Document:

10.1 Separation Agreement

    
JAMES M. SWEET
Executive Vice President and Chief Human Relations Officer

September 1, 2012

Juan R. Figuereo
750 Park Avenue NE
Apt. 30W
Atlanta, GA  30326

Re:    Separation Agreement and General Release

Dear Juan:

This letter when signed by you will constitute the full agreement between you and Newell Rubbermaid Inc. (“the Company”) on the terms of your separation from employment (“Agreement”). By entering into this Agreement, neither you nor the Company makes any admission of any failing or wrongdoing.  Rather, the parties have merely agreed to resolve amicably any existing or potential disputes arising out of your employment with the Company and the separation thereof.

		
	1.
	Your employment with the Company will be terminated February 28, 2013 (“Separation Date”).  Note, as of September 4, you will no longer be the Company’s Executive Vice President and Chief Financial Officer and going forward you will serve as the Company’s Vice President of Financial Affairs.

		
	2.
	In consideration of your acceptance of this Agreement, you will be entitled to the following items:

		
	(a)
	As severance pay, the Company will provide you with three months of pay at your present base salary less ordinary and necessary payroll deductions.  The severance pay will continue until May 31, 2013 (the “Salary Continuation Period”).  The severance payments will not commence, however, until after the Effective Date of this Agreement and after the Separation Date, and they will be made on regularly scheduled pay dates. 

		
	(b)
	As of the Separation Date, you shall no longer be eligible to participate in our health and dental insurance plans as an active employee participant and your Separation Date shall be considered a “qualifying event” for purposes of triggering your right to continue your group health and dental insurance pursuant to federal law (commonly referred to as “COBRA”).  However, as additional consideration for your acceptance of this Agreement, the Company will continue to offer you group health and dental insurance benefits to you and, if applicable, your dependents, at the same cost it charges its employees with positions comparable to your current position throughout the Salary Continuation Period if you elect this COBRA benefit, pay the applicable premiums in a timely manner, and remain eligible for COBRA continuation coverage.  Thereafter, you will have the right to continue COBRA coverage at your own expense for the duration of the applicable COBRA period, if any.  You will receive, under separate cover, information regarding your rights to such continuation coverage.

		
	(c)
	All vested stock options held by you pursuant to any Newell Rubbermaid Inc. employee stock plan (collectively, the “Plans”) as of the Separation Date, remain exercisable throughout the Salary Continuation Period (the “Option Exercise Period”).  All stock options, restricted stock units or other awards granted under the Plans that have not vested as of the Separation Date will be forefeited.  No stock option will be exercisable under this provision after the earlier of: (i) the end of the Option Exercise Period, (ii) the latest date the option could have expired under its original terms and (iii) the 10th anniversary of the date of the original grant. 

		
	(d)
	You will be allowed to continue to use your Company-leased car pursuant to the terms of the leased automobile program through January 1, 2013.  Thereafter you may purchase said vehicle at the buy-out price as established by said program.  After January 1, 2013, you will continue receive a car allowance through the Salary Continuation Period.

		
	(e)
	Except as stated above, all other benefits, bonuses and compensation end on the Separation Date.  However, this Agreement does not affect any existing vested rights that you may have in the Company’s bonus, deferred compensation, pension, retirement and/or 401(k) plans.  You will receive, under separate cover, information regarding your rights and options, if any, under said plans.

		
	(f)
	Benefits provided under this Agreement are intended to be exempt from, or comply with, Section 409A of the Internal Revenue Code (the “Code”)  It is further intended that the payments or benefits under this Agreement be excluded from the requirements of Code Section 409A either as involuntary separation pay pursuant to Treas. Reg. §1.409-1(b)(9)(iii) or as short-term deferral amounts pursuant to Treas. Reg. §1.409-1(b)(4), to the maximum possible extent.  For purposes of Code Section 409A, each installment payment provided under this Agreement shall be treated as a separate payment.  This Agreement shall be construed, administered, and governed in a manner that effects such intent, and the Company shall not take any action that would be inconsistent with such intent.  Without limiting the foregoing, the payments and benefits provided under this Agreement may not be deferred, accelerated, extended, paid out or modified in a manner that would result in a the imposition of additional tax under Code Section 409A.  Although the Company shall use its best efforts to avoid the imposition of taxation, interest and penalties under Code Section 409A, the tax treatment of the benefits provided under this Agreement is not warranted or guaranteed.  Neither the Company nor its affiliates nor its or their directors, officers, employees or advisers shall be held liable for any taxes, interest, penalties or other monetary amounts owed by you or any other taxpayer as a result of this Agreement.

		
	(g)
	To the extent required by Code Section 409A, each payment or reimbursement of taxable expenses or in-kind benefit provided under this Agreement that is includible in your federal gross taxable income shall be provided in accordance with the following:  (i) the amount of such expenses reimbursable, or in-kind benefits provided, in any one calendar year will not affect the amount reimbursable or in-kind benefits provided in any other calendar year; (ii) the reimbursement of an eligible expense shall be made promptly, but in no event later than December 31 of the year following the year in which the expense was incurred; (iii) your rights to reimbursement of expenses pursuant to this Agreement will expire at the end of the ten (10) years after the Separation Date; and (iv) your rights to reimbursements of expenses or in-kind benefits under this Agreement will not be subject to liquidation or exchange for another benefit.  

