Exhibit 10.17


 


hudson
highland group executive employment agreement


 


This employment agreement
(the “Agreement”), by and between Hudson Highland Group, Inc. (the “Company”) and Neil J. Funk (the “Executive”),
is amended and restated effective January 26, 2012.


 


WHEREAS, the Company wishes
to continue to employ the Executive and the Executive wishes to continue to be employed in accordance with the terms and conditions
set forth below.


 


NOW, THEREFORE, in consideration
of the conditions and mutual covenants contained in this Agreement, the parties agree as follows:


 


1.            Defined
Terms.


 


(a)          Affiliate.
The term “Affiliate” means each entity that is required to be included in the Company’s controlled group of corporations
within the meaning of Code Section 414(b), or that is under common control with the Company within the meaning of Code Section
414(c); provided that the phrase “at least 50 percent” shall be used in place of the phrase “at least
80 percent” each place it appears therein or in the regulations thereunder.


 


(b)          Code.
The term “Code” means the Internal Revenue Code of 1986, including any amendments thereto or successor tax codes thereof.


 


(c)          Separation
from Service. The term “Separation from Service” means an Executive’s termination of employment from the
Company and its Affiliates, or if the Executive continues to provide services following his or her termination of employment, such
later date as is considered a separation from service, within the meaning of Code Section 409A, from the Company and its Affiliates.
Specifically, if Executive continues to provide services to the Company or an Affiliate in a capacity other than as an employee,
such shift in status is not automatically a Separation from Service. The Executive will be presumed to have terminated employment
from the Company and its Affiliates when the level of bona fide services provided by the Executive (whether as an employee or independent
contractor) to the Company and its Affiliates permanently decreases to a level of twenty percent (20%) or less of the level of
services rendered by such individual, on average, during the immediately preceding 36 months (or such lesser period of service).
Notwithstanding the foregoing, if the Executive takes a leave of absence for purposes of military leave, sick leave or other bona
fide leave of absence, the Executive will not be deemed to have incurred a Separation from Service for the first six (6) months
of the leave of absence, or if longer, for so long as the Executive’s right to reemployment is provided either by statute
or by contract; provided that if the leave of absence is due to a medically determinable physical or mental impairment that can
be expected to result in death or last for a continuous period of not less than six (6) months, where such impairment causes the
Executive to be unable to perform the duties of his or her position of employment or any substantially similar position of employment,
the leave may be extended for up to twenty-nine (29) months without causing a Termination of Employment.


 


2.           Employment.
The Company will employ the Executive and the Executive accepts employment as Vice President, Internal Audit. The Executive will
perform duties normally associated with such position and/or other duties as may be assigned from time to time during the Term
as defined in Section 3 below. The Executive shall perform such duties in a manner consistent with applicable laws and regulations
and any code of ethics, compliance manual, employee handbook or other policies and procedures adopted by the Company from time
to time and subject to any written directives issued by the Company from time to time. The Executive must acknowledge receipt of
the Company’s Ethics Policy and confirm that the Executive will comply with the Policy. Failure to confirm compliance annually
with the Company’s Ethics Policy will justify termination for cause unless, at the sole discretion of the Board, non-compliance
is deemed non-material.


 



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3.           Term
of Employment. The Executive's employment under this Agreement will commence on the date hereof and will continue for a period
of one (1) year thereafter, subject to earlier termination as provided in Section 8 (the “Term”). This Agreement and
the Term will be automatically renewed and extended for periods of one (1) year unless the Company or the Executive provides written
notice no less than thirty (30) days prior to the expiration of the then-current Term of its or the Executive’s desire not
to renew this Agreement.


 


4.           Scope
of Responsibilities and Duties. The Executive agrees to devote the Executive’s full business time, attention, efforts
and energies in performance of the Executive’s duties and responsibilities hereunder. While employed by the Company, the
Executive may not engage in any employment other than for the Company, in any conflicting business activities, or have any financial
interest, directly or indirectly, in any business competing with the Company or otherwise engaged in the business of the Company
or its affiliates. The foregoing does not prevent the Executive from (1) serving on the Board of directors of another organization
with the consent of the CEO of the Company or (2) passively investing in publicly traded securities; provided such investments
do not require services on the part of the Executive which would in any way impair the performance of the Executive’s duties
pursuant to this Agreement.


 


5.           Compensation
and Benefits. The Company will provide the Executive with the following compensation and benefits during the Term:


 


(a)          The
Company will pay the Executive a salary of $250,000 on an annualized basis, payable in accordance with the payroll practices of
the Company in effect from time to time, and less such taxes and other deductions required by applicable law or authorized by the
Executive (the “Base Salary”).


 


(b)          The
Executive will be entitled to accrue paid vacation at the rate of the greater of (i) four (4) weeks per year, or (ii) the vacation
allowance as provided under the Company’s vacation plan that applies to similarly situated employees working at the office
location at which the Executive is based. In addition, the Company will provide the Executive with other benefits of employment
offered, from time to time to similarly situated employees at the office location at which the Executive is based.


 


(c)          The
Executive will receive an annual bonus as provided under the Company’s Senior Management Bonus Plan as is in effect from
time to time.


 


6.           Additional
Agreements. The Executive’s employment hereunder is further contingent upon the Executive’s simultaneous execution
of the Confidentiality, Non-Solicitation and Work Product Assignment Agreement and Mutual Agreement to Arbitrate Claims, which
is attached as Attachment A and forms a part of this Agreement.


 


7.           Representations
and Warranties. The Executive represents and warrants as follows:


 


(a)          All
information, oral and written (including, but not limited to information contained on the Executive’s resume), provided by
the Executive during the recruiting and employment process is accurate and true to the best of the Executive’s knowledge,
and such information does not include any misleading or untrue statement or omit to state any fact necessary to make the information
provided not misleading.


 


(b)          The
Executive has never been the subject of any investigation or subject to any disciplinary action by any governmental agency, industry
self-regulatory body or other employer.


