Document:

Exhibit
10.45

 

August 2, 2004

 

Mr. Claes Glassell

 

Dear Claes,

 

As we discussed, this letter (the “Agreement”) sets forth the terms and
conditions of your employment with Cerus Corporation (“Cerus” or the
“Company”).  This Agreement supersedes
and replaces your offer letter dated April 27, 2004, which shall have no
further force or effect.

 

Position, Duties, Reporting
Relationship and Board Membership

 

You will serve in an executive capacity and shall perform the duties of
the President and Chief Executive Officer (“CEO”).  In this position, you will report to the Company’s Board of
Directors (the “Board”), and you will have full responsibility for all
activities of the Company and be required to undertake the duties and
responsibilities assigned to you by the Board. 
Your overall mandate will include improvement of commercial performance
of the Company’s existing products, completion of clinical trials on new
products, and providing vision and focused resources on development and
implementation of new applications of the Company’s technologies with the
highest potential for success and profitability.  If your employment with the Company terminates for any reason,
you agree to tender your resignation as a director of the Board, if requested
by the Company, to be effective as of your last day of your employment with the
Company or any earlier date specified by the Company.

 

Base Salary and Bonus Compensation

 

Your initial annual base salary shall be $415,000, less standard
payroll deductions and withholdings and paid semi-monthly in accordance with
the Company’s normal payroll schedule.

 

You
will be eligible to participate in the Company’s Cash Bonus Plan for Senior
Management of Cerus Corporation, in accordance with the terms, conditions and
limitations of the plan.  You will be
eligible to receive an annual bonus for calendar year 2004 if you remain an
employee in good standing through March 1, 2005 (the expected bonus payout
date).  Provided this condition is met,
you are guaranteed a minimum 2004 annual bonus of $175,000, which bonus amount
is subject to increase to up to a total of seventy-five percent (75%) of the
base salary amount you actually receive from the Company during 2004.  For calendar year 2005, you may be eligible
to receive an annual bonus, which, at the Board’s sole discretion, may consist
of both cash compensation and

 

 

a restricted stock grant (at an approximate split of 60% cash and 40%
restricted stock), with a total combined value of up to one hundred percent
(100%) of the base salary amount you receive in 2005, if you remain an employee
in good standing through March 1, 2006 (the expected bonus payout date).  Other than for calendar year 2004, annual
bonuses are not guaranteed and such bonuses, if any, are awarded at the sole
discretion of the Board based on its assessment of your performance and the
Company’s performance with respect to corporate and personal objectives.  You must remain employed through the end of
the year in order to earn and be eligible to receive a bonus, and no pro rata
or partial bonuses will be provided.  No
bonuses are earned until the Board confirms such bonuses in writing.  The Board shall have the sole discretion to
change or eliminate the annual bonus program at any time, and to determine the
amount of bonus earned, if any.

 

The Board may modify your compensation from time to time as it deems
necessary.

 

Stock Option Grant

 

As approved by the Board, you received a stock option to purchase five
hundred thousand (500,000) shares of the Company’s Common Stock pursuant to the
Company’s 1999 Equity Incentive Plan (the “Plan”) at an exercise price equal to
the fair market value of such shares at the time of grant as determined by the
Board (the “Option”).  The Option shall
be subject to the terms and conditions of the Plan and your Option agreement,
which will include the following four-year vesting schedule subject to your
continued employment with the Company: 
one eighth (1/8th) of the shares subject to the Option shall
vest six (6) months after the vesting commencement date, and one forty-eighth
(1/48th) of the shares subject to the Option shall vest on the first
day of each month thereafter.

 

Employee Benefits and Vacation
Accrual Rate

 

Subject to the terms, conditions and limitations of the Company’s
benefit plans, you will be eligible to participate in Cerus’ standard employee
benefits plans which include employer-subsidized medical, dental and vision
care coverage, long term disability insurance, life insurance, a 401(k) plan,
and, upon meeting eligibility requirements, participation in Cerus’ Employee
Stock Purchase Plan.  The Employee Stock
Purchase Plan gives employees an opportunity to obtain an equity position in
Cerus Corporation at a favorable price. 
You will accrue paid vacation at an initial annual rate of four (4)
weeks per completed year of active employment. 
Cerus may modify benefits and vacation accrual rate from time to time as
it deems necessary.

