Employment Agreement dated June 9, 2008 between Scott Krenz and the Company



 Exhibit 10.1 
 

 
  

							
		  		  	Sears Tower, Suite 7000	  	
		  		  	233 South Wacker Drive	  	
		  		  	Chicago, Illinois 60606	  	
		  		  	telephone +1 (312) 496-1621	  	
	June 9, 2008	  		  	facsimile +1 (312) 496-1038	  	
		  		  	www.heidrick.com	  	

 PERSONAL AND CONFIDENTIAL 
 Mr. Scott Krenz 
 826 W. Illinois Avenue 
 Palatine, Illinois 60067 
 Dear Scott: 
 Congratulations! On behalf of Heidrick & Struggles, Inc. (the “Company”), I am pleased to confirm the terms of your employment arrangement in this letter agreement (the “Agreement”). We are enthusiastic about
your commitment to integrity, a spirit of partnership and collegiality, all of which are such an important part of our culture. 
  

	 	1.	Start Date: You will commence employment on August 4, 2008 (the “Effective Date”). 

  

	 	2.	Title: You will serve as Executive Vice President & Chief Financial Officer reporting directly to the Company’s Chief Executive Officer.


  

	 	3.	Location: You will be located in the Chicago Corporate office. 

  

	 	4.	Base Salary: You will receive a monthly salary of $31,250 (which is equivalent to $375,000 annually) payable at the end of each month. 

  

	 	5.	Target Bonus: You will participate in the Company’s management incentive plan. Your target bonus will be 100% of your base salary. Your 2008 bonus will be
guaranteed at $156,250.00 (this reflects the approximate pro-rated amount of the target bonus based on the amount of time during which you will be employed in 2008), payable in cash on or before March 31, 2009, with 15% of the bonus amount
deferred and vesting ratably over a three year period. Bonuses earned and payable beyond 2009 will be payable per the Company’s policy at that time. All bonuses are discretionary and are not earned until approved by the HSII Human Resources and
Compensation Committee of the Board of Directors (“HRCC”). Bonuses are only payable if you are employed by the Company on the date such bonus is paid. 

  

	 	6.	Sign-On Bonus: You will receive a sign-on cash bonus of $100,000 payable within thirty (30) business days of your employment start date or the next applicable
payroll period. If you resign from the Company “for any reason” or you are terminated by the 








 

 
 Company for “Cause” as defined herein, you will reimburse the Company immediately for the full amount
paid (reduced on a pro-rated basis by one twenty fourth per full month since your employment start date). Further, you authorize us to deduct and/or offset that amount from any compensation or other sums that may be due to you at that time, and you
will repay the balance after such deduction of the money remaining due to the Company. 
  

	 	7.	Sign-On Equity: You will receive: 

  

	 	a.	An award of stock options to purchase 7,500 Heidrick & Struggles International, Inc. (“HSII”) common shares to be granted on September 30, 2008. The options
will vest at a rate of one-third on each of the first, second and third anniversaries of the date of grant and will have a ten (10) year term with an exercise price equal to the closing price of a Company common share on September 30,
2008. 

  

	 	b.	An award of 5,000 restricted stock units to be granted on September 30, 2008. The RSUs will vest at a rate of one-third on each of the first, second and third anniversaries of
the date of grant and upon vest will convert into shares of HSII common stock on a one-for-one basis. 

  

	 	8.	Benefits: You will be eligible to participate in the Company’s benefit programs at the same level as other employees at your level. Our benefits program includes group
health, dental, vision, life/AD&D, long-term disability, short-term disability salary continuation, paid holidays, flexible spending accounts, the Heidrick & Struggles, Inc. 401(k) Profit-Sharing and Retirement Plan, and the Deferred
Compensation Plan. You will also be eligible to participate in the Company’s Physical Examination and Financial Planning Program. Your eligibility for all such programs and plans is determined under the terms of those programs/plans. Any
discrepancy between this summary and the company’s plan documents will be resolved in favor of the plan documents. Our benefits program, compensation programs, and policies are reviewed from time to time by Company management and may be
modified, amended, or terminated at any time. 

