Document:

tsro_Ex10_26

		

			Exhibit 10.26

		

		

			 

		

		

			[***] INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT WAS REQUESTED. ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

		

		

			 

		

		
			PRODUCT AGREEMENT
		

		
			VARUBI (ROLAPITANT TABLETS 100 mg)
		

		
			This Product Agreement (this “Product Agreement”) is issued under the Master Manufacturing Services Agreement dated October 13th, 2015 between Patheon Inc. and TESARO, Inc.  (the “Master Agreement”), and is entered into October 13th, 2015 (the “Effective Date”), between Patheon Inc., a corporation existing under the laws of Canada , having a principal place of business at 2100 Syntex Court, Mississauga, Ontario, L5N 7K9 (“Patheon”), and TESARO, Inc., a corporation existing under the laws of the State of Delaware, USA, having a principal place of business at 1000 Winter Street, Suite 3300, Waltham, Massachusetts, USA (“Client”).
		

		
			The terms and conditions of the Master Agreement are incorporated herein except to the extent this Product Agreement expressly references the specific provision in the Master Agreement to be modified by this Product Agreement.  All capitalized terms that are used but not defined in this Product Agreement will have the respective meanings given to them in the Master Agreement.
		

		
			The Schedules to this Product Agreement are incorporated into and will be construed in accordance with the terms of this Product Agreement.
		

			
	
			
				 1.
			

			
	
			
			Product List and Specifications (See Schedule A attached hereto)

			
	
			
				 2.
			

			
	
			
			Minimum Order Quantity, Annual Volume, and Price (See Schedule B attached hereto)

			
	
			
				 3.
			

			
	
			
			Annual Stability Testing and Validation Activities (if applicable) (See Schedule C attached hereto) 

			
	
			
				 4.
			

			
	
			
			Active Materials, Active Materials Credit Value, and Maximum Credit Value (See Schedule D attached hereto)

			
	
			
				 5.
			

			
	
			
			Yearly Forecasted Volume: Not applicable 

			
	
			
				 6.
			

			
	
			
			Territory: United States

			
	
			
				 7.
			

			
	
			
			Manufacturing Site: Patheon Inc., 2100 Syntex Court, Mississauga, Ontario, L5N 7K9

			
	
			
				 8.
			

			
	
			
			Governing Law: Per Section 13.17 of the Master Agreement 

			
	
			
				 9.
			

			
	
			
			Inflation Index: Notwithstanding anything to the contrary in Section 4.2(a) of the Master Agreement, per Section 4.2(a) of the Master Agreement

			
	
			
				 10.
			

			
	
			
			Currency: Per Section 1.4 of the Master Agreement- USD

			
	
			
				 11.
			

			
	
			
			Initial Set Exchange Rate: Per Section 4.2(d) of the Master Agreement - [***]

			
	
			
				 12.
			

			
	
			
			Initial Product Term: From the Effective Date to December 31, 2019.

			
	
			
				 13.
			

			
	
			
			Notices: (if applicable under Section 13.9 of the Master Agreement)

		
			 
		

		
			 
		

		 

 

		

			Master Manufacturing Services Agreement

		

			
	
			
				 14.
			

			
	
			
			Other Modifications to the Master Agreement: (if applicable under Section 1.2 of the Master Agreement)

		

		
			IN WITNESS WHEREOF, the duly authorized representatives of the parties have executed this Product Agreement as of the Effective Date set forth above.
		

			
					
						 

					
					
						PATHEON INC.

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Michael Fournier

				
	
					
						 

					
					
						Name:  

					
					
						Michael Fournier

				
	
					
						 

					
					
						Title:  

					
					
						VP + GM

				

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						TESARO, INC.

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Leon O. Moulder Jr.

				
	
					
						 

					
					
						Name:  

					
					
						Leon O. Moulder Jr.

