Exhibit
10.21


 


ROBERT HALF INTERNATIONAL INC.


 


RESTRICTED STOCK PLAN FOR FIELD
EMPLOYEES


 


(As Amended and
Restated Effective May 9, 2002)


 


                                     1.             DEFINITIONS.  As used in this Plan, the following terms
shall have the meanings set forth below:


 


                                                     1.1.             Administrator means the
Board or a committee of one or more directors appointed by the Board.


 


                                                     1.2.             Board means the Board of
Directors of the Company.


 


                                                     1.3.             Company means Robert Half
International Inc., a Delaware corporation.


 


                                                     1.4.             Continuous Employment means
employment with the Company or any Subsidiary as an Eligible Employee without
any termination or leave of absence, except for a leave of absence approved by
the Company or any Subsidiary which is less than six consecutive months in
duration.


 


                                                     1.5.             Disability or Disabled shall
mean (i) a physical or mental condition which, in the judgment of the
Administrator based on competent medical evidence satisfactory to the
Administrator (including, if required by the Administrator, medical evidence
obtained by an examination conducted by a physician selected by the
Administrator), renders Participant unable to engage in any substantial gainful
activity for the Company and which condition is likely to result in death or to
be of long, continued and indefinite duration, or (ii) a judicial declaration
of incompetence.


 


                                                     1.6.             Eligible Employee means an
employee of or consultant to the Company or any Subsidiary who, as determined
by the Administrator in its sole discretion, has and exercises field functions
and responsibilities.  Eligible Employee
shall not include any individual who, on the Grant Date, is subject to the
provisions of Section 16 of the Exchange Act with respect to transactions in
the Company’s securities.


 


                                                     1.7.             Exchange Act means the
Securities Exchange Act of 1934, as amended.


 


                                                     1.8.             Grant Date means the
effective date on which a Restricted Stock Grant is made to an Eligible
Employee.


 


                                                     1.9.             Issue Date means the date on
which shares of Stock subject to a Restricted Stock Grant are issued or transferred
by the Company to the account of an Eligible Employee who has received such
grant.


 

















 


 


                                                     1.10.           Participant means an Eligible
Employee to whom a Restricted Stock Grant is granted under the Plan.


 


                                                     1.11.           Plan means this Restricted
Stock Plan for Field Employees.


 


                                                     1.12.           Restricted Stock Grant means a
grant described in Section 8 of the Plan which is made by the Company and
approved by the Administrator under and pursuant to the Plan.


 


                                                     1.13.           Securities Act means the
Securities Act of 1933, as amended.


 


                                                     1.14.           Stock means the Common Stock,
$.001 par value, of the Company.


 


                                                     1.15.           Subsidiary means a
“subsidiary” corporation as defined in Section 425(f) of the Internal Revenue
Code of 1986, as amended.


 


                                                     1.16.           Vesting Date means an
anniversary of the Grant Date, or such other date as shall be established by
the Administrator.


 


                                                     1.17.           Withholding Taxes means any
applicable federal, state and local income and other employment taxes which the
Company is required to withhold in connection with the lapse of restrictions on
Stock subject to a Restricted Stock Grant.


 


                                     2.             PURPOSE.  The purpose of the Plan is to aid the
Company and its Subsidiaries in attracting, retaining and motivating field
employees with outstanding ability, competence and potential.  The Plan provides such employees with a
proprietary interest in the Company’s success and progress by granting to them
shares of Stock in accordance with the terms and conditions set forth below.


 


                                     3.             STOCK SUBJECT TO THE PLAN.  A total of 6,680,000 shares of Stock,
subject to adjustment as provided in Section 9 of the Plan, all of which shall
be treasury shares, shall be reserved for issuance under this Plan.  If, on or before termination of the Plan,
any shares of Stock shall be reacquired by the Company pursuant to the
termination provisions described in Section 11 of the Plan, the provisions
described in Section 8.10 or in the instruments evidencing the making of
Restricted Stock Grants, such shares may again be granted under the Plan.


