L\l'l\ I:-C IS

Job Offcr Negotiation: Joc Tcch

and Robust Routers
Inlrodudioll
1hC,l'l'II:1I'I11Idr Ihis si/lllllallollls :llle¡!O(¡dlio/l ln'cr a ¡oh olh'l lh,II h:l' hL'l'/l c\1l'lIded
hv ,1 lechllIJloFY CPIIlP:IIIY tp all 1\/IBi\ sludcllt 11l',1Iill¡! gradll.llltH1. I hc had,!-,yolllld
1111'011\1;1111111
ílllroducl's 111l' prillcip:ds \11vulvL'll. n'l ap;, lll('lr ¡mpr n'\:I(¡PIISllIp. ;¡ml pn:-
S,:III, :1 del.llkd SUllllllillj \)1' lhe 1('lms or Ihe oller lhal Ih,' rlrll1 ha, L'\lelHkd In IhL'
,111.1,,"1 1'01 Ihe Ilq-',ollall,JIJ sill1uhllnll, you will he ass1l-'lll'd (II.lS"ItIlIl'lhL' n,le 01 ,'III1L'r
111\: sllllklll (11 a rL'11I'CsC/llalivc nI' Ihe hirillg l'Ol1lpallY, Thc rllle.play lufOI"lIl;lllnn Ihal
Yllllr Ul,,II[Io.'101l \Viii (hL'1I prllvilk givc" del;uls :lhlllllllll' "PI'L'Ii'ic uIlL'r(',\ls ilnd ohjl'CIII'C\
olll1c P:III:< In which ynn arc asslgucd.
111 111.111) ways. IIC)loliilliulIS ill)()ul joh oli'crs ,IIL' ¡u" likc <lny plher lIe)l0IiaI1t1u:
1';IIIII'S Iry In pmSllc IhclI owu ínlel'l'sl.\ whik kel'ping ;111e)c ou rchlliollship COIICl:rn\
¡¡ud ,\c,:kin~' arL'as (11' cOIl1Ulun glOullll Ihal lI1ighl alh\\v 111l:Ul 1(, hndg" cnlllpal,bk
iUIL'n"j-., 111plh<:r ways, ho\VcvL'r..inh nIkI' 1lL'¡.'pllalipl1s 111:1)'hl: pcrcL'il'ed as dj"lil1clil'c
hel';IUSC (11 IhL' slakc...
invnlh'd: Fur Ihc .Iuh sl'd,L'I. Ihcy illvoll'e IhL' IlL'gnliallol1 01' ,)lll'\
Pl'hllll;¡J l'irL'lIlIlSlallces. oi"lL'1I \l'llh au uppollclIl who 1" S(lllIl'"n,' you will have lu "li\T
wilhu 1111a day"lo d:l;.' h;lsis for \\'h:1I could hc a lotl~' 11111<.'(,1 "('lIll', i\S YOU IL:ad )'11111
role ,1If'orl11:lllolI :11111pI'Cp:II'L' rul' llw CIICOllllln, Ihink ,i!"'lIl 111)\\ Ihe p1ll"uil 01 .\'(111I'
f!(I;i!s l\'hL'lhL'1' Y\Jllarc ill (he n'iL' nI' lh,' hll'lll12 IÚII1 (Ir lhclOh "''l'killg sllldelll 111;\:<
nr shollld he arkeled hy (he ulliqul' cOllle\1 illl'oll'l'd Whl'lI (JlIl' " IIl'I!O(I:llillf! aholll
l~II1I'IOYIIIL'ul ,

Bad,grnund lnformatinn
loc Icd1. :1111'\'11\/\ slullelll ill lhe liual SCIIIl'slLT hdol\' ,!:radllall"lI. has au (lller Iscl'
Ol'ln I ,'11('1', helo\\') 1"'1'perlllallcul clllploYlllel11 rrolll I<ohllsl I<OIlIL'rs 0<1<), ami 111"
d.':hllim' !'ur aCl'cplillg Ihe (lllcl is 11(''\1\VL'ck, Joc spcnl 111<','"111111\'1hdUlL' hi... rlll.d )1:.11
iUII1\.' ;\IU \ pn'gralll workiug IÚr I<R ill!V1(1ulIl:1I11Vic\\'. (':dilplIlI;1. Ilis 110S\ dlll'lllg Ihe
',1I111IUL'rillknl...híp was l.ciFh nullclI];l. lhe pl'odllL'lIll¡UldgL~r r\lr 1,1<\ 11:t¡'ship PWdUll
a 111'11'lL:r.i!'11101lIel. L.:igh is lhe !11'rs(lu:l1 RI< \\'1111\l'hOlIl.l(ll' IVdl spL'ak 1(llIcgollall' Ih"
ICI IIIS ,,1'lile 01kr.

