{"id":40115,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/mark-hurd-employment-agreement.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"mark-hurd-employment-agreement","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/compensation\/mark-hurd-employment-agreement.html","title":{"rendered":"Mark Hurd Employment Agreement"},"content":{"rendered":"<p>MARK HURD EMPLOYMENT AGREEMENT<\/p>\n<p>This Agreement is entered into as of March 29, 2005 by<br \/>\nand between Hewlett-Packard Company (the \u0093Company\u0094) and Mark Hurd (\u0093Executive\u0094).<\/p>\n<p>1.                                       <u>Duties<br \/>\nand Scope of Employment<\/u>.<\/p>\n<p>(a)                                  <u>Positions<br \/>\nand Duties<\/u>.  As of April 1, 2005 (the<br \/>\n\u0093Effective Date\u0094), Executive will serve as President and Chief Executive<br \/>\nOfficer, reporting to the Company\u0092s Board of Directors (the \u0093Board\u0094).  Executive will render such business and<br \/>\nprofessional services in the performance of his duties, consistent with<br \/>\nExecutive\u0092s position within the Company, as will reasonably be assigned to him<br \/>\nby the Board.  The period Executive is<br \/>\nemployed by the Company under this Agreement is referred to herein as the \u0093Employment<br \/>\nTerm\u0094.<\/p>\n<p>(b)                                 <u>Board<br \/>\nMembership<\/u>.  Executive will be<br \/>\nappointed to serve as a member of the Board as of the Effective Date.  Thereafter, at each annual meeting of the<br \/>\nCompany\u0092s stockholders during the Employment Term, the Company will nominate<br \/>\nExecutive to serve as a member of the Board.<br \/>\nExecutive\u0092s service as a member of the Board will be subject to any<br \/>\nrequired stockholder approval.  Upon the<br \/>\ntermination of Executive\u0092s employment for any reason, Executive will be deemed<br \/>\nto have resigned from the Board (and any boards of subsidiaries) voluntarily,<br \/>\nwithout any further required action by the Executive, as of the end of the<br \/>\nExecutive\u0092s employment and Executive, at the Board\u0092s request, will execute any<br \/>\ndocuments necessary to reflect his resignation.<\/p>\n<p>(c)                                  <u>Obligations<\/u>.  During the Employment Term, Executive will<br \/>\ndevote Executive\u0092s full business efforts and time to the Company and will use<br \/>\ngood faith efforts to discharge Executive\u0092s obligations under this Agreement to<br \/>\nthe best of Executive\u0092s ability.  For the<br \/>\nduration of the Employment Term, Executive agrees not to actively engage in any<br \/>\nother employment, occupation, or consulting activity for any direct or indirect<br \/>\nremuneration without the prior approval of the Board (which approval will not<br \/>\nbe unreasonably withheld); provided, however, that Executive may, without the<br \/>\napproval of the Board, serve in any capacity with any civic, educational, or<br \/>\ncharitable organization, provided such services do not interfere with Executive\u0092s<br \/>\nobligations to Company.  This Agreement<br \/>\nwill not take effect until Executive obtains an agreement, in a form acceptable<br \/>\nto the Company, from the Board of Directors of NCR Corporation (the \u0093Current<br \/>\nEmployer\u0094) stating that any non-competition agreements entered into between<br \/>\nExecutive and the Current Employer, including, but not limited to, the letter<br \/>\nagreement dated March 6, 2003 between Executive and the Current Employer will<br \/>\nnot be enforced by the Current Employer during his employment with Company.<\/p>\n<p>2.                                       <u>At-Will<br \/>\nEmployment<\/u>.  Executive and the<br \/>\nCompany agree that Executive\u0092s employment with the Company constitutes \u0093at-will\u0094<br \/>\nemployment.  Executive and the Company<br \/>\nacknowledge that this employment relationship may be terminated at any time,<br \/>\nupon written notice to the other party, with or without good cause or for any<br \/>\nor no cause, at the option either of the Company or Executive.  However, as described in this Agreement,<br \/>\nExecutive may be entitled to severance benefits depending upon the<br \/>\ncircumstances of Executive\u0092s termination of employment.<\/p>\n<p>3.                                       <u>Term<br \/>\nof Agreement<\/u>.  This Agreement will<br \/>\nhave an initial term of four (4) years commencing on the Effective Date.\n<\/p>\n<p>4.                                       <u>Compensation<\/u>.<\/p>\n<p>(a)                                  <u>Base<br \/>\nSalary<\/u>.  As of the Effective Date,<br \/>\nthe Company will pay Executive an annual salary of $1,400,000 as compensation<br \/>\nfor his services (such annual salary, as is then effective, to be referred to<br \/>\nherein as \u0093Base Salary\u0094).  The Base<br \/>\nSalary will be paid periodically in accordance with the Company\u0092s normal<br \/>\npayroll practices and be subject to the usual, required withholdings.  Executive\u0092s salary will be subject to review<br \/>\nby the HR\/Compensation Committee of the Board, or any successor thereto (the \u0093Committee\u0094)<br \/>\nnot less than annually, and adjustments will be made in the discretion of the<br \/>\nCommittee.  Notwithstanding the<br \/>\nforegoing, the Base Salary will not be reduced other than pursuant to a<br \/>\nreduction that also is applied to substantially all other executive officers of<br \/>\nthe Company and that reduces the Base Salary by a percentage reduction that is<br \/>\nno greater than the percentage reduction applied to substantially all other<br \/>\nexecutive officers.<\/p>\n<p>(b)                                 <u>Annual<br \/>\nIncentive<\/u>.  Executive will be<br \/>\neligible to receive annual cash incentives payable for the achievement of<br \/>\nperformance goals established by the Committee.<br \/>\nExecutive\u0092s target annual incentive will be at least 200% of Base Salary,<br \/>\nwith a maximum target opportunity of 600% of Base Salary assuming performance<br \/>\ngoals are achieved.  The actual earned annual<br \/>\ncash incentive, if any, payable to Executive for any performance period will<br \/>\ndepend upon the extent to which the applicable performance goal(s) specified by<br \/>\nthe Committee are achieved and will be decreased or increased for under- or<br \/>\nover-performance.  Except as specifically<br \/>\nprovided herein, Executive\u0092s annual cash incentive will be subject to the terms<br \/>\nand conditions of the Company\u0092s Pay for Results Plan or any successor thereto,<br \/>\nincluding payment date and continued employment obligations.  Currently these incentives are calculated and<br \/>\npaid on a fiscal half-year basis.  For<br \/>\nthe second half of fiscal year 2005 and the first half of fiscal year 2006, all<br \/>\nperformance goals will be deemed to have been achieved at target.  Any incentive earned during the first half of<br \/>\nfiscal 2005 will be pro-rated based on the hire date (calculated by multiplying<br \/>\nany annual incentive earned by Executive by a fraction with a numerator equal<br \/>\nto the number of days between the Effective Date and the end of the calendar<br \/>\nyear and a denominator equal to 365).<\/p>\n<p>(c)                                  <u>Long-Term<br \/>\nIncentives<\/u>.<\/p>\n<p>(i)             <u>Long-Term<br \/>\nOngoing Performance Cash Incentive<\/u>.<br \/>\nExecutive will be eligible to receive long-term performance cash incentives<br \/>\nat a level at least equal to 300% of Base Salary with a maximum award level of<br \/>\n900% of Base Salary, pro-rated for mid-plan entry in all existing cycles.  Any long-term incentive will be subject to<br \/>\nterms and conditions of the Company\u0092s Long-Term Cash Performance Plan (which is<br \/>\npart of the Company\u0092s 2004 Stock Incentive Plan), or any successor thereto, and<br \/>\nthe Committee\u0092s standard terms and conditions for the applicable type of award,<br \/>\nincluding vesting criteria such as continued service or performance objectives.  For the first year of the first full<br \/>\nperformance cycle (that begins May 1, 2005), it will be assumed that any<br \/>\napplicable performance goals were achieved at target.<\/p>\n<p>(ii)          <u>Stock<br \/>\nOptions<\/u>.  Executive will be granted a<br \/>\nstock option to purchase 700,000 shares of Company common stock at an exercise<br \/>\nprice equal to the average of the highest and lowest quoted sales price on the<br \/>\nNew York Stock Exchange (\u0093NYSE\u0094) for the common stock of<\/p>\n<p align=\"center\">2<\/p>\n<p>the<br \/>\nCompany on the Effective Date (the \u0093Initial<br \/>\nOption\u0094).  The Initial Option,<br \/>\nexcept as provided in this Agreement, will be subject to the terms, definitions<br \/>\nand provisions of the Company\u0092s 2004 Stock Incentive Plan (the \u00932004 Plan\u0094) and<br \/>\nwill be scheduled to vest at a rate of twenty-five percent (25%) on each<br \/>\nanniversary of the grant over four (4) years assuming Executive\u0092s continued<br \/>\nemployment with the Company.  