Document:

exv10w9

 

Exhibit 10.9

September 8, 2005

Joseph Vitalone

Dear Joe,

     On behalf of ShoreTel, Inc., I am pleased to extend this offer, in which you will serve as the
Company’s Vice President of Sales. This letter embodies the terms of our offer of employment to
you.

     Your compensation will include an annual base salary of $200,000, paid twice monthly. You
will be eligible for an annual incentive bonus, which will be based upon achievement of key
objectives established mutually between you and me. For the fiscal 2006 period, the bonus will be
based on revenue achievement: $50,000 for reaching $70M, $100,000 for reaching $75M and $200,000
for reaching $80M. You will be a participant in the executive management bonus program and receive
the higher of the following: revenue bonus detailed above or the incentive under the executive
bonus program. Your bonus calculation will be credited at the greater of the following: 90% or
actual results during your first quarter with the organization. In addition, you will be eligible
for all employee benefits including Medical, Dental, Vision and Life insurance, AD&D, LTD, 401(k),
Flexible Spending Accounts, Paid Time Off and Company Holidays. You should also note that ShoreTel
might modify benefits from time to time, as it deems necessary. All benefits commence on the first
day of employment with the submission of the appropriate enrollment forms and documentation.

     To help offset the loss in bonus from your former employer, you will receive an additional $5K
incentive payment on your first day of employment and another $5K payment at your six month
anniversary.

     In addition, upon the commencement of your employment and subject to approval by the Board of
Directors, pursuant to the company’s 1997 Stock Option Plan, we will grant you a stock option to
purchase 2,6550,000 shares of the outstanding capital stock at the date of grant subject to the
company’s standard vesting (25% vested after one year, one forty-eighth per month thereafter, 100%
vested in four years). In the event of a change of control via merger or acquisition, coupled with
an involuntary without cause (cause is defined as job-related grounds for dismissal based on a
failure to perform job duties satisfactorily, disruption of the employer’s operation , or other
legitimate business reason) or constructive termination (constructive termination is defined as
experiencing a reduction in base annual salary and management bonus potential) within 12 months of
such change of control, 50% of the then unvested options or shares will immediately vest.

     Given the requirement of the position to travel extensively throughout North America, you will
not be required to relocate from Texas.

     As a ShoreTel employee, you will be expected to abide by company rules and regulations. You
will be specifically required to sign and comply with a Proprietary Information and Non-disclosure
Agreement which requires, among other provisions, the assignment of patent

 

 

rights to any invention made during your employment at ShoreTel and non-disclosure of
proprietary information.

     This offer is subject to your submission of an I-9 form and satisfactory documentation
respecting your identification and right to work in the United States no later than three (3) days
after your employment begins.

     ShoreTel is an “At Will” employer and therefore, as an employee, you may terminate employment
at any time and for any reason whatsoever without notice to ShoreTel, Inc. Similarly, ShoreTel may
terminate your employment at any time and for any reason whatsoever, with or without cause or
advance notice. Furthermore, this mutual termination of employment arrangement supersedes all
other prior written and oral communication with you and can only be modified by written agreement
signed by you and ShoreTel, Inc.

     In the event of any dispute or claim relating to or arising out of our employment
relationship, you and ShoreTel agree that all such disputes, including but not limited to, claims
of harassment, discrimination, and wrongful termination, shall be settled by arbitration held in
Santa Clara County, California, under the Arbitration Rules set forth in the California Code of
Civil Procedure Section 1280, et seq., including Section 1283.05, (the “Rules”),
and pursuant to California law. A copy of the Rules is available for your review prior to signing
this Agreement.

     Joe, I believe ShoreTel has a promising future, which requires talented, dedicated and
motivated people like you to make it successful. I am delighted that you will be joining the
ShoreTel team and look forward to working with you again.

Looking forward to working with you!

/s/ John W. Combs

John W. Combs

President and CEO

Position Accepted

	 	 	 	 	 	 	 
	/s/ Joe Vitalone
 

	 	 
	 	9/14/05
 

	 	 
	Signature

	 	 	 	Date	 	 

	 	 	 	 	 
	Anticipated Employment Start Date: October 3, 2005

	 	/s/ JV
 

	 	 
	 

	 	Initial	 	 

Please sign and return one copy of this offer letter in the envelope provided. Thank you.

