SEC Contract Filing

Filing Date: 2019-04-15

Document Content:
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>ex101offerlettertwohill.htm
<DESCRIPTION>EXHIBIT 10.1
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<div><a name="sBD900E86747FAE84AF2E047AF5FD3D7D"></a></div><div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div></div><div><br></div><div style="line-height:130%;padding-bottom:10px;text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Exhibit 10.1</font></div><div style="line-height:130%;padding-bottom:10px;text-align:right;"><img src="eximagea02.jpg" alt="eximagea02.jpg" style="height:101px;width:194px;"></div><div style="line-height:120%;padding-bottom:32px;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">April 10, 2019</font></div><div style="line-height:130%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">Lorraine Twohill</font></div><div style="line-height:130%;padding-bottom:10px;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:130%;padding-bottom:10px;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">Dear Lorraine:</font></div><div style="line-height:130%;padding-bottom:10px;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">On behalf of the Board of Directors (the &#8220;</font><font style="font-family:inherit;font-size:11pt;text-decoration:underline;">Board</font><font style="font-family:inherit;font-size:11pt;">&#8221;) of Palo Alto Networks, Inc. (the &#8220;</font><font style="font-family:inherit;font-size:11pt;text-decoration:underline;">Company</font><font style="font-family:inherit;font-size:11pt;">&#8221;), we are pleased to inform you that our Nominating and Governance Committee of the Board has nominated you for election as a member of our Board. </font></div><div style="line-height:130%;padding-bottom:10px;text-align:justify;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">As you are aware, the Company is a Delaware corporation and therefore your rights and duties as a Board member of the Company are prescribed by Delaware law, SEC laws, listing rules for the stock exchange on which our shares are traded, our charter documents and by the policies established by our Board from time to time. In addition, you may also be requested to serve as a director of one or more of our subsidiaries in which case you may be subject to other laws while serving in such a capacity.</font></div><div style="line-height:130%;padding-bottom:10px;text-align:justify;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">From time to time, our Board may establish certain other committees to which it may delegate certain duties. In addition to committee meetings, which shall be convened as needed, our Board meetings are generally held quarterly at the Company&#8217;s offices in Santa Clara, California. We would hope that your schedule would permit you to attend all of the meetings of the Board and any committees of which you are a member. In addition, from time to time, there may be telephonic meetings to address special matters.</font></div><div style="line-height:130%;padding-bottom:10px;text-align:justify;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">It is expected that during the term of your Board membership with the Company you will not engage in any other employment, occupation, consulting or other business activity that competes with the business in which the Company is now involved in or becomes involved in during the term of your service to the Company, nor will you engage in any other activities that conflict with your obligations to the Company.</font></div><div style="line-height:130%;padding-bottom:10px;text-align:justify;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">If you decide to join the Board, it will be recommended at the time of your election as a member of the Board that the Company grant you a restricted stock unit award under our 2012 Equity Incentive Plan (the &#8220;</font><font style="font-family:inherit;font-size:11pt;text-decoration:underline;">2012 Plan</font><font style="font-family:inherit;font-size:11pt;">&#8221;) having a value equal to $1,000,000 (the &#8220;</font><font style="font-family:inherit;font-size:11pt;text-decoration:underline;">Award</font><font style="font-family:inherit;font-size:11pt;">&#8221;) in consideration for your service as a member of the Board consistent with our non-employee director compensation policy. The number of Award shares will be based on the average closing price of the Company&#8217;s common stock over the 30 calendar days prior to the 15</font><font style="font-family:inherit;font-size:11pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">th</sup></font><font style="font-family:inherit;font-size:11pt;">&#32;day of the month in which the grant occurs. The Award shares will vest over three years, with 1/3 of the shares subject to the Award grant vesting on the first anniversary of the grant date (which is expected to be April 20, 2019) and the remaining shares vesting equally over the next two years on a quarterly basis, subject to you continuing to serve as a Board member on each vesting date. The vesting of the Award will accelerate upon a Change in Control (as defined in the 2012 Plan).</font></div><div style="line-height:130%;padding-bottom:10px;text-align:justify;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">In addition to the Award, you will be eligible to receive annual restricted stock unit eq