 

Relocation Assistance Benefits

 

To assist with your relocation from Connecticut to the San Francisco Bay
Area, the Company will provide the following reimbursements to you:  (a) your actual and reasonable out-of-pocket
costs to move your household goods and other personal property to the Bay Area;
(b) the closing costs (excluding real estate commissions) caused by the sale of
your residence in Connecticut and by the purchase of a new residence in the Bay
Area; (c) your reasonable temporary housing costs in the Bay Area

 

 

during your first three (3) months of employment or until you move into
a new residence in the Bay Area, whichever occurs first; and (d) your out-of
pocket costs for a reasonable number of round trip airfare tickets to/from your
Connecticut residence and the Bay Area, such tickets to be used by either or
both of you or your spouse.  It is
expected that all reimbursements made to you under this paragraph will not
exceed a total of $100,000 in the aggregate. 
In order to receive these reimbursements, you must provide
documentation, satisfactory to the Company, of your costs and submit completed
expense reports.

 

Compliance with Company Policies;
Proprietary Information and Inventions Agreement

 

As a Company employee, you will be expected to abide
by Company policies and procedures and acknowledge in writing that you have
read and will comply with the Company’s Employee Handbook.  Furthermore, you must read, sign and comply
with the enclosed Employee Proprietary Information and Inventions Agreement
(the “Proprietary Information Agreement”) as a condition of your employment.

 

Third
Party Information

 

In your work for the Company, you will be expected not
to use or disclose any confidential information, including trade secrets, of
any former employer or other third party to whom you have an obligation of
confidentiality.  Rather, you will be
expected to use only that information which is generally known and used by
persons with training and experience comparable to your own, which is common
knowledge in the industry or otherwise legally in the public domain, or which
is otherwise provided or developed by the Company.  You agree that you will not bring onto Company premises or use in
your work for the Company, any unpublished documents or property belonging to
any former employer or other third party that you are not authorized to use or
disclose.  By accepting employment with
the Company, you represent that you will be able to perform your job duties
within these guidelines and that you are not subject to any contractual or
other obligations that could restrict your activities on behalf of the Company.

 

Outside Activities

 

Throughout your
employment with the Company, you may engage in civic and not-for-profit
activities so long as such activities do not interfere with the performance of
your duties hereunder or present a conflict of interest with the Company.  You may not engage in other employment or
undertake any other business activities unless you obtain the prior written
consent of the Board.

 

During your employment by
the Company, except on behalf of the Company, you will not directly or indirectly
serve as an officer, director, stockholder, employee, partner, proprietor,
investor, joint venturer, associate, representative or consultant of any other
person, corporation, firm, partnership or other entity whatsoever known by you
to compete directly with the Company, anywhere in the world, in any line of
business engaged in (or planned to be engaged in) by the Company; provided,
however, that you

 

 

may purchase or otherwise acquire up to (but not more than) one percent
(1%) of any class of securities of any enterprise (but without participating in
the activities of such enterprise) if such securities are listed on any
national or regional securities exchange or have been registered under Section
12(g) of the Securities Exchange Act of 1934, as amended.

 

At-Will Employment Relationship

 

Your
employment relationship is terminable at-will. 
This means that either you or the Company can terminate your employment
at any time, with or without Cause (defined below), and with or without advance
notice.  In the event that you resign
from your employment, we request that you provide at least two (2) weeks
advance written notice.  This at-will
employment relationship can only be changed in a written agreement approved by the
Board and signed by you and a duly authorized member of the Board.

 

Severance Benefits

 

In the event that the Company terminates your
employment without Cause, and if you first sign, date, and deliver to the Company a
separation agreement that includes a general release of all known and unknown
claims in the form provided to you by the Company, and you allow this
separation agreement to become effective,
then you will receive, as your sole severance benefits (collectively, the
“Severance Benefits”):  (a) severance
pay equal to twelve (12) months of your base salary in effect as of the
termination date, less required deductions and withholdings, paid in the form
of salary continuation on the Company’s standard payroll dates (beginning with
the first payroll date following the effective date of the required separation
agreement); (b) provided that you timely elect continued group health insurance
coverage through federal COBRA law, the Company will pay your COBRA premiums
sufficient to continue your group health insurance coverage at the same level
in effect as of your termination date for twelve (12) months after your
termination or until you become eligible for group health insurance coverage
through a new employer, whichever occurs first; and (c) accelerated vesting of
any unvested shares subject to the Option (and any other subsequently provided
option grants) such that all shares will be fully vested and immediately
exercisable effective as of the employment termination date.