 


(c)          The
execution, delivery and performance of this Agreement by the Executive and the Executive’s employment hereunder are not in
violation of:


 


(i)          the
terms, including any non-competition, non-disclosure, non-solicitation or confidentiality provisions, of any written or oral agreement,
arrangement or understanding to which the Executive is a party or by which the Executive is bound; or


 



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(ii)         any
United States federal or state statute, rule, regulation, or other law, or any judgment, decree or order applicable or binding
upon the Executive.


 


8.           Termination.
This Agreement and the Executive’s employment may be terminated prior to the expiration of the Term as follows:


 


(a)          Death.
If the Executive dies during the Term, this Agreement shall automatically terminate and the Company shall have no further obligation
to the Executive or the Executive’s estate, except to pay the Executive’s estate that portion of the Base Salary earned
through the date on which the Executive’s death occurs.


 


(b)          Disability.
If the Executive is unable to perform the Executive’s essential job duties and responsibilities due to mental or physical
disability for a total of twelve (12) weeks, whether consecutive or not, during any rolling twelve (12) month period, the Company
may terminate the Executive’s employment and this Agreement upon five (5) days’ written notice to the Executive. For
purposes of this Agreement, the Executive will be considered disabled when the Company, with the advice of a qualified physician,
determines that the Executive is physically or mentally incapable (excluding infrequent and temporary absences due to ordinary
illness) of performing the Executive’s essential job duties. The Executive shall cooperate with the Company in obtaining
the advice of a qualified physician regarding the Executive’s condition. In the event of termination pursuant to this Section
8(b), the Company will be relieved of all obligations under this Agreement, provided that the Company will pay to the Executive
that portion of the Base Salary under Section 5(a) which has been earned through the date on which such termination occurs.


 


(c)          Discharge
without Cause or Termination on Expiration. The Company may terminate the Executive and this Agreement at any time during the
Term for any reason, without Cause (as defined in Section 8(e) below) upon thirty (30) days’ written notice to the Executive.
If the Company gives notice of non-renewal of employment within the 30-day period as provided in Section 3, it will be treated
as a termination without cause. Upon such termination, the Company will have no further liability to the Executive other than to
provide the Executive with (i) that portion of the Base Salary under Section 5(a) earned through the date of the termination,
(ii) severance pay in an amount equal to the Executive’s then-current Base Salary, less applicable deductions, for a
period of twelve (12) months (the “Severance Period”) following the Executive’s Separation from Service, and
(iii) the Company’s portion of the premium for continued coverage under the Company’s group health and dental insurance
plan during the Severance Period following the Executive’s termination, provided the Executive applies and remains eligible
for such continuation coverage under applicable law, and provided further that the Executive authorizes the Company to deduct only
the Executive’s portion of such premiums from the severance payments. It is understood that the period the Company makes
such payments will run concurrently with the period of continuation coverage for which the Executive may be eligible under applicable
law. The Executive’s receipt of the severance payments and premium payments by the Company set forth in this Section 8(c)
are conditioned upon the Executive executing a comprehensive release and waiver agreement and covenant not to sue as provided by
the Company at the time of termination. Severance payments will be made in equal installments on dates corresponding with the Company’s
regular pay dates during the Severance Period. Notwithstanding the foregoing, if the severance pay that is payable during the first
six (6) months following the Executive’s Separation from Service exceeds two times the lesser of (1) the Executive’s
annualized compensation paid by the Company for the calendar year preceding the calendar year in which the Separation from Service
occurs (as adjusted for any increase during that year that was expected to continue indefinitely if the Separation from Service
had not occurred), or (2) the compensation limit in effect pursuant to Code Section 401(a)(17) for the calendar year in which the
Executive’s Separation from Service occurs, then payment of such excess shall be delayed and paid in a lump sum on the first
day of the seventh (7th) month following the month in which the Separation from Service occurs, and in such event,
the payment shall be accompanied by a payment of interest calculated at the rate of interest
announced by the Federal Reserve Board (or any successor thereto) from time to time as the “federal funds rate”, such
rate to be determined on the date of the Executive’s termination of employment, compounded quarterly.


 



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(d)          Termination
for Cause. The Company may terminate the Executive’s employment and this Agreement at any time during the Term for Cause
as defined below. In such case, this Agreement and the Executive’s employment shall terminate immediately and the Company
shall have no further obligation to the Executive, except that the Company shall pay to the Executive that portion of the Base
Salary under Section 5(a) earned through the date on which such termination occurs.


 


(e)          Definition
of Cause. For purposes of this Agreement, Cause shall be defined as:


 


(i)          the
willful or negligent failure of the Executive to perform the Executive's duties and obligations in any material respect (other
than any failure resulting from Executive's disability), which failure is not cured within fifteen (15) days after receipt of written
notice thereof, provided that there shall be no obligation to provide any additional written notice if the Executive's failure
to perform is repeated and the Executive has previously received one (1) or more written notices;


 


(ii)         acts
of dishonesty or willful misconduct by the Executive with respect to the Company;


 


(iii)        conviction
of a felony or violation of any law involving moral turpitude, dishonesty, disloyalty or fraud, or a pleading of guilty or nolo
contendere to such charge;


 


(iv)        repeated
refusal to perform the reasonable and legal instructions of the Executive's supervisors;


 


(v)         any
material breach of this Agreement or Attachment A; or


 


(vi)        failure
to confirm compliance with the Company’s Ethics Policy after 10 days’ written notice requesting confirmation.


 


(f)          Resignation.
The Executive may voluntarily resign from employment at any time during the Term upon 3 months’ written notice and in compliance
with the provisions of Attachment A. In such event, the Company shall be relieved of all its obligations under this Agreement,
except that the Company shall pay to the Executive that portion of the Base Salary under Section 5(a) earned through the date on
which such resignation is effective subject to any irrevocable deferral election then in effect.


