Document:

Exhibit
10(k)(k)(k)

 

 

HP Agreement Regarding Confidential Information
and Proprietary Developments

 

 

Name of Employee:
________________________________________________________________________

 

1.         Consideration and
Relationship to Employment. 
As a condition of my continued employment with Hewlett-Packard Company
or one of its subsidiaries or affiliates (collectively, “HP” or the “Company”),
in return for HP’s agreement that I will be provided certain confidential and
proprietary information, training, and/or customer contacts to assist me in my
duties in such employment, and in consideration of my eligibility for a grant
of Performance-based Restricted Units under the Hewlett-Packard Company 2004
Stock Incentive Plan, I knowingly agree to restrictions provided for below
that will apply during and after my employment by HP.  I understand, however, that nothing relating
to this Agreement will be interpreted as a contract or commitment whereby HP is
deemed to promise continuing employment for a specified duration.  My acceptance of this Agreement may be
indicated either by a manual signature or by my completion of a computer-based
process that duly confirms my agreement to such terms.

 

2.         Confidential Information.  This Agreement concerns trade secrets,
confidential business and technical information, and know-how not generally
known to the public (hereinafter “Confidential Information”) which is acquired
or produced by me in connection with my employment by HP.  Confidential Information may include, without
limitation, information on HP organizations, staffing, finance, structure,
information of employee performance, compensation of others, research and
development, manufacturing and marketing, files, keys, certificates, passwords
and other computer information, as well as information that HP receives from
others under an obligation of confidentiality. 
I agree to abide by the HP Confidential Information Policy and
specifically agree that with regard to HP Confidential Information:

 

(a)        to use such information only in the
performance of HP duties;

 

(b)        to hold such information in confidence
and trust; and

 

(c)        to use all reasonable precautions to
assure that such information is not disclosed to unauthorized persons or used
in an unauthorized manner, both during and after my employment with HP.

 

I further agree that any
organizational information or staffing information learned by me in connection
with my employment by HP is the Confidential Information of HP, and I agree
that I will not share such information with any recruiters or any other
employers, either during or subsequent to my employment with HP; further, I
agree that I will not use or permit use of such as a means to recruit or
solicit other HP employees away from HP (either for myself or for others).

 

3.         Proprietary Developments.  This Agreement also concerns inventions and
discoveries (whether or not patentable), designs, works of authorship, mask
works, improvements, data, processes, computer programs and software
(hereinafter called “Proprietary Developments”) that are conceived or made by
me alone or with others while I am employed by HP and that relate to the
research and development or the business of HP, or that result from work
performed by me for HP, or that are developed, in whole or in part, using HP’s
equipment, supplies, facilities or trade secrets information.  Such Proprietary Developments are the sole
property of HP, and I hereby assign and transfer all rights in such Proprietary
Developments to HP.  I also agree that

 

 

any works of authorship
created by me shall be deemed to be “works made for hire.”  I further agree for all Proprietary
Developments:

 

(a)        to disclose them promptly to HP;

 

(b)        to sign any assignment document to
formally perfect and confirm my assignment of title to HP;

 

(c)        to assign any right of recovery for past
damages to HP; and

 

(d)        to execute any other documents deemed
necessary by HP to obtain, record and perfect patent, copyright, mask works
and/or trade secret protection in all countries, in HP’s name and at HP’s
expense.

 

I understand that HP may
assign and/or delegate these rights.  I
agree that, if requested, my disclosure, assignment, execution and cooperation
duties will be provided to the entity designated by HP.

 

In compliance with
prevailing provisions of relevant state statutes,* this Agreement does not
apply to an invention for which no equipment, supplies, facility or trade
secret information of the employer was used and which was developed entirely on
the employee’s own time, unless (a) the invention relates (i) to the
business of the employer or (ii) to the employer’s actual or demonstrably
anticipated research or development, or (b) the invention results from any
work performed by the employee for the employer.

 

4.         Respect for Rights of
Former Employers.  I agree
to honor any valid disclosure or use restrictions on information or
intellectual property known to me and received from any former employers or any
other parties prior to my employment by HP. 
I agree that without prior written consent of such former employers or
other parties, I will not knowingly use any such information in connection
with my HP work or work product, and I will not bring onto the premises of HP
any such information in whatever tangible or readable form.

 

5.         Work Product.  The product of all work performed by me
during and within the scope of my HP employment including, without limitation,
any files, presentations, reports, documents, drawings, computer programs,
devices and models, will be the sole property of HP.  I understand that HP has the sole right to
use, sell, license, publish or otherwise disseminate or transfer rights in such
work product.