		
	3.
	In consideration of the payments and benefits provided to you above, to which you are not otherwise entitled and the sufficiency of which you hereby acknowledge, you do, on behalf of yourself and your heirs, administrators, executors and assigns, hereby fully, finally and unconditionally release and forever discharge the Company and its parent, subsidiary and affiliated entities and its and their former and present officers, directors, shareholders, employees, trustees, fiduciaries, administrators, attorneys, consultants, agents, and other representatives, and all their respective predecessors, successors and assigns (collectively “Released Parties”), in their corporate, personal and representative capacities, from any and all obligations, rights, claims, damages, costs, attorneys’ fees, suits and demands, of any and every kind, nature and character, known or unknown, liquidated or unliquidated, absolute or contingent, in law and in equity, waivable and/or enforceable under any local, state, federal, or foreign common law, constitution, statute or ordinance which arise from or relate to your employment with the Company or the termination thereof, or any past actions or omissions of the Company or any of the Released Parties through the date you sign this Agreement.  Specifically included in this release is a general release which releases the Released Parties from any claims, including without limitation claims under:  (1) Title VII of the Civil Rights Act of 1964, as amended by the Civil Rights Act of 1991 (race, color, religion, sex, and national origin discrimination); (2) the Americans with Disabilities Act, as amended (disability discrimination); (3) 42 U.S.C. § 1981 (race discrimination); (4) the Age Discrimination in Employment Act (29 U.S.C. §§ 621-624) (age discrimination); (5) 29 U.S.C. § 206(d)(1) (equal pay); (6) Executive Order 11246 (race, color, religion, sex and national origin discrimination); (7) Executive Order 11141 (age discrimination); (8) Section 503 of the Rehabilitation Act of 1973 (disability discrimination); (9) Employee Retirement Income Security Act; (10) the Occupational Safety and Health Act; (11) the Ledbetter Fair Pay Act; (12) the Family and Medical Leave Act; (13) the Genetic Information and Non-Discrimination Act; (14) the Uniform Service Employment and Reemployment Rights Act; (15) the Worker Adjustment and Retraining Notification Act; and (16) other similar federal, state and local anti-discrimination and other employment laws, including those of the State of Georgia and where applicable, any rights and claims arising under the law and regulations administered by California’s Department of Fair Employment and Housing.  You further acknowledge that you are releasing, in addition to all other claims, any and all claims based on any retaliation, tort, whistle-blower, personal injury, defamation, invasion of privacy, retaliatory discharge, constructive discharge or wrongful discharge theory; any and all claims based on any oral, written or implied contract or on any contractual theory; any and all claims based on any public policy theory; any and all claims for severance pay, supplemental unemployment pay or other separation pay, including but not limited to claims under the Supplemental Unemployment Plan and Excess Severance Pay Plan; any and all claims related to the Company’s use of your image, likeness or photograph; and any and all claims based on any other federal, state or local Constitution, regulation, law (statutory or common), or other legal theory, as well as any and all claims for punitive, compensatory, and/or other damages, back pay, front pay, fringe benefits and attorneys’ fees, costs or expenses.  

You further acknowledge and agree that you have not filed, assigned to others the right to file, reported or provided information to a government agency, nor are there pending, any complaints, charges or lawsuits by or on your behalf against the Company or any Released Party with any governmental agency or any court.  Nothing herein is intended to or shall preclude you from filing a complaint and/or charge with any appropriate federal, state, or local government agency, reporting or providing information to said agency, or cooperating with said agency in its investigation; however, you understand and agree that you shall not be entitled to and expressly waive any right to personally recover against any Released Party in any action brought against any Released Party by any governmental agency, you give up the opportunity to obtain compensation, damages or other forms of relief for yourself other than that provided in this Agreement, without regard as to who brought said complaint or charge and whether the compensation, damages or other relief is recovered directly or indirectly on your behalf., and you understand and agree that this Agreement shall serve as a full and complete defense by Newell Rubbermaid and the Released Parties to any such claims.

Notwithstanding any provision herein to the contrary, however, nothing in this Agreement and Release is intended to waive:

		
	(a)
	any claim or cause of action to enforce any of your rights under this Agreement and Release;

		
	(b)
	your entitlement to vested benefits under any 401(k) plan or other benefit plan provided by the Company;

		
	(c)
	any claims that you could make, if available, for unemployment compensation, workers’ compensation or claims that cannot be released by private agreement;

		
	(d)
	as long as you were acting within the course and scope of your employment with the Company, any right to indemnification from the Company for any and all claims, causes of action, damages and/or liabilities of any kind, nature, description or character arising out of, relating to, or in connection with your employment with the Company you may have under the Company’s Articles of Incorporation, Bylaws,  or any right arising under the Company’s directors and officers’ liability insurance policies or other insurance policies and self-insurance programs for acts or omissions during your period of employment.

		
	4.
	Non-Competition and Non-Solicitation  

		
	(a)
	The Company.  The Company is a global marketer and manufacturer of consumer and commercial products.

		
	(b)
	Your Job Duties.  You agree that your job duties during your tenure with the Company included the following:  Chief Financial Officer.

		
	(c)
	Your Obligations. Through the Salary Continuation Period and for twelve (12) months thereafter:  

		
	(i)
	Non-Competition.  You agree that you will not perform the job duties of a senior financial executive on behalf of a business or organization that competes with the Company without the written consent of the Company’s General Counsel.  This non-competition covenant is limited to the following geographic area:  United States.  For purposes of this Agreement, a business or organization competes with the Company if the business or organization offers or provides Competitive Products (as this term is defined in subparagraph (ii) below).

		
	(ii)
	Non-Solicitation.  You agree that you will not directly or indirectly, individually or on behalf of any person or entity, solicit or induce, or assist in any manner in the solicitation or inducement of:  (i) employees of the Company, other than those in clerical or secretarial positions, to leave their employment with the Company (this restriction is limited to employees with whom you have had material contact for the purpose of performing your job duties and responsibilities); (ii) customers of the Company to purchase from another person or entity products and services that compete with those offered and provided by the Company (“Competitive Products”) (this restriction is limited to customers with whom you have material contact through performance of your job duties 

and responsibilities or through otherwise performing services on behalf of the Company); or (iii) suppliers of the Company to supply another person or entity providing Competitive Products to the exclusion or detriment of the Company (this restriction is limited to suppliers with whom you have had material contact through performance of your job duties and responsibilities or through otherwise performing services on behalf of the Company.)