2exv10w10

 

Exhibit 10.10

April 13, 2005

Walter Weisner

Dear Walter,

     On behalf of ShoreTel, Inc., I am pleased to extend this offer, in which you will serve as the
Company’s Vice President of Global Support Services. This letter embodies the terms of our offer
of employment to you.

     Your compensation will include an annual base salary of $225,000, paid twice monthly. You
will be eligible for an annual incentive bonus, which will be based upon achievement of key
objectives established mutually between you and me. The bonus plan will be approved by the Board
of Directors once the company has achieved two quarters of cash positive flow. I would estimate
that the bonus amount would be in the range of 25% to 35% of your annual salary. In addition, you
will be eligible for all employee benefits including Medical, Dental, Vision and Life insurance,
AD&D, LTD, 401(k), Flexible Spending Accounts, Paid Time Off and Company Holidays. The details of
these employee benefits will be explained during your first week of employment. You should also
note that ShoreTel might modify benefits from time to time, as it deems necessary. All benefits
commence on the first day of employment with the submission of the appropriate enrollment forms and
documentation.

     In addition, upon the commencement of your employment and subject to approval by the Board of
Directors, pursuant to the company’s 1997 Stock Option Plan, we will grant you a stock option to
purchase 1,500,000 shares of the outstanding capital stock at the date of grant subject to the
company’s standard vesting (25% vested after one year, one forty-eighth per month thereafter, 100%
vested in four years). In the event of a change of control via merger or acquisition, coupled with
an involuntary without cause (cause is defined as job-related grounds for dismissal based on a
failure to perform job duties satisfactorily, disruption of the employer’s operation , or other
legitimate business reason) or constructive termination (constructive termination is defined as
experiencing a reduction in base annual salary and management bonus potential) within 24 months of
such change of control, 50% of the then unvested options or shares will immediately vest.

     The company will reimburse reasonable expenses for traveling from your home in Southern
California to Sunnyvale including; lodging, air fare, car and meal expenses. You will use your
best efforts to minimize these costs.

     As a ShoreTel employee, you will be expected to abide by company rules and regulations. You
will be specifically required to sign and comply with a Proprietary Information and Non-disclosure
Agreement which requires, among other provisions, the assignment of patent rights to any invention
made during your employment at ShoreTel and non-disclosure of proprietary information.

 

 

     This offer is subject to your submission of an I-9 form and satisfactory documentation
respecting your identification and right to work in the United States no later than three (3) days
after your employment begins.

     ShoreTel is an “At Will” employer and therefore, as an employee, you may terminate
employment at any time and for any reason whatsoever without notice to ShoreTel, Inc. Similarly,
ShoreTel may terminate your employment at any time and for any reason whatsoever, with or without
cause or advance notice. Furthermore, this mutual termination of employment arrangement supersedes
all other prior written and oral communication with you and can only be modified by written
agreement signed by you and ShoreTel, Inc.

     In the event of any dispute or claim relating to or arising out of our employment
relationship, you and ShoreTel agree that all such disputes, including but not limited to, claims
of harassment, discrimination, and wrongful termination, shall be settled by arbitration held in
Santa Clara County, California, under the Arbitration Rules set forth in the California Code of
Civil Procedure Section 1280, et seq., including Section 1283.05, (the “Rules”),
and pursuant to California law. A copy of the Rules is available for your review prior to signing
this Agreement.

     Walter, I believe ShoreTel has a promising future, which requires talented, dedicated and
motivated people like you to make it successful. I am delighted that you will be joining the
ShoreTel team and look forward to working with you again.

Sincerely,

John W. Combs

President and CEO

Position Accepted

	 	 	 	 	 	 	 
	/s/ Walter Weisner
 

	 	 
	 	4-27-05
 

	 	 
	Signature

	 	 	 	Date	 	 

	 	 	 	 	 
	Anticipated Employment Start Date: July 11,2005

	 	 

Initial
	 	 

Please sign and return one copy of this offer letter in the envelope provided. Thank you.

2exv10w11

 

Exhibit 10.11

SHORETEL, INC.

CHANGE OF CONTROL AGREEMENT

     This Change of Control Agreement (the “Agreement”) is made and entered into effective as of
August 5th, 2004 (the “Effective Date”), by and between John W. Combs (the “Employee”) and
ShoreTel, Inc., a California corporation (the “Company”).

     WHEREAS, the Company and Employee entered into a Stock Option Agreement dated January 20, 2005
(the “Option Agreement”) whereby Employee may purchase up to 19,718,652 shares of Common Stock (the
“Options”) for an aggregate purchase price of $591,559.56.