				
	
					
						 

					
					
						Title:  

					
					
						CEO

				

		
			 
		

		
			

		 

		

			-  2  -

		

		

			 

		

		

			[***] INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT WAS REQUESTED. ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

		

		

			 

		

 

		

			Master Manufacturing Services Agreement

		

SCHEDULE A
		

		
			PRODUCT LIST AND SPECIFICATIONS
		

		
			Product List
		

		
			Varubi (Rolapitant Tablets 100 mg)
		

		
			Specifications
		

		
			Prior to the start of commercial manufacturing of Product under this Agreement Client will give Patheon copies of the Specifications as approved by the applicable Regulatory Authority.  If the Specifications received are subsequently amended, then Client will give Patheon the revised copies of the revised Specifications.  Upon acceptance of the revised Specifications, Patheon will give Client a signed and dated receipt indicating Patheon’s acceptance of the revised Specifications.
		

		
			 
		

		
			 
		

		
			

		 

		

			-  3  -

		

		

			 

		

		

			[***] INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT WAS REQUESTED. ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

		

		

			 

		

 

		

			Master Manufacturing Services Agreement 

		

SCHEDULE B
		

		
			MINIMUM ORDER QUANTITY, ANNUAL VOLUME, AND PRICE
		

		
			Annual Volume Forecasts
		

		
			Patheon is providing pricing based on an annual volume forecast of [***] batches.
		

		
			Pricing Table
		

		
			Manufacturing Prices
		

		
			Pricing includes the cost of labour, overhead, raw materials, packaging components and QC testing.  Notwithstanding anything to the contrary set forth in Sections 4.1 and 4.2 of the Master Agreement, the pricing included below shall be effective from the Effective Date until December 31, 2016 and shall not be subject to pricing adjustments under Section 4.2 of the Master Agreement during such period.
		

		
			Varubi (Rolapitant) Tablets 100 mg (Dual Starviews) – 2ct. Blister Cards in Wallets
		

			
					
						Number of Lots

					
					
						Annual Volume 

					
					
						Minimum Ordering Quantity

					
					
						Price per Britestock Blister Card 

					
					
						Price per Batch

				
	
					
						Full Service Price

					
					
						Full Service Batch Price

				
	
					
						[***]

					
					
						[***]

					
					
						[***]

					
					
						[***]

					
					
						[***]

				

		
			 
		

		
			[***]
		

		
			 
		

		
			Capital Requirements
		

		
			To manufacture Rolapitant tablets at the site, the following capital expenditure will be required.  Client will be responsible for the dedicated capital expenditures listed below, as further set forth in a Capital Equipment Agreement executed by Patheon and the Client relating thereto.
		

			
					
						 

					
					
						 

				
	
					
						Client Funded Dedicated Capital

					
					
						Equipment

				
	
					
						[***]

					
					
						$[***]

				
	
					
						[***]

					
					
						$[***]

				

		
			 
		

		
			 
		

		
			

		 

		

			[***] INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT WAS REQUESTED. ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

		

		

			 

		

 

		

			Master Manufacturing Services Agreement 

		

Key Technical Assumptions
		

		
			Below are listed the main assumptions that were utilized by Patheon for quoting this product. Should any of the assumptions change, then the prices will be revised accordingly.
		

			
	
			
				 1.
			

			
	
			
			Manufacturing Assumptions

			
	
			
				 1.1
			

			
	
			
			The manufacturing process at Patheon will closely follow the process information provided by Client.

			
	
			
				 1.2
			

			
	
			
			The core weight for the tablets and the manufacturing batch size proposed by Patheon are summarized in the following table.

			
					
						 

					
					
						 

					
						 

					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Strength

					
					
						Core 

					
						Tablet Wgt.

					
						(mg)

					
					
						Core Batch Size

					
						(Kg)

					
					
						Batch Size Before Loss

					
						(Tablets)

					
					
						Mfg. Yield

					
						(%)

					
					
						Pkg. Yield

					
						(%)

				
	
					
						[***]

					
					
						[***]

					
					
						[***]

					
					
						[***]

					
					
						[***]

					
					
						[***]

				

		
			 
		

			
	
			
				 1.3
			

			
	
			
			The following manufacturing equipment train is proposed for Rolapitant P407 Tablets.

			
					
						 

					
					
						 

				
	
					
						Parameter

					
					
						Rolapitant P407 Tablets  - Equipment Train

				
	
					
						[***]

					
					
						[***]

				
	
					
						[***]

					
					
						[***]

				
	
					
						[***]

					
					
						[***]

				

		
			 
		

		
			Packaging Assumptions
		

			
	
			
				 2.1.
			

