Document:

Exhibit 10.16

 

MILLENNIAL MEDIA, INC.

 

KEY EMPLOYEE AGREEMENT

 

This KEY EMPLOYEE AGREEMENT (the “Agreement”) is entered into effective January 25, 2014 (the “Effective Date”) by and between MICHAEL BARRETT (the “Executive”) and MILLENNIAL MEDIA, INC., a Delaware corporation (the “Company”).

 

The Company desires to employ the Executive and, in connection therewith, to compensate the Executive for Executive’s personal services to the Company; and

 

The Executive wishes to be employed by the Company and provide personal services to the Company in return for certain compensation.

 

Accordingly, in consideration of the mutual promises and covenants contained herein, the parties agree to the following:

 

1.                                      EMPLOYMENT BY THE COMPANY.

 

1.1                               Position.  Subject to the terms set forth herein, the Company agrees to employ Executive in the position of President and Chief Executive Officer, and Executive hereby accepts such employment.  During the term of Executive’s employment with the Company, subject to Section 4.1, Executive will devote Executive’s best efforts and substantially all of Executive’s business time and attention to the business of the Company (except for vacation periods as set forth herein and reasonable periods of illness or other incapacities permitted by the Company’s general employment policies).

 

1.2                               Duties.  Executive shall serve as the Chief Executive Officer of the Company, reporting to the Board of Directors of the Company (the “Board”) and performing such duties and having such authority and powers as are customarily associated with the chief executive officer of a company together with such other duties as are consistent with that position and assigned to the Executive from time to time by the Board.  Executive will also be nominated as a member of the Board and shall serve on the Board subject to approval by the Company’s stockholders.

 

1.3                               Other Employment Policies.  The employment relationship between the parties shall also be governed by the general employment policies and practices of the Company, including those relating to protection of confidential information and assignment of inventions, except that when the terms of this Agreement differ from or are in conflict with the Company’s general employment policies or practices, this Agreement shall control.

 

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2.                                      COMPENSATION.

 

2.1                               Salary.  As of the Effective Date, Executive shall receive for Executive’s services to be rendered hereunder an annualized base salary of $500,000.  Executive’s base salary is subject to standard federal and state payroll withholding requirements, payable in accordance with Company’s standard payroll practices.  This amount will be reviewed each year during the term of Executive’s employment in accordance with the Company’s standard practices and will be subject to increase, if any, as may be approved by the Board (or Compensation Committee thereof), but may not be decreased during the term of Executive’s employment without Executive’s prior written consent except under the circumstances described in Section 6.4(b)(ii) below (Executive’s salary, as may be increased or decreased in accordance with this Agreement from time to time is hereinafter referred to as “Base Salary”).

 

2.2                               Bonus.  Executive shall be eligible for an annual incentive bonus award opportunity in respect of each fiscal year during his term of employment (the “Annual Bonus”).  As of the Effective Date, Executive shall have the opportunity to earn an annual incentive bonus award equal to a maximum amount of 80% of Base Salary.  Any Annual Bonus shall be awarded by the Board in its sole discretion based upon an annual incentive plan adopted by the Board (or Compensation Committee thereof) at or near the beginning of each fiscal year during the term hereof.  Any Annual Bonus shall be paid to Executive at the same time as annual bonuses are generally payable to other senior executives of the Company, but in all events, any Annual Bonus earned pursuant to this Section 2.2 will be paid on or before March 15 of the year following the year for which it is earned.

 

2.3                               Equity Compensation.

 

(a)                                 Stock Option.  As soon as practicable after the Effective Date, and subject to approval by the Board, Executive shall be granted an option to purchase 1,500,000 shares of the Company’s common stock  (the “Initial Option”) pursuant to the Company’s 2012 Equity Incentive Plan, as may be amended from time to time (the “Plan”).  The Initial Option shall be an incentive stock option to the extent permissible under Section 422 of the Internal Revenue Code and have an exercise price equal to the fair market value of the stock on the date of the grant by the Board.  The complete terms and conditions of the Initial Option shall be set forth in a separate grant notice and/or agreement between Executive and the Company.

 

(b)                                 Restricted Stock Units.  In addition, as soon as practicable after the Effective Date, and subject to approval by the Board, Executive shall be granted 500,000 Restricted Stock Units (“Initial RSUs”) pursuant to the Plan.  The complete terms and conditions of the Initial RSUs shall be set forth in a separate grant notice and/or agreement between Executive and the Company.  In addition, if Executive meets certain performance goals as established and determined by the Company in its sole discretion, then Executive will be eligible to be granted additional RSUs up to the value of $2,000,000 annually, as decided by the Company in its sole discretion; provided, however, that for 2015 the value of the RSU grant shall be no less than $1,500,000.

 

(c)                                  Vesting.  The Initial Option and Initial RSUs granted to Executive will vest according to the following schedule:

 

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(i)                                    Basic Vesting:  The Initial RSUs shall vest in four (4) equal quarterly installments on March 31, 2014, June 30, 2014, September 30, 2014 and December 31, 2014 and the Initial Option shall vest in twelve (12) equal quarterly installments over the four (4) year period following the Effective Date, with the first installment vesting on March 31, 2015 and then thereafter on the last day of each June, September, December and March through March 31, 2018, in each case subject to Executive’s Continuous Service (as defined in the Plan) through the applicable vesting date.

 

(ii)                                Acceleration of Vesting Upon Termination without Cause or Resignation for Good Reason:  In addition, subject to Executive executing and allowing the Release (as defined below) to become effective in the manner described in Section 6.1(b) below (1) in the event Executive’s employment is terminated without Cause or for Good Reason on or before the second anniversary of the Effective Date, 50% of the then-unvested portion of the Initial Option and Initial RSUs shall accelerate and become vested as of the date of Separation from Service, and (2) in the event Executive’s employment is terminated without Cause or for Good Reason after the second anniversary of the Effective Date, 100% of the then-unvested portion of the Initial Option shall accelerate and become vested effective as of the date of Separation from Service, in each case provided that in no event will Executive receive acceleration of vesting under both this Section 2.3(c)(ii) and under the portion of Section 2.3(c)(iii) relating to a Double Trigger Event; and

 

(iii)                            Acceleration of Vesting in Connection with a Change in Control:  In addition, 50% of the then-unvested portion of the Initial Option and Initial RSUs shall accelerate upon a “Single Trigger Event” (as defined below), subject to Executive’s Continuous Service as of immediately prior to the closing of the Single Trigger Event.  In addition, 100% of the then-unvested portion of the Initial Option and Initial RSUs shall accelerate upon a “Double Trigger Event” (as defined below), subject to Executive executing and allowing the Release (as defined below) to become effective in the manner described in Section 6.1(b) below (provided that this acceleration is in lieu of, and not in addition to, any acceleration provided in Section 2.3(c)(ii) above).

