Document:

Amendment No. 3,Consent and joinder to Amended and Restated Loan Security Agree.

 AMENDMENT NUMBER 3, 
 CONSENT AND JOINDER TO 
 AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT 
  
 THIS AMENDMENT NUMBER 3, CONSENT AND JOINDER TO AMENDED AND RESTATED LOAN
AND SECURITY AGREEMENT (this “Amendment”), dated as of March 2, 2004, is entered into by HUDSON HIGHLAND GROUP, INC., a Delaware corporation (“Parent”), and each of Parent’s Subsidiaries identified on the
signature pages hereof (such Subsidiaries, together with Parent, are referred to hereinafter each individually as a “Borrower”, and individually and collectively, jointly and severally, as “Borrowers”), WELLS FARGO FOOTHILL,
INC. (formerly known as FOOTHILL CAPITAL CORPORATION), a California corporation, as the arranger and administrative agent for the Lenders (“Agent”), and the lenders identified on the signature pages hereof (such lenders, together with
their respective successors and assigns, are referred to hereinafter each individually as a “Lender” and collectively as the “Lenders”), in light of the following: 
  
 W I T N E
S S E T H 
  
 WHEREAS, Borrowers, Agent and Lenders are parties to that certain Amended and Restated Loan and Security Agreement, dated as of June 25, 2003 (as amended,
restated, supplemented, or modified from time to time, the “Loan Agreement”); and 
  
 WHEREAS, Parent has advised Agent and Lenders that it has participated or intends to participate in the organization of and intends to invest in Hudson Highland Center for High Performance, LLC, a Delaware limited
liability company (“HH CfHP”) and will hold directly not less than eighty percent (80%) of the membership interests issued by HH CfHP, making HH CfHP a Subsidiary of Parent; and 
  
 WHEREAS, Borrowers have requested that Agent and Lenders consent to the establishment of and investment in HH CfHP; and

  
 WHEREAS, Borrowers have requested that the Loan Agreement be
amended to modify certain terms more fully set forth hereinbelow; and 
  
 WHEREAS, subject to the satisfaction of the conditions set forth herein, Agent and Lenders are willing to so consent to the amendment of the Loan Agreement and the establishment of and investment in HH CfHP and to waive the violations
described herein, on the terms set forth herein; 
  
 NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
  
 1. DEFINITIONS Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to them in the Loan
Agreement, as amended hereby. 
  
 2. AMENDMENTS TO LOAN
AGREEMENT 
  
 (a) Section 1.1 of the Loan
Agreement is hereby amended by adding the following defined terms in proper alphabetical order or amending and restating the following definitions in their entirety, as the case may be: 
  
 “Applicable Prepayment Premium” means, as of any date of determination, an amount equal to (a) during the
period from and after the date of the execution and delivery of this Agreement up to the date immediately preceding the first anniversary of the Closing Date, 3% times the Maximum Revolver Amount in effect at that date, (b) during the period from
and including the date that is the first anniversary of the Closing Date up to the date immediately preceding the second anniversary of the Closing Date, 2% times the Maximum Revolver Amount in effect at that date, and (c) at all times thereafter,
1% times the Maximum Revolver Amount in effect at that date; provided, however, that if the outstanding principal balance of Advances is prepaid and the Commitments are terminated with (i) the proceeds and as a result of a private placement
of subordinated debt, or an equity offering, or a sale of all or substantially all of the assets or stock of any Borrower, then the Applicable 

 
Prepayment Premium shall be an amount equal to (a) during the period from and after the date of the execution and delivery of this Agreement up to the date
immediately preceding the first anniversary of the Closing Date, .75% times the Maximum Revolver Amount in effect at that date, (b) during the period from and including the date that is the first anniversary of the Closing Date up to the date
immediately preceding the second anniversary of the Closing Date, .5% times the Maximum Revolver Amount in effect at that date, and (c) at all times thereafter, .25% times the Maximum Revolver Amount in effect at that date; or (ii) the proceeds of a
refinancing made available to Borrowers by a commercial banking unit of Wells Fargo, then the Applicable Prepayment Premium shall be an amount equal to 0% times the Maximum Revolver Amount on the date immediately prior to the date of determination.
Notwithstanding anything to the contrary set forth herein, HH Australia may refinance its Obligations to Lender Group at any time upon 30 days prior written notice to Agent without incurring the Applicable Prepayment Premium, provided that
the terms of such refinancing of HH Australia’s Obligations shall be on terms and conditions satisfactory to Agent in its Permitted Discretion.” 
  
 “Amendment Number 3 Effective Date” means March 2, 2004. 
  
 “Change of Control” means (a) any “person” or “group” (within the meaning of Sections
13(d) and 14(d) of the Exchange Act) becomes the beneficial owner (as defined in Rule 13d 3 under the Exchange Act), directly or indirectly, of 25%, or more, of the Stock of Parent having the right to vote for the election of members of the Board of
Directors, or (b) a majority of the members of the Board of Directors do not constitute Continuing Directors, or (c) any Borrower ceases to directly or indirectly own and control 100% of the outstanding capital Stock of each of its Subsidiaries
extant as of the Closing Date, or (d) Parent ceases to directly own and control 80% of the outstanding equity interests of HH CfHP. 
  
