Exhibit 10.22
EXECUTIVE EMPLOYMENT
AGREEMENT
THIS AMENDED AND RESTATED
EXECUTIVE EMPLOYMENT AGREEMENT (the “Agreement”) is made effective
as of the 30th day of December, 2008, by and between MPS GROUP,
INC. , a Florida corporation, and its successors
(“Employer”), and TIMOTHY D. PAYNE , a resident
of the State of Florida (“Executive”), and amends and
restates in its entirety that certain employment agreement between
the parties dated November 1, 2000.
WHEREAS , the Employer and the Executive entered into an
employment agreement on November 1, 2000; and
WHEREAS , the Employer and the Executive desire to enter
into an amended and restated employment agreement, which agreement
shall replace and thereby supersede all prior employment agreements
and any amendments thereto previously executed between the Employer
and the Executive;
NOW, THEREFORE
, in consideration of the mutual
promises, agreements and covenants, and subject to the terms and
conditions contained in this Agreement, the Employer and Executive,
intending to be legally bound, hereby agree as follows:
1. Employment . Employer hereby
employs Executive as its President and Chief Executive Officer, and
Executive hereby accepts employment by Employer, in accordance with
and subject to the terms and conditions of this Agreement. The
Executive will report directly to the Board of Directors of
Employer (the “Board”).
2. Duties and Authority . As
President and Chief Executive Officer of Employer, Executive shall
be in charge of the operations of Employer and shall have full
authority and responsibility, subject to the general direction and
control of the Board, for formulating policies and administering
the affairs of Employer in all respects, and otherwise performing
such duties as are customarily performed by the President and Chief
Executive Officer of a company of similar size and structure to the
Employer. Executive agrees to devote his full time, attention and
best efforts to the performance of his duties hereunder; provided,
however, it shall not be considered a violation of the foregoing
for the Executive to assist in the strategic direction, operations
and affairs of corporate affiliates or to serve on corporate,
industry, civic or charitable boards or committees, so long as such
activities do not materially interfere with the performance of the
Executive’s responsibility as an employee of the Employer in
accordance with this Agreement. Executive shall additionally be
nominated to serve on the Board and, if so elected, shall agree to
so serve during the Term without additional
compensation.
3. Initial Term; Employment Period .
The initial term of employment shall begin on December 30,
2008 and end on December 31, 2009 (the “Term of this
Agreement”). The Term of this Agreement shall be extended
automatically for one year on December 31, 2009, and each
annual anniversary thereof (the “Extension Date”)
unless, and until, at least 90 days prior to the applicable
Extension Date either the Employer or the Executive provides
written notice to the other party that this Agreement is not to be
extended (the later of December 31, 2009 or the last date to
which the Term is extended shall be the “End of Term”).
For purposes of this Agreement, the period beginning on
January 1, 1999, and ending on the Date of Termination (as
hereafter defined) shall be referred to herein as the
“Employment Period.”
4. Compensation . During the
Employment Period which is in the Term of this Agreement, Executive
shall receive the following compensation:
A. Base Salary . A base
annual salary of $690,000, payable in accordance with the
Employer’s standard practice for other comparable executives.
Executive’s base salary shall be subject to annual review by
the Board for discretionary periodic increases in accordance with
the Employer’s compensation policies. References to
“Base Salary” in this Agreement shall be to the base
salary set forth in this Paragraph 4.A. and shall include any
increases to such base salary made hereby.
B. Incentive Compensation .
The Executive shall be entitled to a target incentive compensation
opportunity expressed as a percentage of Base Salary of not less
than 100% under the Executive Annual Incentive Plan (the
“Incentive Plan”), as amended from time to time, or
pursuant to a newly established or successor plan.
C. Management Savings Plan .
The Executive shall be entitled each year to an annual contribution
of at least the minimum annual award level under the Management
Savings Plan, as amended from time to time, or pursuant to a newly
established or successor plan.
5. Equity Compensation . Employer
shall continue to grant to Executive stock options, restricted
stock, stock appreciation rights or other equity compensation
awards from time to time in a manner consistent with that to which
it makes such grants to other senior executive officers of the
Employer pursuant to the MPS Group, Inc. 2004 Equity Incentive
Plan, as amended from time to time, or pursuant to a newly
established or successor plan.
A. Vesting and Exercise . Any
existing or future equity compensation awards shall provide
for:
(i) with respect to stock options,
exercisability of vested stock options (including those vested
under Paragraph 5.A.(ii) below) for at least two years following
the Executive’s termination of employment with the Employer
(or if sooner, 10 years from date of grant of the
option);
(ii) with respect to all stock
options, restricted stock or other equity compensation awards, full
vesting upon a Change in Control (as hereafter defined) or
termination of the Executive’s employment with the Employer
by reason of Executive’s death or Disability (as hereafter
defined) or for reasons other than termination (i) by the
Employer for Cause (as hereafter defined), or (ii) by the
Executive without Good Reason (as hereafter defined);
and
(iii) with respect to all stock
options, restricted stock or other equity compensation awards,
exercisability only to the extent vested on the date of the
Executive’s termination of employment with the Employer, in
the event of termination (i) by the Employer for Cause, or
(ii) by the Executive without Good Reason.