If<br \/>\nExecutive is terminated for reasons other than Cause, Executive\u0092s Initial<br \/>\nOption will become fully vested and will remain exercisable until the earlier<br \/>\nof the date provided in the applicable stock option agreement or under any<br \/>\napplicable work force reduction policy adopted by the Company from time to time.  The Initial Option will have a maximum term<br \/>\nof eight (8) years.<\/p>\n<p>(d)                                 <u>One-Time<br \/>\nMake-Up Grants: Restricted Stock and Options<\/u>.  In order to make up for compensation<br \/>\nforfeited from his former employer when Executive joins the Company, Executive<br \/>\nwill be granted a stock option and shares of restricted common stock of the<br \/>\nCompany.  The stock option will cover<br \/>\n450,000 shares of Company common stock at an exercise price equal to the<br \/>\naverage of the highest and lowest quoted sales price on the NYSE for the common<br \/>\nstock of the Company on the Effective Date.<br \/>\nThe restricted stock grant will be for 400,000 shares of Company common<br \/>\nstock.  The restricted stock and option<br \/>\nwill be granted under the Company\u0092s 2004 Plan, and except as provided in this<br \/>\nAgreement will be governed by the terms of the 2004 Plan and will be scheduled<br \/>\nto vest at a rate of thirty-three and a third percent (33.3%) on each<br \/>\nanniversary of the grant over three (3) years assuming Executive\u0092s continued<br \/>\nemployment with the Company.  The option<br \/>\nwill have a maximum term of eight (8) years. <\/p>\n<p>If Executive is terminated for reasons other than Cause, Executive\u0092s<br \/>\nstock option will become fully vested and will remain exercisable until the<br \/>\nearlier of the date provided in the applicable stock option agreement or under<br \/>\nany applicable work force reduction policy adopted by the Company from time to<br \/>\ntime.  Upon his termination without<br \/>\nCause, an additional number of shares of Executive\u0092s unvested restricted stock<br \/>\nwill vest on a pro-rata basis.  This will<br \/>\nbe calculated separately for each vesting tranche by (i) multiplying the number<br \/>\nof unvested shares in the tranche by a fraction with a numerator equaling the<br \/>\nnumber of whole months that have elapsed from the Effective Date to the Date of<br \/>\nTermination and a denominator equal to twelve (12) for those shares scheduled<br \/>\nto vest during the first year of the grant, a denominator equal to twenty-four<br \/>\n(24) for those shares scheduled to vest during the second year of the grant and<br \/>\na denominator equal to thirty-six (36) for those shares scheduled to vest<br \/>\nduring the third year of the grant and then (ii) subtracting the number of<br \/>\nshares in that tranche that previously vested.<\/p>\n<p>(e)                                  <u>Signing<br \/>\nBonus<\/u>.  Within thirty (30) days of<br \/>\nthe Effective Date, Executive will receive a signing bonus equal to $2,000,000<br \/>\n(the \u0093Signing Bonus\u0094).  If Executive is<br \/>\nterminated for Cause within two (2) years of the Effective Date, Executive will<br \/>\nreturn to the Company an amount equal to the Signing Bonus multiplied by a<br \/>\nfraction with the numerator equaling the number of whole months that have<br \/>\nelapsed from the Effective Date to the Date of Termination and a denominator<br \/>\nequal to twenty-four (24).<\/p>\n<p>(f)                                    <u>Price<br \/>\nProtection<\/u>.  Executive will be<br \/>\nreimbursed for declines in the per share fair market value of the Current<br \/>\nEmployer\u0092s common stock (\u0093Price Protection\u0094).<br \/>\nThe Price Protection will only apply to 850,184 shares covered by<br \/>\nExecutive\u0092s vested options issued by the Current Employer prior to March 24,<br \/>\n2005.  The Price Protection is limited to<br \/>\ndeclines of value of twenty percent (20%) or less.  If the decline of value is greater than<br \/>\ntwenty percent (20%), Executive will be reimbursed only for the first twenty<br \/>\npercent (20%) of the common stock\u0092s decline in value.  For purposes of this section, \u0093per share fair<br \/>\nmarket value\u0094 will mean the highest<br \/>\nclosing price during the<\/p>\n<p align=\"center\">3<\/p>\n<p>five (5) full trading days on the NYSE immediately<br \/>\npreceding the public announcement of Executive\u0092s resignation from his current<br \/>\nposition.  