Economic and Industry Conditions

,\1 thL' 11111,'01' IhL' j(lh "Iln. lhe U.S. eC(lIII>IU)' ha, lewlnlolllollowing ,1 prolollgcd
IIP\WIII);, hOllolllic gll>wlh is ...iglllf'il'HlIlly lownlhall 11\I';IS .Ius! a L'oupk (11Yl':¡rSago.
'111L'J1li\nlllcw,> 1'01 MB¡\ SIUlkllts. hO\\'C'v'L'r,IS Ihal alll1pl1f!h tlll' lIlK'lnploymclIl r;ltí.'i,

\111/1""1 rtn~ -,UI\IILiIJPli wa' dc"dop\.'d hy JOlgL" 1'l'lIl'I./\luh (.i11I1H~tll.l;p:d :"lIlIth ~lIld lúh ! ~lIlIlIlH.~r 11f'
i"I;I!'!l',d ,lI1d 11-",""Ih'll' willl !1l'IIIlI",¡'IOII

.
 515

elcvaled, alld Ihe job markel fuI' I1l'W MBA graduales has remailled n:as\llIahl,\' ~In 'ng 111
rccl~11lyears, "Iradilional" MBA cmployers ~\ldl as hal1ks ami con~lIltlllg l'irllls havl' kit
pressure lo COl1llWlc \Vilh aggrl's...ive ICdllh)logy clllllpanil'''' rCl:I'nilill).! 10(1 \1B,\
prospeds with pOlenlially InCJ'atiw sIlJCI-..lI(Jtlons. r-.lon: recenlly, 111l'...Iod, llIarKel ell-
lered a period 01' high lurbulenl.'c, dampcning Ihc oUllook 1"01'sllIaller lel'hllolllgy lirm",
EvclI Ihe lIIosl pl'Ol1Iising amI prolilablc ledl ('lllnpanieo; ha\t' seell thl~ir ~hare pl'll'es
l:OIIlC under pressure, COl1lpanies like RR, which lI1akc IlIternel "h:u.:khol1e" l'qlll(JII1l'1I1.
l'n exlended
operale wilh cXlraoruinary prolil rnargills, anu yd evell lheir :-ohares h¡,!\'e lallell.
hackgronnd
.Iusllasl wt~ek, howevcr, Ihere \\11...a n:houllu in lel:h ~harl' prices, 111pan dll\.' (o Ihe
lir, and pn:-
resoluliulI 01"a slrike al Ilon/,oll ('omlllnl1inllions, Hori/,ol1 ...dlled ils lahur di~pllll' all\l
'l1dcd lo Ihl~
reaninned ils commillllcl1llocapilal spendillg, whid, \\':\11 Slreel allalys,," had prl'dicled
ule 01' eilher
\\'lInlu slow o\'t'r Ihe IIcxl Iwo years. Thal poll'nlial slowdmvn \\ \lldd h;l\'l' l'roded Lhe
mal ion Ihal
slock valualiolls 01' nelworK illrrastnll:lure nHlIlul"aclurers ill gelleral, al1(IIII,II1el k'adcr
d oh.ll'cl ives
RR in particular. No\\' Ilori/.un has reaflinlll'd ilo; capital l'\pelldilnlc plall~ ,lI1d .111-
IIlIunced a mlllliyear purchasl' 01' RR's high.-end lerahit rnnler~
nc)!.olialion:
\lp l'Ol1l:CrlIS
Company Background
1'11111 p~1 ti h le

