Document:

Exhibit 10.32

 

CERTAIN PORTIONS OF THIS EXHIBIT
HAVE BEEN AFFORDED CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES
EXCHANGE ACT OF 1934. THE OMITTED MATERIALS HAVE BEEN FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION.

 

AMENDMENT NO. 1 TO

DEVELOPMENT, SUPPLY AND SUBCONTRACTING AGREEMENT

 

This Amendment No. 1 to the
Development, Supply and Subcontracting Agreement (the “Agreement”), dated as of
May 30, 2001, by and between American Bank Note Holographics, Inc., a Delaware
corporation (“ABNH”), with its principal place of business at 2 Applegate
Drive, Robbinsville, NJ  08691, and CFC
International, Inc., a Delaware corporation (“CFC”), with its principal place
of business at 500 State Street, Chicago Heights, IL  60411, is entered into as of January 4, 2006.
Capitalized terms used herein and not otherwise defined shall have the meaning
ascribed to such terms in the Agreement.

 

WHEREAS, ABNH and CFC are
parties to the Agreement, under which ABNH currently purchases from CFC, and
CFC sells to ABNH, the HoloMag Foils as described in Schedule A of the
Agreement;

 

WHEREAS, ABNH has created
custom HoloMag images for, and has entered into supply agreements with [*], [*],
[*] and [*] and is negotiating additional potential supply agreements with other
customers; and

 

WHEREAS, ABNH and CFC desire
to amend certain terms of the Agreement.

 

NOW, THEREFORE, the parties
covenant and agree as follows:

 

1.0                                 Section
1 of the Agreement is hereby amended as follows:

 

(i)                                     The
sentence under Section 1(b) that reads “ABNH agrees to remit payment to CFC
within 30 days from receipt of a valid invoice.” shall be labeled and referred
to as Section 1(c).

 

(ii)                                  Section
1(d) shall be deleted and replaced with the following new Section 1(d): “ABNH
agrees to purchase * of its HoloMag Foil from CFC subject to the
satisfaction of the following conditions by CFC on an ongoing basis: (i) CFC is
in compliance with all of its obligations under this Agreement, including but
not limited to, the procedures and specifications set forth in the attached
Amended Schedule A, (ii) the quality of the HoloMag Foil products produced by
CFC is comparable in all material respects to any alternative or competing
products available in the market, and (iii) CFC complies with the reasonable
requests of ABNH or its customers pertaining to modifications in product
features, quality, service, security or delivery as long as such requests are
consistent with industry 

 

*  Confidential

 

 

practice. In the
event that ABNH notifies CFC in writing than CFC is not in compliance with the
conditions and requirements set forth in the foregoing sentence, CFC shall have
a period of 45 days from the date of such notice to cure such non-compliance. If
such non-compliance is not cured within such 45-day period, ABNH shall have the
right, but not the obligation to procure or manufacture the HoloMag Foils or
any component thereof from any other source.”

 

2.0                                 Section
2 of the Agreement is hereby amended as follows:

 

(i)                                     The
second paragraph of paragraph (a) thereof shall be labeled and referred to as
Section 2(b). In the new 2(b), insert on line five after the word “[*]” the
following: “or any security hologram, holographic magnetic stripe or other
security device that competes with any product currently supplied by ABNH to
the aforementioned accounts, including but not limited to HoloMag. [*].”

 

(ii)                                  The
following new sentence shall be added at the end of Section 2(b):  “To the extent there is an inconsistency
between any purchase orders submitted by ABNH and the terms of this Agreement,
the terms of this Agreement shall prevail. CFC represents that its maximum
manufacturing capabilities are [*]. ABNH will not order more than CFC’s maximum
capabilities in any month unless the parties mutually agree to an increased
amount.”

