Document:

snap-ex102_781.htm

EXHIBIT 10.2

 

PERSONAL AND CONFIDENTIAL

July 20, 2017

Christopher T. Handman

Re: Advisor Agreement

Dear Chris,

Snap Inc. (the "Company") is pleased in this agreement (the "Advisor Agreement") to confirm your position as a non-employee Advisor to the Company effective August 1, 2017 on the following terms:

1.This Advisor Agreement will be in force for a term ("the Term") beginning August 1, 2017 and concluding on August 16, 2018, unless extended by the parties in writing.

2.As an Advisor, you will meet or otherwise periodically confer with Company executives, as reasonably requested, to provide strategic advice to the Company (the "Services"). The Company will reimburse you for reasonable travel and other incidental expenses approved by the Company related to the Services, so long as you provide the Company with appropriate receipts on other relevant documentation. You will be deemed an independent contractor and not an employee of the Company and have no authority to obligate the Company by contract or otherwise.

3.On May 1, 2014 and April 15, 2015, you were granted an aggregate of 4,140,000 restricted stock units ("RSUs"), after giving effect to the Company's dividend of Class A common stock on October 31, 2016 (the "2014/5 RSU"), under the Company’s 2012 Equity Incentive Plan (the "2012 Plan"). On May 15, 2017, you were granted 2,320,132 additional RSUs (the "2017 RSU") under the Company's 2017 Equity Incentive Plan (the "2017 Plan"). Under the applicable Restricted Stock Unit Agreement (the ''RSU Agreement"), 2,898,000 RSUs from your 2014/5 RSU will have satisfied the Service-Based Requirement (as defined in the 2012 Plan) and zero RSUs from your 2017 RSU will have satisfied the Service-Based Requirement (as defined in the 2017 Plan) as of August 1, 2017. Of the shares under the 2014/5 RSU that will have satisfied the Service-Based Requirement as of August 1, 2017, 1,179,712 have been withheld to satisfy applicable tax withholding requirements, pursuant to the terms of the 2014/5 RSU. Under the applicable RSU Agreement the remaining RSUs for each grant remain unvested as of August 1, 2017. You are entitled to no payment or other consideration for these unvested RSUs. However, as consideration for your services as an Advisor, if you (1) sign this Advisor Agreement and (2) do not subsequently revoke this Advisor Agreement, then the Company will allow your 2014/5 RSU and 2017 RSU to continue vesting as scheduled under the RSU Agreement during the Term of this Advisor Agreement. If it shall ultimately be determined by a final, non-appealable judgment ("Final Adjudication") that you materially breached any of your material confidentiality obligations referred to in Section 5 or the restrictive covenants set forth in Section 6(ii) of this Advisor Agreement and failed to cure such breach following receipt of notice from the Company describing such breach in reasonable detail and a reasonable opportunity to cure, the Company may terminate this Advisor Agreement and your relationship as an advisor, and in such event (i) further vesting of the RSUs will be deemed to have ended on the date of such breach and (ii) all unvested RSUs will expire. However, if the Company terminates this Advisor Agreement before the end of the Term in the absence of such a Final Adjudication, then the Company agrees that all RSUs from your 2014/5 RSU and 2017 RSU that are scheduled to vest as of or prior to the end of the Term will immediately accelerate and vest upon the date of termination. You acknowledge and agree that some RSUs from your 2017 RSU grant will remain unvested at the expiration of the Term and, unless the parties enter into a new written agreement pursuant to which you would continue to provide services to the Company, that these RSUs will be forfeited by you as of the expiration of the Term and that you will have no rights to acceleration of or payment for those unvested RSUs.

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As further consideration for your services as an Advisor, if you (1) sign this Advisor Agreement and (2) do not subsequently revoke this Advisor Agreement then the Company will pay you 12 equal monthly installments of $55,500 each, beginning on August 1, 2017 and continuing thereafter until paid in full (the "Advisory Fee"). If it shall ultimately be determined by a Final Adjudication that you materially breached any of your material confidentiality obligations referred to in Section 5 or the restrictive covenants set forth in Section 6(ii) of this Advisor Agreement and failed to cure such breach following receipt of notice from the Company describing any such alleged breach in reasonable detail and a reasonable opportunity to cure, the Company may terminate this Advisor Agreement and your relationship as an advisor, and in such event (i) your right to any additional payments of the Advisory Fee shall be deemed to have ceased as of the date of such breach and (ii) the Company will have the right to recoup any additional payments of the Advisory Fee made after the date of such  breach. However, if the Company terminates this Advisory Agreement before the end of the Term in the absence of such a Final Adjudication, then, upon termination, the Company will pay you a single lump sum in the amount equal to the Advisory Fee less any installments already paid to you as of the date of termination.