 

For the purposes of this Agreement, “Cause” for
termination shall mean
the Company’s termination of your employment for any of the following
reasons:  (a) you are convicted of any
felony or of any crime involving moral turpitude (including a no contest or
guilty plea); (b) you participate in any fraud or act of dishonesty against the
Company; (c) you willfully breach your duties to the Company, including
insubordination, misconduct, excessive absenteeism, or persistent
unsatisfactory performance of job duties; (d) you intentionally damage or
willfully misappropriate any property of the Company; (e) you materially
breach any written agreement with the Company (including, but not limited to,
your Proprietary Information Agreement); or (f) you engage in conduct that
demonstrates unfitness to serve as reasonably determined by the Board.  Notwithstanding the foregoing, prior to a
termination for Cause falling within (c) and (f) of the foregoing Cause
definition, the Board must provide you with written notice of your
unsatisfactory

 

 

conduct and a period of thirty (30) days to cure such conduct, except
that such written notice and opportunity to cure are not required if the
conduct is not capable of being cured. 
In the event that your employment is terminated for Cause or your
employment terminates at your request for any reason, Cerus shall have no
obligation to pay any Severance Benefits.

 

Change of Control Benefits

 

If, within twelve (12) months after a Change of Control (defined
below), your employment is terminated without Cause by the Company or
terminated due to your Good Reason Resignation (defined below), and in either case if you also first sign,
date, and deliver to the Company a separation agreement that includes a general
release of all known and unknown claims in the form provided to you by the
Company and you allow this separation agreement to become effective, then in lieu of receiving the Severance
Benefits, you will be eligible to receive the following as your sole benefits
(collectively, the “Change of Control Benefits”): (a) severance pay equal to eighteen (18) months of your base salary in
effect as of the termination date, less required deductions and withholdings,
paid in the form of salary continuation on the Company’s standard payroll dates
(beginning with the first payroll date following the effective date of the
required separation agreement); (b) provided that you timely elect continued
group health insurance coverage through federal COBRA law, the Company will pay
your COBRA premiums sufficient to continue your group health insurance coverage
at the same level in effect as of your termination date for eighteen (18)
months after your termination or until you become eligible for group health
insurance coverage through a new employer, whichever occurs first; and (c)
accelerated vesting of any unvested shares subject to the Option (and any other
subsequently provided option grants) such that all shares will be fully vested
and immediately exercisable effective as of the employment termination date.

 

For the purposes
of this Agreement, a “Change of Control” shall mean:  (a) a sale, lease or other disposition of all or substantially
all of the assets of the Company; (b) a merger or consolidation in which the
Company is not the surviving corporation; or (c) a reverse merger in which the
Company is the surviving corporation but the holders of the Company’s
outstanding voting stock immediately prior to such transaction own, immediately
after the closing of the transaction, securities representing less than fifty
percent (50%) of the voting stock of the Company or other surviving entity.

 

For the purposes of this Agreement, your “Good
Reason Resignation” shall mean your resignation within twelve (12) months after
a Change of Control because the Change of Control resulted, without your
consent, in:  (a) a relocation of your
assigned office more than thirty-five (35) miles from its location immediately
prior to the Change of Control; (b) a material decrease in your base salary
(except for salary decreases generally applicable to the Company’s other
executive employees); or (c) a material reduction in the scope of your duties and
responsibilities from your duties and responsibilities in effect immediately
prior to the Change of Control.

 

 

Miscellaneous

 

This Agreement, together
with your Proprietary Information Agreement, forms the complete and exclusive
statement of your employment agreement with Cerus.  It supersedes any other agreements or promises made to you by
anyone, whether oral or written, including but not limited to the April 27,
2004 offer letter.  Changes in your
employment terms, other than those changes expressly reserved to the Company’s
or Board’s discretion in this letter, require a written modification approved
by the Board and signed by you and a duly authorized director of the Board.  Each party has carefully read this
Agreement, has been afforded the opportunity to be advised of its meaning and
consequences by your or its respective attorneys, and signs the same of your or
its own free will.  This Agreement can be
signed in counterparts, and facsimile signatures shall be deemed equivalent to
original signatures.  As required by
law, your employment is subject to satisfactory proof of your right to work in
the United States.

 

Please sign below to indicate your acceptance of these terms and
conditions of your employment relationship. 
We look forward to your favorable reply and to a productive and exciting
work relationship.

 

Sincerely,

 

	
  BJ Cassin

  
	
  Chairman of the Board

  
	
  Cerus Corporation

  
	
   

  
	
  cc:

  	
  Mr. Bruce Cozadd

  
	
   

  	
  Mr. Ray Larkin

  
	
   

  	
  Mr. P. Anthony Price

  

 

	
  Accepted:

  	
   

  
	
   

  	
   

  
	
  /s/  Claes
  Glassell

  	
   

  	
  Date

  	
  August 5, 2004

  	
   

  
	
  Claes Glassell

  	
   

  
					

 

Enclosure:  Employee Proprietary Information and
Inventions AgreementExhibit
10.1

 

 

ON ASSIGNMENT, INC.

