Document:

Exhibit 10.1

 

CONFIDENTIAL

 

SEPARATION
AGREEMENT

 

This
Separation Agreement (“Agreement”),
dated as of January 14, 2008, (the “Execution Date”), is made by and among
On Assignment, Inc.  (the “Company”) and Shawn Mohr (“Mohr”).

 

WHEREAS,
the Company and Mohr are parties to that certain Senior Executive Agreement,
dated April 14, 2004, which sets forth the terms of Mohr’s employment with
the Company (the “Employment Agreement”);

 

WHEREAS,
the Company has granted to Mohr certain restricted stock units (“RSUs”) under RSU agreements dated August 3, 2005, May 22,
2006 and August 1, 2006 (together, the “RSU
Agreements”) pursuant to the Company’s Restated 1987 Stock Option
Plan (as Amended and Restated through April 17, 2007) (the “Plan”);

 

WHEREAS
the Company has granted to Mohr certain options to purchase Company common
stock (“Options”) under stock option agreements
dated April 7, 1997, January 13, 2004, April 14, 2004 and under
two additional stock option agreements, each dated August 9, 2004
(together, the “Option Agreements”) pursuant to
the Plan, as described in further detail on Exhibit C hereto;

 

WHEREAS,
the Company and Mohr wish to convert certain of the Options into cash-settled
stock appreciation rights;

 

WHEREAS,
the Company maintains a 2007 Executive Incentive Plan applicable to Mohr (as
described in Exhibit A to the Company’s Compensation Committee Meeting
Minutes, dated March 23, 2007) (the “Bonus Plan”);

 

WHEREAS,
Mohr and the Company have mutually determined to provide for the termination of
Mohr’s employment with the Company, on the terms and conditions set forth
herein;

 

NOW,
THEREFORE, in consideration of the mutual promises made herein and for other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the Company and Mohr (collectively, the “Parties”) hereby agree as follows:

 

1              Termination
of Employment and Agreements.

 

(a)           Termination and Resignation of
Positions.   Effective as of  5:00 p.m. (pst) on December 31,
2007 (the “Termination Date”), Mohr’s employment
with the Company and its subsidiaries and affiliates shall terminate and Mohr
shall cease to be an employee of any and all of the foregoing.  In addition, effective as of the Termination
Date, (i) Mohr hereby resigns any and all offices and directorships he may
hold with the Company or any of its subsidiaries or affiliates, (ii) the
Employment Agreement is terminated and of no further force or effect, provided, that Sections 2 - 7 of the Employment Agreement
shall survive the preceding terminations, and (iii) the Bonus Plan is
terminated and of no further force or effect.

 

 

(b)           Termination of RSUs.  Mohr hereby acknowledges and agrees that, as
of the Termination Date, (i) Mohr has been granted a total of 75,061 RSUs
under the RSU Agreements; (ii) a total of 35,349 of such RSUs have vested
and the shares underlying such vested RSUs have either been delivered to Mohr
or withheld to satisfy taxes or other obligations owed by Mohr; (iii) the
remaining 39,712 unvested RSUs so granted are hereby forfeited and terminated; (iv) the
Company has no further obligation under or in connection with any of the RSUs
or RSU Agreements; and (v) the RSU Agreements are terminated and of no
further force or effect.

 

(c)           Termination of Options;
Conversion to Stock Appreciation Rights.  Mohr hereby acknowledges and agrees that (i) as
of the Termination Date, Mohr has been granted a total of 318,000 Options under
the Option Agreements, of which (A) 8,000 Options have been previously
canceled, (B) 271,316 Options have vested and become exercisable, (C) 38,684
Options remain unvested and unexercisable, (D) 74,120 Options have been
exercised, and (E) 197,196 Options would, absent this Section 1(c),
remain vested and exercisable immediately following the Termination Date (the
Options described in this Section 2(c)(i)(E), as detailed on Exhibit C
hereto, the “Currently Exercisable Options”); (ii) Mohr
has not and will not exercise any previously unexercised Options at any time on
or after the Termination Date, including without limitation, any of the
Currently  Exercisable Options; (iii) on or
as soon as practicable after the Execution Date, the Currently  Exercisable Options will be converted into an equivalent
number of fully vested and exercisable, cash-settled stock appreciation rights
(“SARs”) at the same exercise price and
otherwise on substantially the same terms and conditions as those applicable to
the Currently  Exercisable Options so converted
into SARs, as provided in the SAR Agreements in the form attached hereto as Exhibit B
(the “SAR Agreements”); (iv) Mohr will
cooperate with the Company and take all actions necessary or desirable to
convert the Currently Exercisable Options into SARs, including without
limitation, entering into SAR Agreements with the Company; and (v) the Options
and the Option Agreements are hereby terminated and of no further force or
effect.  Mohr further acknowledges and
agrees that, upon conversion of the Currently Exercisable Options into SARs,
the Company shall have no further obligations, and Mohr shall have no further
rights, under or in connection with any of the Options or Option Agreements.

 

2              Accrued
Obligations; Severance Payments; Exclusivity; Return of Property.

 

(a)           Accrued
Obligations.  On or as soon as practicable after the
Termination Date, the Company shall (i) pay to Mohr all unpaid salary and
vacation accrued but not paid through the Termination Date, and (ii) reimburse
to Mohr all outstanding reimbursable expenses incurred by Mohr and submitted to
the Company prior to the Termination Date in accordance with the Company’s
policies and practices, to the extent not reimbursed prior to the Termination
Date.

 

(b)           Severance. 
In consideration of Mohr’s execution and non-revocation of the Release
(as defined below) and in further consideration of Mohr’s agreement to comply
with the Additional Covenants (as defined below), subject to Section 6
below, the Company shall pay to Mohr (the “Severance Payments”):

 

(i)            Mohr’s base salary at the rate in effect as of the
Termination Date ($288,750 per year) for a period of one year from and after
the Termination Date, in satisfaction of the salary continuation obligations
contained in Section 1(c)(iii)(A) of the Employment Agreement,
payable in substantially equal installments on the Company’s generally applicable
2008 payroll dates;

 

 

(ii)           a lump-sum payment of $57,750, payable no later than March 31,
2008 in lieu of any bonus that may have become payable under the Bonus Plan
absent Mohr’s termination of employment;

 

(iii)          a lump-sum payment of $15,348.93 in lieu of the
continuation healthcare insurance benefits described in Section 1(c)(iii)(A) of
the Employment Agreement, payable no later than March 31, 2008; and

 

(iv)          $231,000 payable in substantially equal installments
on the Company’s generally applicable 2009 payroll dates, in any event, payable
in full during calendar year 2009 only.

 

Notwithstanding the foregoing, the
Company shall make no Severance Payments to Mohr prior to the expiration of any
revocation period applicable under the Release and, to the extent that any
Severance Payment would otherwise have been paid prior to such expiration, such
Severance Payment shall be paid as soon as practicable following the expiration
of such revocation period, but in no event more than fifteen (15) days after
such expiration (provided that Mohr has not revoked the Release).  The Company’s obligation to continue to
provide Mohr with Severance Payments described in Sections 2(b)(i) and
2(b)(iv) above shall cease if Mohr furnishes services to a third party as a
senior executive.  Mohr shall be under no
obligation to seek or accept any employment during the Severance Period.  Mohr has not, as of the Execution Date,
entered into any arrangement to furnish such services and agrees to provide
Company with timely notice of his acceptance of any engagement to furnish
services to a third party as a senior executive.