 


                                     4.             ADMINISTRATION.  The Plan shall be administered by the
Administrator.  Subject to all the
applicable provisions of the Plan, the Administrator is authorized to make
Restricted Stock Grants in accordance with the Plan, to construe and interpret
the Plan, to prescribe, amend, and rescind rules and regulations relating to
the 


 


 


 

















 


Plan, and to make
all determinations and to take all actions necessary or advisable for the
Plan’s administration.  Whenever the
Plan authorizes or requires the Administrator to take any action, make any
determination or decision, or form any opinion, then any such action,
determination, decision or opinion by or of the Administrator shall be in the
absolute discretion of the Administrator and shall be final and binding upon
all persons in interest, including the Company, its stockholders, and all
Participants.  To the extent permitted
by applicable law, the Administrator may delegate its authority to one or more
individuals or subcommittees.


 


                                     5.             PARTICIPANTS.  From time to time the Administrator shall,
in its sole discretion, but subject to all of the provisions of the Plan,
determine which Eligible Employees will be granted Restricted Stock Grants
under the Plan, the number of shares of Stock to be granted to each such
Eligible Employee and the terms, conditions and restrictions of each such
Restricted Stock Grant.  In making such
determinations, the Administrator shall take into account the nature of
services rendered and to be rendered by the respective recipients, their
present and potential contribution to the Company’s success and such other
factors as the Administrator in its discretion deems relevant to the
accomplishment of the purposes of the Plan. 
In any year, the Administrator may approve Restricted Stock Grants to
Eligible Employees subject to differing terms and conditions.


 


                                     6.             RIGHTS WITH RESPECT TO SHARES OF
STOCK.  The Administrator or its
designee shall notify each Eligible Employee to whom a Restricted Stock Grant
has been granted of such grant.  Upon
written acceptance by the Eligible Employee of restrictions and other terms and
conditions described in the Plan and in the instrument evidencing such
Restricted Stock Grant, the Eligible Employee shall be a Participant, and the
Company shall cause to be issued or transferred to the name of the Participant
a certificate or certificates for the number of shares of Stock granted,
subject to the provisions of Section 8.5 hereof.  From and after the Issue Date, the Participant shall have
absolute ownership of such shares of Stock, including the right to vote and to
receive dividends thereon, subject to the terms, conditions and restrictions
described in the Plan and in the instrument evidencing the grant of such
Restricted Stock Grant.


 


                                     7.             EMPLOYMENT.  No grant of a Restricted Stock Grant to a
Participant under the Plan shall affect any right of the Company or any
Subsidiary to terminate, with or without cause, the Participant’s employment at
any time.


 


                                     8.             TERMS AND CONDITIONS OF
RESTRICTED STOCK GRANT.  Each
Restricted Stock Grant made under the Plan shall contain the following terms,
conditions and restrictions and such additional terms, conditions and
restrictions as may be determined by the Administrator at the time of grant.


 


                                                     8.1.             Termination of Continuous
Employment.  If the Participant’s
Continuous Employment with the Company or any Subsidiary shall terminate for
any reason, except as provided in Section 8.3, all the rights of the
Participant to such shares of Stock as to which restrictions have not lapsed
pursuant to 


 

















 


this Section or
under Sections 8.2 or 8.3 hereof shall immediately terminate; except as
provided otherwise by the Administrator.


 


                                                     8.2.             Lapse of Restrictions.  The restrictions imposed on any Restricted
Stock Grant shall lapse as to twenty-five percent (25%) of the Stock granted
pursuant to such grant on each of first through fourth Vesting Dates which
occur following the related Grant Date of such Restricted Stock Grant.  Notwithstanding the foregoing, the
Administrator may accelerate the lapsing of restrictions on a Restricted Stock
Grant, in whole or in part, or provide for an alternative vesting schedule
(i) as permitted by Section 8.1; (ii) as required by any employment or
other agreement with the Company or any Subsidiary to which a Participant
hereunder is a party; or (iii) under such terms and conditions as the
Administrator deems appropriate.


 


                                                     8.3.             Termination of Continuous
Employment by Reason of Death or Disability.  Except as provided otherwise by the Administrator, if a
Participant (i) has been in the Continuous Employment of the Company or a
Subsidiary since the Grant Date of a Restricted Stock Grant and (ii) the
employment of such Participant is terminated as a result of death or
Disability, then, on the date of such termination, the restrictions imposed on
any Restricted Stock Grant shall lapse as to all shares of Stock granted to
such Participant pursuant to such Restricted Stock Grant, notwithstanding any
provisions of Section 8.1 to the contrary.


