Document:

znga-ex102_26.htm

 

Exhibit 10.2

 

	

	
Zynga

699 8th Street

San Francisco, CA 94103

www.zynga.com

 

June 17, 2019

 

 

VIA DOCUSIGN (jbuckley@zynga.com)

 

Jeffrey Buckley

 

Re: Educational Cost and Retention Agreement with Zynga Inc.

 

Dear Jeff,

 

Zynga Inc. (the “Company”) is pleased to offer you this Educational Cost and Retention Agreement (“Agreement”) confirming the Company’s investment in your educational development and professional advancement during your Executive Master of Business Administration Program at the University of Chicago, which will take place between June 17, 2019 and April 16, 2021. The Company’s agreement to cover the cost of tuition and travel expenses related to this program is subject to the following terms: 

 

	
 
	
1.
	
Tuition Assistance. The Company will pay directly to the University of Chicago a total of up to $167,000.00 toward tuition for the Executive MBA Program into which you have been accepted (“Tuition Assistance”).  The Company will reimburse you the $5,000.00 deposit via the Company’s electronic expense reimbursement system, iExpense, subject to your submitting a receipt.  The remaining Tuition Assistance will be paid in installments as billed by the University of Chicago for the program over two years.  

 

	
 
	
2.
	
Travel Reimbursement.  The Company will reimburse you up to $5,000.00 per quarter for reasonable travel related to your attendance at the Executive MBA Program.  The total amount of travel reimbursement over the course of program will not exceed $35,000.00.  Travel costs will be subject to the Company’s Global Travel and Expense Policy and will be reimbursed via the Company’s electronic expense reimbursement system, iExpense. 

 

	
 
	
3.
	
Repayment Obligation. In the event you voluntarily resign from your employment with the Company or the Company terminates your employment for “Cause” before June 30, 2023, you will immediately pay, without demand, an amount equal to a pro-rata share of the amount the Company has actually paid towards Tuition Assistance and Travel Reimbursement (“Tuition Repayment Obligation”), based on the number of complete weeks you continue to be employed during the intended term of this Agreement (i.e., 210 weeks). For purposes of this Agreement only, “Cause” means: (i) any willful, material violation by you of any law or regulation applicable to the business of the Company; (ii) your conviction for, or plea of no contest to, a felony or a crime involving moral turpitude; (ii) commission of an act of personal dishonesty that is intended to result in your substantial personal enrichment (excluding inadvertent acts that are promptly 

 

 

Exhibit 10.2

 

	

	
Zynga

699 8th Street

San Francisco, CA 94103

www.zynga.com

 

	
 
		
cured following notice); (iii) continued material violations by you of your lawful and reasonable duties of employment (including, but not limited to, compliance with material written policies of the Company and material written agreements with the Company), which violations are demonstrably willful and deliberate on your part (but only after the Company has delivered a written demand for performance to you that describes the basis for the Company’s belief that you have not substantially performed your duties and you have not cured within a period of (15) days following notice; (iv) your willful failure (other than due to physical incapacity) to cooperate with an investigation by a governmental authority or the Company of the Company’s business or financial condition; (v) any other willful misconduct or gross negligence by you that is materially injurious to the financial condition or business reputation of the Company; or (vi) a material breach of your fiduciary duty to the Company.  You will have no obligation to reimburse the Company for any payment or expense reimbursement under this Agreement after June 30, 2023.

 

	
 
	
4.
	
Set-off Against Final Paycheck. In the event repayment is required under this Agreement, in addition to any other remedies available to the Company, you agree that the Company may deduct such amounts payable (or any portion thereof) from your wages or from any other allowances, expenses or other payments due to you.  In the event the Company is required to take legal action to recoup any repayment under this Agreement, the Company may seek additional remedies, including attorneys’ fees.

 

	
 
	
5.
	
Tax Exemption.  The tuition reimbursement paid under this Agreement is intended to qualify as a working condition fringe benefit under section 132(d) of the Internal Revenue Code of 1986. The program will help you in the performance of your current position, and is not intended to help you obtain a new position nor is the program required to perform your current job. If the payment is challenged as being not tax exempt (either as a working condition fringe benefit or for some other reason) and if deemed taxable as wages to you, you shall be solely responsible for all employment taxes, including and not limited to federal and state income taxes, State Disability Insurance taxes, Social Security Taxes and Medicare taxes, and any resulting penalties or interest, that are imposed as a result of the reclassification of the reimbursement as taxable wages, provided, that you shall not be responsible for any employment taxes that the Company would have paid had such payment been treated as wages when reimbursed.