The Price Protection will<br \/>\nend and be paid upon the earlier of Executive\u0092s sale of the underlying shares<br \/>\nof common stock or ninety (90) days after Executive\u0092s last day of employment<br \/>\nwith the Current Employer.<\/p>\n<p>(g)                                 <u>Relocation<br \/>\nBenefit<\/u>.  In accordance with Company\u0092s<br \/>\nrelocation policy, Executive will receive the standard Company relocation<br \/>\npackage with the following adjustments: (i) temporary housing for up to one (1)<br \/>\nyear; (ii) no limit on the weight of household goods shipped, and the number of<br \/>\ncars covered will be three (3); (iii) a four (4) year mortgage interest<br \/>\nsubsidy; (iv) the storage of household goods for up to one (1) year, and (v) a<br \/>\nrelocation allowance of $2,750,000 (the \u0093Relocation Allowance\u0094), with Executive<br \/>\nreceiving such Relocation Allowance in lieu of the relocation allowance<br \/>\notherwise provided for under the Company\u0092s relocation policy.<\/p>\n<p>5.                                       <u>Employee<br \/>\nBenefits<\/u>.<\/p>\n<p>(a)                                  <u>Generally<\/u>.   Executive will be eligible to participate in<br \/>\naccordance with the terms of all Company employee benefit plans, policies, and<br \/>\narrangements that are applicable to other executive officers of the Company, as<br \/>\nsuch plans, policies, and arrangements may exist from time to time.<\/p>\n<p>(b)                                 <u>Vacation<\/u>.  Executive will be entitled to receive paid<br \/>\nannual vacation in accordance with Company policy for other senior executive<br \/>\nofficers.  In no event will Executive<br \/>\nreceive less than twenty-five (25) days of paid vacation time per calendar<br \/>\nyear.<\/p>\n<p>(c)                                  <u>Perquisites<\/u>.  Executive will receive Company perquisites on<br \/>\nat least the same level as the Company\u0092s other senior executive officers.<\/p>\n<p>(d)                                 <u>Security<\/u>.  The Company will provide Executive with<br \/>\nappropriate home security in accordance with standard market practice.<\/p>\n<p>6.                                       <u>Expenses<\/u>.  The Company will reimburse Executive for<br \/>\nreasonable travel, entertainment, and other expenses incurred by Executive in<br \/>\nthe furtherance of the performance of Executive\u0092s duties hereunder, in<br \/>\naccordance with the Company\u0092s expense reimbursement policy as in effect from<br \/>\ntime to time.<\/p>\n<p>7.                                       <u>Termination<br \/>\nof Employment<\/u>.  In the event<br \/>\nExecutive\u0092s employment with the Company terminates for any reason, Executive<br \/>\nwill be entitled to any (a unpaid Base Salary accrued up to the effective<br \/>\ndate of termination, (b unpaid, but earned and accrued annual incentive for<br \/>\nany completed fiscal year as of his termination of employment, (c pay for<br \/>\naccrued but unused vacation that the Company is legally obligated to pay<br \/>\nExecutive, (d benefits or compensation as provided under the terms of any<br \/>\nemployee benefit and compensation agreements or plans applicable to Executive,<br \/>\n(e unreimbursed business expenses required to be reimbursed to Executive,<br \/>\nand (f rights to indemnification Executive may have under the Company\u0092s<br \/>\nArticles of Incorporation, Bylaws, the Employment Agreement, or separate<br \/>\nindemnification agreement, as applicable. <\/p>\n<p>In addition, if the termination is by the Company without Cause,<br \/>\nExecutive will be entitled to the amounts and benefits specified in<br \/>\nSection 8.<\/p>\n<p align=\"center\">4<\/p>\n<p>8.                                       <u>Severance<\/u>.<\/p>\n<p>(a)                                  <u>Termination<br \/>\nWithout Cause<\/u>.  If Executive\u0092s employment<br \/>\nis terminated by the Company without Cause, then, subject to Section 9,<br \/>\nExecutive will be eligible to participate in the then existing Severance<br \/>\nProgram for Executives (the \u0093Severance Program\u0094), and will receive any \u0093banked\u0094<br \/>\namounts in the Long-Term Cash Performance Plan.<br \/>\nIt is understood that the Severance Program is reviewed annually by the<br \/>\nCommittee.  In addition, and<br \/>\nnotwithstanding the terms of the Severance Program, if, (i) Executive\u0092s duties<br \/>\nand responsibilities as Chief Executive Officer of the Company are<br \/>\nsubstantially reduced without his consent, or (ii) Executive is not reelected<br \/>\nto the Board during the Employment Term, then Executive will be deemed to have<br \/>\nbeen terminated without Cause.  