 


                                                     8.4.             Agreement by Participant
Regarding Withholding Taxes.  Each
Participant granted a Restricted Stock Grant shall represent in writing that
such Participant acknowledges that, with respect to each Restricted Stock Grant
held by such Participant, (i) on each Vesting Date, Withholding Taxes
become due with respect to shares of Stock as to which restrictions lapse,
(ii) payment of Withholding Taxes to the Company is the responsibility of
Participant and (iii) payment of such Withholding Taxes may require a
significant cash outlay by Participant. 
In addition, each Participant granted a Restricted Stock Grant shall be
subject to the following rules:


 


                                                                        8.4.1.  Payment of Taxes.  Within five (5) business days following any
lapsing of restrictions pursuant to the operation of Sections 8.1, 8.2 or 8.3
hereof, the Company shall notify each affected Participant or, if applicable
under Section 8.3, his or her estate, as to the amount of Withholding Taxes
required to be withheld by the Company as a result of the lapse of
restrictions.  Within five (5) business
days of receipt of such notice, Participant shall make full payment of
Withholding Taxes to the Company.  Such
payment may be made in cash or by check or by reduction in the number of shares
deliverable to Participant. Notwithstanding the foregoing, in the event a
Restricted Stock Grant vests by reason of the death of Participant, Withholding
Taxes shall be paid by reduction in the number of shares deliverable to
Participant unless Participant’s estate elects otherwise no later than the day
after vesting.  If Withholding Taxes are
paid by reduction of the number of shares deliverable to Participant, such
shares shall be valued as of either the date the restrictions lapsed or as of
the tenth business day following the lapsing of restrictions, as may be determined
by the Administrator at the time of grant. 
In the event that such payment is not made within the 


 

















 


specified time
period, to the extent permitted by law the Company shall have the right to
cause such Participant’s Withholding Taxes obligation to be satisfied by
reducing the number of shares of Stock deliverable or by offsetting such
Withholding Taxes against amounts otherwise due from the Company to such
Participant.  The Company may instruct
its transfer agent to withhold delivery of certificates evidencing such shares
of Stock until Participant’s Withholding Taxes obligation has been satisfied in
full.


 


                                                                        8.4.2.  Election to Recognize Gross Income in the
Year of Grant.  If any Participant
properly elects within thirty (30) days of the Grant Date, to include in gross
income for federal income tax purposes an amount equal to the fair market value
of the shares of Stock on the Grant Date, such Participant shall pay to the
Company in the calendar month of such Grant Date, or make arrangements satisfactory
to the Administrator to pay to the Company, any Withholding Taxes required to
be withheld with respect to such shares.


 


                                                     8.5.             Restrictive Legends; Transfer
Restrictions; Custody.  Each
certificate evidencing shares of Stock granted pursuant to a Restricted Stock
Grant may bear an appropriate legend referring to the terms, conditions and
restrictions described in the Plan and in the instrument evidencing the
Restricted Stock Grant and any other legend deemed advisable by the Company for
purposes of compliance with federal or state securities laws.  In addition, if required under this Plan or
applicable securities laws, the Company may instruct its transfer agent that
shares of Stock evidenced by such certificates may not be transferred without
the written consent of the Company.  Any
attempt to dispose of such shares of Stock in contravention of such terms,
conditions and restrictions shall be invalid. 
Until the restrictions thereon have lapsed, the related Withholding
Taxes obligations have been satisfied and the six month period described in
Section 8.10 has expired, such certificates will be held in custody by the
Company or such bank or other institution designated by the Administrator.


 


                                                     8.6.             No Assignment.  Except as specifically provided by law (including
the laws of descent and distribution), no right or benefit under, or interest
in, the Plan shall be subject to assignment, and no such right, benefit or
interest shall be subject to attachment or legal process for or against
Participant or his or her beneficiaries, as the case may be.


 


                                                     8.7.             Compliance with Securities Laws.  Stock shall not be issued pursuant to a
Restricted Stock Grant unless the issuance and delivery of Stock pursuant
thereto shall comply with all relevant provisions of law, including, without
limitation, the Securities Act, the Exchange Act, applicable state securities
laws, and rules and regulations promulgated under each of the foregoing, and
the requirements of any stock exchange upon which the Stock may then be listed
or quotation system upon which the Stock may be quoted, and shall be further
subject to the approval of counsel for the Company with respect to such
compliance.


 


                                                     8.8.             Registration and Resale.  If the Stock subject to this Plan is not
registered under the Securities Act and under applicable state securities laws,



 

















 


the Administrator
may require that the Participant deliver to the Company such documents as
counsel for the Company may determine are necessary or advisable in order to
substantiate compliance with applicable securities laws and the rules and
regulations promulgated thereunder.


