{"id":39598,"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-james-l.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"employment-agreement-storage-technology-corp-and-james-l","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/compensation\/employment-agreement-storage-technology-corp-and-james-l.html","title":{"rendered":"Employment Agreement &#8211; Storage Technology Corp. and James L. Bartlett"},"content":{"rendered":"<pre>May 3, 1999\n\n\nMr. James L. Bartlett\n709 Sandown Place\nRaleigh, North Carolina  27615\n\n\nDear Jim,\n\nThis letter is to extend to you the position of Corporate Vice President and\nChief Marketing Officer for Storage Technology Corporation, reporting directly\nto Victor Perez, Executive Vice President and Chief Operating Officer. This\nassignment is an officer position. The compensation and benefit package being\noffered with this corporate officer position is outlined below. It is subject to\napproval of the Board of Directors.\n\nYour annual base salary will be $225,000. You will be considered for a merit\nincrease effective January 2000. You will be eligible to participate in the\nStorageTek MBO Plan. For 1999, your MBO target incentive will be 40% of your\nbase salary at the target level of performance, 80% at the stretch level, and\n100% at the ultra stretch level. This MBO incentive plan is measured on\ncorporate performance and achievement of the MBO goals shared by all the\ncorporate officers. The MBO plan has, in addition, a shareholder value add (SVA)\ncomponent which, if achieved, will add another 50% of the incentive amount\nalready earned from the basic MBO plan. A portion, 25%, of any MBO bonus will be\npaid in the form of equity, including shares of common stock, or common stock\nequivalents, as will the entire SVA component. The details of this plan are\ncontained in a separate MBO document. For 1999, you will be guaranteed a bonus\nat the target level of performance. The annual target amount of $100,000 will be\nprorated from your start date.\n\nIn the event that your current employer does not allow you to exercise vested\nstock, which you have not exercised, StorageTek will provide you with a loan in\nthe principal amount of up to $500,000 to cover the lost value of these shares.\nStorageTek will forgive this loan plus imputed interest income on the third\nanniversary date of your employment. The imputed interest income will be grossed\nup for the tax on the interest. If you leave StorageTek voluntarily, or\nStorageTek terminates your employment for cause, at any time during the term of\nthe loan, you will be responsible for repayment of the loan.\n\nAlso subject to the approval of the Board of Directors, you will receive an\nadditional 2,500 shares of restricted stock at par value, $0.10 per share, at\nthe next meeting following your date of employment. The restrictions on these\n2,500 shares will lapse in increments of 55%, 35%, and 10% on each of the first\nthree anniversaries of the date of grant.\n\nFurther, subject to the approval of the Board of Directors, StorageTek will\ngrant to you an option to purchase 30,200 shares of StorageTek common stock, at\na price to be determined on the day the option is granted. The option will be\ngranted pursuant to the terms and conditions of the Company's 1995 Equity\nParticipation Plan. The option will vest shares in increments of 55%, 35%, and\n10% on the first through the third anniversaries of the grant. The 1995 plan\nincludes provisions that require the employee to\n\nRevised May 25, 1999\n\n\n   2\n\n\nMr. Jim Bartlett\nOffer Letter\nMay 3, 1999\nPage 2\n\n\nsurrender certain stock and gains realized upon the sale of stock during a\nperiod covering six months prior to or after termination.\n\nSubject to the approval of the Board of Directors and then current market\nconditions, you may participate in the annual Long-Term Incentive Stock Option\nPlan. The current allocation model projects an annual options grant, to be\nallocated in February, 2000, of approximately 28,000 shares.\n\nAs a corporate officer, you are expected to comply with the Corporate Officer\nOwnership Guideline for corporate vice presidents, which is 2,500 shares. You\nhave three (3) years to accumulate the shares. You need to retain ownership of\n2,500 shares or common stock equivalent, during the course of your employment to\ncomply with the Corporate Officer Ownership Guideline.\n\nStorageTek offers a deferred compensation program. Under this program you may\ndefer up to 50% of your base salary and 75% of your bonus amount. Your deferred\nincome is credited with an interest rate equal to the ten-year T-Bill rate plus\n2.5 points. You will be provided further information regarding this program.\n\nYou are also eligible to participate in the StorageTek Profit Sharing and Thrift\nPlan (401(k) plan), which includes a corporate match of up to 3% of your base\nsalary and a provision for profit sharing up to 3.5% of base salary. The profit\nshare contribution is contingent on StorageTek's net income performance. Any\nexcess from the match and profit share above the ERISA limits will be made to\nthe deferred compensation program, should you so elect. This 3% match is made as\n50% of the first 6% of employee contributions.\n\nAlso, the Executive Life Insurance plan provides universal life insurance\ncoverage at approximately three times your annual base salary less $50,000 group\nterm life ($400,000 face value total). You own the universal life policy and the\ncash surrender value.