AMENDED AND RESTATED EMPLOYMENT AGREEMENT
THIS AMENDED
AND RESTATED EMPLOYMENT AGREEMENT (this “ Agreement
”) is entered into as of December 11, 2008, (the
“Effective Date”) by and between Vista Staffing
Solutions, Inc. (together with its affiliates, the “
Company ”), On Assignment, Inc. (“ OA
”) and Mark S. Brouse (“ Executive
”). The Company, OA and Executive are later in
this Agreement sometimes referred to individually as a “
Party ” or collectively as the “ Parties
.”
RECITALS
A. The
Company, OA and Executive previously entered into an agreement,
dated December 20, 2006, pursuant to which Executive is employed as
the President of the Company, and an Amendment 1 to Employment
Agreement dated July 2, 2008 (the “Prior
Agreement”).
B. The
Company, OA and Executive wish to amend and restate the Prior
Agreement to implement changes required under Internal Revenue Code
Section 409A (together with the regulations and official
interpretations thereof, “Section 409A”).
AGREEMENT
1.
Employment Term . Subject to the provisions for
earlier termination hereinafter provided, Executive’s
employment shall continue for a term commencing on the Effective
Date and ending on December 31, 2010 (the “ Initial
Termination Date ”); provided , that this
Agreement shall be automatically extended for one additional year
on the Initial Termination Date and on each subsequent anniversary
of the Initial Termination Date unless either Executive or the
Company elects not to so extend such term by notifying the other
Party, in accordance with Section 7 below, of such election not
less than sixty days prior to the Initial Termination Date, or any
anniversary thereof, as applicable (in any case, the “
Employment Period ”).
2.
Position and Duties .
(a)
Position . During the Employment Period,
Executive shall serve as the President of the Company and shall
perform such employment duties and shall have such rights,
privileges and authority as are usual and customary for such
position. Executive shall report to Chief Executive
Officer of OA (currently Peter Dameris). OA shall retain
full direction and control of the means and methods by which
Executive performs the above services. At OA’s
reasonable request, Executive shall serve OA, the Company and/or
their subsidiaries and affiliates in such other offices and
capacities in addition to serving as the President of the Company
as the Company shall designate, consistent with Executive’s
position as President of the Company, without additional
compensation beyond that specified in this Agreement.
(b)
Place of Employment . During the Employment
Period, Executive shall perform the services required by this
Agreement at the Company’s principal offices in Salt Lake
City, Utah, unless otherwise mutually agreed upon by the
Parties. Notwithstanding the foregoing, Executive may
from time to time be required to travel temporarily to other
locations on the Company’s business.
(c)
Exclusivity . During the Employment Period,
except for such other activities as the Compensation Committee of
OA (the “ Committee ”) shall approve in writing
in its sole discretion and as provided below in this Section 2(c),
Executive shall devote Executive’s entire business time,
business attention and business energies to the business and
affairs of the Company, to the performance of Executive’s
duties under this Agreement and to the promotion of the
Company’s interests, and shall not (i) accept any other
employment, directorship or consultancy, or (ii) engage,
directly or indirectly, in any other business activity (whether or
not pursued for pecuniary advantage) that is or may be competitive
with, or that might place Executive in a competing position to,
that of the Company or OA. Notwithstanding the
foregoing, nothing herein shall prohibit Executive from (x) serving
on up to two boards (or similar bodies) of charitable
organizations, or (y) continuing to own his current ownership
interest and to serve as a member of the Board of Directors (or
comparable body) of Phar Technology, LLC, to the extent, in all
cases, that such activities do not materially interfere with
Executive’s duties and responsibilities to the Company, as
determined in the reasonable discretion of the
Committee.
3.
Compensation .
(a)
Base Salary . During the Employment Period, the
Company shall pay Executive a base salary (the “ Base
Salary ”) initially set at $261,000 per year, payable in
accordance with the Company’s normal payroll procedures
applicable to similarly situated senior executives of OA, as in
effect from time to time. Beginning in calendar year
2008 and thereafter during the Employment Period, the Base Salary
shall be subject to annual review and increase (but not decrease)
in the sole discretion of the Committee.
(b)
Annual Bonus . In addition to the Base Salary,
Executive shall be eligible to earn an annual cash bonus in respect
of each calendar year during the Employment Period beginning in
calendar year 2007, as described below (each, an “ Annual
Bonus ”), subject in each case to Executive’s
continued employment through the 31 st day of December in the year in respect of which
any Annual Bonus becomes payable. In respect of calendar
year 2007, Executive shall be eligible to earn, and if and to the
extent earned, shall be paid, an Annual Bonus of up to $195,750,
determined as follows: (i) if, during 2007, the Company attains
earnings before income, tax, depreciation and amortization, each
determined in accordance with United States GAAP, consistently
applied, as reported on its consolidated financial statements for
such period (“ EBITDA ”) of no less than 110% of
budgeted EBITDA (“ 2007 Target EBITDA ”), the
2007 Annual Bonus shall equal no less than $97,875, and (ii) for
each percentage point by which the Company’s 2007 EBITDA
exceeds 2007 Target EBITDA up to 130% of 2007 Target EBITDA, the
2007 Annual Bonus shall be increased by no less than $4,893.75, up
to an additional 2007 Annual Bonus amount of $97,875
(and up to a total 2007 Annual Bonus of $195,750),
provided , that if the Company does not attain 2007 Target
EBITDA, an Annual Bonus shall only become payable to Executive in
respect of calendar year 2007 if the Committee, in its sole
discretion, so determines. In respect of calendar years
during the Employment Period beginning after 2007, any Annual Bonus
shall be determined by reference to the attainment of objective
performance criteria, which criteria shall be determined by the
Committee within sixty days after the start of the applicable
calendar year.
