Exhibit 10.b
[CDI Letterhead]
August 26, 2005
Mark A. Kerschner
537 James Street
Morristown, NJ 07960
Dear Mark:
I am pleased to confirm our offer of employment,
pending finalization of background and reference checks, as Chief
Financial Officer for CDI Corporation, reporting to me. Your first
day of employment will be on or before September 22, 2005.
Please report to 1717 Arch Street, 35 th Floor, Philadelphia, PA.
Your bi-weekly base salary will be $11,923.08.
If expressed on an annualized basis, your salary would be
equivalent to $310,000.00. Contingent upon Company performance, you
will be eligible for a target bonus for calendar year 2005 of 50%
of your annual base salary, pro-rated from your date of hire; for
2005 only, the minimum bonus payment will be $30,000.00 assuming
you remain employed with the Company throughout 2005. Additionally,
you will be eligible to receive 10,000 stock settled stock
appreciation rights, 2,500 shares of time vested deferred stock and
5,000 shares of performance contingent deferred stock subject to
the terms and conditions of the 2004 Omnibus Stock Plan. The
exercise price will be the closing price of CDI’s stock on
your start date.
You will be eligible to participate in
CDI’s Custom Choice Employee Benefits Program, which is
outlined in the benefits information being mailed to you under
separate cover. A summary of benefits is included herein. If you do
not receive a benefits enrollment packet at your home within three
weeks of your hire date, please contact the CDI Benefits Hotline at
(800) 763-8050.
In connection with relocation to Philadelphia,
you will be entitled to the provisions of the CDI Relocation Policy
(included herein). In order to maintain the continuity of your
relocation benefit, all real estate contacts must be made through
Beth Bolen at FAS Relocation Network. Beth can be reached at
800-522-1052. Van line contracts must be made through CDI-approved
vendors.
For each share of CDI Common Stock that you
purchase – up to 20,000 shares – within a specified
fifteen day period following the start of your employment, the
Company will grant you 0.4 shares of time-vested deferred stock
which will vest at the rate of 20% per year over five years,
so long as you retain all of the shares purchased. If at any time
during the five years you sell or transfer any of the 20,000
shares, then the remaining unvested shares of your Deferred Stock
will be forfeited. Your ability to sell the shares will be subject
to CDI’s ownership and holding requirements.
Please note that CDI Corporation reserves the
right to amend or terminate benefits and incentive plans in
accordance with the terms of those plans.
You will receive copies of CDI’s core HR
policies at the outset of your employment with the Company. At that
time, you will be required, as a condition of employment, to
certify in writing that you agree to abide by all CDI
policies.
In keeping with our “drug free
workplace” policy, this offer of employment is contingent
upon the successful completion of a urine drug test at a
CDI-approved testing facility within 48 hours of your receipt of
this letter. You, therefore, should not make any irreversible plans
until this contingency is satisfied. Enclosed is the form that you
will need to complete the drug test.
Your employment status with CDI will be
“employment-at-will,” which means there is no guarantee
of employment for any specified period of time and both the
employee and/or CDI can terminate the employment relationship at
any time, with or without cause. This
“employment-at-will” status cannot be changed except in
a written employment agreement signed by you and an authorized
representative of CDI.
Mark, my staff and I look forward to having you
join the CDI team. Please acknowledge your acceptance of this offer
in the space provided below and sign the accompanying Employment
Agreement documents. Return a copy of each for our records. Also
sign and return the blue “Relocation Expense Reimbursement
Agreement Appendix I” to commence the relocation
process.
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Sincerely,
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/s/ R
OGER H. B ALLOU
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Roger Ballou
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ACCEPTANCE
ACKNOWLEDGEMENT
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Start Date: On or before September 22,
2005
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/s/ M
ARK A. K ERSCHNER
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Date 9/4, 2005
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Mark A. Kerschner
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EMPLOYMENT
AGREEMENT
General
Information
Employer: CDI Corporation
Employee: Mark A. Kerschner
Employee Address: 537 James Street, Morristown, NJ
07960
Effective Date of Agreement:
on or before September 22,
2005
Terms and
Conditions
Throughout this Agreement, the
Employer will be referred to as “we”, “us”
or “our” and the Employee will be referred to as
“you” or “your”. The above General
Information, these Terms and Conditions, the compensation agreed
upon between you and us (which is presumed to be the compensation
we pay you), those benefits for which you are eligible under our
benefit programs (as they may be modified from time to time) and
any schedules or attachments, together make up the Employee’s
Employment Agreement (“Agreement”).
