Document:

Offer Letter, between Denis Brotzel and Tumbleweed Communications Corp.

 
Exhibit 10.18

 
February 18, 2003

 
Mr. Denis Brotzel 
837 Hierra Court 
Los Altos, California 94022 
 
Dear Denis: 
 
I am
pleased to confirm the offer extended to you to join Tumbleweed Communications Corp. (the “Company”) in the position of Vice President, reporting to Senior Vice President and General Manager of the Valicert Business Unit, on the terms and
conditions set forth below. 
 
Effectiveness of this
Agreement. This offer is effective upon and subject to the Closing, as that term is defined in the Agreement and Plan of Reorganization and Merger, dated February 18, 2003, between the Company, Valicert, Inc. and Velocity Acquisition Sub, Inc.,
(the “Merger Agreement”). This offer is further conditioned upon you and Valicert, Inc. not modifying, enhancing or altering in any way your current employment arrangement with Valicert, Inc., prior to the Closing, without the
Company’s express, written consent, which will not be unreasonably withheld. The foregoing restriction includes, but is not limited to, entering into any new agreements, or modifying any existing agreements or arrangements, with respect to
compensation, benefits, loans (including payment terms, interest and/or loan forgiveness) employment terms, stock options or grants, change in control contingencies and severance or termination payments. 
 
Salary and Benefits. Your salary will be $135,000 on an annualized
basis, payable in accordance with the Company’s standard payroll procedures (“Base Salary”). You will also be eligible for certain quarterly bonuses and incentive compensation of up to $135,000 based on the achievement of certain
performance objectives, as set forth in Exhibit A, attached hereto. All Base Salary and bonus payments you receive hereunder are subject to normal tax withholdings. You will also be eligible to participate in all health benefits, insurance programs,
retirement plans and other employee benefit programs and arrangements (collectively, the “Employee Benefits”) available to employees of the Company generally, subject to the terms and conditions of those Employee Benefit plans and as may
be amended from time to time. 
 
At-Will Employment. If you
choose to accept this offer, you and the Company agree that your employment is at-will and, thus, is for no specific period. As a result, you are free to resign at any time, for any reason, or for no reason. Similarly, the Company is free to

 
conclude its at-will
employment relationship with you at any time, with or without cause. The Company’s provision of the Special Severance Payment under the specific circumstances set forth below does not alter or otherwise modify the at-will nature of your
employment with the Company but merely sets forth the specific conditions under which you may be eligible for severance benefits. 
 
Special Severance Payment. You will be eligible during the first ninety (90) calendar days of your employment with the Company (with employment
commencing on the Closing) (the “Special Severance Period”) for a Special Severance Payment, payable only in the event that the Company terminates your employment during the Special Severance Period without “Cause” (as defined
below) and not on account of your death, “Disability” (as defined below) or for Cause. If, during the Special Severance Period, the Company terminates your employment for any reason other than Cause, death or Disability, and provided you
execute a waiver and release agreement releasing any and all potential claims you may have against the Company at the time of termination, you will be entitled to receive, as your sole and exclusive remedy (i) an amount equal to twelve (12) months
of your Base Salary then in effect at the time notice of termination is provided to you or $135,000 whichever is greater, paid in accordance with the Company’s normal payroll practices and subject to normal tax withholdings, and (ii)
reimbursement of twelve (12) months of COBRA premiums for your and your family, paid in accordance with the Company’s normal reimbursement procedures (the “Special Severance Payment”). The Special Severance Payment shall be in
addition to any earned but unpaid Base Salary, bonuses and incentive compensation through the date of termination, as well as any accrued but unused vacation and vested benefits to which you may be entitled in accordance with the terms of any
applicable Employee Benefit plan. If, during the Special Severance Period, your employment is terminated by the Company for Cause, on account of your death or Disability or in the case that you voluntarily resign your employment with the Company for
any reason, you (or your estate, conservator or designated beneficiary, as the case may be) shall only be entitled to receive payment of any earned but unpaid Base Salary, bonuses and incentive compensation through the date of termination, as well
as any accrued but unused vacation and vested benefits to which you are entitled in accordance with the terms of any applicable Employee Benefit plan. 
 
