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 On Assignment, Inc.
(the “ Company ”) and James Brill (“
Executive ”).
Recitals
A. The Company and
Executive previously entered into an agreement, dated January 1,
2007, pursuant to which Executive is employed as the Senior Vice
President and Chief Financial Officer of the Company
(the “Prior Agreement”).
B. The
Company 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 which commenced on January 1,
2007 and ends on December 31, 2008 (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 Senior Vice President and Chief Financial
Officer of the Company and shall perform such employment duties as
are usual and customary for such position, including without
limitation, oversight and management of the Company’s Finance
and Accounting, Risk Management and Investor Relations
departments. Executive shall report to the Chief
Executive Officer of the Company (“ CEO
”). The Company shall retain full direction and
control of the means and methods by which Executive performs the
above services. At the Company’s request,
Executive shall serve the Company and/or its subsidiaries and
affiliates in such other offices and capacities in addition to the
foregoing as the Company shall designate, consistent with
Executive’s position, 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 Calabasas,
California, 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.
(d)
Exclusivity . During the Employment Period,
except for such other activities as the Compensation Committee of
the Board of Directors (the “ Committee ”) shall
approve in writing in its sole discretion and as otherwise provided
in this Section 2(d), Executive shall devote his entire business
time, attention and 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. Notwithstanding the foregoing, (i) for a period
not to exceed ninety days from and after the Effective Date,
Executive may provide the consulting services described on Schedule
A hereto to Diagnostic Products Corporation and the provision of
such consulting services shall not constitute a breach of this
Section 2(d), and (ii) provided that such activities do not
interfere with the fulfillment of Executive’s obligations
hereunder, Executive may (A) serve as an officer, director or
trustee of any charitable or non-profit entity; (B) own a passive
investment in any private company and own up to 5% of the
outstanding voting securities of any public company; or (C) with
the prior approval of the CEO, serve as a director of up to two
other companies so long as such companies do not compete with the
Company and Executive notifies the CEO in advance of accepting any
such position.
3.
Compensation .
(a)
Base Salary . During the Employment Period, the
Company shall pay Executive a base salary (the “ Base
Salary ”) set at $275,000 per year for calendar year 2007
and subject thereafter to annual review and increase (but not
decrease) in the sole discretion of the Committee. The
Base Salary shall be payable in accordance with the Company’s
normal payroll procedures applicable to senior executives of the
Company, as in effect from time to time.
(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 date on which annual bonuses are
paid generally to the Company’s senior
executives. In respect of calendar year 2007, Executive
shall be eligible to earn an Annual Bonus ranging from $0 -
$275,000, determined by reference to the
Company’s earnings before interest, tax, depreciation
and amortization as reported on its consolidated financial
statements for such period (“ EBITDA
”). The EBITDA targets applicable to
Executive’s 2007 Annual Bonus shall be consistent with those
applicable to the determination of the CEO’s 2007 annual
bonus and shall be determined by the Committee, after consultation
with the CEO and Executive, no later than March 31,
2007. 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)
Stock Option . Subject to approval by the
Committee, as soon as practicable following the Effective Date, the
Company shall grant to Executive a nonqualified option to purchase
100,024 shares of Company common stock (the “ Option
”). The Option shall be granted to Executive at an
exercise price per share equal to 100% of the fair market value of
a share of Company common stock on the date of grant, as determined
by the Committee. Subject to Executive’s continued
employment with the Company through each such date, the Option
shall vest and become exercisable with respect to 25,000 of the
shares subject thereto on the first anniversary of the date of
grant of the Option (the “ Option Grant Date ”)
and with respect to 2,084 of the shares subject thereto on each
monthly anniversary of the Option Grant Date thereafter, such that
the Option shall be vested and exercisable with respect to all
shares subject thereto (subject to Executive’s continued
employment) on the fourth anniversary of the Option Grant
Date. Consistent with the foregoing, the terms and
conditions of the Option, including the applicable vesting
conditions, shall be set forth in an Option grant agreement to be
entered into by the Company and Executive in a form prescribed by
the Company which shall evidence the grant of the Option (the
“ Option Agreement ”). The Option
shall, subject to the provisions of this Section 3(c), be governed
in all respects by the terms of the applicable Option
Agreement.
(d)
Restricted Stock Units . Subject to approval by
the Committee, as soon as practicable following the Effective Date,
the Company shall grant to Executive, under the OA Restated 1987
Stock Option Plan (the “ Equity Plan ”), 60,000
restricted stock units (the “ RSUs
”). Subject to Executive’s continued
employment with the Company through each such date, the RSU grant
shall vest with respect to 15,000 RSUs on the first anniversary of
the date of grant of the RSUs (the “ RSU Grant Date
”) and with respect to 1,250 of the RSUs on each monthly
anniversary of the RSU Grant Date thereafter, such that the RSU
grant shall be vested with respect to all RSUs (subject to
Executive’s continued employment) on the fourth anniversary
of the RSU Grant Date. Shares of Company common stock shall
be delivered in respect of RSUs vesting in accordance with this
Section 3(d) on or as soon as practicable after the applicable
vesting date of such RSUs, but in no event more than fifteen days
after such vesting date, with the exact payment date to be
determined by the Company in its sole discretion. Consistent
with the foregoing, the terms and conditions of the RSUs, including
the applicable vesting and share delivery conditions, shall be set
forth in a RSU grant agreement to be entered into by the Company
and Executive which shall evidence the grant of the RSUs and,
except as otherwise expressly provided herein, shall be consistent
with the terms and conditions contained in RSU grant agreements
provided to other key executives of the Company (the “ RSU
Agreement ”). The RSUs shall, subject to the provisions
of this Section 3(d), be governed in all respects by the terms of
the Equity Plan and the applicable RSU Agreement.