 

(c)           Exclusivity of Benefits. 
Except as expressly provided in Section 2 of this Agreement, Mohr
shall not be entitled to any additional payments or benefits in connection with
his employment or the termination thereof or under or in connection with any
contract, agreement or understanding between Mohr and the Company.  All employee benefits, including without
limitation, any medical, dental, life insurance, disability
insurance and other benefits provided or funded in whole or in part by the
Company shall cease as of the Termination Date.

 

(d)           Return of Property. 
By signing this Agreement, Mohr represents that he has returned to the
Company all property of the Company, including without limitation, original
versions and/or copies of documents, spreadsheets, presentations or other
materials, in any media or format, representing Company Proprietary Information
and/or Records, as those terms are defined in the Employment Agreement, all
keys, access cards, credit cards, calling cards, computer hardware and
software, cellular phones and other mobile communications devices.  Mohr represents that the inventory attached
hereto as Exhibit E (the “Office Inventory”)
sets forth the complete and comprehensive list of all files, documents, books,
equipment, other tangible items or materials, in any and all media retained by
Mohr from his Company office and further warrants that such Office Inventory is
comprised solely of Mohr’s personal items Mohr has not removed any Company
Proprietary Information and/or Records.  
The Company agrees to furnish Mohr, for his own use, a Blackberry
communication device.   Mohr understands
and acknowledges that Company maintains no service contracts associated with
the Blackberry.  It will be Mohr’s sole
responsibility, at Mohr’s sole cost and expense, to arrange for any service
contracts he deems necessary for continued use of the Blackberry.

 

 

3              Release
of Claims.  Mohr agrees that, as a condition
to Mohr’s right to receive the Severance Payments, within the timeframe
specified in the release of claims attached hereto as Exhibit A (the “Release”), but in any event not prior to the Termination
Date, Mohr shall execute, deliver to the Company and not revoke the Release.

 

4              Covenants.

 

(a)           Existing Covenants. 
Mohr hereby acknowledges and agrees that he is bound by certain
restrictive covenants set forth in the Sections 2 and 3 of the Employment
Agreement (the “Existing Covenants”) and that nothing
contained herein shall alter Mohr’s obligations under the Existing Covenants,
which obligations shall survive Mohr’s termination of employment.

 

(b)           Additional
Covenants.  In addition
to the Existing Covenants, in consideration of the Severance Payments contained
herein, Mohr further agrees that Mohr will not use trade
secrets or other Proprietary Information or Records (as defined in the
Employment Agreement) to: (i) directly or indirectly, through another
person or entity, divert, take away, attempt to divert or take away, call on or
solicit any business from any of the suppliers, licensees, clients, customers
or prospective customers of the Company or its subsidiaries or affiliates;
and/or (ii) ****directly or indirectly, through another person or entity,
induce or attempt to induce any employee of the Company or any of its
subsidiaries or affiliates, including without limitation, the employees named
on Exhibit D to this Agreement, to leave the employ of the Company,
or in any way unlawfully interfere with the employment relationship between the
Company or any of its subsidiaries or affiliates and any employee
thereof.  For the purposes of this provision, “prospective customer” means
any person or entity whom the Company or any of its subsidiaries or affiliates
has actually engaged in discussions with to become a client or customer at any
time during the two (2)-year period preceding the Termination Date (the “Additional Covenants” and, together with the Existing
Covenants, the “Covenants”) ****.

 

5              Non-Disparagement.  Mohr
agrees that he will not make any statement, publicly or privately, to
any individual or entity, including, without limitation, clients, customers,
employees, financial or credit institutions or news agencies, in any case,
which could reasonably be expected to disparage, defame, libel or slander the
Company, any of its affiliates or any of their respective employees, officers
or directors.   Company agrees that it will not make or
issue any statement to any individual or entity, including, without limitation,
clients, customers, employees, prospective employers or news agencies, in any
case, which could reasonably be expected to disparage, defame, libel or slander
Mohr.  In accordance with Company policy,
if requested by a potential new employer or other party validating Mohr’s past
employment, Company will confirm Mohr’s dates of employment and title at the
time of Mohr’s termination.

 

6              Breach
of Covenants.  Mohr acknowledges and agrees that a breach by
Mohr of any of the covenants or restrictions contained, reaffirmed or
referenced herein, including without limitation the Covenants, will cause
irreparable damage to the Company, the exact amount of which will be difficult
to ascertain, and that the remedies at law for any such breach will be
inadequate.  Accordingly, Mohr agrees
that if he breaches or attempts to breach any of the foregoing, the Company
shall be entitled to temporary or permanent injunctive relief with respect to
any such breach or attempted breach (in addition to any other remedies, at law
or in equity, as may be available to the Company), without posting bond or
other security.  If the Company is
required to enforce any of its rights hereunder, Mohr agrees to reimburse the
Company for all reasonable costs and expenses, including reasonable attorneys’

 

 

fees, incurred by the Company in connection with such enforcement.  In addition, if the Company reasonably
determines that Mohr has breached any such restriction or covenant (including
without limitation, the Covenants), Mohr hereby agrees and acknowledges that he
shall forfeit any and all rights to any then-unpaid Severance Payments and, to
the greatest extent permitted under applicable law, Mohr agrees to immediately
repay to the Company all Severance Payments previously paid to Mohr.  Notwithstanding the foregoing, Company’s
obligation to Mohr for Severance Payments pursuant to Section 2(b)(i) above
shall cease only if Mohr is found by a court of law to be in material violation
of the provisions of Section 2 or 3 of the Employment Agreement.

 

7              Intentionally
omitted.

 

8              Notices.

 

Any notice to be given
hereunder shall be deemed sufficient if addressed in writing and delivered  by certified or registered mail to the
addresses listed below:

 

If to
the Company:

 

On
Assignment, Inc.

26651
West Agoura Road

Calabasas,
CA 91302

Attn:  General Counsel

 

If to
Mohr, to the most recent address on file with the Company’s Human Resources
Department; or to such other address as either Party shall have furnished to
the other in writing in accordance herewith. 
Notice and communications shall be effective when actually received by
the addressee.

 

9              Severability.  If any term, provision, covenant or condition
of this Agreement is held by a court of competent jurisdiction to exceed the
limitations permitted by applicable law, as determined by such court in such
action, then the provisions will be deemed reformed to apply to the maximum
limitations permitted by applicable law and the Parties hereby expressly
acknowledge their desire that in such event such action be taken.  Notwithstanding
the foregoing, the Parties further agree that if any term, provision, covenant
or condition of this Agreement is held by a court of competent jurisdiction to
be invalid, void or unenforceable, the remainder of the provisions shall remain
in full force and effect and in no way shall be affected, impaired or
invalidated.

 

10            Entire
Agreement; Amendment.  This
Agreement, together with the Release and The SAR Agreements, the surviving
provisions of the Employment Agreement (as provided above), and the
Indemnification Agreement between Mohr and Company dated January 25, 2007,
represent the entire agreement and understanding among the Parties concerning
Mohr’s separation from the Company and, except as expressly set forth herein,
supersedes and replaces any and all prior agreements and understandings
concerning Mohr’s relationship with the Company and his compensation from the
Company (including, without limitation, the Employment Agreement, the RSU
Agreements, the Option Agreements, the Bonus Plan, the Letter Agreement between
the Company and Mohr, dated September 15, 2005 and the Change in Control
Severance Plan).  This Agreement may only
be amended by a writing signed by both Mohr and a duly authorized officer of the
Company.

 

 

11            Governing
Law.  This Agreement shall be
governed by the laws of the State of California without regard to its conflict
of laws rules.