~ dl:-Olinctive Rohnsl Rmllers (RR) was slartcd hy several ellk'rprisin).! graduate hnSllle~o;...!UdCIII'\\ h(\
iOIl 01' onc 's had hclpcd Iheir unh'l~rsily lit' ils t:olllpnlcr lah mat:hincs Iogclhcr into a local are;\
lave lo "Iive nelwork. Anlicipaling a markcl rol' lIetworkillg devit:es, Ilw Iwo horruwcd IlIIInl'Y11'(\111
'11read your friemls alld ramily, maxcd oUllheir crt'diL t:ards, ami slarted a l'lllnpallY Iwo )'ear... lall'r
~lIil or vour Ihe}' s\lld Ihcir lirsl ncl\\'ork ronler,
,Ilknl-may Originally largeling uni"ersiLics, RR hy Iht' lale I\NOs had l'xpambl ih IlIarkellll¡.!
ialin¡! ahouI lo indndc largc allllmcdium izeu t:orporaliolls. A~ an ead)' player \\ iLha prm ell Ir;lck
rCt:ord, RR halla hcad slart when Ihc IlIarkcL IÚr nClwork n.luk'r... 10\IKulT ill Ihe l'arly
19LJ()s.RR 's o;:lIeslepl rrom $1 milliun in Il)LJ.'lo $~'O million in ~()O(). Ihe l'\llIIpall~
wl'nl pnblit: In 2()()1. Sinl:e Ihen, RR has acquircd ...ever:d niche plaYl'rs In Ihe 111.1rkt'l
and cUlTently has a markcl capilalizalion ur $12() billion, a si).!lIillcant aCl'lIl11pli...llIlIl'nt
111oller lser rol' a company ils agc,
~R). ami lhe Tht' t:om)Julcr hardware ndworking induo;lry t:onsisl~ 01 cumpallle~ de~igllil1g.
1Í~I"inalyear dcwluping, alld manllracLuring prudul:IS Ihal pn'vidc l.'onlleclivity sulUliulIs IÚr nH\llill~C
,~ dminl,! Ihe compuling cnvironmellls, local arca networks, ~lI\dwide arca nclworKs. 1\\:1\\'1111har.!
Ip produel-- \\'arc prnducls indude PC cards, ronlers, huhs, rellulle accc,,'> ~erver~. ~will'ill'S, alld
legol iate Ihe adaplers. At Ihe lime 01'Joe Tech's joh oller, RR conlrol:-. more IlIan IW\Hhirdo; ullhe
globalmarket ami ol1"crsthe induslry's broadcst range ur (JlOdUd...nscd lo forlll infur
mation nelworks alld power Ihe IlIlt'rne\.
RR sdls in approximatl'ly 75 counlril.'s Ihrullgh a Jiret:1 ...aks torce. dí~lrihIHur~,
valnc-added resellers, and ...yslel11inlegralors. RR contilluc" lo pnrcha...e eOlllpanie... al a
a prolonged
frclI/Íl'd pacc-il has Ilwde dosc lu I() acqni...ilions pcr year during Ihe la...1 1\VO}'ears, RR
11'year:-o ago,
scrves l'uslomers ill Ihrcl' largel lIIarkcls: (1) t'lIlcrprise large org:mi/alion \\ IIh cOln-
,mel1l rale is
pkx IIcl\Vurkillg needs, induuing corporations. govcrllmel1l :Igellcies, nlililic~. ami ednl:;!-
liollal in.stilnliolls; (2) service providcro; lirm...pruvidillg infol'lllalion ...elvÍl:c includillg
Iclet:I1I11Il1Unicalioll...l.'arrier~, InIl;rne1 ~en'Íl:c pruviders, t:ahlc cl1mpanie,>, alld wirclc...:-o
cOlllmuniGltíoll providt'rs; ami ()) small/medinlll husines.sc.\ -lirnh wilh a need 'i>r d;!ta
IIl'(worb 01' Iheir UWIl, as well as COllllcclion lo Ihe Il1Ic'rllI:1ami/m 111hu.sin,'.~~ parll1l'r~.
 Joe Tech's Internsl1ip Experience at RR