		
	(d)
	Reasonableness.  You hereby acknowledge and agree that:  (i) the restrictions provided in this section are reasonable in time and scope in light of the necessity for the protection of the business and goodwill of the Company and the consideration provided to you under this Agreement; and (ii) your ability to work and earn a living will not be unreasonably restrained by the application of these restrictions.

		
	(e)
	Injunctive Relief.  You also recognize and agree that should you fail to comply with the restrictions set forth above regarding Non-Competition and/or Non-Solicitation, which restrictions you recognize are vital to the success of the Company’s business, the Company would suffer substantial damage for which there is no adequate remedy at law due to the impossibility of ascertaining exact money damages.  Therefore, you agree that in the event of the breach or threatened breach by you of any of the terms and conditions of this Agreement, the Company shall be entitled, in addition to any other rights or remedies available to it, to institute proceedings in a federal or state court and to secure immediate temporary, preliminary and permanent injunctive relief.  In the event the enforceability of any of the covenants in this section are challenged in court, the applicable time period as to such covenant shall be deemed tolled upon the filing of the lawsuit challenging the enforceability of this Agreement until the dispute is finally resolved and all periods of appeal have expired.

		
	5.
	You understand and agree that this Agreement contemplates and memorializes an unequivocal, complete and final dissolution of your employment relationship with the Company, and that, therefore, you have no right to be reinstated to employment with or rehired by the Company, and that in the future, the Company and its affiliated and related entities and their successors and assigns shall have no obligation to consider you for employment.

		
	6.
	You further understand and agree that should another Newell Rubbermaid Inc. entity offer you employment and you accept the same and commence employment within the Salary Continuation Period, the Company will discontinue the remaining severance payments and benefits without affecting the release and covenant not to sue or any other provision of this Agreement.

		
	7.
	You agree to return to the Company all of the Company’s property, including, without limit, any electronic or paper documents and records and copies thereof that you received or acquired during your employment containing confidential Company information and/or regarding the Company’s practices, procedures, trade secrets, customer lists, or product marketing, and that you will not use the same for your own purpose.  You further agree to return to Joseph Ketter any and all hard copies of any documents which are the subject of a document preservation notice or other legal hold and to notify Joseph Ketter of the location of any electronic documents which are subject to a legal hold. Unless required or otherwise permitted by law, you further agree that while you are considering this Agreement and for three (3) years following your Separation Date (or in the case of Company trade secrets, for so long as the trade secret information qualifies as a trade secret under controlling law), you will not disclose to any person, firm, or corporation or use for your own benefit any information regarding the following:  Any secret or confidential information obtained or learned by you in the course of your employment with Company with regard to the operational, financial, business or 

other affairs of Company or its subsidiaries, divisions, or parent companies including, without limitation, proprietary trade “know how” and secrets, financial information and models, customer 

lists, business, marketing, sales and acquisition plans, identity and qualifications of Company’s employees, sources of supply, pricing policies, proprietary operational methods, product specifications or technical processes.

		
	8.
	When permitted by applicable law, you agree that in the event that you breach any of your obligations under this Agreement, the Company is entitled to stop any of the payments or other consideration to be provided to you pursuant to Section 2 above, including but not limited to, your severance payments, and to recover any payments or other consideration already paid to you.  This includes, when allowed by applicable law, the return by you of any severance pay and the value of other benefits already paid to you pursuant to this Agreement prior to your proceeding with any claim in court against any of the Released Parties.  You further agree that the Company shall also be entitled to obtain any and all other relief provided by law or equity including the payment of its attorney’s fees and costs.

		
	9.
	It is agreed that neither you nor the Company, nor any of its officers, directors or employees, make any admission of any failing or wrongdoing or violation of any local, state or federal law by entering into this Agreement, and that the parties have entered into this Agreement simply to resolve your employment relationship in an amicable manner.  While considering this Agreement and at all times thereafter, you agree to act in a professional manner and not make any disparaging or negative statements regarding the Company or its affiliated companies and its and their officers, directors and employees, or its and their products or to otherwise act in any manner that would damage the business reputation of the same. 

		
	10.
	Throughout the Salary Continuation Period and thereafter, you agree, upon reasonable written notice, to make yourself reasonably available, taking into account your other business and personal commitments, to:  (a) advise and assist the Company and its counsel in preparing such operational, financial and other reports, or other filings and documents, as the Company may reasonably request, and otherwise cooperate with the Company and its affiliates with any request for information; and (b) assist the Company and its counsel in prosecuting or defending against any litigation, complaints or claims against or involving the Company or its affiliates .(the “Cooperation”). In no event shall you be required to provide any Cooperation if such Cooperation is adverse to your legal or business interests.  In addition, after the Salary Continuation Period, you will not be required to provide more than ten (10) full calendar days per year of Cooperation to the Company pursuant to this Section 10.  For these purposes, Cooperation by you entailing five or more hours during a single day shall be treated as a full day of Cooperation.  Your Cooperation shall include but not be limited to being available to meet with officers or employees of the Company and/or the Company’s counsel at mutually convenient times and locations, executing accurate and truthful documents and taking such other actions as may reasonably be requested by the Company and/or the Company’s counsel to effectuate the foregoing.  You will be entitled to reimbursement, upon receipt by the Company of suitable documentation, for your reasonable out-of-pocket expenses for such Cooperation (including travel costs and reasonable legal fees to the extent you reasonably believe that separate representation is warranted and obtain the Company’s consent in writing, which consent shall not be unreasonably withheld).  