Notwithstanding the foregoing, the amount of<br \/>\nseverance benefits received by Executive under this Section 8(a) will not<br \/>\nexceed 2.99 times the sum of Executive\u0092s Base Salary and bonus, unless such<br \/>\nbenefits are approved by the Company\u0092s stockholders pursuant to the Company\u0092s<br \/>\nestablished policy.<\/p>\n<p>(b)                                 <u>Termination<br \/>\nfor Cause<\/u>.  If Executive\u0092s employment<br \/>\nis terminated for Cause by the Company, then, except as provided in Section 7,<br \/>\n(i all further vesting of Executive\u0092s outstanding equity awards will<br \/>\nterminate immediately; (ii all payments of compensation by the Company to<br \/>\nExecutive hereunder will terminate immediately, and (iii Executive will<br \/>\nbe eligible for severance benefits only in accordance with the Company\u0092s then<br \/>\nestablished plans, programs, and practices.<\/p>\n<p>(c)                                  <u>Other<br \/>\nTermination Including due to Death or Disability<\/u>.  If Executive\u0092s employment terminates for any<br \/>\nother reason, including but not limited to, by reason of death or Disability,<br \/>\nthen, except as provided in Section 7, (i Executive\u0092s outstanding equity<br \/>\nawards will terminate in accordance with the terms and conditions of the<br \/>\napplicable award agreement(s); (ii all payments of compensation by the<br \/>\nCompany to Executive hereunder will terminate immediately, and<br \/>\n(iii Executive will be entitled to receive benefits only in accordance<br \/>\nwith the Company\u0092s then established plans, programs, and practices.<\/p>\n<p>9.                                       <u>Conditions<br \/>\nto Receipt of Severance; No Duty to Mitigate<\/u>.<\/p>\n<p>(a)                                  <u>Nondisparagement<\/u>.  During the Employment Term and for the twelve<br \/>\n(12) months thereafter, Executive will not knowingly disparage, criticize, or<br \/>\notherwise make any derogatory statements regarding the Company, its directors,<br \/>\nor its officers.  The foregoing<br \/>\nrestrictions will not apply to any statements that are made truthfully in<br \/>\nresponse to a subpoena or other compulsory legal process.<\/p>\n<p>(b)                                 <u>Other<br \/>\nRequirements<\/u>.  Executive\u0092s receipt of<br \/>\ncontinued severance payments will be subject to Executive continuing to comply<br \/>\nwith the terms of the Confidential Information Agreement as amended by this<br \/>\nAgreement.<\/p>\n<p>(c)                                  <u>No Duty to Mitigate<\/u>. <\/p>\n<p>Executive will not be required to mitigate the amount of any payment<br \/>\ncontemplated by this Agreement, nor will any earnings that Executive may<br \/>\nreceive from any other source reduce any such payment.<\/p>\n<p>10.                                 <u>Definitions<\/u>.<\/p>\n<p>(a)                                  <u>Cause<\/u>.  For purposes of this Agreement, \u0093Cause\u0094 will<br \/>\nhave the same defined meaning as in the Severance Program.<\/p>\n<p align=\"center\">5<\/p>\n<p>(b)                                 <u>Disability<\/u>.  For purposes of this Agreement, Disability will<br \/>\nmean Executive\u0092s absence from his responsibilities with the Company on a<br \/>\nfull-time basis for 180 calendar days in any consecutive twelve (12) months<br \/>\nperiod as a result of Executive\u0092s mental or physical illness or injury.<\/p>\n<p>11.                                 <u>Indemnification<\/u>.  Subject to applicable law, Executive will be<br \/>\nprovided indemnification to the maximum extent permitted by the Company\u0092s<br \/>\nbylaws and Certificate of Incorporation, including, if applicable, any<br \/>\ndirectors and officers insurance policies, with such indemnification to be on<br \/>\nterms determined by the Board or any of its committees, but on terms no less<br \/>\nfavorable than provided to any other Company executive officer or director and<br \/>\nsubject to the terms of any separate written indemnification agreement.<\/p>\n<p>12.                                 <u>Confidential<br \/>\nInformation<\/u>.  Executive will execute<br \/>\nthe Company\u0092s Agreement Regarding Confidential Information and Proprietary<br \/>\nDevelopments appended hereto as <u>Exhibit A<\/u> (the \u0093Confidential Information<br \/>\nAgreement\u0094).<\/p>\n<p>13.                                 <u>Assignment<\/u>.  