 “HH CfHP” means Hudson Highland Center for High Performance, LLC, a Delaware limited liability company. 
  
 “HH CfHP LLCA” means that certain Limited Liability Company
Agreement by and among the members of HH CfHP dated as of March 2, 2004 as in effect on the Amendment Number 3 Effective Date. 
  
 “HH CfHP Put Right” means the “Put Right” under and as defined in the HH CfHP LLCA. 
  
 “HH CfHP Repurchase Right” means the “Repurchase
Right” under and as defined in the HH CfHP LLCA. 
  
 “HH CfHP Tax Distribution” means, for any fiscal quarter of HH CfHP, a distribution to holders of equity interests of HH CfHP in an aggregate amount equal to the combined federal, state, and local income tax liability
attributable to such holders in respect of taxable income of HH CfHP for such fiscal quarter, calculated by using the highest maximum combined marginal federal, state and local income tax rates to which any holder, or any direct or indirect equity
holder of a holder that is a flow-through entity, may be subject and taking into account the deductibility of state income tax for federal income tax purposes.” 
  
 (b) The first sentence of Section 3.4 of the Loan Agreement is hereby amended and restated in its entirety as
follows: 
  
 “This Agreement shall become effective upon the
execution and delivery hereof by Borrowers, Agent, and the Lenders and shall continue in full force and effect for a term ending on March 31, 2007 (the “Maturity Date”).” 
  
 (c) The first sentence of Section 5.23 of the Loan Agreement is hereby amended and restated in its entirety as
follows: 
  
 “Parent is the direct and beneficial owner or
indirect owner and holder of all of the issued and outstanding Stock of the other Borrowers and of all Guarantors other than HH CfHP, and is the direct owner and holder of not less than 80% of the issued and outstanding equity interests of HH
CfHP.” 
  

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 (d) Section 7.11 of the Loan Agreement is hereby amended and restated in its entirety as follows:

  
 “7.11 Distributions. Other than distributions or
declaration and payment of dividends by a Borrower to another Borrower or by a Subsidiary to a Borrower or a Guarantor or HH CfHP Tax Distributions or payments permitted under Section 7.22, make any distribution or declare or pay any
dividends (in cash or other property, other than common Stock) on, or purchase, acquire, redeem, or retire any of any Borrower’s Stock, of any class, whether now or hereafter outstanding.” 
  
 (e) Section 7.20(a)(i) of the Loan Agreement is hereby amended and
restated in its entirety as follows: 
  
 “(i) Minimum
Adjusted EBITDA. Adjusted EBITDA, measured on a month end or quarter-end basis as set forth below, of not less than the required amount set forth in the following table (in thousands) for the applicable month set forth opposite thereto:

  

									
	 Applicable
 Month

	  	 Applicable
Amount
 2003

	 	 	 Applicable
Amount
 2004

	 
	 January
	  	 	NA	 	 	$	(44,000	)
	 February
	  	 	NA	 	 	$	(50,000	)
	 March
	  	 	NA	 	 	$	(48,500	)
	 April
	  	$	(7,425	)	 	$	(47,000	)
	 May
	  	$	(11,547	)	 	$	(45,000	)
	 June
	  	$	(11,000	)	 	$	(35,500	)
	 July
	  	$	(21,720	)	 	$	(31,000	)
	 August
	  	$	(28,519	)	 	$	(27,500	)
	 September
	  	$	(25,121	)	 	$	(25,500	)
	 October
	  	$	(28,721	)	 	$	(19,000	)
	 November
	  	$	(30,990	)	 	$	(11,000	)
	 December
	  	$	(33,554	)	 	$	(8,000	)

  
 Adjusted EBITDA shall be determined:
(a) from the Closing Date until the date of determination for the first twelve calendar months occurring after the Closing Date, on a trailing basis for the number of full calendar months elapsed since the Closing Date, and (b) thereafter on a
trailing twelve-month basis. Prior to the first month-end occurring on or after the Activation Date, Adjusted EBITDA shall be measured (x) on a month-end basis at all times that the Account Report Base is less than $20,000,000 and (y) on a
quarter-end basis at all other times. From and after the first month-end occurring on or after the Activation Date, Adjusted EBITDA shall be measured (x) on a month-end basis at all times that the Account Report Base is less than $30,000,000 and (y)
on a quarter-end basis at all other times. Agent shall establish required minimum amounts for periods ending after December 31, 2004 on such basis as Agent may determine in its Permitted Discretion, consistent with methods employed to establish
minimum amounts for prior periods, but in no event shall required minimum Adjusted EBITDA amounts for such later periods be less than the amounts set forth above for corresponding periods in 2004.” 
  