 

(1)                                 A “Single Trigger Event” shall mean that a “Change in Control” (as such term is defined in the Plan)  has been consummated.

 

(2)                                 A “Double Trigger Event” shall mean that (1) a “Change in Control” (as such term is defined in the Plan) has been consummated and (2) Executive has been terminated by the Company without “cause”, or Executive has resigned from his employment with the Company for “good reason” (as “cause” and “good reason” are defined below), in either case, within two (2) months prior to, as of, or within twelve (12) months after, the date that such Change in Control has been consummated.

 

2.4                               Standard Company Benefits.  Executive shall be entitled to all rights and benefits for which the Executive is eligible under the terms and conditions of the standard Company benefits and compensation practices which may be in effect from time to time and provided by the Company to its Executives generally, including four (4) weeks of paid vacation subject to the terms of the Company’s vacation policy.  The Company may adopt, change or delete plans, policies and provisions in its sole discretion.

 

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2.5                               Expense Reimbursement.  The Company will promptly reimburse Executive for reasonable business expenses in accordance with the Company’s standard expense reimbursement policy.  In addition, the Company will reimburse up to $10,000 in documented legal fees and disbursements incurred by Executive in connection with the review and negotiation of this Agreement within fifteen (15) days after Executive submits to the Company documentation with respect to such legal fees and disbursements, but in no event shall such reimbursement be paid later than December 31, 2014.

 

3.                                      PROPRIETARY INFORMATION, INVENTIONS, NON-COMPETITION AND NON-SOLICITATION OBLIGATIONS.

 

3.1                               Agreement.  As a condition of employment, Executive agrees to execute and abide by the Employee Nondisclosure and Developments Agreement (the “Proprietary Information Agreement”), which may be amended by the parties from time to time without regard to this Agreement.  The Proprietary Information Agreement contains provisions that are intended by the parties to survive and do survive termination or expiration of this Agreement.

 

4.                                      OUTSIDE ACTIVITIES.

 

4.1                               Other Employment/Enterprise.  Except with the prior written consent of the Board, Executive will not, while employed by the Company, undertake or engage in any other employment, occupation or business enterprise, other than those in which Executive is a passive investor.  Executive may engage in limited advisory relationships with and serve on the boards of other companies (provided such companies are not in competitive markets), scientific research, scholarly writing and publications, and civic and not-for-profit activities so long as such activities do not materially interfere with the performance of Executive’s duties hereunder.

 

4.2                               Conflicting Interests.  Except as permitted by Section 4.3, while employed by the Company, Executive agrees not to acquire, assume or participate in, directly or indirectly, any position, investment or interest known by Executive to be adverse or antagonistic to the Company, its business or prospects, financial or otherwise.

 

4.3                               Competing Enterprises.  While employed by the Company, except on behalf of the Company, Executive will not directly or indirectly, whether as an officer, director, stockholder, partner, proprietor, associate, representative, consultant, or in any capacity whatsoever engage in, become financially interested in, be employed by or have any business connection with any other person, corporation, firm, partnership or other entity whatsoever which were known by Executive to compete directly with the Company, throughout the world, in any line of business engaged in (or then currently planned to be engaged in) by the Company; provided, however, that anything above to the contrary notwithstanding, Executive may own, as a passive investor, securities of any public competitor corporation, so long as Executive’s direct holdings in any one such corporation shall not in the aggregate constitute more than 2% of the voting stock of such corporation.

 

5.                                      FORMER EMPLOYMENT.

 

5.1                               No Conflict With Existing Obligations.  Executive represents that Executive’s performance of all the terms of this Agreement and as an Executive of the Company

 

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do not and will not materially breach any agreement or obligation of any kind made prior to Executive’s employment by the Company, including agreements or obligations Executive may have with prior employers or entities for which Executive has provided services.  Executive has not entered into, and agrees Executive will not enter into, any agreement or obligation, either written or oral, in conflict herewith.

 

5.2                               No Disclosure of Confidential Information.  If, in spite of Section 5.1, Executive should find that confidential information belonging to any former employer might be usable in connection with the Company’s business, Executive will not intentionally disclose to the Company or use on behalf of the Company any confidential information belonging to any of Executive’s former employers (except in accordance with agreements between the Company and any such former employer); but during Executive’s employment by the Company Executive will use in the performance of Executive’s duties all information which is generally known and used by persons with training and experience comparable to Executive’s own and all information which is common knowledge in the industry or otherwise legally in the public domain.

 

6.                                      TERMINATION OF EMPLOYMENT. The parties acknowledge that Executive’s employment relationship with the Company is at-will.  Either Executive or the Company may terminate the employment relationship at any time, with or without Cause.  The provisions of Sections 6.1 through 6.6 govern the amount of compensation, if any, to be provided to Executive upon termination of employment and do not alter this at-will status.

 

6.1                               Termination by the Company Without Cause.

 

(a)                                 The Company shall have the right to terminate Executive’s employment with the Company at any time without Cause (as defined in Section 6.2(b) below) by giving notice as described in Section 6.6 of this Agreement.

 

(b)                                 In the event Executive’s employment is terminated without Cause, then provided that the Executive executes a general release in favor of the Company, in form and substance reasonably acceptable to the Company (the “Release”), which Release is effective as of the date required by the Release agreement, but in no event later than 60 days following Executive’s separation from service (as defined under Treasury Regulation Section 1.409A-1(h), and without regard to any alternate definition thereunder, a “Separation from Service”), and subject to Section 6.1(c), then:

 

(i)                                    the Company shall continue to pay Executive as severance Executive’s then-effective Base Salary for a period of the first twelve (12) months following Executive’s Separation from Service (the “Severance Period”), less applicable withholdings and deductions, on the Company’s regular payroll dates;

 

(ii)                                Executive shall be entitled to any additional acceleration of vesting of the Initial Option and Initial RSUs as set forth in Section 2.3(c)(ii); and

 

(iii)                            if Executive is participating in the Company’s group health insurance plans on the Separation from Service, and Executive timely elects and remains eligible for continued coverage under COBRA, or, if applicable, state insurance laws, the Company shall pay that portion of Executive’s COBRA premiums that the Company was paying prior to the

 

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Separation from Service for the Severance Period or for the continuation period for which Executive is eligible, whichever is shorter (such shorter period, the “COBRA Payment Period”).  The Company’s COBRA premium payment obligation will end immediately if the Executive obtains health care insurance from any other source during the Severance Period.  However, if at any time the Company determines, in its discretion, that the payment of the COBRA premiums would be reasonably likely to result in a violation of the nondiscrimination rules of Section 105(h)(2) of the Internal Revenue Code of 1986, as amended (the “Code”) or any statute or regulation of similar effect (including, without limitation, the 2010 Patient Protection and Affordable Care Act, as amended by the 2010 Health Care and Education Reconciliation Act), then in lieu of providing the Company’s portion of the COBRA premiums, the Company will instead pay Executive, on the first day of each month of the remainder of the COBRA Payment Period, a fully taxable cash payment equal to the portion of the COBRA premiums that the Company was paying prior to the date of Executive’s Separation from Service for that month, subject to applicable tax withholdings and deductions.