Each Annual
Bonus shall be paid to Executive, to the extent that any such
Annual Bonus becomes payable, within thirty days after the date on
which the Committee conclusively determines the extent to which the
applicable performance criteria have (or have not) been
met.
(c)
Credit Card Reward Miles . During the Employment
Period, the Company shall provide Executive with a corporate
American Express card (or similar major credit card) to be used
solely for the purpose of paying expenses that would otherwise be
reimbursable pursuant to Section 3(f) below. To the
extent that Executive accrues miles (or comparable reward credit,
“ Miles ”) based on Executive’s use of
such corporate credit card (i) for expenses incurred directly by
Executive for Executive’s travel, lodging and/or other
individual business expenses, Executive shall be permitted to apply
any Miles so accrued to personal and/or business use in
Executive’s sole discretion, and (ii) for expenses incurred
on behalf of other employees or consultants of the Company
(including without limitation, other employees’ or
consultants’ travel and lodging) or items or services
purchased on behalf of the Company, Executive shall apply such
Miles to the purchase of travel, lodging and/or related
upgrades associated with business-related travel
only. To the extent that any Miles accrued for expenses
described in clause (ii) of this section 3(c) are not applied by
Executive as described in such clause (ii), such Miles shall be and
remain the sole property of the Company.
(d)
Benefit Plans; Technology . During the Employment
Period, Executive and Executive’s legal dependants shall be
eligible to participate in the welfare benefit plans, policies and
programs (including, if applicable, medical, dental, disability,
life and accidental death insurance plans and programs) maintained
by OA generally for its senior executives. In addition,
during the Employment Period, Executive shall be eligible to
participate in such incentive, savings and retirement plans,
policies and programs as are made available to similarly situated
senior executives of OA, provided , that the OA shall have
no obligation, in any case, to adopt, maintain or continue any such
plans, policies or programs. During the Employment
Period, Executive shall be eligible to receive technology equipment
and support commensurate with Executive’s position and
comparable to that provided to similarly situated senior executives
of OA.
(e)
Vacation . During the Employment Period,
Executive shall be entitled to four weeks of paid vacation per
calendar year, pro rated for any service by Executive during any
partial calendar year, provided , that Executive shall not
accrue any vacation time in excess of four weeks.
(f)
Expenses . During the Employment Period,
Executive shall be entitled to receive prompt reimbursement of all
reasonable business expenses incurred by Executive in accordance
with the expense reimbursement policy of OA applicable to senior
executives of OA, as in effect from time to time, provided that
Executive properly substantiates such expenses in accordance with
such policy.
(g)
Charitable Contributions . Beginning in calendar
year 2007, each year during the Employment Period, Executive may
designate a charitable organization that is exempt from taxation
under Section 501(c)(3) of the Internal Revenue Code to which the
Company shallcontribute up to $5,000 prior to the end of such year,
as directed by Executive, provided that Executive remains employed
by the Company through the end of such year.
4. Termination
of Employment.
Either the Company or Executive may terminate
Executive’s employment at any time for any reason or no
reason, subject to the terms and conditions of this Section
4. The following provisions shall control any such
termination of Executive’s employment:
(a)
Termination Without Cause . The Company may
terminate Executive’s employment without Cause (as defined
below) at any time during the Employment Period upon written notice
to Executive provided in accordance with Section 7
below. If Executive’s employment is terminated as
provided in this Section 4(a), the Company shall promptly, or in
the case of obligations described in clause (v) below, as such
obligations become due to Executive, pay or provide to Executive,
(i) Executive’s earned but unpaid Base Salary accrued through
the Date of Termination, (ii) accrued but unpaid vacation time
through the Date of Termination, (iii) any Annual Bonus required to
be paid to Executive pursuant to this Agreement for any calendar
year of the Company ending prior to the Date of Termination, to the
extent payable, but not previously paid, (iv) reimbursement of any
business expenses incurred by Executive prior to the Date of
Termination that are reimbursable under Section 3(f) above, and (v)
any vested benefits and other amounts due to Executive under any
plan, program or policy of the Company or OA (together, the “
Accrued Obligations ”). In addition,
subject to Section 4(i) below, Executive’s execution and
non-revocation of a binding Release (as defined below) in
accordance with Section 4(g) below and Executive’s continued
compliance with the Confidentiality Agreement (as defined below),
Executive shall be entitled to the following payments and benefits
from the Company (the “ Severance ”):
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continued
payment of 100% of Executive’s Base Salary at the rate in
effect as of the Date of Termination, in substantially equal
installments, for a period of twelve months following the Date of
Termination, in accordance with the Company’s normal payroll
procedures applicable to senior executives of OA, as in effect from
time to time (but no less often than monthly), provided ,
that payment of the amounts described in this Section 4(a)(1) shall
not commence until the Company’s first payroll date occurring
on or after the 30th day following the Date of Termination (the
“First Payroll Date”) and any amounts that would
otherwise have been paid prior to the First Payroll Date shall
instead be paid on the First Payroll Date;
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subject to
Executive’s proper election to continue healthcare coverage
under the Consolidated Omnibus Budget Reconciliation Act of 1985,
as amended (“COBRA”), for a period of twelve
months
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from the Date
of Termination, the Company will pay Executivethe difference
between Executive’s COBRA premiums (in respect of COBRA
benefits to be provided through third-party insu
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