Document:

Exhibit 10.11.1

 

August 28, 2014

 

Sameer Dholakia 
 Sameer.dholakia@gmail.com

 

Dear Sameer:

 

On behalf of SendGrid, Inc. (the “Company”), I am pleased to offer you employment in the position of Chief Executive Officer of the Company. This letter sets out the terms of your employment with the Company, which will start on or around October 1, 2014. You will be paid a starting base salary of $29,166 per month ($350,000 per year), less applicable tax and other withholdings payable in accordance with the Company’s normal payroll procedure. You will also be eligible for an annual bonus of $150,000 (pro-rated for 2014) based upon your achievement of milestones established by the Board. Your reasonable travel expenses will be covered by the Company, including a corporate apartment in Colorado if appropriate.

 

You will also be eligible to participate in various Company benefit plans, including group health insurance, 401(k), and vacation programs in accordance with the Company’s benefit plans.

 

Within one week of the commencement of your employment a board meeting will be called to vote on your equity grant. Subject to the approval of the Company’s Board of Directors, you will be granted an option to purchase 4.5% of the shares of the Company’s common stock based upon the fully diluted shares outstanding as of your start date (the “Option”) under the Company’s stock option plan at an exercise price equal to the fair market value of that stock on your option grant date, as well as Restricted Stock Units (“RSUs”, the RSUs and Options collectively referred to as “Stock”) equal to 2.0% of the Company’s common stock based upon the fully diluted shares outstanding as of your start date. The Options will provide for an early exercise at your election subject to the repurchase rights of the Company for unvested Options. The Company will work with you on the most tax advantageous alternatives for the RSUs which may include among other things, your purchase of the RSUs with a promissory note issued by the Company payable upon a Change of Control or initial public offering or issuance of the RSUs in consideration for future services rendered. The Stock will vest over a period of four years as follows: one forty-eighth (1/48) of the total number of shares will vest on each monthly anniversary of the start date until all shares have vested, provided that you continue to be employed by the Company at such time. The Stock will be subject to the terms and conditions of the Company’s stock option plan and standard form of stock agreement, which you will be required to sign as a condition of receiving the grant.

 

As is standard practice, all employment at the Company is terminable at will. This means that you will be free to end your employment with the Company at any time for any reason or for no reason. Similarly, the Company may end your employment at any time for any reason, with or without cause. This “at will” nature of your employment may not be changed except in writing and approved by the Board of Directors of the Company. Notwithstanding the foregoing, in the event that your employment is terminated by the Company for other than Cause (as defined below) or you terminate your employment for Good Reason (as defined below), it will be deemed that you have earned all base and bonus compensation that has been earned to date, all vested stock and six months acceleration of unvested stock, as well as an additional six months of your then current base cash compensation and continued health care benefits as severance. “Cause” shall mean your involvement

 

 

in fraud, embezzlement or criminal activity. “Good Reason” shall mean: (i) you are no longer the Chief Executive Officer of the Company; (ii) within 6 months following your start date the Company has not raised a minimum of $15 million of financing, (iii) 20% or greater reduction by the Company or the Board of your current total targeted compensation (base salary and annual bonus); or (iv) you are required to relocate your residence outside of the Silicon Valley area of CA..

 

In addition, in the event of a Change of Control of the Company, your Stock vesting will be treated as follows: you will receive 25% acceleration of the then unvested Stock in conjunction with the Change of Control, and the remaining Stock will vest (or repurchase rights lapse) in an even linear monthly fashion over the subsequent year following the Change of Control. In the Case of a Change of control and subsequent termination without Cause (as defined above) or your termination for Good Reason (“double trigger”), then 100% of the unvested Stock would accelerate immediately (and all repurchase rights shall lapse). For the purposes of this offer letter, the term “Change in Control” shall have the meanings defined under the Company’s stock option Plan provided that the acceleration provisions in this paragraph shall not apply in the event that the Change of Control is solely a merger, consolidation or similar transaction where immediately thereafter the then current controlling shareholders of the Company continue to control the Company and you continue to be the CEO of the Company.

 

As a condition of your employment, you will be required to sign the Company’s standard form of Employee Nondisclosure and Non-Solicitation Agreement, and to provide the Company with documents establishing your identity and right to work in the United States. Those documents must be provided to the Company within three business days of your employment start date.