 


(g)          Continuance
of Obligations. The Executive remains obligated to comply with the Executive's obligations and duties pursuant to Attachment
A despite the termination of this Agreement and the Executive's employment for any reason.


 


(h)          Cooperation.
During employment and after the termination of this Agreement and the Executive’s employment for any reason, the Executive
agrees to cooperate fully with and at the request of the Company in the defense or prosecution of any legal matter or claim in
which the Company, any of its affiliates, or any of their past or present employees, agents, officers, directors, attorneys, successors
or assigns, may be or become involved and which arises or arose during the Executive’s employment. The Executive will be
reimbursed for any reasonable out-of-pocket expenses incurred thereby.


 


(i)          No
Disparagement. During and after the termination of this Agreement and the Executive’s employment for any reason, the
Executive agrees that, except as may be required by the lawful order of a court or agency of competent jurisdiction, the Executive
will not take any action or make any statement or disclosure, written or oral, that is intended or reasonably likely to disparage
the Company or any of its affiliates, or any of their past or present employees, officers or directors.


 



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9.           Change
in Control. Notwithstanding any other provisions of this Agreement to the contrary:


 


(a)          Employment
Period. If a Change in Control (as defined below) occurs when the Executive is employed by the Company, the Company will continue
thereafter to employ the Executive during the period commencing on the date of a Change in Control and ending on the first anniversary
of such date (the “Employment Period”) and thereafter in accordance with Section 3 of this Agreement, and the Executive
will remain in the employ of the Company in accordance with and subject to the terms and provisions of this Agreement.


 


(b)          Covered
Termination. If there is any termination of the Executive’s employment during the Employment Period (subject to Section
9(e)) by the Executive for Good Reason (as defined below), or by the Company other than by reason of (i) death pursuant to
Section 8(a), (ii) disability pursuant to Section 8(b), or (iii) Cause (a “Covered Termination”), then the
Executive shall be entitled to receive, and the Company shall promptly pay, that portion of the base salary under Section 5(a)
earned through the date of the termination and, in lieu of further base salary for periods following such termination, as liquidated
damages and additional severance pay, the Termination Payment pursuant to Section 9(c).


 


(c)          Termination
Payment.


 


(i)          The
“Termination Payment” shall be an amount equal to (A) the Executive’s annual base salary immediately prior to
the termination of the Executive’s employment plus (B) the Executive’s target annual bonus under the Company’s
Senior Management Bonus Plan for the year in which the termination of the Executive’s employment occurs. The Termination
Payment shall be paid to the Executive in cash equivalent on the first day of the seventh (7th) month following the
month in which the Separation from Service occurs, and in such event, the Termination Payment shall
be accompanied by a payment of interest calculated using the annual rate of interest announced by the Federal Reserve Board
(or any successor thereto) from time to time as the “federal funds rate”, such rate to be
determined on the date of the Executive’s termination of employment, compounded quarterly. Such lump sum payment shall
not be reduced by any present value or similar factor, and the Executive shall not be required to mitigate the amount of the Termination
Payment by securing other employment or otherwise, nor will such Termination Payment be reduced by reason of the Executive securing
other employment or for any other reason. The Termination Payment shall be in lieu of, and acceptance by the Executive of the Termination
Payment shall constitute the Executive’s release of any rights of the Executive to, any other cash severance payments under
any Company severance policy, practice or agreement.


 


(ii)         Notwithstanding
any other provision of this Agreement, if any portion of the Termination Payment or any other payment under this Agreement, or
under any other agreement with or plan of the Company or its Affiliates (in the aggregate, “Total Payments”), would
constitute an “excess parachute payment” and would, but for this Section 9(c)(ii), result in the imposition on the
Executive of an excise tax under Code Section 4999 (the “Excise Tax”), then the Total Payments to be made to the Executive
shall either be (A) delivered in full, or (B) delivered in the greatest amount such that no portion of such Total Payment would
be subject to the Excise Tax, whichever of the foregoing results in the receipt by the Executive of the greatest benefit on an
after-tax basis (taking into account the applicable federal, state and local income taxes and the Excise Tax).


 



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(iii)        Within
forty (40) days following a Covered Termination or notice by the Company to the Executive of its belief that there is a payment
or benefit due the Executive which will result in an “excess parachute payment”, the Executive and the Company, at
the Company’s expense, shall obtain the opinion (which need not be unqualified) of nationally recognized tax counsel (“National
Tax Counsel”) selected by the Company and reasonably acceptable to the Executive (which may be regular outside counsel to
the Company), which opinion sets forth (A) the amount of the Base Period Income, (B) the amount and present value of Total Payments,
(C) the amount and present value of any excess parachute payments determined without regard to any reduction of the Total Payments
pursuant to Section 9(c)(ii), and (D) the net after-tax proceeds to the Executive, taking into account the tax imposed under Code
Section 4999 if (X) the Total Payments were reduced in accordance with Section 9(c)(ii) or (Y) the Total Payments were not so reduced.
If such National Tax Counsel opinion determines that Section 9(c)(ii)(B) above applies, then the Termination Payment hereunder
or any other payment or benefit determined by such counsel to be includable in Total Payments shall be reduced or eliminated so
that under the bases of calculations set forth in such opinion there will be no excess parachute payment. In such event, payments
or benefits included in the Total Payments shall be reduced or eliminated by applying the following principles, in order: (1) the
payment or benefit with the higher ratio of the parachute payment value to present economic value (determined using reasonable
actuarial assumptions) shall be reduced or eliminated before a payment or benefit with a lower ratio; (2) the payment or benefit
with the later possible payment date shall be reduced or eliminated before a payment or benefit with an earlier payment date; and
(3) cash payments shall be reduced prior to non-cash benefits; provided that if the foregoing order of reduction or elimination
would violate Code Section 409A, then the reduction shall be made pro rata among the payments or benefits included in the Total
Payments (on the basis of the relative present value of the parachute payments). For purposes of such opinion, the value of any
noncash benefits or any deferred payment or benefit shall be determined by the Company’s independent auditors in accordance
with the principles of Section 280G(d)(3) and (4) (or any successor provisions) of the Code, which determination shall be
evidenced in a certificate of such auditors addressed to the Company and the Executive. The opinion of National Tax Counsel shall
be addressed to the Company and the Executive and shall be binding upon the Company and the Executive. If such National Tax Counsel
so requests in connection with the opinion required by this Section 9(c)(iii), the Executive and the Company shall obtain,
at the Company’s expense, and the National Tax Counsel may rely on, the advice of a firm of recognized executive compensation
consultants as to the reasonableness of any item of compensation to be received by the Executive solely with respect to its status
under Section 280G of the Code and the regulations thereunder.


