Document:

Exhibit

	
					
	 

Exhibit 10.2

	
					
	 
	 
	 
	 
	NOTICE OF GRANT

	 
	 
	Participant:
	 
	Neill Reynolds

	Company:
	 
	Award Number:
	 
	42

	Cree, Inc.
	 
	Award Plan:
	 
	2013 Long-Term Incentive Compensation Plan

	4600 Silicon Drive
	 
	Award Type:
	 
	Performance Units

	Durham, NC  27703
	 
	Grant Date:
	 
	August 24, 2020

	Tax I.D. 56-1572719
	 
	Performance Period:
	 
	June 29, 2020 through June 27, 2021

Dear Neill:
I am pleased to inform you that Cree, Inc. (the “Company”) has awarded Performance Units to you effective August 24, 2020 (the “Grant Date”).  This award is subject to and governed by the terms of the Cree, Inc. 2013 Long-Term Incentive Compensation Plan (the “Plan”), the terms of the Master Performance Unit Award Agreement between you and the Company, and this Notice of Grant.  

The amount payable to you pursuant to your Performance Units (“D”) will be determined as the result of A x B x C, where:
		
	•
	A equals your Base Salary;

		
	•
	B equals your Target Award Level; and

		
	•
	C equals the Performance Measurement.

For purposes of the foregoing, except as expressly provided otherwise in this Notice of Grant, “Base Salary” shall refer to your annual base salary in effect on the last day of the first fiscal quarter of fiscal year 2021 (“FY21”), as provided in the Company’s human resources management system, unless your annual base salary changes after the first fiscal quarter.  If your annual base salary changes after the first fiscal quarter, “Base Salary” will mean the weighted average annual base salary for the Performance Period determined by multiplying each annual base salary in effect during the Performance Period by a fraction, the numerator of which is the number of calendar days in the Performance Period on which such annual base salary was in effect and the denominator of which is the number of calendar days in the Performance Period.  However, if you are on a leave of absence (other than a leave of absence where you continue to be paid your full base salary through the Company’s payroll system, except payments received under the Company’s short-term disability income protection plan), for all or part of the Performance Period, your Base Salary will be reduced proportionately to equate to the base salary applicable to the number of calendar days you were not on a leave of absence during the Performance Period.    

For purposes of the foregoing, your “Target Award Level” is eighty percent (80%). 

For purposes of the foregoing, the “Performance Measurement” is a percentage between 0% and 200% determined by the Compensation Committee of the Company’s Board of Directors (the “Committee”) after assessing the Company’s performance against FY21 revenue, non-GAAP gross margin, design-ins and pipeline generation, MOSFET yield improvement, completion of the Mohawk Valley Fab building and fit out, and DEI (Diversity, Equity and Inclusion) initiatives (the “Performance Criteria”) targets. 

The Performance Measurement for the Performance Period will be determined by calculating the Performance Measurement levels associated with the actual Performance Criteria results, rounded to the nearest whole percentage.

Except as provided in the Company’s SLT Severance Plan, if such plan is then in effect, and except as provided 

below with respect to your death or LTD Disability, (i) you must be continuously employed by the Company as the Company's Executive Vice President, Chief Financial Officer through the last day of the Performance Period to have a right to payment of your Performance Units, (ii) your Performance Units will not be considered earned until the last day of the Performance Period, and (iii) if you terminate employment with the Company prior to the last day of the Performance Period, with or without cause, you will forfeit your Performance Units. 

After the end of the Performance Period, your actual Performance Measurement will be determined as follows:
		
	Step 1:
	The Committee will, in good faith and in its sole discretion, determine the Company’s actual Performance Criteria results for the Performance Period (the “Results,” each a “Result”) using competent and reliable information, including but not limited to audited financial statements, if available.  

		
	Step 2:
	The Committee will determine the Performance Measurement for the Performance Period by averaging the Performance Measurement levels that corresponds to each Result, rounded to the nearest whole percentage. However, in the event a Change in Control (as defined in the SLT Severance Plan) occurs during the Performance Period, the percentage for each Result will be no less than 100% paid out as described herein.

