Document:

Document

  

Exhibit 10.2

February 1, 2022

Via Email

Scott Davidson 

Re:    Terms of Transition and Separation

Dear Scott:

This letter confirms the agreement (“Agreement”) between you and Alteryx, Inc. (the “Company”) concerning the terms of your transition and separation from employment and offers you certain benefits to which you would not otherwise be entitled, conditioned upon your provision of a general release of claims and covenant not to sue now and upon the Separation Date (defined below) as provided herein. If you agree to the terms outlined herein, please sign and return this Agreement to me in the timeframe outlined below.

1.Separation from Employment: Your employment with the Company will end upon the Separation Date (as defined below). You and the Company have decided to end your relationship amicably and also to establish the obligations of the parties including, without limitation, all amounts due and owing to you. The Company has also discussed with you the terms under which it is willing to continue your employment through the Transition Period, as described further below.

2.Continued Employment; Other Release Consideration: In exchange for your agreement to the general release and waiver of claims and covenant not to sue set forth below and your other promises herein, the Company agrees to continue your employment on the following terms:

a.Separation Date; Transition Period and Services: Your last day of employment with the Company will be March 16, 2022 (the “Separation Date”) subject to the at-will nature of your employment, as described in Paragraph 2(d) below. Between now and the Separation Date (the “Transition Period”), you agree to carry out such transition services as directed principally by the Company’s Chief Executive Officer, Mark Anderson, to whom you will report, including transition of the responsibilities, duties, and knowledge relative to your position (the “Transition Services”).

b.Compensation and Benefits: During the Transition Period, the Company will continue to pay you your current base salary and you will continue to be eligible to participate in benefits customarily afforded to other employees, including participation in the Company-sponsored health benefits plan and continued vesting of equity awards, to the fullest extent allowed by the governing plans, agreements, or policies. Provided you remain employed through the Separation Date, and subject to the Company’s and your achievement of the applicable performance criteria through December 31, 2021, you will be eligible to receive payment of your variable incentive compensation payable under the 2021 Alteryx Bonus Plan, with such amount to be paid at such time as annual incentive bonuses are paid to other participants, less applicable state and federal payroll deductions.

c.Separation Compensation: Provided that you cooperatively and diligently provide the Transition Services as determined by the Company in good faith and in its sole discretion, then in exchange for your agreement to the general release and waiver of claims and covenant not to sue set forth in Exhibit A (the “Second Release”), to be signed no earlier than the Separation Date, and your other promises herein, the Company agrees as follows:

i.Severance. The Company agrees to pay you, within ten (10) business days following the effectiveness of the Second Release (as provided therein), a lump sum payment in the gross amount of $326,250, less applicable state and federal payroll deductions, which equals nine (9) months of your current base salary.

			
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ii.COBRA. Upon your timely election to continue your existing health benefits under COBRA, and consistent with the terms of COBRA and the Company’s health insurance plan, the Company will pay the insurance premiums to continue your existing health benefits for nine (9) months following the Separation Date. You will remain responsible for, and must continue to pay, the portion of premiums, co- payments, etc. that you would have paid had your employment continued.

d.At-Will Employment. During the Transition Period, your employment with the Company will remain at-will, meaning either you or the Company may terminate your employment at any time with or without notice or reason.

By signing below, you acknowledge that you are receiving the release consideration outlined in this Section 2 in consideration for waiving your rights to claims referred to in this Agreement (and the Second Release, if applicable) and that you would not otherwise be entitled to the release consideration.

3.Final Pay. On your final day of employment, the Company will pay you for all wages, salary, bonuses, commissions, reimbursable expenses previously submitted by you, accrued vacation (if applicable) and any similar payments due you from the Company as of your separation from employment. By signing below, you acknowledge that the Company does not owe you any other amounts, except as otherwise may become payable under this Agreement.

4.Return of Company Property. You hereby warrant to the Company that, no later than your final day of employment, you will return to the Company all property or data of the Company of any type whatsoever that has been in your possession or control.

5.Proprietary Information. You hereby acknowledge that you are bound by the Confidential Information and Invention Assignment Agreement previously entered into, and that as a result of your employment with the Company you have had access to the Company’s Proprietary Information (as defined in the agreement), that you will hold all Proprietary Information in strictest confidence and that you will not make use of such Proprietary Information on behalf of anyone, except as required in the course of your employment with the Company. You further confirm that you will deliver to the Company, no later than the Separation Date, all documents and data of any nature containing or pertaining to such Proprietary Information and that you will not take with you any such documents or data or any reproduction thereof.

6.Company Equity. During the Transition Period, your outstanding Company equity awards will continue to vest according to their terms; however, all vesting will cease as of the Separation Date (assuming your continuous employment through that date). At all times, your rights concerning your awards will continue to be governed by the Company’s 2017 Equity Incentive Plan and the written award agreements governing their grant (collectively, the “Equity Agreements”).

7.General Release and Waiver of Claims.