Termination after the Special Severance Period. If, after the expiration of the Special Severance Period, your employment is terminated by the
Company for any reason other than Cause (as defined below), death or Disability (as defined below), and provided you execute a waiver and release agreement releasing any and all potential claims you may have against the Company at the time of
termination, you will be entitled to receive, as your sole and exclusive remedy (i) an amount equal to four (4) months of your Base Salary, then in effect at the time notice of termination is provided to you, or $45,000 whichever is greater paid in
accordance with the Company’s normal payroll practices and subject to normal tax withholdings, and (ii) reimbursement of four (4) months of COBRA premiums, paid in accordance with the Company’s normal reimbursement procedures. In the event
your employment is terminated by the Company after the expiration of the Special Severance Period for Cause, on account of your death or Disability or in the case that you voluntarily resign your employment with the Company for any reason, you (or
your estate, conservator or designated beneficiary, as the case may be) shall only be 
 

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entitled to receive payment of
any earned but unpaid Base Salary, bonuses or incentive compensation through the date of termination, as well as any accrued but unused vacation and vested benefits to which you are entitled in accordance with the terms of any applicable Employee
Benefit plan. 
 
Cause. For purposes of this
agreement, and to determine your eligibility for the severance benefits discussed above, “Cause” means your: (i) conviction of, guilty plea to, or entry of a nolo contendere plea to, a felony or other crime involving moral turpitude; (ii)
willful or negligent engagement in conduct that is materially injurious to the Company, financially or otherwise; or (iii) breach of any material term of this agreement. 
 
Disability. For purposes of this agreement, “Disability” means an illness, injury or other
incapacitating condition as a result of which you are unable to perform, with reasonable accommodation, your duties under this agreement for (i) thirty (30) consecutive days or (ii) a period or periods aggregating more than ninety (90) days in any
six (6) consecutive months. In any such event, the Company, in its sole discretion, may terminate this agreement by giving notice of its decision to terminate your employment for Disability. You agree to submit to such medical examinations as may be
necessary to determine whether a Disability exists and any determination as to the existence of a Disability shall be made by a physician selected by the Company. 
 
Proprietary Information. As a condition of employment, you will be required to sign the Company’s Proprietary
Information and Inventions Agreement, a copy of which is being provided to you with this agreement. Please read and sign it and return it to Bernard J. Cassidy, the Company’s General Counsel.  
 
Federal Immigration Compliance: In accordance with federal law, you
will be required to demonstrate employment eligibility, which includes verification of your identity and of your authorization to work in the United States. The Company requests that you provide proper documentation on your first day at work and, in
any event, it must be provided to the Company no later than three (3) business days from your date of hire. 
 
Miscellaneous. This agreement, together with the Proprietary Information and Inventions Agreement and any plan documents governing Employee Benefits, contain all the understandings between you
and the Company with respect to your employment with the Company and supersedes all other prior agreements and understandings, whether oral or in writing. No provision of this agreement may be amended or waived unless agreed to in writing, signed by
you and a duly authorized officer of the Company. This agreement will be governed by and construed in accordance with the laws of the State of California. 
 
 

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We hope you agree that you
have a great contribution to make to the Company, and that you will find working here a rewarding experience. To indicate your acceptance of this offer of employment on the terms and conditions set forth above, please sign and date this confirmation
form and return it to the Company. 
 
This offer will terminate at
midnight on February 18, 2003. 
 
 
/s/    DOUGLAS A. SABELLA 

Douglas A. Sabella 
President and Chief Operating Officer 
Tumbleweed Communications Corp. 
 
Please indicate acceptance of this offer by returning this form with your signature. 
 
I agree to and accept the enclosed offer of employment with Tumbleweed Communications Corp. effective upon and subject
to the Closing of the Transaction. 
 
 

	 /s/    DENIS
BROTZEL
	 	 	 	 2/18/03

	
 Denis
Brotzel
	 	 	 	
 Date

 

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Exhibit A

To be determined within thirty (30) days of the date of this Agreement. 
 

5Non-Competition Agreement, between Joseph Amram and Tumbleweed Communications

 
Exhibit 10.19

 
RESTRICTIVE COVENANTS AGREEMENT

 
THIS RESTRICTIVE COVENANTS AGREEMENT (this
“Agreement”) is entered into as of February 18, 2003, by and between Tumbleweed Communications Corp., a Delaware corporation (the “Company”), and Yosi Amran (“Shareholder”), a shareholder of
Valicert, Inc., a Delaware corporation (“Valicert”). 
 