 

12            Cooperation
With the Company.  Within the
confines of the law and to the extent such action does not unreasonably
interfere with Mohr’s obligations to any future employer or expose Mohr to any
potential liability for which he is not indemnified by Company pursuant to the
Indemnification Agreement dated January 25, 2007, Mohr shall reasonably
cooperate with the Company in its defense of, or other participation in, any
administrative, judicial or other proceeding arising from any charge, complaint
or other action which has been or may be filed and which relates to Mohr’s
employment with or duties and responsibilities to the Company and, at Company’s
request, sign any documents for which his signature may be reasonably required
in connection with his employment with the Company.

 

13            Section 409A
of the Code.  The Severance Payments
described in Sections 2(b)(i), (ii) and (iii) of this Agreement are
intended to be exempt from the application of Section 409A of the Internal
Revenue Code of 1986, as amended (“Section 409A”),
by virtue of their compliance with the “involuntary separation pay” exemption
provided under Treas. Reg. Section 1.409A-1(b)(9)(iii).  The Severance Payments described in Section 2(b)(iv) of
this Agreement are intended to comply with the permissible “time or fixed
schedule” payment timing described in Treas. Reg. Section 1.409A-3(a)(4).  The conversion of Currently Exercisable
Options into SARs described in Section 1(c) of this Agreement is
intended not to constitute a “modification” or “extension” of a stock right
(within the meaning of Section 409A). 
Accordingly, all amounts payable under or in connection with this
Agreement are intended either to be exempt from or compliant with Section 409A.  If, however, at any time the Company
determines that any payment under this Agreement or any SAR Agreement may be or
become subject to the application of taxes under Section 409A, the Company
shall have the right, in its sole discretion, to adopt such amendments to this
Agreement and/or the SAR Agreements or take such other actions (including
amendments and actions with retroactive effect) as the Company determines are
necessary or appropriate to (a) exempt the payments provided hereunder
and/or under the SAR Agreements from Section 409A and/or preserve the
intended tax treatment of such payments, or (b) comply with the
requirements of Section 409A and related Department of Treasury guidance.

 

14            Withholding.  The Company shall withhold from any amounts
payable under this Agreement such federal, state, local or foreign taxes as
shall be required to be withheld pursuant to any applicable law or regulation.

 

15            Acknowledgement.  Mohr
acknowledges that the Severance Payments are consideration for Mohr’s promises
and covenants contained and affirmed in this Agreement, and that such
consideration is above and beyond any compensation to which he is entitled from
the Company in connection with his employment or the termination thereof, or
under any contract or law.

 

16            Confidentiality.
Mohr  will not, directly or indirectly,
provide to any person or entity any information that concerns or relates to the
negotiation of or circumstances leading to the execution of this Agreement or
to the terms and conditions hereof, provided that Mohr may make disclosure of
the foregoing: (a) to the extent that such disclosure is specifically
required by law or legal process or as authorized in writing by the Company; (b) to
his tax advisor(s) or accountant(s) as may be necessary for the
preparation of tax returns or other reports required by law; (c) to his
attorney(s); and/or (d) to members of his immediate family, provided, that
prior to disclosing any such information (except

 

 

disclosures required by law or legal process or as authorized in
writing), Mohr will inform the recipients that they are bound by the
limitations of this Section 16. 
Additionally, Mohr will make any new employer or prospective employer
(or other business entity to which Mohr seeks to furnish professional services)
aware of the promises and covenants contained and affirmed herein, and provide
a copy of the Agreement to any new employer or other business entity.

 

17            No
Admissions. By entering into this Agreement, no Party hereto is admitting
any liability or wrongdoing whatsoever, nor does this Agreement constitute an
admission of any fact, claim or allegation. 
This Agreement in no way implies the truth of any claim or
allegation.  Furthermore, this Agreement
shall not be construed as an admission that any Party violated any order, law,
statute, duty, contract, legal duty or obligation.

 

18            Voluntary
Execution of Agreement.  Mohr
acknowledges and agrees that he is executing this Agreement and the Release
voluntarily and without any duress or undue influence on the part or behalf of
the Company, with the full intent of releasing all Claims (as defined in the
Release).  Mohr further acknowledges and
agrees that:

 

(a)           He has read this Agreement and the Release and has
been provided the opportunity to consider this Agreement for a period of not
less than twenty-one days;

 

(b)           He has been represented in the preparation,
negotiation and execution of this Agreement and the Release by legal counsel of
his own choice or he has voluntarily declined to seek such counsel;

 

(c)           He understands the terms and consequences of this
Agreement and the Release, and has not relied on any representations or
statements made by anyone which are not specifically set forth in this
Agreement; and

 

(d)           He is fully aware of the legal and binding effect of
this Agreement and the Release.

 

[Signature Page Follows]

 

 

IN
WITNESS WHEREOF, the Parties have caused this Agreement to be
executed as of the date first written above.

 

 

	
  COMPANY:

  	
  On
  Assignment, Inc.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
  Angela Kolarek

  
	
   

  	
  Title:

  	
  Vice President of Human
  Resources

  
	
   

  	
   

  
	
   

  	
   

  
	
  MOHR:

  	
   

  
	
   

  	
  Shawn Mohr

  
				

 

 

EXHIBIT
A

 

GENERAL RELEASE

 

For
valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the undersigned does hereby release and forever discharge the “Releasees” hereunder, consisting of On
Assignment, Inc., a Delaware corporation  (the
“Company”), and each of its
partners, associates, affiliates, subsidiaries, successors, heirs, assigns,
agents, directors, officers, employees, shareholders, representatives, lawyers,
insurers, and all persons acting by, through, under or in concert with them, or
any of them, of and from any and all manner of action or actions, cause or
causes of action, in law or in equity, suits, debts, liens, contracts,
agreements, promises, liability, claims, demands, damages, losses, costs,
attorneys’ fees or expenses, of any nature whatsoever, known or unknown, fixed
or contingent (hereinafter called “Claims”),
which the undersigned now has or may hereafter have against the Releasees, or
any of them, by reason of any matter, cause, or thing whatsoever from the
beginning of time to the date hereof.

 

The
Claims released herein include, without limiting the generality of the
foregoing, any Claims in any way arising out of, based upon, or related to the
undersigned’s employment by the Releasees, or any of them, or the termination
thereof; any claim for wages,
salary, commissions, bonuses, incentive payments, profit-sharing payments,
expense reimbursements, leave, vacation, severance pay or other benefits; any
claim for benefits under any stock option, restricted stock or other
equity-based incentive plan of the Releasees, or any of them (or any related
agreement to which any Releasee is a party); any alleged breach of any express
or implied contract of employment; any alleged torts or other alleged legal
restrictions on Releasee’s right to terminate the employment of the
undersigned; and any alleged violation of any federal, state or local statute
or ordinance including, without limitation, Title VII of the Civil Rights Act
of 1964, the Age Discrimination in Employment Act, the Equal Pay Act, the Family Medical Leave Act, the Americans
With Disabilities Act, the Employee
Retirement Income Security Act, the
National Labor Relations Act, the
California Labor Code, the
California Family Rights Act and the California Fair Employment and
Housing Act, each as amended.  Notwithstanding
the foregoing, this Release shall not operate to release any Claims which the
undersigned may have to payments or benefits under Section 2 of that
certain Separation Agreement, dated as of January 14, 2008, between the
Company and the undersigned (the “Separation Agreement”)
nor to release the Company from its obligation arising under the
Indemnification Agreement between the undersigned and Company dated January 25,
2007.

 

THE
UNDERSIGNED ACKNOWLEDGES THAT HE HAS BEEN ADVISED BY LEGAL COUNSEL AND IS
FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH
PROVIDES AS FOLLOWS:

 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT
KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE,
WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
DEBTOR.”

 

 

THE UNDERSIGNED, BEING AWARE OF SAID CODE SECTION,
HEREBY EXPRESSLY WAIVES ANY RIGHTS HE MAY HAVE THEREUNDER, AS WELL AS
UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT.