.lo,.' l\<1rkl.d al RR dmin).! Ihl' ,UlI1l1ll'r hcl\Vl'CII l1i, li, 1 ;1IId '''l\\IHI )l.;lr 01 ~~radlldt'.
".;),,,,1. I le \Vd'" lorllllwll' 1011;1\'1' ",'('III'l'd :111inh'rn...l\lp ;11Ihc k;lIlill!' rolltU l'Olllp,\\1\'
hCl':,II...1' 111\'Yd'II1'1 lIormally rCl'Olil fl'ltJ11hi, "l'i1l.01 Ile' "ll\lI;I,'ll'" ;111,dUIIIIHI... \\l1n
\'''Ih'd 1"11'Ilol'\/nll (Ol1l' ni tU~' 1a qlC 1 l'USlnllll'rs). ,\'1111plll 1111111111"lIdl "ilb ,1
111\'lId ;lll<R, .IPl' :Ind ll'i~bl\lI"l'1I1:1 h;1 ¡I olT fl'lHII lhl' II1I\I:d l'\l'l1all!:~'t' ld'l,.\11ai"- ilml
alll'l ,\ 1";1'1 \1';11'1..'l'\ il" 111 tl'kpl1l'lIl' illllT\'IC\\", .Ioc h,lIl 111' IlIll'III,I\lp ,cl up for ti\('
,1I\l1I\ICI
I.l'I))1 l~lIl"'III:I hq~;111 \Il)\'kin~ ,11 RR ,'ighl yl.ar :I,!!l\. whcn Ihl' "Ol1lpallY 10')" 1111'
!..el .111\1rcally "":~:111\0 11uII a\Vay 11\)\11 11" ,'o\l1pClill,\n,
11):11 Sl1l' \\a' 11\Ih,' rI~l1t plan'
;11\1\1' li~~hllll1h' 1<1\ I¡;¡d propri,'lary Il'l'\IIW\0I!Y Ih;11pr"1111S1'd\" 1,'\ollllj('I1I/e Ihc Iclc
l'(\III Imll1',lry. and I.l'il!ll had dri\('. ;\lllhilioll. ami brailh. !.,'igll IW'C 111r1\\I~hIlIc 1';11\1..,
di RR qui,'kl:-, wor"lIlg 111 po...illlln, il1 :11,' Illar"t:l\llg. 1\I:lIllIldl'lIlnl1~. ;\111\ I1U IIIC"
dl'veh)plIIl'1\1 .lcli,.llic i\ pro\\'11 pl'rll\rlllel'. I.ci)!h ha, IK"'11 :1"'1!~m'd lo pi\'o\;d :111\1
\il;1I rol," willlll1 RR dUI';l1g h,'1' 1<:l1url'. RR ha~, idellliri,'d pr,)dllll 111:1I1:1~~l'lncIII
ulll1,
1Il'\\' 1<'1:1"11ruulcr :1';:1prioril)' rUIIl'liul1.al1\lll1\' CL<) P,', )I1.III: Illacl'lll.l'íL'h ¡lililí,
Cl'lIci;d role,
\\'h('1I he lallde" Il1l' "UI1I1I1,:riI11"l'Il'hip. .1I1C<:\pn' "',d all Il1tl'l'l 1 111wnr\..il1:o'In
"lI~II1l'''''''''dl'vdoplllellt. Ilowel','r. IK.'.all c I1c did nol l'111,'"RR 111\'l\llgl11I'"\IIII,,n:1I
ll'lTUiIUlt! challnci'. lrul11 a lOp fiVl' j\'1B.\ !'\'l»)!r:ul1.ll1e l>u..il1(,'" dl'\dopl11,'nllnlclw,lIlp'
\VI're ;dn'ady lilled I'her(' IVl'rl' 50 !\'IBA il11l'1'l1 \\'nr"il1~ ;11IÜ:' I.I\l'r 11". ~\lllIl11el'. 1'11,)
\\<.'1,' ,pr('ad out :\IIHIII¡1 1i1:lI"Clill~. ,Ir:lll'gll' alli:lIll'l' ledlllicll dcwll\plllCIlt. 1\\I~ille,\
,\n ,,'Ii'PllI('lIl. ln.a llI.y. and cnrpnrak' IlIar",:I illg. .!t,,' wllr\"l.d \ '11 pn ,dllel IlIall,lgi:111l'nl
1111 t .ciFh durin)! 111,' 1I111111l'l'.TI1,: illlcl'll hip l'\P\ISl'd .lile \\1 ",'lIior nlallagl:lllel11 ;lIld
dillt'lTIII jlrl\UP" wllhill lile l'\1I11paIlY. 1IIl'll1din~ 111l' hll II1\.'.' di'\(:II>I1I11(,1I1 );IIIUp 101'
wlllch .Iue Imped lo \Vol''' alll'1 cOl11plding h... IVIBi\. BU III'." dcvdopllll'III 11I:lIlIlailled
;111 !..cy "I"'lIh' ' rl'lalioll"híp, al RR alld \\';¡~ cOI1S1delcd IIIIC ..1111<.' pn'CI\11i\CIIIIÚlIlIIOIl\
"i1l1ll1 Ihe fi,.lI1. .lile Icn:i\l'd an'ol:l\ll'" 11'111\1 ver) ""111111' 1.'\l'c\lIi\\', ,'11 hi.. lI\lelllal

