Patrick Dillon
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(b) IPO Bonus. You will be eligible for a one-time cash bonus equal to $150,000 (the “IPO Bonus”), which will be payable to you if the Company successfully completes an initial public offering of the Company’s equity securities on or before the end of the 2021 calendar year (the date of such completion, the “IPO Date”) and you remain employed with the Company through the IPO Date. If the IPO Bonus becomes payable, such payment will occur within 60 days after the IPO Date.
4. Equity Awards. If you were previously granted one or more equity-based awards under TuSimple’s stock plan (such awards, your “Equity Awards”), they will remain outstanding and will continue to be governed by the terms and conditions of the stock plan and award agreements applicable to them.
5. Employee Benefits. As a regular employee of the Company, you will be eligible to participate in a number of Company-sponsored benefits. In addition, you will be entitled to paid vacation in accordance with the Company’s vacation policy, as in effect from time to time.
6. Severance Benefits. If you are entitled to the severance benefits in the event of certain qualifying terminations, such benefits will be described in a Severance and Change in Control Agreement by and between you and TuSimple.
7. Proprietary Information and Inventions Agreement. You will continue to be bound by the Proprietary Information and Inventions Agreement, dated March 19, 2021, between you and TuSimple or such other member of the TuSimple Group, attached as Exhibit A hereto.
8. Employment Relationship. Employment with the Company is for no specific period of time. Your employment with the Company will continue to be “at will,” meaning that either you or your employer may terminate your employment at any time and for any reason, with or without cause. Any contrary representations that may have been made to you are superseded by this Agreement. This is the full and complete agreement between you and your employer on this term. Although your job duties, title, compensation and benefits, as well as the personnel policies and procedures of the TuSimple Group, including the member of the TuSimple Group actually employing you, may change from time to time, the “at will” nature of your employment may only be changed in an express written agreement signed by you and a duly authorized officer of the TuSimple Group (other than you).
9. Tax Matters.
(a) Withholding; Section 409A. All forms of compensation referred to in this Agreement are subject to reduction to reflect applicable withholding and payroll taxes and other deductions required by law. Except for such withholding, you will be responsible for your own tax liability imposed with respect to such compensation. It is intended that all payments and benefits under this Agreement, to the greatest extent possible, be exempt from Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”); to the extent not so exempt, this Agreement will be construed in a manner that complies with Section 409A.
(b) Tax Advice. You are encouraged to obtain your own tax advice regarding your compensation. You agree that the no member of the TuSimple Group has a duty to design its compensation policies in a manner that minimizes your tax liabilities, and you will not make any claim against any member of the TuSimple Group or the Board related to tax liabilities arising from your compensation.