(e)
Additional Incentive Bonus . In addition to the
Base Salary, any Annual Bonuses and the RSU and Option grants, the
Company may, in its sole discretion, pay to Executive a one-time
additional bonus of up to $50,000 (the “ Additional
Bonus ”) upon the attainment of performance objectives
relating to the post-transaction integration of the Company with
each of Vista Staffing Solutions, Inc. and Oxford, Inc., including
synergy savings and other criteria selected by the Committee (the
“ Additional Bonus Objectives ”). The
Additional Bonus Objectives shall be established, after
consultation with Executive, in the sole discretion of the
Committee, and the Additional Bonus shall become payable, if at
all, at such date or dates as are determined by the Committee,
subject to Executive’s continued employment through any such
date(s). Determinations as to whether the Additional
Bonus performance objectives have been attained shall be made in
the sole discretion of the Committee.
(f)
Benefit Plans . 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 the
Company for its senior executives. In addition,
Executive shall be eligible to participate in such incentive,
savings and retirement plans, policies and programs as are made
available to senior executives of the Company, provided ,
that the Company shall have no obligation, in any case, to adopt,
maintain or continue any such plans, policies or
programs.
(g)
Additional Perquisites . In addition to the
compensation and benefits described above in this Section 3, during
the Employment Period, the Company shall (i) pay to Executive an
automobile allowance of $450 per month and, (ii) pay or reimburse
Executive for actual, properly substantiated expenses incurred by
Executive in connection with (A) an annual physical examination,
not to exceed $1,500 per calendar year; and (B) tax preparation and
financial planning services, not to exceed $2,500 per calendar
year.
(h)
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.
(i)
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 Company expense reimbursement policy applicable to senior
executives of the Company, as in effect from time to time, provided
that Executive properly substantiates such expenses in accordance
with such policy.
4. Termination
of Employment.
Either the Company or Executive may terminate
Executive’s employment at any time for any reason or no
reason. The following provisions shall control any such
termination of Executive’s employment, subject to Section 8
below:
(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 (iv) below, as such
obligations become due to Executive, pay or provide to Executive,
(i) Executive’s earned but unpaid Base Salary accrued through
such Date of Termination (as defined below), (ii) accrued but
unpaid vacation time through such Date of Termination, (iii)
reimbursement of any business expenses incurred by Executive prior
to the Date of Termination that are reimbursable under Sections
3(g) or 3(i) above, and (iv) any vested benefits and other amounts
due to Executive under any plan, program or policy of the Company
(together, the “ Accrued Obligations
”). In addition, subject to Section 4(h) below,
Executive’s execution and non-revocation of a binding Release
(as defined below) in accordance with Section 4(f) below and
Executive’s continued compliance with the Confidentiality
Agreement (as defined below), Executive shall be entitled to
receive 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 the Company, as in effect from
time to time, (but no less often than monthly), (the
“Severance”), provided , that payment of the
amounts described in this Section 4(a) 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.
(b)
Death; Disability . If Executive dies during the
Employment Period or Executive’s employment is terminated due
to Executive’s total and permanent disability (that
constitutes a “disability” within the meaning of
Section 409A), Executive or Executive’s estate, as
applicable, shall be entitled to receive the Accrued Obligations
promptly or, in the case of benefits described in Section 4(a)(iv),
as such obligations become due to Executive. In
addition, subject to Section 4(h) below, Executive’s (or
Executive’s estate’s) execution and non-revocation of a
binding Release in accordance with Section 4(g) below and
Executive’s continued compliance with the Confidentiality
Agreement (upon a disability termination), Executive (or
Executive’s estate) shall be entitled to receive the
Severance.
(c)
Cause . If Executive’s employment becomes
terminable by the Company for Cause, the Company may terminate
Executive’s employment immediately and Executive shall be
entitled to receive the Accrued Obligations promptly or, in the
case of benefits described in Section 4(a)(iv), as such obligations
become due to Executive.
(d)
Resignation . Executive may terminate
Executive’s employment upon sixty days’ notice to the
Company provided in accordance with Section 7 below, subject to the
Company’s right to waive any or all of such notice
period. If Executive so terminates Executive’s
employment, Executive shall be entitled to receive the Accrued
Obligations promptly, or, in the case of benefits described in
Section 4(a)(iv), as such obligations become due to
Executive. If the Company elects to waive the notice
period provided for in this Section 4(d), Executive shall not be
entitled to any compensation in respect of such period.
(e)
Other Terminations . If Executive’s
employment terminates for any reason other than those specified in
Sections 4(a), (b), (c) or (d) above