 

(c)                                  The Company will not make any payments to Executive with respect to any of the benefits pursuant to Section 6.1(b) prior to the 60th day following Executive’s Separation from Service. On the 60th day following Executive’s Separation from Service, and provided that Executive has delivered an effective Release, the Company will make the first payment to Executive under Section 6.1(b) in a lump sum equal to the aggregate amount of payments that the Company would have paid Executive through such date had the payments commenced on the date of Executive’s Separation from Service through such 60th day, with the balance of the payments paid thereafter on the schedule described above, subject to any delay in payment required by Section 7.11.

 

(d)                                 The benefits provided to Executive pursuant to this Section 6.1 are in lieu of, and not in addition to, any benefits to which Executive may otherwise be entitled under any Company severance plan, policy or program.

 

6.2                               Termination by the Company for Cause.

 

(a)                                 The Company shall have the right to terminate Executive’s employment with the Company at any time for Cause by giving notice as described in Section 6.6 of this Agreement.

 

(b)                                 “Cause” for termination shall mean:  (i) Executive’s commission of any act constituting a felony or a crime involving fraud or moral turpitude; (ii) Executive’s wrongful act or omission which results in material harm to the Company; (iii) Executive’s willful violation of any material Company policy that has, prior to any alleged violation, been communicated in writing to the Executive, and which results in material harm to the Company; (iv) Executive’s material breach of any written agreement between the Executive and the Company which results in material harm to the Company; (v) Executive’s conduct that demonstrates gross unfitness to serve the Company as determined in the sole discretion of the Board; or (vi) breach of fiduciary duty by Executive which results in an improper benefit to Executive or material harm to the Company, its shareholders, or their respective interests.

 

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(c)                                  In the event Executive’s employment is terminated at any time for Cause, Executive will not be entitled to receive severance pay or any other such severance compensation, except that, pursuant to the Company’s standard payroll policies, the Company shall pay to Executive the accrued but unpaid salary of Executive through the date of termination, together with all compensation and benefits payable to Executive through the date of termination under any compensation or benefit plan, program or arrangement during such period.

 

6.3                               Resignation by the Executive.

 

(a)                                 Executive may resign from Executive’s employment with the Company at any time by giving notice as described in Section 6.6.

 

(b)                                 In the event Executive resigns from Executive’s employment with the Company (other than for Good Reason as set forth in Section 6.4), Executive will not receive severance pay or any other such severance compensation, except that, pursuant to the Company’s standard payroll policies, the Company shall pay to Executive the accrued but unpaid salary of Executive through the date of resignation, together with all compensation and benefits payable to Executive through the date of resignation under any compensation or benefit plan, program or arrangement during such period.

 

6.4                               Resignation by the Executive for Good Reason.

 

(a)                                 Provided Executive has not previously been notified of the Company’s intention to terminate Executive’s employment, the Executive may resign from Executive’s employment for “Good Reason” within sixty (60) days after the occurrence of one of the events specified in Section 6.4(b) below, by giving notice as described in Section 6.6 of this Agreement.

 

(b)                                 “Good Reason” for resignation shall mean the occurrence of any of the following without the Executive’s prior written consent:  (i) a material diminution of Executive’s authority, responsibilities or duties; provided, however, that the acquisition of the Company and subsequent conversion of the Company to a division or unit of the acquiring company will not by itself result in a diminution of Executive’s responsibilities or duties; (ii) a material diminution by the Company in Executive’s Base Salary; (iii) the relocation of the Company’s principal offices to a location outside the New York City, NY metropolitan area, or the Company’s requiring Executive to be based anywhere other than the Company’s principal offices in New York City; or (iv) a material breach of this Agreement by the Company, which shall include without limitation the failure to nominate Executive for re-election to the Board; provided, that prior to any termination for Good Reason pursuant to clauses (i), (ii), (iii) or (iv) of this Section 6.4(b), the Executive shall first provide the Board with reasonable written notice, setting forth the reasons that the Executive believes exist that give rise to “Good Reason” for resignation, stating that the Company shall have fifteen (15) business days to cure such “Good Reason”, and the “Good Reason” has not been cured by the Company within fifteen (15) business days after such notice has been delivered.  Notwithstanding the foregoing, any actions taken by the Company to accommodate a disability of the Executive or pursuant to the Family and Medical Leave Act shall not be a Good Reason for purposes of this Agreement.

 

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(c)                                  In the event Executive resigns from Executive’s employment for Good Reason, and subject to Section 6.4(d), the Executive shall be entitled to receive the same payments and benefits as Executive would receive under Section 6.1 had Executive been terminated by the Company without Cause, provided that Executive executes a Release in favor of the Company that meets the criteria specified in Section 6.1(b) and that Executive’s receipt of the payments and benefits are subject to all the terms and conditions of Section 6.1(c).

 

(d)                                 Executive shall not receive any of the benefits pursuant to Section 6.4(c) unless and until the Release becomes effective and can no longer be revoked by Executive under its terms.

 

(e)                                  The benefits provided to the Executive pursuant to this Section 6.4 are in lieu of, and not in addition to, any benefits to which Executive may otherwise be entitled under any Company severance plan, policy or program.

 

6.5                               Termination by Virtue of Death or Disability of the Executive.

 

(a)                                 In the event of Executive’s death during the term of this Agreement, all obligations of the parties hereunder shall terminate immediately, and the Company shall, pursuant to the Company’s standard payroll policies, pay to the Executive’s legal representatives Executive’s accrued but unpaid salary through the date of death together with all compensation and benefits payable to Executive through the date of death under any compensation or benefit plan, program or arrangement during such period; provided that, subject to Executive or a representative of Executive’s estate executing and allowing the Release to become effective in the manner described in Section 6.1(b) above, the Initial Option and the Initial RSUs shall be subject to the same accelerated vesting as would apply under Section 2.3(c)(ii) as if Executive’s employment had been terminated without Cause or for Good Reason.

 

(b)                                 Subject to applicable state and federal law, the Company shall at all times have the right, upon written notice to the Executive, to terminate this Agreement based on the Executive’s Disability (as defined below).  Termination by the Company of the Executive’s employment based on “Disability” shall mean termination because the Executive is unable to perform the essential functions of Executive’s position with or without accommodation due to a disability (as such term is defined in the Americans with Disabilities Act) for six months in the aggregate during any twelve month period. This definition shall be interpreted and applied consistent with the Americans with Disabilities Act, the Family and Medical Leave Act and other applicable law.  In the event Executive’s employment is terminated based on the Executive’s Disability, Executive will not receive severance pay or any other such compensation; provided, however, the Company shall, pursuant to the Company’s standard payroll policies, pay to Executive the accrued but unpaid salary of Executive through the date of termination, together with all compensation and benefits payable to Executive through the date of termination under any compensation or benefit plan, program or arrangement during such period.