 


                                                     8.9.             Holding Period.  Except as provided in Section 8.3 hereof, a
Restricted Stock Grant made under this Plan shall provide that the Participant
shall not dispose of Stock subject to such Restricted Stock Grant for at least
six months after the Grant Date or for any longer period required pursuant to
Sections 8.7 or 8.8.


 


                                                     8.10.           Automatic Forfeiture.  Notwithstanding anything else herein to the
contrary, a Restricted Stock Grant shall be automatically forfeited, title to
such shares shall be reconveyed to the Company without consideration, and such
shares shall resume the status of shares authorized for grant under this Plan,
if, within six months after the Grant Date, the recipient of such Restricted
Stock Grant becomes subject to Section 16 of the Exchange Act with respect to
transactions in the Company’s securities.


 


                                                     8.11.           Cash in Lieu of Stock.   In its discretion, the Administrator may
offer to any Participant the choice of surrendering all or a portion of a
Restricted Stock Grant on or prior to its Vesting Dates and instead receiving
such cash payments as the Administrator may determine.  The choice of Participants, Restricted Stock
Grants and the amount and timing of cash payments, including any vesting
provisions related thereto, shall be at the discretion of the Administrator,
which may elect to make different offers on different terms with respect to
different Restricted Stock Grants and different Participants.  No participant shall have any right to
receive such an offer.  No such offer,
or acceptance thereof by any Participant, shall affect any right of the Company
or any Subsidiary to terminate, with or without cause, the Participant’s
employment at any time.


 


                                     9.             ADJUSTMENTS UPON CHANGES IN
CAPITALIZATION.  If the Stock is
changed by reason of a stock split, reverse stock split, stock dividend, or
recapitalization, or is converted into or exchanged for other securities,
appropriate adjustments shall be made in the number and class of shares of
Stock subject to this Plan and each Restricted Stock Grant made pursuant to
this Plan; provided, however, that if fractional shares become due to any
Participant as a result of any such adjustment, the Company may, at its option,
pay cash in lieu thereof.  Each such
adjustment shall be determined by the Administrator in its sole discretion,
which determination shall be final and binding on all persons.  Any new or additional Stock to which a
Participant may be entitled under this Section 9 shall be subject to all the
terms and conditions set forth in Section 8 of this Plan.


 


                                     10.           DURATION OF PLAN. The Plan
shall remain in effect until terminated by the Board or the Administrator.  Termination of the Plan shall not affect any
Restricted Stock Grants previously granted pursuant thereto, which shall remain
in effect until their restrictions shall have lapsed, all in accordance with
their terms.


 

















 


                                     11.           AMENDMENT, SUSPENSION OR
TERMINATION OF THE PLAN.  The
Administrator may at any time amend, alter, suspend, or discontinue this Plan;
provided, however, no amendment, alteration, suspension or discontinuation
shall be made that would impair the rights of any Participant under a
Restricted Stock Grant without such Participant’s consent.  Subject to the foregoing, the Administrator
shall have the power to make such changes in the regulations and administrative
provisions hereunder, or in any Restricted Stock Grant, as in the opinion of
the Administrator may be appropriate from time to time.


 


                                     12.           INDEMNIFICATION OF ADMINISTRATOR.  Members of the group constituting the
Administrator, and any person acting pursuant to a delegation of authority
therefrom, shall be indemnified for actions with respect to the Plan to the
fullest extent permitted by the Certificate of Incorporation, as amended, and
the By-laws of the Company and by the terms of any indemnification agreement
that has been or shall be entered into from time to time between the Company
and any such person.


 


                                     13.           HEADINGS.  The headings used in this Plan are for
convenience only, and shall not be used to construe the terms and conditions of
the Plan.


 


                                     14.           FOREIGN EMPLOYEES.  Without amending the Plan, the Administrator
may make Restricted Stock Grants to eligible employees who are foreign
nationals on such terms and conditions different from those specified in this
Plan as may in the judgment of the Administrator be necessary or desirable to
foster and promote achievement of the purposes of the Plan, and, in furtherance
of such purposes the Administrator may make such modifications, amendments,
procedures, subplans and the like as may be necessary or advisable to comply
with provisions of laws in other countries in which the Company operates or has
employees.