Amended and Restated Employment Letter Agreement



 Exhibit 10.2 
 



 
  

			
	May 18, 2011	  	 233 South Wacker Drive,
  

Suite 4200, Chicago, IL 60606,
  

United States 
  
 telephone +1 312 496 1200 
  
 facsimile +1 312 496 1290 
  
 www.heidrick.com


 Private & Confidential 
 Mr. Stephen W. Beard 
 3600 N. Lakeshore Drive 

Apt. 1302 
 Chicago, IL 60613 

Dear Stephen: 
 On behalf of
Heidrick & Struggles, Inc. (“HSII” or the “Company”), I am pleased to confirm the new terms of your employment arrangement in this letter agreement (the “Agreement”). All amounts in this Agreement are
denominated in U.S. dollars. 
  

	1.	Effective Date: The new terms of employment are effective as of December 1, 2010. 


 

	2.	Title: You will serve as Executive Vice President, General Counsel & Corporate Secretary, reporting directly to the Chief Executive Officer. You will
have such duties and responsibilities as are customarily assigned to such position, as well as such other duties and responsibilities that may be assigned to you from time to time by the Chief Executive Officer. You agree that you will devote your
full time, energy, and skill to the business of the Company and to the promotion of the Company’s best interest, and shall not work or perform services for any other employer as an employee, consultant or otherwise during the term of your
employment. 

  

	3.	Location: You will be based in the Company’s Chicago office. 

  

	4.	 Base Salary: As of the Effective Date, you will receive a monthly base salary of $22,916.67 (which is equivalent to $275,000 annually). The base
salary as in effect from time to time may not be reduced and is subject to review by the 










	 	
Human Resources and Compensation Committee of the Board of Directors (“HRCC”) beginning in 2011. 


 

	5.	Management Incentive Plan (MIP) Participation: You will participate in the MIP at the Tier 1 level. 


 

	6.	Management Bonus: For 2010 you shall be eligible for a management bonus as follows: 


 

	 	a.	A target management bonus equal to $55,000, which reflects pro ration of your target bonus for the period January 1, 2010 to June 30, 2010 as Deputy General
Counsel and Chief Compliance Officer; and 

  

	 	b.	A target management bonus equal to $137,500, which reflects pro ration of your target bonus for the period July 1, 2010 to December 31, 2010 during which you
served as Interim General Counsel and General Counsel & Corporate Secretary. 

 Effective January 1,
2011, you will be eligible for an annual target management bonus equal to 100% of your base salary. The actual bonus payout is subject to review by the Human Resources and Compensation Committee of the Board of Directors (“HRCC”).

  

	7.	Incentive Compensation and Other Plans: You will be eligible to participate in other management compensation plans, including the Management Stock Option Plan,
the Change in Control Severance Plan at Tier 1 and the Management Severance Pay Plan as a Top Employee, as such plans may be amended from time to time. 

  

	8.	Promotional Equity Award: You will receive a one-time promotional award of RSUs having a value of $100,000, which will vest at the rate of one-third on each of
the first, second and third anniversaries of the date they are granted, subject to the approval of the HSII Human Resources and Compensation Committee of the Board of Directors (“HRCC”) and your execution of the grant agreements.


  

	9.	Annual Equity Awards: You will receive consideration for annual equity grants as part of your performance and compensation review. Annual equity awards are
subject to the approval of the HRCC. 

  

	10.	Payment of Bonuses. All bonuses are not earned until approved by HRCC. In addition, bonuses, promotional awards and long term incentives are only payable if you
are employed by the Company on the date such awards are paid. 

  

	11.	 Benefits: You will be eligible to participate in the Company’s benefit programs to the same extent as other employees at your level. Our
benefits program includes group health, dental, vision, life/AD&D, long-term disability, short-



  
 



 
 233 South Wacker Drive, Suite 4200, Chicago, IL 60606, United States   telephone +1 312
496 1200   facsimile +1 312 496 1290 









	 	
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. 