 

6.         HP Property.  I will not remove any HP property from HP
premises without HP’s permission.  Upon
termination of my employment with HP, I will return all HP property to HP
unless HP’s written permission to keep it is obtained.

 

7.         Protective Covenants.  I acknowledge that a simple agreement not to
disclose or use HP’s Confidential Information or Proprietary Developments after
my employment by HP ends would be inadequate, standing alone, to protect HP’s
legitimate business interests because some activities by a former employee who
had held a position like mine would, by their nature, compromise such
Confidential Information and Proprietary Developments as well as the goodwill
and customer relationships that HP will pay me to develop for the company
during my employment by HP.  I recognize
that activities that violate HP’s rights in this regard, whether or not intentional,
are often undetectable by HP until it is too late to obtain any effective
remedy, and that such activities will cause irreparable injury to HP.  To prevent this kind of irreparable

 

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harm, I agree that for a period of twelve months following
the termination of my employment with HP, I will abide by the following
Protective Covenants:

 

(a)        No Conflicting Business Activities.  I will not provide services to a Competitor
in any role or position (as an employee, consultant, or otherwise) that would
involve Conflicting Business Activities (but if I am a resident of California
and subject to the laws of California, the restriction in this clause
(paragraph 7, subpart (a)) will apply only to Conflicting Business Activities
that result in unauthorized use or disclosure of HP’s trade secrets); however,
in the event my employment with HP terminates as a result of a Workforce
Restructuring program or similar reduction in force, the restriction in this
clause (paragraph 7, subpart (a)) will not apply;

 

(b)        No Solicitation of Customers.  I will not (in person or through assistance
to others) knowingly participate in soliciting or communicating with any
customer of HP in pursuit of a Competing Line of Business if I either had business-related
contact with that customer or received Confidential Information about that
customer in the last two years of my employment at HP (but if I am a resident
of California and subject to the laws of California, the restriction in this
clause (paragraph 7, subpart (b)) will apply only to solicitations or
communications made with the unauthorized assistance of HP’s trade secrets);

 

(c)        No Solicitation of HP Employees.  I will not (in person or through assistance
to others) knowingly participate in soliciting or communicating with an HP
Employee for the purpose of persuading or helping the HP Employee to end or
reduce his or her employment relationship with HP if I either worked with that
HP Employee or received Confidential Information about that HP Employee in the
last two years of my employment with HP; and

 

(d)        No Solicitation of HP Suppliers.  I will not (in person or through assistance
to others) knowingly participate in soliciting or communicating with an HP
Supplier for the purpose of persuading or helping the HP Supplier to end or
modify to HP’s detriment an existing business relationship with HP if I either
worked with that HP Supplier or received Confidential Information about that HP
Supplier in the last two years of my employment with HP.

 

As used here, “Competitor”
means an individual, corporation, other business entity or separately operated
business unit of an entity that engages in a Competing Line of Business. “Competing Line of Business” means a business that involves a product or service offered by anyone
other than HP that would replace or compete with any product or service offered
or to be offered by HP with which I had material involvement while employed by
HP (unless HP and its subsidiaries are no longer engaged in or
planning to engage in that line of business). “Conflicting
Business Activities” means job duties or other business-related
activities in the United States or in any other country where the HP business
units in which I work do business, or management or supervision of such job
duties or business-related activities, if such job duties or business-related
activities are the same as or similar to the job duties or business-related
activities in which I participate or as to which I receive Confidential
Information in the last two years of my employment with HP.  I acknowledge that given the nature of my role as an
executive level employee, my duties involve my having access to Confidential
Information relevant to a national or larger geographic area such that
Conflicting Business Activities is appropriately a nationwide or larger
restriction.  “HP Employee”
means an individual

 

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employed by or retained
as a consultant to HP or its subsidiaries. “HP Supplier”
means an individual, corporation, other business entity or separately operated
business unit of an entity that regularly provides goods or services to HP or
its subsidiaries, including without limitation any OEM, ODM or subcontractor.

 

8.         Enforcement.  I make these agreements to avoid any future dispute
between myself and HP regarding specific restrictions on my post-employment
conduct that will be reasonable, necessary and enforceable to protect HP’s
Confidential Information and Proprietary Developments and other legitimate
business interests.  The Protective
Covenants are ancillary to the other terms of this Agreement and my employment
relationship with HP.  This Agreement
benefits both me and HP because, among other things, it provides finality and
predictability for both me and the Company regarding enforceable boundaries on
my future conduct.  Accordingly, I
agree that this Agreement and the restrictions in it should be enforced under
common law rules favoring the enforcement of such agreements.  For these reasons, I agree that I will
not pursue any legal action to set aside or avoid application of the Protective
Covenants.