 

3.0                                 Section
3 of the Agreement is hereby amended as follows:

 

Section 3(a) is hereby deleted, and replaced by the
following: “Effective on January 4, 2006 (“Amendment No. 1 Effective Date”),
the Agreement shall renewed for a period of five (5) years (the “Term”), and
shall automatically renew for successive terms of five (5) years unless either
party provides the other Party not less than six (6) months notice of
non-renewal thereof prior to the end of the then current Term.”

 

4.0                                 Section
9 is hereby amended by deleting paragraphs (a) and (b) and replacing it with
the following:

 

(a)                                  if
to ABNH at:

 

American Bank
Note Holographics, Inc.

2 Applegate Drive

Robbinsville, NJ  08691

Attention:  Chief Executive Officer

Telephone:  (609) 632-0800

Facsimile:  (609) 632-0850

 

* Confidential

 

 

with a copy to:

 

Fulbright &
Jaworski L.L.P.

666 Fifth Avenue

New York, NY  10103-3198

Attention:  Paul Jacobs, Esq.

Facsimile:  (212) 318-3400

 

(b)                                 if
to CFC at:

 

500 State
Street

Chicago Heights, IL  60411

Attention:  Dennis Lakomy, Chief
Financial Officer

Facsimile:  (708) 758-3976

 

with a copy to:

 

Holland &
Knight LLP

One Mid America Plaza, Suite 1000

Oakbrook Terrace, IL  60181-4710

Attn:  Carl Neumann, Esq.

Facsimile:  (630) 954-2112

 

5.0                                 A
new Section 18 is hereby added as follows:

 

18.           Schedule B Price Adjustments.

 

[*]

 

All
measurements of the Index will take place on the last published data for the
year end. Any price adjustments will be retroactive to January 1 of the year
following the year applicable to the Annual Index Change.

 

6.0                                 A
new Section 19 is hereby added as follows:

 

19.           ABNH HoloMag facility

 

CFC agrees that
ABNH may build or operate its own HoloMag production facility. After ABNH
commences operations of its facility, ABNH will be entitled to produce its own
HoloMag Foil requirements. After ABNH commences operations of its facility,
ABNH will purchase at least 15% of its total finished HoloMag Foil requirements
from CFC and will not purchase such requirements from a third party, subject to
the satisfaction of the following conditions by CFC on an ongoing basis: (i)
CFC is in compliance with all of its obligations under this Agreement including
but not limited to the procedures and specifications set forth in the attached
Amended Schedule A, (ii) the quality of the HoloMag product, or

 

*Confidential

 

 

ingredients as
applicable, produced by CFC is comparable in all material respects to any
alternative or competing products available in the market, and (iii) CFC complies
with reasonable requests of ABNH or its customers pertaining to modifications
in product features, quality, service, security or delivery as long as such
requests are consistent with industry practice. Subject to the foregoing
conditions, ABNH also intends to purchase other ingredients or materials from
CFC as required in ABNH’s sole discretion. The parties understand that ABNH
does not currently intend to solicit assistance from CFC in the design or
operation of ABNH’s HoloMag facility, but in the event that ABNH requests such
assistance, the parties will negotiate in good faith the terms of an agreement
for such assistance.

 

7.0                                 A
new Section 20 is hereby added as follows:

 

20.           Product Changes

 

If ABNH
requires a change in the product features of specifications that materially
changes the product from what is contemplated under Amended Schedule A, CFC and
ABNH will use their best efforts to cooperate on the required changes. If such
changes in the features or specifications result in an increase in cost to CFC,
then CFC and ABNH will negotiate in good faith an increase in price, which
shall reflect the increase in cost to CFC plus a reasonable margin.

 

8.0                                 A
new Section 21 is hereby added as follows:

 

21.           Insurance

 

CFC shall
procure the following insurance coverage at its own expense with respect to the
manufacture of HoloMag. Such insurance shall be issued by financially
responsible and property licensed insurance carriers rated at least A VIII by
Best’s Rating Guide (or otherwise acceptable to ABNH and its customers) and
with minimum limits as set forth below. Such insurance shall be maintained in
full force and effect for the duration of this Agreement and my renewals
thereof:

 

WORKERS’
COMPENSATION:  Statutory Workers
Compensation as required by applicable law.

