Document:

Letter Agreement

 Exhibit 10.26 
  
 April 17, 2001 
  
 Mr. Paul J. Cormier 
 768 Elm Street 
 Leominster, MA 01453 
  
 Dear Paul: 
  
 We are pleased to offer you the
position of Executive Vice President – Engineering at Red Hat, Inc. (“Red Hat” or the “Company”). Your position reports directly to our Chief Executive Officer. Your start date is scheduled for May 7, 2001. Your employment
will be terminable at will, which means that either you or the Company may terminate your employment at any time and for any or no reason. 
  
 Compensation and Benefits 
  
 Your initial salary will be $275,000 on an annualized basis, to be paid in accordance with the customary pay procedures established by the Company as modified from time
to time. Currently, salaries are paid twice per month. You are also eligible to receive incentive compensation of up to $125,000 on an annualized basis, to be paid in accordance with the customary pay procedures of the Company for bonuses.
Currently, bonuses are paid once per fiscal quarter on the last pay date of the month immediately following the close of the fiscal quarter. In addition, you will also be eligible to participate in Red Hat’s other regular benefit plans. Red Hat
currently offers the following benefits: 
  

	q	Comprehensive major medical insurance plan 

	q	Flexible benefits plan for payment of medical and/or dependent care expenses 

	q	Life insurance 

	q	401(k) 

	q	Short and Long Term Disability 

	q	Employee Stock Purchase Plan 

	q	Educational Reimbursement 

  
 You will be eligible to participate in these and other benefit programs subject to the terms and conditions established by the Company from time to time. For a more detailed understanding of the benefits and the
eligibility requirements, please consult the summary plan descriptions for the programs which will be made available to you. The Company has the right to change, modify or terminate any existing benefits. 
  
 In addition, subject to the approval of the Company’s Board of Directors and pursuant to
the terms and conditions of the Company’s 1999 Stock Option Plan, as amended (the “Plan”) and any applicable Stock Option Agreement, it will be recommended that the Company grant you stock options to purchase up to 425,000 shares of
the Company. The exercise price shall be the fair market value of shares at the time of the grant by the Board of Directors. Your option grant, as recommended to the Board of Directors, will contain the following special provision: 

 Upon a change in control of the Company which results in a diminished level of responsibility for you,
your options will vest (a) 50% of total options (both vested and unvested) if change of control occurs prior to the first anniversary of your employment by the Company, and (b) 100% of total options if change of control occurs at an time thereafter.

  
 Severance 
  
 Should your employment with the Company be terminated at any time without cause, you will
receive the greater of (a) the standard severance base pay compensation applicable to a person with your tenure with the Company or (b) six (6) months of your then current base pay. For purposes of this provision, “without cause” shall
include, but is not limited to: (1) a change in control of the Company which results in a diminished level of responsibility for you; or (2) a requirement that you relocate from the Boston, Massachusetts area. For purposes of this offer letter,
“diminished level of responsibility” means: (w) a reduction in the scope of your responsibility such that you no longer manage those engineering groups assigned to you immediately prior to the Company’s receipt of a tender offer,
which offer ultimately results in a change of control; (x) a reduction in the full-time headcount of your assigned engineering groups of greater than 25%, as measured from the date sixty (60) days preceding the change of control, if such reduction
takes place within six (6) months of the date of the change of control; (y) a demotion in title from that assigned to you immediately prior to the Company’s receipt of a tender offer, which offer ultimately results in a change of control; or
(z) a reduction in compensation from that assigned to you immediately prior to the Company’s receipt of a tender offer, which offer ultimately results in a change of control. 
  
 Terms and Conditions of Employment 
  
 By accepting this offer of employment, you warrant to Company that you are available to render services as contemplated herein. Specifically, it is a condition of this
offer that you are not subject to a restrictive covenant or other prohibition that would prevent you from working in this capacity (i.e., that you have not entered into any agreements with previous employers which are in conflict with your
obligations to Red Hat). Please provide us with a copy of any employment agreements that impose any obligations subsequent to the termination of the employment covered by such agreement.  
  
 You also will be required to sign Red Hat’s Noncompetition and Employee Non-Disclosure
and Development Agreements as a condition of your employment with the Company. Copies of these agreements are enclosed for your signature. These Agreements must be signed and returned to the Company with your acceptance of this offer letter.

  
 Please sign the letter where indicated below to acknowledge your acceptance of
this offer. This offer will terminate if not accepted, signed, and returned by April 26, 2001. 
  
 Paul, we look forward to your favorable response and welcome you to the Red Hat team! 
  