 

IN
ACCORDANCE WITH THE OLDER WORKERS BENEFIT PROTECTION ACT OF 1990, THE
UNDERSIGNED IS HEREBY ADVISED AS FOLLOWS:

 

(1)                           HE HAS THE RIGHT TO
CONSULT WITH AN ATTORNEY BEFORE SIGNING THE SEPARATION AGREEMENT AND THIS
RELEASE;

 

(2)                           HE HAS TWENTY-ONE
(21) DAYS FROM THE EXECUTION OF THE SEPARATION AGREEMENT TO CONSIDER THIS
RELEASE BEFORE SIGNING IT; AND

 

(3)                           HE HAS SEVEN (7) DAYS
AFTER SIGNING THIS RELEASE TO REVOKE IT, AND THIS RELEASE WILL BECOME EFFECTIVE
UPON THE EXPIRATION OF THAT REVOCATION PERIOD.

 

The
undersigned represents and warrants that there has been no assignment or other
transfer of any interest in any Claim which he may have against Releasees, or
any of them, and the undersigned agrees to indemnify and hold Releasees, and
each of them, harmless from any liability, Claims, demands, damages, costs,
expenses and attorneys’ fees incurred by Releasees, or any of them, as the
result of any such assignment or transfer or any rights or Claims under any
such assignment or transfer.  It is the intention of the parties that this
indemnity does not require payment as a condition precedent to recovery by the
Releasees against the undersigned under this indemnity.

 

The
undersigned agrees that if he hereafter commences any suit arising out of,
based upon, or relating to any of the Claims released hereunder or in any
manner asserts against Releasees, or any of them, any of the Claims released
hereunder, then the undersigned shall pay to Releasees, and each of them, in
addition to any other damages caused to Releasees thereby, all attorneys’ fees
incurred by Releasees in defending or otherwise responding to said suit or
Claim.

 

The
undersigned further understands and agrees that neither the payment of any sum
of money nor the execution of this Release shall constitute or be construed as
an admission of any liability whatsoever by the Releasees, or any of them, who
have consistently taken the position that they have no liability whatsoever to
the undersigned.

 

The
undersigned acknowledges
that different or additional facts may be discovered in addition to what is now
known or believed to be true by him with respect to the matters released in
this Agreement, and the undersigned agrees that this Agreement shall be and remain in effect in all
respects as a complete and final release of the matters released,
notwithstanding any different or additional facts.

 

[signature page follows]

 

 

IN
WITNESS WHEREOF, the undersigned has executed this Release this 14 day of January 2008.

 

 

	
   

  	
   

  
	
   

  	
  Shawn Mohr

  

 

 

EXHIBIT B

 

ON ASSIGNMENT, INC., CONVERTED
STOCK APPRECIATION RIGHTS AGREEMENT

PURSUANT TO THE ON ASSIGNMENT,
INC. RESTATED 1987 STOCK OPTION PLAN,

AS AMENDED AND RESTATED THROUGH
APRIL 17, 2007

 

This
Converted Stock Appreciation Rights Agreement (the “Agreement”),
dated as of Janaury [_], 2008, is made by and between On Assignment, Inc.,
a Delaware corporation (the “Company”) and
Shawn Mohr (the “Participant”), under the terms of
the Company’s Restated 1987 Stock Option Plan, as amended and restated through April 17,
2007, and as may be further amended from time to time (the “Plan”).  The Plan is
incorporated herein by reference and made a part of this Agreement and shall
control the rights and obligations of the Company and the Participant under
this Agreement.  Except as otherwise
provided herein, terms used herein shall have the meanings provided in the
Plan.  To the extent, if any, that there
may exist a conflict between the Plan and this Agreement, the Plan shall
prevail.  Capitalized terms used but not
otherwise defined in this Agreement shall have the meanings ascribed to such
terms in the Plan.

 

1.                     Conversion to Stock Appreciation Rights.  The
[    ]shares of Stock (a) which are subject to that
certain stock option (the “Prior Option”)
granted pursuant to the Stock Option Agreement between the Company and the
Participant, dated [    ], and (b) which constitute
Currently Exercisable Shares (as defined in that certain Separation Agreement
between the Company and the Participant, dated January  _, 2008 (the “Separation Agreement”),  are hereby
converted into an equivalent number of Stock Appreciation Rights (“SARs”) with a SAR Exercise Price of
$[    ] per SAR, which SAR Exercise Price equals the Option
Price of the Prior Option.  The SARs
shall be subject to the terms and conditions of the Plan and this Agreement.

 

2.                     Vesting.  The SARs shall remain fully
vested and exercisable following the conversion described in Section 1
above.

 

3.                     Exercise and Term.  The
Participant may exercise the SARs until the earliest to occur of the following
dates (the earliest such date, the “Expiration Date”):

 

(a)           the
third anniversary of the date of the Participant’s termination of employment by
reason of the Participant’s death or Disability;

 

(b)                                 the date which is three months after the date
of the Participant’s termination of employment for any reason other than death,
Disability or Cause, provided, that
if the Participant dies prior to the expiration of such three-month period, the
SARs shall remain exercisable until the earlier of the dates specified in Section 3(a) and
Section 3(d) hereof;

 

(c)           the
date of the Participant’s termination of employment by the Company for Cause;
and

 

 

(d)           [    ],
the expiration date of the Prior Option.

 

To the extent that the
Participant does not exercise SAR prior to the Expiration Date, such SAR shall
terminate and be forfeited.

 

4.                     Method of Exercise.  The
SARs shall be exercised by completing an Exercise Notice in the form attached
hereto as Exhibit A or such other Exercise Notice as the Committee
may prescribe.  Such Exercise Notice
shall state the number of shares of Stock with respect to which the SARs are
being exercised and contain such other representations and agreements as may be
required by the Committee pursuant to the provisions of the Plan (whether or
not currently included in Exhibit A).  The Exercise Notice shall be signed by the
Participant and delivered in person or by certified mail to the Secretary of
the Company.  The SARs shall be deemed to
be exercised upon receipt by the Company of such written notice.  Notwithstanding any of the foregoing, the
Committee shall have the right to specify all conditions of the manner of
exercise, which conditions may vary and which may be subject to change from
time to time.

 

5.                     Payment.  Upon exercise of any SARs, the
Participant (or if applicable his or her beneficiary) shall be entitled to
receive an amount in cash, less any required withholding, equal to the product
of (i) the difference between the Fair Market Value of a share of Stock on
the date of exercise and the SAR Exercise Price, multiplied by (ii) the
number of shares of Stock with respect to which the SARs are being
exercised.  Payments in respect of any
SARs that are exercised in accordance herewith shall be made to the Participant
(or in the event of the Participant’s death, to the Participant’s estate), on
or as soon as practicable after the date of exercise, but in any event within
thirty (30) days after such exercise date.

 

6.                     Converted Stock Appreciation Right.  The
conversion of the Prior Option into SARs pursuant to this Agreement shall
constitute full and final satisfaction of all obligations existing  under the Prior Option with respect to the
Currently Exercisable Shares thereunder or otherwise.  This Agreement supersedes and replaces in its
entirety the Prior Option.  In
consideration of the conversion of the Prior Option into these SARs and for
other good and valuable consideration, the sufficiency of which is hereby
acknowledged, the Participant hereby waives, relinquishes and gives up any and
all right, title, claims and other interests that Optionee may have arising
under or in connection with the Prior Option. 
Notwithstanding anything contained in the Prior Option or the Plan,
except as expressly stated in Section 7 below, all of Optionee’s rights
under or in connection with the Prior Option are hereby terminated and shall be
deemed null and void and of no force and effect.