 

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6.6                               Notice; Effective Date of Termination.

 

(a)                                 Termination of Executive’s employment pursuant to this Agreement shall be effective on the earliest of:

 

(i)                                    immediately after the Company gives written notice to Executive of Executive’s termination without Cause, unless the Company specifies a later date, in which case, termination shall be effective as of such later date;

 

(ii)                                immediately after the Company gives written notice to Executive of Executive’s termination for Cause;

 

(iii)                            immediately upon the Executive’s death;

 

(iv)                             thirty (30) days after the Company gives written notice to Executive of Executive’s termination on account of Executive’s disability, unless the Company specifies a later date, in which case, termination shall be effective as of such later date, provided, that Executive has not returned to the full time performance of Executive’s duties prior to such date; or

 

(v)                                 thirty (30) days after the Executive gives written notice to the Company of Executive’s resignation and (in the case of a resignation for Good Reason) otherwise fully complies with the procedures set forth in Section 6.4(b) above, unless the Company agrees to a different date at any time between the date of notice and the date of resignation, in which case the Executive’s resignation shall be effective as of such other date.

 

(b)                                 Executive will receive compensation through any required notice period in the event of termination for any reason.  However, the Company reserves the right to require that the Executive not perform any services or report to work during any required notice period.

 

7.                                      GENERAL PROVISIONS.

 

7.1                               Notices.  Any notices provided hereunder must be in writing and shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by electronic mail, telex or confirmed facsimile if sent during normal business hours of the recipient, and if not, then on the next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt.  All communications shall be sent to the Company at its primary office location and to Executive at Executive’s address as listed on the Company payroll, or at such other address as the Company or the Executive may designate by ten (10) days advance written notice to the other.

 

7.2                               Severability.  Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will

 

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not affect any other provision or any other jurisdiction, but this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provisions had never been contained herein.

 

7.3                               Waiver.  If either party should waive any breach of any provisions of this Agreement, Executive or it shall not thereby be deemed to have waived any preceding or succeeding breach of the same or any other provision of this Agreement.

 

7.4                               Complete Agreement.  This Agreement, together with the Proprietary Information Agreement, constitutes the entire agreement between Executive and the Company with regard to the subject matter hereof.  This Agreement is the complete, final, and exclusive embodiment of their agreement with regard to this subject matter and supersedes any prior oral discussions or written communications and agreements.  This Agreement is entered into without reliance on any promise or representation other than those expressly contained herein, and it cannot be modified or amended except in writing signed by Executive and an authorized officer of the Company.

 

7.5                               Counterparts.  This Agreement may be executed in separate counterparts, any one of which need not contain signatures of more than one party, but all of which taken together will constitute one and the same Agreement.

 

7.6                               Headings.  The headings of the sections hereof are inserted for convenience only and shall not be deemed to constitute a part hereof nor to affect the meaning thereof.

 

7.7                               Successors and Assigns.  This Agreement is intended to bind and inure to the benefit of and be enforceable by Executive and the Company, and their respective successors, assigns, heirs, executors and administrators, except that Executive may not assign any of Executive’s duties hereunder and Executive may not assign any of Executive’s rights hereunder without the written consent of the Company.

 

7.8                               Survival.  Executive’s obligations under the Proprietary Information Agreement shall survive termination of Executive’s employment with the Company, as provided therein.

 

7.9                               Choice of Law.  All questions concerning the construction, validity and interpretation of this Agreement will be governed by the law of the State of Maryland.

 

7.10                        Resolution of Disputes.  Any controversy arising out of or relating to this Agreement or the breach hereof shall be settled by binding arbitration in accordance with the National Rules for the Resolution of Employment Disputes of the American Arbitration Association (before a panel of arbitrators) and judgment upon the award rendered may be entered in any court having jurisdiction thereof.  The location for the arbitration shall be the New York City, NY metropolitan area.  Any award made by such panel shall be final, binding and conclusive on the parties for all purposes, and judgment upon the award rendered by the arbitrators may be entered in any court having jurisdiction thereof.  The arbitrators’ fees and expenses and all administrative fees and expenses associated with the filing of the arbitration shall be borne by the Company; provided, however, that at Executive’s option, Executive may

 

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voluntarily pay up to one-half the costs and fees. The parties acknowledge and agree that their obligations under this arbitration agreement survive the termination of this Agreement and continue after the termination of the employment relationship between Executive and the Company.

 

7.11                        Application of Section 409A. It is intended that all of the benefits provided under this Agreement satisfy, to the greatest extent possible, the exemptions from the application of Section 409A of the Code and the regulations and other guidance thereunder and any state law of similar effect (collectively, “Section 409A”) provided under Treasury Regulations Sections 1.409A-1(b)(4), 1.409A-1(b)(5), and 1.409A-1(b)(9), and this Agreement will be construed to the greatest extent possible as consistent with those provisions. To the extent not so exempt, this Agreement (and any definitions in this Agreement) will be construed in a manner that complies with Section 409A, and incorporates by reference all required definitions and payment terms. For purposes of Section 409A (including, without limitation, for purposes of Treasury Regulations Section 1.409A-2(b)(2)(iii)), Executive’s right to receive any installment payments under this Agreement will be treated as a right to receive a series of separate payments and, accordingly, each installment payment under this Agreement will at all times be considered a separate and distinct payment. Notwithstanding anything to the contrary set forth herein, any payments and benefits provided under this Agreement (or under any other arrangement with Executive) that constitute “deferred compensation” shall not commence in connection with Executive’s termination of employment unless and until Executive has also incurred a Separation from Service.  If the Company determines that any of the payments or benefits upon a Separation from Service provided under this Agreement (or under any other arrangement with Executive) constitute “deferred compensation” under Section 409A and if Executive is a “specified employee” of the Company (as defined in Section 409A(a)(2)(B)(i) of the Code) at the time of his Separation from Service, then, solely to the extent necessary to avoid the incurrence of the adverse personal tax consequences under Section 409A, the timing of the payments upon a Separation from Service will be delayed as follows: on the earlier to occur of (i) the date that is six months and one day after the effective date of Executive’s Separation from Service, and (ii) the date of Executive’s death (the earlier date, the “Delayed Initial Payment Date”), the Company will (A) pay to Executive a lump sum amount equal to the sum of the payments upon Separation from Service that Executive would otherwise have received through the Delayed Initial Payment Date if the commencement of the payments had not been delayed pursuant to this Section 7.11, and (B) begin paying the balance of the payments in accordance with the applicable payment schedules set forth above. No interest will be due on any amounts so deferred.