 

In addition, the Company reserves the right to conduct a background investigation and/or reference check on all of its potential employees. Your offer of employment is contingent upon satisfactory completion of such background investigation and/or reference check, if any, in the sole discretion of the Company. All such background investigations and/or reference checks shall be conducted in accordance with applicable state and federal laws.

 

By accepting this offer, you agree that throughout your employment, you will observe all the Company’s rules governing conduct of our business and employees, including our policies protecting employees from illegal discrimination and harassment. Employment with the Company is a full-time job, requiring your complete commitment. During the course of your employment, you may not

 

compete with the Company or work for any competing entity, and you must obtain permission in advance from the Company before accepting any outside employment or board membership of any kind.

 

In the event of any dispute or claim relating to or arising out of your employment relationship with the Company, this agreement, or the termination of your employment with the Company for any reason (including, but not limited to, any claims of breach of contract, defamation, wrongful termination or age, sex, sexual orientation, race, color, national origin, ancestry, marital status, religious creed, physical or mental disability or medical condition or other discrimination, retaliation or harassment), you and the Company agree that all such disputes shall be fully resolved by confidential, binding arbitration conducted by a single arbitrator through the American Arbitration Association (“AAA”) under the AAA’s National Rules for the Resolution of Employment Disputes

 

 

then in effect, which are available online at the AAA’s website at www.adr.org or by requesting a copy from the Human Resources Department. You and the Company hereby waive your respective rights to have any such disputes or claims tried before a judge or jury.

 

This agreement, the non-disclosure and stock option agreements referred to above constitute the entire agreement between you and the Company regarding the terms and conditions of your employment, and they supersede all prior or contemporaneous negotiations, representations or agreements between you and the Company. The provisions of this agreement may only be modified by a document signed by you and an authorized officer of the Company.

 

We wish to impress on you that you must not bring to the Company any confidential or proprietary information or material of any former employer, disclose or use such information or material in the course of your employment with the Company, or violate any other obligation to your former employers.

 

Sameer, we look forward to working with you at SendGrid, Inc. Please sign and date this letter on the space provided below to acknowledge your acceptance of the terms of this agreement. This offer will expire if not accepted by 9 am pacific time on August 29th, 2014.

 

	
 
    	
Sincerely,
    
	
 
    	
 
    
	
 
    	
SendGrid, Inc.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Byron   B. Deeter
    
	
 
    	
Byron   Deeter, Member, Board of Directors
    

 

I agree to and accept employment with Company, Inc. on the terms and conditions set forth in this agreement. I understand and agree that my employment with the Company is at-will.

 

	
Date:   August 28, 2014
    	
/s/   Sameer Dholakia
    
	
 
    	
Sameer   DholakiaExhibit 10.11.2

 

April 17, 2015 
 Yancey Spruill

 

Re: Offer of Employment with SendGrid, Inc.

 

Dear Yancey,

 

SendGrid, Inc. (the “Company”) is very pleased to offer you employment as Chief Financial Officer & Chief Operating Officer beginning on a date to be determined in June, 2015. This letter states the complete terms and conditions of your offer, subject to a satisfactory result of a background check. If you agree to these terms and conditions, please sign at the end of this letter in the space indicated.

 

1.                                      Duties. As CFO & COO, you will provide overall strategic and operational direction to multiple line operating units including finance, accounting, business operations and intelligence, and product support. You will assist the CEO and board to ensure attainment of organizational objectives. You will report to Sameer Dholakia, CEO, who will be primarily responsible for evaluating your performance. The Company may change your position, title, duties, and place of employment from time to time as it deems necessary.

 

2.                                      Compensation and Benefits. Beginning on a date to be determined in June 2015, you will be compensated according to the Compensation Plan attached hereto as Exhibit A, and receive benefits according to our enrollment eligibility process. The Company may modify your compensation and benefits from time to time in its sole discretion. In addition, subject to the approval of the Company’s Board of Directors or its Compensation Committee, you will be granted an option to purchase 576,861 shares of the Company’s Common Stock as determined by the Company’s Board of Directors or its Compensation Committee. The exercise price per share will be equal to the fair market value per share of Common Stock on the date the option is granted as determined by the Board of Directors. The option will be subject to the terms, conditions and vesting applicable to options granted under the Company’s 2012 Equity Incentive Plan, as described in that Plan and the applicable grant award documents.