 

9.         Notice of Post-Employment Activities.  If I accept a position with a Competitor at
any time within twelve months following termination of my employment with HP, I
will promptly give written notice to the senior Human Resources manager for the
HP business sector in which I worked, with a copy to HP’s General Counsel, and
will provide HP with the information it needs about my new position to determine
whether such position would likely lead to a violation of this Agreement
(except that I need not provide any information that would include the
Competitor’s trade secrets).

 

10.        Relief; Extension.
I understand that if I violate this Agreement (particularly the Protective
Covenants), HP will be entitled to injunctive relief by temporary restraining
order, temporary injunction, and/or permanent injunction and any other legal
and equitable relief allowed by law. 
Injunctive relief will not exclude other remedies that might apply.  If I am found to have violated any
restrictions in the Protective Covenants, then the time period for such
restrictions will be extended by one day for each day that I am found to have
violated them, up to a maximum extension equal to the time period originally
prescribed for the restrictions.

 

11.        Severability;
Authority for Revision; Governing Law.  The provisions of this Agreement will be
separately construed.  If any provision
contained in this Agreement is determined to be void, illegal or unenforceable,
in whole or in part, then the other provisions contained herein will remain in
full force and effect as if the provision so determined had not been contained
herein.  If the restrictions provided in
this Agreement are deemed unenforceable as written, the parties expressly
authorize the court to revise, delete, or add to such restrictions to the
extent necessary to enforce the intent of the parties and to provide HP’s
goodwill, Confidential Information, Proprietary Developments and other business
interests with effective protection.  In
the event the restrictions provided in this Agreement are deemed unenforceable
and cannot be reformed to make them enforceable, then any prior agreements that
I have made with HP relating to confidential information or proprietary
developments shall not be deemed to have been superseded or otherwise affected
by this Agreement, but instead shall remain in effect.  The title and paragraph headings in this
Agreement are provided for convenience of reference only, and shall not be
considered in determining its meaning, intent or applicability.   This Agreement will inure to the benefit of
the parties’ heirs, successors and assigns.  
This Agreement will be governed by the laws of the state in which I reside
at the time of its enforcement.

 

12.        Acceptance by HP.  A counterpart of this Agreement has been
manually executed on behalf of HP by a duly authorized officer of
Hewlett-Packard Company to indicate HP’s

 

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acceptance of the terms hereof and HP’s covenant to perform its
obligations hereunder (including, without limitation, HP’s agreement that I will be provided
certain confidential and proprietary information, training, and/or customer
contacts to assist me in my duties). Such acceptance on behalf of HP is
conditioned upon my reciprocal agreement to such terms.  I acknowledge the sufficiency of HP’s
acceptance of the terms hereof to establish the mutual rights and
responsibilities defined herein.

 

FOR HP

 

Signature:

 

Date:

 

FOR
EMPLOYEE

 

 

	
  Signature:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  

 

*Including:  California Labor Code Section 2870;  Delaware Code Title 19 Section 805;  Illinois 765ILCS1060/1-3, “Employees Patent
Act”;  Kansas Statutes Section 44-130;
Minnesota Statutes 13A Section 181.78; 
North Carolina General Statutes Article 10A, Chapter 66, Commerce
and Business, Section 66-57.1;  Utah
Code Sections 34-39-l through 34-39-3, “Employment Inventions Act”; Washington Rev. Code,
Title 49 RCW:  Labor Regulations, Chapter
49.44.140.

 

5Exhibit 10(l)(l)(l)

 

December 15, 2010

 

Ms. Catherine A. Lesjak

Executive Vice President and Chief Financial Officer

Hewlett-Packard Company

3000 Hanover Street

Palo Alto, CA 94304

 

Dear Cathie:

 

Over the last several months you have provided extremely valuable service both to Hewlett-Packard Company (“HP”) and to HP’s Board of Directors, and on behalf of the Board I would like you to know that we are especially grateful for all that you have done for HP.  The Board has also asked that I inform you that it would very much like to ensure that you remain with HP in the coming years to help HP continue to prosper.  To that end, on behalf of HP we are very pleased to enter into this agreement (“Agreement”) with you.

 

1.             The Term:  The term of this Agreement shall be three years, after which it may be renewed only by written agreement of the parties.

 

2.             Position and Duties:  For the term of this Agreement you shall continue to be Executive Vice President and Chief Financial Officer responsible for continuing to perform the duties and responsibilities of that position as you have before.

