Document:

Offer Letter dated October 28, 2005

 Exhibit 10.58 
  
 

 
  
 1933 Milmont Drive 
 Milpitas, California 95035 
  
 P. 408.240.8300 
 F. 408.321.0293 
  
 www rackable.com 
  
 October 28, 2005 
  
 Ms. Madhu Ranganathan 
  
 Dear Madhu, 
  
 On behalf of Rackable Systems
Inc., I am pleased to offer you the position of Vice President of Finance, reporting directly to the Chief Finance Officer & EVP of Operations. 
  
 This offer is conditioned upon our obtaining the following: 
  

	 	1.	Your signature and date on the enclosed copy of this letter, indicating your acceptance of this offer. 

  

	 	2.	Your signature and date on the enclosed Employee Proprietary Information and Inventions Agreement, which among other things requires that you have not thus far, and you will
not during your employment with Rackable Systems., use or disclose to Rackable Systems any proprietary information or trade secrets of any former employer or other company nor have you or will you bring onto Rackable Systems’ premises any
confidential or proprietary information of any former employer or other company unless such former employer or company has consented to such action in writing. 

  

	 	3.	Satisfactory results from any background and reference checks. 

  

	 	4.	Documentation verifying your identity and legal authority to work in the United States no later than three business days after the date you commence work. Enclosed is a list of
Acceptable Documents that will be necessary for you to show proof of your employment eligibility. 

  
 Your initial compensation will include a base salary rate of $16,666.67 per month, (equal to $200,000 on an annualized basis) payable bi-weekly in accordance with the
Company’s regular payroll practices. Your base salary will be subject to statutory deductions and withholdings. 
  
 You will participate in the Rackable MBO Bonus plan. You will be eligible for a quarterly bonus of up to $20,000 ($80,000 annual gross) based upon specific performance
targets as set and agreed to by you and your manager. Your incentive compensation is not guaranteed and will be subject to statutory deductions and withholdings. 

 Madhu Ranganathan 
 November 3, 2005 
 Page 2 
  
 It will be recommended to the Board of Directors to approve a grant for an option to purchase 125,000 shares of the Company’s common stock. The strike price of these
options will be determined by the Fair Market Value of the Common Stock subject to the Option on the date the Option is granted. Your options will be subject to a four year vesting schedule, with vesting to commence as of your start date as an
employee under this agreement. Your options shall only vest if you have been continuously employed by Rackable from the Start Date listed below through the applicable option vesting date (e.g., at the end of the first year of employment or the
applicable monthly period thereafter as set forth in the next sentence). Under the vesting schedule, your option shares would vest at the rate of 25% upon completion of the first year of employment, with an additional 2.0833% of such shares vesting
for each full month of continuous employment completed after the first anniversary. Your options, if approved, shall be granted subject to all of the terms and conditions set forth in an option agreement prepared by Rackable. Any grant of stock
options over time in no way alters the employment “at will” relationship described below. 
  
 Upon the occurrence of both (a) a change of control and (b) any one of the following within 12 months after a “change of control”, termination without cause, given a position of substantially
lesser responsibility; or required to relocate to an office more than 30 miles from Rackable’s corporate offices (“COC Termination”), you will be eligible for a cash payment. Such cash payment shall be equal to the fair market value
of all unvested option shares on the date of the occurrence of one of the events set forth in subsection (b) above less the exercise price for such unvested option shares. “Change of control” is defined as an exchange of more than 50%
of Rackable’s equity securities in an acquisition. 
  
 In addition, in the
event of a COC Termination, the Company shall provide the following benefits until the earlier of (a) six (6) months from the COC Termination date or (b) the date you commence full time employment (including self-employment and/or
consulting work); (i) base salary; and (ii) payment of COBRA premiums for you and your dependents. Any such amounts will be payable at such times as such amounts would have been paid had you not been terminated. 
  