  

	 	9.	Business Expenses: The Company will reimburse you for your business expenses in accordance with its policies. 

  

	 	10.	Employment authorization. Pursuant to the Immigration and Nationality Act, our company is required to verify the identity and employment authorization of all new hires. In
order to comply with this legal obligation, we must complete an Employment Eligibility Verification Form I-9 within three days of hire. We have enclosed a Form I-9 for your review. Please note that you will need to provide either (i) one
document from “List A” or (ii) one document from “List B” and one document from “List C” of the form (see page two of the enclosed I-9 Form). Your initial and continuing employment will be subject to your having
the ability to work legally in the United States. If you anticipate having difficulty completing the Form I-9 or producing the required documents, please advise me as soon as possible. 








 

 
  

	 	11.	Compliance with Policies: Subject to the terms of this Agreement, you agree that you will comply in all material respects with all policies and procedures applicable to
similarly situated employees of the Company, generally and specifically. 

  

	 	12.	Termination of Employment: 

  

	 	a.	Employment At Will: You will be an “employee at will” of the Company, meaning that either party may terminate the employment relationship at any time for any reason
(with or without cause or reason) upon written notice to the other party. A period of notice shall only be required if it is expressly provided in writing under written Company employment policies in effect at the time of such termination.


  

	 	b.	No Notice Period in Case of Termination for Cause: Notwithstanding any period of notice under written Company employment policies in effect at the time of termination, the
Company shall have the right to terminate your employment for Cause immediately upon written notice. 

  

	 	c.	Compensation Upon Termination: Upon the termination of your employment, you will be paid your Base Salary up through your last day of work (the “Termination Date”),
and any other amounts required by law. Under the Company’s Severance Pay Plan, you will be eligible for a severance benefit equal to twelve (12) months of your Base Salary plus your Target Bonus in the event the Company terminates your
employment without Cause, as defined in this Plan. Under the Company’s Change in Control Plan, you will be eligible for a severance benefit equal to two times (2x) your Base Salary plus your Target Bonus in the event of a change in control
and termination of employment per the terms and conditions of this Plan. The Severance Pay Plan and the Change in Control Plan may be amended or modified at any time at the discretion of the HRCC. 

  

	 	d.	Definition of Cause: For purposes of this Agreement, “Cause” shall mean any of the following: (i) your engagement, during the performance of your duties
hereunder, in acts or omissions constituting dishonesty, fraud, intentional breach of fiduciary obligation or intentional wrongdoing or malfeasance; (ii) your conviction for a felony; (iii) your material violation or breach of any
provision of this Agreement; (iv) your unauthorized use or disclosure of confidential information pertaining to the Company’s business; (v) your engagement in conduct causing demonstrable injury to the Company or its reputation;
(vi) your unreasonable failure or refusal to perform your duties as the Company reasonably requires, to meet goals reasonably established by the Company, or to abide by the Company’s policies for the operation of its business, and the
continuation thereof after the receipt by you of written notice from the Company; (vii) your illegal use of drugs or use of alcohol or intoxication on work premises, during working time, or which interferes with the performance of your duties
and obligations on behalf of the Company; or (viii) your death or Disability, as hereinafter defined. For purposes of this Agreement, “Disability” shall mean that you have been unable, for six (6) consecutive months, to perform
your duties under this Agreement even with accommodation, as a result of physical or mental illness or injury. 








 

 
  

	 	e.	Return of Materials: Upon the termination of your employment, you agree to return to the Company, all Company property, including all materials furnished to you during your
employment (including but not limited to keys, computers, automobiles, electronic communication devices, files and identification cards) and all materials created by you during your employment. In addition, you agree that upon the termination of
your employment you will provide the Company with all passwords and similar information which will be necessary for the Company to access materials on which you worked or to otherwise continue in its business. 