			
	
			
			Rolapitant tablets will be packaged into the configuration listed below.

			
					
						 

				
	
					
						Rolapitant P407 Tablets

				
	
					
						[***]

				
	
					
						[***]

				
	
					
						[***]

				
	
					
						[***]

				
	
					
						[***]

				
	
					
						[***]

				
	
					
						[***]

				
	
					
						[***]

				

		 

		

			-  2  -

		

		

			[***] INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT WAS REQUESTED. ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

		

		

			 

		

 

		

			Master Manufacturing Services Agreement 

		

			
	
			
				 2.2.
			

			
	
			
			Changes to the specifications and configuration will result in review of the final pricing outlined within this proposal.

			
	
			
				 2.3.
			

			
	
			
			The following packaging equipment train is proposed for Rolapitant P407 Tablets

			
					
						Rolapitant P407 Tablets  - Equipment Train

				
	
					
						[***]

				
	
					
						[***]

				

		
			Testing Assumptions
		

			
	
			
				 3.1.
			

			
	
			
			Listed in the table below are the tests for raw materials, packaging components and finished product.

			
					
						Product

					
					
						Testing

				
	
					
						Bulk Tablets

					
					
						[***]

				
	
					
						[***]

				
	
					
						[***]

				
	
					
						[***]

				
	
					
						[***]

				
	
					
						[***]

				
	
					
						[***]

				
	
					
						Finished Product

					
					
						[***]

				

			
	
			
				 3.2.
			

			
	
			
			It is assumed that the Patheon would only be required to complete [***] testing of the API.  Patheon can fully test incoming API and this service can be included if requested.

		
			
		

		 

		

			-  3 -

		

		

			 

		

		

			[***] INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT WAS REQUESTED. ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

		

		

			 

		

 

		

			Master Manufacturing Services Agreement 

		

			
	
			
				 3.3.
			

			
	
			
			It is assumed that QC test methods are fully validated and robust.

			
	
			
				 3.4.
			

			
	
			
			[***] testing has been included on the finished product.

			
	
			
				 3.5.
			

			
	
			
			Testing labour may be subject to change after the final agreement on testing specifications and requirements.

		
			Supply Chain Assumptions
		

		
			 
		

			
	
			
				 1.
			

			
	
			
			The quoted raw materials and packaging components are assumed to be supplied from standard Patheon suppliers. Patheon will procure components (raw materials and primary packaging materials) for the manufacture of Rolapitant P407 tablets from Patheon qualified suppliers. Should Client require Patheon to source any materials from specified suppliers, then these suppliers will remain under the Quality audit control of Client unless it is agreed that Patheon will take on this responsibility. Components and excipients to be supplied by Patheon in accordance with Client’s specifications. Patheon will issue formal Patheon specifications for each component following Client component requirements. Each lot of incoming components will be sampled and tested according to the agreed specifications.  If different component specifications for primary packaging are required, these will be subjected to a further evaluation and assessment by Patheon. 

			
	
			
				 2.
			

			
	
			
			API would be provided free issue/released to Patheon by Client. The API and all excipients used for the manufacture will be GMP grade and from TSE/BSE certified sources.

		
			 
		

		
			

		 

		

			-  4 -

		

		

			 

		

		

			[***] INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT WAS REQUESTED. ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

		

		

			 

		

 

		

			Master Manufacturing Services Agreement 

		

SCHEDULE C
		

		
			ANNUAL STABILITY TESTING [and VALIDATION ACTIVITIES (if applicable)] 
		

		
			Client is responsible for performing post-marketing/annual stability studies.
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

			[***] INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT WAS REQUESTED. ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

		

		

			 

		

 

		

			Master Manufacturing Services Agreement 

		

SCHEDULE D
		

		
			ACTIVE MATERIALS
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						Active Materials

					
					
						Supplier

				
	
					
						Rolapitant

					
					
						Hovione

				

		
			 
		

		
			ACTIVE MATERIALS CREDIT VALUE
		

		
			The Active Materials Credit Value will be as follows:
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						PRODUCT

					
					
						ACTIVE MATERIALS

					
					
						ACTIVE MATERIALS

					
						CREDIT  VALUE

				
	
					
						Varubi

					
					
						Rolapitant

					
					
						[***]

				

