VeriSign Inc. Contracts
Sample Business Contracts
Employment Agreement - VeriSign Inc. and Stratton D. Sclavos
Employment Forms
- Employers can customize an employment agreement that states the salary, benefits, working hours and other important provisions for their new or existing employee.
- Answer simple questions to build a contract with a consultant. Specify the services rendered, when payment is due, as well as IP rights.
- 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.
- 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.
- 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
VERISIGN, INC. 100 Marine Parkway Redwood Shores, CA 94065 September __, 1995 Mr. Stratton D. Sclavos [Address] Dear Stratton: VeriSign, Inc. wishes to amend the terms on which you are employed by the company. Those terms were set forth in a letter to you dated June 12, 1995, which you accepted on June 15, 1995. First, your base salary will be increased, retroactive to July 13, 1995, your first day of employment, from $125,000 annually to $175,000 annually. Second, your potential Bonus, which will be payable at the discretion of the Compensation Committee based on objectives to approved by that committee, will be decreased from $75,000 per year to $50,000 per year. For your first year of service, you will be eligible for $25,000 on or before December 31, 1995, based on meeting objectives set by the Compensation Committee. You will be eligible for an additional $25,000, at the discretion of the Compensation Committee, on the first anniversary of your employment. If these changes are acceptable to you, please sign below. Sincerely, /s/ Jim Bidzos Jim Bidzos Chairman, Board of Directors Accepted: /s/ Stratton D. Sclavos ------------------------------- Stratton D. Sclavos 10/4/95 ------------------------------- Date <PAGE> VERISIGN, INC. 100 Marine Parkway Redwood Shores, CA 94065 June 12, 1995 VIA FACSIMILE Mr. Stratton D. Sclavos 14865 Andrew Ct. Saratoga, CA 95070 Dear Stratton: We are delighted to provide in writing the offer we discussed over the weekend. The details of the offer are as follows: Title: President, Chief Executive Officer, Director Base salary: $125,000 annually Bonus: $75,000 per year, based on objectives to be approved by the Compensation Committee Stock options: Options to purchase 616,000 shares of Common Stock in the Company at the price of 12 cents per share, expiring seven years from the date of grant. This non-transferable option is subject to vesting over four years, with a one year cliff and even quarterly vesting thereafter as long as you serve as CEO. In the event the Company is sold (marked by a transfer of substantially all of its assets or control) the stock option would immediately vest in full. In addition, you will be guaranteed the right to participate in all equity rounds (other than an IPO or a sale) to protect your equity position in the Company for as long as you serve as CEO. Benefits: Your medical and insurance benefits will be commensurate with those of other employees. The full package of benefits has yet to be decided, but will be based on similarly capitalized ventures in Silicon Valley. Starting Date: July 6, 1995. Employee Agreements: You will agree to sign an agreement with the Company that (1) restricts you, at the Company's option, should you ever be terminated, from competing against the Company for up to one year from termination; if the Company exercises this option, or some portion thereof, (e.g. for six months), then the Company will pay your salary for that period, minus any other compensation you receive during that time for employment in non-competitive businesses; (ii) restricts you from ever <PAGE> disclosing any confidential or proprietary information that you may receive in your capacity as an officer and director, other than what is necessary for conducting the due course of business while employed at VeriSign; and (iii) names the Company as transfer agent for any sale of your Common Stock to a third party prior to an IPO, and gives the right of first refusal on your stock to the Preferred shareholders and RSA Date Security, Inc. on an as-converted pro rata basis. Other: You will receive payment, within seven days of your start date, of $45,000, in the form of a loan, which will be forgiven after one year of employment. If, for any reason, your employment terminates before one year, the company may recover this payment from you. For your information, your stock option grant represents 12.98% per cent of the outstanding shares prior to the Preferred A financing, 6.16% of the post-financing shares outstanding and issued, and 5.5% of all shares on a fully diluted basis, including shares reserved and unissued for future hires and strategic partners. We look forward to succeeding together at VeriSign! Sincerely, /s/ Jim Bidzos /s/ JB for D.C Jim Bidzos David Cowan Director Director DJB:ca Accepted: /s/ Stratton D. Sclavos ----------------------- Stratton D. Sclavos 6/15/95 ---------- Date