 


(iv) For purposes
of this Agreement, (A) the terms “excess parachute payment” and “parachute payments” shall have the meanings
assigned to them in Section 280G (or any successor provision) of the Code and such “parachute payments” shall
be valued as provided therein; (B) present value shall be calculated in accordance with Section 280G(d)(4) (or any successor provision)
of the Code; and (C) the Executive shall be deemed to pay federal income tax and employment taxes at the Executive’s actual
marginal rate of federal income and employment taxation, and state and local income taxes at the Executive’s actual marginal
rate of taxation in the state or locality of the Executive’s domicile (determined in both cases in the calendar year in which
the termination of employment or notice described in Section 9(c)(iii) above is given, whichever is earlier), net of the maximum
reduction in federal income taxes that may be obtained from the deduction of such state and local taxes. As used in this Agreement,
the term “Base Period Income” means an amount equal to the Executive’s “annualized includable compensation
for the base period” as defined in Section 280G(d)(1) (or any successor provision) of the Code.


 


(v)         The
Company agrees to bear all costs associated with, and to indemnify and hold harmless, the National Tax Counsel of and from any
and all claims, damages, and expenses resulting from or relating to its determinations pursuant to this Section 9(c), except for
claims, damages or expenses resulting from the gross negligence or willful misconduct of such firm.


 


(vi)        This
Section 9(c) shall be amended to comply with any amendment or successor provision to Sections 280G or 4999 of the Code. If such
provisions are repealed without successor, then this Section 9(c) shall be cancelled without further effect.


 


(d)          Additional
Benefits. If there is a Covered Termination and the Executive is entitled to the Termination Payment, then (i) until the earlier
of the end of the Employment Period or such time as the Executive has obtained new employment and is covered by benefits which
in the aggregate are at least equal in value to the following benefits, the Executive shall continue to be covered, at the expense
of the Company, by the same or equivalent health and dental coverage as the Executive was covered by immediately prior to the termination
of the Executive’s employment and such coverage shall count as COBRA continuation coverage, and (ii) the Company shall bear
up to $15,000 in the aggregate during the lifetime of the Executive of fees and expenses of consultants and/or legal or accounting
advisors engaged by the Executive to advise the Executive as to matters relating to the computation of benefits due and payable
under Section 9(c).


 



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(e)          Anticipatory
Termination. Anything in this Agreement to the contrary notwithstanding, if a Change in Control occurs and if the Executive’s
employment with the Company is terminated (other than a termination due to the Executive’s death or as a result of the Executive’s
disability) during the period of 180 days prior to the date on which the Change in Control occurs, and if it is reasonably
demonstrated by the Executive that such termination of employment (i) was at the request of a third party who has taken steps
reasonably calculated to effect a Change in Control or (ii) otherwise arose in connection with or in anticipation of a Change
in Control, then for all purposes of this Section 9 such termination of employment shall be deemed a “Covered Termination”
and the “Employment Period” shall be deemed to have begun on the date of such termination.


 


(f)          Expenses
and Interest. If, after a Change in Control of the Company, (i) a dispute arises with respect to the enforcement of the
Executive’s rights under this Agreement or (ii) any legal or arbitration proceeding shall be brought to enforce or interpret
any provision contained herein or to recover damages for breach hereof, in either case so long as the Executive is not acting in
bad faith, then the Company shall reimburse the Executive for any reasonable attorneys’ fees and necessary costs and disbursements
incurred by the Executive during his or her lifetime as a result of the dispute, legal or arbitration proceeding (“Expenses”),
and prejudgment interest on any money judgment or arbitration award obtained by the Executive calculated at the rate of interest
announced by The Bank of New York, from time to time at its prime or base lending rate from the date that payments to him or her
should have been made under this Agreement. Within ten days after the Executive’s written request therefor, the Company shall
pay to the Executive, or such other person or entity as the Executive may designate in writing to the Company, the Executive’s
reasonable Expenses in advance of the final disposition or conclusion of any such dispute, legal or arbitration proceeding. Any
reimbursements provided hereunder shall be made promptly (but not later than the last day of the calendar year following the calendar
year in which the legal fees or expenses were incurred by the Executive) following the receipt by the Company of a written notice
from the Executive requesting such reimbursement, accompanied by documentation substantiating the amount of such fees and expenses.


 