		
			 
		

		
			MAXIMUM CREDIT VALUE
		

		
			Patheon's liability for Active Materials calculated in accordance with Section 2.2 of the Master Agreement for the Product in a Year will not exceed, in the aggregate, the maximum credit value set forth below:
		

			
					
						 

					
					
						 

				
	
					
						PRODUCT

					
					
						MAXIMUM CREDIT VALUE

				
	
					
						Varubi

					
					
						[***]

				

		
			 
		

		 

		

			-  2  -Exhibit

Exhibit 10.18

On Assignment, Inc.
2010 INCENTIVE AWARD PLAN 
RESTRICTED STOCK UNIT AWARD NOTICE
On Assignment, Inc., a Delaware corporation, (the “Company”), pursuant to its 2010 Incentive Award Plan, as amended from time to time (the “Plan”), hereby grants to the holder listed below (“Participant”), an award of restricted stock units (“Restricted Stock Units” or “RSUs”).  Each Restricted Stock Unit represents the right to receive one Share upon vesting of such Restricted Stock Unit.  This award of Restricted Stock Units is subject to all of the terms and conditions set forth herein and in the Restricted Stock Unit Award Agreement attached hereto as Exhibit A (the “Restricted Stock Unit Award Agreement”) and the Plan, each of which are incorporated herein by reference.  Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Grant Notice and the Restricted Stock Unit Award Agreement.
	
		
	Participant:
	Peter T. Dameris

	Grant Date:
	 

	Grant Number:
	_________ (“20__ Tranche B Award”)

	Target Number of RSUs:
	_______ (“Target RSUs”)

	Maximum Number of RSUs:
	_______

	Earned RSUs:
	

The number of RSUs that are earned (the “Earned 20__ Tranche B RSUs”) shall be determined based on achievement of performance target(s) for calendar year 20__ determined by the Compensation Committee of the Company’s Board of Directors on or prior to March 31, 20__. 
 

	Vesting Schedule
	Any Earned 20__ Tranche B RSUs shall vest in substantially equal installments on January 2 of each of the following three years, subject to the Participant’s continued employment through the applicable vesting date. 
 
If the performance target is not attained in full and some or all RSUs do not become Earned 20__ Tranche B RSUs, then any portion which fails to be earned shall roll forward for one year only and will be added to the Tranche B award that is granted to the Participant in the following year. Vesting of such carried forward portion will be determined in the following year by reference to the attainment of the performance targets applicable to the Tranche B award for the following year.

	 

	Termination:
	The RSUs will be subject to forfeiture upon a Termination of Services as set forth in Section 2.5 of the Restricted Stock Unit Award Agreement (after taking into consideration any vesting that may occur in connection with such Termination of Services, if any), provided, however, that if Participant experiences a Qualifying Termination (as defined in that certain Second Amended and Restated Senior Executive Agreement between the Company and Participant, dated November 17, 2015 (the “Employment Agreement”)), the RSUs shall remain outstanding and eligible to vest in accordance with Section 2.3(b) of the Restricted Stock Unit Award Agreement. 

By his or her signature and the Company’s signature below, Participant agrees to be bound by the terms and conditions of the Plan, the Restricted Stock Unit Award Agreement and this Grant Notice.  Participant has reviewed the Restricted Stock Unit Award Agreement, the Plan and this Grant Notice in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Grant Notice and fully understands all provisions of this Grant Notice, the Restricted Stock Unit Award Agreement and the Plan.  Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under the Plan, this Grant Notice or the Restricted Stock Unit Award Agreement.  If Participant is married and living in one of the following states: Alaska, Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington or Wisconsin, his or her spouse has signed the Consent of Spouse attached to this Grant Notice as Exhibit B.  
	