1. Services to be Rendered
. As our Employee, you agree to use
your best efforts to perform those services for us as we may direct
and to supervise and direct all personnel employed by us who are
under your control. You agree that you will not during the term of
this Agreement, directly or indirectly, render any services of a
business, commercial or professional nature to any other person or
organization, whether for compensation or otherwise, without our
prior written consent.
2. Company Policies
. You agree to abide by and comply
with all of our practices and policies.
3. Confidentiality and Property
Rights .
(a) You acknowledge that in the
course of your employment by us you will have access to and be
exposed to valuable confidential and trade secret information of
ours and our customers. You agree, during the term of your
employment and forever thereafter, to keep confidential all
information and material of ours or our customers
(“Confidential Information”) that relates to our or our
customers’ business, employees, customers, vendors or other
parties we do business with and excluding only information that is
or becomes public knowledge through no fault or participation by
you or information which we no longer treat as confidential. You
agree to keep in strictest confidence and not to disclose, use,
copy or make available to others any Confidential Information
except as is required in the course of your performing services
hereunder or with our prior written permission. Nothing contained
in this Section 3(a) shall be construed to restrict your right
to discuss your working conditions with others.
(b) All documents, manuals, bids,
contracts, financial data, customer lists and information, employee
and applicant lists and information, systems for recruitment and
sales, equipment, hardware, software, source code, data bases,
designs, drawings, plans, data and the like (including all copies
thereof), relating to our business or our customers’
business, which you use, prepare or come into contact with, will
remain our or our customers’ exclusive property and must be
returned to us promptly upon our request or upon termination of
your employment with us for any reason.
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EA-EXEC: VERSION 0305 [NOT FOR
USE WITH EMPLOYEES LOCATED IN CALIFORNIA]
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RB
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MAK
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Employer
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Employee
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(c) You agree that all work product,
inventions, innovations, concepts, developments, designs,
processes, procedures and improvements (“Inventions”)
which are made or conceived by you, under your direction or by you
jointly with others during the course of your employment with us or
within six months after the termination of your employment with us
(including Inventions created outside of working hours), whether or
not patentable or copyrightable, will be work made for hire and our
sole property if related to our business or if created using our
resources. You also agree that any copyrights and other proprietary
interests in such Inventions will belong to us, and you will
promptly and completely disclose and assign all those Inventions to
us. You agree that, from time to time as we may request, you will
sign all documents and do all other things which may be necessary
to secure or establish our ownership of such Inventions and we will
reimburse you for the actual and reasonable expenses you incur in
this regard. Your knowledge base, experience, expertise and
skillsets will belong exclusively to you and are excluded from this
Agreement. Any of your Inventions which were recorded or written by
you before entering into this Agreement are also excluded from this
Agreement and shall belong to you provided that you do not
incorporate any such Inventions into any work product created for
us.
(d) The provisions of this
Section 3 are for our benefit and we will have all rights and
remedies to enforce such provisions. Where a provision grants
rights alternatively to us or our customers, we shall determine in
our sole discretion, the appropriate allocation of such
rights.
4. Restrictive Covenants
. You acknowledge that, as part of
our management team, you will be put in a position of trust and
confidence and have access to Confidential Information, including
information about our operations and employees, you will be in
contact with customers and prospective customers, you will
participate in the preparation and submission of bids and proposals
to customers and prospective customers, and you will have a role in
the formulation and implementation of our strategic plans.
Accordingly, for good and valuable consideration, the adequacy of
which is hereby acknowledged by you, you specifically agree that it
is both reasonable and essential for the protection of our business
interests that you agree to the restrictions set forth in
Section 5 and Section 6 below.
5. Restrictions Against Post-Employment
Solicitation .
(a) If your employment is terminated
for any reason, including resignation by you or termination
by us, with or without Cause (see Section 8(a) below) ,
then for a period of one (1) year immediately following the
termination of your employment, you agree that you will not, on
your own or on behalf of or in connection with anyone
else:
(i) directly or indirectly solicit,
interfere with or attempt to entice away from us, any
emplo