 

3.             Compensation:

 

a.             Base Salary:  Throughout the term of this Agreement your base salary shall be maintained at its current level subject to any future increases that the Board may grant; provided, however, that your base salary may be reduced if the base salaries for substantially all other Executive Vice Presidents are reduced in a substantially similar manner.

 

b.             Annual Incentive:  Throughout the term of this Agreement your target annual incentive will be maintained at its current level subject to any future increases that the Board may grant; provided, however, that your target annual incentive may be reduced if the target annual incentives for substantially all other Executive Vice Presidents are reduced in a substantially similar manner.

 

c.             Long-term Incentive Awards:  The long-term incentive awards that to date have been provided to you shall not be reduced during the term of this Agreement, and additional awards may be granted to you in the discretion of the Board; provided, however, that your long-term incentive awards may be reduced if the long-term incentive awards for substantially all other Executive Vice Presidents are reduced in a substantially similar manner.

 

 

December 15, 2010

Page 2

 

4.             Severance Benefits:

 

a.             Severance benefits for Section 16 officers are determined under the HP Severance Plan for Executive Officers (“SPEO”).  In your case, while this Agreement remains in effect you will be covered by the SPEO in accordance with its terms, but the amount of your cash severance benefit shall be calculated by multiplying by two the sum of (i) your annual base salary in effect immediately before the termination of your employment and (ii) the annual average of all cash bonuses that you earned for the two fiscal years most recently ended prior to the termination of your employment (regardless of whether such bonuses were paid during or after the end of a fiscal year); provided,however, that your cash severance benefit shall not exceed 2.99 times the sum of your base salary and target bonus in effect immediately prior to your termination.

 

b.             If you are terminated in a manner entitling you to benefits under the SPEO, as modified by this Agreement, in addition to the cash severance benefit payable under the SPEO you will receive a pro-rata bonus under the annual Pay-for-Results Plan (or any successor plan) with respect to the fiscal year in which your termination occurs based on your actual period of service through your date of termination and actual performance for the fiscal year as measured by applicable metrics. This bonus will be payable within 75 days following the end of the fiscal year during which your termination occurs.  In addition, the following treatment will apply to your outstanding equity awards in the event of a termination of your employment entitling you to benefits under the SPEO, as modified by this Agreement (such treatment to apply at such time as the release you are required to sign under the SPEO becomes effective):

 

	
i.
  	
Stock Options:  Vesting shall be fully accelerated on all of your unvested stock options and you shall have one year from your termination date (or the original expiration date, if earlier) to exercise all HP options;
  
	
 
  	
 
  
	
ii.
  	
Restricted Stock, RSU and PRU Awards:  All restrictions shall be released and you shall be immediately and fully vested in all stock or stock unit awards.  With respect to any PRUs or other performance-based awards (collectively “PBRUs”), payout shall be determined as if you had remained actively employed during the entire performance period, with payout to be calculated based on actual performance results and made in shares following the close of the applicable performance period.
  

 

c.             The other general terms and conditions of the SPEO will continue to apply with respect to the calculation, and conditions for receipt, of these benefits, except that a “qualifying termination” (in addition to the circumstances defined in the SPEO) shall include your resignation within 12 months after the occurrence, without your prior written consent, of one or more of the following events:

 

	
i.
  	
the relocation of your principal place of business more than 50 miles from Palo Alto, California;
  
	
 
  	
 
  
	
ii.
  	
a material reduction in your salary, annual incentive, or long-term incentive opportunities; and
  
	
 
  	
 
  
	
iii.
  	
a material adverse change in your authority, duties or responsibilities. A material adverse change in your authority, duties or responsibilities includes,
  

 

 

December 15, 2010

Page 3

 

without limitation, your ceasing to be Chief Financial Officer, or your no longer reporting directly to the Chief Executive Officer of the top-tier parent company of the controlled group of corporations of which HP is a part.

 

You must provide the Board with written notice within 90 days after the occurrence of one or more of the above events, and the Board will have 30 days during which it may remedy the condition so identified.