 (f) Section 7.20(b)(i) of the Loan Agreement is hereby amended and
restated in its entirety as follows: 
  
 “(i) Capital
Expenditures. Capital expenditures in any fiscal year in excess of (x) $8,800,000 for Borrowers’ fiscal 2003, (y) $11,000,000 for Borrowers’ fiscal 2004, and (z) such required maximum amounts for fiscal years occurring after
Borrowers’ fiscal 2004 as Agent may determine in its Permitted Discretion, consistent with methods employed to establish maximum amounts for prior fiscal years. So long as, as of the end of any fiscal year of Borrowers, no Event of Default then
exists or has occurred and is continuing, the amount of capital expenditures permitted in such fiscal year which remains unused may be added to the permitted amount of capital expenditures in the immediately following fiscal year. “ 

 

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 (g) The following provision is inserted into the Loan Agreement in the appropriate position as Section
7.22: 
  
 “7.22 HH CfHP Put and Repurchase
Rights. Directly or indirectly purchase or otherwise acquire any additional equity interests in HH CfHP upon the exercise of an HH CfHP Put Right or an HH CfHP Repurchase Right unless, immediately prior to and upon giving effect to any such
purchase or acquisition, Borrowers shall have Availability of not less than $10,000,000.” 
  
 (h) Schedule 5.8(c) of the Loan Agreement is hereby amended and restated in its entirety in the form of Schedule 5.8(c) attached to this Amendment. 
  
 3. CONSENT. 
  
 At the request of Borrowers and notwithstanding any prohibition under
Section 7.10 of the Loan Agreement or any other provision of the Loan Documents to the contrary, Lenders hereby consent to the establishment of HH CfHP as a Subsidiary of Parent, subject to the terms and conditions of this Amendment. It is
expressly understood, acknowledged, and agreed that the membership interests of HH CfHP held by Parent are items of Collateral subject to the applicable provisions of the Loan Agreement and the Stock Pledge Agreement. 
  
 4. JOINDER. 
  
 (a) HH CfHP is hereby added as an additional Guarantor under and party to
the Guaranty dated June 25, 2003 executed by the Domestic Guarantors and delivered to Agent (the “US Guaranty”). All references to “Guarantor” or “Guarantors” in the US Guaranty shall hereafter be deemed to include HH
CfHP, provided that the representations made in Section 12 of the US Guaranty with respect to HH CfHP shall be deemed to read as follows: 
  
 “12. Existence, Power and Authority. Guarantor is a limited liability company duly organized and in good standing under the
laws of its state or other jurisdiction of organization and is duly qualified as a foreign limited liability company and in good standing in all states or other jurisdictions where the nature and extent of the business transacted by it or the
ownership of assets makes such qualification necessary, except for those jurisdictions in which the failure to so qualify would not have a material adverse effect on the financial condition, results of operation or businesses of Guarantor or the
rights of Agent and Lenders hereunder or under any of the other Loan Documents. The execution, delivery and performance of this Guaranty are within the organizational powers of Guarantor, have been duly authorized and are not in contravention of law
or the terms of the operating agreement or other organizational documentation of Guarantor, or any indenture, agreement or undertaking to which Guarantor is a party or by which Guarantor or its property are bound. This Guaranty constitutes the
legal, valid and binding obligation of Guarantor enforceable in accordance with its terms, except to the extent enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to
or limiting creditors’ rights generally.” 
  
 HH CfHP hereby makes,
adopts, ratifies, and affirms to Agent each of the representations and warranties set forth in Section 12 of the US Guaranty, as modified above, as of the date of this Amendment with respect to HH CfHP as though such representations and
warranties were fully set forth herein. 
  
 (b) HH CfHP is hereby
added as an additional Guarantor under and party to the General Security Agreement dated June 25, 2003 executed by the Domestic Guarantors and delivered to Agent (the “US Security Agreement”). All references to “Guarantor” or
“Guarantors” in the US Security Agreement shall hereafter be deemed to include HH CfHP. 
  
 (c) HH CfHP hereby adopts the US Guaranty and the US Security Agreement (collectively, the “Guarantor Documents”) and assumes in full and
acknowledges that it is, jointly and severally with the other Domestic Guarantors, liable for the payment, discharge, satisfaction and performance of all Guarantied Obligations under 

  

 4 

 
and as defined in the US Guaranty and all obligations of a Guarantor under the Security Agreement as if it were an original signatory to each Guarantor
Document. Without limiting the generality of the foregoing, in order to secure the prompt payment and performance of the Guarantied Obligations, HH CfHP hereby grants to Agent, for the ratable benefit of Lenders, a continuing security interest in, a
lien upon, and a right of set off against, and hereby assigns to Agent, for the ratable benefit of Lenders as security, all Collateral (as defined in the US Security Agreement) owned by HH CfHP (the “HH CfHP Collateral”), whether now owned
or existing or hereafter acquired or arising and wherever located, in accordance with the terms of the US Security Agreement. 
  
 (d) HH CfHP hereby makes, adopts, ratifies, and affirms to Agent each of the representations and warranties set forth in Section 4 of the US
Security Agreement as of the date of this Amendment with respect to HH CfHP as though such representations and warranties were fully set forth herein. For purposes of Section 4.3 of the US Security Agreement and Schedule 4.3 to the US
Security Agreement, the chief executive office of HH CfHP and location of HH CfHP Collateral is: 
  
 225 West Wacker Drive 
 Suite 2100 
 Chicago, Illinois 60606 
  
 5. ACKNOWLEDGMENT. 
  
 Each Borrower expressly acknowledges and agrees that the execution and delivery of this Amendment by HH CfHP, the joinder of HH CfHP to the Guarantor
Documents, the adoption and assumption by HH CfHP of the liabilities and obligations of a Guarantor under and in accordance with the terms of the Guarantor Documents, and the consummation of the transactions contemplated hereunder and thereunder do
not, shall not, and shall not be deemed to modify, limit, or otherwise in any way affect any liability or obligation of any Borrower to Agent or any Lender under or in connection with any Loan Document to which any such Borrower is a party or any
grant of a lien or security interest thereunder. 
  