 

7.12                        Golden Parachute Excise Tax.  The Company and Executive agree that Executive’s execution of a non-competition agreement is a material inducement to the severance payments and benefits provided pursuant to this Agreement, and the Company further agrees such severance payments and benefits are payable on account of such non-competition agreement.  Notwithstanding the foregoing, if any payment or benefit Executive would receive from the Company or otherwise in connection with a Change in Control (as defined in the Plan) or other similar transaction (“Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment will be equal to the Reduced Amount.  The “Reduced Amount” will be either (x) the largest portion of the Payment

 

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that would result in no portion of the Payment being subject to the Excise Tax, or (y) the largest portion, up to and including the total, of the Payment, whichever amount ((x) or (y)), after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in Executive’s receipt of the greater economic benefit notwithstanding that all or some portion of the Payment may be subject to the Excise Tax.  If a Reduced Amount will give rise to the greater after tax benefit, the reduction in the Payments will occur in the following order: (a) reduction of cash payments; (b) cancellation of accelerated vesting of equity awards other than stock options; (c) cancellation of accelerated vesting of stock options; and (d) reduction of other benefits paid to Executive.  Within any such category of payments and benefits (that is, (a), (b), (c) or (d)), a reduction will occur first with respect to amounts that are not “deferred compensation” within the meaning of Section 409A and then with respect to amounts that are.  In the event that acceleration of compensation from Executive’s equity awards is to be reduced, such acceleration of vesting will be canceled, subject to the immediately preceding sentence, in the reverse order of the date of grant.

 

The registered public accounting firm engaged by the Company for general audit purposes as of the day prior to the effective date of the event described in Section 280G(b)(2)(A)(i) of the Code will perform the foregoing calculations.  If the registered public accounting firm so engaged by the Company is serving as accountant or auditor for the acquirer or is otherwise unable or unwilling to perform the calculations, the Company will appoint a nationally recognized firm that has expertise in these calculations to make the determinations required hereunder.  The Company will bear all expenses with respect to the determinations by such independent registered public accounting firm required to be made hereunder.  The firm engaged to make the determinations hereunder will provide its calculations, together with detailed supporting documentation, to the Company and Executive within thirty (30) calendar days after the date on which Executive’s right to a Payment is triggered (if requested at that time by the Company or Executive) or such other time as reasonably requested by the Company or Executive.  Any good faith determinations of the independent registered public accounting firm made hereunder will be final, binding and conclusive upon the Company and Executive.

 

IN WITNESS WHEREOF, the parties have executed this Key Employee Agreement on the Effective Date.

 

 

	
 
    	
MILLENNIAL   MEDIA, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael Avon
    
	
 
    	
 
    	
Michael   Avon
    
	
 
    	
 
    	
Chief   Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Michael Barrett
    
	
 
    	
Michael   Barrett
    

 

12Exhibit 10.17

 

SEPARATION AGREEMENT AND RELEASE OF CLAIMS

 

This Separation Agreement and Release of Claims (this “Agreement”) is hereby made and entered into on January 25, 2014 (the “Effective Date”) by and between Paul Palmieri (“Mr. Palmieri”) and Millennial Media, Inc., a Delaware corporation, including any of its parent, subsidiary, affiliated and/or related entities, and their directors, administrators, officers, employees, agents, insurers, attorneys, representatives and assigns (collectively, “Millennial” or the “Company,” and together with Mr. Palmieri, the “Parties”).

 

WITNESSETH

 

WHEREAS, Mr. Palmieri is the Chairman of the Board of Directors (the “Board”), President and Chief Executive Officer of Millennial, and his employment is governed by the terms of an Amended and Restated Key Employee Agreement, dated March 14, 2012, as amended (such Agreement and all amendments, if any, collectively referred to as the “Employment Agreement”);

 

WHEREAS, Mr. Palmieri has decided to voluntarily resign from his positions as Chairman, as a member of the Board, President and Chief Executive Officer of Millennial as of January 25, 2014, and the Parties have decided to voluntarily end their employment relationship and acknowledge that Mr. Palmieri’s employment with the Company will cease at the close of business on February 1, 2014 (the “Separation Date”);

 

WHEREAS, contemporaneously with the execution of this Agreement, the Parties intend to enter into a consulting agreement (the “Consulting Agreement”) whereby Mr. Palmieri will provide certain consulting and advisory services to Millennial from and after the Separation Date and otherwise on the terms set forth in the Consulting Agreement; and

 

WHEREAS, the Parties wish to finally resolve all matters, if any, between them as of the date of this Agreement, and have therefore agreed to the terms hereinafter set forth.

 

NOW, THEREFORE, for and in consideration of the aforesaid promises and the mutual promises hereinafter expressed in this Agreement, and other good and valuable consideration, the adequacy and sufficiency of which are hereby acknowledged, the Parties do hereby agree as follows:

 

1.                                      Resignation from Company.  Effective as of the Effective Date, Mr. Palmieri voluntarily resigns from the Company as the Company’s President and Chief Executive Officer.  Additionally, Mr. Palmieri as of the Effective Date, voluntarily resigns as Chairman and a member of the Board and from all other positions or appointments with the Company.  The Company hereby accepts the resignations of Mr. Palmieri from the aforementioned positions with the Company.  Notwithstanding the foregoing, Mr. Palmieri shall remain an employee of the Company through and until the close of business on the Separation Date, at which time, he

 

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shall also resign as an employee of the Company and the Company hereby accepts such resignation.

 

2.                                      Payments.

 

(a)                                 2013 Annual Bonus.  Millennial shall pay Mr. Palmieri his Annual Bonus (as defined in the Employment Agreement) for the fiscal year 2013 (the “2013 Bonus”) in an amount determined by the Compensation Committee of the Board, in accordance with the 2013 Executive Bonus Plan.  The 2013 Bonus shall be paid at the same time such bonuses are paid to the Company’s other senior executives, but in no event later than March 15, 2014.

 

(b)                                 COBRA.  Although Millennial is not otherwise obligated to do so, if Mr. Palmieri timely executes and does not revoke this Agreement, Millennial will provide the benefit described in this Section 2(b), provided that Mr. Palmieri is not in material breach of this Agreement or any other written agreement Mr. Palmieri may have executed with the Company.  The Parties agree that a qualifying event shall occur as of the Separation Date for purposes of the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), and that thereafter Mr. Palmieri will be eligible to elect COBRA continuation coverage in accordance with applicable federal law.  In addition, if Mr. Palmieri is participating in the Company’s group health insurance plan on the Separation Date and timely elects and remains eligible for continued coverage through COBRA, Millennial will pay the entire amount of Mr. Palmieri’s COBRA premiums for a period of one (1) year beginning on March 1, 2014 (the “Initial COBRA Payment Period”); thereafter, for an additional six (6) months, Millennial shall pay that portion of Mr. Palmieri’s COBRA premium that the Company was paying prior to the Separation Date (such six (6) month period, together with the Initial COBRA Payment Period, the “COBRA Payment Period”).  Millennial’s COBRA premium payment obligation will end immediately if Mr. Palmieri obtains health care insurance from any other source during the COBRA Payment Period.  However, if at any time Millennial determines, in its discretion, that the payment of the COBRA premiums would be reasonably likely to result in a violation of the nondiscrimination rules of Section 105(h)(2) of the Internal Revenue Code of 1986, as amended (the “Code”) or any statute or regulation of similar effect (including, without limitation, the 2010 Patient Protection and Affordable Care Act, as amended by the 2010 Health Care and Education Reconciliation Act), then in lieu of providing Millennial’s payment of the COBRA premiums, Millennial will instead pay Mr. Palmieri, on the first day of each month of the remainder of the COBRA Payment Period, a fully taxable cash payment equal to the portion of the COBRA premium otherwise payable by Millennial for that month, subject to applicable tax withholdings and deductions.