 

CHANGE IN
CONTROL SEVERANCE PLAN

 

AND

 

SUMMARY
PLAN DESCRIPTION

 

 

Plan Effective
Date:  February 12, 2004

As Amended: 
August 8, 2004

 

 

ON
ASSIGNMENT, INC.

CHANGE IN CONTROL SEVERANCE PLAN

AND

SUMMARY PLAN DESCRIPTION

 

The On Assignment, Inc.
Change in Control Severance Plan (the “Plan”) is primarily designed to provide
eligible employees of On Assignment, Inc. (the “Company”) whose employment is
terminated on or after February 12, 2004 with separation pay in the event
of an involuntary termination.

 

This Plan is designed to
be an “employee welfare benefit plan,” as defined in Section 3(1) of the
Employee Retirement Income Security Act of 1974, as amended (“ERISA”).  This Plan is governed by ERISA and, to the
extent applicable, the laws of the State of California.  This document constitutes both the official
plan document and the required summary plan description under ERISA.

 

I.                                         ELIGIBILITY

 

You will be an Eligible
Employee for purposes of receiving severance benefits under the Plan if:

 

•                  you are a regular, full-time employee of the Company and are
identified on Exhibit A (to be supplied separately);

 

•                  your active employment with the Company is Involuntarily
Terminated (within the meaning set forth below) within the eighteen (18) month
period following a Change in Control;

 

•                  you
execute the General Release of All Claims (the “General Release”), a copy of
which is attached as Exhibit B, within five (5) business days after your
termination date or, if you are age forty (40) or over, you execute the General
Release, a copy of which is attached as Exhibit C, within forty-five (45)
business days after your termination; and

 

•                  you are not in one of the excluded categories listed
below.

 

Excluded
categories of employees. You are not eligible for
severance benefits under this Plan if:

 

•                  you
are a temporary employee, part-time employee working fewer than 30 hours per
week (no minimum number of hours shall apply to salaried employees),
probationary employee or student employee hired to be placed on assignment with
clients of the Company;

 

•                  you have a separate change in control, severance or similar
agreement or arrangement with the Company that specifically provides that you
are not eligible to participate in the Plan;

 

 

•                  you voluntarily terminate your employment, unless your
termination constitutes an “Involuntary Termination” as defined below;

 

•                  you
are employed with a successor employer which directly or indirectly acquires (i) all or any portion of the assets or operations of the
Company or any subsidiary, (ii) all or any portion of the outstanding capital
stock of the Company, or (iii) fifty percent (50%) or more of the capital stock
of any subsidiary of the Company. However, you would be eligible for severance
benefits pursuant to the terms of the Plan upon a subsequent termination by the
successor employer within 18 months following a Change in Control; or

 

•                  you are dismissed for Cause, whether or not you prior to
your dismissal you received notice of a termination which would otherwise
qualify you for severance benefits.

 

II.                                     HOW
THE PLAN WORKS

 

If you are eligible for
severance benefits under the Plan, the amount of your severance pay will be
determined in accordance with the guidelines set forth below, subject to the Golden
Parachute Tax limitation set forth below. 
You will receive your severance pay in a lump-sum payment (with
appropriate taxes deducted or withheld) which will be made as soon as
administratively practicable after the occurrence of the following events:

 

•                  your Involuntary Termination within eighteen months after a
Change in Control;

 

•                  the Company’s receipt of your executed General Release; and

 

•                  the expiration of any rescission period applicable to your
executed General Release.

 

Severance Guidelines

 

If your
employment is Involuntarily Terminated within eighteen
(18) months after a Change in Control and you are an Eligible Employee, you
will be paid:

 

•                  all Accrued Compensation and a Pro-Rata Bonus;

 

•                  300%
of the Eligible Employee’s Annual Base Pay and Target Bonus, plus benefits
continuation for eighteen months, if the Eligible Employee was the Chief
Executive Officer of the Company immediately before the Change in Control;

 

•                  275%
of the Eligible Employee’s Annual Base Pay and Target Bonus plus benefits
continuation for eighteen months, if the Eligible Employee was an executive
vice president and Chief Operating Officer of the Company immediately before
the Change in Control;

 

2

 

•                  250%
of the Eligible Employee’s Annual Base Pay and Target Bonus plus benefits
continuation for eighteen months, if the Eligible Employee was an executive
vice president and Chief Financial Officer of the Company immediately before
the Change in Control;

 

•                  200%
of the Eligible Employee’s Annual Base Pay and Target Bonus plus benefits
continuation for eighteen months, if the Eligible Employee was a senior vice
president of the Company and/or president of a division of the Company (whether
or not an executive officer) immediately before the Change in Control;