				
	On Assignment, Inc.:
	PARTICIPANT:

	By:
	 
	By:
	

	Print Name: 
	Jon Holman
	Print Name:  
	Peter T. Dameris

	Title:
	Chairman, Compensation Committee of the Board of Directors
	Date:  
	

	Address: 
	26745 Malibu Hills Road
	Address: 
	 

	 
	Calabasas, CA  91301
	 
	 

 

EXHIBIT A
TO RESTRICTED STOCK UNIT AWARD GRANT NOTICE
ON ASSIGNMENT, INC. RESTRICTED STOCK UNIT AWARD AGREEMENT
Pursuant to the Restricted Stock Unit Award Grant Notice (the “Grant Notice”) to which this Restricted Stock Unit Award Agreement (this “Agreement”) is attached, On Assignment, Inc., a Delaware corporation (the “Company”), has granted to Participant an award of restricted stock units (“Restricted Stock Units” or “RSUs”) under the On Assignment, Inc. 2010 Incentive Award Plan, as amended from time to time (the “Plan”).  
ARTICLE 1. 
GENERAL

1.1Defined Terms.  Wherever the following terms are used in this Agreement they shall have the meanings specified below, unless the context clearly indicates otherwise.  Capitalized terms not specifically defined herein shall have the meanings specified in the Plan and the Grant Notice.  As used herein, the term “stock unit” shall mean a non-voting unit of measurement which is deemed for bookkeeping purposes to be equivalent to one outstanding Share (subject to adjustment as provided in Section 13.2 of the Plan) solely for purposes of the Plan and this Agreement.  The Restricted Stock Units shall be used solely as a device for the determination of the payment to eventually be made to Participant if such Restricted Stock Units vest pursuant to Section 2.3 hereof.  The Restricted Stock Units shall not be treated as property or as a trust fund of any kind.

(a) “Termination of Consultancy” shall mean the time when the engagement of Participant as a Consultant to the Company or a Subsidiary is terminated for any reason, with or without cause, including, but not by way of limitation, by resignation, discharge, death, Disability or retirement, but excluding:  (a) terminations where there is a simultaneous employment or continuing employment of Participant by the Company or any Subsidiary, and (b) terminations where there is a simultaneous re-establishment of a consulting relationship or continuing consulting relationship between Participant and the Company or any Subsidiary.  The Administrator, in its absolute discretion, shall determine the effect of all matters and questions relating to Termination of Consultancy, including, but not by way of limitation, the question of whether a particular leave of absence constitutes a Termination of Consultancy.  Notwithstanding any other provision of the Plan, the Company or any Subsidiary has an absolute and unrestricted right to terminate a Consultant’s service at any time for any reason whatsoever, with or without cause, except to the extent expressly provided otherwise in writing.

(b)“Termination of Directorship” shall mean the time when Participant, if he or she is or becomes a Non-Employee Director, ceases to be a Director for any reason, including, but not by way of limitation, a termination by resignation, failure to be elected, death or retirement.  The Board, in its sole and absolute discretion, shall determine the effect of all matters and questions relating to Termination of Directorship with respect to a Non-Employee Director.
(c)“Termination of Employment” shall mean the time when the employee-employer relationship between Participant and the Company or any Subsidiary is terminated for any reason, with or without cause, including, but not by way of limitation, a termination by resignation, discharge, death, Disability or retirement; but excluding:  (a) terminations where there is a simultaneous reemployment or continuing employment of Participant by the Company or any Subsidiary, and (b) terminations where there is a simultaneous establishment of a consulting relationship or continuing consulting relationship between Participant and the Company or any Subsidiary.  The Administrator, in its absolute discretion, shall determine the effect of all matters and questions relating to Termination of Employment, including, but not by way of limitation, the question of whether a particular leave of absence constitutes a Termination of Employment.

(d)“Termination of Services” shall mean Participant’s Termination of Consultancy, Termination of Directorship or Termination of Employment, as applicable.

A-1

1.2Incorporation of Terms of Plan.  The RSUs are subject to the terms and conditions of the Plan which are incorporated herein by reference.  In the event of any inconsistency between the Plan and this Agreement, the terms of the Plan shall control.
ARTICLE 2.
GRANT OF RESTRICTED STOCK UNITS

2.1Grant of RSUs.  In consideration of Participant’s past and/or continued employment with or service to the Company or a Subsidiary and for other good and valuable consideration, effective as of the Grant Date set forth in the Grant Notice (the “Grant Date”), the Company grants to Participant an award of RSUs as set forth in the Grant Notice, upon the terms and conditions set forth in the Plan and this Agreement. 

