Sample Business Contracts

Employment Agreement - CacheFlow Inc. and Mike Johnson

Employment Forms

  • Employment Agreement. Employers can customize an employment agreement that states the salary, benefits, working hours and other important provisions for their new or existing employee.
  • Consulting Agreement. Answer simple questions to build a contract with a consultant. Specify the services rendered, when payment is due, as well as IP rights.
  • Commission Agreement. Employers who compensate their sales employees based on commissions can prepare an agreement to reduce misunderstandings by specifying the base salary and how commissions are calculated.
  • Executive Employment Agreement. Companies may offer their business executives a contract that is different from the one provided to their regular employees. Executive employment agreements may be more complex because the compensation structure may include a combination of salary and commissions, provide for bonuses based on sales, stock or other financial targets, and include non-compete, confidentiality and severance provisions.
  • Sales Representative Contract. Independent sales representatives offer companies the potential to increase the sale of products or services without the burden of increasing headcount. Both parties should understand how commissions are calculated, when commissions will be paid, as well as how the representative will treat confidential information from the company and whether the representative may also sell a competing line of products or services.
  • More Employment Agreements

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                           [LETTERHEAD OF CACHEFLOW]

June 4, 1999

Mr. Mike Johnson
2621 Covey Way
Livermore, CA 94550

Dear Mike:

I am pleased to extend to you an offer to join us as the Chief Financial
Officer, reporting to the President & CEO.

Per our conversation, I have structured a compensation package that consists of
five (5) primary components.  They are as follows:

 . You will receive an annual base salary of $170,000 paid according to standard
  company payroll policies.

 . You will be granted an option to purchase 155,500 shares of the Company's
  Common Stock, which represents 1% of the fully diluted capitalization of the
  Company, including all outstanding common and preferred stock, all outstanding
  options and warrants, and the pool reserved under the Company's option plan.
  The exercise price per share will be equal to the fair market value per share
  on the date the option is granted. You will vest in 25% of the option shares
  after 12 months of service, and the balance will vest in monthly installments
  over the next 36 months of service, as described in the applicable stock
  option agreement.

 . In the event of a Corporate Transaction involving the Company, in which you
  are not offered the same or similar position in the newly-combined entity, you
  will receive one year of acceleration on the vesting of your options.

 . You are eligible for all standard benefits according to the Company's benefits
  plan. Information on the benefits will be supplied to you as soon as possible.

 . Like all Company employees, you will be required, as a condition to your
  employment with the Company, to sign the Company's standard Proprietary
  Information and Inventions Agreement, a copy of which is enclosed.


Page 2

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

Your employment with the Company will be "at will," meaning that either you or
the Company will be entitled to terminate your employment at any time and for
any reason, with or without cause. Any contrary representations which may have
been made to you are superseded by this offer. This is the full and complete
agreement between you and the Company on this term. Although your job duties,
title, compensation and benefits, as well as the Company's personnel policies
and procedures, may change from time to time, the "at will" nature of your
employment may only be changed in an express written agreement signed by you and
the Company's President & CEO.

This letter and the enclosed Proprietary Information and Inventions Agreement
supersede any prior understandings or agreements, whether oral or written,
between you and the Company.  These documents may not be amended or modified
except by an express written agreement signed by you and the Company's President
& CEO.  The terms of this letter agreement and the resolution of any disputes
will be governed by California law.

This offer stands until the end of business on June 9, 1999, and your signature
below acknowledges your acceptance of these terms.

Best Regards,

/s/ Brian NeSmith                               /s/ Mike Johnson
_______________________                         ______________________
Brian NeSmith                                   Mike Johnson
Chief  Executive Officer
Cacheflow Inc.