 Further, if your employment is terminated by the Company without cause, the Company shall
provide the following benefits until the earlier of (a) three (3) months from the termination date or (b) the date you commence full time employment (including self-employment and/or consulting work): (i) base salary; and
(ii) payment of COBRA premiums for you and your dependents. Any such amounts will be payable at such times as such amounts would have been paid had you not been terminated. 
  
 As a full-time employee, you will be eligible to participate in the Company’s benefit plans, including the medical, dental, vision,
long-term disability and life insurance programs. We have put a great deal of emphasis on our benefits, and expect that they will continue to evolve as we grow and as the needs of our employees and their families change. In addition, you will begin
to earn thirteen days of Paid Time Off (4.0 hours accrued per pay period) in accordance with applicable Company policy. If you accept this offer of employment, you will be given a copy of Rackable Systems’ benefit plan documents which will
describe more fully these and other benefits of your employment. 
  
 Employment
with Rackable Systems is “at will.” This means that employment is not for a specific term and can be terminated by you or by the Company at any time for any reason, with or without cause. The at will employment relationship also means that
this employment offer, your job duties, title, responsibility, reporting level, compensation and benefits, as well as any other terms and conditions of employment (with the exception of the employment at will policy itself), may be modified or
rescinded at any time in the sole discretion of Rackable Systems. This is the full and complete agreement between us on this term of your employment. Any contrary representations which may have been made or which may be made to you are superseded by
this offer. Any modification of this term must be in writing and signed by you and the Company. 

 Madhu Ranganathan 
 November 3, 2005 
 Page 3 
  
 Madhu, we are pleased that you are interested in Rackable Systems. As with all important decisions, however, you should make a decision concerning this offer based on
your own independent investigation and judgment concerning Rackable Systems’ financial condition and future prospects. Any representations not contained in this letter, or contrary to those contained in this letter, which have been made to you
are expressly superseded by this offer. 
  
 If you accept this offer, please
return to me the signed and dated copy of this letter and the Employee Proprietary Information and Inventions Agreement. Unless you accept on or before October 31, 2005 this offer will expire. 
  

	
	Sincerely,
	
	 /s/ Jennifer L. Pratt

	Jennifer L. Pratt
	Sr. Director of Human Resources

  
 Attachments: 
  
 Proprietary Information and Inventions Agreement 
 List of Acceptable Documents for 1-9 Form 
  
 CANDIDATE ACCEPTANCE 
  
 I accept the offer of employment with Rackable Systems pursuant to the terms and conditions set forth in this letter. I will start work on
                        , 2005. 
  

			
	 /s/ Madhu Ranganathan

	  	 November 3, 2005

	Candidate’s Signature	  	DateOffer Letter dated November 29, 2004

 Exhibit 10.59 
  
 November 29, 2004 
  
 Mr. William Garvey 
  
 Dear Bill: 
  
 Rackable Systems, Inc.
(“Rackable” or the “Company”) is pleased to offer you the position of General Counsel, Vice President of Corporate Development, reporting to the Chief Financial Officer. This letter sets forth the terms of this offer: 

 

	 	1.	Base Salary. Annual base salary of $190,000. You will be paid 1/26 of this amount every 2 weeks, or a total of $6,923.08 (gross) less payroll deductions and all required
withholdings. You shall devote your best efforts and your full business time, business judgment, business skill, knowledge and attention to advancing the business and affairs of Rackable and its affiliates. 

  

	 	2.	MBO Bonus Program. You will be eligible for a quarterly bonus potential of up to $11,250 (gross), less payroll deductions and all required withholding. Actual bonus amounts
will be assessed by the Chief Financial Officer based upon performance to predetermined, written objectives. While these bonuses are performance based, most Rackable employees who are on this program have a history of strong performance to
objectives and generally achieve 80-90% of the bonus potential. Bonus amounts will be prorated based upon the period of time you are employed during a particular quarter. Bonus amounts will be determined and paid during the first regular payroll run
following quarter close. 