 

7.                     No Modification.  The
conversion of the Prior Option into SARs is intended not to constitute a “modification”
or “extension” within the meaning of Treas. Reg. 1.409A-1(b)(5)(v).  Notwithstanding anything contained herein, to
the extent that any term or condition of these SARs, whether contained in this
Agreement, the Separation Agreement or the Plan, would constitute a such a “modification”
to, or “extension” of, the Prior Option, then such term and/or condition of
these SARs shall 

 

 

be disregarded and the corresponding term
and/or condition of the Prior Option shall remain in effect.

 

8.                     Miscellaneous.

 

(a)           Successors. 
This Agreement shall inure to the benefit of and be binding upon the
parties hereto and their respective heirs, executors, administrators,
successors and permitted assigns.

 

(b)                                 No Shareholder Rights.  The
Participant acknowledges that he does not have any rights as a shareholder of
the Company by reason of the conversion of the Prior Option into the SARs or
the settlement of such SARs.  The
Participant further acknowledges that the SARs shall only entitle the
Participant, if at all, to a cash amount determined and payable pursuant to the
terms of the Plan and this Agreement. 
The SARs shall not represent any right to receive actual shares of Stock
or other equity securities of the Company or any Subsidiary, and the
Participant shall not have any interest in or right to receive any such shares
or securities following or by reason of (a) the conversion of the Prior
Option to SARs or (b) the settlement of the SARs.

 

(c)                                  Withholding.  The Company shall have the authority and the
right to deduct or withhold, or require the Participant (or his beneficiary) to
remit to the Company, an amount sufficient to satisfy all federal, state, local
and foreign taxes (including the Participant’s employment tax obligations)
required by law to be withheld with respect to the conversion into, vesting or
exercise of the SARs.

 

(d)                                 Section 409A.  The SARs
are intended to be exempt from the provisions of Section 409A of
the Code and Department of Treasury regulations and other interpretive guidance
issued thereunder, as providing for a right to compensation based on the
appreciation in value of a specified number of shares of service recipient
stock as described in Section 1.409A-1(b)(5)(i)(B) of the Department
of Treasury regulations.  Notwithstanding
any provision of the Plan, the Separation Agreement or this Agreement to the
contrary, in the event that the Committee determines that the SARs may be or become subject to Section 409A
of the Code and related Department of Treasury guidance (including such
Department of Treasury guidance as may be issued after the date hereof), the
Committee may adopt such amendments to the Plan and this Agreement or adopt
other policies and procedures (including amendments, policies and procedures
with retroactive effect), or take any other actions, that the Committee
determines are necessary or appropriate to (a) exempt the SARs from Section 409A of the
Code and/or preserve the intended tax treatment of the benefits provided with
respect to the SARs, or (b) comply
with the requirements of Section 409A of the Code and related Department
of Treasury guidance.

 

(e)                                  Amendment.  This Agreement may be
modified or amended only by a written agreement signed by the Participant and a
duly authorized representative of the Company.

 

 

(f)                                    No Right to Employment.  Nothing
in the Plan or in this Agreement shall confer upon the Participant any right to
continue as an employee or other service provider of the Company or any
Subsidiary, or shall interfere with or restrict in any way the rights of the
Company or any Subsidiary, which are hereby expressly reserved, to discharge
the Participant at any time for any reason whatsoever, with or without cause.

 

(g)                                 Nontransferrable.  The
SARs are not transferable other than by will or the laws of descent and
distribution and may be realized, during the lifetime of the Participant, only
by the Participant or by his or her guardian or legal representative.

 

(h)                                 Severability.  Should any provision of this Agreement be
determined by a court of law to be illegal or unenforceable, the other
provisions shall nevertheless remain effective and shall remain enforceable.

 

(i)                                     Governing Law.  The
interpretation, performance and enforcement of this Agreement shall be governed
by the laws of California.

 

(j)                                     Captions.  The captions contained in this
Agreement are for convenience only and shall have no bearing on the meaning,
construction or interpretation of the Agreement’s provisions.

 

[Signature Page Follows]

 

 

IN
WITNESS WHEREOF, the Participant and the Company have executed this Agreement
as of the date and year first above written.

 

 

	
  ON
  ASSIGNMENT, INC.

  	
   

  	
  PARTICIPANT

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Its:

  	
   

  	
   

  	
  Shawn
  Mohr

  

 

 

EXHIBIT A

 

ON ASSIGNMENT, INC.

CONVERTED STOCK APPRECIATION
RIGHTS EXERCISE NOTICE

PURSUANT TO THE ON ASSIGNMENT,
INC. RESTATED 1987 STOCK OPTION PLAN,

AS AMENDED AND RESTATED
THROUGH APRIL 17, 2007

 

On Assignment, Inc.

26651 West Agoura Road

Calabasas, CA 91302

 

Attention: Stock Plan Administrator

 

(e)           Effective
as of today,
                                                ,
the undersigned Participant
hereby elects to exercise Participant’s vested Converted Stock Appreciation
Rights (the “SARs”) with respect to
[    ] shares of Stock pursuant to the On Assignment, Inc.
Restated 1987 Stock Option Plan, as Amended and Restated through April 17,
2007 and the Converted Stock Appreciation Rights Award Agreement dated as of
[                        ].

 

(f)            I
acknowledge that payment for the SARs will be made in accordance with the terms
set forth in the Plan and the Converted Stock Appreciation Rights Award
Agreement, less any legally required withholdings.

 

	
  Submitted by:

  	
   

  
	
   

  	
   

  
	
  PARTICIPANT:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Shawn Mohr

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Address:

  	
   

  
	
   

  	
   

  

 

 

EXHIBIT C

 

STATUS OF STOCK OPTION GRANTS TO
MOHR AS OF IMMEDIATELY PRIOR TO THE TERMINATION DATE

 

STOCK OPTIONS

 

	
   

  	
   

  	
  Grant

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Number

  	
   

  	
  Date

  	
   

  	
  Plan

  	
   

  	
  Type

  	
   

  	
  Granted

  	
   

  	
  Price

  	
   

  	
  Exercised

  	
   

  	
  Vested

  	
   

  	
  Cancelled

  	
   

  	
  Unvested

  	
   

  	
  Outstanding

  	
   

  	
  Exercisable

  	
   

  
	
  000723

  	
   

  	
  4/7/1997

  	
   

  	
  SO87

  	
   

  	
  ISO

  	
   

  	
  8,000.00

  	
   

  	
  $

  	
  7.09375

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  8,000.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  
	
  002331

  	
   

  	
  1/13/2004

  	
   

  	
  SO87

  	
   

  	
  NQ

  	
   

  	
  40,000.00

  	
   

  	
  $

  	
  6.52000

  	
   

  	
  0.00

  	
   

  	
  39,444.00

  	
   

  	
  0.00

  	
   

  	
  556.00

  	
   

  	
  40,000.00

  	
   

  	
  39,444.00

  	
   

  
	
  002383

  	
   

  	
  4/14/2004

  	
   

  	
  SO87

  	
   

  	
  NQ

  	
   

  	
  110,000.00

  	
   

  	
  $

  	
  6.00000

  	
   

  	
  0.00

  	
   

  	
  98,541.00

  	
   

  	
  0.00

  	
   

  	
  11,459.00

  	
   

  	
  110,000.00

  	
   

  	
  98,541.00

  	
   

  
	
  002435

  	
   

  	
  8/9/2004

  	
   

  	
  SO87

  	
   

  	
  ISO

  	
   

  	
  84,515.00

  	
   

  	
  $

  	
  4.65000

  	
   

  	
  23,170.00

  	
   

  	
  63,009.00

  	
   

  	
  0.00

  	
   