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(g)          Definition
of Change in Control. For purposes hereof, a “Change in Control” shall be deemed to occur on the first to occur
of any one of the following events: (a) the consummation of a consolidation, merger, share exchange or reorganization involving
the Company, unless such consolidation, merger, share exchange or reorganization is a “Non-Control Transaction” (as
defined below); (b) the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company or an
agreement for the sale or disposition by the Company of all, or substantially all, of the assets of the Company (in one transaction
or a series of related transactions within any period of 24 consecutive months), other than a sale or disposition by the Company
of all, or substantially all, of the Company’s assets to an entity at least 75% of the combined voting power of the voting
securities of which are owned by stockholders of the Company in substantially the same proportions as their ownership of the Company
immediately prior to such sale; (c) any person (as such term is used in Section 13(d) and 14(d)(2) of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”)) (other than (1) the Company, (2) any subsidiary of the Company, (3) a trustee
or other fiduciary holding securities under any employee benefit plan (or any trust forming a part thereof) maintained by the Company
or any subsidiary or (4) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same
proportions as their ownership of stock in the Company) is or becomes the beneficial owner (within the meaning of Rule 13d-3 under
the Exchange Act), directly or indirectly, of securities of the Company (not including in the securities beneficially owned by
such person any securities acquired directly from the Company after the date hereof pursuant to express authorization by the Board
that refers to this exception) representing more than 20% of the then outstanding shares of Common Stock or the combined voting
power of the Company’s then outstanding voting securities; or (d) the following individuals cease for any reason to constitute
a majority of the number of directors then serving: individuals who, as of the date hereof, constitute the entire Board of Directors
of the Company (the “Board”) and any new director (other than a director whose initial assumption of office is in connection
with an actual or threatened election contest) whose appointment or election by the Board or nomination for election by the Company’s
stockholders was approved or recommended by a vote of at least two-thirds of the directors then still in office who either were
directors on the date hereof or whose appointment, election or nomination for election was previously so approved or recommended.
Notwithstanding the foregoing, no “Change in Control” shall be deemed to have occurred if there is consummated any
transaction or series of integrated transactions immediately following which the record holders of the Common Stock immediately
prior to such transaction or series of transactions continue to have substantially the same proportionate ownership in an entity
that owns all or substantially all of the assets or voting securities of the Company immediately following such transaction or
series of transactions. A “Non-Control Transaction” shall mean a consolidation, merger, share exchange or reorganization
of the Company where (a) the stockholders of the Company immediately before such consolidation, merger, share exchange or reorganization
beneficially own, directly or indirectly, more than 50% of the then outstanding shares of common stock and the combined voting
power of the outstanding voting securities of the corporation resulting from such consolidation, merger, share exchange or reorganization
(the “Surviving Corporation”); (b) the individuals who were members of the Board immediately prior to the execution
of the agreement providing for such consolidation, merger, share exchange or reorganization constitute at least 50% of the members
of the board of directors of the Surviving Corporation; and (c) no person (other than (1) the Company, (2) any subsidiary of the
Company or (3) any employee benefit plan (or any trust forming a part thereof) maintained by the Company, the Surviving Corporation
or any subsidiary) is or becomes the beneficial owner, directly or indirectly, of securities of the Company (not including in the
securities beneficially owned by such person any securities acquired directly from the Company after the date hereof pursuant to
express authorization by the Board that refers to this exception) representing more than 20% of the then outstanding shares of
the common stock of the Surviving Corporation or the combined voting power of the Surviving Corporation’s then outstanding
voting securities.


 


(h)          Good
Reason. The Executive shall have “Good Reason” for termination of employment in connection with a Change in Control
of the Company in the event of:


 


(i)          any
breach of this Agreement by the Company, other than an isolated, insubstantial and inadvertent failure not occurring in bad faith
that the Company remedies promptly after receipt of notice thereof given by the Executive;


 


(ii)         any
reduction in the Executive’s base salary, percentage of base salary available as incentive compensation or bonus opportunity
or benefits, in each case relative to those most favorable to the Executive in effect at any time during the 180-day period prior
to the Change in Control;


 


(iii)        the
removal of the Executive from, or any failure to reelect or reappoint the Executive to, any of the positions held with the Company
on the date of the Change in Control or any other positions with the Company to which the Executive shall thereafter be elected,
appointed or assigned, except in the event that such removal or failure to reelect or reappoint relates to the termination by the
Company of the Executive’s employment for Cause or by reason of disability pursuant to Section 8(b);


 


(iv)        a
good faith determination by the Executive that there has been a material adverse change, without the Executive’s written
consent, in the Executive’s working conditions or status with the Company relative to the most favorable working conditions
or status in effect during the 180-day period prior to the Change in Control, including but not limited to (A) a significant
change in the nature or scope of the Executive’s authority, powers, functions, duties or responsibilities, or (B) a
significant reduction in the level of support services, staff, secretarial and other assistance, office space and accoutrements,
but in each case excluding for this purpose an isolated, insubstantial and inadvertent event not occurring in bad faith that the
Company remedies within ten (10) days after receipt of notice thereof given by the Executive;


 



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(v)         the
relocation of the Executive’s principal place of employment to a location more than 50 miles from the Executive’s principal
place of employment on the date 180 days prior to the Change in Control; or


 


(vi)        the
Company requires the Executive to travel on Company business 20% in excess of the average number of days per month the Executive
was required to travel during the 180-day period prior to the Change in Control.


 


(i)          Funding
of Rabbi Trust. Upon a Change in Control, the Company (or its successor) shall transfer to an irrevocable rabbi trust (to the
extent not prohibited by Code Section 409A) an amount in cash, determined on an undiscounted basis, which will be sufficient to
fund the Company’s obligations under Section 9(c).


 


10.         Severability.
Whenever possible, each portion, provision or section of this Agreement will be interpreted in such a way as to be effective and
valid under applicable law, but if any portion, provision or section of this Agreement is held to be invalid, illegal or unenforceable
in any respect, such invalidity, illegality or unenforceability will not affect any other portions, provisions or sections. Rather,
this Agreement will be reformed, construed and enforced as if such invalid, illegal or unenforceable portion, provision or section
had never been contained herein.


 


11.         Complete
Agreement. This Agreement, including Attachment A, contains the complete agreement and understanding between the parties and
supersedes and preempts any prior understanding, agreement or representation by or between the parties, written or oral.


 


12.         Additional
Rights and Causes of Action. This Agreement, including Attachment A, is in addition to and does not in any way waive or detract
from any rights or causes of action the Company may have relating to Confidential Information or other protectable information
or interests under statutory or common law or under any other agreement.


 


13.         Governing
Law. Notwithstanding principles of conflicts of law of any jurisdiction to the contrary, all terms and provisions to this Agreement
are to be construed and governed by the laws of the State of New York without regard to the laws of any other jurisdiction in which
the Executive resides or performs any duties hereunder or where any violation of this Agreement occurs.


