Document:

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                                                                   EXHIBIT 10.11

August 11, 1999

Ms. Susan Bailey
5415 Preserve Drive
Greenwood Village, CO  80121

Dear Susan,

This revised offer letter supersedes our original offer letter to you dated July
19, 1999.

I am pleased to extend to you the position of Corporate Vice President,
U.S./Canada Sales and Service for Storage Technology Corporation, reporting
directly to Dave Weiss, Chairman, Chief Executive Officer and President. The
compensation and benefit package being offered with this corporate officer
position is outlined below, and is subject to approval of the Board of
Directors.

Your annual base salary will be $350,000, and you will be considered for a merit
increase effective January 2000. You will be eligible to participate in the
StorageTek MBO Plan. For 1999, your MBO target incentive will be 60% of your
base salary at the target level of performance, 120% at the stretch level, and
150% at the ultra stretch level. This MBO incentive plan is measured on
corporate performance and achievement of the MBO goals shared by all the
corporate officers. In addition, the MBO plan has a shareholder value add (SVA)
component which, if achieved, will add another 50% of the incentive amount
already earned from the basic MBO plan. A portion, 25%, of any MBO bonus will be
paid in the form of equity, including shares of common stock, or common stock
equivalents, as well the entire SVA component. The details of this plan are
contained in a separate MBO document. The 1999 MBO target will be guaranteed. It
will be prorated from your date of hire and paid on the normal payment schedule
in February 2000.

Also, subject to the approval of the Board of Directors, on your date of hire
you will receive 7,500 shares of StorageTek restricted common stock at par
value, $0.10 per share. These 7,500 shares will vest six years from the date of
grant, unless accelerated. The vesting can accelerate to the first, second, and
third anniversaries of the grant date through accomplishment of certain
objectives through the year. You and I will jointly define the performance
criteria for these restricted shares.

Further, subject to the approval of the Board of Directors, on your date of
hire, StorageTek will grant to you a stock option to purchase 500,000 shares of
StorageTek common stock, at a price to be determined on your hire date. The
option will be granted pursuant to the terms and conditions of the Company's
1995 Equity Participation Plan. 300,000 of the stock options will vest in
increments of 33%, 33%, and 34% on the first through the third anniversaries of
the grant. 200,000 of the stock options will vest on the sixth anniversary of
the date of grant; however, the vesting schedule for these options may be
accelerated based upon the appreciation of the StorageTek stock price. A portion
of the shares, 100,000 shares, will vest if the closing price of a share of
StorageTek common stock on the NYSE, for 20 consecutive trading days, equals or
exceeds 150% of the closing price of the stock on your date of hire, as reported
in The Wall Street Journal; and the remaining 100,000 shares will be accelerated
if the closing price of a share, for 20 consecutive trading days, equals or
exceeds 200% of the closing price of the stock on your date of hire.

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Ms. Susan Bailey
Offer Letter
August 11, 1999
Page 2

The 1995 Equity Plan includes provisions that require the employee to surrender
certain stock and gains realized upon the sale of stock during a period covering
six months prior to or after voluntary termination.

Subject to the approval of the Board of Directors and then current market
conditions, you may participate in the annual Long-Term Incentive Stock Option
Plan. The current allocation model projects an annual options grant of
approximately 50,000 shares to be allocated in February, 2000. The actual amount
will be based upon current methodology at the time of the grant.

Under the terms of the StorageTek employment agreement for corporate officers,
which will be negotiated with you following your hire, all unvested stock
options granted to you under the StorageTek option plans and shares of
restricted stock that you purchase will vest upon an involuntary termination as
defined in the draft StorageTek Corporation Employment Agreement for Corporate
Officers submitted for your review. This provision will be triggered by way of
example but not of limitation in the event of a change of control or, without
your consent, your relocation, a material reduction in your salary and bonus, or
a significant reduction of your duties.

As a corporate officer, you are expected to comply with the Corporate Officer
Ownership Guideline for corporate vice presidents, which is currently 2,500
shares. You have three (3) years to accumulate the shares. You need to retain
ownership of 2,500 shares or common stock equivalent, during the course of your
employment to comply with the Corporate Officer Ownership Guideline as amended
from time to time.

StorageTek offers a deferred compensation program. Under this program you may
defer up to 50% of your base salary and 75% of your bonus amount. Your deferred
income is credited with an interest rate equal to the ten-year T-Bill rate plus
2.5 points. You will be provided further information regarding this program.

You are also eligible to participate in the StorageTek Profit Sharing and Thrift
Plan (401(k) plan), which includes a corporate match of up to 3% of your base
salary and a provision for profit sharing up to 3.5% of base salary. The profit
share contribution is contingent on StorageTek's net income performance. Any
excess from the match and profit share above the ERISA limits will be made to
the deferred compensation program, should you so elect. This 3% match is made as
50% of the first 6% of employee contributions.