  	
  21,506.00

  	
   

  	
  61,345.00

  	
   

  	
  39,839.00

  	
   

  
	
  002436

  	
   

  	
  8/9/2004

  	
   

  	
  SO87

  	
   

  	
  NQ

  	
   

  	
  75,485.00

  	
   

  	
  $

  	
  4.65000

  	
   

  	
  50,950.00

  	
   

  	
  70,322.00

  	
   

  	
  0.00

  	
   

  	
  5,163.00

  	
   

  	
  24,535.00

  	
   

  	
  19,372.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  318,000.00

  	
   

  	
   

  	
   

  	
  74,120.00

  	
   

  	
  271,316.00

  	
   

  	
  8,000.00

  	
   

  	
  38,684.00

  	
   

  	
  235,880.00

  	
   

  	
  197,196.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Aggregate Exercise Price
  of Exercisable Options =        (39,444
  * $6.52) + (98,541 * $6.00) + (39,839 * $4.65) + (19,372 * $4.65) =
  $1,123,752.03

  	
   

  

 

 

 

EXHIBIT D

 

NAMED EMPLOYEES

 

*

*

*

*

*

*

 

* Confidential portions of this exhibit have been omitted and filed
separately with the Securities and Exchange Commission pursuant to a
confidential treatment request.

 

 

EXHIBIT E

 

OFFICE INVENTORY

 

Personal
Items included:

 

·                  Photo
album

·                  Desk
photos

·                  Various
magazines

·                  Food
supplements

·                  Personal
documents (tax returns, bills, etc.)Exhibit 10.6

 

MEDAREX, INC.

2005
EQUITY INCENTIVE PLAN

 

RESTRICTED
STOCK UNIT AWARD GRANT NOTICE (THE “GRANT NOTICE”)

 

Medarex, Inc.
(“Medarex”), pursuant to Section 9
of the Medarex, Inc. 2005 Equity Incentive Plan (the “Plan”),
hereby awards to the Participant named below a Restricted Stock Unit Award
covering the number of shares of Medarex’s common stock (“Stock”)
set forth below (the “Award”).  This Award will be evidenced by a Restricted
Stock Unit Award Agreement (the “Agreement”).  This Award is subject to all of the terms and
conditions as set forth herein and in the Agreement, the Restricted Stock Unit
Deferral Election Agreement (if applicable) and the Plan, all of which are
incorporated herein in their entirety.

 

	
  Participant:

  	
   

  
	
  Date of Grant:

  	
   

  
	
  Number of Shares
  of Stock Subject to Award:

  	
   

  

 

	
  Vesting
  Schedule:

  	
  The Stock
  subject to this Award shall vest in accordance with the following schedule,
  provided that (i) vesting shall cease upon termination of Participant’s
  Service, except as otherwise provided in Participant’s Employment Agreement
  (as defined below) and (ii) this Award shall become fully and
  immediately vested upon a Change in Control (as defined in the Plan):

  
	
   

  	
   

  
	
   

  	
  One-fourth (1/4th)
  of the Stock subject to this Award shall vest on the date that is thirteen
  (13) months after the Date of Grant, and one-fourth (1/4th) of the
  Stock subject to this Award shall vest on the second, third and fourth
  anniversaries of the Date of Grant.

  

 

Additional
Terms/Acknowledgements: 
The undersigned acknowledges receipt of, and understands and agrees to,
this Grant Notice, the Agreement, the Restricted Stock Unit Deferral Election
Agreement (if applicable) and the Plan. 
Participant further acknowledges that as of the Date of Grant, this
Grant Notice, the Agreement, the Restricted Stock Unit Deferral Election
Agreement (if applicable) and the Plan set forth the entire understanding
between Participant and Medarex regarding the acquisition of shares of Stock of
Medarex and supersede all prior oral and written agreements on that subject
with the exception of (i) Awards previously granted and delivered to
Participant under the Plan, and (ii) the following agreements only:

 

	
  OTHER
  AGREEMENTS:

  	
  Participant’s
  Employment Agreement, dated
                      ,
  as

  
	
   

  	
  Amended (the “Employment Agreement”)

  

 

	
  MEDAREX,
  INC.

  	
  PARTICIPANT:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Signature

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ATTACHMENT:

  	
  Restricted Stock
  Unit Award Agreement, Restricted Stock Unit Deferral Election Agreement, and
  the Medarex, Inc. 2005 Equity Incentive Plan

  
									

 

1

 

ATTACHMENT
I

 

RESTRICTED STOCK UNIT

AWARD AGREEMENT

 

2

 

ATTACHMENT
II

 

RESTRICTED STOCK UNIT

DEFERRAL ELECTION AGREEMENT

 

3

 

ATTACHMENT
III

 

2005 EQUITY INCENTIVE PLAN

 

4

 

MEDAREX, INC.

2005
EQUITY INCENTIVE PLAN

 

RESTRICTED
STOCK UNIT AWARD AGREEMENT

 

Pursuant to the Restricted Stock
Unit Award Grant Notice (“Grant Notice”)
and this Restricted Stock Unit Award Agreement (“Agreement”),
Medarex, Inc. (“Medarex”) has awarded you a
Restricted Stock Unit Award pursuant to Section 9 of the Medarex, Inc.
2005 Equity Incentive Plan (the “Plan”)
for the number of shares of Medarex’s common stock (“Stock”)
indicated in the Grant Notice (collectively, the “Award”).  Capitalized terms not explicitly defined in
this Agreement but defined in the Plan shall have the same definitions as in
the Plan.

 

The
details of your Award are as follows.

 

1.             DISTRIBUTION OF SHARES OF STOCK.  Medarex
will deliver to you a number of shares of Stock equal to the number of vested
shares of Stock subject to your Award on the vesting date or dates
provided in your Grant Notice; provided,
however, that:

 

(a)           If, no later than [INSERT DATE
(30 days after the Date of Grant)], you elect to defer
delivery of such shares of Stock beyond the vesting date, then Medarex shall deliver such shares to you
on the date or dates that you so elect;

 

(b)           Notwithstanding any
deferral election made pursuant to Section 1(a), upon your termination of
Service for any reason, death or Disability, all vested shares of Stock subject
to your Award will be delivered to you as soon as practicable after such date
of termination, death or Disability, as applicable;

 

(c)           Notwithstanding any
deferral election made pursuant to Section 1(a), if a Change in Control
occurs and such Change in Control also constitutes a change in control event
within the meaning of Section 409A of the Code and the Treasury
Regulations promulgated thereunder, all vested shares of Stock subject to your
Award shall be delivered to you as soon as practicable after such Change in
Control; and

 

(d)           Notwithstanding the
foregoing, in the event that Medarex
determines that you are subject to its policy regarding insider trading of its
stock and any shares of Stock subject to your Award are scheduled to be
delivered on a day (the “Original
Distribution Date”) that does not occur during an open “window
period” applicable to you, as determined by Medarex
in accordance with such policy, then such shares shall not be delivered on such
Original Distribution Date and shall instead be delivered as soon as
practicable within the next open “window period” applicable to you pursuant to
such policy; provided, however, that in no event shall the delivery of the
shares be delayed pursuant to this provision beyond the later of: (i) December 31st
of the same calendar year of the Original Distribution Date, or (ii) the
15th day of the third calendar month following the Original
Distribution Date.

 

1

 

2.             CONSIDERATION.   The Stock delivered to you
pursuant to Section 1 of this Agreement shall be deemed paid, in whole or
in part, in consideration of your services to Medarex in the amounts and to the extent required by law.