2.2Company’s Obligation to Pay.  Each RSU has a value equal to the Fair Market Value of a Share on the date it becomes vested.  Unless and until the RSUs will have vested in the manner set forth in Article 2 hereof, Participant will have no right to payment of any such RSUs.  Prior to actual payment of any vested RSUs, such RSUs will represent an unsecured obligation of the Company, payable (if at all) only from the general assets of the Company.  

2.3Vesting Schedule.  

(a)Subject to Sections 2.3(b) and 2.5 hereof, the RSUs awarded by the Grant Notice will vest and become nonforfeitable with respect to the applicable portion thereof according to the vesting schedule set forth on the Grant Notice to which this Agreement is attached (the “Vesting Schedule”), subject to Participant’s continued employment through the applicable vesting dates, as a condition to the vesting of the applicable installment of the RSUs and the rights and benefits under this Agreement.  Unless otherwise determined by the Administrator, partial employment or service, even if substantial, during any vesting period will not entitle Participant to any proportionate vesting or avoid or mitigate a termination of rights and benefits upon or following a Termination of Services as provided in Section 2.5 hereof or under the Plan.

(b)In addition, (i) upon a Qualifying Termination (as defined in the Participant’s Employment Agreement) prior to January 2 of the following year, the RSUs shall remain outstanding and eligible to vest (without the requirement of continued employment beyond such termination) as set forth in the Grant Notice to which this Agreement is attached (i.e., subject to the achievement of the applicable performance goal(s) during calendar year 20__) on a pro-rated basis (based on employment during the 20__ calendar year) on January 2 of the following year and (ii) upon a Qualifying Termination on or after January 2 of the following year, any Earned 20__ Tranche B RSUs (as defined in the Grant Notice to which this Agreement is attached) shall automatically vest in full.

2.4Consideration to the Company.  In consideration of the grant of the award of RSUs by the Company, Participant agrees to render faithful and efficient services to the Company or any Subsidiary.  Nothing in the Plan or this Agreement shall confer upon Participant any right to continue in the employ or service of the Company or any Subsidiary or shall interfere with or restrict in any way the rights of the Company and its Subsidiaries, which rights are hereby expressly reserved, to discharge or terminate the services of Participant at any time for any reason whatsoever, with or without cause, except to the extent expressly provided otherwise in a written agreement between the Company or a Subsidiary and Participant.

2.5Forfeiture, Termination and Cancellation upon Termination of Services.  

(a)In the event that the Participant experiences a Termination of Services that is not a Qualifying Termination, RSUs that have not vested as of the date of termination (after taking into account any accelerated vesting that may occur in connection with such Termination of Services) shall thereupon automatically be forfeited, terminated and cancelled as of the date of termination without payment of any consideration by the Company, and 

A-2

the Participant (or the Participant’s beneficiary or personal representative, as the case may be) shall have no further rights hereunder.  

(b)In the event that the Participant experiences a Qualifying Termination (i) prior to January 2 of the following year, the RSUs shall remain outstanding and eligible to vest in accordance with Section(s) 2.3(b) hereof or (ii) on or after January 2 of the following year, any Earned 20__ Tranche B RSUs shall automatically vest in full.  
2.6Payment upon Vesting. 

(a)As soon as administratively practicable following the vesting of any Restricted Stock Units pursuant to Section 2.3 hereof, but in no event later than sixty (60) days after such vesting date (for the avoidance of doubt, this deadline is intended to comply with the “short-term deferral” exemption from Section 409A of the Code), the Company shall deliver to Participant (or any transferee permitted under Section 3.2 hereof) a number of Shares (either by delivering one or more certificates for such shares or by entering such shares in book entry form, as determined by the Company in its sole discretion) equal to the number of Restricted Stock Units subject to this award that vest on the applicable vesting date, unless such Restricted Stock Units terminate prior to the given vesting date pursuant to Section 2.5 hereof.  Notwithstanding the foregoing, in the event Shares cannot be issued pursuant to Section 2.7(a), (b) or (c) hereof, then the Shares shall be issued pursuant to the preceding sentence as soon as administratively practicable after the Administrator determines that Shares can again be issued in accordance with Sections 2.7(a), (b) and (c) hereof.

