EXHIBIT 10.99
July 18, 2002
Dear Xxxxxx:
This letter confirms our agreement around the changes in your employment with
Sun Microsystems, Inc. For ease of reference, this letter will be referred to
here and in other documents as the "Transition Agreement."
1. Beginning May 1, 2003, you will move to part time status with a
corresponding reduction in your salary to fifty percent of your current base
salary. You will continue to provide services to Sun such as participating
in Sun's Leadership Institute, leading or participating in Sun customer
visits, consulting to internal Sun organizations, and other assignments as
deemed necessary and appropriate by Xxx's Chairman and CEO. You will
nominally report to Xxx's Chairman and CEO. As a practical matter your
liaison for administrative issues such as work balance and recording, travel
expense reports, etc, will be Xxxxxxxx Xxxxxxxxx.
2. Beginning May 1, 2003, all stock option vesting will cease and the unvested
portion of your Sun options will be canceled. This is a change from your
current stock option agreements. This will not have an impact on the
unexercised portion of your vested options.
3. You hereby waive participation in Sun's FY03 Officer and Director Bonus
Plan, Executive Management Group.
4. For the period from May l, 2003 through December 31, 2003 you will continue
to receive coverage under Xxx's flexible benefits policies.
5. On December 31, 2003, you will retire from Sun and will be eligible for the
benefits outlined in the attached document, "When you Retire from Sun." As
we've discussed, you will use all accrued vacation prior to May 1, 2003, and
any vacation payout upon your retirement will only be for vacation accrued
from May 1, 2003 through December 31, 2003.
6. You will be subject to the Employee Proprietary Information Agreement you
signed at hire, as well as the policies applicable to employees generally,
including Sun's Standards of Business Conduct. Both the Employee Proprietary
Information Agreement and the Standards of Business Conduct prohibit
employees from engaging in other employment which constitutes a conflict of
interest with their employment at the Company. To avoid such a conflict, in
the event you desire to work elsewhere in any capacity prior to your
termination date, whether as an employee, contractor or consultant, you must
notify me and obtain my written consent in advance of commencement of any
such work. Any such outside work, if approved, can be for no more than
half-time status. Should you commence such outside work without advance
disclosure and my consent, or if you perform such outside work on more than
half-time status, you will be considered as having voluntarily terminated
your employment effective on the date such work commences. In such case this
agreement will be
null and void as of such date and Sun will have no obligation to provide or
allow the things mentioned in this agreement. Upon termination you will have
90 days to exercise any vested options.
7. To receive the benefits stated in this Transition Agreement, please confirm
your receipt of this document by signing below, and by signing and returning
the attached Release and Waiver within 45 days.
Do not hesitate to contact me with any questions.
Sincerely,
/s/ Xxxxxxxx Xxxxxxxxx
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Xxxxxxxx Xxxxxxxxx
Executive Vice President and Chief Human Resources Officer
I agree with the above terms:
/s/ Xxxxxx Xxxxxx July 18, 2002
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Xxxxxx Xxxxxx Date