You will receive life insurance coverage in the amount of $1,050,000, or three
times your initial base salary. At the beginning of the next quarter after your
hire date, $1,000,000 of this coverage will be provided through an individually
owned life insurance coverage with the premium paid by the Company. Your group
term life insurance coverage will be $50,000. The individually owned policy is a
universal life policy that you own and that earns cash surrender value. A member
of StorageTek's compensation team will contact you regarding enrollment after
your employment date.

As a corporate vice president, you are eligible to receive severance benefits.
These benefits provide for a severance payment in an amount equal to 100% of
your annual base salary plus an amount equal to your incentive plan bonus
potential at the target level whether the Bonus would have been earned or not,
in the event of an involuntary termination other than for cause.

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Ms. Susan Bailey
Offer Letter
August 11, 1999
Page 3

In addition, the following executive perquisites are currently in effect for
corporate officers:

o    First class air travel domestically, business class internationally.
o    Financial and tax consulting expenses up to 1% of your base pay annually.
o    Car allowance for a leased-quality vehicle of $550.00 per month, plus
     reimbursement for maintenance and insurance.
o    Executive vacation program allowing vacation as business conditions
     dictate. There is no defined limit, and therefore, no vacation accrual.
o    Supplemental executive health insurance program which will reimburse
     qualified health and welfare expenses for you and your family which are not
     covered by our standard plan. This has an annual limitation of $5,000.00.
o    Should you at sometime during your employment elect to pursue your advanced
     degree (MBA) on a part-time or "executive" program basis, StorageTek agrees
     to provide for the expenses of the program, as you and your management
     agree to the structure or schedule of the program.

Should you accept this offer of employment, you will receive a signing bonus.
The gross amount of this bonus is $100,000 and is subject to normal federal and
local income tax provisions, it will be paid on your first or second regular
paycheck. If you voluntarily resign from StorageTek within 18 months of your
date of hire you agree to pay back the signing bonus in full and authorize the
Company to deduct this amount from your final paycheck.

This offer is contingent upon your signing StorageTek's proprietary rights
agreement and identification of pre-employment commitments form which are
enclosed for your review. These enclosures define your obligations to StorageTek
with regard to disclosure and dissemination of confidential information,
ownership of intellectual property, disclosure of existing obligations and
commitments, and non-raiding obligations.

As a condition of employment, you must successfully complete the StorageTek
pre-employment drug screen test administered by the company. Once you have
accepted StorageTek's offer and have chosen a date of hire, we will process your
paperwork for new hire orientation and will advise you of the orientation
meeting date and location.

Please review and sign the enclosed documents, and return them along with a
signed acceptance copy of this letter in the enclosed self-addressed stamped
envelope.

Upon acceptance of your offer letter, you will be asked to sign an Employment
Agreement for Corporate Officers that will further define benefits and
responsibilities which will include all of the terms and conditions contained in
the offer letter.

If you have any questions regarding the conditions of this offer, please do not
hesitate to contact me at 303-673-7199 or Karen Niparko at 303-673-3460. This
offer is valid through August 11, 1999. If you accept this offer, your date of
hire, as we discussed, will be August 13, 1999 and you will begin on a full-time
basis on September 7, 1999.

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Ms. Susan Bailey
Offer Letter
August 11, 1999
Page 4

I look forward to working with you as a key member of the StorageTek team!

Very truly yours,

David Weiss
Chairman, Chief Executive Officer and President

Enclosures:
         Acceptance Copy
         Proprietary Rights Agreement
         Identification of pre-Employment Commitment
         Employment Eligibility Verification Form

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Ms. Susan Bailey
Offer Letter
August 11, 1999
Page 5

I accept the offer as outlined above and understand that my acceptance does not
create an employment contract for a definite term or alter at-will employment.

------------------------------------------------
Susan Bailey                                Date

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Susan Bailey
Offer Letter
August 11, 1999
Page 6

APPROVALS:

--------------------------------------        ----------------------------------
David Weiss                       Date        Karen Niparko                 Date
Chairman, Chief Executive Officer             Chief Administrative Officer
and President<PAGE>   1
                                                                   EXHIBIT 10.12

December 31, 1999

Mr. James D. Bartlett
6408 Willow Springs Drive
Morrison,  CO   80465

RE: SEPARATION AGREEMENT

Dear Jim:

It is acknowledged that you will be involuntarily terminated from StorageTek
effective December 31, 1999 ("Termination Date"). This letter will confirm our
agreement concerning the termination of your employment with Storage Technology
Corporation ("StorageTek" or the "Company") as Corporate Vice President, and
Chief Marketing Officer. In that regard, this letter will define the terms of
your severance under this Separation Agreement (the "Separation Agreement").
This Separation Agreement supersedes all previous oral and written agreements
regarding your employment with StorageTek, provided however that the terms and
conditions of your Corporate Officer Employment Agreement dated October 13, 1999
(the "Employment Agreement"), to the degree that they do not conflict with the
terms and conditions of this Separation Agreement, shall remain in full force
and effect.