     WHEREAS, the Options are subject to a vesting schedule wherein 12.5% of the Options vest on
the six (6) month anniversary of the Commencement Date (the “Initial Vesting Date”) and 2.0833% of
the total number of shares subject to the Option will vest each month thereafter, subject to your
continued employment or service to the Company..

     WHEREAS, the Company may from time to time need to address the possibility of an acquisition
transaction or change of control event. The Board of Directors of the Company (the “Board”)
recognizes that such events can be a distraction to the Employee and can cause the Employee to
consider alternative employment opportunities. The Board has determined that it is in the best
interests of the Company and its shareholders to ensure that the Company will have the continued
dedication and objectivity of the Employee, notwithstanding the possibility, threat or occurrence
of a Change of Control (as defined below) of the Company, although no such Change of Control is now
contemplated.

     WHEREAS, the Board believes it is in the best interests of the Company and its shareholders to
provide the Employee with an incentive to continue his employment and to motivate the Employee to
maximize the value of the Company upon a Change of Control for the benefit of its shareholders.

     WHEREAS, the Board believes it is imperative to provide the Employee with certain benefits
upon a Change of Control, which benefits are intended to provide the Employee with sufficient
incentive and encouragement to remain with the Company notwithstanding the possibility of a Change
of Control.

     WHEREAS, to accomplish the foregoing objectives, the Board has directed the Company, upon
execution of this Agreement by Employee, to agree to the terms provided herein.

     NOW, THEREFORE, in consideration of the foregoing premises, the Company and the Employee agree
as follows:

     1. Change of Control.

          (a) In the event of a Change in Control during the first six (6) months of your

 

 

employment with the Company, (i) the vesting applicable to your Option will accelerate as to
twenty-five (25%) of the total shares subject to your Option or (ii) you will receive a
Seven-Hundred and Fifty-Thousand Dollar($750,000) cash payment, less applicable withholdings,
whichever of the amounts in (i) or (ii) is of great value. In determining which of the values in
(i) and (ii) is greater, the value in (i) will be deemed to equal the difference between the
consideration payable with respect to the shares of Company Common Stock held by Company optionees
in the Change in Control and the exercise price of your Option will be multiplied by the number of
shares subject to your Option that would accelerate as a result of the Change in Control.

          (b) In the event of your Involuntary Termination or Termination without Cause
within six (6) months following a Change in Control, provide such Change in Control does not occur
during the first six (6) months of your employment with the Company, you will be entitled to
accelerated vesting of one hundred percent (100%) of the then unvested shares subject to your
Option. In all events, even if your Involuntary Termination or Termination without Cause does not
occur within such six (6) month period following a Change in Control, you will nonetheless be
entitled to accelerated vesting of one hundred percent (100%) of the then unvested shares subject
to your Option effective at the end of such six (6) month period following a change in Control if
you have remained employed with the Company or its successor during that six (6) month period.

     2. Definitions. As used in the Agreement, the following terms have the following meanings:

          (a) “Change of Control.” Means on Ownership Change Event (as defined
below) or a series of related Ownership Change Events (collectively the “Transaction”) wherein the
shareholders of the Company immediately before the Transaction do not retain immediately after the
Transaction, in substantially the same proportions as their ownership of shares of the Company’s
voting stock immediately before the Transaction, direct or indirect beneficial ownership of more
than fifty percent (50%) of the total combined voting power of the outstanding voting stock of the
Company or the corporation or corporations to which the assets of the Company were transferred (the
Transferee Corporation(s)”), as the case may be. For purposes of the preceding sentence, indirect
beneficial ownership shall include, without limitation, an interest resulting from ownership of
the voting stock of one or more corporations which, as a result of the Transaction, own the Company
or the Transferee Corporations, as the case  may be either directly or through one of more subsidiary
corporations. The Board shall have the right to determine whether multiple sales or exchanges of
the voting stock of the Company or multiple Ownership Change Events are related, and its
determination shall be final, binding and conclusive. For purposes of this subsection (c), an
“Ownership Change Event” means, with respect to the Company, any of the following: (i) the direct
or indirect sale or exchange in a single or series of related transactions by the shareholders of
the Company of more than fifty percent (50%) of the voting stock of the Company; (ii) a merger or
consolidation in which the Company is a party; (iii) the sale, exchange or transfer of all or
substantially all of the assets of the Company; or (iv) a liquidation or dissolution of the
Company.