Notwithstanding the foregoing, in order to ensure that the Company’s best interests are met, except as specifically provided in the SLT Severance Plan, the Committee in its discretion may decrease or eliminate the amount payable pursuant to your Performance Units at any time prior to payment if it determines in good faith that payment of the full amount otherwise payable pursuant to the Performance Units is not warranted or appropriate; provided, however, so long as you are not in breach of your Confidential Information Agreement (as defined in the SLT Severance Plan), following (i) the commencement of a tender offer or the Company and another party entering into a written agreement that contemplates a transaction, the consummation of either of which would result in a Change in Control, or (ii) a Change in Control, the Committee may not decrease or eliminate the amount payable as otherwise determined in accordance with this Notice of Grant without your prior written consent, except that this restriction shall cease to apply if the tender offer or the written agreement is terminated or expires without the occurrence of a Change in Control. 

In connection with the Committee’s determination of the actual Performance Criteria results for the Performance Period, the Committee shall (without limiting its authority to apply negative discretion as provided above) make adjustments that eliminate the effect of any changes or events (each a “Change”) that occur during such Performance Period and that were not fully anticipated and/or accurately incorporated into the financial calculations when the performance targets were determined, where (a) making the adjustment will improve performance results, and (b) the Change has a material effect on results under a performance target (determined consistently with past practice), and (c) the Change comes within one or more of the following categories (determined consistently with past practice, to the extent applicable): (1) changes in corporate or capital structure, including but not limited to debt or equity offerings, mergers, acquisitions or divestitures; or (2) other unusual or nonrecurring events. 

If prior to settlement of your Performance Units, the Company terminates your employment on account of your LTD Disability or you die, you or your beneficiary will receive payment under your Performance Units as otherwise determined in accordance with this Notice of Grant as if you had remained employed through the payment date for your Performance Units. However, in such event your Base Salary will be proportionally reduced based on the number of calendar days you were employed by the Company and not otherwise on leave of absence as provided above during the Performance Period. 

If there is a Change in Control and you remain continuously employed by the Company through the end of the Performance Period, but your employment terminates In Connection with a Change in Control upon or after the end of the Performance Period but prior to the payment date under your Performance Units, you will be entitled to payment under your Performance Units as otherwise determined in accordance with this Notice of Grant. However, if there is a Change in Control and your employment terminates prior to the end of the Performance Period, you will not be entitled hereunder to a payment under your Performance Units. “In Connection with a Change of Control” will have the same meaning as in the SLT Severance Plan. 

In general, payment under your Performance Units will be made as soon as practicable after the end of the Performance Period and, in any event, will be made no later than (i) the end of the second fiscal quarter following the end of the Performance Period or, if earlier, (ii) the 15th day of the third month after the later of the end of the Company's tax year in which the Performance Period ends or the end of your tax year in which the Performance Period ends. However, if payment becomes due under your Performance Units on account of your death or LTD Disability, payment will be made no later than the 15th day of the third month after the later of the end of the Company’s tax year in which your death or LTD Disability, as applicable, occurs or the end of your tax year in which your death or termination of your employment on account of LTD Disability, as applicable, occurs. Alternatively, in the event a Change in Control occurs prior to the payment date of your Performance Units, any payment that becomes due under your Performance Units will be made no later than the 15th day of the third month after the later of the end of the Company’s tax year in which the Change of Control occurs or the end of your tax year in which the Change of Control occurs. 

This award is intended to fulfill any and all agreements, obligations or promises, whether legally binding or not, previously made by the Company or any Employer under the Plan to grant you Performance Units or to provide you annual incentive compensation for the Performance Period. By signing below, you accept such award, along with all prior awards received by you, in full satisfaction of any such agreement, obligation or promise. By signing below, you expressly acknowledge that you are not a participant in or entitled to a payment under the Management Incentive Compensation Plan. 

Nothing in this Notice of Grant or the Master Performance Unit Award Agreement is intended to modify or amend the terms of the SLT Severance Plan, including but not limited to your right to receive the payment specified in Sections 4.1 and 4.2 thereof in accordance with the terms and conditions of the SLT Severance Plan.

Date:  August 24, 2020
	
							
	For Cree, Inc.
	 