RECITALS 
 
A.    Valicert and the Company are engaged in the business of secure messaging and communication and document management (the “Business”). 
 
B.    Shareholder is a significant
stockholder and executive of Valicert and accordingly has acquired confidential and proprietary information relating to the business and operation of Valicert. 
 
C.    Shareholder’s covenant not to compete with the Company, as reflected in this Agreement, is an essential
inducement to the Company to enter into the transactions described in the Agreement and Plan of Merger dated as of February 18, 2003 (the “Merger Agreement”), among the Company, Valicert and a wholly owned subsidiary of the Company,
Velocity Acquisition Sub, Inc. (the transactions contemplated by the Merger Agreement are referred to hereinafter as the “Merger”). 
 
D.    Shareholder holds a substantial number of the issued and outstanding shares of stock of Valicert, for which he
will receive valuable consideration as part of the transactions contemplated by the Merger Agreement, and therefore has a material economic interest in the consummation of the Merger. 
 
E.    In order to protect the goodwill related to the Business, and as a condition of the
Company entering into the Merger Agreement, Shareholder has agreed to the restrictive covenants set forth in this Agreement. 
 
AGREEMENT 
 
NOW, THEREFORE, in consideration of the foregoing and to induce the Company to consummate the transactions contemplated by the Merger
Agreement and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Shareholder hereby covenants and agrees as follows: 
 
1.    Noncompetition. 
 
(a)    Shareholder and the Company agree that due to the nature of Shareholder’s
association with Valicert, Shareholder has confidential and proprietary information relating to the Business and operations of Valicert and the Company. Shareholder 

 
acknowledges that such
information is of extreme importance to the business of Valicert and the Company and will continue to be so after the Merger and that disclosure of such confidential information to others, especially the Company’s Competitors (as defined
below), or the unauthorized use of such information by others would cause substantial loss and harm to the Company. 
 
(b)    Shareholder and the Company further agree that the market for the Business is intensely competitive and that
there are certain, identified companies that directly compete with the Company in the Business (the “Competitors”). 
 
(c)    During the period which shall commence at the Closing (as that term is defined in the Merger Agreement) and
shall terminate two (2) years from the date of the Closing (the “Restricted Period”), Shareholder shall not directly or indirectly (including without limitation, through any Affiliate (as defined below) of Shareholder), own, manage,
operate, control or otherwise engage or participate in, or be connected as an owner, partner, principal, creditor, salesman, guarantor, advisor, member of the board of directors of, employee of or consultant of any of the Competitors listed on
Exhibit A hereto. 
 
(d)    Notwithstanding the foregoing provisions of Section 1(c) and the restrictions set forth therein, Shareholder may own securities in any of the Competitors that is publicly held, but only to the extent that
Shareholder does not own, of record or beneficially, more than 3% (three percent) of the outstanding beneficial ownership of any such Competitor. 
 
(e)    “Affiliate” as used herein, means, with respect to any person or entity, any person or entity
directly or indirectly controlling, controlled by or under direct or indirect common control with such other person or entity. 
 
2.    Nonsolicitation of the Company Employees.    During the Restricted Period,
Shareholder shall not, without the prior written consent of the Company, knowingly solicit, request, cause or induce any person who is at the time an employee of or a consultant of the Company to leave the employ of or terminate such person’s
relationship with the Company. 
 
3.    Nondisparagement.    During the Restricted Period, Shareholder shall not knowingly disparage the business reputation of the Company (or its management team) or take any actions
that are harmful to the Company’s goodwill with its customers, content providers, bandwidth or other network infrastructure providers, vendors, employees, the media or the public. 
 
