Sample Business Contracts

Employment Agreement - HNC Software Inc. and Mary Burnside

Employment Forms

  • Employment Agreement. Employers can customize an employment agreement that states the salary, benefits, working hours and other important provisions for their new or existing employee.
  • Consulting Agreement. Answer simple questions to build a contract with a consultant. Specify the services rendered, when payment is due, as well as IP rights.
  • Commission Agreement. Employers who compensate their sales employees based on commissions can prepare an agreement to reduce misunderstandings by specifying the base salary and how commissions are calculated.
  • Executive Employment Agreement. Companies may offer their business executives a contract that is different from the one provided to their regular employees. Executive employment agreements may be more complex because the compensation structure may include a combination of salary and commissions, provide for bonuses based on sales, stock or other financial targets, and include non-compete, confidentiality and severance provisions.
  • Sales Representative Contract. Independent sales representatives offer companies the potential to increase the sale of products or services without the burden of increasing headcount. Both parties should understand how commissions are calculated, when commissions will be paid, as well as how the representative will treat confidential information from the company and whether the representative may also sell a competing line of products or services.
  • More Employment Agreements

Sponsored Links

[HNC Software LOGO]

April 11, 2001

Mary Burnside

Dear Mary,

On behalf of HNC Software I am extremely pleased to offer you the regular
full-time exempt position of Chief Operating Officer reporting to me. Your
monthly salary will be $27,071.33, payable bi-weekly, which annualizes to
$325,000.00 per year gross. In addition you will be eligible to participate in
the Executive Bonus Plan with a bonus target of 50% of your base salary paid
bi-annually. All compensation will be subject to applicable withholdings. We
anticipate a start date of May 14, 2001.

Upon your acceptance and commencement of employment with HNC and approval by the
Board of Directors of HNC, you will be granted an option for seven years to
purchase 100,000 shares of HNC Common stock at the current fair market value
which will be the closing NASDAQ price on your date of hire or the date of the
compensation committee meeting, whichever is later. The option shares will vest
over a four (4) year period (commencing on your date of hire) at the rate of 25%
of the option shares per year, subject to your continued employment. Twenty-five
percent of the shares subject to your option will vest on the first anniversary
date of your date of hire. The remaining shares subject to your options will
begin vesting ratably on a monthly basis over the following thirty-six months.
You will also have the opportunity to have your options accelerated in 25%
increments if the stock price reaches the following targets: $39, $53, $71 or
$96 per share. The options will vest if the stock price remains at or above the
referenced level for a period of 20 consecutive trading days. The options will
have a term of 7 years, subject to your continued employment.

Not withstanding the foregoing paragraph and anything to the contrary in the
Option Documents your initial option grant, the following provisions shall

     1.   In the event of a Change in Control (as defined below), and if, on or
          subsequent to the closing date of the transaction(s) giving rise to
          such Change in Control you are either (i) terminated without Cause, or
          (ii) Involuntarily Terminated (as defined below) and opt not to
          continue your employment, then, at your option, either (A) the total
          number of shares subject to your initial one hundred thousand
          (100,000) share option grant that are then unvested, if any, shall
          vest and become immediately exercisable upon the date that your
          employment with HNC Software (or its successor) is terminated, or (B)
          you will be entitled to receive payment in the amount equal to twelve
          (12) months of your base salary.

     2.   In the event that you are either (i) terminated without Cause (as
          defined below), or (ii) Involuntarily Terminated (as defined below)
          and opt not to continue your employment, then you will be entitled to
          receive payment in an amount equal to twelve (12) months of your base

For purposes thereof, the following definitions shall apply: "Cause" shall
mean: (i) your repeated and continued failure to perform your duties and
responsibilities in good faith to the best of your ability after written notice
thereof from HNC Software; (ii) your engaging in knowing and intentional
illegal conduct; or (iii) your being convicted of a felony, of committing an
act of dishonesty or fraud or misappropriating property. "Change in Control"
shall mean (i) a merger of HNC Software with or into another corporation, or
(ii) a transaction or series of transactions involving or the sale of all the
voting stock or all or substantially all of the assets of HNC Software where,
in any such event, the shareholders of HNC