		
	11.
	You acknowledge and agree that this Agreement sets forth the entire understanding between the parties concerning the matters discussed herein, that no promise or inducement has been offered to you to enter into this Agreement except as expressly set forth herein, that the provisions of this Agreement are severable such that if any part of the Agreement is found to be unenforceable, the other parts shall remain fully valid and enforceable, and that a court is authorized to amend the relevant provisions of the Agreement to carry out the intent of the parties to the extent legally permissible.

		
	12.
	Any agreement, policy or practice relating to severance benefits or monies to be paid to you upon your termination from employment with the Company is expressly rendered null and void by this 

Agreement.   Any Employment Security Agreement or Change in Control Agreement is expressly rendered null and void as of the date of this Agreement.

		
	13.
	Unless specifically voided herein, any agreement that you have previously entered into with the Company or its affiliated or related entities that by its terms, extends past your Separation Date, remains in full force and effect.

		
	14.
	You acknowledge receipt of the Summary Plan Descriptions of Newell Rubbermaid Inc.’s Excess Severance Pay Plan.

		
	15.
	You acknowledge and agree that the releases set forth above are in accordance with and shall be applicable to, without limitation, any claims under the Age Discrimination in Employment Act and the Older Workers Benefit Protection Act, and that in accordance with these laws, you are hereby advised in writing to consult an attorney prior to accepting and executing this Agreement.  You have twenty-one (21) days from your receipt of this letter to accept the terms of this Agreement.  You may accept and execute this Agreement within those 21 days.  You agree that if you elect to sign this Agreement before the end of this twenty-one (21) day period, it is because you freely chose to do so after carefully considering its terms.

		
	16.
	So long as you continue to fully satisfy your obligations and support of the Company and do not violate any of the conditions set forth in this Agreement, the Company does not object to you securing additional employment while serving as the Company’s Vice President of Financial Affairs and agrees that, your provision of services to or performance of services for another employer does not constitute a breach of your duties to the Company or of this Agreement to the extent that you continue to comply with the terms and conditions of this Section 16.  You and the Company agree that, following the Effective Date and until the Separation Date, you and the Company will work together in good faith to develop a schedule for your performance of services for the Company that reasonably accommodates your interests in engaging in additional employment and the reasonable needs of the Company; provided, however, that you and the Company reasonably anticipate that, until the Separation Date, you will continue to provide to the Company more than 20 percent of the average level of services you performed during the immediately preceding 36–month period and that after the Separation Date, you will provide to the Company less than 20 percent of the average level of services you performed during the immediately preceding 36-month period.  

If you accept the terms of this Agreement, please date and sign this Agreement and return it to me.  Once you execute this Agreement, you have seven (7) days in which to revoke in writing your acceptance by providing the same to me, and such revocation will render this Agreement null and void.  If you do not revoke your acceptance in writing and provide it to me by midnight on the seventh day, this Agreement shall be effective the day after the seven-day revocation period has elapsed “Effective Date”.

Sincerely,

/s/ James M. Sweet
James M. Sweet
Executive Vice President and Chief Human Relations Officer

By signing this letter, I represent and warrant that I have not been the victim of age or other discrimination or wrongful treatment in my employment and the termination thereof.  I further acknowledge that the Company advised me in writing to consult with an attorney, that I had at least twenty-one (21) days to consider this Agreement, that I received all information necessary to make an informed decision and I had the opportunity to request and receive additional information, that I understand and agree to the terms of this Agreement, that I have seven (7) days in which to revoke my acceptance of this Agreement, and that I am signing this Agreement voluntarily with full knowledge and understanding of its contents.

Dated: September 2, 2012            Name:  /s/ Juan R. FiguereoExhibit 10.1 Pierce Employment Agreement

EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (this “Agreement”) is entered into as of September 1, 2012 (the “Effective Date”), by and between On Assignment, Inc. (the “Company”) and Edward L. Pierce (“Executive”).
RECITALS
WHEREAS, Executive currently serves as a member of the Board of Directors of the Company (the “Board”);
WHEREAS, the Company and Executive desire to continue Executive’s service relationship with the Company in a capacity other than as a member of the Board;
WHEREAS, the Company desire to employ Executive and to enter into an agreement embodying the terms of such employment; and
WHEREAS, Executive desires to resign as a member of the Board and accept such employment with the Company, subject to the terms and conditions of this Agreement.
AGREEMENT
NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:
1.           Employment Term; Resignation.  Subject to the provisions for earlier termination hereinafter provided, Executive’s employment shall continue for a term commencing on the Effective Date and ending on December 31, 2012 (the “Initial Termination Date”); provided, that this Agreement shall be automatically extended for one additional year on the Initial Termination Date and on each subsequent anniversary of the Initial Termination Date unless either Executive or the Company elects not to so extend such term by notifying the other party, in accordance with Section 7 below, of such election not less than sixty days prior to the Initial Termination Date, or any anniversary thereof, as applicable (in any case, the “Employment Period”).  Effective as of the Effective Date, Executive hereby resigns from his position on the Board (including Chairman of the Audit Committee) and as a member of the board of directors of any of the Company’s affiliates. 
2.           Position and Duties.
     (a)           Position.  During the Employment Period, Executive shall serve as Executive Vice President and Chief Financial Officer of the Company and shall perform such employment duties as are usual and customary for such position, including without limitation, oversight and management of the Company’s Finance and Accounting, Treasury, Risk Management and, along with the President and Chief Executive Officer (“CEO”), the Investor Relations departments.  Executive shall report to the CEO of the Company.  The Company shall retain full direction and control of the means and methods by which 

 