(b)Notwithstanding anything to the contrary in this Agreement, the Company shall be entitled to require payment by Participant of any sums required by applicable law to be withheld with respect to the grant of RSUs or the issuance of Shares.  Such payment shall be made by deduction from other compensation payable to Participant or in such other form of consideration acceptable to the Company which may, in the sole discretion of the Administrator, include: 
(i)Cash or check;

(ii) Surrender of Shares (including, without limitation, Shares otherwise issuable under the RSUs) held for such period of time as may be required by the Administrator in order to avoid adverse accounting consequences and having a Fair Market Value on the date of delivery equal to the minimum amount required to be withheld by statute; or
(iii)Other property acceptable to the Administrator (including, without limitation, through the delivery of a notice that Participant has placed a market sell order with a broker with respect to Shares then issuable under the RSUs, and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale to the Company in satisfaction of its withholding obligations; provided that payment of such proceeds is then made to the Company at such time as may be required by the Company, but in any event not later than the settlement of such sale).

The Company shall not be obligated to deliver any new certificate representing Shares to Participant or Participant’s legal representative or enter such Share in book entry form unless and until Participant or Participant’s legal representative shall have paid or otherwise satisfied in full the amount of all federal, state and local taxes applicable to the taxable income of Participant resulting from the grant or vesting of the RSUs or the issuance of Shares.
2.7Conditions to Delivery of Stock.  Subject to Section 2.6, the Shares deliverable hereunder, or any portion thereof, may be either previously authorized but unissued Shares or issued Shares which have then been reacquired by the Company.  Such Shares shall be fully paid and nonassessable.  The Company shall not be required to issue or deliver any Shares deliverable hereunder or portion thereof prior to fulfillment of all of the following conditions:
(a)The admission of such Shares to listing on all stock exchanges on which such Shares are then listed; 

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(b)The completion of any registration or other qualification of such Shares under any state or federal law or under rulings or regulations of the Securities and Exchange Commission or of any other governmental regulatory body, which the Administrator shall, in its absolute discretion, deem necessary or advisable; 

(c)The obtaining of any approval or other clearance from any state or federal governmental agency which the Administrator shall, in its absolute discretion, determine to be necessary or advisable; 

(d)The receipt by the Company of full payment for such Shares, including payment of any applicable withholding tax, which may be in one or more of the forms of consideration permitted under Section (c) hereof; and

(e)The lapse of such reasonable period of time following the vesting of any Restricted Stock Units as the Administrator may from time to time establish for reasons of administrative convenience.

2.8Rights as Stockholder.  The holder of the RSUs shall not be, nor have any of the rights or privileges of, a stockholder of the Company, including, without limitation, voting rights and rights to dividends, in respect of the RSUs and any Shares underlying the RSUs and deliverable hereunder unless and until such Shares shall have been issued by the Company and held of record by such holder (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company).  No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Section 13.2 of the Plan.  
ARTICLE 3.
OTHER PROVISIONS

3.1Administration.  The Administrator shall 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, amend or revoke any such rules.  All actions taken and all interpretations and determinations made by the Administrator in good faith shall be final and binding upon Participant, the Company and all other interested persons.  Neither any person or persons acting as the Administrator and nor any member of the Committee or the Board shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan, this Agreement or the RSUs.  

3.2Grant is Not Transferable.  During the lifetime of Participant, the RSUs may not be sold, pledged, assigned or transferred in any manner other than by will or the laws of descent and distribution, unless and until the Shares underlying the RSUs have been issued, and all restrictions applicable to such Shares have lapsed.  Neither the RSUs nor any interest or right therein shall be liable for the debts, contracts or engagements of Participant or his or her successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect, except to the extent that such disposition is permitted by the preceding sentence.

3.3Binding Agreement.  Subject to the limitation on the transferability of the RSUs contained herein, this Agreement will be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors and assigns of the parties hereto.

3.4Adjustments Upon Specified Events.  The Administrator may accelerate payment and vesting of the Restricted Stock Units in such circumstances as it, in its sole discretion, may determine.  In addition, upon the occurrence of certain events relating to the Shares contemplated by Section 13.2 of the Plan (including, without limitation, an extraordinary cash dividend on such Stock), the Administrator shall make such adjustments the 

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Administrator deems appropriate in the number of Restricted Stock Units then outstanding and the number and kind of securities that may be issued in respect of the Restricted Stock Units.  Participant acknowledges that the RSUs are subject to amendment, modification and termination in certain events as provided in this Agreement and under the Plan, including without limitation, under Section 13.2 of the Plan.  

