Document:

Exhibit 10.07

 

November 17, 2002

 

Gary Steele

[address]

 

Dear Gary:

 

On behalf of our Board of Directors and with their enthusiastic support, I am delighted to offer you the position of Chief Executive Officer of Extreme E-Mail, Inc.

 

Commensurate with these responsibilities, you will receive a starting base salary of $190,000 per year.  After one year of full-time service, you will be eligible to receive a bonus of up to $20,000 based on successful achievement of mutually agreed-upon objectives.

 

In addition, it shall be recommended to the Board of Directors that you receive a common stock option equivalent to 9% of the Company’s outstanding shares on a fully-diluted basis, as of the date hereof (the “Option”).  You agree and understand that the foregoing sentence does not provide you with a continuing right to receive shares or additional options to maintain a continuing ownership position of 9%.  The Company has not yet adopted a stock option plan, but intends to do so.  Your option shall vest over a period of four years, with 25% vesting on the first anniversary of your start date and the balance vesting monthly over the following three years.  The other terms of you stock option shall be governed by the Company’s standard Employee Stock Option Plan, when such plan is adopted.

 

It shall be recommended to the Board that the Option Plan include a provision for “double-trigger” vesting acceleration in the case an optionee is terminated without cause within one year following a Change of Control.  The recommended acceleration will be 25% of the optionee’s then unvested shares, provided the optionee has been employed for at least one year.  The term “Change of Control” shall mean (i) the Company is a party to a merger or consolidation, or series of related transactions, which results in the voting securities of the Company outstanding immediately prior thereto failing to continue to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least 50% of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after the merger or consolidation, or (ii) a sale or disposition of all or substantially all of the Company’s assets.

 

Furthermore, the Board will nominate you to serve as a Director of the Company.

 

 

You will receive employee benefits such as health insurance, paid time off and holiday pay as these benefits are established by the Company.

 

Your employment with the Company is for no specific period of time and will be “at will.”  Either you or the Company may terminate your employment at any time, for any reason, with or without cause.  This “at-will” employment relationship may only be changed in a document signed by you and a majority of the Company’s Board of Directors.

 

Without limiting the foregoing sentence, if you are terminated by the Company within 6 months of your start date for reasons other than: a) “cause” or b) for unsatisfactory performance, then you will receive a severance payment equal to 6 months of salary, which shall be payable in accordance with the Company’s regular payroll practices.  The term “Cause” shall mean the commission of any act of fraud, embezzlement or dishonesty by you, any unauthorized use or disclosure by you of confidential information or trade secrets of the Company, or any other intentional misconduct by you adversely affecting the business or affairs of the Company in a material manner.

 

Your employment with the Company is contingent upon your execution of the Company’s standard Employee Confidentiality Agreement; your ability to provide the Company with the legally-required proof of your authorization to work in the United States; your representation and warrant that the information on your resume is accurate to the best of your knowledge and that there is no reason, legal or otherwise, that you are or would be prohibited from performing your duties as Chief Executive Officer of the Company.  This letter supersedes and replaces any prior agreements or representations regarding the subject matter described in this letter.  To accept this offer, please sign and return this letter to me.

 

Your employment start date shall be November 22, 2002.

 

If you have any questions, please call me at 650-326-2990.

 

ii

 

With heartfelt exhilaration, on behalf of the entire Extreme E-Mail team we look forward to working with you to build this significant and durable enterprise.

 

 

Sincerely,

 

 

	
/s/   Eric Hahn
    	
 
    	
 
    
	
Eric   Hahn, Chairman
    	
 
    	
 
    
	
Extreme   E-Mail Inc.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
cc:
    	
Jon   Feiber, MDV, Director
    	
 
    	
 
    
	
 
    	
Kevin   Harvey, Benchmark Capital, Director
    	
 
    	
 
    

 

 

I have read, understand and accept the terms of this employment offer.

 

 

	
Date:   November 19, 2002
    	
 
    	
/s/   Gary Steele
    
	
 
    	
 
    	
Gary   Steele
    

 

iiiExhibit 10.08

 

March 9, 2007

 

Paul Auvil

 

Dear Paul:

 

It is my pleasure to offer you the full-time position of Chief Financial Officer at Proofpoint Inc. (the “Company”).  This letter shall serve to confirm the terms of your employment with the Company.

 

1.     Duties.  You will be responsible for all financial and fiscal management aspects of company operation.  You will report to me and will work from our offices located in Cupertino, California.  Of course, the Company may change your position, duties, and work location from time to time as it deems necessary.

 

2.     Compensation.

 

a.               Salary.  You will be paid a monthly salary of $16,666.67 less payroll deductions and all required withholdings.  You will be paid semi-monthly on the Company’s regular payroll dates.