 

EMPLOYER’S
LIABILITY with a minimum limit of $1,000,000.

 

COMMERCIAL
GENERAL LIABILITY INSURANCE:  including
PRODUCTS, COMPLETED OPERATIONS including CONTRACTUAL LIABILITY INSURANCE with
the following minimum limits for Bodily Injury and Property Damage on an
Occurrence basis: $1,000,000 per occurrence and $2,000,000 annual aggregate.

 

 

COMMERCIAL
AUTOMOBILE INSURANCE including owned, leased, hired or non-owned autos subject
to minimum limits of $1,000,000 for bodily injury and physical damage.

 

COMMERCIAL
EXCESS/UMBRELLA LIABILITY INSURANCE subject to minimum limits of $5,000,000 for
bodily injury and physical damage.

 

CRIME/FIDELITY
BOND including employee dishonesty, robbery, fraud, theft, forgery, alteration,
mysterious disappearance and destruction. The minimum limit shall be $1,000,000
per loss.

 

PROFESSIONAL
LIABILITY for negligent acts, errors or omissions in connection with the
services provided under this agreement with a minimum limit of $1,000,000 per
occurrence.

 

If any of the
above insurance is written on a claims-made basis, then CTC shall maintain such
insurance for five (5) years after the termination of this Agreement.

 

Without
limiting CFC’s indemnification duties as outlined herein. ABNH and its
designated customers shall be named as an additional insured under the
Commercial General Liability, Commercial Automobile Liability and Commercial
Excess/Umbrella Liability listed above for any claims and losses arising out
of, allegedly arising out of or in any way connected to CFC’s manufacture of
HoloMag under this Amended Agreement. The insurers shall agree that CFC’s
insurance is primary and any insurance maintained by ABNH or its customers
shall be excess and non-contributing to CFC’s insurance.

 

Annually, CFC
shall furnish a certificate, satisfactory to ABNH from each insurance company
evidencing that the above insurance is in force in compliance with the terms of
this insurance section, stating policy numbers, dates and expiration and limits
of liability, and further providing than the insurance will not be canceled or
materially changed until the expiration of at least thirty (30) days after
written notice of such cancellation or change has been mailed to and received
by ABNH. Fulfillment of obligations to procure insurance shall not otherwise
relieve CFC of any liability hereunder or modify CFC’s obligations to indemnify
ABNH. In the event the above insurance requirements are not met, ABNH, may at
its option, purchase such coverage at the expense of CFC.

 

WAIVER OF
SUBROGATION:  CFC agrees to waive
subrogation against ABNH and its customers for any injuries to its employees
arising out of or in any way related to CFC’s manufacture of HoloMag under this
Agreement or for damage or loss to CFC’s personal property. Further, CFC agrees
that it shall ensure that the Workers’ Compensation/Employer’s Liability and
All Risk Replacement Cost (Property) insurers, providing the coverage required
above, agree to waive subrogation, in favor of ABNH and its customers, for any
claims arising out of or in any way connected to CFC’s performance of the
manufacture 

 

 

of HoloMag
under this Agreement or property covered by CFC’s property insurance.

 

9.0                                 Schedule
A of the Agreement is hereby deleted and replaced with the attached Amended
Schedule A.

 

10.0                           Schedule
B of the Agreement is hereby deleted and replaced with the attached Amended
Schedule B an B1. The prices set forth on Amended Schedule B and B1 shall take
effect retroactively to November 1, 2005. Since ABNH has been ordering product
based on the Schedule B prices then in effect, promptly after the execution of
this Agreement, CFC will bill ABNH for the difference in price between Schedule
B and Amended Schedule B for any products ordered by ABNH starting on November
1, 2005 through the effective date of this Agreement.