 6.
CONDITIONS PRECEDENT TO THIS AMENDMENT. The satisfaction of each of the following shall constitute conditions precedent to the effectiveness of this Amendment and each and every provision hereof: 
  
 (a) The representations and warranties in the Loan Agreement and the other
Loan Documents shall be true and correct in all respects on and as of the date hereof, as though made on such date (except to the extent that such representations and warranties relate solely to an earlier date); 
  
 (b) Agent shall have received a certificate from the Secretary or Assistant
Secretary of HH CfHP or one of its members attesting to the resolutions of HH CfHP’s members authorizing its execution, delivery, and performance of this Amendment, the Guarantor Documents, and any other Loan Documents to which HH CfHP is or is
to become a party and authorizing specific officers of HH CfHP (or one of HH CfHP’s members, as appropriate) to execute the same; 
  
 (c) Agent shall have received copies of HH CfHP’s Governing Documents, as amended, modified, or supplemented to the date of this Amendment (the
“Effective Date”), certified by the Secretary or Assistant Secretary of HH CfHP (or one of HH CfHP’s members, as appropriate); 
  
 (d) Agent shall have received a certificate of status with respect to HH CfHP, dated within 15 days of the Effective Date, such certificate to be issued
by the appropriate officer of the jurisdiction of organization of HH CfHP, which certificate shall indicate that HH CfHP is in good standing in such jurisdiction; 
  
 (e) Agent shall have received certificates of status with respect to HH CfHP, each dated within 30 days of the date of this
Amendment, such certificates to be issued by the appropriate officers of the jurisdictions (other than the jurisdiction of organization of HH CfHP) in which its failure to be duly qualified or licensed would 

  

 5 

 
constitute a Material Adverse Change, which certificates shall indicate that HH CfHP is in good standing in such jurisdictions, provided that if any
such certificate is not available from the issuing jurisdiction on the date of this Amendment, Agent shall have received on such date evidence satisfactory to Agent to the effect that HH CfHP has been qualified or licensed in such jurisdiction and
Agent shall receive such certificate promptly after it becomes available from such issuing jurisdiction; 
  
 (f) Agent shall have received such other agreements, instruments and documents as Agent may require to record and/or perfect security interests in the
membership interests of HH CfHP, including, without limitation, all certificates, if any exist, evidencing the membership interests of HH CfHP together with appropriate powers endorsed in blank; 
  
 (g) Agent shall have received a letter duly executed by HH CfHP authorizing
Agent to file appropriate Uniform Commercial Code financing statements without the signature of HH CfHP in such office or offices as may be necessary or, in the opinion of Agent, desirable to perfect the security interests in HH CfHP Collateral
purported to be created by the Loan Documents and Agent shall have filed such financing statements; 
  
 (h) Agent shall have received an intercompany subordination agreement in form and substance satisfactory to Agent, executed by Parent as junior creditor
and HH CfHP as debtor, which agreement shall be deemed an Intercompany Subordination Agreement for all purposes under the Loan Agreement provided that no Borrower or Guarantor other than Parent shall make loans to HH CfHP and HH CfHP shall
not seek or accept loans from any Affiliate of HH CfHP other than Parent; 
  
 (i) Agent shall have received an opinion of counsel to HH CfHP pertaining to such matters as Agent may determine, in form and substance satisfactory to Agent; 
  
 (j) No Default or Event of Default shall have occurred and be continuing on
the date hereof or as of the date of the effectiveness of this Amendment; and 
  
 (k) No injunction, writ, restraining order, or other order of any nature prohibiting, directly or indirectly, the consummation of the transactions contemplated herein shall have been issued and remain in force by any
Governmental Authority against any Borrower, any Guarantor, Agent, or any Lender. 
  
 7. CONDITION SUBSEQUENT TO THIS AMENDMENT. Agent shall receive the reaffirmation and consent of each Guarantor other than HH CfHP, in the form of Exhibit A attached hereto, duly
executed and delivered by an authorized official of such Guarantor, on or before (a) April 1, 2004 with respect to Guarantors organized under the laws of Belgium, France, and the Nethlerlands, and (b) March 15, 2004 with respect to all other
Guarantors. It is expressly acknowledged and agreed that the failure to deliver such fully executed reaffirmation and consent by such dates shall terminate the effectiveness of this Amendment and of all the terms and conditions hereof. 