 

3.                                      Consulting Agreement.  Commencing upon the Separation Date, Mr. Palmieri shall become a consultant to Millennial, providing consulting and advisory services to the Board and/or Chief Executive Officer (the “Consultancy”).  The Consulting Agreement (attached hereto as Exhibit A) shall govern the Consultancy; provided, that if Mr. Palmieri fails to timely execute this Agreement or executes and revokes this Agreement, the Consulting Agreement will automatically terminate.

 

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4.                                      Equity Awards.

 

(a)                                 It is the intent of the Parties that, for purposes of the Millennial Media, Inc. 2006 Equity Incentive Plan and the Millennial Media, Inc. 2012 Equity Incentive Plan (collectively, the “Equity Incentive Plans”), the provision of services during the Consultancy shall constitute Continuous Service (as such term is defined in the Equity Incentive Plans), and that the restricted stock units (“RSUs”) granted to Mr. Palmieri on September 11, 2012 and November 27, 2013 shall continue to vest during the term of the Consulting Agreement.  Furthermore, the vesting schedule of such RSUs are hereby modified such that twenty-five percent (25%) of the unvested RSUs shall vest on each three (3) month anniversary of the commencement of the Consultancy, such that one hundred percent (100%) of the RSUs are vested immediately at the end of the Term (as defined in the Consulting Agreement).  Shares underlying vested RSUs shall be delivered to Mr. Palmieri on the applicable vesting date, regardless of whether such vesting date occurs during an “open window,” provided that if the vesting date occurs on a day that is not a business day, delivery of such shares shall occur on the next following business day.  Upon the request of Mr. Palmieri, the Company shall permit Mr. Palmieri to satisfy any federal, state, local and foreign tax withholding obligations that arise in connection with such distribution by surrendering shares of the Company’s common stock that would otherwise be delivered to Mr. Palmieri pursuant to his RSUs in accordance with the procedures set forth in the Equity Incentive Plans.

 

(b)                                 The Parties further agree that the stock options granted to Mr. Palmieri on November 27, 2013, none of which are vested as of the Separation Date, shall be considered forfeited and cancelled as of the Separation Date.  For the avoidance of doubt, any other stock options granted to Mr. Palmieri shall vest and remain exercisable in accordance with the Equity Incentive Plans and the applicable award agreements.

 

5.                                      Other Compensation or Benefits.  Mr. Palmieri acknowledges that, except as expressly provided in this Agreement, the letter from the Company to Mr. Palmieri, dated as of January 25, 2014 (the “Termination and Benefits Letter”), the Indemnity Agreement (as defined below) and the Consulting Agreement, he will not receive any additional compensation, severance or benefits after the Separation Date, including but not limited to, any severance pay or benefits set forth in the Employment Agreement.  Notwithstanding the foregoing, Millennial shall pay to Mr. Palmieri all compensation and benefits that have accrued and are payable through the Separation Date under the Employment Agreement and any other arrangement between Millennial and Mr. Palmieri, including, without limitation, Base Salary (as such term is defined in the Employment Agreement).

 

6.                                      General Release by Mr. Palmieri.  Mr. Palmieri agrees for himself and his heirs, executors, agents, successors, predecessors, personal representatives, administrators, and assigns to release and forever discharge Millennial, including any of its parents, subsidiaries, affiliated and/or related entities or insurers, as well as their directors, administrators, officers, employees, insurers, agents, representatives and assigns, from any and all administrative claims, demands, actions, causes of action, statutory rights, duties, debts, sums of money, lawsuits, contracts, agreements, controversies, promises, damages (whether actual, punitive or exemplary or of some other nature or kind), including without limitation, wages, benefits, back pay, front pay, and emotional distress, obligations, responsibilities, liabilities (including attorneys’ fees and costs actually incurred), accounts, injunctions, judgments, jury verdicts and any other relief of any kind whatsoever, whether known or unknown, suspected or unsuspected, existing as of or prior

 

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to the Effective Date.  Causes of action released include, but are not limited to, breach of express or implied contract, covenant of good faith and fair dealing, all claims for discrimination, harassment or retaliation, all claims for violation of public policy, all claims for alleged unpaid bonuses, wages or other amounts, and all claims arising under the following statutes: Title VII of the Civil Rights Act of 1964, as amended, the Americans with Disabilities Act, the Age Discrimination in Employment Act, as amended by the Older Workers’ Benefits Protection Act (“ADEA”), the Civil Rights Act of 1866, the Family and Medical Leave Act, the Fair Labor Standards Act, Employee Retirement Income Security Act, the Occupational Safety and Health Act, the Genetic Information Nondiscrimination Act, the National Labor Relations Act, the Rehabilitation Act of 1973, Title 20 of the State Government Article of the Maryland Code, the Maryland Flexible Leave Act, the Maryland Declaration of Rights, the Maryland Equal Pay Act and all other federal, state and/or local laws and/or common law claims relating to employment, benefits or otherwise applicable to the relationship between Mr. Palmieri and Millennial prior to the Effective Date.  Mr. Palmieri further agrees that if he attempts to avoid or set aside the terms of this general release, or if Millennial successfully asserts this general release as a defense or bar to any claim asserted by Mr. Palmieri, he shall be liable for the reasonable attorneys’ fees and costs of Millennial in defending such claims or asserting such defense based on this general release.  Notwithstanding the foregoing, Mr. Palmieri does not release any rights that he may have with respect to any of the following: (a) any claim which, as a matter of law, cannot be released by private agreement; (b) any claim arising from an alleged breach of any provision of this Agreement by either party; (c) any claim arising under the Consulting Agreement; and (d) any contribution, indemnity or other claim Mr. Palmieri may have under (i) the Company’s constituent documents, including the Company’s articles of incorporation and bylaws, (ii) any applicable policy of insurance, (iii) any agreement relating to indemnification, including the Indemnity Agreement between the Parties (the “Indemnity Agreement”), or (iv) applicable law, by reason of the fact that Mr. Palmieri is or was a director, officer, executive or agent of the Company or serves or served any other enterprise at the request of the Company.  Mr. Palmieri is waiving, however, his right to any monetary recovery should any governmental agency or entity, such as the U.S. Equal Employment Opportunity Commission (“EEOC”) or the U.S. Department of Labor, pursue any claims on his behalf.