I'I'HllIl'l l\rc cl1t.lli,111~ ur III\' ler;lhil ruullT

I hc 111I\'J'I1,lIip l:lIdcd UI1 ,1 hitJI l10le rUI lhl' 1:"IIIP:lIl> "lid 1111 .IIIC 'lcd1. I{I{
Il'\'L'll'i'\I ,Ul old\'r "1'01\1Iluli/1111 for il.. Il'rahll rollll'r. alld .It\l' ICI.".'I\cd "" ui'kr ktler
flUl1I L{R. '\ hc lI\ll'l' ('¡¡I11C 11'0111Lei¡;.h BulI,:1I1:I pnnlll(,\ 1\1;.\II;q~I.'IIICIII gll1Up. lIollhe
'".
I '1
hu IIll'..~ lkvelopnlelll group .Ine \\a' lar~Glil1g. \ III\\"el"r. ,,)11 :I<;<;ígl1ll1l'IIh al RR
I , ,'l1al1(:'l'd rrl'qlll'nlly. Alll1l' l'I\t1 ,,1 Ihe :-.UIII11ll'Ll.cl!.~h a llrl'll ,1m.' 111;11 if l1í,<.1111,'11',1
l' lrldy lay \\'1111 hu llw<;<; de\,,'loplll,~nl. all h(.' had lo do 11':1:-'11"1'11'1'111\1'l'11 \\'llhll1 pr()d-
1,1 I1cl 111anag..l11cl11 ami h(.' LOllld IVrlIl' hi, 11\\ n tlckel IIlll'm;llIy 1."lgll l1..r,tli' hall per-
I lorlllcd \Vdllll Iwr ¡nill<ll ¡uh :\S igIl1l1l.1I1wilhiI11'U<. ;llId .."I1""'I'IClllly foul1d ¡leN:lf
l'. 1. ('lIl1rtl'd b)' ('\I'Cuti" frol\1 ,,(.'\'eral dirkrl'l1l illle\'l1<\1 g\'l\Up:-' \Vh" \\;Ullcd hl'l 1>11111",1'
I ' 1(' .1111",
'1
i, ,¡, i\llhollFh Ih,' p.-rlllam'nljob nlk,. W;I', ICllllcr,.¡j 11:ll k 111.\Ilg" \ al Ihe t'1111c1u-
,¡nll ,,1' 11\l' ¡lIlel n hip. RR told .lile Iha) lhe nfkr \lo"ld rl'IIWII\ a"adable lIlIlÍl
1 ;1 ~1;",'h l. '1 he pccilic Il'1'lI1 Id' Ilw ulkr ;l1i' ~ho\\'11 111Ih,' ldÚ'r kller. Nllw ill~
lI :1
""111'1I<11)' 2(), and .1\1\: has arr;lllgl'\\ )0 p'.aL wilh I.c'¡gh 1(1di CIl~, Ih,' olkr hdOl~
111aLlIlg;I,k'ci 11nl.
11,

I \

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 -.,T
.
.
.>,"

t .I"h OOl'l Nl'glllialuHI: J.". 1'Th allll Ruhu\' l{"lItl'r\ ;;17

1 ..'