			
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a.The payments and promises set forth in this Agreement are in full satisfaction of all accrued salary, vacation pay, bonus and commission pay, profit-sharing, stock, stock options, restricted stock units or other ownership interest in the Company, termination benefits or other compensation to which you may be entitled by virtue of your employment with the Company or your separation from the Company, including under your Company Severance and Change in Control Agreement effective March 25, 2020 (your “Severance and CIC Agreement”) and your Offer Letter dated October 10, 2019 (your “Offer Letter”). To the fullest extent permitted by law, you hereby release and waive any other claims you may have against the Company and its owners, agents, officers, shareholders, employees, directors, attorneys, subscribers, subsidiaries, affiliates, successors and assigns (collectively “Releasees”), whether known or not known, including, without limitation, claims under any employment laws, including, but not limited to, claims of unlawful discharge, breach of contract, breach of the covenant of good faith and fair dealing, fraud, violation of public policy, defamation, physical injury, emotional distress, claims for additional compensation or benefits arising out of your employment or your separation of employment, claims under Title VII of the 1964 Civil Rights Act, as amended, and any other laws and/or regulations relating to employment or employment discrimination, including, without limitation, claims based on disability or under the Americans with Disabilities Act. By signing this Agreement, you are not releasing or waiving any claims under the California Fair Employment and Housing Act; however, for the avoidance of doubt, you will release and waive such claims once you sign the Second Release.

b.By signing below, you expressly waive any benefits of Section 1542 of the Civil Code of the State of California, which provides as follows:

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

c.You and the Company do not intend to release claims that you may not release as a matter of law, including but not limited to claims for indemnity under California Labor Code Section 2802, or any claims for enforcement of this Agreement. To the fullest extent permitted by law, any dispute regarding the scope of this general release shall be determined by an arbitrator under the procedures set forth in the arbitration clause below.

8.Covenant Not to Sue.

a.To the fullest extent permitted by law, at no time subsequent to the execution of this Agreement will you pursue, or cause or knowingly permit the prosecution, in any state, federal or foreign court, or before any local, state, federal or foreign administrative agency, or any other tribunal, of any charge, claim or action of any kind, nature and character whatsoever, known or unknown, which you may now have, have ever had, or may in the future have against Releasees, which is based in whole or in part on any matter released by this Agreement.

b.Nothing in this paragraph shall prohibit or impair you or the Company from complying with all applicable laws, nor shall this Agreement be construed to obligate either party to commit (or aid or abet in the commission of) any unlawful act.

9.Protected Rights. You understand that nothing in the General Release and Waiver of Claims and Covenant Not to Sue paragraphs above, or otherwise in this Agreement, limits your ability to file a charge or complaint with the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission or any other federal, state or local government agency or commission (“Government Agencies”). You further understand that this Agreement does not limit your ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to the Company. This Agreement does not limit your right to receive an award for information provided to any Government Agencies.
			
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10.Arbitration. Except for any claim for injunctive relief arising out of a breach of a party’s obligations to protect the other’s proprietary information, the parties agree to arbitrate, in Orange County, California through JAMS, any and all disputes or claims arising out of or related to the validity, enforceability, interpretation, performance or breach of this Agreement and/or the Second Release, whether sounding in tort, contract, statutory violation or otherwise, or involving the construction or application or any of the terms, provisions, or conditions of this Agreement and/or the Second Release. Any arbitration may be initiated by a written demand to the other party.  The arbitrator's decision shall be final, binding, and conclusive.  The parties further agree that this Agreement and the Second Release are intended to be strictly construed to provide for arbitration as the sole and exclusive means for resolution of all disputes hereunder to the fullest extent permitted by law.  The parties expressly waive any entitlement to have such controversies decided by a court or a jury.

11.Attorneys’ Fees. If any action is brought to enforce the terms of this Agreement and the Second Release, the prevailing party will be entitled to recover its reasonable attorneys’ fees, costs and expenses from the other party, in addition to any other relief to which the prevailing party may be entitled.

12.Confidentiality. You agree that if you are asked for information concerning this Agreement, you will state only that you and the Company reached an amicable resolution of any disputes concerning your separation from the Company. Any breach of this confidentiality provision shall be deemed a material breach of this Agreement.

13.Section 409A.
a.To the extent (i) any payments or benefits to which you become entitled under this Agreement, or under any agreement or plan referenced herein, in connection with your termination of employment with the Company constitute deferred compensation subject to Section 409A of the IRS Code of 1986, as amended (the “Code”) and (ii) you are deemed at the time of such termination of employment to be a “specified employee” under Section 409A of the Code, then such payments will not be made or commence until the earlier of (A) the expiration of the six (6)-month period measured from the date of your “separation from service” (as such term is at the time defined in Treasury Regulations under Section 409A of the Code) from the Company or (B) the date of your death following such separation from service; provided, however, that such deferral will only be effected to the extent required to avoid adverse tax treatment to you, including (without limitation) the additional twenty percent (20%) tax for which you would otherwise be liable under Section 409A(a)(1)(B) of the Code in the absence of such deferral. Upon the expiration of the applicable deferral period, any payments which would have otherwise been made during that period (whether in a single sum or in installments) in the absence of this Paragraph will be paid to you or your beneficiary in one lump sum (without interest).
b.It  is  intended  that  each  installment  of  the  payments  provided  hereunder constitute
separate “payments” for purposes of Treasury Regulation Section 1.409A-2(b)(2)(i).
c.It is further intended that payments hereunder satisfy, to the greatest extent possible, the exemptions from the application of Section 409A of the Code (and any state law of similar effect) provided under Treasury Regulation Section 1.409A-1(b)(4) (as a “short-term deferral”) and/or Treasury Regulation Section 1.409A-1(b)(9) (iii) (as “involuntary separation pay”).
			