This Agreement will be binding upon and inure<br \/>\nto the benefit of (a the heirs, executors, and legal representatives of<br \/>\nExecutive upon Executive\u0092s death, and (b any successor of the<br \/>\nCompany.  Any such successor of the<br \/>\nCompany will be deemed substituted for the Company under the terms of this<br \/>\nAgreement for all purposes.  For this<br \/>\npurpose, \u0093successor\u0094 means any person, firm, corporation, or other business<br \/>\nentity which at any time, whether by purchase, merger, or otherwise, directly<br \/>\nor indirectly acquires all or substantially all of the assets or business of<br \/>\nthe Company.  None of the rights of<br \/>\nExecutive to receive any form of compensation payable pursuant to this<br \/>\nAgreement may be assigned or transferred except by will or the laws of descent<br \/>\nand distribution.  Any other attempted<br \/>\nassignment, transfer, conveyance, or other disposition of Executive\u0092s right to<br \/>\ncompensation or other benefits will be null and void.<\/p>\n<p>14.                                 <u>Notices<\/u>.  All notices, requests, demands, and other<br \/>\ncommunications called for hereunder will be in writing and will be deemed given<br \/>\n(a on the date of delivery if delivered personally, (b one (1) day<br \/>\nafter being sent overnight by a well established commercial overnight service,<br \/>\nor (c four (4) days after being mailed by registered or certified mail,<br \/>\nreturn receipt requested, prepaid and addressed to the parties or their<br \/>\nsuccessors at the following addresses, or at such other addresses as the parties<br \/>\nmay later designate in writing:<\/p>\n<p>If to the Company:<\/p>\n<p><u>Attn<\/u>: Chairman of the HR\/Compensation Committee<br \/>\nc\/o Corporate Secretary<br \/>\nHewlett-Packard Company\n<\/p>\n<p>If to Executive:<\/p>\n<p>at the last residential address known by the Company.<\/p>\n<p>15.                                 <u>Severability<\/u>.  If any provision hereof becomes or is<br \/>\ndeclared by a court of competent jurisdiction to be illegal, unenforceable, or<br \/>\nvoid, this Agreement will continue in full force and effect without said<br \/>\nprovision.<\/p>\n<p align=\"center\">6<\/p>\n<p>16.                                 <u>Arbitration<\/u>.  The Parties agree that any and all disputes<br \/>\narising out of the terms of this Agreement, Executive\u0092s employment by the<br \/>\nCompany, Executive\u0092s service as an officer or director of the Company, or<br \/>\nExecutive\u0092s compensation and benefits, their interpretation, and any of the<br \/>\nmatters herein released, will be subject to binding arbitration in Santa Clara,<br \/>\nCalifornia before the Judicial Arbitration and Mediation Services, Inc. under the<br \/>\nAmerican Arbitration Association\u0092s National Rules for the Resolution of<br \/>\nEmployment Disputes, supplemented by the California Rules of Civil<br \/>\nProcedure.  The Parties agree that the<br \/>\nprevailing party in any arbitration will be entitled to injunctive relief in<br \/>\nany court of competent jurisdiction to enforce the arbitration award.  <b>The Parties hereby agree<br \/>\nto waive their right to have any dispute between them resolved in a court of<br \/>\nlaw by a judge or jury.  <\/b>This<br \/>\nparagraph will not prevent either party from seeking injunctive relief (or any<br \/>\nother provisional remedy) from any court having jurisdiction over the Parties<br \/>\nand the subject matter of their dispute relating to Executive\u0092s obligations<br \/>\nunder this Agreement and the Confidential Information Agreement.<\/p>\n<p>17.                                 <u>Legal<br \/>\nand Tax Expenses<\/u>.  The Company will<br \/>\nreimburse Executive for reasonable legal and tax advice expenses incurred by<br \/>\nhim in connection with the negotiation, preparation, and execution of this<br \/>\nAgreement and the termination of his employment with the Current Employer.  In addition, in the event of a dispute<br \/>\nrelating to any provision of this Agreement following the Effective Date, the<br \/>\nCompany will reimburse Executive\u0092s fees and expenses as incurred quarterly,<br \/>\nincluding reasonable attorneys\u0092 fees, in connection with such dispute, provided<br \/>\nExecutive prevails on at least one material issue in such dispute, or provided<br \/>\nan arbitrator does not determine that Executive\u0092s legal positions were<br \/>\nfrivolous or without legal foundation.