 


14.         Successors
and Assigns. This Agreement will inure to the benefit of and be enforceable by the Company and its successors and assigns.
The Executive may not assign the Executive’s rights or delegate the Executive’s obligations hereunder.


 


15.         Waivers.
The waiver by either the Executive or the Company of a breach by the other party of any provision of this Agreement shall not operate
or be construed as a waiver of any subsequent breach by the breaching party.


 


16.         Withholding.
The Company shall be entitled to withhold from amounts to be paid to the Executive hereunder any federal, state or local withholding
or other taxes or charges which it is from time to time required to withhold. The Company shall be entitled to rely on an opinion
of nationally recognized tax counsel if any question as to the amount or requirement of any such withholding shall arise. In addition,
if prior to the date of distribution of any amount hereunder, the Federal Insurance Contributions Act (FICA) tax imposed under
Code Sections 3101, 3121(a) and 3121(v)(2), where applicable, becomes due, a payment will be made to the Executive from the
cash payments otherwise owing hereunder (without regard to the six-month delay if Executive) equal to the amount needed to pay
the Executive’s portion of such tax, as well as withholding taxes resulting therefrom (including the additional taxes attributable
to the pyramiding of such distributions and taxes), and any subsequent payment shall be reduced accordingly.


 



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17.         Interpretation.
This Agreement shall be construed and interpreted in a manner that will cause any payment hereunder that is considered deferred
compensation and that is not exempt from Code Section 409A to meet the requirements thereof such that no additional tax will be
due under Code Section 409A on such payment.


 


18.         Application
of Code Section 409A. The Executive acknowledges that to avoid an additional tax on payments that may be payable under this
Agreement and that constitute deferred compensation that is not exempt from Code Section 409A, the Executive must make a reasonable,
good faith effort to collect any payment or benefit to which Executive believes he or she is entitled hereunder no later than ninety
(90) days of the latest date upon which the payment could under this Agreement could have been timely paid pursuant to Code Section
409A, and if not paid or provided, take further enforcement measures within 180 days after such latest date.


 


THE COMPANY AND THE EXECUTIVE
ACKNOWLEDGE THAT (A) EACH HAS CAREFULLY READ THIS AGREEMENT, (B) EACH UNDERSTANDS ITS TERMS, (C) ALL UNDERSTANDINGS AND AGREEMENTS
BETWEEN THE COMPANY AND THE EXECUTIVE RELATING TO THE SUBJECTS COVERED IN THE AGREEMENT ARE CONTAINED IN IT, AND (D) EACH HAS ENTERED
INTO THIS AGREEMENT VOLUNTARILY AND NOT IN RELIANCE ON ANY PROMISES OR REPRESENTATIONS BY THE OTHER, OTHER THAN THOSE CONTAINED
IN THIS AGREEMENT ITSELF.


 



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IN WITNESS WHEREOF,
the parties hereto have executed this Agreement.


 


	 	 	 	Hudson Highland Group, Inc.
	 	 	 	 
	/s/    NEIL J. FUNK	 	 	 By:       
    /s/    MANUEL MARQUEZ DORSCH
	Signature of Executive	 	 	Manuel Marquez
Dorsch

	 	 	 	Chairman and Chief Executive
        Officer 
	 	 	 	 
	Neil J. Funk	 	 	 
	Print Name	 	 	 





 



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Attachment A


CONFIDENTIALITY, NON-SOLICITATION


AND WORK PRODUCT ASSIGNMENT AGREEMENT,


AND MUTUAL AGREEMENT TO ARBITRATE CLAIMS


 


As a material inducement
to and in consideration of his/her employment by Hudson Highland Group, Inc. and/or its affiliates or successors (individually
and collectively, “HHG”), 1
Neil J. Funk (the “Employee”) agrees as follows:


 


1.           Confidential
Information


 


1.1           Definition.


 


“Confidential Information”
consists of all information or data relating to the business of HHG, including but not limited to, business and financial information;
new product development and technological data; personnel information and the identities of employees; the identities of clients
and suppliers and prospective clients and suppliers; client lists and potential client lists; development, expansion and business
strategies, plans and techniques; computer programs, devices, methods, techniques, processes and inventions; research and development
activities; trade secrets as defined by applicable law and other materials (whether in written, graphic, audio, visual, electronic
or other media, including computer software) developed by or on behalf of HHG which is not generally known to the public, which
HHG has and will take precautions to maintain as confidential, and which derives at least a portion of its value to HHG from its
confidentiality. Additionally, Confidential Information includes information of any third party doing business with HHG (actively
or prospectively) that HHG or such third party identifies as being confidential. Confidential Information does not include any
information that is in the public domain or otherwise publicly available (other than as a result of a wrongful act by the Employee
or an agent or other employee of HHG).


 


1.2           Agreement
to Maintain the Confidentiality of Confidential Information.


 


The Employee acknowledges
that, as a result of his/her employment by HHG, he/she will have access to such Confidential Information and to additional Confidential
Information which may be developed in the future. The Employee acknowledges that all Confidential Information is the exclusive
property of HHG, or in the case of Confidential Information of a third party, of such third party. The Employee agrees to hold
all Confidential Information in trust for the benefit of the owner of such Confidential Information. The Employee further agrees
that he/she will use Confidential Information for the sole purpose of performing his/her work for HHG, and that during his/her
employment with HHG, and at all times after the termination of that employment for any reason, the Employee will not use for his/her
benefit, or the benefit of others, or divulge or convey to any third party any Confidential Information obtained by the Employee
during his/her employment by HHG, unless it is pursuant to HHG’s prior written permission.