 

3.             VESTING.  Subject to the limitations
contained herein, your Award shall vest as provided in the Grant Notice,
provided that (i) vesting shall cease upon termination of your Service,
except as otherwise provided in your Employment Agreement with Medarex dated                       ,
as amended (the “Employment Agreement”) and (ii) your
Award shall become fully and immediately vested upon a Change in Control.  Except as otherwise provided in the
Employment Agreement, upon termination of your Service, you shall forfeit any
portion of your Award that is unvested at the time of such termination.

 

4.             DIVIDENDS.  You shall be entitled to
receive Dividend Equivalents with respect to the payment of cash dividends on
Stock having a record date prior to date on which your Restricted Stock Units
are settled.  Such Dividend Equivalents,
if any, shall be paid by crediting you with additional whole Restricted Stock
Units as of the date of payment of such cash dividends.  The number of additional Restricted Stock
Units (rounded to the nearest whole number) to be so credited shall be
determined by dividing (x) the amount of cash dividends paid on such date
with respect to the number of shares of Stock represented by the Restricted
Stock Units previously credited to you by (y) the Fair Market Value per
share of Stock on such date. Such additional Restricted Stock Units shall be
subject to the same terms and conditions and shall be settled in the same
manner and at the same time (or as soon thereafter as practicable) as the
Restricted Stock Units originally subject to your Award.

 

5.             NUMBER OF SHARES.   The number of shares of Stock subject to your Award may be adjusted from
time to time for capitalization adjustments, as provided in Section 4(c) of
the Plan.

 

6.             ADDITIONAL RESTRICTIONS
OR CONDITIONS TO ISSUANCE AND DELIVERY OF SHARES. 
Notwithstanding any other provision of this Agreement or the Plan, Medarex
shall not be obligated to issue or deliver any shares of Stock pursuant to this
Agreement (i) until all additional restrictions or conditions to the Award
have been satisfied or removed, (ii) until, in the opinion of counsel to
Medarex, all applicable federal and state laws and regulations have been
complied with, including, but not limited to, the registration of such shares under the Securities Act or a determination by Medarex that such issuance or delivery would be exempt from the
registration requirements of the Securities Act, (iii) if the outstanding Stock is at the time listed on any stock
exchange or included for quotation on an inter-dealer system, until the shares
to be delivered have been listed or included or authorized to be listed or
included on such exchange or system upon official notice of notice of issuance,
(iv) if it might cause Medarex to issue or sell more shares of Stock than
Medarex is then legally entitled to issue or sell, and (v) until all other
legal matters in connection with the issuance and delivery of such shares have
been approved by counsel to Medarex.

 

7.             EXECUTION OF
DOCUMENTS.  You hereby acknowledge
and agree that your execution of the Grant Notice shall also be deemed to be
your execution of this Agreement.  This
Agreement shall be deemed to be signed by Medarex
and you upon the respective signing by Medarex
and you of the Grant Notice to which it is attached.

 

2

 

8.             COMPLIANCE WITH SECTION 409A OF THE INTERNAL
REVENUE CODE.  Notwithstanding anything to the contrary set
forth herein, Medarex may amend this Agreement and your Award at any
time and in any and all respects without your consent as Medarex may, in its sole discretion, deem
appropriate in order to comply with the requirements of the Treasury Department regulations and other
guidance governing Section 409A of the Code.  Medarex
will notify you of any such changes made to this Agreement and your Award.

 

9.             NON-TRANSFERABILITY.  Your Award is not transferable, except by
will or by the laws of descent and distribution.  Notwithstanding the foregoing, by delivering
written notice to Medarex, in a form
satisfactory to Medarex, you may
designate a third party who, in the event of your death, will thereafter be
entitled to receive any distribution of shares of Stock pursuant to Section 1
of this Agreement.

 

10.          AWARD NOT A SERVICE CONTRACT.  Your Award is not an employment
or service contract, and nothing in your Award will be deemed to create in any
way whatsoever any obligation on your part to continue in the service of
Medarex or an Affiliate, or on the part of Medarex or an Affiliate to continue
such service.  In addition, nothing in
your Award will obligate Medarex or an Affiliate, their respective
stockholders, boards of directors or employees to continue any relationship
that you might have as an employee of Medarex or an Affiliate.

 

11.          UNSECURED OBLIGATION.  Your Award is unfunded, and as a holder of a
vested Restricted Stock Unit Award, you will be considered an unsecured
creditor of Medarex with respect to its obligation, if any, to issue shares of
Stock pursuant to this Agreement.  You will
not have voting or any other rights as a stockholder of Medarex with respect to the shares of Stock subject to your Award
until such shares of Stock are issued to you pursuant to Section 1 of this
Agreement.   Upon such issuance, you will
obtain full voting and other rights as a stockholder of Medarex.  Nothing contained
in this Agreement, and no action taken pursuant to its provisions, will create
or be construed to create a trust of any kind or a fiduciary relationship
between you and Medarex or any other
person.

 

12.          WITHHOLDING
OBLIGATIONS.

 

(a)            On
or before the time you receive a distribution of shares of Stock pursuant to your
Award, or at any time thereafter as requested by Medarex, you hereby authorize
any required withholding from the shares of Stock, payroll and any other
amounts payable to you and otherwise agree to make adequate provision for any
sums required to satisfy the Federal, state, local and foreign tax withholding
obligations of Medarex or an Affiliate, if any, which arise in connection with
your Award.

 

(b)            Unless
the tax withholding obligations of Medarex and/or any Affiliate are satisfied,
Medarex will have no obligation to issue a certificate for such shares of
Stock.

 

13.          NOTICES.  All notices with respect to the Plan
shall be in writing and shall be hand delivered or sent by first class mail or
reputable overnight delivery service, expenses prepaid.  Notice may also be given by electronic mail
or facsimile and shall be effective on the date transmitted if confirmed within
24 hours thereafter by a signed original sent in a manner provided in the
preceding sentence.  Notices to Medarex or the Committee shall be
delivered or 

 

3

 

sent to Medarex’s headquarters, to the attention
of its Chief Financial Officer.  Notices
to any Participant or holder of shares of Stock issued pursuant to an Award
shall be sufficient if delivered or sent to such person’s address as it appears
in the regular records of Medarex or
its transfer agent.

 

14.          HEADINGS.  The headings of the Sections in this
Agreement are inserted for convenience only and will not be deemed to
constitute a part of this Agreement or to affect the meaning of this Agreement.

 

15.          AMENDMENT.  Nothing in this Agreement shall restrict Medarex’s ability to exercise its
discretionary authority pursuant to Section 3 of the Plan; provided, however, that no such action may,
without your consent, adversely affect your rights under your Award and this
Agreement.  Notwithstanding the
foregoing, Medarex may amend this
Agreement and your Award without your consent as provided in Section 8 of
this Agreement.  Without limiting the
foregoing, the Committee reserves the right to change, by written notice to
you, the provisions of this Agreement in any way it may deem necessary or
advisable to carry out the purpose of the grant as a result of any change in
applicable laws or regulations or any future law, regulation, ruling, or
judicial decision, provided that any such change will be applicable only to
rights relating to that portion of the Award which is then subject to
restrictions as provided herein.

 

16.          MISCELLANEOUS.

 

(a)            The rights and
obligations of Medarex under your
Award will be transferable by Medarex
to any one or more persons or entities, and all covenants and agreements
hereunder will inure to the benefit of, and be enforceable by Medarex’s successors and assigns.

 

(b)            You agree upon
request to execute any further documents or instruments necessary or desirable
in the sole determination of Medarex
to carry out the purposes or intent of your Award.

 

(c)            You acknowledge
and agree that you have reviewed your Award in its entirety, have had an
opportunity to obtain the advice of counsel prior to executing and accepting
your Award and fully understand all provisions of your Award.