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d.To the extent that any provision of this Agreement is ambiguous as to its compliance with Section 409A of the Code, the provision will be read in such a manner so that all payments hereunder comply with Section 409A of the Code.
e.Except as otherwise expressly provided herein, to the extent any expense reimbursement or the provision of any in-kind benefit under this Agreement is determined to be subject to Section 409A of the Code, the amount of any such expenses eligible for reimbursement, or the provision of any in-kind benefit, in one calendar year will not affect the expenses eligible for reimbursement in any other taxable year (except for any lifetime or other aggregate limitation applicable to medical expenses), in no event will any expenses be reimbursed after the last day of the calendar year following the calendar year in you incurred such expenses, and in no event will any right to reimbursement or the provision of any in-kind benefit be subject to liquidation or exchange for another benefit.

14.      No Admission of Liability. This Agreement is not and shall not be construed or contended by you to be an admission or evidence of any wrongdoing or liability on the part of Releasees, their representatives, heirs, executors, attorneys, agents, partners, officers, shareholders, directors, employees, subsidiaries, affiliates, divisions, successors or assigns. This Agreement shall be afforded the maximum protection allowable under California Evidence Code Section 1152 and/or any other state or federal provisions of similar effect.

15.Complete and Voluntary Agreement. This Agreement, together with Exhibit A hereto and the Equity Agreements, constitute the entire agreement between you and Releasees with respect to the subject matter hereof and supersedes all prior negotiations and agreements, whether written or oral, relating to such subject matter, including but not limited to your Offer Letter and Severance and CIC Agreement. You acknowledge that neither Releasees nor their agents or attorneys have made any promise, representation or warranty whatsoever, either express or implied, written or oral, which is not contained in this Agreement for the purpose of inducing you to execute this Agreement, and you acknowledge that you have executed this Agreement in reliance only upon such promises, representations and warranties as are contained herein, and that you are executing this Agreement voluntarily, free of any duress or coercion.

16.All Payments. You understand and agree that except as expressly provided for in this Agreement, you shall not be entitled to any other consideration, separation or change in control benefits, including, but not limited to, any severance payments, equity or equity acceleration benefits or any other severance benefits provided for under any agreement by and between you and the Company, including, but not limited to your Company Severance and Change in Control Agreement, your Offer Letter or the agreements evidencing any of your Company equity awards.

17.Severability. The provisions of this Agreement are severable, and if any part of it is found to be invalid or unenforceable, the other parts shall remain fully valid and enforceable. Specifically, should a court, arbitrator, or government agency conclude that a particular claim may not be released as a matter of law, it is the intention of the parties that the general release, the waiver of unknown claims and the covenant not to sue above shall otherwise remain effective to release any and all other claims.

18.Modification; Counterparts; Electronic/PDF Signatures. It is expressly agreed that this Agreement may not be altered, amended, modified, or otherwise changed in any respect except by another written agreement that specifically refers to this Agreement, executed by authorized representatives of each of the parties to this Agreement. This Agreement may be executed in any number of counterparts, each of which shall constitute an original and all of which together shall constitute one and the same instrument. Execution of an electronic or PDF copy shall have the same force and effect as execution of an original, and a copy of a signature will be equally admissible in any legal proceeding as if an original.

19.Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California.

			
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20.Review of Separation Agreement; Effective Date; Second Release. This Agreement is effective on the date it is signed by you and is not revocable after you sign it (the “Effective Date”). You understand that you may take up to twenty-one (21) days to consider the Second Release (the “Consideration Period”). You also understand you may revoke the Second Release within seven (7) days of signing it and that the consideration to be provided to you pursuant to Paragraph 2(c) will be provided only after the expiration of that seven (7) day revocation period. The Second Release will be effective on the eighth (8th) day after you sign it provided you have not revoked it as of that time.

			
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If you agree to abide by the terms outlined in this Agreement, please sign and return it to me. I wish you the best in your future endeavors.

Sincerely,

ALTERYX, INC.

By: /s/ Mark Anderson                                   
Mark Anderson
Chief Executive Officer

READ, UNDERSTOOD AND AGREED

/s/ Scott Davidson                    
Scott Davidson
Date: Feb 2, 2022
			
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EXHIBIT A

SECOND RELEASE

This General Release of All Claims and Covenant Not to Sue (the “Second Release”) is entered into between Scott Davidson (“Employee”) and Alteryx, Inc. (the “Company”) (collectively, “the parties”).
WHEREAS, on     ,  2022,  Employee  and  the  Company  entered  into an agreement regarding Employee’s transition and separation from employment with the Company (the “Separation Agreement,” to which this Second Release is attached as Exhibit A);
WHEREAS, on March 16, 2022, Employee’s employment with the Company terminated (the “Separation Date”);
WHEREAS, the Company has determined that Employee cooperatively and diligently provided the Transition Services (as defined in the Separation Agreement);
WHEREAS, this agreement serves as the Second Release, pursuant to the Separation Agreement;
and
WHEREAS, Employee and the Company desire to mutually, amicably and finally resolve and
compromise all issues and claims surrounding Employee’s employment and separation from employment
with the Company;
NOW THEREFORE, in consideration for the mutual promises and undertakings of the parties as set forth below, Employee and the Company hereby enter into this Second Release.
1.Acknowledgment of Payment of Wages. By his signature below, Employee acknowledges that, on the Separation Date, the Company paid him for all wages, salary, accrued vacation (if applicable), bonuses, commissions, reimbursable expenses previously submitted by him, and any similar payments due him from the Company as of the Separation Date. By signing below, Employee acknowledges that the Company does not owe him any other amounts, except as may become payable under the Separation Agreement and the Second Release. Please promptly submit for reimbursement all final outstanding expenses, if any.