Executive performs the above services.  At the Company’s request, Executive shall serve the Company and/or its subsidiaries and affiliates in such other offices and capacities in addition to the foregoing as the Company shall designate, consistent with Executive’s position, without additional compensation beyond that specified in this Agreement.
(b)           Place of Employment.  During the Employment Period, Executive shall perform the services required by this Agreement at the Company’s principal offices in Calabasas, California, unless otherwise mutually agreed upon by the parties.  Notwithstanding the foregoing, Executive may from time to time be required to travel temporarily to other locations on the Company’s business.
(d)           Exclusivity.  During the Employment Period, except for such other activities as the Compensation Committee of the Board of Directors (the “Committee”) shall approve in writing in its sole discretion and as otherwise provided in this Section 2(d), Executive shall devote his entire business time, attention and energies to the business and affairs of the Company, to the performance of Executive’s duties under this Agreement and to the promotion of the Company’s interests, and shall not (i) accept any other employment, directorship or consultancy, or (ii) engage, directly or indirectly, in any other business activity (whether or not pursued for pecuniary advantage) that is or may be competitive with, or that might place Executive in a competing position to, that of the Company.  Notwithstanding the foregoing,  provided that such activities do not interfere with the fulfillment of Executive’s obligations hereunder, Executive may (A) serve as an officer, director or trustee of any charitable or non-profit entity; (B) own a passive investment in any private company and own up to 5% of the outstanding voting securities of any public company; or (C) with the prior approval of the CEO, serve as a director of up to two other companies so long as such companies do not compete with the Company and Executive notifies the CEO in advance of accepting any such position.
3.           Compensation.
(a)           Base Salary.  During the Employment Period, the Company shall pay Executive a base salary (the “Base Salary”) set at $450,000 per year subject thereafter to annual review and increase (but not decrease) in the sole discretion of the Committee.  The Base Salary shall be payable in accordance with the Company’s normal payroll procedures applicable to senior executives of the Company, as in effect from time to time.
(b)           Annual Bonus.  In addition to the Base Salary, Executive shall be eligible to earn an annual cash bonus in respect of each calendar year during the Employment Period beginning in calendar year 2012, as described below (each, an “Annual Bonus”), subject in each case to Executive’s continued employment through the date on which annual bonuses are paid generally to the Company’s senior executives.  In respect of calendar year 2012, Executive shall be eligible to earn an Annual Bonus up to $150,000 (the “2012 Annual Bonus Target”), based on the Company’s achievement of performance targets established by the Committee prior to the Effective Date, but the actual amount of the 2012 Annual Bonus shall be determined on the basis of the Company’s achievement of the performance targets.  In respect of 

 

calendar years during the Employment Period beginning after 2012, Executive will be eligible to receive an Annual Bonus in an amount up to 100% of Executive’s Base Salary, but the actual Annual Bonus shall be determined by reference to the achievement (“Tier 1”) and overachievement (“Tier 2”)  of budgetary and other objective performance criteria, which criteria shall be determined by the Committee in its sole discretion within sixty days after the start of the applicable calendar year.  Each Annual Bonus shall be paid to Executive, to the extent that any such Annual Bonus becomes payable, within thirty days after the date on which the Committee conclusively determines the extent to which the applicable performance criteria have (or have not) been met, but in no event later than March 15 of the year following the calendar year in which the Annual Bonus is earned.  
      (c)           Stock Option.  Subject to approval by the Committee, as soon as practicable following the Effective Date, the Company shall grant to Executive a nonqualified option to purchase 75,000 shares of Company common stock (the “Option”).  The Option shall be granted to Executive at an exercise price per share equal to 100% of the fair market value of a share of Company common stock on the date of grant. Subject to Executive’s continued employment with the Company through each applicable vesting date, the Option shall vest and become exercisable with respect to 18,750 of the shares subject thereto on the first anniversary of the date of grant of the Option (the “Option Grant Date”) and with respect to 1,563 of the shares subject thereto on each monthly anniversary of the Option Grant Date thereafter, such that the Option shall be vested and exercisable with respect to all shares subject thereto (subject to Executive’s continued employment) on the fourth anniversary of the Option Grant Date.  Consistent with the foregoing, the terms and conditions of the Option, including the applicable vesting conditions, shall be set forth in an option grant agreement to be entered into by the Company and Executive in a form prescribed by the Company which shall evidence the grant of the Option (the “Option Agreement”).  The Option shall, subject to the provisions of this Section 3(c), be governed in all respects by the terms of the applicable Option Agreement.
(d)           Restricted Stock Units.  
(i) Subject to approval by the Committee, as soon as practicable following the Effective Date, the Company shall grant to Executive  restricted stock units (“RSUs”) with respect to a number of shares of common stock having a grant date value equal to $146,666.   Consistent with the foregoing, the terms and conditions of the RSUs, including the applicable vesting and share delivery conditions, shall be set forth in a RSU grant agreement to be entered into by the Company and Executive which shall evidence the grant of the RSUs and, except as otherwise expressly provided herein, shall be consistent with the terms and conditions contained in RSU grant agreements provided to other key executives of the Company (the “RSU Agreement”). The RSUs shall, subject to the provisions of this Section 3(d), be governed in all respects by the terms of the applicable RSU Agreement.
(ii) Subject to approval by the Committee, on the first trading day of 2013, the Company shall grant to Executive restricted stock units (“RSUs”) with respect to a number of shares of common stock having a grant date value equal to $440,000.   Consistent with the foregoing, the terms and conditions 