  

	 	3.	Equity position. It will be recommended to the Board of Directors that you be granted a stock option to purchase 70,000 shares of Common Stock under Rackable’s Employee
Stock Option Plan. Your options will be subject to a five year vesting schedule, with vesting to commence as of your start date as an employee under this Agreement. Your options shall only vest if you have been continuously employed by Rackable from
the Start Date listed below through the applicable option vesting date (e.g., at the end of the first year of employment or the applicable monthly period thereafter as set forth in the next sentence). Under the vesting schedule, your option shares
would vest at the rate of 20% upon completion of the first year of employment, with an additional 1.6667% of such shares vesting for each full month of continuous employment completed after the first anniversary. Your options, if approved, shall be
granted subject to all of the terms and conditions set forth in an option agreement prepared by Rackable and executed by you and Rackable (the “Stock Option Agreement”) and the grant of such options shall be conditioned upon the execution
of such Stock Option Agreement. 

  

	 	4.	Acceleration upon change of control. You will be eligible for immediate vesting of all unvested shares upon the occurrence of both (a) a “change of control”
and (b) any one of the following within 12 months after “change of control”, termination without cause; given a position of substantially lesser responsibility; or required to relocate, the specific terms of which shall be set forth
in your Stock Option Agreement. “Change of control” is defined as an exchange of more than 50% of Rackable’s equity securities in an acquisition. 

	 	5.	Severance. If your employment is terminated by the company without cause, the company shall provide, and you shall be entitled to receive the following enumerated benefits
until the earlier of (1) six (6) months from the Separation Date or (2) the date you commence full time employment (including self-employment and/or consulting work) for another entity: (i) base salary payable in regular
installments from the date of termination through the date that is (6) months after the date of termination; and (ii) payment of COBRA premiums for you and your dependents for a period of six (6) months after date of termination. Any
such amounts will be payable at such times as amounts would have been paid had you not been terminated. 

  
 Rackable also offers a comprehensive benefits package, including medical, dental and vision insurance coverage, 401(k) Retirement Savings Plan, EAP, Life/LTD, paid
holidays and three weeks PTO annually as specified by Rackable policy for all employees. 
  
 Your employment with Rackable is for no specified term and is “at will,” and may be terminated by you or Rackable at any time, with or without cause or advance notice. 
  
 This letter, the Company’s agreement relating to proprietary rights between you and
Rackable to be provided by the Company to you (the “Inventions Agreement”) and, if approved by the Board of Directors, the form of option agreement between you and Rackable relating to your option grant described above set forth the terms
of your employment with the Company and supersede any prior representations or agreements, whether written or oral. It is a condition to this offer and your employment that you execute the Inventions Agreement on or prior to your acceptance of this
offer letter. You also must comply with all Company policies and rules. As required by law, this offer is subject to satisfactory proof of your right to work in the United States. You agree to treat with confidentiality the terms of this offer and
to not disclose or discuss or release any such terms to any person or entity (except your attorney, accountant and other consultants) without the consent of the Board of Directors of the Company. This letter may not be modified or amended, except by
a written agreement, signed by the Company and you. 
  
 Bill, we believe this
position will provide you with an excellent opportunity for professional growth, as well as offering you the excitement and rewards of a dynamic and growing company. Rackable feels the single most important factor in our success will be our people.
We are confident that the skills and background you bring to us will be instrumental to Rackable’s success. 
  
 Please keep a copy and return the signed original of this offer letter to me by December 10, 2004. As we’ve discussed, we look forward to you joining our team
and starting on or before January 1, 2005. 
  

			
	Sincerely,
	
	RACKABLE SYSTEMS, INC.
		
	By:	 	 /s/ Todd Ford

	 	 	Todd Ford
	 	 	Chief Financial Officer

  
 I agree to and accept this offer of
employment with RACKABLE SYSTEMS, Inc. 
  

			
	 /s/ Bill Garvey

	 	 TBD

	Name	 	Start Date

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]