2.Return of Company Property. Employee hereby warrants to the Company that he has returned to the Company all property or data of the Company of any type whatsoever that has been in his possession, custody or control.

3.Consideration. In exchange for Employee’s agreement to this Second Release and his other promises in the Separation Agreement and herein, the Company agrees to provide Employee with the consideration set forth in Paragraph 2(c) of the Separation Agreement. By signing below, Employee acknowledges that he is receiving the consideration in exchange for waiving his rights to claims referred to in this Second Release and he would not otherwise be entitled to the consideration.

4.General Release and Waiver of Claims.

a.The payments and promises set forth in this Second Release are in full satisfaction of all accrued salary, vacation pay, bonus and commission pay, profit-sharing, stock, stock options, restricted stock units or other ownership interest in the Company, termination benefits or other compensation to which Employee may be entitled by virtue of his employment with the Company or his separation from the Company, including pursuant to the Separation Agreement. To the fullest extent permitted by law, Employee hereby releases and waives any other claims he may have against the Company and its owners, agents, officers, shareholders, employees, directors, attorneys, subscribers, subsidiaries, affiliates, successors and assigns (collectively “Releasees”), whether known or not known, including,without limitation, claims under any employment laws, including, but not limited to, claims of unlawful discharge, breach of contract, breach of the covenant of good faith and fair dealing, fraud, violation of public policy, defamation, physical injury, emotional distress, claims for additional compensation or benefits arising out of his employment or separation of employment, claims under Title VII of the 1964 Civil Rights Act, as amended, the California Fair Employment and Housing Act and any other laws and/or regulations relating to employment or employment discrimination, including, without limitation, claims based on age or under the Age Discrimination in Employment Act or Older Workers Benefit Protection Act, and/or claims based on disability or under the Americans with Disabilities Act.

b.By signing below, Employee expressly waives any benefits of Section 1542 of the Civil Code of the State of California, which provides as follows:

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

c.Employee and the Company do not intend to release claims that he may not release as a matter of law, including but not limited to claims for indemnity under California Labor Code Section 2802, or any claims for enforcement of this Second Release. To the fullest extent permitted by law, any dispute regarding the scope of this general release shall be determined by an arbitrator under the procedures set forth in the arbitration clause set forth in the Separation Agreement.

5.Covenant Not to Sue.

a.To the fullest extent permitted by law, at no time subsequent to the execution of this Second Release will Employee pursue, or cause or knowingly permit the prosecution, in any state, federal or foreign court, or before any local, state, federal or foreign administrative agency, or any other tribunal, of any charge, claim or action of any kind, nature and character whatsoever, known or unknown, which he may now have, have ever had, or may in the future have against Releasees, which is based in whole or in part on any matter released by this Second Release.

b.Nothing in this paragraph shall prohibit or impair Employee or the Company from complying with all applicable laws, nor shall this Second Release be construed to obligate either party to commit (or aid or abet in the commission of) any unlawful act.

6.Protected Rights. Employee understands that nothing in the General Release and Waiver of Claims and Covenant Not to Sue paragraphs above, or otherwise in this Second Release, limits his ability to file a charge or complaint with the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission or any other federal, state or local government agency or commission (“Government Agencies”). Employee further understands that this Second Release does not limit his ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to the Company. This Second Release does not limit Employee’s right to receive an award for information provided to any Government Agencies.

7.Non-disparagement. Employee agrees that he will not disparage Releasees or their products, services, agents, representatives, directors, officers, shareholders, attorneys, employees, vendors, affiliates, successors or assigns, or any person acting by, through, under or in concert with any of them, with any written or oral statement. Nothing in this paragraph shall prohibit Employee from providing truthful information in response to a subpoena or other legal process.

8.Review of Second Release; Expiration of Offer. Employee understands that he may take up to twenty-one (21) days to consider this Second Release (the “Consideration Period”). The offer set forth in this Second Release, if not accepted by Employee before the end of the Consideration Period, will automatically expire. By signing below, Employee affirms that he was advised to consult with an attorney prior to signing this Second Release. Employee also understands that he may revoke this Second Release within seven (7) days of signing this document and that the consideration to be provided to him pursuant to Paragraph 2(c) of the Separation Agreement will be provided only after the expiration of that seven (7) day revocation period.

9.Effective Date. This Second Release is effective on the eighth (8th) day after Employee signs it, provided he has not revoked it as of that time (the “Effective Date”).

10.Other Terms of Separation Agreement Incorporated Herein. All other terms of the Separation Agreement to the extent not inconsistent with the terms of this Second Release are hereby incorporated in this Second Release as though fully stated herein and apply with equal force to this 

Second Release, including, without limitation, the provisions on Arbitration, Governing Law, and Attorneys’ Fees.
Sincerely,

ALTERYX, INC.