 
 8. CONSTRUCTION. THIS AMENDMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN THE STATE OF NEW YORK. 
  
 9. ENTIRE AMENDMENT; EFFECT OF AMENDMENT. This Amendment, and the terms and provisions hereof, constitute the entire agreement
among the parties pertaining to the subject matter hereof and supersede any and all prior or contemporaneous amendments relating to the subject matter hereof. Except for the amendments to the Loan Agreement expressly set forth in Section 2
hereof and the amendments to the Guarantor Documents set forth in Section 5 hereof, the Loan Agreement and other Loan Documents shall remain unchanged and in full force and effect. To the extent any terms or provisions of this Amendment
conflict with those of the Loan Agreement or other Loan Documents, the terms and provisions of this Amendment shall control. This Amendment is a Loan Document. 
  

 6 

 10. COUNTERPARTS; TELEFACSIMILE EXECUTION. This Amendment may be executed in
any number of counterparts, all of which taken together shall constitute one and the same instrument and any of the parties hereto may execute this Amendment by signing any such counterpart. Delivery of an executed counterpart of this Amendment by
telefacsimile shall be equally as effective as delivery of an original executed counterpart of this Amendment. Any party delivering an executed counterpart of this Amendment by telefacsimile also shall promptly deliver an original executed
counterpart of this Amendment, but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Amendment. 
  
 11. MISCELLANEOUS 
  
 (a) Upon the effectiveness of this Amendment, each reference in the Loan Agreement to “this Agreement”, “hereunder”,
“herein”, “hereof” or words of like import referring to the Loan Agreement shall mean and refer to the Loan Agreement as amended by this Amendment. 
  
 (b) Upon the effectiveness of this Amendment, each reference in the Loan Documents to the “Loan Agreement”,
“thereunder”, “therein”, “thereof” or words of like import referring to the Loan Agreement shall mean and refer to the Loan Agreement as amended by this Amendment. 
  
 [SIGNATURE PAGES FOLLOW] 
  

 7 

 IN WITNESS WHEREOF, the parties have caused this Amendment to be executed and delivered as of the date
first written above. 
  

			
	 HUDSON HIGHLAND GROUP, INC., 
 as Parent and a Borrower Parent and on behalf of
 Guarantors

		
	 By:
	 	  

	 Title:
	 	  

	
	 HUDSON GLOBAL RESOURCES AMERICA, INC., fka HUDSON HIGHLAND GROUP GLOBAL RESOURCES AMERICA, INC.,
 as a Borrower

		
	 By:
	 	  

	 Title:
	 	  

	
	 HUDSON GLOBAL RESOURCES
 HOLDINGS,
INC., fka HUDSON HIGHLAND GROUP GLOBAL RESOURCES HOLDINGS, INC., as a Borrower

		
	 By:
	 	  

	 Title:
	 	  

	
	HUDSON GLOBAL RESOURCES MANAGMENT, INC., fka HUDSON HIGHLAND GROUP GLOBAL RESOURCES MANAGEMENT, INC., as a Borrower
		
	 By:
	 	  

	 Title:
	 	  

	
	HUDSON GLOBAL RESOURCES LIMITED, as a Borrower
		
	 By:
	 	  

	 Title:
	 	  

	
	HIGHLAND PARTNERS LIMITED, as a Borrower
		
	 By:
	 	  

	 Title:
	 	  

  

 8 

			
	
	 HUDSON GLOBAL RESOURCES (AUST)
 PTY
LTD., as a Borrower

		
	 By:
	 	  

	 Title:
	 	  

	
	 HUDSON TRADE & INDUSTRIAL SERVICES
 PTY LTD., as a Borrower

		
	 By:
	 	  

	 Title:
	 	  

	
	 HUDSON TRADE & INDUSTRIAL
 SOLUTIONS PTY LTD., as a Borrower

		
	 By:
	 	  

	 Title:
	 	  

	
	HUDSON GLOBAL RESOURCES (NEWCASTLE) PTY LTD., as a Borrower
		
	 By:
	 	  

	 Title:
	 	  

	
	 HIGHLAND PARTNERS (AUST) PTY LTD.,
 as a Borrower

		
	 By:
	 	  

	 Title:
	 	  

	
	HUDSON HIGHLAND GROUP SEARCH, INC., as a Borrower
		
	 By:
	 	  

	 Title:
	 	  

	
	JAMES BOTRIE AND ASSOCIATES INC., as a Borrower
		
	 By:
	 	  

	 Title:
	 	  

	
	HIGHLAND PARTNERS CO (CANADA), fka 3057313 NOVA SCOTIA COMPANY, as a Borrower
		
	 By:
	 	  

	 Title:
	 	  

  

 9 

			
	
	HUDSON HIGHLAND CENTER FOR HIGH PERFORMANCE, LLC, as a Guarantor
		
	 By:
	 	  

	 Title:
	 	  

	
	WELLS FARGO FOOTHILL, INC., as Agent and as a Lender
		
	 By:
	 	  

	 Title:
	 	  

  