4.    Confidentiality.    Shareholder covenants that he will
not, at any time, directly or indirectly, use for his own account, or disclose to any person, firm or corporation, other than authorized officers, directors and employees of the Company, Confidential Information (as hereinafter defined) of Valicert
and/or the Company. As used herein, “Confidential Information” means information about Valicert and the Company of any kind, nature or description, including, but not limited to, any proprietary knowledge, trade secrets, data, formulae,
employees, and client and customer lists and all documents, papers, resumes, and records (including computer records) which is disclosed to or otherwise known to the Shareholder as a direct or indirect consequence of his association with Valicert as
an employee and a member of its Board of 
 

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Directors and his association
with the Company in the context of the Merger. Shareholder acknowledges that such Confidential Information is specialized, unique in nature and of great value to the Company and that such information gives the Company a competitive advantage in the
Business. Shareholder further agrees to deliver to the Company, at the Company’s request, all documents, computer tapes and disks, records, lists, data, drawings, prints, notes and written or electronic information (and all copies thereof)
furnished by Valicert or the Company or created by Shareholder in connection with his association with Valicert and/or the Company. 
 
5.    Injunctive Relief.    The parties agree that the remedy at law for any breach of this
Agreement is and will be inadequate, and in the event of a breach or threatened breach by Shareholder of the provisions of Sections 1, 2, 3 or 4 of this Agreement, the Company shall be entitled to seek an injunction restraining Shareholder from the
conduct which would constitute a breach of this Agreement. Nothing herein contained shall be construed as prohibiting the Company from pursuing any other remedies available to it or them for such breach or threatened breach, including, without
limitation, the recovery of damages from Shareholder. 
 
6.    Reasonableness and Enforceability of Covenants. 
 
(a)    The parties expressly agree that the character and duration of this Agreement are reasonable in light of the circumstances as they exist on the date upon which this Agreement
has been executed, including, but not limited to, Shareholder’s material economic interest in the transactions contemplated in the Merger Agreement as well as his position of confidence and trust as Chairman of the Board of Directors of
Valicert. 
 
(b)    If any
court of competent jurisdiction determines that any of the covenants and agreements contained herein, or any part thereof, is unenforceable because of the character, duration or geographic scope of such provision, such court shall have the power to
reduce the duration or scope of such provision, as the case may be, and, in its reduced form, such provision shall then be enforceable to the maximum extent permitted by applicable law. 
 
(c)    Shareholder acknowledges that (i) as part of the Merger, the Company will be
vested with the goodwill of, and will carry on, the Business that had been conducted by Valicert prior to the Merger; (ii) the restrictive covenants and the other agreements contained herein are an essential part of this Agreement and no reasonable
person would enter into the transactions contemplated by the Merger Agreement without the benefit of the restrictive covenants herein, and (iii) the transactions contemplated by the Merger Agreement are designed and intended to qualify as a sale (or
other disposition) by Shareholder of all of Shareholder’s interests in Valicert within the meaning of section 16601 of the Business and Professions Code of California (the “BPCC”), which section provides as follows: 
 
§ 16601.
        Sale of good will or corporation shares; agreement not to compete.    Any person who sells the goodwill of a business, or any Shareholder of a corporation selling or otherwise
disposing of all his shares in said corporation, or any Shareholder of a corporation which sells (a) all or substantially all of its operating assets together with the goodwill of the corporation, (b) all or substantially all of the operating assets
of a division or a subsidiary of the corporation together with the goodwill of such division or subsidiary, or (c) all of the shares of any subsidiary, may agree with the buyer to refrain 
 

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from carrying
on a similar business within a specified county or counties, city or cities, or a part thereof, in which the business so sold, or that of said corporation, division, or subsidiary has been carried on, so long as the buyer, or any person deriving
title to the goodwill or shares from him, carries on a like business therein. For the purposes of this section, “subsidiary” shall mean any corporation, a majority of whose voting shares are owned by the selling corporation. 
 
(d)    Shareholder further represents,
warrants and agrees that (i) Shareholder has been fully advised by, or has had the opportunity to be advised by, counsel in connection with the negotiation, preparation, execution and delivery of this Agreement and the transactions contemplated by
this Agreement and the Merger Agreement; and (ii) Shareholder has read section 16601 of the BPCC, understands its terms and agrees that section 16601 of the BPCC applies in the context of the transactions contemplated by the Merger Agreement and
this Agreement and such transactions are within the scope and intent of section 16601 and an exception to section 16600 of the BPCC and agrees to be fully bound by the restrictive covenants and the other agreements contained in this Agreement.
Accordingly, Shareholder agrees to be bound by the restrictive covenants and the other agreements contained in this Agreement to the maximum extent permitted by law, it being the intent and spirit of the parties that the restrictive covenants and
the other agreements contained herein shall be valid and enforceable in all respects, and, subject to the terms and conditions of this Agreement. 
 