 

11.0                           Governing
Law. This Amendment shall be governed by and construed and enforced in
accordance with the internal laws of the State of New York, without regard to
principles of conflicts of laws.

 

12.0                           Counterparts.
This Amendment may be executed in counterparts and all counterparts shall
constitute one document, notwithstanding that all the parties may not be
signatories to the same counterpart.

 

13.0                           Entire
Agreement. Except as expressly provided herein, the Agreement shall remain
unchanged and in full force and effect. Both parties are obligated to comply
with all of the terms of the Agreement (including without limitation as amended
by this Amendment) unless specifically waived or modified in writing. The
failure to enforce any specific term of the Agreement does not constitute a
waiver of a breach of the Agreement. [*].

 

[Signature page follows]

 

* Confidential

 

 

 

IN WITNESS WHEREOF, the undersigned have hereby
executed this Amendment as of the date first set forth above.

 

	
   

  	
  AMERICAN BANK NOTE
  HOLOGRAPHICS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth H. Traub

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Kenneth H. Traub

  
	
   

  	
   

  	
  Title:

  	
  President and CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CFC INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Roger Hruby

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Roger Hruby

  
	
   

  	
   

  	
  Title:

  	
  Chairman

  
					

 

 

AMENDED SCHEDULE A

 

PROCEDURES
AND SPECIFICATIONS FOR CFC PRODUCTION OF HOLOMAGTM FOILS

 

In connection with the Development, Supply and
Subcontracting Agreement signed by American Bank Note Holographics, Inc. (“ABNH”)
and CFC International, Inc. (“CFC”) (jointly, the “Parties”) on May 30, 2001,
as amended on January 4, 2006, the schedule below sets forth the material
production procedures, specifications and security procedures for CFC to follow
in the manufacture of the HoloMagTM Foils for ABNH’s requirements.

 

1.             Production Procedures

 

The sequence of steps for the manufacture of the
HoloMagTM Foils is set forth below:

 

(a)                                  [*]

 

(b)                                 [*]

 

(c)                                  [*]

 

(d)                                 [*]

 

(e)                                  [*]

 

(f)                                    [*]

 

(g)                                 [*]

 

(h)                                 [*]

 

(i)                                     [*]

 

(j)                                     [*]

 

2.             Product Specifications

 

The HoloMagTM Foils shall have the following
specifications:

 

(a)                                  [*]

 

(i)                                     [*]

 

(ii)                                  [*]

 

(b)                                 [*]

 

* Confidential

 

 

(i)                                     [*]

 

(ii)                                  [*]

 

(iii)                               [*]

 

(iv)                              [*]

 

(c)                                  [*]

 

(i)                                     [*]

 

(ii)                                  [*]

 

(iii)                               [*]

 

(d)                                 [*]

 

(i)                                     [*]

 

(ii)                                  [*]

 

(iii)                               [*]

 

(iv)                              [*]

 

(v)                                 [*]

 

(vi)                              [*]

 

3.             Security Procedures

 

(a)                                  CFC
will comply with all of the procedures set forth below as well as the requests
of ABNH’s customers as long as those requests are consistent with the normal
and customary security requirements for such customers’ secure vendors and are
consistent with all Federal, State and local requirements.[*]:

 

(i)                                     [*]

 

(ii)                                  ABNH
and its customers will conduct periodic security inspections of CFC’s
facilities to confirm that CFC’s facility complies with ABNH security
requirements as set forth herein (the “Security Inspection”).

 

(iii)                               [*]

 

* Confidential

 

2

 

(iv)                              [*]

 

(v)                                 All
corrective actions must be made by CFC prior to running any further security
jobs for ABNH.

