of employment and the termination of this Agreement to the extent necessary for the intended preservation of such rights and obligations.

 

14.                               Governing Law.  The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of California without regard to its conflicts of law principles.

 

15.                               Validity.  The invalidity or unenforceability of any provision or provisions of this Agreement will not affect the validity or enforceability of any other provision of this Agreement, which will remain in full force and effect.

 

16.                               Counterparts.  This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original but all of which together will constitute one and the

 

9

 

same instrument.

 

17.                               Section Headings.  The section headings in this Agreement are for convenience of reference only, and they form no part of this Agreement and will not affect its interpretation.

 

18.                               Entire Agreement.  This Agreement, together with the Option Agreement and the Confidentiality Agreement, sets forth the final and entire agreement of the parties with respect to the subject matter hereof and supersedes all prior agreements, promises, covenants, arrangements, communications, representations or warranties, whether oral or written, by the Company and Executive, or any representative of the Company or Executive, with respect to the subject matter hereof (including, without limitation, that certain employment letter agreement between the Company and Executive, dated March 3, 2010).

 

19.                               Further Assurances.  The parties hereby agree, without further consideration, to execute and deliver such other instruments and to take such other action as may reasonably be required to effectuate the terms and provisions of this Agreement.

 

[Signature Page Follows]

 

10

 

Executive hereby represents and warrants to the Company that (a) Executive is entering into this Agreement voluntarily and that the performance of Executive’s duties and responsibilities with the Company will not violate any agreement between Executive and any other person, firm, organization or other entity, and (b) Executive is not bound by the terms of any agreement with any previous employer or other party to refrain from competing, directly or indirectly, with the business of such previous employer or other party, in any case, that would be violated by Executive’s entering into this Agreement and/or providing services to the Company pursuant to the terms of this Agreement.

 

IN WITNESS WHEREOF, the parties have executed this Agreement effective the date first above written.

 

	
 
    	
THE TRADE DESK, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Paul Ross
    
	
 
    	
 
    	
Name:
    	
Paul   Ross
    
	
 
    	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
“EXECUTIVE”
    
	
 
    	
 
    
	
 
    	
/s/   Jeff Green
    
	
 
    	
Jeff Green
    

 

11

 

EXHIBIT A

 

GENERAL RELEASE

 

For valuable consideration, the receipt and adequacy of which are hereby acknowledged, the undersigned does hereby release and forever discharge the “Releasees” hereunder, consisting of The Trade Desk, Inc. (the “Company”), and its partners, subsidiaries, associates, affiliates, successors, heirs, assigns, agents, directors, officers, employees, representatives, lawyers, insurers, and all persons acting by, through, under or in concert with them, or any of them, of and from any and all manner of action or actions, cause or causes of action, in law or in equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, damages, losses, costs, attorneys’ fees or expenses, of any nature whatsoever, known or unknown, fixed or contingent (hereinafter called “Claims”), which the undersigned now has or may hereafter have against the Releasees, or any of them, by reason of any matter, cause, or thing whatsoever from the beginning of time to the date hereof.

 

The Claims released herein include, without limiting the generality of the foregoing, any Claims in any way arising out of, based upon, or related to the employment or termination of employment of the undersigned by the Releasees, or any of them; any alleged breach of any express or implied contract of employment; any alleged torts or other alleged legal restrictions on Releasees’ right to terminate the employment of the undersigned; and any alleged violation of any federal, state or local statute or ordinance including, without limitation, Title VII of the Civil Rights Act of 1964, the Age Discrimination In Employment Act, the Americans With Disabilities Act and the California Fair Employment and Housing Act.  Notwithstanding the foregoing, this general release (the “Release”) shall not operate to release any rights or claims of the undersigned (i) to payments or benefits under Section 6 of that certain Employment Agreement, dated as of January 28, 2016, which payments and benefits (among other good and valuable consideration) are provided in exchange for this Release, (ii) to any Claims for indemnification arising under any applicable indemnification obligation of the Company, or (iii) to any Claims which cannot be waived by an employee under applicable law.