By:    _____________________________     Mark Anderson
Chief Executive Officer

READ, UNDERSTOOD AND AGREED

Scott Davidson
Date:a102-amendedandrestateds

     TUSIMPLE HOLDINGS INC.   AMENDED AND RESTATED SEVERANCE AND CHANGE IN CONTROL AGREEMENT   This Amended and Restated Severance and Change in Control Agreement (the “Agreement”) is made and entered  into by and between Patrick Dillon (“Executive”) and TuSimple Holdings Inc., a Delaware corporation (the  “TuSimple”), effective as of the date specified in Section 1 below.  This Agreement amends and restates the  Severance and Change in Control Agreement dated March 22, 2021 (the “Prior Agreement”) between Executive and  the Company.  This Agreement provides severance and acceleration benefits in connection with certain qualifying terminations of  Executive’s employment with TuSimple and its subsidiaries, as applicable (referred to collectively herein as the  “TuSimple Group”).   WHEREAS, Executive and the Company wish to amend and restate the Prior Agreement in order to  increase the amount of equity acceleration provided for in Section 2(a)(iii) of the Prior Agreement in case of an  Involuntary Termination outside a Change in Control Period from six (6) to twelve (12) months.  NOW, THEREFORE, in consideration of the mutual covenants herein contained and the continued at-will  employment of Executive by the Company, the parties agree as follows:  Certain capitalized terms are defined in Section 8.   TuSimple and Executive agree as follows:   1. Term. This Agreement shall become effective on the date on which it is signed by Executive (the  “Effective Date”).   2. Certain Involuntary Termination Benefits.   (a) Involuntary Termination Outside of a Change in Control Period. If Executive is subject to an  Involuntary Termination that occurs outside of a Change in Control Period and Executive satisfies the conditions  described in Section 2(c) below, then:   (i) TuSimple or another member of the TuSimple Group, as applicable, shall continue to  pay such Executive’s Base Salary for a period of twelve (12) months following such Executive’s Separation, which  will be paid in accordance with TuSimple’s or, if applicable, such other member of the TuSimple Group’s standard  payroll procedures;   (ii) If Executive timely elects continued coverage under COBRA, TuSimple or another  member of the TuSimple Group, as applicable, shall pay the same portion of the monthly premium under COBRA  as it pays for active employees and their eligible dependents until the earliest of (a) the last day of the period ending  on the date that is twelve (12) months following such Executive’s Separation, (b) the expiration of Executive’s  continuation coverage under COBRA or (c) the date when Executive becomes eligible for substantially equivalent  health insurance coverage in connection with new employment. Notwithstanding the foregoing, if TuSimple or, if  applicable, such other member of the TuSimple Group, determines in its sole discretion that it cannot provide the  foregoing subsidy of COBRA coverage without potentially violating or causing TuSimple or any other member of  the TuSimple Group to incur additional expense as a result of noncompliance with applicable law (including,  without limitation, Section 2716 of the Public Health Service Act), TuSimple or another member of the TuSimple  Group, as applicable, instead will pay Executive a taxable monthly payment in an amount equal to the monthly  COBRA premium that Executive would be required to pay to continue the group health coverage in effect on the  date of Executive’s Separation for Executive and Executive’s eligible dependents pursuant to the health insurance  plans of the TuSimple Group in which Executive or Executive’s eligible dependents participated as of the day of  Executive’s Separation (which amount shall be based on the premium for the first month of COBRA coverage),  which payments shall be made regardless of whether Executive elects COBRA continuation coverage; and   

 