 

	
 
	
6.
	
No Guarantee of Continued Employment.  Nothing in this Agreement constitutes a commitment or guarantee to provide continued employment to you for any specific period of time or duration. Nothing in this Agreement alters the at-will nature of your employment.

 

	
 
	
7.
	
Interpretation.  The laws of the State of California (excluding any mandating the use of another jurisdiction’s laws) govern the validity, interpretation, construction, and performance of this Agreement.  

 

 

Exhibit 10.2

 

	

	
Zynga

699 8th Street

San Francisco, CA 94103

www.zynga.com

 

	
 
	
8.
	
Successors.  You may not assign or pledge this Agreement or any rights arising under it.  Without your consent, the Company may assign this Agreement to any parent, affiliate, subsidiary, or successor that agrees in writing to be bound by this Agreement, after which any reference to the Company in this Agreement shall be deemed to be a reference to the parent, affiliate, subsidiary, or successor; however, the Company shall thereafter remain secondarily liable for any payments under this Agreement.

	
 
	
9.
	
Validity.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision, which shall remain in full force and effect.

	
 
	
10.
	
Entirety of Agreement; Amendments and Modifications Only in Writing. All oral or written agreements or representations, express or implied, with respect to the subject matter of this Agreement are set forth in this Agreement.  However, except as specifically set forth in this Agreement, this Agreement does not override other written agreements you have executed relating to specific aspects of your employment with the Company, specifically including, but not limited to, the Offer of Employment by Zynga and the Employee Invention Assignment and Confidentiality Agreement you signed upon commencement of employment with the Company.  No change can be made to this Agreement other than in a writing signed by all parties. 

 

I understand and accept the terms outlined above:

 

 

	
/s/ Jeff Buckley
	
 
	
July 16, 2019

	
Jeff Buckley
	
 
	
Date

 

 

For Zynga Inc.:

 

 

	
/s/ Ger Griffin
	
 
	
July 16, 2019

	
Ger Griffin, CFO
	
 
	
Date

 

 

	
/s/Jeff Ryan
	
 
	
July 18, 2019

	
Jeff Ryan, CPO
	
 
	
DateExhibit

Exhibit 10.1

COMPANY CONFIDENTIAL

TO:        Jose Larios

FROM:        Peter J. Ryan

DATE:        June 12, 2019

SUBJECT:    Sale of Power & Energy Business

As you know, SPX FLOW, Inc. (the "Company') is actively pursuing the sale of its Power and Energy business ("P&E"), whether through the sale of stock or of assets or a combination thereof ("Sale of P&E"). We recognize the additional burden this places on you as the leader of the P&E executive team, and would like to help ensure your commitment to the process by providing you with the below supplemental compensation and severance protections associated with the Sale of P&E:

		
	1.
	Retention Incentive

		
	2.
	Special Vesting

		
	3.
	Pre-Closing Severance Payment

		
	4.
	Post-Closing Severance Payment

This compensation is subject to the terms and conditions described below, as well as the terms and conditions of the relevant documents relating to compensation and benefit plans that you are currently eligible for, and there is no guarantee that each will be earned and paid.

		
	1.
	Retention Incentive: an incentive payment equal to one hundred percent (100%) of your annual base salary in effect as of the final closing date of an agreed upon Sale of P&E (the "Closing"), payable within sixty (60) days after the Closing (the "Retention Incentive"); and

		
	2.
	Special Vesting: your unvested time-based restricted stock and restricted stock units which would have vested within the one (1) year period following the Closing (had you remained employed by the Company) shall become fully vested as of the Closing (the "Special Vesting"), and shall be settled within thirty (30) days after the Closing. All other unvested restricted stock and restricted stock units granted to you by the Company shall be subject to the terms (including forfeiture) of the applicable award agreement and equity plan. (collectively the Retention Incentive and Special Vesting are referred to herein as the "Incentive Payments").

		
	3.
	Pre-Closing Severance Payment: in the event that the Company terminates your employment without Cause (as defined in your Change of Control Agreement dated August 29, 2016) during the period from May 21, 2019 through the earlier of (i) the Closing or (ii) May 31, 2020, you will be eligible to receive a severance payment (the "Pre-Closing Severance Payment") equal to (A) one (1) year of your base salary in effect as of the date of termination plus (B) your target bonus in effect as of the date of termination. The Pre-Closing Severance Payment shall be payable, subject to the execution and non-revocation of a release as described below, in a lump sum payment within sixty (60) days following the termination of your employment without Cause.