 

7.                                      Age Discrimination Release Notification.  This Agreement includes a release of all charges and claims under the ADEA and, therefore, pursuant to the requirements of 29 U.S.C. §626(f), Mr. Palmieri acknowledges that he has been advised:

 

(a)                                 that this release includes all claims under the ADEA arising up to and including the Effective Date but does not include claims that have not yet occurred;

 

(b)                                 to consult with an attorney and/or other advisor of his choosing concerning his rights and obligations under this release;

 

(c)                                  to fully consider this release before executing it; and

 

(d)                                 that Mr. Palmieri has seven (7) days following his execution of this Agreement to revoke the Agreement by delivering written notice to Ho Shin, General Counsel, and this Agreement shall not be effective until the date upon which the revocation period has

 

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expired, provided that Mr. Palmieri has not revoked the Agreement during such period, which date shall be the eighth day after this Agreement is executed by Mr. Palmieri.

 

Mr. Palmieri hereby acknowledges and agrees that he has been given twenty-one (21) days to consider, execute and deliver this Agreement to the Company.  The Parties recognize that Mr. Palmieri may elect to execute this Agreement prior to the expiration of such period and Mr. Palmieri agrees that if he elects to do so such election is knowing and voluntary and comes after full opportunity to consult with an attorney.

 

8.                                      Cooperation.  Mr. Palmieri agrees to cooperate reasonably with Millennial, at Millennial’s sole cost and expense, to provide such information as may be from time to time requested in connection with pending and future litigation or any investigation or review by any federal, state or local regulatory authority (including claims asserted with administrative agencies) involving Millennial.  Except as requested by Millennial or as compelled by law or judicial process, Mr. Palmieri will not assist, cooperate with, or supply information of any kind to any individual or private-party litigant or their agents or attorneys in any proceeding, investigation, or inquiry raising issues under any federal, state, or local law, or in any other litigation against Millennial; nor will Mr. Palmieri participate in any class action against Millennial or accept any money recovered on his behalf by others.  If Mr. Palmieri receives a subpoena seeking testimony, documents or information that Mr. Palmieri may have related to Millennial, he shall provide Millennial through its General Counsel Ho Shin (or his designated successor) with a copy of the subpoena prior to the date specified for compliance and no later than four (4) business days following his receipt of it.  This Agreement is not intended to, and shall not be construed to, in any way limit or affect the testimony which Mr. Palmieri gives in any litigation, hearing or other matter; instead, it is understood and agreed that Mr. Palmieri will at all times testify fully, truthfully and accurately, whether in deposition, trial or otherwise.  This Agreement also does not limit Mr. Palmieri’s ability to testify, assist, or participate in an investigation, hearing, or proceeding conducted by the EEOC.  Mr. Palmieri’s cooperation under this Section 8 shall be deemed to be Services, as such term is defined in the Consulting Agreement.

 

9.                                      Noncompetition, Nonsolicitation and No Hire.

 

(a)                                 Mr. Palmieri agrees that for a period of twelve (12) months following his Separation Date he will not, as an officer, director, employee, consultant, owner, partner, or in any other capacity, either directly or through others, solicit, perform or provide, or attempt to perform or provide the Primary Conflicting Services (as defined below) anywhere in the United States, nor will he assist another person to solicit, perform or provide, or attempt to perform or provide the Primary Conflicting Services anywhere in the United States.  “Primary Conflicting Services” shall mean any product, service, or process of any person or organization other than the Company that directly competes with a product, service, or process of the Company and with which Mr. Palmieri worked directly or indirectly during his employment by the Company.

 

(b)                                 Mr. Palmieri agrees that for a period of twelve (12) months following the end of the twelve (12) month period referenced in Section 9(a) above he will not, as an officer, director, employee, consultant, owner, partner, or in any other capacity, either directly or through others, solicit, perform or provide, or attempt to perform or provide Secondary Conflicting Services

 

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(as defined below) anywhere in the United States, nor will he assist another person to solicit, perform or provide, or attempt to perform or provide Secondary Conflicting Services anywhere in the United States.  “Secondary Conflicting Services” shall mean any product, service or process for the operation of a third party mobile advertising platform; provided, that Secondary Conflicting Services shall not include attempting to perform or provide services in any capacity for any person who operates a third party mobile advertising platform if the services to be performed or provided are for a department, division, unit or subsidiary of such person that does not operate such platform.  As an example of the application of the foregoing restriction on Mr. Palmieri, but not a limitation thereof, Mr. Palmieri may provide services for Google; provided, that he does not provide services for the AdMob division of Google.

 

(c)                                  Mr. Palmieri agrees that for a period of twelve (12) months following the Separation Date he will not, as an officer, director, employee, consultant, owner, partner, or in any other capacity, directly:

 

(i)                                     hire, solicit, induce, encourage, or participate in hiring, soliciting, inducing, or encouraging any Employee (as defined below) of the Company to terminate his or her relationship with the Company; or

 

(ii)                                  solicit, induce or attempt to induce any Customer or Potential Customer (as defined below), or any consultant or independent contractor of the Company with whom he had direct or indirect contact or whose identity he learned of as a result of his employment with the Company, to terminate or materially alter in a manner harmful to the Company its relationship with the Company.

 

“Employee” shall mean anyone who was or is an employee of the Company during the period commencing on the Separation Date up to and through the expiration of the Consulting Agreement.  A “Customer” or “Potential Customer” is any person or entity who or which, at any time during the one (1) year period prior to the Separation Date (1) contracted for, was billed for, or received from the Company any product, service or process with which Mr. Palmieri worked directly or indirectly during his employment by the Company; or (2) was in contact with Mr. Palmieri or in contact with any other employee, owner, or agent of the Company, of which contact Mr. Palmieri was or should have been aware, concerning any product, service or process with which Mr. Palmieri worked directly or indirectly during his employment with the Company; or (3) was solicited by the Company in an effort in which Mr. Palmieri was involved.

 

10.                               Reasonableness of Restrictions.

 

(a)                                 Mr. Palmieri agrees that he has read this entire Agreement, including Section 9, and understands it.  He further agrees that the restrictions set forth in Section 9 do not prevent him from earning a living or pursuing his career.  He agrees that the restrictions set forth in Section 9 are reasonable, proper, and necessitated by the Company’s legitimate business interests.  He represents and agrees that he is entering into this Agreement freely and with knowledge of its contents with the intent to be bound by the Agreement and the restrictions contained in it.

 

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(b)                                 In the event that a court finds this Agreement, or any of its restrictions, to be ambiguous, unenforceable, or invalid, Mr. Palmieri and Millennial agree that the court shall read the Agreement as a whole and interpret the restriction(s) at issue to be enforceable and valid to the maximum extent allowed by law.