 

(b)                                 [*]

 

[*]:

 

(i)                                     [*]

 

(ii)                                  

 

(iii)                               [*]

 

(iv)          [*]

 

(c)                                  Physical
Security Procedures

 

(i)                                     High
Security Areas. Any area of CFC’s facility, which temporarily or permanently
stores any HoloMagTM Foils or in which work on any HoloMag Foils may be
performed, is a high security area (“CFC High Security Area”). In every CFC
High Security Area, CFC must maintain a level of physical security that
includes:

 

[*]

 

(ii)                                  [*]

 

(iii)                               [*]

 

(iv)          [*]

 

(v)           [*]

 

(vi)          [*]

 

(d)                                 Obligations
Following Initial Security Certification

 

(i)                                     CFC
must be in compliance with industry standards at all times and must notify ABNH
prior to redefining or making important changes to the security procedures or
security devices that were in place at the most recent security inspection.

 

* Confidential

 

[Signature page follows]

 

3

 

IN WITNESS WHEREOF, the undersigned have hereby
executed this Agreement as the date first set forth above.

 

	
   

  	
  AMERICAN BANK NOTE HOLOGRAPHICS, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth H. Traub

  
	
   

  	
   

  	
  Name: Kenneth H. Traub

  
	
   

  	
   

  	
  Title:   President and CEO

  
	
   

  
	
   

  
	
   

  	
  CFC INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gregory Jehlik

  
	
   

  	
   

  	
  Name: Gregory Jehlik

  
	
   

  	
   

  	
  Title:   President
  and CEO

  
				

 

 

FIGURE A-1

 

DIAGRAM

 

[*]

 

* Confidential

 

 

Amended Schedule B

 

HOLOMAGTM
PRICING
[*]

PRICES BASED ON AGGREGATE OF P/O’S ISSUED AT THE SAME TIME

 

HICO - SILVER

 

	
   

  	
   

  	
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LOCO - SILVER

 

	
   

  	
   

  	
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LOCO - TINTED (GOLD OR OTHER)

 

	
   

  	
   

  	
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*Confidential

 

 

Amended Schedule B1

 

HOLOMAGTM
PRICING [*]
PRICES BASED ON AGGREGATE OF P/O’S ISSUED AT THE SAME TIME

 

HICO – SILVER

 

	
   

  	
   

  	
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LOCO - SILVER

 

	
   

  	
   

  	
  1/2”

  	
   

  	
  1/3”

  	
   

  
	
  Volume

  	
   

  	
  Price/TI

  	
   

  	
  Price/Roll

  	
   

  	
  Price/TI

  	
   

  	
  Price/Roll

  	
   

  
	
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LOCO - (GOLD OR OTHER)

 

	
   

  	
   

  	
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  1/3”

  	
   

  
	
  Volume

  	
   

  	
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  Price/TI

  	
   

  	
  Price/Roll

  	
   

  
	
  [*]

  	
   

  	
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*Confidential

 

 

ABNH may implement the arrangement in this Amended
Schedule B1 at any time for any proportion of its requirements and will notify
CFC accordingly.

 

 

	
   

  	
  SCHEDULE
  C

  	
  (Rev.
  010406A)

  

 

	
  ABNH PART #

  	
   

  	
  CFC PART #

  	
   

  	
  DESCRIPTION

  	
   

  	
  COERCIVITY

  	
   

  	
  WIDTH

  	
   

  	
  TRACK

  	
   

  	
  LCP

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
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*ConfidentialExhibit 10.1

 

 

2006

 

Management Incentive Plan

 

And

 

Performance Goals Under 

 

The 1999 LTIP

 

1

 

I. Introduction

 

We are pleased to
present to you (i) the 2006 Management Incentive Plan (the “Plan”) for
eligible employees of Monster Worldwide, Inc. (“Monster”) and its
subsidiaries (Monster and its subsidiaries are collectively referred to as the “Monster
Group”) and (ii) individual performance goals for 2006 calendar year
performance awards under Monster’s 1999 Long Term Incentive Plan (“LTIP Plan”).
We recognize that the Monster Group’s success relies upon the hard work and
commitment of its employees. You are entrusted with the responsibility of
helping to ensure that our shareholders benefit from superior performance.
Likewise, the Monster Group wants to help you share in this benefit. The Plan
and LTIP Plan collectively offer you the opportunity to enhance your total
compensation based on your individual contributions as well as the Monster
Group’s performance. 