          (b) “Good Reason” means without your written consent (i) a change in
your title
of CEO or a material reduction in your duties or responsibilities
that is inconsistent with your
position, provided that a change in your title CEO following a Change in Control shall not
constitute Good Reason so long as you retain substantially the same duties and responsibilities and

 

 

are the general manager or chief executive of a division or subsidiary that constitutes
substantially the business of the Company following the Change in Control, or (ii) a material
reduction in your annual base salary or target bonus (other than in connection with a general
decrease in the salary or target bonus of all executives of the Company).

          (c) “Cause” means your (i) gross negligence or willful misconduct
after a
demand for substantial performance is delivered to you which specifically identifies the manner in
which the Company believes you have engaged in gross negligence or willful misconduct and you have
been provided with a reasonable opportunity to cure any alleged gross negligence or willful
misconduct in the performance of your duties; (ii) commission of any act of fraud, gross
misconduct or dishonesty with respect to the Company; (iii) conviction of, or plea of guilty or “no
contest” to, a felony or a crime involving moral turpitude; (iv) material break of any proprietary
information and inventions agreement with the Company or any other unauthorized use or disclosure
of the Company’s confidential information or trade secrets; or (v) failure to follow the lawful
directions of the Board after receiving written notification of such failure from the Board and a
reasonable opportunity to cure such failure. For clarity, the Company’s failure to meet any
targeted or projected operational metrics specified by the Board (e.g., revenue levels,
profitability and the like) shall not in and of itself constitute a “failure to follow lawful
directions of the Board” under the immediately preceding clause (v).

     3. Attorneys’ Fees, Costs and Expenses. The prevailing party, determined without
regard to whether or not the action results in a final judgment, shall be entitled to collect from
the other party its reasonable attorneys’ fees, costs and expenses incurred in connection with any
action brought by either party in connection with the subject matter of this Agreement.

     4. Successors.

          (a) Company’s Successors. Any Successor to the Company (whether direct or indirect
and whether by purchase, merger, consolidation, liquidation or otherwise) to all or substantially
all of the Company’s business and/or assets shall assume the obligations under this Agreement and
agree expressly to perform the obligations under this Agreement in the same manner and to the same
extent as the Company would be required to perform such obligations in the absence of a succession.
For all purposes under this Agreement, the term “Company” shall include any successor to the
Company’s business and/or assets which executes and delivers the assumption agreement described in
this Section 4(a) or which becomes bound by the terms of this Agreement by operation of law.

          (b) Employee’s Successors. The terms of this Agreement and all rights of the Employee
hereunder shall inure to the benefit of, and be enforceable by, the Employee’s personal or legal
representatives, executors, administrators, successors, heirs, distributes, devisees and legatees.

     5. Notice. Notices and all other communications contemplated by this Agreement shall
be in writing and shall be deemed to have been duly given when personally delivered or when mailed
by U.S. registered or certified mail, return receipt requested and postage prepaid. In the case

 
 

 

of the Employee, mailed notices shall be addressed to him at the home address which he most
recently communicated to the Company in writing. In the case of the Company, mailed notices shall
be addressed to its corporate headquarters, and all notices shall be directed to the attention of
its Secretary.

     6. Miscellaneous Provisions.

          (a) Waiver. No provision of this Agreement shall be modified, waived or discharged
unless the modification, waiver or discharge is agreed to in writing and signed by Employee and by
an authorized officer of the Company (other than Employee). No waiver by either party of any
breach of, or of compliance with, any condition or provision of this Agreement by the other party
shall be considered a waiver of any other condition or provision of the same condition or provision
at another time.

          (b) Whole Agreement. No agreements, representations or understandings (whether oral
or written and whether express or implied) which are not expressly set forth in this Agreement have
been made or entered into by either party with respect to the subject matter hereof.

          (c) Choice of Law. The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the State of California as applied to agreements entered
into and performed within California solely by residents of that state.

          (d) Severability. The invalidity or unenforceability of any provision or provisions
of this Agreement shall not affect the validity or enforceability of any other provision hereof,
which shall remain in full force and effect.

          (e) Counterparts. This Agreement may be executed in counterparts, each of which shall
be an original, but all of which together will constitute one and the same instrument.

     IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the
Company by its duly authorized officer, as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	SHORETEL, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ John Finegan	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	John Finegan

Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	EMPLOYEE	 	 
	 
	 	 	 	 	 	 
	
	 	/s/ John W. Combs	 	 
	 	 	 	 	 
	 	 	John W. Combs

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