 

of the RSUs, including the applicable vesting and share delivery conditions, shall be set forth in a RSU grant agreement to be entered into by the Company and Executive which shall evidence the grant of the RSUs and, except as otherwise expressly provided herein, shall be consistent with the terms and conditions contained in RSU grant agreements provided to other key executives of the Company (the “RSU Agreement”). The RSUs shall, subject to the provisions of this Section 3(d), be governed in all respects by the terms of the applicable RSU Agreement.
     (e)           Benefit Plans.  During the Employment Period, Executive and Executive’s legal dependants shall be eligible to participate in the welfare benefit plans, policies and programs (including, if applicable, medical, dental, disability, life and accidental death insurance plans and programs) maintained by the Company for its senior executives.  In addition, Executive shall be eligible to participate in such incentive, savings and retirement plans, policies and programs as are made available to senior executives of the Company, provided, that the Company shall have no obligation, in any case, to adopt, maintain or continue any such plans, policies or programs.
(f)           Additional Perquisites.  In addition to the compensation and benefits described above in this Section 3, during the Employment Period, the Company shall (i) pay to Executive an automobile allowance of $450 per month and, (ii) pay or reimburse Executive for actual, properly substantiated expenses incurred by Executive in connection with (A) an annual physical examination, not to exceed $1,500 per calendar year; and (B) tax preparation and financial planning services, not to exceed $2,500 per calendar year.
     (g)       Vacation.  Executive shall be entitled to vacation according to the vacation policy in place for other senior executives of the Company.  
 (h)        Expenses.  During the Employment Period, Executive shall be entitled to receive prompt reimbursement of all reasonable business expenses incurred by Executive in accordance with the Company expense reimbursement policy applicable to senior executives of the Company, as in effect from time to time, provided that Executive properly substantiates such expenses in accordance with such policy.
(i)  Moving and Relocation Expenses.  Executive is entitled to payment or reimbursement for all reasonable expenses associated with Executive’s relocation to the Los Angeles, California greater metropolitan area (including up to a maximum of $4,000 in legal fees incurred in connection with the negotiation, preparation and execution of this Agreement and, without limitation, travel expenses), in a total amount not to exceed $140,000, to the extent that such expenses are incurred by Executive no later than November 30, 2013.  Subject to Section 9(c) below, such legal and relocation expenses will be paid or reimbursed to Executive, in all cases, during calendar year 2013, following proper substantiation of such amounts in accordance with the Company expense reimbursement policy applicable to senior executives of the Company, as in effect from time to time.
4.           Termination of Employment.

 

Either the Company or Executive may terminate Executive’s employment at any time for any reason or no reason.  The following provisions shall control any such termination of Executive’s employment, subject to Section 8 below:
     (a)           Termination Without Cause.  The Company may terminate Executive’s employment without Cause (as defined below) at any time during the Employment Period upon written notice to Executive provided in accordance with Section 7 below.  The delivery by the Company of notice to Executive that it does not intend to renew this Agreement shall constitute a termination by the Company without Cause if, at the time of such notice, Executive is willing and able to renew the Agreement and continue provision of service on terms and conditions substantially similar to those contained in this Agreement.  If Executive’s experiences a Separation from Service during the Employment Period as provided in this Section 4(a), the Company shall promptly, or in the case of obligations described in clause (iii) below, as such obligations become due to Executive, pay or provide to Executive, (i) Executive’s earned but unpaid Base Salary accrued through such Date of Termination (as defined below), (ii) reimbursement of any business expenses incurred by Executive prior to the Date of Termination that are reimbursable under Sections 3(f), 3(h) or 3(i) above, and (iii) any vested benefits and other amounts due to Executive under any plan, program or policy of the Company (together, the “Accrued Obligations”).  In addition, subject to Section 4(h) below, Executive’s timely execution and non-revocation of a binding Release (as defined below) in accordance with Section 4(f) below and Executive’s continued compliance with the Confidentiality Agreement (as defined below), and except as otherwise may be provided in the COC Agreement (as defined below), Executive shall be entitled to receive (x) 100% of Executive’s Base Salary (the “Cash Severance”) at the rate in effect as of the Date of Termination, payable in substantially equal installments (the “Installments”) during the period commencing on the Date of Termination and ending on the twelve-month anniversary of the Date of Termination, in accordance with the Company’s normal payroll procedures applicable to senior executives of the Company, as in effect from time to time (but no less often than monthly), provided, however, that no Installment payments shall be made prior to the Company’s first payroll date occurring on or after the 30th day following the Date of Termination (such payroll date, the “First Payroll Date”) and any amounts that would otherwise have been payable prior to the First Payroll Date shall instead be paid on the First Payroll Date without interest thereon, (y) any unpaid Annual Bonus to which Executive would have become entitled for any calendar year of the Company ending prior to the Date of Termination had Executive remained employed through the payment date, payable on the First Payroll Date, and (z) reimbursement or payment of reasonable relocation expenses, in an aggregate amount up to $80,000, that Executive incurs (in connection with Executive’s termination of employment under this Section 4(a)) by the end of the second year following the year in which the Date of Termination occurs ((x), (y) and (z), collectively, the “Severance”), which shall be paid or reimbursed to Executive reasonably promptly, but in no event later than December 31st of the year following the year in which the expense was incurred, provided that Executive properly substantiates such expenses in accordance with the Company’s expense reimbursement policy applicable to senior executives of the Company.
 (b)           Death; Disability.  If Executive dies during the Employment Period or Executive’s 

 