	Accepted and agreed to:

	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 

	By:
	 
	/s/ Gregg Lowe
	 
	By:
	 
	/s/ Neill Reynolds

	 
	 
	Gregg Lowe
	 
	 
	 
	Neill Reynolds

	 
	 
	President and Chief Executive Officerntap-ex101_46.htm

Exhibit 10.1

 

January 23, 2020

 

Michael Berry

 

Dear Michael:

 

We are pleased to offer you the position of Executive Vice President and Chief Financial Officer with NetApp, Inc.  (“NetApp” or the "Company").  In this exempt position, you will report to George Kurian, our Chief Executive Officer (CEO) and will be based out of our Sunnyvale Corporate Headquarters Office (SUNNYVALE) facility, located at: 1395 Crossman Avenue, Sunnyvale, CA  94089.  Your appointment as Chief Financial Officer of the Company remains subject to the approval of our Board of Directors. 

 

Your annual base salary will be $600,000, less applicable tax withholdings and deductions.

 

ICP

In addition to your base compensation, depending upon your date of hire, you will be eligible to earn an annual cash incentive compensation payout in accordance with the Executive Compensation Plan, as amended from time to time (the “Plan”).  For your position, the annual target incentive compensation payout is 110% of your eligible earnings for the applicable fiscal year as defined in the Plan.  Target incentives do not constitute a promise of payment.  Your actual annual payout may be higher or lower than the target based on the overall Company performance and your individual performance and is subject to, and governed by, the Plan and the terms and conditions approved by the Compensation Committee of our Board of Directors (the “Compensation Committee”).  If your start date is between the last day of the third fiscal quarter and the end of NetApp’s fiscal year, you will not be eligible to participate in the Plan until the beginning of the next fiscal year.

 

New Hire Equity

Following the commencement of your employment, we will recommend to the Compensation Committee that you receive a grant of restricted stock (RSUs) with a dollar value of $5,500,000 subject to the terms and conditions of the NetApp, Inc. 1999 Stock Option Plan.  The dollar value of the RSUs will be converted to shares based on 60-day trailing average stock price on the grant date. The grant date and the vesting commencement date of the grant will be on or about the 15th of the month following the month of your date of hire. The RSUs will vest at the rate of 25% per year beginning on the first anniversary of the vesting commencement date, subject to continued employment with the Company through the applicable vesting date.  Following each anniversary of the vesting commencement date, you will be issued shares of NetApp Inc. common stock (subject to tax withholding).   

 

New Hire Sign-on Bonus

You will receive a $75,000 sign-on bonus (less applicable tax withholdings and deductions), payable within 30 days of your start date. You understand and agree that this bonus is an advance payment given to you in consideration for your promise to remain employed by NetApp for at least twenty-four months following your start date. Therefore, you also understand and agree that if you voluntarily terminate your employment with NetApp prior to twelve months from your start date, you will be required to reimburse NetApp the full amount of the payment advanced to you. If you voluntarily terminate your employment with NetApp after twelve months but prior to twenty-four months from your start date, you will be required to reimburse NetApp fifty percent (50%) of the payment advanced to you.

 

As a regular employee of the Company, you are eligible for NetApp benefits, including medical, dental and life insurance, as of your hire date.  The Company reserves the right to modify, amend or terminate any employee benefits at any time for any reason. 

 

Executive Physical Benefit

Our medical insurance plan with Anthem includes an Executive Physical Benefit—once per calendar year, payable at 100% up to a maximum of $2,500 whether an in-network or out-of-network physician is used.  You will receive additional details regarding this benefit from the HR Benefits Team.

 

Change of Control Severance Agreement

As an Executive Vice President (EVP) reporting to the CEO, you are eligible to enter into a Change of Control Severance Agreement entitling you to certain benefits in the event of your termination following a change of control of the Company.  The form of agreement can be found at https://www.sec.gov/Archives/edgar/data/1002047/000156459019020164/ntap-ex101_40.htm.

 

 

Vacation

As an EVP, you will not accrue any annual vacation.  You are permitted to take vacation at your convenience in any number of days you require, provided that the vacation day(s) does not unreasonably interfere with the performance of your job.

 

Insider Trading

As an employee of NetApp, you are required to sign and agree to the Code of Conduct which includes the Company’s Insider Trading Policy.  You are considered an “Insider” under that policy and as a result, you are required to abide by all obligations under that policy including, but not limited to, the restrictions on trading set forth in the policy. 

 

Non-Qualified Deferred Compensation Plan

Thirty (30) days after you are hired, you are eligible for enrollment in the NetApp Non-Qualified Deferred Compensation Plan.  The objective of the Non-Qualified Deferred Compensation Plan is to provide you with an opportunity to defer income (annual base and/or incentive compensation) on a pre-tax basis.  You will receive additional details on this Plan from the HR Benefits Team within 30 days of your hire date.