		
	4.
	Post-Closing Severance Payment: in the event that the purchaser of P&E terminates your employment without Cause within one (1) year following the Closing, you will be eligible to receive a severance payment (the "Post-Closing Severance Payment") equal to (A) one (1) year of your base salary in effect as of the Closing plus (B) your target bonus in effect as of the Closing. The Post-Closing Severance Payment shall be payable, subject to the execution and nonrevocation of a release as described below, in a lump sum payment within sixty (60) days following the termination of your employment without Cause. For the avoidance of doubt, in no event will you be entitled to both a Pre-Closing Severance Payment and a Post-Closing Severance Payment.

The Pre-Closing Severance Payment, the Post-Closing Severance Payment and the Incentive Payments (collectively, the "Payments") shall be subject to applicable taxes and withholdings. The Payments shall not be considered as compensation eligible for deferral under any tax-qualified retirement savings plan or supplemental non-qualified plan, nor as pensionable compensation under any defined benefit retirement plan in which you participate. In addition, the Payments shall not be considered compensation for purposes of calculating any incentive for which you may be eligible. Each Payment made pursuant to this letter agreement are 

separate payments (within the meaning of Section 409A of the Internal Revenue Code (the "Code")) and are intended to be exempt from, or be made in compliance with, Section 409A of the Code. For purposes of this letter, the terms "terminate," "terminated" and "termination" mean a termination of your employment that constitutes a "separation from service" within the meaning of the default rules under Section 409A of the Code.

The Incentive Payments and the Post-Closing Severance Payment provided hereunder will be contingent upon (1) the consummation of the Sale of P&E to an unrelated third party on or before May 31, 2020, (2) your active cooperation in supporting the sale process, and (3) your active employment and satisfactory performance, as determined by the Company in its sole discretion, throughout the period from now through and including the Closing.

The Pre-Closing Severance Payment will be contingent upon your signing, and not revoking, a general release satisfactory to the Company (the "Release"), which will be given to you for your consideration prior to or on the date of the termination of your employment. 

In addition, (i) the Incentive Payments will be contingent upon your signing, and not revoking, a Release, which will be given to you for your consideration on or after the Closing and (ii) the Post-Closing Severance Payment will be contingent upon your signing, and not revoking, a Release, which will be given to you for your consideration prior to or on the date of the termination of your employment and will be in substantially the same form as that provided by the Company prior to the Closing. To the extent that the applicable consideration period for a required Release spans two calendar years, the applicable Payment will always be made in the second calendar year. In the event that you breach any provision of such general release, all Payments under this arrangement shall cease and the Company shall be entitled to the immediate return of any Payments previously made.

Nothing contained herein shall be deemed a guarantee of employment or continued employment by the Company or by the purchaser, regardless of whether the contemplated sale is consummated. Either the Company or you may terminate your employment with or without Cause at any time prior to the Closing. Nothing contained herein shall be deemed to obligate the Company to sell P&E. The Company's determination whether to consummate such a transaction shall be final and binding, and the consummation of any such sale must ultimately be approved or rejected by the SPX FLOW Board of Directors in its sole and exclusive discretion.

The Payments shall be in lieu of any and all rights or entitlements to severance pay under any Company plan, policy, benefit or procedure, or any agreement between you and the Company or you and the purchaser of P&E; provided, however, the Payments shall not be in lieu of the bonus (if any) payable to you under the SPX FLOW 2019 Enterprise Incentive Plan.

This document states the entire agreement between you and the Company regarding the subject matter hereof; provided, however, that this arrangement shall not supersede any confidentiality, non-competition or other protective covenants you have with the Company, all of which shall remain in full force and effect.

Any other statements, whether verbal or written, which are inconsistent with the terms and conditions set forth in this document are unauthorized by the Company. Any amendments or modifications to this arrangement shall be in writing and designated as such and signed by both parties.

Kindly indicate your acknowledgment and acceptance of this arrangement by signing below and returning a copy to me.

Sincerely,

/s/ Marcus G. Michael
Marcus G. Michael
President and Chief Executive Officer

ACKNOWLEDGE AND ACCEPTED

/s/ Jose Larios
Jose Larios
President, Power & Energy

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