<br \/>\nIn the event Executive does not so prevail or in the event of such<br \/>\ndetermination, Executive will repay to the Company any amounts previously<br \/>\nreimbursed by it, and Executive will reimburse the Company for its fees and<br \/>\nexpenses, including reasonable attorneys\u0092 fees, incurred in connection with the<br \/>\ndispute.<\/p>\n<p>18.                                 <u>Integration<\/u>.  This Agreement, together with the<br \/>\nConfidential Information Agreement and the standard forms of equity award grant<br \/>\nthat describe Executive\u0092s outstanding equity awards, represents the entire<br \/>\nagreement and understanding between the parties as to the subject matter herein<br \/>\nand supersedes all prior or contemporaneous agreements whether written or<br \/>\noral.  No waiver, alteration, or<br \/>\nmodification of any of the provisions of this Agreement will be binding unless<br \/>\nin a writing and is signed by duly authorized representatives of the parties<br \/>\nhereto.  In entering into this Agreement,<br \/>\nno party has relied on or made any representation, warranty, inducement,<br \/>\npromise or understanding that is not in this Agreement.  Executive acknowledges that Executive is not<br \/>\nsubject to any contract, obligation or understanding (whether written or not),<br \/>\nother than the obligations under Executive\u0092s resignation letter with the<br \/>\nCurrent Employer, that would in any way restrict the performance of Executive\u0092s<br \/>\nduties as set forth in this Agreement.<\/p>\n<p>19.                                 <u>Waiver<br \/>\nof Breach<\/u>.  The waiver of a breach of<br \/>\nany term or provision of this Agreement, which must be in writing, will not<br \/>\noperate as or be construed to be a waiver of any other previous or subsequent<br \/>\nbreach of this Agreement.<\/p>\n<p>20.                                 <u>Survival<\/u>.  The Confidential Information Agreement, the<br \/>\nCompany\u0092s and Executive\u0092s responsibilities under Section 9 will survive the<br \/>\ntermination of this Agreement.<\/p>\n<p>21.                                 <u>Headings<\/u>.  All captions and Section headings used in<br \/>\nthis Agreement are for convenient reference only and do not form a part of this<br \/>\nAgreement.<\/p>\n<p align=\"center\">7<\/p>\n<p>22.                                 <u>Tax<br \/>\nWithholding<\/u>.  All payments made<br \/>\npursuant to this Agreement will be subject to withholding of applicable taxes.<\/p>\n<p>23.                                 <u>Governing<br \/>\nLaw<\/u>.  This Agreement will be governed<br \/>\nby the laws of the State of California.<\/p>\n<p>24.                                 <u>Acknowledgment<\/u>.  Executive acknowledges that he has had the<br \/>\nopportunity to discuss this matter with and obtain advice from his private<br \/>\nattorney, has had sufficient time to, and has carefully read and fully<br \/>\nunderstands all the provisions of this Agreement, and is knowingly and<br \/>\nvoluntarily entering into this Agreement.<\/p>\n<p>25.                                 <u>Counterparts<\/u>.  This Agreement may be executed in<br \/>\ncounterparts, and each counterpart will have the same force and effect as an<br \/>\noriginal and will constitute an effective, binding agreement on the part of<br \/>\neach of the undersigned.<\/p>\n<p align=\"center\">8<\/p>\n<p align=\"center\">\n<p>IN WITNESS WHEREOF, each of the parties has executed<br \/>\nthis Agreement, in the case of the Company by a duly authorized officer, as of<br \/>\nthe day and year written below.<\/p>\n<table border=\"0\" cellspacing=\"0\" cellpadding=\"0\" width=\"100%\" style=\"border-collapse:collapse;width:100.0%;\">\n<tr>\n<td width=\"37%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:37.6%;\">\n<p>COMPANY:<\/p>\n<\/td>\n<td width=\"38%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:38.54%;\">\n<\/td>\n<td width=\"23%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:23.84%;\">\n<\/td>\n<\/tr>\n<tr>\n<td width=\"37%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:37.6%;\">\n<\/td>\n<td width=\"38%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:38.54%;\">\n<\/td>\n<td width=\"23%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:23.84%;\">\n<\/td>\n<\/tr>\n<tr>\n<td width=\"37%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:37.6%;\">\n<p>HEWLETT-PACKARD COMPANY<\/p>\n<\/td>\n<td width=\"38%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:38.54%;\">\n<\/td>\n<td width=\"23%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:23.84%;\">\n<\/td>\n<\/tr>\n<tr>\n<td