4.You will not be eligible for any employee benefits following August 1, 2017, nor will the Company make deductions from any amounts payable to you for taxes; any taxes will be solely your responsibility. Since you are not an employee, the Company will not withhold or make payments for social insurance and will not hold any employment related liability or related insurances on your behalf. You understand and agree that you are solely responsible for compliance with all your tax reporting and payment obligations in relation to payments under this Advisor Agreement. The Company will regularly report the amounts, if any, paid to you by filing with the local tax authority as required by law.

5.As a condition of your service as an Advisor, during the term of your advisory relationship and after its termination, you will not disclose any of the Company's confidential proprietary information, or any information of a third party provided to you by the Company, which includes but is not limited to, all non­public tangible and intangible manifestations regarding patents, copyrights, trademarks, trade secrets, technology, inventions, works of authorship, business plans, data or any other confidential knowledge (the "Proprietary Information") without the prior written consent of the Company. You will obtain the Company’s authorization before initiating or engaging in any public communications with any third party concerning your duties or relationship with the Company or any Proprietary Information. You agree that any Proprietary Information that you may develop for the Company, either alone or jointly with others, or otherwise provide to the Company for its use, in each case as a result of performing Services for the Company is assigned by you to the Company and is the sole property of the Company. You acknowledge and agree that the requirements of this paragraph are in addition to, and not in lieu of, any other commitments you have made to the Company regarding confidentiality including, but not limited to, the Confidential Information and Inventions Assignment Agreement.

6.During the Term, you may engage in other employment or consulting relationships in addition to your advisory duties to the Company, provided that such other activities comply with the following:

(i)You acknowledge and agree that during the Term, you likely will obtain valuable knowledge and confidential information concerning the Company's trade secrets and other highly valuable confidential and proprietary information. You further acknowledge that engaging in any of the activities prohibited in this paragraph during the Term could inevitably result in the improper use or disclosure of sensitive and valuable Company trade secrets and other proprietary information.

(ii)During the Term, you shall not perform functions for, or become engaged in any manner with, any entity which is: (a) engaged in the design, development, manufacture, promotion, sale, supply, distribution, resale, installation, support, maintenance, repair, licensing, or sublicensing of any Competing Product (as defined below); or (b) engaged in providing, performing, or offering any Competing Service (as defined below) (collectively a "Competing Business"). You acknowledge and agree that companies engaged in a Competing Business include but are not limited to: Facebook, Google, Twitter, Amazon, Apple, and Microsoft.

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(iii)It shall not be a violation of this paragraph 6 if you have any passive investment representing an interest of less than one percent of an outstanding class of publicly traded securities of any corporation or enterprise engaged in a Competing Business.

(iv)You acknowledge and agree that the promises and restrictive covenants you are providing in this paragraph are narrowly tailored, both as to scope and time, and are reasonable and necessary to protect the legitimate interests of the Company, including its interests in protecting its trade secrets and other confidential and proprietary information.

(v)"Competing Product" means (i) any camera product; (ii) any mobile application involving camera functionality, messaging, social media, or posting of photos or video; (iii) any Internet platform or mobile application involving search functionality; (iv) any Internet platform or mobile application that provides context cards or swipe-up functionality related to photo or video posts; and (v) any product, equipment, device, or system that is substantially the same as, incorporates, is a material component or part of, is based upon, is functionally similar to, or competes in any material respect with any product, equipment, device, or system of the type referred to in clauses (i)-(iv).

(vi)"Competing Service" means any company or service that offers, is developing, or is based upon any Competing Product.

7.You represent and warrant that you have the full right and power to enter into and perform this Advisor Agreement and there is no other existing contract or duty on your part inconsistent with the terms of this Advisor Agreement (including, but not limited to, any conflict of interest policy of the Company or with any other party).

8.As a Company advisor, you agree to not (i) enter into, or agree to enter into, during the term of your advisory relationship, any agreement or relationship in conflict with the terms of this Advisor Agreement or your other contractual obligations to the Company; (ii) use as part of this relationship or disclose to the Company any Proprietary Information of any third party to whom you have an obligation of confidentiality, unless you have authorization from such third party for such use or disclosure; or (iii) personally or through others recruit, solicit, induce, or attempt to induce any employee or contractor of the Company to terminate his or her employment or relationship with the Company.

9.This Agreement may be executed in counterparts, which shall be deemed to be part of one original, and facsimile and electronic image signatures shall be equivalent to original signatures.

We look forward to a productive and enjoyable relationship. 

