Chief Financial Officer Employment Agreement

EXHIBIT 10.13


March 29, 2004


Mr. Stuart Fuhlendorf


Dear Stu:


It gives me great pleasure to offer you the position of Chief Financial Officer and Vice President of Finance for Isilon Systems, Inc. ("Isilon" or the "Company"). We believe that you will add substantially to the team and contribute greatly to the ultimate success of the Company by providing Isilon with the same extraordinary leadership that you have demonstrated throughout your career. The Board of Directors, the existing Isilon team and I look forward to you joining the Company and helping us build Isilon into one of the most important companies driving the next generation of storage solutions.


We understand and appreciate the nature of the commitment you are making to join Isilon, and we want you to do so with great confidence. You have the qualities that distinguish successful executives: leadership, high integrity, intelligence, action-oriented, and a desire to make a difference. We are extremely enthusiastic about your acceptance of this offer.


The Company is pleased to offer you employment on the following terms:


POSITION


You will become Chief Financial Officer and Vice President of Finance of the Company, working out of the Company's headquarters office in Seattle, Washington. You will report to the President and Chief Executive Officer. By signing this letter agreement, you confirm to the Company that you have no contractual commitments or other legal obligations that would prohibit you from performing your duties for the Company.


START DATE


Subject to fulfillment of any condition imposed by this letter agreement, you will begin this new position with the Company at a mutually agreed upon date. The Company would like you to begin your employment at Isilon no later than April 26, 2004.


PROOF OF RIGHT TO WORK


This offer of employment is contingent upon you presenting, in accordance with applicable law, verification of your identity and your legal right to work in the United States. In the event that you do not possess, or are unable to obtain authorization to accept employment in the United States, our offer of employment is withdrawn.


COMPENSATION


- BASE SALARY. You will be paid a monthly salary of $12,500, which is
equivalent to $150,000 on an annual basis. Your salary will be payable
in twenty-six equal payments, one payment every two weeks, pursuant to
the Company's regular payroll policy and will be subject to applicable
withholding taxes.


- BONUS. Upon the successful achievement of mutually agreed upon
Management by Objectives (MBOs), you will receive a quarterly bonus of
$5,000. Your annual salary plus target bonuses will total annual OTE
of $170,000. These bonuses will be paid quarterly following each
quarter in which the mutually agreed upon MBOs are achieved.


STOCK OPTIONS


- INITIAL OPTION GRANT. In connection with the commencement of your
employment, the Company will recommend that the Board of Directors
grant you an option to purchase 700,000 shares (approximately 0.7% of
the fully-diluted shares post-series C financing) of the Company's
Common Stock with an exercise price equal ...