2
B. For purposes of this Agreement,
“Change in Control” shall mean:
(i) the acquisition by any person or
persons (as such term is used in Section 13(d) of the
Securities Exchange Act of 1934, as amended) of legal or beneficial
ownership of 35% or more of either (a) the then outstanding
shares of common stock of the Employer or (b) the combined
voting power of the then outstanding voting securities of the
Employer entitled to vote generally in the election of
directors;
(ii) individuals who, as of the date
hereof, constitute the Board cease for any reason to constitute at
least a majority of the Board; provided, however, that any
individual becoming a director subsequent to the date hereof whose
election, or nomination for election by the Employer’s
shareholders, was approved by a vote of at least a majority of the
directors then comprising the Board shall be considered as though
such individual were a member of the Board as of the date
hereof;
(iii) approval by the shareholders
of the Employer of a reorganization, merger, or consolidation, in
each case unless the shareholders of the Employer immediately
before such reorganization, merger, or consolidation own, directly
or indirectly, immediately following such reorganization, merger,
or consolidation at least a majority of the combined voting power
of the outstanding voting securities of the corporation resulting
from such reorganization, merger, or consolidation in substantially
the same proportion as their ownership of the voting securities
immediately before such reorganization, merger or consolidation;
or
(iv) approval by the shareholders of
the Employer of (a) a complete liquidation or dissolution of
the Employer or (b) the sale or other disposition of more than
50% of the assets of the Employer within a twelve month
period.
6. Benefits . To the extent not
otherwise provided herein (it being the intent not to duplicate
benefits) during the term of this Agreement, Employer shall provide
the Executive with all retirement, welfare, deferred compensation,
disability and other benefits generally provided to all of the
Employer’s other senior executive officers. Executive shall
be entitled to four (4) weeks of paid vacation per calendar
year. Unused vacation shall be paid out at calendar year end. The
Employer shall reimburse the Executive for all reasonable and
necessary expenses incurred while conducting business in accordance
with policies adopted by the Employer from time to time. The
Employer shall pay the initiation and membership dues for the
Executive for a membership in a private club not to exceed
$10,000.00 per annum. The Employer shall pay the membership dues
for the Executive for the River Club. Furthermore, the Employer
shall pay the Executive or a leasing company, at the
Executive’s option, $750 per month for an automobile used by
the Executive for business purposes. The Executive acknowledges
that pursuant to the Internal Revenue Code of 1986, as amended (the
“Code”), and the regulations promulgated thereunder,
the Employer may be required to report for tax purposes all or a
portion of certain of
3
the benefits and reimbursements provided in this
Agreement as income in respect of the Executive. In all events, the
aforementioned benefit and expense reimbursements will be made no
later than the year following the year in which the expense was
incurred. Notwithstanding any other provision of this
Section 6 to the contrary, any expense reimbursed by the
Employer in one taxable year in no event will affect the amount of
expenses required to be reimbursed or in-kind benefits required to
be provided by the Employer in any other taxable year.
7. Non-Compete; Confidentiality . In
consideration of the employment of Executive by Employer, Executive
agrees as follows:
A. Non-Compete and
Non-Solicitation . During the Employment Period and for a
period of two years after the Date of Termination, Executive will
not, directly or indirectly, within a fifty mile radius of any
office of Employer (or a consolidated subsidiary) in existence on
the Date of Termination, own, manage, be employed by, work for,
consult for, be an officer or director of, advise, represent,
engage in or carry on any business which competes with the business
of Employer. During the Employment Period and for a period of two
years after the Date of Termination, Executive will not, directly
or indirectly, solicit or induce, or attempt to solicit or induce,
any employee of the Employer (or a consolidated subsidiary) to
leave the Employer (or a consolidated subsidiary) for any reason
whatsoever, or solicit the services of any employee of the Employer
(or a consolidated subsidiary).
B. Non-Disclosure of
Information . Executive will not at any time, during or after
the term of this Agreement in any fashion, form, or manner, either
directly or indirectly, divulge, disclose, or communicate to any
person, firm, or corporation, in any manner whatsoever, any
information of any kind, nature, or description concerning any
matters affecting or relating to the business of the Employer,
including, but not limited to, the names of any of its customers or
prospective customers or any other information concerning the
business of the Employer, its manner of operation, its plans, its
vendors, its suppliers, its advertising, its marketing, its
methods, its practices, or any other information of any kind,
nature, or description, without regard to whether any or all of the
foregoing matters would otherwise be deemed confidential, material,
or important; provided, however that this provision shall not
prevent disclosures by Executive to the extent such disclosures are
(i) believed by the Executive, in good faith and acting
reasonably, to be in the best interest of the Employer,
(ii) of information that is public at the time of the
disclosure (other than as a result of the Executive’s
violation of this Paragraph 7.B.), or (iii) as required by law
or legal process (and, if the Executive is so required to disclose,
Executive shall provide the Employer notice of such to allow the
Company the opportunity to contest such disclosure).
4
8. Termination of Employment
.
A. Death or Disability . The
Executive’s employment shall terminate automatically upon the
Executive’s death during the Employment Period . If
Executive dies during the Employment Perio