Sincerely,,

 

	
	
/s/ Imran Khan

	
lmran Khan, Chief Strategy Officer

	
 

	
Accepted and agreed:

	
 

	
/s/ Christopher T. Handman

	
Christopher T. Handman

	
 

	
July 20, 2017

	
Date

 

3snap-ex103_780.htm

EXHIBIT 10.3

[***] = Information has been omitted and submitted separately to the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

Amendment to Google Cloud Platform License Agreement

This Amendment (“Amendment”) is entered into by Snap Inc. (“Snap US”), Snap Group Limited (“Snap UK”) and Google Inc. (“Google”). This Amendment amends the Google Cloud Platform License Agreement effective January 30, 2017, by and between Snap US and Google, (the “Agreement”). This Amendment is effective as of the date last signed by the parties below (the “Amendment Effective Date”).  Capitalized terms not defined in this Amendment will have the meaning ascribed to them under the Agreement.  

The parties agree as follows:

	
1.
	
Snap UK.  The term “Customer” in the Agreement is hereby deemed to individually and collectively refer to Snap US and Snap UK, as the context may require, and Snap UK hereby agrees to become a party to the Agreement.  Snap UK will have all rights and benefits available to Snap US under the Agreement, except that:

	
 
	
a.
	
Any act or omission by Snap UK in connection with this Agreement, including a breach of payment obligations under the Agreement, will be deemed to be an act or omission of Snap US;

	
 
	
b.
	
[***]; 

	
 
	
c.
	
[***];

	
 
	
d.
	
Snap UK may choose to no longer be a party to the Agreement by providing 30 days advance written notice to Google, but will not otherwise have the right to terminate or not renew the Agreement.

	
 
	
e.
	
Any publicity approvals provided by Snap US under the Agreement will be binding on Snap UK; 

	
 
	
f.
	
Any claims by Snap UK of breach of the Agreement may only be brought by designating Snap US as its agent for purposes of bringing such claims, provided however, that Snap UK and Snap US may not both institute a claim of breach of the Agreement for the same event giving rise to the breach claim.  Snap US may share all information related to such claims of breach with Snap UK;  

	
 
	
g.
	
Requests for indemnification under the Agreement by Snap UK may only be submitted by designating Snap US as its agent for purposes of submitting such request for indemnification.  Snap US may share all information related to such requests for indemnification with Snap UK; and 

	
 
	
h.
	
Snap UK may only initiate the Dispute Resolution process set forth in Exhibit C of the Agreement by designating Snap US as its agent for purposes of initiating the Dispute Resolution process. Snap US may share all information from such Dispute Resolution process with Snap UK.

	
2.
	
Fee Allocation.

	
 
	
a.
	
Each month Google will provide (i) Snap US with a pro forma invoice and report detailing the allocation of the applicable monthly Fees based on the following formula: (total Fees for the invoice period) x ((egress served by the Account to endpoints in the United States during the invoice period) /( total egress served by the Account during the invoice period)) (“US Allocation”), and (ii) Snap UK with a pro forma invoice and report detailing the allocation of the total Fees for the invoice period less the US Allocation (“Fee Allocation Invoices”). The template  for such  Fee Allocation Invoices is attached hereto as Attachment 1. Customer may discuss questions regarding the allocation in the Fee Allocation Invoices with Google and Google will work with Customer in good faith to resolve any such questions. 

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[***] = Information has been omitted and submitted separately to the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
 
	
b.
	
Google will send such Fee Allocation Invoices to: 

If to Snap US:

Snap Inc.

63 Market Street

Venice, CA 90291

If to Snap UK:

Snap Group Limited

7-11 Lexington Street

London W1F 9AF

United Kingdom

E-mail: [***]

VAT ID [***]

Any notices to Snap UK under Section 15.1 of the Agreement that are required to be sent by e-mail, hand delivery, nationally recognized courier service or prepaid certified mail will be sent to the e-mail address and address above, as applicable.

	
 
	
c.
	
The invoice provided pursuant to Section 3 of the Agreement is the official invoice to which the terms of the Agreement will apply and will be provided only to Snap US.  Google disclaims all liability related to reliance by Customer on the Fee Allocation Invoices. Snap UK may submit payment of a portion of the officially invoiced amount to Google. 

	
 
	
d.
	
 Exhibit F of the Agreement (Billing Requirements [***]) does not apply to the Fee Allocation Invoice. 

	
 
	
e.
	
If and when Customer creates separate Projects for Snap US and Snap UK, the parties will enter into an amendment to this Agreement to include other Google entities as reasonably requested by Google. 

	
3.
	
Pricing Exhibit. Exhibit A (Pricing Exhibit) of the Agreement is hereby amended by:

	
 
	
a.
	
Replacing the first sentence of Section 3.a with the following: 

“If Customer’s revenue in any quarter declines by more [***], Customer will have an option to request a one-time, reasonable modification of the Minimum Commitment. Such modified Minimum Commitment may not be lower than [***].” 