 

3.                                      Company Agreements. One of the conditions of your employment with the Company is the maintenance of the confidentiality of the Company’s proprietary and confidential information. In your work for the Company, you will not use or disclose any confidential information, including trade secrets, of any former company or other person to whom you have an obligation of confidentiality. Rather, you will be expected to use only that information that is generally known and used by persons with training and experience comparable to your own, which is common knowledge in the industry or otherwise legally in the public domain or which is otherwise provided or developed by the Company. While working for the Company from your personal residence or elsewhere, you also should not use any unpublished documents or property belonging to any former Company or other person to whom you have an obligation of confidentiality. During our discussions about your job duties, you assured us that you would be able to perform those duties within the guidelines described above. This offer is conditioned upon you executing the Company’s Employee Proprietary Information and Inventions Agreement upon commencement of your employment.

 

 

4.                                      At-Will Employment. Your employment with the Company will be “at-will.” This means that either you or the Company may terminate your employment at any time, with or without cause, with or without notice, and for any reason or no reason. Any contrary representations or agreements which may have been made to you are superseded by this offer. The “at will” nature of your employment described in this offer letter shall constitute the entire agreement between you and the Company concerning the nature and duration of your employment. Though your job duties, title, compensation, and benefits may change over time, none of these events change our agreement that you are an “at will” employee. In addition, the fact that the rate of your salary or other compensation is stated in units of years or months and that your vacation and sick leave accrue annually or monthly does not alter the at-will nature of your employment, and does not mean and should not be interpreted to mean that you are guaranteed employment for any period time. The “at will” term of your employment with the Company can only be changed in a writing signed by you and the CEO of the Company. Notwithstanding the foregoing, in the event that your employment is terminated by the Company for other than Cause (as defined below) or you terminate your employment for Good Reason (as defined below), your unvested options will accelerate vesting by six months prior to the termination date. In addition, if a Change in Control occurs and as of, or within twelve (12) months after, the effective time of such Change in Control your employment terminates due to an involuntary termination other than for Cause or due to a voluntary termination with Good Reason, then, as of the date of termination, the vesting and exercisability of your unvested options shall be accelerated in full immediately prior to such termination. “Cause” shall include your involvement in fraud, embezzlement or criminal activity. “Good Reason” shall include the assignment to you of any duties or responsibilities that results in a material diminution in your function or a material reduction by the Company in your annual base salary.

 

5.                                      Exempt Employment. The Company’s regular working day is from 8 a.m. to 5 p.m., Monday through Friday. As an exempt, salaried employee, you will be expected to work additional hours as required by the nature of your work assignments.

 

6.                                      Miscellaneous. This letter and any other documents subsequently signed by you constitute the complete and exclusive terms and conditions of your employment and supercede any and all prior agreements, whether written or oral. This agreement will be governed by and construed according to the laws of the State of Colorado. By joining the Company, you are agreeing to abide by all laws and regulations, all the Company policies and procedures and that you are bound by the terms and conditions of the Company’s Business Protection Agreement (if any). Violations of these policies may lead to immediate termination of employment in the Company’s sole discretion. As required by law, this offer is subject to satisfactory proof of your right to work in the United States.

 

We look forward to having you join us at the Company. If you wish to accept this offer under the terms and conditions described above please sign and date this document and return it to Human Resources by April 23, 2015. If you have any questions about the terms of this offer, please do not hesitate to call us to discuss our offer at your earliest convenience.

 

 

	
Sincerely,
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Sameer   Dholakia, CEO
    	
 
    
	
SendGrid, Inc.
    	
 
    
	
 
    	
 
    
	
I have   read this offer and I understand and accept its terms.
    	
 
    
	
 
    	
 
    
	
/s/   Yancey Spruill
    	
 
    
	
Date:   April 23, 2015
    	
 
    

 

 

EXHIBIT A

 

COMPENSATION

 

Your starting semi-monthly base salary will be $12,500, which is equivalent to $300,000 on an annualized basis. Your target bonus will be $120,000 for a potential annual compensation of $420,000. Your salary is subject to adjustment from time to time in accordance with the company’s compensation policies.

 

You will also be eligible to participate in the benefit programs that SendGrid, Inc. (the “Company”) makes available to its employees. Your eligibility and participation will be subject to the terms of the benefit programs and policies, and all benefits are subject to change or elimination at the sole discretion of the Company.

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