   2  GDSVF&H\8097938.2  (iii) The total number of vested shares subject to each of Executive’s then-outstanding  equity awards subject to time-based vesting shall be determined by adding twelve (12) months to Executive’s actual  period of employment as of the Separation Date. In the case of equity awards with performance-based vesting, all  performance goals and other vesting criteria will be deemed satisfied in accordance with the terms set forth in the  award agreement evidencing the applicable equity award.   (b) Involuntary Termination Within a Change in Control Period. If Executive is subject to an  Involuntary Termination that occurs within a Change in Control Period and Executive satisfies the conditions  described in Section 2(c) below, then:   (i) TuSimple or another member of the TuSimple Group, as applicable, shall continue to  pay such Executive’s Base Salary for a period of eighteen (18) months following such Executive’s Separation,  which will be paid in accordance with TuSimple’s or, if applicable, such other member of the TuSimple Group’s  standard payroll procedures;   (ii) TuSimple or another member of the TuSimple Group, as applicable, shall pay the  Executive a lump-sum cash amount equal to Executive’s annual target bonus established by TuSimple for the fiscal  year in which Executive’s Separation occurs, prorated based on the number of days that Executive was employed by  the TuSimple Group during such fiscal year; provided that if (1) Executive’s Involuntary Termination occurs prior  to the earlier of (A) the first anniversary of Executive’s employment start date with the TuSimple Group, and (B) the  date on which TuSimple consummates the first firm commitment underwritten public offering pursuant to an  effective registration statement under the Securities Act of 1933, as amended, covering the offer and sale by  TuSimple of its equity securities, and (2) the per share value of a share of Common Stock of TuSimple is less than  $8 per share in the Change in Control, then the lump-sum cash amount described in this Section 2(b)(ii) shall be  increased by $500,000;   (iii) If Executive timely elects continued coverage under COBRA, TuSimple or, if  applicable, such other member of the TuSimple Group shall pay the same portion of the monthly premium under  COBRA as it pays for active employees and their eligible dependents until the earliest of (a) the last day of the  period ending on the date that is eighteen (18) months following such Executive’s Separation, (b) the expiration of  Executive’s continuation coverage under COBRA or (c) the date when Executive becomes eligible for substantially  equivalent health insurance coverage in connection with new employment. Notwithstanding the foregoing, if  TuSimple or, if applicable, such other member of the TuSimple Group’s determines in its sole discretion that it  cannot provide the foregoing subsidy of COBRA coverage without potentially violating or causing TuSimple or any  other member of the TuSimple Group to incur additional expense as a result of noncompliance with applicable law  (including, without limitation, Section 2716 of the Public Health Service Act), TuSimple or, if applicable, such other  member of the TuSimple Group instead will pay Executive a taxable monthly payment in an amount equal to the  monthly COBRA premium that Executive would be required to pay to continue the group health coverage in effect  on the date of Executive’s Separation for Executive and Executive’s eligible dependents pursuant to the health  insurance plans of the TuSimple Group in which Executive or Executive’s eligible dependents participated as of the  day of Executive’s Separation (which amount shall be based on the premium for the first month of COBRA  coverage), which payments shall be made regardless of whether Executive elects COBRA continuation coverage;  (iv) One hundred percent (100%) of the shares subject to each of Executive’s then-outstanding equity awards subject  to time-based vesting shall become fully vested. In the case of equity awards with performance-based vesting, all  performance goals and other vesting criteria will be deemed satisfied in accordance with the terms set forth in the  award agreement evidencing the applicable equity award. For the avoidance of doubt, if Executive’s Involuntary  Termination occurs prior to a Change in Control, then any unvested portion of Executive’s then-outstanding equity  awards will remain outstanding for 3 months or the occurrence of a Change in Control (whichever is earlier) so that  any additional benefits due on an Involuntary Termination Within a Change in Control Period can be provided if a  Change in Control occurs within 3 months following such Involuntary Termination (provided that in no event will  Executive’s stock options or similar equity awards remain outstanding beyond the equity award’s maximum term to  expiration). In such case, if no Change in Control occurs within 3 months following an Involuntary Termination, any  unvested portion of Executive’s equity awards automatically will be forfeited permanently on the 3-month  anniversary of the Involuntary Termination without having vested.   

 

   3  GDSVF&H\8097938.2  (c) Preconditions to Severance and Vesting Acceleration Benefits / Timing of Benefits. As a  condition to Executive’s receipt of any benefits described in Section 2(a) or 2(b), Executive shall execute and allow  to become effective a general release of claims in the form prescribed by TuSimple and, if requested by TuSimple’s  Board of Directors, must immediately resign as a member of TuSimple’s Board of Directors and as a member of the  board of directors of any subsidiaries of TuSimple. Executive must execute and return the release on or before the  date specified by TuSimple in the release, which will in no event be later than 50 days after Executive’s employment  terminates. If Executive fails to return the release by the deadline or if Executive revokes the release, then Executive  will not be entitled to the benefits described in this Section 2. All such benefits will be provided, paid or commence  within 60 days after Executive’s Involuntary Termination (and, where applicable, will include at such time any  amounts accrued from the date of Executive’s Separation). If such 60-day period spans two calendar years, then  such benefit will in any event be provided, paid or commence in the second calendar year.   3. Section 409A. TuSimple intends that all payments and benefits provided under this Agreement or  otherwise are exempt from, or comply with, with the requirements of Section 409A of the Internal Revenue Code of  1986, as amended (the “Code”) so that none of the payments or benefits will be subject to the additional tax  imposed under Code Section 409A, and any ambiguities herein will be interpreted in accordance with such intent.  For purposes of Code Section 409A, each payment, installment or benefit payable under this Agreement is hereby  designated as a separate payment. In addition, if TuSimple determines that Executive is a “specified employee”  under Code Section 409A(a)(2)(B)(i) at the time of Executive’s Separation, then (i) any severance payments or  benefits, to the extent that they are subject to Code Section 409A, will not be paid or otherwise provided until the  first business day following the earlier of (A) expiration of the six-month period measured from Executive’s  Separation or (B) the date of Executive’s death and (ii) any installments that otherwise would have been paid or  provided prior to such date will be paid or provided in a lump sum when the severance payments or benefits  commence.   4. Section 280G.   (a) Notwithstanding anything contained in this Agreement to the contrary, in the event that the  payments and benefits provided pursuant to this Agreement, together with all other payments and benefits received  or to be received by Executive (“Payments”), constitute “parachute payments” within the meaning of Code Section  280G, and, but for this Section 4, would be subject to the excise tax imposed by Code Section 4999 (the “Excise  Tax”), then the Payments shall be made to Executive either (i) in full or (ii) as to such lesser amount as would result  in no portion of the Payments being subject to the Excise Tax (a “Reduced Payment”), whichever of the foregoing  amounts, taking into account applicable federal, state and local income taxes and the Excise Tax, results in  Executive’s receipt on an after-tax basis, of the greatest amount of benefits, notwithstanding that all or some portion  of the Payments may be subject to the Excise Tax. For the avoidance of doubt, the Payments shall include  acceleration of vesting of equity awards granted by TuSimple that vest based on service to TuSimple and that  accelerate in connection with a Change in Control of TuSimple, but only to the extent such acceleration of vesting is  deemed a parachute payment with respect to a Change in Control of TuSimple.   (b) For purposes of determining whether to make a Reduced Payment, if applicable, TuSimple  shall cause to be taken into account all federal, state and local income and employment taxes and excise taxes  applicable to the Executive (including the Excise Tax). If a Reduced Payment is made, TuSimple shall reduce or  eliminate the Payments in the following order, unless (to the extent permitted by Section 409A of the Code)  Executive elects to have the reduction in payments applied in a different order: (1) cancellation of accelerated  vesting of options with no intrinsic value, (2) reduction of cash payments, (3) cancellation of accelerated vesting of  equity awards other than options, (4) cancellation of accelerated vesting of options with intrinsic value and (5)  reduction of other benefits paid to the Executive. In the event that acceleration of vesting is reduced, such  acceleration of vesting shall be cancelled in the reverse order of the date of grant of the Executive’s equity awards.  In the event that cash payments or other benefits are reduced, such reduction shall occur in reverse order beginning  with payments or benefits which are to be paid farthest in time from the date of the determination. For avoidance of  doubt, an option will be considered to have no intrinsic value if the exercise price of the shares subject to the option  exceeds the fair market value of such shares.   (c) All determinations required to be made under this Section 4 (including whether any of the  Payments are parachute payments and whether to make a Reduced Payment) will be made by a nationally  

