Document:

exv10w13

 

Exhibit 10.13

February 26, 2004

Mr. Kevin Mosher

                                        

                                        

Dear Kevin:

     This letter will serve as an offer of employment to you with ArcSight, Inc. as Senior Vice
President World Wide Field Operations, reporting directly to the President and Chief Executive
Officer. You will work in this capacity on a full-time basis.

     In this position, your base salary will be $20,833.33 per month, earned and paid semi-monthly.

     You will be entitled to earn a commission on sales completed by the Company under your
direction. Your on-target earnings (OTE) including base salary and commission, will be $400,000
annualized at 100% of your Commission Plan. Your “Commission Plan” for the balance of calendar
year 2004 is bookings T B D (this amount to be determined in consultation with Robert W. Shaw,
President and CEO on or before your start date), minus actual bookings for the period January 1,
2004 through your start date. A commission ladder will be determined in consultation with Robert
W. Shaw on or before your start date.

     Also, subject to approval of the Company’s Board of Directors or its Compensation Committee
you will be granted an option to acquire 1,500,000 shares of the Company’s Common Stock at an
exercise price equal to the fair market value of the shares on the date the option is granted or
your first date of employment, whichever is later. The option will be immediately exercisable, but
the unvested portion of the purchased shares will be subject to repurchase by the Company at the
exercise price in the event that your service terminates for any reason before you vest in the
shares. You will vest in 25% of the option shares after 12 months of continuous service, and the
balance will vest in equal monthly installments over the next 36 months of continuous service, as
described in your Stock Option Agreement.

     If the Company is subject to a Change in Control (as defined in the Plan) before your service
with the Company terminates and you are subject to an Involuntary Termination within 12 months
after that Change in Control, then the vested percentage of your option shares will be determined
by adding 24 months to the actual period of service that you have completed with the Company; and
(ii) the Company will pay you severance pay and reimburse you for the COBRA premiums paid by you to
continue the health care coverage in effect for you and your eligible dependants for a period of
twelve (12) months following the termination of your employment. Your severance pay will be at the
rate of your base salary in effect at the time of the termination of your employment and in
accordance with the Company’s standard payroll procedures.

 

 

However, this paragraph (4) will not apply unless you (i) sign a general release of claims (in
a form prescribed by the Company,) and (ii) have returned all Company property.

     “Involuntary Termination” means (a) that your service is terminated by the Company without
Cause; (b) that you resign within thirty (30) days after the scope of your job responsibilities or
authority was materially reduced without your written consent.

     “Cause” means (a) any breach of this letter agreement, the Proprietary Information and
Inventions Agreement between you and the Company, or any other written agreement between you and
the Company, (b) any failure to comply with the Company’s written policies or rules, as they may be
in effect from time to time during your employment; (c) commission, conviction of, or a plea of
“guilty” or “no contest” to, a felony under the laws of the United States; (d) neglect of duties;
or (e) misconduct.

     As an employee, you will be eligible to participate in a number of Company sponsored benefits
in accordance with ArcSight, Inc.’s benefit plans. In addition, you will accrue up to three (3)
weeks (15 days) of vacation per year pursuant to ArcSight, Inc.’s vacation policy.

     You are required to follow ArcSight, Inc.’s policies and practices. You will also have access
to certain of ArcSight, Inc.’s trade secrets, staff, customers, and confidential and proprietary
information. Accordingly, your employment is contingent upon you signing the attached Proprietary
Information and Inventions Agreement.

     While you render services to the Company, you agree that you will not engage in any other
employment, consulting or other business activity without the prior written consent of the Company.
While you render services to the Company, you also will not assist any person or entity in
competing with the Company, in preparing to compete with the Company or in hiring any employees or
consultants of the Company.

     Your employment at ArcSight, Inc. is for no specified period of time. It is an at-will
employment relationship, and either you or ArcSight, Inc. may terminate the relationship at any
time, for any reason, with or without cause. This paragraph is intended to be the complete and
exclusive statement regarding the circumstances under which your employment may be terminated. It
supersedes any prior agreement or representation. If any term of this paragraph conflicts with any
practice or policy of ArcSight, Inc., now or in the future, the terms of this paragraph will
control. The terms of this paragraph may not be changed except by written agreement signed by you
and the President of ArcSight, Inc.

     This offer is contingent upon your completion and execution of all employment documents, as
well as your ability to provide proof of identification and authorization to work in the United
States, (within three business days of your start) and upon the completion and
acceptance of all information related to your references and background check, even if this
information is not known until after your employment commences.

 

 

     This offer of employment will expire midnight February 27, 2004, unless accepted by you on the
terms contained herein.