 

b.              Executive Bonus Plan.  You will be eligible to receive a bonus targeted at 20% of your annual base salary with upside potential based upon individual and/or company over-performance.  The bonus will be subject to the terms and conditions of the Executive Bonus Plan Document.  The Company reserves the right to change, amend or cancel this program at any time.

 

c.               Stock Option Plan.  Upon the commencement of your employment and subject to Board approval, the Company will grant you an option to purchase 2.50% of the Company’s Common Stock (the “Option”) on a fully diluted basis at an exercise price equal to the then fair market value on the date of grant.  The Option shall be subject to the vesting restrictions and all other terms of the Proofpoint’s 2002 Stock Option Plan, your Stock Option Agreement and Notice of Grant of Stock Option.

 

d.              Benefits.  You will be eligible for the standard Company benefits for an employee in your position [health insurance, dental insurance, vacation, sick leave, holidays, 401k, etc] in accordance with the terms of the applicable benefit plans.

 

 

3.     Company Policies.  As a Company employee, you will be expected to abide by Company rules and policies, and execute and abide by the Company’s Proprietary Information and Inventions Agreement, a copy of which is attached hereto as Exhibit A for your execution.

 

4.     Former Employers.  In your work for the Company you will be expected not to use or disclose any confidential information, including trade secrets, of any former employer or other person to whom you have an obligation of confidentiality.  Rather, you will be expected to use only that information which is generally known and used by persons with training and experience comparable to your own, which is common knowledge in the industry or otherwise legally in the public domain, or which is otherwise provided or developed by the Company.  During our discussions about your proposed job duties, you assured us that you would be able to perform those duties within the guidelines just described.  You also agree that you will not bring onto Company premises any confidential information or property belonging to any former employer or other person to whom you have an obligation of confidentiality.

 

5.     Exposure to Explicit Electronic Content.  Because of the type of business Proofpoint conducts, during the course of your employment and as a bona fide occupational qualification of your employment you may be periodically exposed to electronic content that displays sexually explicit literary material and/or electronically conveyed images.  By accepting employment with Proofpoint it is with the full understanding that your exposure to the content described above will not interfere with the performance of your job duties, will not cause you to consider the workplace intolerable or hostile, and will not cause you to believe that you are subject to sexual harassment in the workplace.

 

6.     Alternate Dispute Resolution.  To ensure the rapid and economical resolution of disputes that may arise in connection with your employment with the Company you must agree to submit such disputes to arbitration.  Accordingly, please sign the Arbitration Agreement attached as Exhibit B and return it to me.

 

7.     Conflicts.  As an exempt employee, you are expected to work the number of hours required to get the job done.  However, you are generally expected to be present during normal business hours of the Company, which will be established by the Company and may be changed as needed to meet the needs of the business.  You agree that during your employment with Proofpoint, you will not engage in any other employment, occupation, consulting or other business activity directly related to the business in which Proofpoint is now involved or becomes involved during the term of your employment, nor will you engage in any other activities that conflict with your obligations to Proofpoint.

 

8.     Employment Status.  The Company is an “at-will” employer.  This means that you may terminate your employment with the Company at any time and for any reason whatsoever simply by notifying Proofpoint.  Likewise, the Company may terminate your employment at any time, for any reason, with or without cause or advance notice.

 

9.     Miscellaneous.  This letter, together with your Proprietary Information and Inventions Agreement and the Arbitration Agreement form the complete and exclusive statement of your employment agreement with Proofpoint.  It supersedes any other agreements or promises made to you by anyone, whether oral or written, and it can only be modified in a written agreement signed by the Chief Executive Officer of the Company.

 

2

 

As required by law, this offer is subject to satisfactory proof of your right to work in the United States, your successful clearance of a routine background and reference check (including executing the consent forms to perform those checks which are included with this letter attached hereto as Exhibit C), and signing the enclosed Proprietary Information and Arbitration Agreements.  Please sign and date this letter, both of its exhibits, and the background check consent forms and return them to me by end of business Monday, March 12, 2007, if you wish to accept employment with Proofpoint under the terms described above.  If you accept our offer, we would like you to start on Tuesday, March 20, 2007, subject to first successfully clearing the background and reference checks noted above.

 

We look forward to working with you to make Proofpoint a success.  If there are any aspects of our offer, which you would like, clarified, please let us know.

 

 

	
 
    	
 
    	
Very   truly yours,
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/Gary   Steele
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Gary   Steele
    
	
 
    	
 
    	
Chief   Executive Officer
    

 

	
Understood &   Agreed:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   Paul Auvil
    	
 
    	
 
    
	
Paul   Auvil
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Date
    	
3-9-07
    	
 
    	
 
    

 

3

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