 

5.             Benefits Following a Change in Control of HP:  In the event of your termination within 12 months following a Change in Control of HP (as defined in the Amended and Restated HP 2004 Stock Incentive Plan) due to the same “qualifying termination” events that would qualify you for cash benefits under the SPEO or this Agreement, you will, subject to your execution of the required release, receive:

 

a.             a cash severance benefit as calculated pursuant paragraph 4a above;

 

b.             an annual incentive award under the HP Pay-for-Results Plan (or any successor program) for the fiscal year in which your termination occurs based on your actual service through your date of termination, and assuming continued accruals with respect to such bonus at the rate in effect immediately prior to the entry into an agreement by HP that results in its Change in Control; and

 

c.             equity treatment as described in paragraph 4b above, except that payout for all PBRUs shall be in cash and shall be determined assuming “target” performance on all metrics for all uncompleted periods, with each unit valued based on the per-share price paid for HP stock in connection with the change in control, plus interest at the applicable federal rate from the date of change in control to the date of payment, with the time of such payments to occur (i) at the end of the applicable performance period with respect to PBRUs already granted, and (ii) at the time the cash severance benefit is payable hereunder, with respect to PBRUs granted on or after the date of this Agreement, or otherwise as required so as to avoid imposition of tax under Section 409A of the Code.

 

If your receipt of the cash and other benefits payable under this paragraph (the “CIC Benefits”) would constitute an “excess parachute payment” for purposes of Section 280G of the Code, then either (i) the CIC Benefits shall be reduced by the minimum amount necessary to avoid any excise taxes under Code Section 4999 or (ii) you shall receive the full amount of the CIC Benefits without any reduction, whichever results in your receipt, on an after-tax basis (including after the imposition of any excise taxes under Code Section 4999), of the greatest amount of the CIC Benefits.  If the CIC Benefits are so reduced, such reductions shall first apply to cash payments, with the last payment reduced first; next, to any equity or equity derivatives that are included under Code Section 280G at full value rather than accelerated value, with the highest value reduced first (applied first to performance-based awards and then to time-based awards); next to any non-cash, non-equity-based benefits, with the latest scheduled benefit reduced first; and finally to any equity or equity derivatives based on acceleration value, with the highest value reduced first (applied first to performance-based awards and then to time-based awards) (with all equity and equity derivative values to be determined under Treasury Regulation Section 1.280G-1, Q&A 24).  If you receive the full amount of the CIC Benefits without any reduction and such amounts constitute an “excess parachute payment,” you shall be liable for all taxes related to such payments.

 

 

December 15, 2010

Page 4

 

6.             Miscellaneous:  In the event of your termination for any reason, the usual executive officer indemnification provisions will continue to apply to the full extent permitted under Delaware law.  Your receipt of severance or Change in Control benefits will be subject to your execution of a standard release of claims within 45 days after your termination of employment and, unless a later date is specified above, all cash payments described herein will be made net of required withholdings within 10 days after the expiration of that 45-day period.  Notwithstanding the foregoing, all payments shall be made at the earliest date on which payment can be made without imposition of the IRC Section 409A additional tax.  Without limitation, in the event that any of the benefits described in this Agreement would be subject to tax under Code Section 409A if paid within six months after your termination of employment (as the result of your status as a “specified employee” within the meaning of Code Section 409A), such amount shall be withheld and paid to you on the first business day of the seventh month following your termination, or to your estate upon your death, if earlier.  In addition, your equity-based awards will be structured in compliance with this Agreement and Code Section 409A.  You will be reimbursed for attorneys’ fees you have incurred in connection with negotiation of this Agreement, as well as any such fees you reasonably incur for review of this Agreement in connection with a Change in Control.  All disputes regarding this Agreement will be submitted to arbitration in accordance with the standard rules of the American Arbitration Association, and you will be reimbursed for any attorneys’ fees you incur in connection with such a proceeding only if you substantially prevail on all of the claims that you assert.  All reimbursements shall be made in accordance with Code Section 409A. For purposes of HP’s policy regarding severance agreements for senior executives, any benefits realized with respect to your equity-based awards in connection with a termination of employment shall be treated as “permitted benefits” (as defined in the resolutions adopting such policy, dated July 18, 2003).

 

We are extremely pleased to confirm the terms of your continued service to HP and we look forward to your continued support to the Board and HP’s new CEO.  To indicate your agreement to these terms, please sign and return a copy of this letter to me.  The effective date of this Agreement shall be the date that it is signed and dated by you below.

 

Sincerely,

 

 

	
/s/ Lawrence T. Babbio, Jr.
  	
 
  
	
Lawrence T. Babbio, Jr.
  	
 
  
	
Chair, Human Resources & Compensation Committee
  	
 
  
	
Hewlett-Packard Company Board of Directors
  	
 
  

 

 

ACKNOWLEDGED AND AGREED:

 

 

	
/s/ Catherine A. Lesjak
  	
 
  

Catherine A. Lesjak

 

December 15, 2010

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