 10 

 EXHIBIT A 
  
 REAFFIRMATION AND CONSENT 
  
 All capitalized terms used herein but not otherwise defined herein shall have the meanings ascribed to them in that certain Amended and Restated Loan and
Security Agreement by and among HUDSON HIGHLAND GROUP, INC., a Delaware corporation (“Parent”), and each of Parent’s Subsidiaries identified on the signature pages thereto (such Subsidiaries, together with Parent, are referred
to hereinafter each individually as a “Borrower”, and individually and collectively, jointly and severally, as “Borrowers”), WELLS FARGO FOOTHILL, INC. (formerly known as FOOTHILL CAPITAL CORPORATION), a California
corporation, as the arranger and administrative agent for the Lenders (“Agent”), and the lenders identified on the signature pages thereto (such lenders, together with their respective successors and assigns, are referred to hereinafter
each individually as a “Lender” and collectively as the “Lenders”), dated as of June 25, 2003 (as amended, restated, supplemented or otherwise modified, the “Loan Agreement”), or in Amendment Number 3, Consent and
Joinder to Amended and Restated Loan and Security Agreement, dated as of March 2, 2004 (the “Amendment”), among Borrowers, Agent and Lenders. The undersigned each hereby (a) represents and warrants to Agent and Lenders that the execution,
delivery, and performance of this Reaffirmation and Consent are within its powers, have been duly authorized by all necessary action, and are not in contravention of any law, rule, or regulation, or any order, judgment, decree, writ, injunction, or
award of any arbitrator, court, or governmental authority, or of the terms of its charter or bylaws, or of any contract or undertaking to which it is a party or by which any of its properties may be bound or affected; (b) consents to the
transactions contemplated by the Amendment; (c) acknowledges and reaffirms its obligations owing to Agent and Lenders under any Loan Documents to which it is a party; and (d) agrees that each of the Loan Documents to which it is a party is and shall
remain in full force and effect. Although each of the undersigned has been informed of the matters set forth herein and has acknowledged and agreed to same, it understands that Agent and Lenders have no obligations to inform it of such matters in
the future or to seek its acknowledgment or agreement to future amendments, and nothing herein shall create such a duty. Delivery of an executed counterpart of this Reaffirmation and Consent by telefacsimile shall be equally as effective as delivery
of an original executed counterpart of this Reaffirmation and Consent. Any party delivering an executed counterpart of this Reaffirmation and Consent by telefacsimile also shall deliver an original executed counterpart of this Reaffirmation and
Consent but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Reaffirmation and Consent. This Reaffirmation and Consent shall be governed by the laws of the State of New
York. 
  
 [SIGNATURE PAGES FOLLOW] 
  

 11 

 IN WITNESS WHEREOF, the undersigned have each caused this Reaffirmation and Consent to be executed as of
the date of the Amendment. 
  

			
	 PEOPLE.COM CONSULTANTS, INC. PEOPLE.COM TECHNOLOGY PARTNERS, INC.
 HUDSON HIGHLAND GROUP HOLDINGS INTERNATIONAL, INC.
 CORNELL TECHNICAL SERVICES, INC.
 HUDSON HIGHLAND (APAC) PTY LIMITED
 MORGAN & BANKS HOLDINGS
AUSTRALASIA PTY LIMITED
 HIGHLAND HOLDCO (AUST) PTY LTD. MORGAN & BANKS MANAGEMENT SERVICES PTY LIMITED
 HUDSON GLOBAL RESOURCES (NZ) LTD.
 M&B HOLDCO NZ

HIGHLAND HOLDCO (NZ)
 HIGHLAND PARTNERS (NZ)
LIMITED

		
	 By:
	 	  

	 Title:
	 	  

	
	HIGHLAND PARTNERS SA/NV
		
	 By:
	 	  

	 Title:
	 	  

	
	DE WITTE & MOREL GLOBAL RESOURCES NV/SA
		
	 By:
	 	  

	 Title:
	 	  

	
	HIGHLAND PARTNERS SARL
		
	 By:
	 	  

	 Title:
	 	  

	
	HUDSON GLOBAL RESOURCES SAS
		
	 By:
	 	  

	 Title:
	 	  

	
	HUDSON GROUP HOLDINGS B.V, fka HIGHLAND PARTNERS HOLDING B.V.
		
	 By:
	 	  

	 Title:
	 	  

  

 12 

			
	
	HUDSON GLOBAL RESOURCES B.V., fka HIGHLAND PARTNERS B.V.
		
	 By:
	 	  

	 Title:
	 	  

	
	HUDSON HUMAN CAPITAL SOLUTIONS B.V., fka HUDSON GROUP HOLDINGS B.V.
		
	 By:
	 	  

	 Title:
	 	  

  

 13Employment Agreement- Richard Pehlke

 Exhibit 10.4 
  
 TMP WORLDWIDE INC. 
 622 THIRD AVENUE

 NEW YORK, NY 10017 
  
 March 7, 2003 
  
 Mr. Richard W. Pehlke 
 850 Raintree Drive 
 Naperville, Illinois 60540 
  
 Dear Rich:

  
 This will confirm our understanding with respect to your
taking the position of Executive Vice President and Chief Financial Officer of the Search and Selection Operations (the “Specified Operations”) of TMP Worldwide Inc. (“TMP”) in accordance with the terms of this agreement. You and
the Company hereby agree as follows: 
  
 1. The Company agrees to
employ you and you agree to be employed by the Company as Executive Vice President and Chief Financial Officer of the Specified Operations, with such duties and responsibilities with respect to the Company and its affiliates as the Company’s
Chief Executive Officer of the Specified Operations (“CEO”) or such other person from time to time designated by the CEO to deal with matters related to this agreement (the “Designee”) shall reasonably direct. You agree to devote
your best efforts, energies, abilities and full business time, skill and attention to your duties. You agree to perform the duties and responsibilities assigned to you to the best of your ability, in a diligent, trustworthy, businesslike and
efficient manner for the purpose of advancing the business of the Company and to adhere to any and all of the employment policies of the Company. Your role in this position commenced on February 24, 2003. [As you are aware, your role will require
substantial amounts of travel.] 
  