employment is terminated by the Company or Executive due to Executive’s total and permanent disability (that constitutes a “disability” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”)), Executive or Executive’s estate, as applicable, shall be entitled to receive the Accrued Obligations promptly or, in the case of benefits described in Section 4(a)(iii), as such obligations become due to Executive.  In addition, subject to Section 4(h) below, Executive’s (or Executive’s estate’s) execution and non-revocation of a binding Release in accordance with Section 4(g) below and Executive’s continued compliance with the Confidentiality Agreement (upon a disability termination), Executive (or Executive’s estate) shall be entitled to receive the Cash Severance, payable in accordance with Section 4(a) above.
(c)           Cause.  If Executive’s employment becomes terminable by the Company for Cause (as defined below) under Section 4(g)(i), (ii) or (v) below, then the Company shall provide Executive with written notice setting forth in reasonable detail the nature of such Cause and Executive shall have a period of fifteen days to cure such Cause.  If Executive has not cured such Cause within fifteen days of the Company’s provision of such notice, then the Company may terminate Executive’s employment immediately and Executive shall be entitled to receive the Accrued Obligations promptly or, in the case of benefits described in Section 4(a)(iii), as such obligations become due to Executive. If Executive’s employment becomes terminable by the Company for Cause under Section 4(g)(iii) or (iv) below, the Company may terminate Executive’s employment immediately and Executive shall be entitled to receive the Accrued Obligations promptly or, in the case of benefits described in Section 4(a)(iii), as such obligations become due to Executive.
(d)           Resignation.  Executive may terminate Executive’s employment upon sixty days’ notice to the Company provided in accordance with Section 7 below, subject to the Company’s right to waive any or all of such notice period.  If Executive so terminates Executive’s employment, Executive shall be entitled to receive the Accrued Obligations promptly, or, in the case of benefits described in Section 4(a)(iii), as such obligations become due to Executive.  If the Company elects to waive the notice period provided for in this Section 4(d), Executive shall not be entitled to any compensation in respect of such waived period.
(e)           Other Terminations.  If Executive’s employment terminates for any reason other than those specified in Sections 4(a), (b), (c) or (d) above, the Company shall promptly, or in the case of items described in Section 4(a)(iii), as such obligations become due to Executive, pay or provide to Executive the Accrued Obligations.
(f)           Release; Exclusivity of Benefits.  Notwithstanding anything in this Agreement to the contrary, it shall be a condition to Executive’s (or Executive’s estate’s or beneficiaries’, if applicable) right to receive the Severance that Executive (or his estate or beneficiaries, if applicable) execute and deliver to the Company a general release of claims in a form prescribed by the Company (the “Release”) within twenty-one (or, to the extent required by law, forty-five) days following the Date of Termination and that Executive (or Executive’s estate or beneficiaries, if applicable) not revoke such Release during any applicable revocation period.  Except as expressly provided in this Section 4, upon the termination of 

 

Executive’s employment, the Company shall have no obligations to Executive in connection with his employment with the Company or the termination thereof.
(g)           Definitions.
“Cause” shall mean (i) a material breach of this Agreement by Executive, (ii) the willful or repeated failure or refusal by Executive substantially to perform Executive’s duties hereunder; (iii) the indictment of Executive for any felony or other crime involving moral turpitude, (iv) fraud, embezzlement or misappropriation by Executive relating to the Company or its funds, properties, corporate opportunities or other assets to the extent that the Company reasonably determines such act to be materially injurious to the Company, or (v) Executive repeatedly acting in a manner or repeatedly making any statements, in either case, which the Company reasonably determines to be detrimental or damaging to the reputation, operations, prospects or business relations of the Company.  
             “Date of Termination” shall mean the date on which Executive experiences a “separation from service” within the meaning of Section 409A(a)(2)(A)(i) of the Code, and Treasury Regulation Section 1.409A-1(h) (a “Separation from Service”).
 (h)           Potential Six-Month Delay.  Notwithstanding anything to the contrary in this Agreement, no compensation or benefits, including without limitation any Severance payments, shall be paid to Executive during the six-month period following Executive’s Separation from Service if the Company determines that Executive is a “specified employee” at the time of such Separation from Service (within the meaning of Section 409A) (determined in accordance with any applicable Company “specified employee” identification procedures), and paying such amounts at the time or times indicated in this Agreement would be a prohibited distribution under Section 409A(a)(2)(b)(i) of the Code.  If the payment of any such amounts is delayed as a result of the previous sentence, then on the first business day following the end of such six-month period, (or such earlier date upon which such amount can be paid under Section 409A without resulting in a prohibited distribution, including as a result of Executive’s death), the Company shall pay Executive a lump-sum amount equal to the cumulative amount that would have otherwise been payable to Executive during such six-month period, without interest thereon.
5.           Confidential Information and Employee Developments.  Concurrently herewith, Executive agrees to execute and comply with the terms of the Confidential Information and Employee Development Agreement attached hereto as Exhibit A (the “Confidentiality Agreement”).  The compensation and benefits provided under this Agreement, together with any Severance obligations arising hereunder and other good and valuable consideration are hereby acknowledged by the parties hereto to constitute adequate consideration for Executive’s entering into the Confidentiality Agreement.
     6.           Representations.
     (a)           No Violation of Other Agreements.  Executive hereby represents and warrants to the Company that (i) he is entering into this Agreement voluntarily and that the performance of his obligations 

 

hereunder will not violate any agreement between him and any other person, firm, organization or other entity, and (ii) he is not bound by the terms of any agreement with any previous employer or other party to refrain from competing, directly or indirectly, with the business of such previous employer or other party that would be violated by his entering into this Agreement and/or providing services to the Company pursuant to the terms of this Agreement.
 (b)           No Disclosure of Confidential Information.  Executive’s performance of his duties under this Agreement will not require him to, and he shall not, rely on in the performance of his duties or disclose to the Company or any other person or entity or induce the Company in any way to use or rely on any trade secret or other confidential or proprietary information or material belonging to any previous employer of Executive.
     7.           Notice.  Any notice or other communication required or permitted under this Agreement shall be effective only if it is in writing and delivered personally or sent by fax, email or registered or certified mail, postage prepaid, addressed as follows (or if it is sent through any other method agreed upon by the parties):
If to the Company: 
On Assignment, Inc. 
26745 Malibu Hills Road 
Calabasas, CA 91301 
Tel: (818) 878-7900 
Attention: Chief Executive Officer
If to Executive: to the most current home address on file with the Company’s Human Resources department, or to such other address as any party hereto may designate by notice to the other in accordance with this Section 7, and shall be deemed to have been given upon receipt.
8.           Change of Control Agreement.  Notwithstanding anything contained in this Agreement, the parties hereto acknowledge that Executive and the Company have entered into an Executive Change of Control Agreement of even date herewith (the “COC Agreement”) and, that, in the event that Executive becomes entitled to compensation or benefits under the COC Agreement (as determined solely under the terms of the COC Agreement), Section 4 of this Agreement shall be superseded by the COC Agreement and no further compensation or benefits in any form shall become payable under this Agreement.
      9.           Section 409A.
     (a)           General.  To the extent applicable, this Agreement shall be interpreted in accordance with Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder.  Notwithstanding any provision of this Agreement to the contrary, if the Company determines that any compensation or benefits payable under this Agreement may be subject to Section 409A of the Code and related Department of Treasury guidance, the Company shall work in good faith with Executive 