	
	 Sincerely,

	
	 /s/ Stacy B. Ameduri

	 Stacy Ameduri

	 Human Resources

  
 Agreed to and accepted:
    /s/Paul J. Cormier     Date:     4/19/01Letter Agreement

 Exhibit 10.27 
  
 March 18, 2003 
  
 Alex Pinchev 
 1119 Waverly Way 
 McLean, VA 22101 
  
 Dear Alex: 
  
 We are pleased to offer you the
position of President, International Operations at Red Hat, Inc. (“Red Hat” or the “Company”). Your start date is scheduled for April 7, 2003 and you will report to Matthew Szulik, CEO. Anticipating the extensive travel required
in this role, you will not be required to relocate to the Raleigh area, but may work out of our offices in Vienna, VA, with regular visits to our Raleigh based headquarters as the Company deems appropriate. 
  
 Compensation and Benefits 
  
 Your initial salary will be $250,000.00 on an annualized basis, to be paid in accordance
with the customary pay procedures established by the Company as modified from time to time. Currently, salaries are paid twice per month. In addition, you will be eligible to participate in Red Hat’s Variable Compensation Plan with a target
annualized bonus of $150,000 (currently structured to be payable, if earned, on a quarterly basis) and the Company’s other regular benefit plans. Red Hat currently offers the following benefits: 
  

	 	•	 	Comprehensive major medical/dental/vision insurance plan 

  

	 	•	 	Flexible benefits plan for payment of medical and/or dependent care expenses 

  

	 	•	 	Life Insurance 

  

	 	•	 	401k with Company match 

  

	 	•	 	Short and Long Term Disability 

  

	 	•	 	Employee Stock Purchase Plan 

  

	 	•	 	Educational Reimbursement 

  
 You will be eligible to participate in these and other benefit programs subject to the terms and conditions established by the Company from time to time. For a more detailed understanding of the benefits and the
eligibility requirements, please consult the summary plan descriptions for the programs which will be made available to you. The Company has the right to change, modify or terminate any existing benefits or your salary at any time. 
  
 In addition, and subject to the approval of the Company’s Board of Directors, the
Company will grant you 350,000 stock options, pursuant to the terms and conditions of the Company’s 1999 Stock Option Plan, as amended, (the “Plan”). You will be granted 350,000 stock options on first grant date (after start date in
this role) with Red Hat. The exercise price shall be the fair market value of the shares at the time of grant by the Board 

 
of Directors. All options will be issued on the next grant date in accordance with our stock option plan. 
  
 Subject to approval of the Company’s Board of Directors, in the event of a change of
control of Red Hat, Inc. (where change of control is defined as a change in ownership of greater than 50% of the outstanding shares of the Corporation) and in the event that your employment is terminated or constructively terminated as a result of
such change of control (where constructive termination is defined as the individual not being offered a position of a similar level and responsibility in the combined company as the individual held in the Corporation) then 100% of your remaining
unvested options will immediately vest and be exercisable. 
  
 Terms and
Conditions of Employment 
  
 By accepting this offer of employment, you
warrant to Company that you are available to render services as contemplated herein. Specifically, it is a condition of this offer that you are not subject to a restrictive covenant or other prohibition that would prevent you from working in this
capacity (i.e., that you have not entered into any agreements with previous employers which are in conflict with your obligations to Red Hat). 
  
 You also will be required to sign Red Hat’s Non-Competition and Employee Non-Disclosure and Developments Agreement(s) as a condition of your employment with
the Company. This Agreement will be provided to you on or before March 21, 2003. The Agreement(s) must be signed and returned to the Company on or before April 7, 2003. 
  
 Your employment will be terminable at will, which means that either you or the Company may terminate your employment at any time and for any
or no reason. However, you should be aware that the Company’s practice, should the Company terminate your employment for reasons other than cause, would be to offer you a severance payment. Eligibility to receive such severance payment is
conditional upon signing a general release. As we discussed, the Company plans to present a proposal to the Board of Directors to formalize our severance commitment for those executives directly reporting to Matthew. Although I can make no promises,
you should be aware that our proposal anticipates a severance commitment of no more than six months of base pay, except perhaps in circumstances regarding change of control. 
  
 Please sign the letter where indicated below to acknowledge your acceptance of this offer. This offer will terminate if not accepted,
signed, and returned by March 25, 2003. 
  
 Alex, we look forward to your
favorable response and welcome you to the Red Hat team! You will be an incredible addition to our Red Hat leadership team. 
  

	
	 Sincerely,

	
	 /S/ Mary Sutton

	 Mary Sutton

	 VP, Human Capital

	
	 c.c. Matthew Szulik

  
 Agreed to and accepted:
    /s/ Alex Pinchev                     Date:    March 20, 2003 
  
 (Sent to current location: 
 2567 Avila Lane 
 Grey Oaks Country Club

 Naples, FL 34105)

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