Network Engines, Inc. Chief Technology Officer Employment and Compensation Letter to Kevin Murphy
This letter agreement between Network Engines, Inc. and Kevin Murphy outlines his promotion to Chief Technology Officer effective April 1, 2006. It details his new annual salary of $170,000, a $50,000 retention bonus paid over three years contingent on continued employment, eligibility for a $30,000 annual executive bonus based on performance, and a grant of 100,000 stock options pending board approval. The agreement confirms the company's support and expectations for his leadership role.
EXHIBIT 10.1
March 7, 2006
Mr. Kevin Murphy
233 Raymond Road
Marlborough, MA 01752
Dear Kevin,
I very much appreciated the time we were able to spend discussing the professional opportunity for you at Network Engines. Based on that discussion, I have outlined the opportunity I see for you, which I believe presents a challenging technical leadership position.
I would also add that many of the elements in this letter have been in discussion for several weeks with board members and at the executive level relative to your position and potential within the company. To that extent, this letter confirms the support you have in the organization for this position as well as the confidence the organization has in you.
Effective April 1, 2006, the following will take place:
| 1) | You will be promoted to Chief Technology Officer for Network Engines. |
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| 2) | Your base annual salary will be increased to $170,000. |
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| 3) | You will receive a $50,000 retention bonus, $20,000 of which will be payable on October 1, 2006, with the remainder payable in equal sums of $15,000 on April 1, 2007 and April 1, 2008 respectively. Payment of these retention bonuses will be contingent upon your continued employment with Network Engines through the payable dates. |
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| 4) | You will be eligible to participate in the 2006 Executive Bonus Program, and your incentive compensation will be targeted at $30,000 per annum conditional upon achieving specified corporate and individual goals. |
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| 5) | A stock option grant of 100,000 options will be made subject to approval by the Board of Directors at the upcoming March 15th Board Meeting. |
Kevin, I would very much like to have you on the executive staff and I hope in a very tangible way this letter reinforces the high regard we have for your ability and considerable contributions to the company. I sincerely look forward to you joining me in leading the organization forward.
Sincerely,
| /s/ Gregory A. Shortell |
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Gregory A. Shortell
President and CEO
Network Engines, Inc.
Accepted:
| /s/ Kevin Murphy |
| March 7, 2006 |
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| Kevin Murphy | Date | ||