3.5Notices.  Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company in care of the Secretary of the Company at the Company’s principal office, and any notice to be given to Participant shall be addressed to Participant at Participant’s last address reflected on the Company’s records.  By a notice given pursuant to this Section 3.5, either party may hereafter designate a different address for notices to be given to that party.  Any notice shall be deemed duly given when sent via email or when sent by certified mail (return receipt requested) and deposited (with postage prepaid) in a post office or branch post office regularly maintained by the United States Postal Service.

3.6Titles.  Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.

3.7Governing Law.  The laws of the State of California shall govern the interpretation, validity, administration, enforcement and performance of the terms of this Agreement regardless of the law that might be applied under principles of conflicts of laws.

3.8Conformity to Securities Laws.  Participant acknowledges that the Plan and this Agreement are intended to conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and any and all regulations and rules promulgated by the Securities and Exchange Commission thereunder, and state securities laws and regulations.  Notwithstanding anything herein to the contrary, the Plan shall be administered, and the RSUs are granted, only in such a manner as to conform to such laws, rules and regulations.  To the extent permitted by applicable law, the Plan and this Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and regulations.

3.9Amendments, Suspension and Termination.  To the extent permitted by the Plan, this Agreement may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Administrator; provided that, except as may otherwise be provided by the Plan, no amendment, modification, suspension or termination of this Agreement shall adversely affect the RSUs in any material way without the prior written consent of Participant.    

3.10Successors and Assigns.  The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the successors and assigns of the Company.  Subject to the restrictions on transfer herein set forth in Section 3.2 hereof, this Agreement shall be binding upon Participant and his or her heirs, executors, administrators, successors and assigns.

3.11Limitations Applicable to Section 16 Persons.  Notwithstanding any other provision of the Plan or this Agreement, if Participant is subject to Section 16 of the Exchange Act, the Plan, the RSUs and this Agreement shall be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule.  To the extent permitted by applicable law, this Agreement shall be deemed amended to the extent necessary to conform to such applicable exemptive rule.

3.12Entire Agreement.  The Plan, the Grant Notice and this Agreement constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and Participant with respect to the subject matter hereof.

3.13Section 409A.  The RSUs are not intended to constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code (together with any Department of Treasury regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued 

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after the date hereof, “Section 409A”).  However, notwithstanding any other provision of the Plan, the Grant Notice or this Agreement, if at any time the Administrator determines that the RSUs (or any portion thereof) may be subject to Section 409A, the Administrator shall have the right in its sole discretion (without any obligation to do so or to indemnify Participant or any other person for failure to do so) to adopt such amendments to the Plan, the Grant Notice or this Agreement, or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, as the Administrator determines are necessary or appropriate either for the RSUs to be exempt from the application of Section 409A or to comply with the requirements of Section 409A.
3.14Limitation on Participant’s Rights.  Participation in the Plan confers no rights or interests other than as herein provided.  This Agreement creates only a contractual obligation on the part of the Company as to amounts payable and shall not be construed as creating a trust.  Neither the Plan nor any underlying program, in and of itself, has any assets.  Participant shall have only the rights of a general unsecured creditor of the Company with respect to amounts credited and benefits payable, if any, with respect to the RSUs, and rights no greater than the right to receive the Shares as a general unsecured creditor with respect to RSUs, as and when payable hereunder.  

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EXHIBIT B
TO RESTRICTED STOCK UNIT AWARD NOTICE

CONSENT OF SPOUSE

I, ____________________, spouse of ____________________, have read and approve the foregoing On Assignment, Inc. Restricted Stock Unit Award Agreement (the “Agreement”).  In consideration of issuing to my spouse the shares of the common stock of On Assignment, Inc. set forth in the Agreement, I hereby appoint my spouse as my attorney-in-fact in respect to the exercise of any rights under the Agreement and agree to be bound by the provisions of the Agreement insofar as I may have any rights in said Agreement or any shares of the common stock of On Assignment, Inc. issued pursuant thereto under the community property laws or similar laws relating to marital prop-erty in effect in the state of our residence as of the date of the signing of the foregoing Agreement.
Dated: ________________________        
Signature of Spouse

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