Document:

ntap-ex102_133.htm

Exhibit 10.2

 

NetApp, Inc.
495 E. Java Drive 
Sunnyvale, CA 94089

June 1, 2015

Thomas Georgens

c/o NetApp,

495 E. Java Drive

Sunnyvale, CA 94089

Dear Tom:

This letter confirms the agreement between NetApp, Inc., (the “Company”) and you regarding the terms of your separation from the Company.

1.Exit Date and Resignations.  Your last day of employment with the Company shall be June 5, 2015 (the “Exit Date”).  You further confirm your resignation, effective June 1, 2015, as Chief Executive Officer of the Company and as a member of the Company’s Board of Directors (and, as applicable, any subsidiaries or affiliated entities of the Company).  You agree to execute any necessary forms or other documents reasonably required to effect your resignation as an employee, officer, or director as a matter of state, federal, or foreign law.

2.Severance Benefits.  In consideration for your signing this agreement, you will receive the Severance Benefits set forth in the attached Exhibit A, which terms shall be deemed to be incorporated in full herein and which terms shall be subject to the conditions set forth herein and the Amended and Restated Change of Control Severance Agreement between you and the Company effective as of August 19, 2009 (the “Change of Control Severance Agreement”),

3.Return of Company Property.  You agree that within five (5) business days following the Exit Date you will return to the Company all Company property in your possession.  The Company acknowledges that following the Exit Date, you may retain your Company laptop computer, cell phone, and similar devices provided that all Company information is removed from such devices.  Company personnel will assist and facilitate the removal of such information.  You further agree that you will not delete or destroy any information that you are obligated to preserve pursuant to any preservation request that you received from Company counsel or court order provided to you by the Company.

4.Maintaining Confidential Information.  You agree not to disclose any confidential information you acquired, while an employee of the Company, to any other person or use such information in any manner that is detrimental to the Company’s interests, per NetApp’s Proprietary Information and Inventions Agreement (the “Proprietary Information Agreement”), which you signed when you were hired and you further agree to honor the terms of that agreement, including those terms which survive your employment with the Company.

5.Acknowledgement of Payment of Wages.  Except for any severance benefits set forth in Section 2, by your last day worked you will have received your final paycheck which will include a final payment for wages through your Exit Date, salary, bonuses, if any, employee stock purchase plan reimbursement, accrued but unused vacation pay and any similar payments due from NetApp, less applicable taxes and 401k deduction, if applicable, as of the Exit Date.  You acknowledge that NetApp does not owe you any other amounts, except any valid un-reimbursed business expenses that you will submit to the Company.

6.General Release of the Company.  You understand that by agreeing to this release you are agreeing not to sue, or otherwise file any claim against, the Company or any of its employees or other agents for any reason whatsoever based on anything that has occurred as of the date you sign this agreement.

a)On behalf of yourself and your heirs and assigns, you hereby release and forever discharge the “Releasees” hereunder, consisting of the Company, and each of its owners, shareholders, affiliates, divisions, predecessors, successors, assigns, agents, directors, officers, partners, employees, and insurers, and all persons acting by, through, under or in concert with them, or any of them, of and from any and all manner of action or actions, cause or causes of action, in law or in equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, damages, loss, cost or expense, of any nature whatsoever, known or unknown, fixed or contingent (hereinafter called “Claims”), which you now have or may hereafter have against the Releasees, or any of them, by reason of any matter, cause, or thing whatsoever from the beginning of time to the date hereof, including, without limiting the generality of the foregoing, any Claims arising out of, based upon, or relating to your hire, employment, remuneration or resignation by the Releasees, or any of them, including any Claims arising under Title VII of the Civil Rights Act of 1964, as amended; the Age Discrimination in Employment Act, as amended; the Equal Pay Act, as amended; the Fair Labor Standards Act, as amended; the Employee Retirement Income Security Act, as amended; the California Fair Employment and Housing Act, as amended; the California Labor Code; and/or any other local, state or federal law governing discrimination in employment and/or the payment of wages and benefits.

Notwithstanding the generality of the foregoing, you do not release the following claims:

(i)Claims for unemployment compensation or any state disability insurance benefits pursuant to the terms of applicable state law;

(ii)Claims for workers’ compensation insurance benefits under the terms of any workers’ compensation insurance policy or fund of the Company;

(iii)Claims to continued participation in certain of the Company’s group benefit plans pursuant to the terms and conditions of the federal law known as COBRA;

(iv)Claims to any benefit entitlements vested as the date of your employment termination, pursuant to written terms of any Company employee benefit plan;

(v)Claims to any severance benefits due and owing pursuant to Section 2;

(vi)Claims that cannot be released as a matter of law, including, but not limited to: (1) your right to file a charge with or participate in a charge by the Equal Employment Opportunity Commission, the National Labor Relations Board, the Securities and Exchange 

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Commission, or any other local, state, or federal administrative body or government agency that is authorized to enforce or administer laws related to your employment, against the Company (with the understanding that any such filing or participation does not give you the right to recover any monetary damages against the Company; your release of claims herein bars you from recovering such monetary relief from the Company); (2) claims under Division 3, Article 2 of the California Labor Code (which includes California Labor Code section 2802 regarding indemnity for necessary expenditures or losses by employee); and (3) claims prohibited from release as set forth in California Labor Code section 206.5 (specifically “any claim or right on account of wages due, or to become due, or made as an advance on wages to be earned, unless payment of such wages has been made”); and

(vii)Claims under the terms of any indemnification agreement entered into between you and the Company.

b)YOU ACKNOWLEDGE THAT YOU ARE FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.