  

	 	13.	Confidentiality: In the course of your employment with the Company you will be given access to and otherwise obtain knowledge of certain trade secrets and confidential and
proprietary information pertaining to the business of the Company and its affiliates. During the term of your employment with the Company and thereafter, you will not, directly or indirectly, without the prior written consent of the Company,
disclose or use for the benefit of any person, corporation or other entity, or for yourself, any trade secrets or other confidential or proprietary information concerning the Company or its affiliates, including, but not limited to, information
pertaining to their clients, services, products, earnings, finances, operations, marketing, methods or other activities; provided, however, that the foregoing shall not apply to information which is of public record or is generally known, disclosed
or available to the general public or the industry generally (other than as a result of your breach of this covenant or the breach by another employee of his or her confidentiality obligations). Notwithstanding the foregoing, you may disclose such
information as is required by law during any legal proceeding or to your personal representatives and professional advisers as is required for purposes of rendering tax or legal advice, and, with respect to such personal representatives and
professional advisers, you shall inform them of your obligations hereunder and take all reasonable steps to ensure that such professional advisers do not disclose the existence or substance thereof. Further, you shall not, directly or indirectly,
remove or retain, and upon termination of employment for any reason you shall return to the Company, any records, computer disks or files, computer printouts, business plans or any copies or reproductions thereof, or any information or instruments
derived therefrom, arising out of or relating to the business of the Company and its affiliates or obtained as a result of your employment by the Company. 

  


	 	14.	Non-Solicitation/Non-Competition. Without the prior written consent of the Company, during the term of your employment with the Company and for a period of twelve
(12) months after the termination of your employment with the Company, either unilaterally by you or by the Company for Cause, you shall not (i) become engaged in or otherwise become interested in, whether as an owner, officer, employee,
consultant, director, stockholder, or otherwise, any company, enterprise or entity that provides or intends to provide services similar to those provided by the Company in the geographical area which you served during your employment with the
Company; (ii) directly or indirectly solicit or assist any other person in soliciting any client of the 








 

 
 Company with whom you had direct professional contact during the twelve (12) months immediately prior to
the termination of your employment with the Company and during which you learned confidential information, or whose account you oversaw during your employment with the Company; (iii) directly or indirectly solicit, or assist any other person in
soliciting, any employee of the Company or its affiliates (as of your termination of employment with the Company) or any person who, as of such date, was in the process of being recruited by the Company or its affiliates, or induce any such employee
to terminate his or her employment with the Company or its affiliates; or (iv) hire or assist another in hiring any employee of the Company or its affiliates who potentially possesses the Company or its Affiliate’s Confidential Information
for a position where the employee’s knowledge of such information might be relevant. The provisions of this Section 15 shall be in addition to any restrictive covenants that are set forth in or otherwise required by Company benefit plans.
In the case of a discrepancy between this Section and any such restrictive covenant, the more restrictive language will apply. 
  

	 	15.	Other Legal Matters: 

  

	 	a.	No Other Agreements/Obligations: You have advised the Company that your execution and performance of the terms of this Agreement do not and will not violate any other
agreement binding on you or the rights of any third parties and you understand that in the event this advice is not accurate the Company will not have any obligation to you under this Agreement. 

  

	 	b.	Negotiation of Agreement: You acknowledge that you negotiated the terms of this Agreement with the Company and that you enter into this Agreement voluntarily.


  

	 	c.	Applicable Legal Standards: You will be an employee of the Company’s United States operations and agree that your employment with the Company shall be governed by the
laws of the United States of America and the State of Illinois. 