         SEPARATION: The Company will pay, within 30 days of the Termination
         Date, a separation payment equal to the amounts set forth in Sections
         5(a) and 5(c) of the Employment Agreement, including: one year's salary
         ($225,000.00), and one year's target MBO bonus for 1999 ($100,000.00).
         Your stock options will vest upon termination and the Company's right
         of repurchase on restricted stock will be void. Pursuant to the terms
         of StorageTek's Stock Option Plan, you will have 90 days from the
         Termination Date to exercise these options.

         In addition to the consideration recited above, the Company will (1)
         forgive all moneys that may be owed under the terms of your relocation
         package and sign-on bonus, and (2) the Promissory Note dated June 10,
         1999 including the gross up of any imputed interest accrued through the
         Termination Date. The payments recited in this Separation Agreement are
         contingent upon your execution and delivery to the Company a Settlement
         and Release Agreement substantially in the form attached as Exhibit A
         to your Employment Agreement.

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    James D. Bartlett
    December 31, 1999
    Page  -2-

         NO ADVERSE COMMENT: You agree that during your employment with the
         Company through the Termination Date and for at least one year
         following the Termination Date, you will not, except as specifically
         required by law or court process or consented to in writing by the
         Company, (a) communicate to any person or entity any adverse
         information, written or oral, concerning the Company, its officers,
         directors, employees, attorneys, agents or advisers (including any
         communication concerning information that related to the business,
         operations, prospects or affairs of the Company or any of its
         subsidiaries or affiliates) under the circumstances in which there is a
         reasonable possibility that such information might be publicly reported
         or disclosed or otherwise made available to third parties (regardless
         of whether the communication of such information is intended to have or
         cause that result is within your control), or (b) provide to any person
         (other than your attorney or accountant) or entity any information that
         concerns or related to the negotiations or circumstances leading to the
         execution of this Separation Agreement.

         NON-SOLICITATION: Per the terms of Section 8 of your Employment
         Agreement, you confirm that during the two-year period commencing with
         the Termination Date, you will not, directly, or indirectly, hire,
         solicit, or encourage any then-current Company employees to apply for
         employment with any person or entity (a) with which you are (or intend
         to be) employed, (b) by whom you or an entity in which you are employed
         or have a financial interest is engaged as a consultant, recruited,
         independent contractor or otherwise, or (c) in which you further
         covenant and agree that you will not provide to any other person or
         entity the names of or references on any person who is then employed by
         the Company.

         NON-COMPETE: Per the terms of Section 8 of your Employment Agreement,
         you confirm that for a period of one year from the Termination Date
         that you will not, either directly or indirectly, engage in any
         activity in competition with any product or service of the Company
         (said competitive activities to be determined and identified at the
         reasonable discretion of the Company), or harmful or contrary to the
         best interest of the Company, including accepting employment with or
         serving as a consultant to any entity that is in competition with the
         Company. In particular, you agree that competitor companies include,
         ATL/Quantum, Breece Hill, EMC, Hewlett-Packard, Sun Microsystems and
         IBM. However, with regard to IBM and HP, you may seek employment with
         those companies in their: (i) PC business units, (ii) consumer sales
         activities, (iii) printer operations, or (iv) such similar product
         areas or business units as StorageTek shall approve in writing, such
         approval not to be unreasonably withheld or delayed.

         COMPANY RELEASE: The Company hereby irrevocably and unconditionally
         releases and discharges you and your heirs, successors, and assigns
         (separately and collectively, "releasees"), jointly and individually,
         from any and all claims, known or unknown, which it, its past and
         present subsidiaries, divisions, officers, directors, agents,
         employees, successors, and assigns have or may have against releasees
         and any and all liability which releasees may have to it, whether
         denominated claims,

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    James D. Bartlett
    December 31, 1999
    Page  -3-

         demands, causes of action, obligations, damages or liabilities arising
         from any and all bases, however denominated, provided, however, that
         this release does not affect any claims which are based on releasees'
         willful acts, gross negligence or dishonesty in the performance of
         duties as an employee of the Company, nor any claims which may arise
         after the execution of this Agreement. The Company further agrees that
         it will not file or permit to be filed on its behalf any claim against
         you which is released hereby.

         NONDISCLOSURE: Unless otherwise required to do so by law, subpoena or
         court order, neither party will in any way communicate or discuss the
         terms of this Separation Agreement or the circumstances of your
         termination with any person, other than your attorneys. You understand
         that this nondisclosure provision applies particularly to current and
         former employees of the Company and the Company's customers, clients
         and vendors.