 

to adopt such amendments to this Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Company determines are necessary or appropriate to avoid the imposition of taxes under Section 409A of the Code, including without limitation, actions intended to (i) exempt the compensation and benefits payable under this Agreement from Section 409A of the Code, and/or (ii) comply with the requirements of Section 409A of the Code and related Department of Treasury guidance; provided, however, that this Section 9(a) shall not create an obligation on the part of the Company to adopt any such amendment, policy or procedure or take any such other action, nor shall the Company have any liability for failing to do so.
     (b)         Separate Payments.  Any right to a series of installment payments pursuant to this Agreement is to be treated as a right to a series of separate payments.  To the extent permitted under Section 409A of the Code, any separate payment or benefit under this Agreement or otherwise shall not be deemed “nonqualified deferred compensation” subject to Section 409A of the Code and Section 4(d) hereof to the extent provided in the exceptions in Treasury Regulation Section 1.409A-1(b)(4), Section 1.409A-1(b)(9) or any other applicable exception or provision of Section 409A of the Code.
(c)    Certain Reimbursements.  To the extent that any payments or reimbursements provided to Executive hereunder are deemed to constitute compensation to Executive to which Treasury Regulation Section 1.409A-3(i)(1)(iv) would apply, such amounts shall be paid or reimbursed to Executive reasonably promptly, but in no event later than December 31st of the year following the year in which the expense was incurred.  The amount of any such payments eligible for reimbursement in one year shall not affect the payments or expenses that are eligible for payment or reimbursement in any other taxable year, and Executive’s right to such payments or reimbursement of any such expenses shall not be subject to liquidation or exchange for any other benefit.
(d)      Notwithstanding any other provision to the contrary, in no event shall any payment under this Agreement that constitutes “deferred compensation” for purposes of Section 409A of the Code and the Treasury Regulations promulgated thereunder be subject to offset by any other amount unless otherwise permitted by Section 409A of the Code.
(e)    For the avoidance of doubt, any amount payable under this Agreement within a period following Executive’s termination of employment or other event shall be made on a date during such period as determined by the Company in its sole discretion.
10.           Miscellaneous.
     (a)           Governing Law.  The rights and duties of the parties will be governed by the local law of the State of California, excluding any choice-of-law rules that would require the application of the laws of any other jurisdiction.  The parties hereto consent to the jurisdiction of the state and federal courts located in the state of California to adjudicate any disputes between such parties.
     (b)           Captions.  The captions of this Agreement are not part of the provisions hereof, rather 

 

they are included for convenience only and shall have no force or effect.
     (c)           Amendment.  The terms of this Agreement may not be amended or modified other than by a written instrument executed by the parties hereto or their respective successors.
     (d)           Withholding.  The Company may withhold from any amounts payable under this Agreement all federal, state, local and/or foreign taxes, as the Company determines to be legally required pursuant to any applicable laws or regulations.
     (e)           No Waiver.  Failure by either party hereto to insist upon strict compliance with any provision of this Agreement or to assert any right such party may have hereunder shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement.
     (f)           Severability.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.
     (g)           Construction.  The parties hereto acknowledge and agree that each party has reviewed and negotiated the terms and provisions of this Agreement and has had the opportunity to contribute to its revision.  Accordingly, the rule of construction to the effect that ambiguities are resolved against the drafting party shall not be employed in the interpretation of this Agreement.  Rather, the terms of this Agreement shall be construed fairly as to both parties hereto and not in favor or against either party by the rule of construction abovementioned.
     (h)           Assignment.  This Agreement is binding on and for the benefit of the parties hereto and their respective successors, heirs, executors, administrators and other legal representatives.  Neither this Agreement nor any right or obligation hereunder may be assigned by Executive.
(i)           Entire Agreement.  As of the Effective Date, this Agreement, together with the Confidentiality Agreement, any applicable Stock Option Agreement and RSU Agreement and the COC Agreement, constitute the final, complete and exclusive agreement and understanding between Executive and the Company with respect to the subject matter hereof and replace and supersede any and all other agreements, offers or promises, whether oral or written, made to Executive by the Company or any representative thereof.
     (j)           Counterparts.  This Agreement may be executed in several counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument.
  
[Signature Page Follows]

 

 

IN WITNESS WHEREOF, Executive has hereunto set his hand and, pursuant to the authorization from the Committee, the Company has caused these presents to be executed in its name on its behalf, all as of the day and year first above written.
 
	
				
	 
	ON ASSIGNMENT, INC.
	 

	 
	 
	 
	 

	 
	 
	/s/Peter T. Dameris
	 

	 
	 
	Name: Peter Dameris
	 

	 
	 
	Title: Chief Executive Officer
	 

	 
	 
	 
	 

	
				
	 
	 
	 

	 
	 
	 
	 

	 
	 
	/s/Edward L. Pierce
	 

	 
	 
	Name: Edward L. Pierce
	 

	 
	 
	Title: Chief Financial Officer
	 

	 
	 
	 
	 

 

 

 

Exhibit A
Confidential Information and Employee Development Agreement

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