BEING AWARE OF SAID CODE SECTION, YOU HEREBY EXPRESSLY WAIVE ANY RIGHTS YOU MAY HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT.

c)You acknowledge that you are waiving and releasing any rights you may have under the Age Discrimination in Employment Act of 1967 (“ADEA”) and that this waiver and release is knowing and voluntary.  You and the Company agree that this waiver and release does not apply to any rights or claims that may arise under ADEA after the effective date of this agreement.  You acknowledge that the consideration given for this release is in addition to anything of value to which you were already entitled.  You further acknowledge that you have been advised by this agreement that (a) you should consult with an attorney before signing this agreement; (b) you have up to twenty-one (21) days within which to consider this agreement; (c) you have seven (7) days following your signing this agreement to revoke it; (d) this release will not be effective until the revocation period has expired; and (e) nothing in this agreement prevents or precludes you from challenging or seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties or costs from doing so, unless specifically authorized by federal law.  In the event you sign this agreement and return it to the Company in less than the 21-day period identified above, you hereby acknowledge that you have freely and voluntarily chosen to waive the time period allotted for considering this agreement.

7.Severability.  The provisions of this agreement are severable.  If any provision is held to be invalid or unenforceable, it shall not affect the validity or enforceability of any other provision.

8.Choice of Law/Venue.  This agreement will be governed by the laws of the State of California, without regard for choice-of-law provisions.  You consent to personal and exclusive jurisdiction and venue in the State of California.

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9.Voluntary and Knowing Agreement.  You represent that you have thoroughly read and considered all aspects of this agreement, that you understand all its provisions and that you are voluntarily entering into this agreement.

10.Effective Date.  You have seven (7) days after you sign this agreement to revoke it.  This agreement will become effective on the eighth (8th) day after you sign this agreement, so long as it has been signed by both parties and has not been revoked by you before that date.

11.Entire Agreement; Amendment.  This agreement, together with the Change of Control Severance Agreement (including its arbitration provision), Proprietary Information Agreement, and agreements relating to your equity incentive awards, set forth the entire agreement between you and the Company and supersede any and all prior oral or written agreements or understandings between you and the Company concerning the subject matter.  This agreement may not be altered, amended or modified, except by a further written document signed by you and the Company.

If the above accurately reflects your understanding, please date and sign the enclosed copy of this letter in the places indicated below and return it to me.

Respectfully,

/s/ Matthew K. Fawcett

Matthew K. Fawcett

General Counsel

Accepted and agreed to on June 1, 2015.

/s/ Thomas Georgens

Thomas Georgens

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EXHIBIT A

Subject to your signing and not revoking the agreement, you shall be entitled to receive the following Severance Benefits:

a)Severance Payment.  You will receive $5,000,000 (five million dollars), less applicable withholdings.  Said lump sum payment (less withholdings) shall be made within ten (10) business days following the effective date of the agreement.  You understand that the Company will issue you a Form W-2 in connection with the Severance Payment.

b)Treatment of Equity.  You will vest all outstanding equity incentive awards through the Exit Date, and no more.  All outstanding equity incentive awards that have not yet vested in accordance with their terms on or before the Exit Date shall cease to vest and shall be forfeited as of such date.  Except as set forth in this agreement, all other provisions of your equity incentive awards (including, but not limited to, the exercise of vested options) shall remain in full force and effect and your equity incentive awards shall continue to be governed by the terms and conditions of the equity incentive awards.

c)Extension of Option Exercise Period.  The post-termination exercise period for any or all of your outstanding and vested options shall be June 5, 2016.

d)Medical Benefits.  You will receive executive retiree medical benefits.

e)Other Services.  You will receive up to ten (10) hours per week of administrative / secretarial support for the next nine (9) months, or until you take another role / job that supplies such support in a commensurate amount, whichever comes first.

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Exhibit 10.3

 

NETAPP, INC.

 

AMENDMENT TO CHANGE OF CONTROL SEVERANCE AGREEMENT

 

This Amendment to Change of Control Severance Agreement (the “Amendment”) is effective as of June 23, 2015, by and between NetApp, Inc. (the “Company”) and George Kurian (the “Executive”), and amends that certain Change of Control Severance Agreement, dated as of September 20, 2013 (the “Agreement”), by and between the Company and Executive.  All capitalized terms used but not otherwise defined herein shall have the meanings given such terms in the Agreement.

 

WHEREAS, the parties have agreed to amend certain provisions contained in the Agreement.