 2. In consideration for your
services and other agreements hereunder, during your employment the Company shall (a) pay you a base salary of $350,000 per year (prorated for periods of less than a full year) in regular installments in accordance with the Company’s payroll
practice for salaried employees, (b) provide you with medical, dental and disability coverage, if any, and life insurance and other benefit plan eligibility, if any, comparable to that regularly provided to other senior management in accordance with
the Company’s policies, (c) provide you with four (4) weeks vacation per year in accordance with the Company’s policies (prorated for periods of less than a full year) and (d) with respect to employment in calendar year 2003 and any
calendar year thereafter, provide you with annual performance based bonuses of up to $600,000 on the basis of satisfaction of such performance goals as are established by the Compensation Committee of the Board of Directors of the Company within 90
days of the commencement of the applicable calendar year period. In addition, the Company will reimburse you for up to $25,000 in expenses you incur for personal financial planning for which you 
  

 Mr. Richard W. Pehlke 
 March 7, 2003 
 Page 2 
  
 submit receipts (or other reasonable evidence of payment of
such expenses) on or prior to February 24, 2006. 
  
 3. You may
terminate this agreement at any time upon 60 days’ prior written notice. The Company may terminate this agreement at any time upon written notice. This agreement shall also terminate automatically in the event you should die or, in the
reasonable determination of the Company, become unable to perform by reason of physical or mental incompetency your obligations hereunder for a period of 120 days in any 365 day period. It is understood and agreed that in the event that this
agreement is terminated by the Company in accordance with the second sentence of this Section 3 either (A) as a result of the non-occurrence of the Disposition (as defined in Section 6 below) or (B) following the Disposition other than for Cause (as
defined below), then subject to (i) your execution and delivery of the Company’s then current form of separation agreement and general release applicable to similarly situated employees and (ii) the expiration of any rescission period provided
thereby (without the rescission having been exercised), you shall, as your sole and exclusive remedy, be entitled to (w) receive as severance your then applicable base salary hereunder for a period of twelve (12) months following such termination,
payable in regular installments in accordance with the Company’s applicable payroll practice for salaried employees, plus, solely in the event such termination is following the Disposition other than for Cause (and not as a result of the
non-occurrence of the Disposition), an assumed bonus amount equal to the greater of (1) $150,000 and (2) fifty percent (50%) of the largest single calendar year bonus received by you from the Company with respect to any of the five (5) full calendar
years preceding the date of such termination, payable over a period of twelve (12) months in regular installments in accordance with the Company’s applicable payroll practice for salaried employees, (x) for a period of twelve (12) months
following such termination, have the Company make available to you at no cost (and/or pay COBRA premiums on) medical and dental benefits on the same terms and conditions as would have been made available to you had you remained employed by the
Company during such period, (y) for a period of twelve (12) months following the end of the period set forth in clause (x) of this sentence, have the Company make available to you at no cost basic medical and dental benefits comparable to those (and
on substantially similar terms and conditions) that would have been available to you had you remained employed by the Company during such period and (z) following the end of the period set forth in clause (y) of this sentence through December 31,
2008, have the Company make available to you, at your cost and expense, basic medical and dental benefits comparable to those (and on substantially similar terms and conditions, including but not limited to contribution terms) that would have been
available to you had you remained employed by the Company during such period. Except as expressly provided in the preceding sentence, in the event of the termination of this agreement or your employment for any reason, the Company shall have no
further obligations to you hereunder or with respect to your employment from the effective date of termination. “Cause” shall mean the occurrence of any one or more of the following events: (i) your willful failure or gross negligence in
performance of your duties or compliance with the reasonable directions of the CEO or the Designee that remains unremedied for a period of twenty (20) days after the CEO or the Designee has given written notice specifying in reasonable detail your
failure to perform such duties or comply with such directions; (ii) your failure to comply with a material employment policy of or contractual obligation to the Company that remains unremedied for a period of twenty (20) days after the 

 

 2 

 Mr. Richard W. Pehlke 
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 Page 3 
  
 CEO or the Designee has given written notice to you specifying in reasonable detail your
failure to comply; or (iii) your commission of (a) a felony, (b) criminal dishonesty or (c) fraud. For purposes of clarity, it is expressly understood and agreed that any and all changes in the identity of the employer from TMP to one or more of its
subsidiaries, successors-in-interest or assignees as described in Section 6 shall not be deemed a termination of employment by the Company hereunder. You acknowledge that the Company may deduct from amounts payable to you under this agreement any
tax withholdings and payments, if any, required by law to be so deducted. 
  