OHer Letter
---
lIale
Robust Roulers. Inc.
)any
Onc Robusl Cenl(H
who
555 Silicon Way
¡Ih a Mountain View. CA 94201
and
rlhe Augusl25,2009
Joe Tech
k Ihe 401 Owon Way
llace Nashvillc. TN 37220
lele- Dcar .Joe,
'anks
On behalf 01 Robusl Routars. Ine., I am delighted lo confirm our olfor lo you 01the posltion 01
iIIl'SS Assoclate Producl Manager. Your appointment will be elfective June 1, 201 U. Tlle spccihes 01
I ami Ihis otter are as follows:
Ir Ihe
Posilio,,: Assoclale Product Manager, Terabit Roulor Group
11Ihis
Salmy: Slarting salary will be $88,000 annually, paid monlhly.
ng In
Signing bonus: You will recei,ve a signlng bonus 01 $15.000. pald as a lump sum wlthin 30
lional days alter you accepl Ihe oller in wriling.
Iships
They Oplions: You will receive 1.000 stock options at a slrike pllce equallo Ihe share price 01 Rn
"incss
.
on Ihe dale 01 emptoyment. Additionally. you wllIbe eligible lo recelve a mlnn1llnn qranl 01
'.....' ) .
500 incentive oplions alter your lirst year 01 employmenl. and on each subsequenl employ.
~menl
11 alld
.Ip rOl'
tained
el ion s
~

,
>? '
.
;1.1,".

"~r
... ..
...
,
...

~
ment anniversary, provided your pertOlmance lully meels expoctrllions and thal you are i:HI
active employee on (he subsequent grant date. The stnke price 101these OpltOns ISsel by
company managemenl and ratilied by lile board 01 directors annuaUy, Options ve!>tover a
three-year poriod (33.3% por year).

Bencfits: Robusl Roulers provides a cornprehellsive benefit plan lo its employees. You wllI
Ilernal be entitled lo Ihe benelils delailed in the applicnble plan doclIment in eflecl <11the lime YOIl
join the company. Currenl benehts include heallh insurance. basic lile insurnnce, dependent
h. RR life insurance, long-term dlsabihly coverage, and immediate participation in Robusl Rouler's
malched saving s plan 1m retiremenl. The Humfln Resources Depar1menl wil/ senel (Jetalls on
letter
these benetils, along wilh specifics regarding paid sick lonve. vacallon leave, and holiday
101111l' leavo. under separate cover.
al RR
nleresl RelocatlOn. You will receive a lurnp sum cash paymonl 01 55.000 lo help delray cxpenses
associated with moving lo Silicon Valley Upon acceplDnce 01 our ofler. you wil/ rccelve él
I prod- relocation handbook. which will provide delailed inslruchons regarding relocal/on hene!it:>
Id per- and inlorrnalion on the local area providod by several real esta le IlIms
hersclf
In Iheir ;-;. Robust Roulers is offerillgyou a position with Ihe undorslanding that you are nol a pmty
lo a wrillen agreement conlainíng either a noncompete m nonsolicilallOnclause Our
corporation conducts routine employment checks on prospective employees. Your
'onclll-
e IInti I
",'jl is
~,~, '.B.,
employrnenl is contingenl upon the successlul complehon and srllisfactory rcsults 01
Ihese checks.
~
This altor remains In lorce unlil March I 2010 If you choose lo accepl the olfer. piease 51gn
bdorc ;ti ' .ii
:..~ and relurn a copy 01 Ihis olfer leller on or before that dale. Should you havo any questions,

I
~

.
. .
,,'
'11' ~ .:
, the approprirlle point 01conlact is tho hiring manager, Leigh Bullema
.

.jj¡ . . ...
..

- -
We are impressed wílh YOUlb:lCkground and c)(pmience, i1nd we look lorward lo havin4 you
10m 1he Robusl Rouler lea m In June.

Slncerely.

Keilh Hernandcz
Managlng Olleclor
Producl Managemenl Group

ec' L8Igh Bullema

HUll1anHesoulces

, )" (!

1(\,(1 ('1 ,~'i