<PAGE>   2
Software immediately preceding such transaction(s) do not hold at least a
majority of the voting stock of the entity surviving the merger (in the case of
clause (i) or purchasing the assets or stock (in the case of clause (ii).
"Involuntarily Terminated" shall mean (i) without your consent, a significant
reduction of your duties, title, position or responsibilities relative to your
duties, position or responsibilities in effect immediately prior to such
reduction (including a material change in your reporting structure, which shall
include, but not be limited to, your no longer reporting to the Chief Executive
Officer of HNC Software); (ii) without your consent, a substantial reduction,
without good business reasons, of the facilities and perquisites (including
office space and location) available to you immediately prior to such
reduction; (iii) without your consent, a reduction of your base salary and
target bonus as in effect immediately prior to such reduction; or (iv) without
your consent, your relocation to a facility or location more than fifty (50)
miles from your location immediately prior to such relocation.

In the event that the benefits provided for in this letter, when aggregated
with any other payments or benefits received by you, would (i) constitute
"parachute payments" within the meaning of Section 280G of the Code, and (ii)
would be subject to the excise tax imposed by Section 4999 of the Code (the
"Excise Tax"), then your benefits under this letter shall be either (a)
delivered in full, or (b) delivered as to such lesser extent which would result
in no portion of such benefits being subject to the Excise Tax, whichever of
the foregoing amounts, taking into account the applicable federal, state and
local income taxes and the Excise Tax, results in the receipt by you on an
after-tax basis, of the greatest amount of benefits, notwithstanding that all
or some portion of such benefits may be taxable under Section 4999 of the Code.
All determinations required to be made hereunder shall be made by the primary
independent public accounting firm of HNC Software, or any other nationally
recognized accounting firm reasonably acceptable to you and HNC Software. HNC
Software shall cause the Accounting Firm to provide detailed supporting
calculations of its determinations to you and to HNC Software. All fees and
expenses of the Accounting Firm shall be borne by HNC Software. For purposes of
making the calculations required by this paragraph, the Accounting Firm may
make reasonable assumptions and approximations concerning applicable taxes and
may rely on reasonable, good faith interpretations concerning the application
of Sections 280G and 4999 of the Internal Revenue Code.

In addition to your compensation plan, HNC Software offers a competitive
benefits package (including the choice of several medical plans, dental,
vision, prescription, disability and life insurance). Your participation in
these plans is subject to the applicable terms and conditions of each of such
plans and are generally effective on date of hire. We offer 3 weeks vacation
per year, as well as 9 paid holidays. We also offer a 401K savings plan.
Details about these benefits are available for your review. You will also be
eligible for relocation assistance in order to help your transition to San
Diego. HNC Software may modify benefits from time to time, as it deems

Your employment with HNC Software is "at will". You may terminate your
employment with HNC Software at any time and for any reason whatsoever simply
by notifying HNC. Likewise, HNC may terminate your employment at any time and
for any reason whatsoever, with or without cause of advance notice, subject to
the preceding terms detailed in this letter. This at-will employment
relationship cannot be changed except as expressly provided in writing and
signed by an officer of HNC Software.

This employment offer is contingent on:

     1.   Proof of your identity and eligibility to work in the United States.
          You will receive an I-9 Form for your completion on your first day of
          employment, in accordance with the Immigration Reform and Control Act.

     2.   Completion of satisfactory reference and background checks

     3.   Your signing and returning the enclosed Invention Assignment and
          Confidentiality Agreement, Code of Ethics Policy and employment

     4.   Signing and returning this offer letter by April 16, 2001, at which
          point this offer expires
<PAGE>   3
As an employee of HNC Software, you will be required to comply with all Company
policies and procedures. We especially want to emphasize our policy prohibiting
unlawful harassment and discrimination and our drug and alcohol policies.
Violations may lead to immediate termination of employment.

Mary, we sincerely appreciate your interest in HNC and hope that you will
accept our offer. If you wish to accept this offer, please sign below, return
the letter to us along with the enclosures, keep a copy for yourself, and
welcome aboard!


/s/ John Mutch (mm)
John Mutch
Chief Executive Officer

I have read and accept this employment offer and expect to commence employment
on May 15, 2001.

Dated: April 18, 2001    Employee Signature: /s/ Mary Burnside
       --------------                        -----------------