7.    Severability.    If any of the provisions of this Agreement shall otherwise
contravene or be invalid under the laws of any state, country or other jurisdiction where this Agreement is applicable but for such contravention or invalidity, such contravention or invalidity shall not invalidate all of the provisions of this
Agreement but rather it shall be construed, insofar as the laws of that state, country or jurisdiction are concerned, as not containing the provision or provisions contravening or invalid under the laws of that state or jurisdiction, and the rights
and obligations created hereby shall be construed and enforced accordingly. 
 
8.    Construction.    This Agreement shall be construed and enforced in accordance with and governed by the laws of the State of California, without
regard to principles of conflicts or choice of laws. 
 
9.    Amendments and Waivers.    This Agreement may be modified only by a written instrument duly executed by each party hereto. No breach of any covenant, agreement, warranty or
representation shall be deemed waived unless expressly waived in writing by the party who might assert such breach. No waiver of any right hereunder shall operate as a waiver of any other right or of the same or a similar right on another occasion.

 
10.    Entire
Agreement.    This Agreement, together with the Merger Agreement and the ancillary documents executed in connection therewith, contains the entire understanding of the parties relating to the subject matter hereof, supersedes
all prior and contemporaneous agreements and understandings relating to the subject matter hereof and shall not be amended except by a written instrument signed by each of the parties hereto. 
 

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11.    Counterparts.    This Agreement may be executed by the parties in separate counterparts, each of which, when so executed and delivered, shall be an original, but all of which,
when taken as a whole, shall constitute one and the same instrument. 
 
12.    Section Headings.    The headings of each Section, subsection or other subdivision of this Agreement are for reference only and shall not limit or control the meaning
thereof. 
 
13.    Assignment.    Neither this Agreement nor any right, remedy, obligation or liability arising hereunder or by reason hereof nor any of the documents executed in connection herewith
may be assigned by any party without the consent of the other parties; provided, however, that the Company may assign their rights hereunder, without the consent of Shareholder, to any entity that acquires or succeeds to the Business. 
 
14.    Further
Assurances.    From time to time, at the Company’s request and without further consideration, Shareholder shall execute and deliver such additional documents and take all such further action as reasonably requested by
the Company to be necessary or desirable to make effective, in the most expeditious manner possible, the terms of this Agreement. 
 
15.    Notices.    All notices and other communications hereunder shall be in writing and
shall be deemed given if delivered personally or two business days after being mailed by registered or certified mail (return receipt requested) to the parties at the following addresses (or at such other address for a party as shall be specified by
like notice): 
 
(a)    if to
the Company: 
 
Tumbleweed
Communications Corp. 
700 Saginaw Drive 
Redwood City, CA 94063 
Attn: General Counsel 
 
(b)    if to Shareholder: 
 
to the address set forth below the name of Shareholder on the signature page hereof. 
 
16.    Each Party the Drafter.    This Agreement and the provisions contained herein shall
not be construed or interpreted for or against any party to this Agreement because that party drafted or caused that party’s legal representative to draft any of its provisions. 
 
17.    Defined Terms.    Capitalized terms not otherwise
defined herein shall have the meanings given to them in the Merger Agreement. 
 
IN WITNESS WHEREOF, the parties hereto have executed this Noncompetition Agreement as of the date first above written. 
 

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	 TUMBLEWEED COMMUNICATIONS CORP.

	
	 By:
	 	 /s/    DOUGLAS A.
SABELLA        

	 Name:
	 	 Douglas A. Sabella

	 Title:
	 	 President and Chief Operating Officer

 
 
 

	 SHAREHOLDER

	
	 /s/    YOSI
AMRAM

	 YOSI AMRAM

	
	 Address:
	 	

	
	 
	

 

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EXHIBIT A 
 
 
Clearswift 
 
Sigaba Corporation 
 
Zix Corporation 
 
Sterling Software 
 
Symantec 
 
Trend Micro Incorporated 
 
Ironmail 
 
Network Associates Inc. 
 

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