     You and the Company agree to waive any rights to a trial before a judge or jury and agree to
arbitrate before a neutral arbitrator any and all claims or disputes arising out of this letter
agreement and any and all claims arising from or relating to your employment with the Company,
including (but not limited to) claims against any current or former employee, director or agent of
the Company, claims of wrongful termination, retaliation, discrimination, harassment, breach of
contract, breach of the covenant of good faith and fair dealing, defamation, invasion of privacy,
fraud, misrepresentation, constructive discharge or failure to provide a leave of absence, or
claims regarding commissions, stock options or bonuses, infliction of emotional distress or unfair
business practices.

     The arbitrator’s decision must be written and must include the findings of fact and law that
support the decision. The arbitrator’s decision will be final and binding on both parties, except
to the extent applicable law allows for judicial review of arbitration awards. The arbitrator may
award any remedies that would otherwise be available to the parties if they were to bring the
dispute in court. The arbitration will be conducted in accordance with the National Rules for the
Resolution of Employment Disputes of the American Arbitration Association; provided, however that
the arbitrator must allow the discovery authorized by the California Arbitration Act or the
discovery that the arbitrator deems necessary for the parties to vindicate their respective claims
or defenses. The arbitration will take place in Santa Clara County, California, or, at your
option, the county in which you primarily worked with the Company at the time when the arbitrable
dispute or claim first arose.

     The Company will pay the costs of arbitration, and the arbitrator may award attorney’s fees to
the prevailing party.

     If an arbitrator or court of competent jurisdiction (the “Neutral”) determines that any
provision of this arbitration provision is illegal or unenforceable, then the Neutral shall modify
or replace the language of this arbitration provision with a valid and enforceable provision, but
only to the minimum extent necessary to render this arbitration provision legal and enforceable.

     Finally, this offer letter sets forth all the material terms of your employment. By signing
it, and thereby accepting employment at ArcSight, Inc., you acknowledge that you have not relied
upon any other written or oral statements concerning the terms of your employment.

     We hope that you will accept our offer to join the Company. You may indicate your agreement
with the terms of this letter by signing and dating two (2) copies each of this letter agreement
and the enclosed Proprietary Information and Inventions Agreements and returning one set to me.

 

 

     We look forward to having you on board!

Sincerely,

/s/
Robert W. Shaw
Robert W. Shaw

President and CEO

ArcSight, Inc.

     I, Kevin Mosher, have read and accept this offer:

	 	 	 	 	 	 	 
	 	 	/s/
Kevin Mosher 	 	 
	 
	 	 	 	 	 	 
	 

	 	Dated:	 	2/26/04exv10w14

 

Exhibit 10.14

October 5, 2006

Tom Reilly

                                        

                                        

Dear Tom:

     This letter will serve as an offer of employment to you with ArcSight, Inc. as ArcSight’s
Chief Operating Officer. You will work in this capacity on a full-time basis, giving your best
efforts to the performance of your duties.

     In this position, your salary will be $25,000 per month, earned and paid semi-monthly.
Additionally you will be eligible to receive up to 35% of annual base salary, at plan, in the form
of an annual bonus and up to a maximum of 100% in the event the Company exceeds certain milestones.
This will be paid if both you and the Company achieve certain milestones. These milestones will
be communicated to you shortly after you join ArcSight. You may begin to participate in ArcSight’s
bonus plan beginning Fiscal Year 2007 (5/1/06 – 4/30/07) prorated from start date.

     In addition, subject
 to approval of the Company’s Board of Directors or its Compensation
Committee, you will be granted an incentive stock option, to the extent allowed under the Internal
Revenue Code, to acquire 3% (as of 10/5/06) of all issued and outstanding shares of the Company’s
Common Stock and Preferred Stock, on a fully exercised and as converted
basis, and all issued and outstanding securities convertible into,
exercisable for or providing the right to acquire the Company’s
Common Stock or Preferred Stock, at an exercise price equal to the fair
market value of the shares on the date the option is granted or your first date of employment,
whichever is later. The option will be immediately exercisable, but the unvested portion of the
purchased shares will be subject to repurchase by the Company at the exercise price in the event
that your service terminates for any reason (subject to the paragraph below regarding additional
vesting after an Involuntary Termination following a Change in Control) before you vest in the
shares. You will vest in 25% of the option shares after 12 months of continuous service, and the
balance will vest in equal monthly installments over the next 36 months of continuous service, as
described in your Stock Option Agreement.