 

(c)                                  If the court declines to enforce this Agreement in the manner provided in Section 10(b), Mr. Palmieri and the Company agree that this Agreement will be automatically modified to provide the Company with the maximum protection of its business interests allowed by law and Mr. Palmieri agrees to be bound by this Agreement as modified.

 

(d)                                 Mr. Palmieri agrees that any breach of this Agreement by him may cause irreparable damage to the Company and that in the event of such breach the Company shall have, in addition to any and all remedies of law, the right to an injunction, specific performance or other equitable relief to prevent the violation of his obligations hereunder.

 

11.                               Return of Property and Preservation of Documents.  Mr. Palmieri agrees that he will return all Millennial computer and other equipment by February 28, 2014.  Mr. Palmieri further agrees that, if he has any email or other documents related to Millennial’s business on any computer or other personal equipment or in hard copy, he will notify Millennial of this as soon as practicable and will make arrangements to have Millennial preserve these documents.

 

12.                               Nondisparagement.  The Parties mutually agree not to engage in any communications, written or oral, or cause or encourage others to make any such communications, that defame or disparage the personal and/or business reputations, practices or conduct of one another (collectively, “Disparaging Behavior”).  The Parties further agree that any breach of this provision is a material breach of this Agreement for which the nonbreaching party may immediately seek legal, equitable, injunctive, monetary or any other appropriate relief in a court of competent jurisdiction without the posting of a bond or any guarantee.  Such relief shall include, but is not limited to, the recovery of reasonable attorneys’ fees and costs incurred in successfully pursuing any claim for a breach of this provision and any other economic, compensatory and/or consequential damages caused by such breach.  Notwithstanding the terms of this provision, the Parties shall respond truthfully in response to a subpoena or court order.  The Company’s obligations under this Section 12 are limited to Company representatives with knowledge of this provision; provided, that if a Company representative without knowledge of this provision engages in any Disparaging Behavior relating to Mr. Palmieri, the Company shall immediately advise and cause such representative to cease such Disparaging Behavior.

 

13.                               Nondisclosure and Developments Agreement.  Mr. Palmieri acknowledges and agrees that he will continue to be bound by his Employee Nondisclosure and Developments Agreement (“Employee NDA”), attached hereto as Exhibit B.  However, to the extent this Agreement expressly alters any terms of the Employee NDA, the Parties agree that the terms of this Agreement will control.

 

14.                               Access to Certain Data.  The Company acknowledges that Mr. Palmieri has expressed interest in writing a book or another publication regarding, among other things, his experience as the founder of the Company (a “Publication”).  Without limiting any obligations of Mr. Palmieri hereunder, including with respect to his obligations under the Employee NDA, the

 

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Company shall, promptly upon the request of Mr. Palmieri, but in no event more than ninety (90) days following the Separation Date, use commercially reasonable efforts to negotiate and enter into a license agreement, pursuant to which Mr. Palmieri will receive access to, and a license to use and publish, certain data of the Company in any Publication.

 

15.                               No Admission.  The Parties understand and agree that all alleged liability between them is expressly denied, and that the present Agreement constitutes the compromise of disputed claims.

 

16.                               Binding Successors, Heirs, and Assigns.  This Agreement shall bind and inure to the benefit of the Parties’ successors, heirs, and assigns.

 

17.                               Medicare Representations and Indemnification.  Employee affirms and warrants that Employee is not a Medicare beneficiary and is not currently receiving, has not received in the past, is not eligible for, and has not applied for or sought benefits from Medicare.  Employee agrees to indemnify and hold Millennial harmless for any penalties or liability, including interest, that may be asserted against Millennial pursuant to Section 111 of the Medicare, Medicaid, and SCHIP Extension Act of 2007, 42 U.S.C. § 1395y(b)(8) as a result of the payments and other benefits described in Section 2(b) of this Agreement.

 

18.                               Application of Section 409A.  It is intended that all of the benefits provided under this Agreement satisfy, to the greatest extent possible, the exemptions from the application of Section 409A of the Code and the regulations and other guidance thereunder and any state law of similar effect (collectively, “409A”) provided under Treasury Regulations Sections 1.409A-1(b)(4), 1.409A-1(b)(5), and 1.409A-1(b)(9), and this Agreement will be construed to the greatest extent possible as consistent with those provisions.  To the extent not so exempt, this Agreement (and any definitions in this Agreement) will be construed in a manner that complies with Section 409A, and incorporates by reference all required definitions and payment terms.  For purposes of Section 409A, Mr. Palmieri’s right to receive any installment payments under this Agreement will be treated as a right to receive a series of separate payments and, accordingly, each installment payment under this Agreement will at all times be considered a separate and distinct payment.

 

19.                               Miscellaneous.  If any portion of this Agreement is declared void or unenforceable for any reason, the unenforceable portion shall be deemed severed from the remaining portions of this Agreement, which shall otherwise remain in full force and effect.  This Agreement, including Exhibits A and B, and the Termination and Benefits Letter constitute the complete, final and exclusive embodiment of the entire agreement between the Parties with regard to this subject matter.  It is entered into without reliance on any promise or representation, written or oral, other than those expressly contained herein, and it supersedes any other such promises, warranties or representations.  This Agreement may not be modified or amended except in a writing signed by both Mr. Palmieri and a duly authorized officer of the Company.  Nothing in this Agreement shall affect the Consulting Agreement or the Indemnity Agreement, which agreements shall continue in full force and effect pursuant to their terms.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of Maryland, without recourse to the choice of law provisions thereof.  The Parties further agree that any

 

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action to enforce this Agreement shall be brought in a state or federal court of competent jurisdiction within Maryland.

 

20.                               Facsimile/Electronic Signatures, Counterparts and Headings.  Facsimile and electronic signatures shall have the same power and effect as original signatures.  This Agreement may be executed independently and separately (i.e. in counterparts) by the respective Parties. If executed in counterparts, each counterpart shall be deemed to be an original, and said counterparts together shall constitute one and the same Agreement.  The headings within this Agreement have been included for the convenience of reference only and shall not affect the meaning or interpretation of the terms herein or the Agreement as a whole.

 

[SIGNATURE PAGE FOLLOWS]

 

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WHEREFORE, the Parties hereto, intending to be legally bound and by their respective signatures below, acknowledge that there exist no other promises, representations or agreements relating to this Agreement except as specifically set forth herein, and that they knowingly and voluntarily enter into this Agreement with a full understanding of its contents.

 

 

	
/s/ Paul J. Palmieri
    	
 
    	
DATE:
    	
January 25,   2014
    
	
Paul   Palmieri
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
MILLENNIAL   MEDIA, INC.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Ho Shin
    	
 
    	
DATE:
    	
January 25,   2014
    
	
 
    	
Ho   Shin, General Counsel

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