 

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties hereto agree as follows:

 

1Severance Payment.  Section 3(a)(ii) of the Agreement is hereby amended and restated in its entirety as follows:

“Executive will receive a lump sum severance payment (less applicable withholding taxes) equal to the sum of (A) 250% of Executive’s annual base salary as in effect immediately prior to Executive’s termination date or (if greater) at the level in effect immediately prior to the Change of Control, and (B) 100% of Executive’s target annual bonus as in effect immediately prior to Executive’s termination date or (if greater) at the level in effect immediately prior to the Change of Control.”

 

2Equity Awards.  Section 3(a)(iii) of the Agreement is hereby amended and restated in its entirety as follows:

“All outstanding equity awards will vest in full as to 100% of the unvested portion of the award.  Executive will have one (1) year following the date of his or her termination in which to exercise any outstanding stock options or other similar rights to acquire Company common stock; provided, however, that such post-termination exercise period will not extend beyond the original maximum term of the stock option or other similar right to acquire Company common stock.”

3Continued Employee Benefits.  Section 3(a)(iv) of the Agreement is hereby amended and restated in its entirety as follows:

Amendment to Change of Control Severance Agreement – Kurian

 

 

“If Executive elects continuation coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) for Executive and Executive’s eligible dependents, within the time period prescribed pursuant to COBRA, the Company will reimburse Executive for the COBRA premiums for such coverage (at the coverage levels in effect immediately prior to Executive’s termination) until the earlier of (A) a period of twenty-four (24) months from the last date of employment of the Executive with the Company, or (B) the date upon which Executive and/or Executive’s eligible dependents becomes covered under similar plans.  COBRA reimbursements will be made by the Company to Executive consistent with the Company’s normal expense reimbursement policy.”

4Definition of Good Reason.  Section 5(d)(i) of the Agreement is hereby amended and restated in its entirety as follows:

“A material reduction of Executive’s authority or responsibilities, relative to Executive’s authority or responsibilities in effect immediately prior to such reduction; provided, however, that a reduction of authority or responsibilities that occurs solely as a necessary and direct consequence of the Company undergoing a Change of Control and being made part of a larger entity will not be considered material (as, for example, when the Chief Executive Officer of the Company remains the Chief Executive Officer of the Company, or the business unit comprising the Company, following a Change of Control even though he or she is not made the Chief Executive Officer of the acquiring corporation).

Notwithstanding the foregoing, (x) any change which results in Executive ceasing to have the same functional supervisory authority and responsibility (such as but not limited to the sales, engineering, operations and all general and administrative (including, but not limited to, finance) functions) for the Company, or the business unit comprising the Company, following a Change of Control as Executive performed for the Company prior to the Change of Control, or (y) a change in the Executive’s reporting position such that Executive no longer reports directly to the Chief Executive Officer or the Board of Directors of the parent corporation in a group of controlled corporations following a Change of Control, will be deemed to constitute a material reduction in Executive’s authority and responsibilities constituting grounds for a Good Reason termination.”

5Effect.  Except as expressly set forth herein, all other provisions of the Agreement shall remain in full force and effect.  This Amendment shall be deemed incorporated into and made a part of the Agreement.  After the date hereof, all references to the Agreement shall mean the Agreement as amended by this Amendment.

6Entire Agreement.  This Amendment and the Agreement constitute the entire agreement of the parties hereto and supersede in their entirety all prior representations, understandings, undertakings or agreements (whether oral or written and whether expressed or implied) of the parties with respect to the subject matter hereof, including, without limitation, the 

Amendment to Change of Control Severance Agreement – Kurian

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Addendum to Stock Option Agreement applicable to any stock option award of Executive.  For the avoidance of doubt, the Agreement (as amended by this Amendment) shall not be deemed to supersede or affect (i) any benefit entitlements vested as of the date of the Executive’s termination of employment pursuant to written terms of any Company employee benefit plan, including without limitation the Company’s Executive Retiree Medical Plan, or (ii) any agreement that specifically provides that the benefits contained therein are in lieu of any benefits set forth in the Agreement.  No waiver, alteration, or modification of any of the provisions of the Agreement (as amended by this Amendment) will be binding unless in writing and signed by duly authorized representatives of the parties hereto and which specifically mention the Agreement (as amended by this Amendment).

7Governing Law.  The validity, interpretation, construction and performance of this Amendment will be governed by the laws of the State of California (with the exception of its conflict of laws provisions).

8Severability.  The invalidity or unenforceability of any provision or provisions of this Amendment will not affect the validity or enforceability of any other provision hereof, which will remain in full force and effect.

9Counterparts.  This Amendment may be executed in counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.

[Remainder of page intentionally left blank]

 

 

Amendment to Change of Control Severance Agreement – Kurian

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IN WITNESS WHEREOF, each of the parties has executed this Amendment, in the case of the Company by its duly authorized officer, as of the day and year set forth below.

 

COMPANYNETAPP, INC.

 

By:/s/ Matthew K. Fawcett

 

Title:SVP, General Counsel and Secretary

 

Date:July 14, 2015

 

 

EXECUTIVEBy:/s/ George Kurian 

 

Title:Chief Executive Officer

 

Date:July 16, 2015

 

[Signature page to Amendment to Change of Control Severance Agreement]

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