 


1.3           Return
of Property.


 


The Employee acknowledges
that he/she has not acquired and will not acquire any right, title or interest in any Confidential Information or any portion thereof.
The Employee agrees that upon termination of his/her employment for any reason, he/she will deliver to HHG immediately, but in
no event later that the last day of his/her employment, all documents, data, computer hardware, computer programs and all other
materials, and all copies thereof, including but not limited to copies of data in electronic form such as disks, tape or media
cards, that were obtained or made by the Employee during his/her employment with HHG, which contain or relate to Confidential Information
and will destroy all electronically stored versions of the foregoing. The Employee retains the right to retrieve and retain personal
information.


 





 






1 Any reference in this Agreement
to HHG will be a reference also to each of its officers, directors, employees and agents, all subsidiary and affiliated entities,
all benefit plans and benefit plans’ sponsors and administrators, fiduciaries, affiliates, and all successors and assigns
of any of them. 


  



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2.           Disclosure
and Assignment of Inventions and Creative Works


 


The Employee agrees to
promptly disclose in writing to HHG all inventions, ideas, discoveries, developments, improvements and innovations (collectively
“Inventions”), whether or not patentable and all copyrightable works, including but not limited to computer software
designs and programs (“Creative Works”) conceived, made or developed by the Employee, whether solely or together with
others, during the period the Employee is employed by HHG. The Employee agrees that all Inventions and all Creative Works, whether
or not conceived or made during working hours, that: (a) relate directly to the business of HHG or its actual or demonstrably anticipated
research or development, or (b) result from the Employee’s work for HHG, or (c) involve the use of any equipment, supplies,
facilities, Confidential Information, or time of HHG, are the exclusive property of HHG. The Employee hereby assigns and agrees
to assign all right, title and interest in and to all such Inventions and Creative Works to HHG. The Employee understands that
he/she is not required to assign to HHG any Invention or Creative Work for which no equipment, supplies, facilities, Confidential
Information or time of HHG was used, unless such Invention or Creative Work relates directly to HHG’s business or actual
or demonstrably anticipated research and development, or results from any work performed by the Employee for HHG.


 


3.           Future
Restrictions and Notice


 


3.1           Non-Solicitation
of Clients.


 


During the period of the
Employee’s employment with HHG and for a period of one year from the date of termination of such employment for any reason,
the Employee agrees that he/she will not, directly or indirectly, for the Employee’s benefit or on behalf of any person,
corporation, partnership or entity whatsoever, call on, solicit, perform services for, interfere with or endeavor to entice away
from HHG any client to whom HHG provides services at any time during the 12 month period proceeding the date of termination of
the Employee’s employment with HHG, or any prospective client to whom HHG had made a presentation at any time during the
12 month period preceding the date of termination of Employee’s employment with HHG.


 


3.2           Non-Solicitation
of Employees.


 


For a period of one year
after the date of termination of Employee’s employment with HHG for any reason, the Employee agrees that he/she will not,
directly or indirectly, hire, attempt to hire, solicit for employment or encourage the departure of any employee of HHG, to leave
employment with HHG, or any individual who was employed by HHG as of the last day of the Employee’s employment with HHG.


 


3.3           Notice
to New Employer


 


For a period of one year
after the date of termination of Employee’s employment with HHG for any reason, the Employee agrees that he/she will bring
the terms of this agreement to the attention of his/her new employer.


 


4.           Agreement
to Arbitrate


 


4.1           Acknowledgment.


 


HHG and the Employee (together
the “Parties”) further recognize that differences may arise between either of them after or during Employee's employment
with HHG.


 


The Parties understand
and agree that by entering into this agreement to arbitrate claims, each anticipates gaining the benefit of arbitration as a speedy,
impartial dispute-resolution procedure, and understands and agrees that both are voluntarily consenting to forego other types of
litigation, except as specifically listed below in Section 4.2. Employee acknowledges that his/her agreement to submit to arbitration
as described in this Agreement is in consideration of and is a material inducement to his/her employment by HHG.


 



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4.2           Claims
Covered by this Agreement.


 


HHG and Employee mutually
consent to the resolution by arbitration of all claims or controversies (tort, contract or statutory), whether or not arising out
of Employee’s employment (or its termination), that HHG may have against Employee or that Employee may have against HHG ("claims").
The claims covered by this Agreement include, but are not limited to, claims for wages, bonuses, overtime pay, or other compensation
due; claims for breach of any contract or covenant (express or implied); tort claims, including but not limited to, defamation,
wrongful termination, invasion of privacy and intentional infliction of emotional distress; claims for discrimination (including,
but not limited to, race, sex, religion, national origin, age, marital status, or medical condition or disability), harassment
and/or retaliation; claims for benefits or the monetary equivalent of benefits (except where an employee benefit or pension plan
specifies that its claims procedure is subject to an arbitration procedure different from this one); and claims for violation of
any federal, state, or other governmental law, statute, regulation, or ordinance, except claims excluded in the following Section
4.3.


 


4.3           Claims
Not Covered by the Agreement.


 


Claims not covered by this
Agreement include claims that Employee may have now or in the future for workers’ compensation or unemployment benefits.
Also not covered are claims by HHG based on criminal acts of Employee, and claims for injunctive or other equitable relief
for: (a) breach or threatened breach of any non-competition, non-solicitation, confidentiality and/or patent or invention assignment
agreements; (b) unfair competition; or (c) the misappropriation, use and/or unauthorized disclosure of trade secrets or confidential
information, as to each of which Employee understands and agrees that HHG may immediately seek and obtain relief from a court of
competent jurisdiction.


 


4.4           Required
Notice of All Claims and Statute of Limitations.


 


The Parties agree that
each must deliver written notice of any claim to the other party within one (1) year of the date the aggrieved party first has
knowledge of the event giving rise to the claim; otherwise the claim will be void and deemed waived, even if there is a federal
or state statute of limitations which would have given more time to pursue the claim.


 


4.5           Arbitration
Procedures.


 


HHG and Employee agree
that, except as provided in this Agreement, any arbitration shall be in accordance with the then-current employment dispute rules
of the American Arbitration Association ("AAA").