\n\nAs a corporate vice president, you are eligible to receive severance benefits.\nThese benefits provide for a severance payment in an amount equal to 100% of\nyour annual base salary plus an amount equal to your incentive plan bonus\npotential at the target level, in the event of an involuntary termination\nwithout cause\".\n\nIn addition, the following executive perquisites are currently in effect for\ncorporate officers:\n\no First class air travel domestically, business class internationally. \no Financial and tax consulting expenses up to 1% of your base pay annually. \no Car allowance for a leased vehicle of $550.00 per month, plus reimbursement \n  for maintenance and insurance.\no Executive vacation program allowing vacation as business conditions dictate. \n  There is no defined limit, and therefore, no vacation accrual.\no Supplemental executive health insurance program which will reimburse qualified\n  health and welfare expenses for you and your family which are not covered by \n  our standard plan. This has an annual limitation of $5,000.00\n\nRevised May 25, 1999\n\n\n\n   3\n\n\nMr. Jim Bartlett\nOffer Letter\nMay 3, 1999\nPage 3\n\n\nThe offer is being extended with the understanding that within 12 months of your\ndate of hire, your primary work location will be in Colorado. Under this\nrelocation program StorageTek will pay or reimburse you for the following\nexpenses: \n\no Shipment of household goods to Colorado plus initial storage. This item will \n  be billed directly to StorageTek. \no Temporary living in Colorado for you and\/or your family up to sixty (60) days.\no Travel, meals and lodging enroute to Colorado for you and\/or your family.\no House-hunting with your spouse in Colorado for a maximum period of five days.\no Reasonable and standard closing costs associated with the purchase of a home \n  in Colorado, if purchased within eighteen months of your hire date.\no Realtor fees and closing costs on the sale of your current residence within\n  eighteen months of your hire date. \no A one-time relocation allowance of 3% of your annual base salary.\n\nShould you accept this offer of employment, you will receive a signing bonus.\nThe gross amount of this bonus is $50,000. This bonus is subject to normal\nfederal and local income tax provisions. If you voluntarily terminate your\nemployment with StorageTek within 18 months of the relocation, you will be\nrequired to reimburse your hiring bonus and any relocation expenses on a\nprorated basis.\n\nThis offer is contingent upon your signing Storage Technology Corporation's\nproprietary rights agreement and identification of pre-employment commitments\nform which are enclosed for your review. These enclosures define your\nobligations to StorageTek with regard to disclosure and dissemination of\nconfidential information, ownership of intellectual property, disclosure of\nexisting obligations and commitments, and non-raiding obligations.\n\nAs a condition of employment, you must successfully complete the StorageTek\npre-employment drug screen test administered by the company. Once you have\naccepted StorageTek's offer and have chosen a start date, we will process your\npaperwork for new hire orientation and will advise you of the orientation\nmeeting date and location.\n\nPlease review and sign the enclosed documents, and return them along with a\nsigned acceptance copy of this letter in the enclosed self-addressed stamped\nenvelope.\n\nUpon acceptance of your offer letter, you will be asked to sign an officer\nagreement that will further define benefits and responsibilities.\n\n\nRevised May 25, 1999\n\n\n   4\n\n\n\nMr. Jim Bartlett\nOffer Letter\nMay 3, 1999\nPage 4\n\n\n\nIf you have any questions regarding the conditions of this offer, please do not\nhesitate to contact me at 303-673-3132. This offer is valid through May 11,\n1999.\n\nI look forward to working with you as a key member of the StorageTek team!\n\n\nVery truly yours,\n\n\n\nVictor Perez\nExecutive Vice President, and Chief Operating Officer\n\n\nEnclosures:\n         Acceptance Copy\n         Proprietary Rights Agreement\n         Identification of pre-Employment Commitment\n         Employment Eligibility Verification Form\n\n\n\n\n\n\n\nI accept the offer as outlined above and understand that my acceptance does not\ncreate an employment contract for a definite term or alter at-will employment.\n\n\n\n-----------------------------------------------------\nJames Bartlett                              Date\n\n\nRevised May 25, 1999\n\n\n   5\n\n\n\n\n\n\n\nJames Bartlett\nMay 4, 1999\nOffer Letter\nPage 5\n\n\n\n\n\nAPPROVALS:\n\n\n\n\n---------------------------------            ----------------------------------\nVictor Perez\nExecutive Vice President, and Chief Operating Officer\n\n\n\n\n---------------------------------            ----------------------------------\nDavid Weiss                  Date            Karen Niparko              Date\nChairman, Chief Executive Officer            Chief Administrative Officer\nand President\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-39598","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\/39598","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=39598"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=39598"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=39598"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=39598"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}