 

As a technology leader, NetApp develops and works with sensitive technologies controlled under various United States export laws and associated federal regulations. Due to these controls, you will need to complete the NetApp Export Control Disclosure & Agreement, as it is sometimes necessary for NetApp to secure export licenses.  NetApp Human Resources or your hiring manager will notify you if a license is required, and whether NetApp will apply for a license on your behalf.  This offer of employment, or your continued employment (if applicable), is contingent upon NetApp obtaining any required license.  If NetApp decides not to apply for a license or if a license is not obtained within a reasonable period of time (as determined in NetApp’s sole discretion), NetApp reserves the right to rescind this employment offer or terminate your employment.

 

This offer of employment is contingent upon your being able to provide evidence of your authorization to work in the United States.  On your first day at NetApp, you are required to provide the Company with a completed Form I-9 (U.S. Employment Verification Eligibility), which you will receive separately, and the legally-required proof of your identity and authorization to work in the United States.

 

This offer of employment is also contingent upon your satisfactorily completing, agreeing to, signing, and otherwise fulfilling the following NetApp documents and associated clearance processes (as determined in NetApp’s sole discretion).  NetApp also reserves the right to rescind this employment offer or terminate your employment for failure to satisfactorily complete the following documents and processes:

 

	
 
	
1.
	
NetApp Code of Conduct & Conflicts of Interest Certification

	
 
	
2.
	
NetApp Insider Trading Policy & Consent

	
 
	
3.
	
NetApp Proprietary Information & Inventions Agreement and Disclosure

	
 
	
4.
	
NetApp Export Control Disclosure & Agreement

	
 
	
5.
	
NetApp Background Check

	
 
	
6.
	
Director and Officer Questionnaire

 

We are of the understanding that: (i) you have checked to make sure that you are under no legal obligations (by contract with a prior employer or otherwise) that would prevent or prohibit you from performing the duties of the position that you are being offered, (ii) you have had the opportunity to seek legal advice if it was necessary to address or evaluate your obligations in this regard, (iii) that you can represent to the Company that you are under no legal obligations that would prohibit you from performing the duties of the position being offered to you, and that (iv) you will not, in the performance of your duties to the Company, breach any non-disclosure, proprietary rights, non-competition, non-solicitation or other covenant in favor of any third party.  

 

The Company does not want you to bring with you any confidential or proprietary material of any former employee or to violate any other obligation to your former employers.  NetApp’s offer of employment is contingent upon your full compliance with the terms of any valid existing agreements with a prior employer or otherwise, and NetApp specifically reserves the right to revoke this offer or terminate your employment if for any reason you are contractually restricted from performing the full duties of the position being offered to you. 

 

Employment with NetApp is for no specific period of time.  As a result, either NetApp or you are free to terminate the employment relationship at any time for any reason, with or without notice or cause.  This is the full and complete agreement between NetApp and you on this term.  Although your job duties, title, compensation and benefits, as well as 

 

 

the Company's policies and procedures, may change from time-to-time, the "at-will" nature of your employment may only be changed in an express writing signed by the President of the Company and you.

 

This letter sets forth the terms of your employment with NetApp and supersedes any prior representations or agreements, whether written or oral.  This offer will expire on Thursday, January 30, 2020.   Please electronically sign the offer letter on or prior to the expiration date of this offer.

 

We look forward to having you join us.  Shortly you will receive a “Welcome” email with login instructions asking you to log in to the NetApp Pre-Boarding tool.  The tool provides a preview of NetApp’s values and culture and contains important forms that you must complete before your start date.  Please log on to www.netapp.com before your start date to catch up on news, press releases and other information related to the Company.  If you have any questions please your recruiter, or your hiring manager, at 408.822.6000.

 

Sincerely,

 

/s/ Debra C. McCowan

Debra C. McCowan

Chief Human Resources Officer

NetApp, Inc.

 

I have read, agree to and accept this employment offer: 

 

			
	
/s/ Michael Berry
	
 
	
Jan 30, 2020

	
Michael Berry
	
 
	
Date

 

My starting date will be: 3/16/20

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00313-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00313-of-00352.parquet"}]]