 

These plans are our way
of partnering with you to help achieve specific business results. The plans are
designed to:

 

•        Align your individual efforts with the
strategic goals of the Monster Group;

 

•        Link compensation to the business strategy; 

 

•        Offer
you the opportunity to earn substantial rewards; and

 

•        Focus
on increasing shareholder value.

 

We look forward to
working toward a mutually successful and prosperous future.

 

What
Do You Need to Do?

As soon as possible
after the beginning of the year, it is your responsibility to meet with your
manager to establish written
individual performance objectives (MBOs) for use with the Plan only (and not
the LTIP Plan). To help maximize your bonus opportunity under the Plan, you
should focus on maximizing your achievement relative to these individual
performance objectives. Individual objectives under the Plan should include a
customer satisfaction and team based goal. Attainment of the performance
objectives will be one of the components used by management in its
determination of the individual performance multiplier used under the Plan.
Performance objectives under the Plan may also be amended or revised from
time to time in the sole discretion of management. As outlined in the remainder
of this document, your individual performance in conjunction with the financial
performance of your business unit will help determine any actual award under
the Plan.

 

The LTIP Plan is not part of
the Plan. Under the LTIP Plan, you would be entitled to receive a bonus on the
terms and conditions set forth on Appendix A hereto only upon the attainment of
certain specified goals as more fully explained on Appendix A hereto , provided, however that the Compensation Committee of
Monster’s Board of Directors (the “Compensation Committee’) may in its
sole and absolute discretion reduce the amount otherwise payable to you under
the LTIP Plan. You should not read into

 

2

 

the LTIP Plan any
suggestion that the Compensation Committee will not exercise its ability to
reduce, substantially reduce or even eliminate the amount otherwise payable to
you under the LTIP Plan. Unless otherwise expressly provided below, the balance
of this document only deals with the Management Incentive Plan and does not in
any way affect the operation of the LTIP Plan. 

 

II. Plan Design

 

Subject to the terms and
condition of the Plan, you are eligible to receive an annual bonus, according
to the following parameters:

 

•        Your
target incentive is 

 

•        The
bonus can be greater than, less than, or equal to your target incentive.

 

•   The
target incentive is divided into a financial performance component and
performance (MBO) components. The weighting applied to each target may vary
depending business and job related factors. The financial targets and goals for
2006 will be established and communicated to you no later than April 30, 2006,
and such goals may be adjusted from time to time by management as provided
below.

 

III.
Plan Administration

 

A. Payment Timing and Conditions/Payroll
Deductions

 

Any payments under the
Plan are due and payable by the end of the first quarter 2007. Notwithstanding
anything to the contrary in this Plan or otherwise, no individual will be
entitled to any payments under the Plan unless that individual meets each of the following conditions: 

 

•        Is
a full-time employee of a Monster Group company on the date bonus payments are
scheduled to be made, regardless of whether any termination of employment prior
to that date is voluntary or involuntary or the reasons (or lack of reasons)
therefore;

 

•        Has
returned a signed and dated copy of the signature page of the Plan to a
divisional HR Director no later than April 30, 2006 

 

The Plan and the LTIP
Plan are intended to be a retention tool designed primarily to give payments to
those that are actively employed and therefore exempt from the requirements of
ERISA.

 

Any amount payable under
the Plan or the LTIP Plan shall be reduced by applicable withholding taxes,
normal payroll deductions (including but not limited to 401(k) plan deductions)
and amounts required by law to be withheld. In the event of any overpayment
under the Plan, you agree to promptly reimburse the Monster Group.