  

	 	d.	Arbitration: Any controversy or claim arising out of or relating to this Agreement or for the breach thereof, or your employment, including without limitation any statutory
claims (for example, claims for discrimination including but not limited to discrimination based on race, sex, sexual orientation, religion, national origin, age, marital status, handicap or disability; and claims relating to leaves of absence
mandated by state or federal law), breach of any contract or covenant (express or implied), tort claims, violation of public policy or any other alleged violation of statutory, contractual or common law rights (and including claims against the
Company’s officers, directors, employees or agents) if not otherwise settled between the parties, shall be conclusively settled by arbitration to be held in Chicago, Illinois, in accordance with the American Arbitration Association’s
Employment Arbitration Rules and Mediation Procedures (the “Rules”). Arbitration shall be the parties’ exclusive remedy for any such controversies, claims or breaches. The parties also consent to personal jurisdiction in Chicago,
Illinois with respect to such arbitration. The award resulting from 








 

 
  

	 	 	such arbitration shall be final and binding upon both parties. This Agreement shall be governed by the laws of the United States of America and the State of Illinois without regard
to any conflict of law provisions of any jurisdiction. You and the Company hereby waive the right to pursue any claims relating to this Agreement, to your employment or to the termination thereof, through civil litigation outside the arbitration
procedures of this provision, unless otherwise required by law. You and the Company each have the right to be represented by counsel with respect to arbitration of any dispute pursuant to this paragraph. The arbitrator shall be selected by agreement
between the parties, but if they do not agree on the selection of an arbitrator within 30 days after the date of the request for arbitration, the arbitrator shall be selected pursuant to the Rules. With respect to any Claim brought to arbitration
hereunder, both you and the Company shall be entitled to recover whatever damages would otherwise be available to you/it in any legal proceeding based upon the federal and/or state law applicable to the Claim, except that parties agree they shall
not seek any award for punitive damages for any claims they may have under this Agreement. The decision of the arbitrator may be entered and enforced in any court of competent jurisdiction by either the Company or Employee. Each party shall pay the
fees of their respective attorneys (except as otherwise awarded by the arbitrator), the expenses of their witnesses and any other expenses connected with presenting their cases, other costs, including the fees of the mediator, the arbitrator, the
cost of any record or transcript of the arbitration, and administrative fees, shall be borne equally by the parties, one-half by you, on the one hand, and one-half by the Company, on the other hand. Should either party pursue any dispute or matter
covered by this section by any method other than said arbitration, then the other party shall be entitled to recover all damages, costs, expenses, and attorneys’ fees incurred as a result of such action. The provisions contained in this Section
shall survive the termination and/or expiration of this Agreement. 

  

	 	e.	Notice: All notices and other communications under this Agreement shall be in writing to you at the above-referenced address or to the Company at its Chicago Headquarters,
directed to the attention of the General Counsel. 

  

	 	f.	Full and Complete Agreement: This letter Agreement contains our entire understanding with respect to your employment and can be amended only in writing and signed by the
Chief Executive Officer or General Counsel. This Agreement supersedes any and all prior agreements, whether written or oral, between you and the Company, that are not specifically incorporated by reference herein. You and the Company specifically
acknowledge that no promises or commitments have been made that are not set forth in this letter. 

  

	 	g.	Severability: If any provision of this Agreement or the application thereof is held invalid, such invalidity shall not affect other provisions or applications of this
Agreement that can be given effect without the invalid provision or application and, to such end, the provisions of this Agreement are declared to be severable. 








 

 
  

	 	h.	Survival of Provisions: The provisions of Sections 12 (b) and (c) and 13 through 15 of this Agreement shall survive the termination of your employment with the
Company and the expiration or termination of this Agreement. 

 Scott, I am very much looking forward to you joining the Heidrick &
Struggles team. I know that you will make an important contribution to the Company. 
  

	
	Sincerely,
	
	 /s/ L. Kevin Kelly

	L. Kevin Kelly
	Chief Executive Officer

 I hereby accept the terms and conditions of employment outlined in this Agreement. 

							
				
	 /s/ Scott Krenz
	 		 	 6/9/08                                      
      
	 	
	Scott Krenz	 		 	Date	 	

 Copy: 
 Robert Hines,
Chief Operating Officer, Americas 
 K. Steven Blake, EVP & Chief Legal Officer