  

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


 

	13.	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. 

  

	14.	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. You will also be entitled to participate in the Change in Control Severance Plan as a Tier 1 executive and Section 16(b) Officer as well as the Severance Pay Plan as a Tier 1 executive, as such, plans may be modified or amended
from time to time. 


  

	 	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, 



  
 



 
 233 South Wacker Drive, Suite 4200, Chicago, IL 60606, United States   telephone +1 312
496 1200   facsimile +1 312 496 1290 









	 	
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.


  

	15.	 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




  
 



 
 233 South Wacker Drive, Suite 4200, Chicago, IL 60606, United States   telephone +1 312
496 1200   facsimile +1 312 496 1290 









	 	
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. 

  

	16.	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 a role that provides or intends to
provide similar services in the geographical area which you are serving currently; (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 16 shall be in addition to any restrictive covenants that are set
forth in or otherwise required by Company benefit plans. 

 Each of the foregoing restrictions contained in this
Section 16 constitutes an entirely separate and independent restriction on you and shall be read and 

  
 



 
 233 South Wacker Drive, Suite 4200, Chicago, IL 60606, United States   telephone +1 312
496 1200   facsimile +1 312 496 1290 








 
construed independently of the other undertakings and agreements herein contained. You and the Company agree that the restrictions contained in this Section 16 are reasonable in scope and
duration and are necessary to protect the Company’s confidential information and other business interests. If any provision of this Section 16 as applied to any party or to any circumstance is adjudged by an arbitrator or court of
competent jurisdiction to be invalid or unenforceable, the same will in no way affect any other circumstance or the validity or enforceability of this Agreement. If any such provision, or any part thereof, is held to be unenforceable because of the
scope, duration or geographic area covered thereby, the parties agree that the court or arbitrator making such determination will have the power to reduce the scope and/or duration and/or geographic area of such provision, and/or to delete or revise
specific words or phrases, and in its modified form, such provision will then be enforceable and will be enforced. 
  

	17.	The parties agree and acknowledge that the breach of Section 15 or 16 will cause irreparable damage to the Company, and upon actual or threatened breach of any
provision of either section the Company will be entitled to seek from a court of competent jurisdiction immediate injunctive relief, specific performance or other equitable relief without the necessity of posting a bond or other security and that
this will in no way limit any other remedies which the Company may have (including, without limitation, the right to seek monetary damages). 

  

	18.	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.	 Waiver of Jury Trial: Each of the parties hereto irrevocably waives any and all rights to trail by jury in any legal proceeding arising out of
your 



  
 



 
 233 South Wacker Drive, Suite 4200, Chicago, IL 60606, United States   telephone +1 312
496 1200   facsimile +1 312 496 1290 









	 	
employment or related to this Agreement or the transactions contemplated hereby. 

  

	 	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 15 through 16 of this Agreement shall survive the termination of your employment with the Company and the
expiration or termination of this Agreement. 

  

	 	i.	Entire Agreement: This Agreement and, with respect to Sections 8 and 9, your equity award agreements and governing equity award plans constitute the entire
agreement of the parties hereto with respect to the subject matter hereof, and supersede all prior agreements and understandings of the parties hereto, oral or written, with respect to the subject matter hereof. 


  
 



 
 233 South Wacker Drive, Suite 4200, Chicago, IL 60606, United States   telephone +1 312
496 1200   facsimile +1 312 496 1290 









	
	Stephen, I wish you all the best in your new role.
	
	Sincerely,
	
	




	
	L. Kevin Kelly
	
	Chief Executive Officer

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

 

					
	/s/ Stephen W. Beard	 		 	May 18, 2011
	Signature	 		 	Date

 Copy: 

  
 



 
 233 South Wacker Drive, Suite 4200, Chicago, IL 60606, United States   telephone +1 312
496 1200   facsimile +1 312 496 1290