 

THE UNDERSIGNED ACKNOWLEDGES THAT THE UNDERSIGNED HAS BEEN ADVISED BY LEGAL COUNSEL AND IS FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS:

 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”

 

THE UNDERSIGNED, BEING AWARE OF SAID CODE SECTION, HEREBY EXPRESSLY WAIVES ANY RIGHTS THE UNDERSIGNED MAY HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT.

 

 

IN ACCORDANCE WITH THE OLDER WORKERS BENEFIT PROTECTION ACT OF 1990, THE UNDERSIGNED IS HEREBY ADVISED AS FOLLOWS:

 

A.                                    THE UNDERSIGNED HAS THE RIGHT TO CONSULT WITH AN ATTORNEY BEFORE SIGNING THIS RELEASE;

 

B.                                    THE UNDERSIGNED HAS [TWENTY-ONE (21)](1) DAYS TO CONSIDER THIS RELEASE BEFORE SIGNING IT.  IF THE UNDERSIGNED SIGNS THIS RELEASE PRIOR TO THE EXPIRATION OF THE [TWENTY-ONE (21)] DAY PERIOD, THE UNDERSIGNED WAIVES THE REMAINDER OF THAT PERIOD.  UNDERSIGNED WAIVES THE RESTARTING OF THE [TWENTY-ONE (21)] DAY PERIOD IN THE EVENT OF ANY MODIFICATION OF THIS RELEASE, WHETHER OR NOT MATERIAL; AND

 

C.                                    THE UNDERSIGNED HAS SEVEN (7) DAYS AFTER SIGNING THIS RELEASE TO REVOKE THIS RELEASE, AND THIS RELEASE WILL BECOME EFFECTIVE UPON THE EXPIRATION OF THAT REVOCATION PERIOD.

 

If the undersigned wishes to revoke this Release, the undersigned must deliver written notice (which may be by email), stating the undersigned’s intent to revoke to [      ], at [       ], on or before 5:00 p.m. (PST) on the seventh (7th) day after the date on which the undersigned signs this Release.  The undersigned acknowledges that if the undersigned revokes this Release, the undersigned will not receive any payments or benefits pursuant to Section 6(b) of the Employment Agreement.

 

The undersigned represents and warrants that there has been no assignment or other transfer of any interest in any Claim which the undersigned may have against Releasees, or any of them, and the undersigned agrees to indemnify and hold Releasees, and each of them, harmless from any liability, Claims, demands, damages, costs, expenses and attorneys’ fees incurred by Releasees, or any of them, as the result of any such assignment or transfer or any rights or Claims under any such assignment or transfer.  It is the intention of the parties that this indemnity does not require payment as a condition precedent to recovery by the Releasees against the undersigned under this indemnity.

 

The undersigned agrees that if the undersigned hereafter commences any suit arising out of, based upon, or relating to any of the Claims released hereunder or in any manner asserts against Releasees, or any of them, any of the Claims released hereunder, then the undersigned agrees to pay to Releasees, and each of them, in addition to any other damages caused to Releasees thereby, all attorneys’ fees incurred by Releasees in defending or otherwise responding to said suit or Claim.

 

The undersigned further understands and agrees that neither the payment of any sum of money nor the execution of this Release shall constitute or be construed as an admission of any

 

(1)  If multiple terminations are contemplated at the time of termination, this may need to be increased to 45 days.

 

 

liability whatsoever by the Releasees, or any of them, who have consistently taken the position that they have no liability whatsoever to the undersigned.

 

IN WITNESS WHEREOF, the undersigned has executed this Release this      day of                     20  .

 

	
 
    	
 
    
	
 
    	
Jeff   Green
    

 

 

EXHIBIT B

 

CONFIDENTIALITY AGREEMENT

 

[Intentionally omitted.]

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