 


The arbitrator shall render
a written award and opinion in the form typically rendered in arbitrations. The award shall be final and binding.


 


4.6           Arbitration
Fees and Costs.


 


HHG will pay the reasonable
fees and costs of the arbitrator. HHG and Employee will each pay its and his/her costs and attorneys’ fees, if any. However,
if either Party prevails on a statutory claim that affords the prevailing party attorneys’ fees, the arbitrator may award
reasonable fees to the prevailing Party.


 


4.7           Requirements
for Modification or Revocation.


 


This Agreement to arbitrate
shall survive the termination of Employee’s employment. It may only be revoked or modified by a writing signed by the parties
which specifically states an intent to revoke or modify this Agreement.


 


4.8           Sole
and Entire Agreement.


 


This is the complete agreement
of the parties on the subject of arbitration of disputes except for any arbitration agreement in connection with any pension or
benefit plan. This Agreement supersedes any prior or contemporaneous oral or written understanding on the subject. Employee is
not relying on any representations, oral or written, on the subject of the effect, enforceability or meaning of this Agreement,
except as specifically set forth in this Agreement.


 



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4.9           Construction.


 


If any provision, portion
or section of this Agreement is judged to be void or otherwise unenforceable, in whole or in part, such judgment will not affect
the validity of the remainder of this Agreement.


 


4.10         Not
an Employment Agreement.


 


This Agreement is not,
and shall not be construed to create, any contract of employment or guarantee of employment for any specific time or under any
specific terms or conditions., express or implied, and each of the Parties remains free to terminate the employment relationship
at any time, for any reason or no reason, with or without notice, reason, or cause.


 


5.           Miscellaneous


 


5.1           Enforcement.


 


If, at the time of enforcement
of this Agreement, a court holds that any of the restrictions stated herein are unreasonable under circumstances then existing,
the parties hereto agree that the maximum period, scope or geographical area deemed reasonable under such circumstances will be
substituted for the stated period, scope or area as contained in this Agreement. Because money damages would be an inadequate remedy
for any breach of the Employee’s obligations under this Agreement, in the event the Employee breaches or threatens to breach
this Agreement, HHG, or any successors or assigns, may, in addition to other rights and remedies existing in its favor, apply to
any court of competent jurisdiction for specific performance, or injunctive or other equitable relief in order to enforce or prevent
any violations of this Agreement.


 


5.2           Severability.


 


Whenever possible, each
provision of this Agreement will be interpreted in such a way as to be effective and valid under applicable law, but if any provision
of this Agreement is held to be invalid, illegal or unenforceable in any respect under my applicable law or rule in any jurisdiction,
such invalidity, illegality or unenforceability will not affect any other provisions, but this Agreement and/or such provision
will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never
been contained herein.


 


5.3           Complete
Agreement.


 


This Agreement contains
the complete agreement and understanding between the parties and supersedes and preempts any prior understanding, agreement or
representation by or between the parties, written or oral, relating to the subject matter contained herein.


 


5.4           Additional
Rights and Causes of Action.


 


This Agreement is in addition
to and does not in any way waive or detract from any rights or causes of action HHG may have relating to Confidential Information
or other protectable information or interests under statutory or common law or under any other agreement.


 


5.5           Governing
Law.


 


Notwithstanding principles
of conflicts of law of any jurisdiction to the contrary, all terms and provisions to this Agreement are to be construed and governed
by the laws of the State of New York without regard to the laws of any other jurisdiction wherein the Employee resides or performs
any duties hereunder or where any violation of this Agreement occurs. Any arbitration or mediation will take place in the City
of New York, New York. The venue for any litigation permitted by this Agreement will be the state and municipal courts located
in the City of New York, New York and the United States District Court for the Southern District of New York.


 



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5.6           Successors
and Assigns.


 


The Agreement will inure
to the benefit of and be enforceable by HHG and its successors and assigns. The Employee may not assign the Employee’s rights
or delegate the Employee’s obligations hereunder.


 


5.7           Waivers.


 


The waiver by either the
Employee or HHG of a breach by the other party of any provision of this Agreement shall not operate or be construed as a waiver
of any subsequent breach by the breaching party.


 


HHG AND EMPLOYEE ACKNOWLEDGE
THAT (A) EACH HAS CAREFULLY READ THIS AGREEMENT, (B) EACH UNDERSTANDS ITS TERMS, (C) ALL UNDERSTANDINGS AND AGREEMENTS BETWEEN
HHG AND EMPLOYEE RELATING TO THE SUBJECTS COVERED IN THE AGREEMENT ARE CONTAINED IN IT, AND (D) EACH HAS ENTERED INTO THIS AGREEMENT
VOLUNTARILY AND NOT IN RELIANCE ON ANY PROMISES OR REPRESENTATIONS BY THE OTHER, OTHER THAN THOSE CONTAINED IN THIS AGREEMENT ITSELF.


 


EMPLOYEE FURTHER ACKNOWLEDGES
THAT HE/SHE HAS BEEN GIVEN SUFFICIENT TIME AND OPPORTUNITY TO CONSIDER WHETHER TO SIGN THIS AGREEMENT; AND HAS NOT BEEN FORCED
OR COERCED INTO DOING SO.


 


IN WITNESS WHEREOF,
the parties hereto have executed this Confidentiality Agreement and Mutual Agreement to Arbitrate Claims.


 


	 	 	 	HUDSON HIGHLAND GROUP, INC.
	 	 	 	 
	/s/    NEIL J. FUNK	 	 	 By:       
    /s/    MANUEL MARQUEZ DORSCH
	Signature of Employee	 	 	Manuel Marquez
Dorsch

	 	 	 	Chairman and Chief Executive
        Officer 
	 	 	 	 
	Neil J. Funk	 	 	January 26, 2012
	Print Name of Employee	 	 	Date
	 	 	 	 
	January 26, 2012	 	 	 
	Date	 	 	 


 



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