width=\"37%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:37.6%;\">\n<\/td>\n<td width=\"38%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:38.54%;\">\n<\/td>\n<td width=\"23%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:23.84%;\">\n<\/td>\n<\/tr>\n<tr>\n<td width=\"37%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:37.6%;\">\n<\/td>\n<td width=\"38%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:38.54%;\">\n<\/td>\n<td width=\"23%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:23.84%;\">\n<\/td>\n<\/tr>\n<tr>\n<td width=\"37%\" valign=\"top\" style=\"border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:37.6%;\">\n<p>\/s\/Patricia C. Dunn<\/p>\n<\/td>\n<td width=\"38%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:38.54%;\">\n<\/td>\n<td width=\"23%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:23.84%;\">\n<p>Date: March 29, 2005<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"37%\" valign=\"top\" style=\"border:none;padding:0in 0in 0in 0in;width:37.6%;\">\n<p>Patricia C. Dunn<\/p>\n<\/td>\n<td width=\"38%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:38.54%;\">\n<\/td>\n<td width=\"23%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:23.84%;\">\n<\/td>\n<\/tr>\n<tr>\n<td width=\"37%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:37.6%;\">\n<p>Non-executive Chairman of the Board of Directors<\/p>\n<\/td>\n<td width=\"38%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:38.54%;\">\n<\/td>\n<td width=\"23%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:23.84%;\">\n<\/td>\n<\/tr>\n<tr>\n<td width=\"37%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:37.6%;\">\n<\/td>\n<td width=\"38%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:38.54%;\">\n<\/td>\n<td width=\"23%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:23.84%;\">\n<\/td>\n<\/tr>\n<tr>\n<td width=\"37%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:37.6%;\">\n<\/td>\n<td width=\"38%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:38.54%;\">\n<\/td>\n<td width=\"23%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:23.84%;\">\n<\/td>\n<\/tr>\n<tr>\n<td width=\"37%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:37.6%;\">\n<p>EXECUTIVE:<\/p>\n<\/td>\n<td width=\"38%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:38.54%;\">\n<\/td>\n<td width=\"23%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:23.84%;\">\n<\/td>\n<\/tr>\n<tr>\n<td width=\"37%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:37.6%;\">\n<\/td>\n<td width=\"38%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:38.54%;\">\n<\/td>\n<td width=\"23%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:23.84%;\">\n<\/td>\n<\/tr>\n<tr>\n<td width=\"37%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:37.6%;\">\n<\/td>\n<td width=\"38%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:38.54%;\">\n<\/td>\n<td width=\"23%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:23.84%;\">\n<\/td>\n<\/tr>\n<tr>\n<td width=\"37%\" valign=\"top\" style=\"border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:37.6%;\">\n<p>\/s\/ Mark Hurd<\/p>\n<\/td>\n<td width=\"38%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:38.54%;\">\n<\/td>\n<td width=\"23%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:23.84%;\">\n<p>Date: March 29, 2005<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"37%\" valign=\"top\" style=\"border:none;padding:0in 0in 0in 0in;width:37.6%;\">\n<p>Mark Hurd<\/p>\n<\/td>\n<td width=\"38%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:38.54%;\">\n<\/td>\n<td width=\"23%\" valign=\"top\" style=\"padding:0in 0in 0in 0in;width:23.84%;\">\n<\/td>\n<\/tr>\n<\/table>\n<p align=\"center\">[SIGNATURE PAGE TO M. HURD<br \/>\nEMPLOYMENT AGREEMENT]<\/p>\n<p align=\"center\">\n<p align=\"center\">9<\/p>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[7770],"corporate_contracts_industries":[9508],"corporate_contracts_types":[9539,9544],"class_list":["post-40115","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-hewlett-packard-co","corporate_contracts_industries-technology__hardware","corporate_contracts_types-compensation","corporate_contracts_types-compensation__employment"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts\/40115","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate_contracts"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=40115"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=40115"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=40115"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=40115"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}