 4. You acknowledge that you have not relied on any representation not set forth in this agreement. You represent that you are free to enter into this employment arrangement and that you are not bound by any
restrictive covenants or similar provisions restricting the performance of your duties hereunder. You acknowledge that the effectiveness of this agreement is expressly conditioned on your prompt execution and delivery of the
Confidentiality/Non-Solicitation Agreement and Mutual Agreement to Arbitrate Claims in the forms provided by TMP. 
  
 5. If, and only if, during the term of your employment hereunder TMP consummates the Distribution through a spin-off of the bulk of its Selection
operations creating a new and totally separate company (“Newco”) whose shares of common stock commence being publicly traded promptly thereafter (the “Spin-off”), you will be granted options to purchase the Specified Number (as
defined below) of shares of Newco common stock at the Specified Price (as defined below) per share. The “Specified Number” is the number determined by multiplying 375,000 by a fraction, the denominator of which is the minimum number of
shares of common stock of TMP which a TMP shareholder must own on the record date relating to the Spin-off in order to be entitled to at least one whole share of Newco common stock upon consummation of the Spin-off and the numerator of which is the
number of whole shares of Newco common stock to which a TMP shareholder would be entitled by virtue of ownership of such minimum number of shares of common stock of TMP. The “Specified Price” is the closing price of a share of Newco common
stock on the first trading day on or after the consummation of the Spin-off on which shares of Newco common stock are traded on the principal national securities exchange on which Newco common shares are listed or admitted to trading. The options
will vest in [three (3)] equal annual installments commencing on the first anniversary of your first day of employment with the Company, subject to continued employment and all other terms and conditions to be set forth in an option plan and related
option agreement to be provided to you by the Company. 
  
 6. As
you are aware, TMP is contemplating a disposition of one or more of its Search and/or Selection operations through a spin-off or similar transaction (“Disposition”). It is expressly understood and agreed that the rights and obligations of
TMP hereunder may be assigned and delegated by TMP from time to time to one or more of its subsidiaries or to successors-in-interest to or assignees of the bulk of its Selection operations, whether any such successor-in-interest or assignee arises
as a consequence of a spin-off or other transaction or series of transactions. From and after the date, if any, that a successor-in-interest or assignee of the bulk of TMP’s Selection division is not a subsidiary of TMP, the term
“Company” shall mean and be a reference to such successor-in-interest or assignee and TMP shall have no further liabilities for Company obligations hereunder; prior thereto, the term “Company” shall mean and 
  

 3 

 Mr. Richard W. Pehlke 
 March 7, 2003 
 Page 4 
  
 be a reference to TMP. Nothing herein shall be deemed to require TMP to consummate or
endeavor to consummate a Disposition of its Selection division through a spin-off or otherwise. 
  
 7. If, and only if, during the term of your employment hereunder TMP consummates the Spin-off, the Company shall use reasonable efforts to implement a
deferred compensation program that would permit you to defer any portion of your base salary or bonus and invest such deferred amounts in one of three (3) investment options: (1) a money market mutual fund, (2) Newco stock or (3) options on Newco
stock. 
  
 8. All notices, demands or other communications to be
given or delivered under or by reason of this agreement shall be in writing and shall be deemed to have been properly served if delivered personally, by courier, or by certified or registered mail, return receipt requested and first class postage
prepaid, in case of notice to the Company, to the attention of the CEO at the address set forth on the first page of this agreement (in case of notices to TMP, with a copy to Myron Olesnyckyj, TMP Worldwide Inc., 622 Third Avenue, 39th Floor, New
York, NY 10017) and in the case of notices to you to your office or residence address, or such other addresses as the recipient party has specified by prior written notice to the sending party. All such notices and communications shall be deemed
received upon the actual delivery thereof in accordance with the foregoing. 
  
 9. You may not assign or delegate this agreement or any of your rights or obligations hereunder without the prior written consent of the Company. All references in this agreement to practices or policies of the
Company are references to such practices or policies as may be in effect from time to time. This agreement (i) constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes any previous arrangements
relating thereto, as well as any previous arrangements relating to employment between you and any of the Company’s affiliates, including but not limited to any consulting arrangement, (ii) may be signed in counterparts, (iii) shall be governed
by the laws of the State of Illinois (other than the conflicts of laws provisions thereof) and (iv) may not be amended, terminated, extended or waived orally. Please understand that while it is our hope that our relationship will be a long one, your
employment will be on an “at will” basis. Nothing in this letter should be construed as creating any other type of employment relationship. 
  

 4 

 Mr. Richard W. Pehlke 
 March 7, 2003 
 Page 5 
  
 Please sign the additional originally executed
copy of this letter in the space provided for your signature below to indicate your acceptance and agreement with the terms of this letter agreement and return one fully executed original to me. 
  

			
	 Very truly yours,
  
 TMP WORLDWIDE INC.

		
	By:	 	 /s/    Margaretta Noonan        

	 	 	

	 Name:
	 	Margaretta Noonan
	 Title:
	 	Senior Vice President – Global Human Resources

  
 Accepted and agreed: 
  

			
	
	 /s/    Richard W. Pehlke

	 Richard W. Pehlke

  

 5

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