 

B.
Management Determinations

 

Management will have the sole
power and authority to interpret, apply and adjust provisions of the Plan in
its sole and absolute discretion, and all decisions of management shall be
final and

 

3

 

binding. Such power and
authority shall include, but not be limited to, calculation and determination
of attainment of any component goals (financial and individual) and the power
and authority to unilaterally terminate the Plan. Without limiting the
foregoing, management may, but shall not be required to, in its sole discretion
(i) amend or revise any and all component goals and (ii) amend or
revise performance objectives. Component goal adjustments may be made, for
example, in the event management deems it warranted as a result of an unforeseen
event such as an acquisition. 

 

C. Partial Year Adjustments

 

The
following chart summarizes how your participation in the Plan may be
affected by certain changes during the Plan year. You must take steps to ensure
you receive from management a written confirmation of the specific impact of
any such changes at the time of such changes. 

 

	
  During the Plan year, what
  happens if You

  
	
   

  	
   

  	
   

  
	
  Transfer
  from one job to another within the Company?

  	
   

  	
  Your
  eligibility for continued participation in the Plan will depend on your
  eligibility before and after your transfer. Please obtain written
  confirmation of the details of the Plan impact of transfer at the time of the
  transfer.

   

  •  If
  you transfer from one position to another within the same group or operating
  company, your participation will generally continue uninterrupted.

   

  •   If you transfer from a position that
  generally allows participation in the Plan to a position that generally
  allows participation in a different plan (or vice versa), your annual
  incentive award, if any, will typically be prorated between both Plans.

   

  •  If
  you transfer to a position in a different business unit that changes the
  performance measures used, your actual bonus, if any, will generally be based
  on the prorated time spent in each position.

  
	
   

  	
   

  	
   

  
	
  Get promoted?

  	
   

  	
  If you receive a
  promotion during the Plan year, new individual performance will generally be
  established to reflect your new position and your bonus will generally be
  prorated based on the number of months in the new position. Please obtain
  written confirmation of the Plan impact at the time of promotion.

  
	
   

  	
   

  	
   

  
	
  Take a leave of
  absence?

  	
   

  	
  If you take a leave of
  absence during the Plan year, you may be eligible for a bonus under the
  Plan, provided you return to work for at least one month within 13 weeks
  prior to the end of the Plan year. Your target bonus will generally be
  prorated based on your active period of employment during the Plan year.
  Please obtain written confirmation of the Plan impact prior to taking a leave
  of absence.

  

 

4

 

D. General

 

Nothing in the Plan or the LTIP Plan gives any
individual any right to continue in the service or employment of any Monster
Group company nor does it interfere with the right of any Monster Group company
to terminate or change such services or employment, it being understood that
unless otherwise agreed to in writing by an authorized Monster Group executive
officer any employment or service with any Monster Group company is “at will.” Section headings
in this document are for convenience only.

 

Management reserves the right to modify the Plan in
its sole and absolute discretion at any time and from time to time.

 

Nothing
in this Plan or the LTIP Plan is intended to provide any assurance as to the
terms, conditions or existence of any plan relating to any period after December 31,
2006.

 

This
Plan and LTIP Plan (i) collectively constitute the sole and entire
arrangement between you and any and all members of the Monster Group with
respect to any and all incentive compensation (whether bonus, commission or
otherwise) and supersedes any and all previous arrangements relating thereto,
and (ii) may not be amended except pursuant to a written document
executed on behalf of a member of the Monster Group by an authorized executive
officer, it being understood that the LTIP Plan may not be amended or
modified except by action of the Compensation Committee.

 

I
hereby acknowledge that I have received, read and understand the Plan and the
LTIP Plan and by signing below I am agreeing to the terms and conditions of the
Plan and the LTIP Plan.

 

	
  EMPLOYEE:

  	
   

  	
   

  
	
   

  
	
   

  
	
  Print Name:

  	
  Brian
  Farrey

  	
  Date

  	
   

  	
   

  
							

 

5

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