 

(d)            This Agreement
will be subject to all applicable laws, rules, and regulations, and to such approvals
by any governmental agencies or national securities exchanges as may be
required.

 

(e)            All obligations of
Medarex under the Plan and this
Agreement will be binding on any successor to Medarex, whether the existence of such successor is the result of
a direct or indirect purchase, merger, consolidation, or otherwise, of all or
substantially all of the business and/or assets of Medarex.

 

17.          GOVERNING
PLAN DOCUMENT.  Your Award is subject to all the provisions
of the Plan, the provisions of which are hereby made a part of your Award, and
is further subject to all interpretations, amendments, rules and
regulations which may from time to time be promulgated and adopted pursuant to
the Plan.  In the event of any conflict
between the 

 

4

 

provisions
of your Award and those of the Plan, the provisions of the Plan will control; provided, however, that Section 1 of this Agreement
will govern the timing of any distribution of shares of Stock under your
Award.  The Committee will have
the power to interpret the Plan and this Agreement and to adopt such rules for
the administration, interpretation, and application of the Plan as are
consistent therewith and to interpret or revoke any such rules.  All actions taken and all interpretations and
determinations made by the Committee will be final and binding upon you, Medarex, and all other interested
persons.  No member of the Committee will
be personally liable for any action, determination, or interpretation made in
good faith with respect to the Plan or this Agreement.

 

18.          CHOICE OF LAW.  The
interpretation, performance and enforcement of this Agreement will be governed
by the laws of the State of New Jersey without regard to its conflicts of laws
rules.

 

19.          SEVERABILITY.  If all or
any part of this Agreement or the Plan is declared by any court or governmental
authority to be unlawful or invalid, such unlawfulness or invalidity will not
invalidate any portion of this Agreement or the Plan not declared to be
unlawful or invalid. Any Section of this Agreement (or part of such a
Section) so declared to be unlawful or invalid will, if possible, be construed
in a manner which will give effect to the terms of such Section or part of
a Section to the fullest extent possible while remaining lawful and valid.

 

5

 

MEDAREX, INC.

2005 EQUITY INCENTIVE PLAN

 

RESTRICTED STOCK UNIT DEFERRAL ELECTION AGREEMENT

 

Please complete
this Election Agreement and return a signed copy to Deanna Dietl, Senior
Director of Human Resources of Medarex, Inc. (“Medarex”)
no later than [insert date (30 days after the Date of
Grant)].

 

Defined terms not explicitly defined in this Election Agreement but
defined in the Medarex, Inc. 2005 Equity Incentive Plan (the “Plan”), your Restricted Stock Unit
Award Agreement (“Agreement”) or your
Restricted Stock Unit Award Grant Notice (“Grant Notice”)
shall have the same definitions as in the Plan, Agreement or Grant Notice, as
applicable.

 

Name:

 

INSTRUCTIONS

 

In making this election, the following rules apply:

 

·                  You may elect to
defer your receipt of all shares of vested Stock subject to your Restricted
Stock Unit Award (“Award”) to a specified date that
occurs after the final vesting date of your Award.  If you do not elect such a specified date,
then the shares of vested Stock subject to your Award will be issued upon the
vesting date(s) indicated in your Grant Notice (or as soon as practicable
thereafter).  Notwithstanding the
foregoing, as described in Section 1 of your Agreement, the distribution
of such shares may be delayed if Medarex determines that you are subject to its
policy regarding insider trading of its stock and such shares are scheduled to
be delivered on a day that does not occur during an open “window period”
applicable to you, as determined by Medarex in accordance with such policy.

 

·                  Notwithstanding any deferral election you make on
this Election Agreement, upon termination of your Service for any
reason, death or Disability, you will receive all shares of vested Stock
subject to your Award as soon as
practicable following such termination, death or Disability, as applicable, except that if you are a  “specified employee” (as defined in Section 409A(a)(2)(B) of
the Code) (definition includes officers earning over $150,000 in 2008),
the distribution of all such shares due to your termination of Service shall not be made until 6 months following
the date of such termination (or if
earlier, your date of death).

 

·                  In the event of
a Change in Control (as defined in the Plan), your Award shall become fully and
immediately vested.  If the Change in
Control meets certain requirements, all shares of Stock subject to your Award
shall be distributed as soon as practicable after such Change in Control,
notwithstanding any deferral election you
make on this Election Agreement.

 

·                  If you wish to
further defer distribution of your Award after you have submitted this Election
Agreement, you may do so by making a subsequent deferral election in a form
specified by Medarex.  Please note,
however, that such subsequent deferral election must be made more than 12
months prior to the Original Distribution Date and must defer distribution to a
date that is at least 5 years after the Original Distribution Date.

 

·                  Notwithstanding
any provision in this Election Agreement or your Grant Notice, the Agreement or
the Plan to the contrary, the issuance of the vested Stock subject to your
Award shall be made in a manner that complies with the requirements of Section 409A
of the Code; provided however, that nothing in
this paragraph shall require the payment of benefits to you earlier than
they would otherwise be payable under your Award.

 

1

 

DEFERRAL ELECTION

 

I hereby irrevocably
elect to defer receipt of all of the shares of vested Stock subject to the
above-referenced Restricted Stock Unit Award until the date that is                            years
following the final vesting date of the Award (or as soon as practicable
thereafter).

 

Terms and
Conditions

 

By signing this
form, you hereby acknowledge your understanding and acceptance of the
following:

 

l.         Withholding.  Medarex shall have the right to deduct from
the shares of Stock, payroll and any other amounts payable to you, any federal,
state, or local tax required by law to be withheld or to make suitable
arrangements for the payment of such amounts. 
Unless the tax withholding obligations of Medarex are satisfied, Medarex
will have no obligation to issue a certificate for such shares of Stock.

 

2.        Nonassignable.  Your rights and interests under this Election
Agreement may not be assigned, pledged, or transferred.

 

3.        Bookkeeping Account.  Medarex will establish a bookkeeping account
to reflect the number and Fair Market Value of shares of Stock that you acquire
pursuant to your Award.

 

4.        Governing Law.  This Agreement shall be construed and
administered according to the laws of the State of New Jersey.

 

5.        No Guarantee.  Medarex may modify or
terminate the Plan at any time in accordance with the terms of the Plan. 
Such modification or termination may void the election made hereunder. 
This Agreement is not intended to constitute a contract of employment or
service with Medarex nor guarantee of employment for any minimum period.

 

6.        Unfunded Status.  You acknowledge that your Award is
unfunded, and all shares of Stock payable to you under your Award represent
merely unfunded, unsecured promises of Medarex to provide a benefit to you in
the future.  To the extent that you
acquire a right to receive shares of Stock from Medarex pursuant to this Award,
such right shall be no greater than the right of any unsecured general creditor
of Medarex.

 

Please
sign below to indicate your acceptance and agreement with all the terms and
provisions of this Election Agreement:

 

 

	
   

  	
   

  
	
  Signature

  	
   

  
	
   

  	
   

  
	
  Date: 

  	
   

  	
   

  
			

 

2

 

MEDAREX, INC.

2005
EQUITY INCENTIVE PLAN

 

RESTRICTED
STOCK UNIT SUBSEQUENT DEFERRAL
ELECTION

 

I hereby acknowledge
that I previously elected to receive a distribution of vested shares of Stock
subject to my Restricted Stock Unit Award dated                            ,
200       [fill in Date of Grant]
on                            ,
200       [fill in Original
Distribution Date].

 

I hereby elect to
further defer distribution of such vested shares of Stock subject to such
Restricted Stock Unit Award until the following date:                                             
[fill in date that is five years after the
Original Distribution Date or later].

 

 

	
   

  	
  EMPLOYEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  

 

1

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