     In addition you will
 be granted an incentive stock option, to the extent allowed under the
Internal Revenue Code, to acquire 1% (as of 10/5/06) of all issued and outstanding shares of the
Company’s Common Stock and Preferred Stock, on a fully exercised
and as converted basis, and all issued and outstanding securities
convertible into, exercisable for or providing the right to acquire
the Company’s
Common Stock or Preferred Stock, at an exercise price equal to
the fair market value of the shares on the date the option is granted or your first date of
employment, whichever is later. The option will be immediately exercisable, but the unvested
portion of the purchased shares will be subject to repurchase by the Company at the exercise price
in the event that your service terminates for any reason (subject to the paragraph below regarding
additional vesting after an Involuntary Termination following a Change in Control) before you vest
in the shares. Subject to achieving certain performance milestones within the

 

 

Tom Reilly

October 5, 2006

Page 2

first twelve months of your employment with the Company you will vest in 25% of the option
shares after 12 months of continuous service, and the balance will vest in equal monthly
installments over the next 36 months of continuous service, as described in your Stock Option
Agreement. These performance milestones will be communicated to you shortly after you join
ArcSight.

     If the Company is subject to a Change in Control (as defined in the ArcSight, Inc. 2002 Stock
Plan) prior to the first anniversary of your employment start date before your service with the
Company terminates and you are subject to an Involuntary Termination (as defined in your Notice of
Stock Option Grant) within twelve months after that Change in Control, then you shall become vested
in an additional 50% of the unvested option shares as of your termination date. Should the Change
of Control occur on or after the first anniversary of your employment start date and you are
subject to an Involuntary Termination (as defined in your Notice of Stock Option Grant) within
twelve months after that Change in Control then you shall become vested in 100% of your options as
of your termination date. In addition, following the Involuntary Termination, the Company will pay
you severance pay for a period of twelve (12) months following the termination of your employment.
Your severance pay will be at the rate of your base salary in effect at the time of the termination
of your employment and in accordance with the Company’s standard payroll procedures, provided that
such severance pay will be paid in a manner to be exempted under, or compliant with, Section 409A
of the Internal Revenue Code. However, this paragraph will not apply unless you (i) sign a general
release of claims (in a form reasonably prescribed by the Company,) and (ii) have returned all
Company property.

     As an employee, you will be eligible to participate in health and welfare benefits in
accordance with ArcSight, Inc.’s standard plan. In addition, you will accrue three (3) weeks (15
business days) of vacation per year pursuant to ArcSight, Inc.’s vacation policy.

     You are required to follow ArcSight, Inc.’s policies and practices. You will also have access
to certain of ArcSight, Inc.’s trade secrets, staff, customers, and confidential and proprietary
information. Accordingly, we ask that you sign the attached Proprietary Information and Inventions
Agreement.

     While you render services to the Company, you agree that you will not engage in any other
employment, consulting or other business activity without the prior written consent of the Company.
While you render services to the Company, you also will not assist any person or entity in
competing with the Company, in preparing to compete with the Company or in hiring any employees or
consultants of the Company.

     Please understand that your employment at ArcSight, Inc. is for no specified period of time.
It is an at-will employment relationship, and either you or ArcSight, Inc. may terminate the
relationship at any time, for any reason, with or without cause. This paragraph is intended to be
the complete and exclusive statement regarding the circumstances under which your employment

 

 

Tom Reilly

October 5, 2006

Page 3

may be terminated. It supersedes any prior agreement or representation. If any term of this
paragraph conflicts with any practice or policy of ArcSight, Inc., now or in the future, the terms
of this paragraph will control. The terms of this paragraph may not be changed except by written
agreement signed by you and the President of ArcSight, Inc.

     This offer is contingent upon your completion and execution of all employment documents, as
well as your ability to provide proof of identification and authorization to work in the United
States, (within three business days of your start date) and upon the completion and acceptance of
all information related to your background check, even if this information is not known until after
your employment commences

     This offer will expire at the end of business day on October 9, 2006, unless accepted by you
on the terms contained herein.

     Finally, this offer letter sets forth all the material terms of your employment. By signing
it, and thereby accepting employment at ArcSight, Inc., you acknowledge that you have not relied
upon any other written or oral statements concerning the terms of your employment.

     Please indicate your agreement with the terms of this letter by signing and dating one (1)
copy each of both the enclosed offer letter and the enclosed Proprietary Information and Inventions
Agreement and returning them to me.

     We look forward to having you on board!

Sincerely,

/s/
Robert
Shaw
Robert Shaw

Chairman & CEO

ArcSight, Inc.

     I, Tom Reilly, accept this offer:

	 	 	 	 	 	 	 
	 	 	/s/
Tom Reilly 	 	 
	 
	 	 	 	 	 	 
	 

	 	Dated:

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