This Separation Agreement, shall be deemed for purposes of the Older Workers
Benefits Protection Act to have been delivered to you for your consideration on
January 12, 2000. You have 21 days from that date to decide whether or not to
accept this agreement. If you accept this agreement, you will then have seven
days from the date you sign this agreement and deliver an executed copy to the
Company during seven day period you may revoke your acceptance by notifying the
Company in writing of your desire to do so. No amounts otherwise due to you
under this Separation Agreement will be paid to you until the expiration of that
seven day revocation period.

Please sign both copies of this letter below, and the attached Settlement and
Release, indicating your acceptance, and return one copy for our files.

Accepted and Agreed:                           Very truly yours,
                                            STORAGE TECHNOLOGY CORP.

--------------------------                  ------------------------------
JAMES D. BARTLETT                           Victor Perez
                                            Executive Vice President,
                                            Chief Operating Officer

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                                    EXHIBIT A

                             SETTLEMENT AND RELEASE

1.      In exchange for payment of salary (in the amount of $225,000.00) and
        bonus (in the amount of $100,000.00) to James D. Bartlett ("Employee"),
        by Storage Technology Corporation ("Company") and other good and
        valuable consideration, including but not limited to, forgiveness for
        advances for relocation, sign-on bonus and cancellation of the
        Promissory Note of June 10, 1999, Employee hereby irrevocably and
        unconditionally releases and discharges the Company, its past and
        present subsidiaries, divisions, officers, directors, agents, employees,
        successors, and assigns (separately and collectively, "releasees")
        jointly and individually, from any and all claims, known or unknown,
        which he/she, his/her heirs, successors or assigns have or may have
        against releasees and any and all liability which releasees may have to
        him/her whether denominated claims, demands, causes of action,
        obligations, damages, or liabilities arising from any and all bases,
        however denominated, including but not limited to, any claims of
        discrimination under the Age Discrimination in Employment Act ("ADEA"),
        the Older Workers Benefit Protection Act, the Rehabilitation Act, the
        Family Medical Leave Act, the Americans with Disabilities Act, Title VII
        of the Civil Rights Act of 1964, the Civil Rights Act of 1991 or any
        federal or state civil rights act, claims for wrongful discharge, breach
        of contract, or for damages under any other federal, state or local law,
        rule or regulation, or common law under any theory; provided, however,
        that this release does not affect (1) any claims for benefits which have
        vested or shall vest on or before the effective date of this Settlement
        and Release ("Release") under any of the Company's benefit plans; (2)
        any claims for indemnification for acts of Employee which have occurred
        or may occur as an officer or employee of the Company; or (3) any claims
        which may arise after the execution of this Release. This release
        specifically excepts any claim Employee may wish to make for
        unemployment compensation, and the Company agrees not to contest any
        claim made by Employee for unemployment compensation. This release is
        for any relief, no matter how denominated, including, but not limited
        to, back pay, front pay, compensatory damages, punitive damages, or
        damages for pain and suffering. Employee further agrees that he will not
        file or permit to be filed on his behalf any such claim, will not permit
        himself to be a member of any class seeking relief against the releasees
        and will not counsel or assist in the prosecution of claims against the
        releasees, whether those claims are on behalf of himself or others,
        unless he is under a court order to do so.

2.      Employee agrees that by signing this Release, he is giving up the right
        to sue for age discrimination, and that under this Release Employee
        shall receive consideration to which he is not otherwise entitled, and
        would not receive but for his release of rights under the ADEA. Employee
        has up to twenty-one (21) days after delivery of this Release to
        consider whether to sign this Release. Employee agrees that, after he
        has signed and delivered this Release to the Company, this Release will
        not be effective or enforceable until the end of a seven (7) day
        revocation period beginning the day after the Employee signs this
        Release, and that Employee will not receive the severance payment due
        under the Employment Agreement until this seven-day period has expired.
        During this seven-day period, Employee may revoke this Release, without
        reason and in his sole judgment, but he may do so only by delivering a
        written statement of revocation to the Company to the attention of
        General Counsel. If the Company does

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        not receive a written statement of revocation from Employee by the end
        of the revocation period, then this Release will become legally
        enforceable and Employee may not thereafter revoke this Release.

3.      Employee agrees that this Release shall be governed by federal law and
        the internal laws of the State of Colorado, irrespective of the choice
        of law rules of any state.

ACKNOWLEDGMENT:

Employee's signature below acknowledges that he has read this document fully,
that he understands and agrees to its contents, that he understands that it is a
legally binding document, and that he has been advised to consult a lawyer of
his choosing before signing this Release, and has had the opportunity to do so.

--------------------------                  -----------------------------------
Date                                                JAMES D. BARTLETT

This Release presented to Employee on                           .
                                      --------------------------

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