 

   4  GDSVF&H\8097938.2  recognized independent accounting firm selected by TuSimple. For purposes of making the calculations required by  this section, the accounting firm may make reasonable assumptions and approximations concerning applicable taxes  and may rely on reasonably, good faith interpretations concerning the application of Code Sections 280G and 4999.  TuSimple will bear the costs that the accounting firm may reasonably incur in connection with the calculations  contemplated by this Section 4. The accounting firm’s determination will be binding on both Executive and  TuSimple absent manifest error.   (d) As a result of uncertainty in the application of Sections 4999 and 280G of the Code at the time  of the initial determination by the accounting firm hereunder, it is possible that payments will have been made by  TuSimple which should not have been made (an “Overpayment”) or that additional payments which will not have  been made by TuSimple could have been made (an “Underpayment”), consistent in each case with the calculation  of whether and to what extent a Reduced Payment shall be made hereunder. In either event, the accounting firm  shall determine the amount of the Underpayment or Overpayment that has occurred. In the event that the accounting  firm determines that an Overpayment has occurred, the Executive shall promptly repay, or transfer, to TuSimple the  amount of any such Overpayment; provided, however, that no amount shall be payable, or transferable, by the  Executive to TuSimple if and to the extent that such payment or transfer would not reduce the amount that is subject  to taxation under Section 4999 of the Code. In the event that the accounting firm determines that an Underpayment  has occurred, such Underpayment shall promptly be paid or transferred by TuSimple to or for the benefit of the  Executive, together with interest at the applicable federal rate provided in Section 7872(f)(2) of the Code.   (e) If this Section 4 is applicable with respect to an Executive’s receipt of a Reduced Payment, it  shall supersede any contrary provision of any plan, arrangement or agreement governing the Executive’s rights to  the Payments.   5. Company’s Successors. Any successor to TuSimple or to all or substantially all of TuSimple’s business  and/or assets shall assume TuSimple’s obligations under this Agreement and agree expressly to perform TuSimple’s  obligations under this Agreement in the same manner and to the same extent as TuSimple would be required to  perform such obligations in the absence of a succession.   6. Miscellaneous Provisions.   (a) Modification or Waiver. No provision of this Agreement may be modified, waived or  discharged unless the modification, waiver or discharge is agreed to in writing and signed by Executive and by an  authorized officer of TuSimple (other than Executive). No waiver by either party of any breach of, or of compliance  with, any condition or provision of this Agreement by the other party shall be considered a waiver of any other  condition or provision or of the same condition or provision at another time.   (b) Integration. This Agreement represents the entire agreement and understanding between the  parties as to the subject matter herein and supersedes all prior or contemporaneous agreements, whether written or  oral, with respect to the subject matter of this Agreement.   (c) Choice of Law. The validity, interpretation, construction and performance of this Agreement  shall be governed by the internal substantive laws, but not the conflicts of law rules, of the State of California.   (d) Tax Withholding. Any payments provided for hereunder are subject to reduction to reflect  applicable withholding and payroll taxes and other reductions required under federal, state or local law.   (e) Notices. Any notice required by the terms of this Agreement shall be given in writing. It shall  be deemed effective upon (i) personal delivery, (ii) deposit with the United States Postal Service, by registered or  certified mail, with postage and fees prepaid or (iii) deposit with nationally recognized overnight courier, with  shipping charges prepaid. Notice shall be addressed to TuSimple at its principal executive office (attention: General  Counsel) and to Executive at the address that he or she most recently provided to TuSimple in accordance with this  Subsection (e).   

