{"id":39597,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/employment-agreement-storage-technology-corp-and-gregory-a.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"employment-agreement-storage-technology-corp-and-gregory-a","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/compensation\/employment-agreement-storage-technology-corp-and-gregory-a.html","title":{"rendered":"Employment Agreement &#8211; Storage Technology Corp. and Gregory A. Tymm"},"content":{"rendered":"<pre>\n                                            February 27, 1987\n\n\n\nMr. Gregory A. Tymm\nStorage Technology Corporation\nLouisville, Colorado  80028\n\nDear Greg:\n         The purpose of this letter is to set forth the\ncompensation arrangement that will govern your employment with\nStorage Technology Corporation (the 'Company') until that\nemployment terminates or until your compensation arrangement\nchanges.  This letter (the 'Letter') is not intended to change in\nany way your employment relationship with the Company, which has\nbeen and will continue to be 'at will' under a general hiring for\nan indefinite term, terminable at any time by either the Company\nor you with or without cause, under an oral employment arrangement. \nSet forth below are the principal elements of your compensation:\n         1.   Base Compensation.  For your services, the Company\nwill pay you a base salary, at an annual rate, effective January 1,\n1987, of $120,000 per year.  Such salary shall be payable in\ninstallments in accordance with the regular payroll policies of the\nCompany in effect from time to time during your employment by the\nCompany.  The amount of your base salary may be adjusted from time\nto time during your employment.\n         2.   Bonuses.\n              (a)  MBO Bonus Program.  The Company currently\nmaintains a Management By Objective Bonus Program (the 'MBO\nProgram').  During 1987, you shall be eligible for such bonuses in\naccordance with the MBO Program as may be established from time to\ntime by the Company's Board of Directors (the 'Board').  Any such\npayments under the MBO Program shall be made in accordance with the\nprovisions, and under the conditions contained in, the MBO Program\nand the terms of any bonus award authorized for you by the Board. \nFor 1987, the Board has established an On Plan Bonus potential for\nyou of 30% of your base salary.\n              (b)  Reorganization Bonus.  Effective on the date a\nPlan of Reorganization is confirmed under Chapter 11 of the\nBankruptcy Code ('Reorganization Date'), you shall be paid a cash\nbonus in the amount of $45,000.\n         3.   Stock Options.\n              (a)  Previously Granted Option.  Pursuant to that\ncertain letter from the Company to you dated May 15, 1985 (the\n'Prior Letter'), you were granted certain options (the 'Prior\nOptions') to acquire voting shares of common stock of the Company\n('Common Stock').  A portion of the Prior Options is to become\neffective as of the Reorganization Date (the 'First Reorganization\nOption').  The grant of the Prior Option  in accordance with the\nPrior Letter shall continue in full force and effect in accordance\nwith the provisions of such grant, except as modified herein.\n              (b)  Reorganization Option.  On the Reorganization\nDate, if the Company is successfully reorganized and a Plan of\nReorganization is confirmed, the Company will grant you an\nadditional option (the 'Second Reorganization Option') for the\npurchase of 30,000 shares of Common Stock.\n              (c)  Exercise Price - Vesting.   The exercise price\nfor both the First Reorganization Option and the Second\nReorganization Option (collectively, the 'Reorganization Options')\nshall be equal to the lowest final closing price of the Common\nStock on the New York Stock Exchange during the period commencing\non the Reorganization Date and ending 60 calendar days thereafter. \nFor purposes of this Letter, if the Common Stock is not then listed\non the New York Stock Exchange, the applicable closing price shall\nbe the closing price on any other national securities exchange on\nwhich the Common Stock is listed or, if not so listed, the closing\nprice as reported by NASDAQ in the National Market System.  The\nSecond Reorganization Option shall be exercisable as follows:  one-\nthird of the number of shares covered by such Option shall be\nexercisable one year from the Reorganization Date, one-third shall\nbe exercisable two years from the Reorganization Date, and the\nremaining one-third shall be exercisable three  years from the\nReorganization Date.  Shares as to which the right of exercise have\nvested are hereinafter referred to as 'Vested Shares'.\n         4.   Termination of Employment.\n              (a)  Termination Without Cause.  If the Company\nelects to terminate your employment without 'cause' (as that term\nis defined in subparagraph 4(c)), or if you should die, without\ncause existing at such time, you shall be entitled to receive, as\na severance payment, a payment equal to the sum of your then\ncurrent rate of annual base compensation for one full calendar year\nand 100% of your bonus amount under the MBO Program for the year\nof termination.   Such amount shall be paid to you in a cash lump\nsum within thirty days after your termination of employment\npursuant to this subparagraph 4(a).\n              (b)  Termination in the Event of Sale, Merger or \nChange of Control.  If, during your employment, the Company is\nsold, or merged with or into another company (in a transaction in\nwhich the Company is not the surviving entity), or all or\nsubstantially all of the assets of the Company are sold, or more\nthan 25% of the outstanding voting capital stock of the Company is\nacquired by another person or persons (as such term is used in\nSections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934)\nacting as a group, excepting stock issued to creditors of the\nCompany under a Plan of Reorganization, you shall have the right\nto terminate your employment by written notice to the Company,\ngiven within  six months after the date of any such event, and upon\nsuch termination the Company will pay you an amount equal to the\nsum of your then current rate of annual base compensation for one\nfull calendar year and 100% of your then current bonus amount\npursuant to the MBO Program.  The amount payable pursuant to this\nsubparagraph shall be paid in a cash lump sum within 30 days after\nyour termination of employment or, at your option, over such period\nof time as you shall determine.\n              (c)  Termination for Cause.  If the Company elects\nto terminate your employment for cause (as that term is defined\nbelow), your employment will terminate on the date fixed for\ntermination by the Company, and thereafter the Company will not be\nobligated to pay you any additional compensation, whether in the\nway of base compensation, bonus or otherwise, other than the\ncompensation due and owing through the date of termination. \n'Cause,' for purposes of this Agreement, shall mean any of the\nfollowing:  (i) willful breach by you of any provision of this\nAgreement; (ii) gross negligence or dishonesty in the performance\nof your duties hereunder; (iii) engaging in conduct or activities\nor holding any position that materially conflicts with the interest\nof, or materially interferes with your duties owed to, the Company;\n(iv) engaging in conduct which is materially  detrimental to the\nbusiness of the Company; or (v) any intentional violation of\nCompany policies applicable to employees of your position with the\nCompany.\n                             Very truly yours,\n\n                             STORAGE TECHNOLOGY CORPORATION\n\n\n                             By:  \/s\/ Ryal R. Poppa             \n                                  ------------------------------\n                                  Ryal R. Poppa, Chairman and\n                                  Chief Executive Officer\n\n<\/pre>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[8959],"corporate_contracts_industries":[9508],"corporate_contracts_types":[9539,9544],"class_list":["post-39597","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-storage-technology-corp","corporate_contracts_industries-technology__hardware","corporate_contracts_types-compensation","corporate_contracts_types-compensation__employment"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts\/39597","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate_contracts"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=39597"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=39597"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=39597"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=39597"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}