	
 
	
b.
	
Replacing the first sentence following Table 4 in Section 4.d.i with the following:

“[***]”

	
 
	
c.
	
The term “products” as used in Section 6.c means any of the following: 

	
 
	
i.
	
Google Compute Engine Standard VMs

	
 
	
ii.
	
Google Compute Engine HighMem VMs

	
 
	
iii.
	
Google Compute Engine HighCPU VMs

	
 
	
iv.
	
Google Compute Engine Custom VMs

	
 
	
v.
	
Google Compute Engine disk storage

	
 
	
vi.
	
Google Compute Engine other

	
 
	
vii.
	
Google App Engine Flex

	
 
	
viii.
	
Google App Engine FrontEnd instances

	
 
	
ix.
	
Google App Engine BackEnd instances

	
 
	
x.
	
Google Datastore Entity Reads

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[***] = Information has been omitted and submitted separately to the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
 
	
xi.
	
Google Datastore Entity Writes

	
 
	
xii.
	
Google Datastore Storage

	
 
	
xiii.
	
Google App-Engine

	
 
	
xiv.
	
Google App Engine, other

	
 
	
xv.
	
Google Container Engine

	
 
	
xvi.
	
Google Container Registry

	
 
	
xvii.
	
Google Cloud Functions 

	
 
	
xviii.
	
Google Cloud Storage – GCS standard

	
 
	
xix.
	
Google Cloud Storage – DRA

	
 
	
xx.
	
Google Cloud Storage – Class A Ops

	
 
	
xxi.
	
Google Cloud Storage – Class B Ops

	
 
	
xxii.
	
Google Cloud SQL

	
 
	
xxiii.
	
Google Bigtable

	
 
	
xxiv.
	
Google Cloud CDN

	
 
	
xxv.
	
Google Cloud DNS

	
 
	
xxvi.
	
Google BigQuery

	
 
	
xxvii.
	
Google Cloud Dataflow

	
 
	
xxviii.
	
Google Cloud Dataproc

	
 
	
xxix.
	
Google Cloud Datalab

	
 
	
xxx.
	
Google Cloud Pub/Sub

	
 
	
xxxi.
	
Google Cloud Machine Learning Services

	
 
	
xxxii.
	
Google Cloud Jobs API

	
 
	
xxxiii.
	
Google Cloud Natural Language API

	
 
	
xxxiv.
	
Google Cloud Speech API

	
 
	
xxxv.
	
Google Cloud Vision API

	
 
	
xxxvi.
	
Google Cloud Translation API

	
 
	
xxxvii.
	
Stackdriver

	
 
	
xxxviii.
	
Any new product launched after the Amendment Effective Date and listed at https://cloud.google.com/products/.

	
4.
	
Publicity.  Section 10 of the Agreement (Publicity) is hereby amended by deleting the last sentence of such Section.

	
5.
	
Indemnification by Google.  Section 14.2 is hereby amended by deleting the word “and” right before part (b) and replacing it with the word “or.” 

	
6.
	
This Amendment may be executed in one or more counterparts including facsimile, PDF or other electronic copies, which when taken together upon proper delivery shall constitute a single instrument. In the event of a conflict between the terms and conditions of the Agreement and the terms and conditions of this Amendment, the terms and conditions of this Amendment shall govern. All other terms and conditions of the Agreement remain unchanged and are in full force and effect.

 

[INTENTIONALLY LEFT BLANK – SIGNATURE PAGE ON NEXT PAGE]

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[***] = Information has been omitted and submitted separately to the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

IN WITNESS WHEREOF, the parties have executed this Amendment.

 

	
Accepted and Agreed:
	
 
	
Accepted and Agreed:

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Google Inc.
	
 
	
Snap Inc.

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
By:
	
 
	
/s/ Philipp Schindler
	
 
	
By:
	
 
	
/s/ Jerry Hunter

	
Name:
	
 
	
Philipp Schindler
	
 
	
Name:
	
 
	
Jerry Hunter

	
Title:
	
 
	
Authorized Signatory
	
 
	
Title:
	
 
	
VP Core Engineering

	
Date:
	
 
	
September 8, 2017
	
 
	
Date:
	
 
	
September 12, 2017

	
 
	
 
	
 
	
 
	
 
	
 
	
 

 

	
Accepted and Agreed:
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
Snap Group Limited
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
By:
	
 
	
/s/ David Lewis
	
 
	
 
	
 

	
Name:
	
 
	
David Lewis
	
 
	
 
	
 

	
Title:
	
 
	
Director
	
 
	
 
	
 

	
Date:
	
 
	
September 18, 2017
	
 
	
 
	
 

 

 

 

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