 

   5  GDSVF&H\8097938.2  (f) Severability. The invalidity or unenforceability of any provision or provisions of this  Agreement shall not affect the validity or enforceability of any other provision hereof, which shall remain in full  force and effect.   (g) Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed  an original, but all of which together will constitute one and the same instrument.   7. At-Will Employment. Nothing contained in this Agreement shall (a) confer upon Executive any right to  continue in the employ of TuSimple, (b) constitute any contract or agreement of employment, or (c) interfere in any  way with the at-will nature of Executive’s employment with TuSimple.   8. Definitions. The following terms referred to in this Agreement shall have the following meanings:   (a) “Base Salary” means Executive’s annual base salary as in effect immediately prior to an  Involuntary Termination; provided, however, that in the event of a Resignation for Good Reason due to a material  reduction in Executive’s base salary, “Base Salary” means Executive’s annual base salary as in effect immediately  prior to such reduction.   (b) “Cause” means Executive’s (i) unauthorized use or disclosure of the confidential information  or trade secrets of TuSimple or any other member of the TuSimple Group, which use or disclosure causes material  harm to TuSimple or any other member of the TuSimple Group, (ii) material breach of any agreement with  TuSimple or any other member of the TuSimple Group, (iii) material failure to comply with the written policies or  rules of TuSimple or any other member of the TuSimple Group, (iv) conviction of, or plea of “guilty” or “no  contest” to, a felony under the laws of the United States or any State, (v) gross negligence or willful misconduct, (vi)  continuing failure to perform assigned duties after receiving written notification of the failure from TuSimple, its  Board of Directors or any other member of the TuSimple Group or (vii) failure to cooperate in good faith with a  governmental or internal investigation of TuSimple, any other member of the TuSimple Group, or any of its or their  respective directors, officers or employees, if TuSimple or any other member of the TuSimple Group has requested  such cooperation.   (c) “Change in Control” means (i) a sale, conveyance or other disposition of all or substantially  all of the assets, property or business of TuSimple, except where such sale, conveyance or other disposition is to a  wholly owned subsidiary of TuSimple, (ii) a merger or consolidation of TuSimple with or into another corporation,  entity or person, other than any such transaction in which the holders of voting capital stock of TuSimple  outstanding immediately prior to the transaction continue to hold a majority of the voting capital stock of TuSimple  (or the surviving or acquiring entity) outstanding immediately after the transaction (taking into account only stock of  TuSimple held by such stockholders immediately prior to the transaction and stock issued on account of such stock  in the transaction), or (iii) the direct or indirect acquisition (including by way of a tender or exchange offer) by any  person, or persons acting as a group, of beneficial ownership or a right to acquire beneficial ownership of shares  representing a majority of the voting power of the then outstanding shares of capital stock of TuSimple; provided,  however, that a Change in Control shall not include any transaction or series of related transactions (1) principally  for bona fide equity financing purposes or (2) effected exclusively for the purpose of changing the domicile of  TuSimple. A series of related transactions shall be deemed to constitute a single transaction for purposes of  determining whether a Change in Control has occurred. In addition, if a Change in Control constitutes a payment  event with respect to any amount that is subject to Code Section 409A, then the transaction must also constitute a  “change in control event” as defined in Treasury Regulation Section 1.409A-3(i)(5) to the extent required by Code  Section 409A.   (d) “Change in Control Period” means the period commencing on the date that is three (3)  months prior to the date on which the first Change in Control occurs after the Effective Date and ending on the date  that is twelve (12) months after the date of such Change in Control.   (e) “COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.   

 

   6  GDSVF&H\8097938.2  (f) “Involuntary Termination” means either Executive’s (i) Termination Without Cause or (ii)  Resignation for Good Reason.   (g) “Resignation for Good Reason” means a Separation as a result of Executive’s resignation  from employment with TuSimple and all other members of the TuSimple Group, as applicable, within 12 months  after one of the following conditions has come into existence without Executive’s consent: (i) a reduction in  Executive’s annual Base Salary by more than 10%, other than a general reduction that is part of a cost-reduction  program that affects all similarly situated employees in substantially the same proportions, (ii) a relocation of  Executive’s principal workplace by more than 25 miles from its location prior to such Change in Control or (iii) a  material reduction of responsibilities, authority or duties, provided that neither a mere change in title alone nor  reassignment following a Change in Control to a position that is similar to the position held prior to the Change in  Control shall constitute a material reduction in job responsibilities. A Resignation for Good Reason will not be  deemed to have occurred unless the employee gives TuSimple written notice of the condition within 90 days after  the condition comes into existence and TuSimple or any other member of the TuSimple Group fails to remedy the  condition within 30 days after receiving such written notice.   (h) “Separation” means a “separation from service” as defined in the regulations under Code  Section 409A.   (i) “Termination Without Cause” means a Separation as a result of the termination of  Executive’s employment by TuSimple and all other members of the TuSimple Group, as applicable, without Cause,  provided the individual is willing and able to continue performing services within the meaning of Treasury  Regulation 1.409A-1(n)(1).    

 

     GDSVF&H\8097938.2  IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of TuSimple by its  duly authorized officer, as of the day and year indicated below.   TUSIMPLE HOLDINGS INC.  By: /s/ Xiaodi Hou   Name: Xiaodi Hou   Title: President, CEO and CTO   Date: April 20, 2022   EXECUTIVE  By: /s/ Patrick Dillon   Name: Patrick Dillon   Date: April 20, 2022

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