 

•                  75%
of the Eligible Employee’s Annual Base Pay and Target Bonus plus benefits
continuation for nine months, if the Eligible Employee was a vice president or
corporate controller (whether or not an executive officer), of the Company
immediately before the Change in Control;

 

•                  1
month of the Eligible Employee’s Annual Base Pay and Incentive Compensation for
each year or partial year of service to the Company as an employee, up to a
maximum of 6 months of Annual Base Pay, with a minimum of two months of Annual
Base Pay, if the Eligible Employee was a “director,” “assistant-director,”
“manager,” “regional manager,” or “Senior Staffing Consultant” immediately
before the Change in Control;

 

•                  1
month of the Eligible Employee’s Annual Base Pay for each year or partial year
of service to the Company as an employee, up to a maximum of 3 months of Annual
Base Pay, with a minimum of one month of Annual Base Pay, if the Eligible
Employee was an exempt employee of the Company (other than those employees
described above) immediately before the Change in Control; or

 

•                  1
week of the Eligible Employee’s Annual Base Pay for each year or partial year
of service to the Company as an employee, up to a maximum of 3 months of Annual
Base Pay, with a minimum of one week of Annual Base Pay, for all other Eligible
Employee not included in the above categories.

 

Accrued Compensation
shall mean an amount which shall consist of all amounts earned or accrued
through the termination date but not paid as of the termination date including
(i) Annual Base Pay, (ii) reimbursement for
reasonable and necessary expenses incurred by you on behalf of the Company
during the period ending on the termination date, (iii) vacation and sick leave
pay (to the extent provided by Company policy or applicable law), and (iv)
incentive compensation (if any) earned in respect of any period ended prior to
the termination date.  It is expressly
understood that incentive compensation shall have been “earned” as of the time
that the conditions to such incentive compensation have been met, even if not
calculated or payable at such time.

 

Annual Base Pay
generally means your annualized base salary at the rate in effect during the
last regularly scheduled payroll period immediately preceding the occurrence of
the Change in Control and does not include, for example, bonuses,
overtime compensation, incentive pay, fringe benefits, sales commissions or
expense allowances.

 

3

 

Cause
means your willful breach of duty unless waived by the Company (which willful
breach is limited to your deliberate and consistent refusal to perform your
duties or the deliberate and consistent refusal to conform to or follow any
reasonable policy adopted by the Company provided you have had prior written
notice of such refusal and an opportunity of at least thirty (30) days to cure
such refusal), your unauthorized use or disclosure of confidential information
or trade secrets of the Company, your breach of non-competition or
non-solicitation agreements, your conviction of a felony under the laws of the
United States or any state thereof, or your gross negligence.

 

Change in Control
shall be deemed to occur upon the consummation of any of the following
transactions:

 

1.                                       a
merger or consolidation in which the Company is not the surviving entity,
except for a transaction the principal purpose of which is to change the state
of the Company’s incorporation or a transaction in which 50% or more of the
surviving entity’s outstanding voting stock following the transaction is held
by holders who held 50% or more of the Company’s outstanding voting stock prior
to such transaction; or

 

2.                                       the sale, transfer or other disposition of all or
substantially all of the assets of the Company; or

 

3.                                       any
reverse merger in which the Company is the surviving entity, but in which 50%
or more of the Company’s outstanding voting stock is transferred to holders
different from those who held the stock immediately prior to such merger; or

 

4.                                       the acquisition by any person (or entity) directly or
indirectly of 50% or more of the combined voting power of the outstanding
shares of Company capital stock; or

 

5.                                       during
any period of two (2) consecutive years (not including any period prior to
February 12, 2004), individuals who at the beginning of such period
constitute the Board (and any new director, whose election by the Company’s
stockholders was approved by a vote of at least two-thirds (2/3) of the
directors then still in office who either were directors at the beginning of
the period or whose election or nomination for election was so approved), cease
for any reason to constitute a majority thereof; provided,
however, that any individual becoming a director subsequent to the
date hereof whose election, or nomination for election by the Company’s
stockholders, was approved by a vote of at least a majority of the directors
then comprising the Board on the date hereof (the “Incumbent Board”)
shall be considered as though such individual were a member of the Incumbent
Board, but excluding, for purposes of this proviso, any such individual whose
initial assumption of office occurs as a result of an actual or threatened
election contest with respect to the election or removal of directors or other
actual or threatened solicitation of proxies or consents by or on behalf of a
Person other than the Board.

 

Incentive Compensation
shall mean 100% of the commission, bonus or other incentive-type pay paid to
you (excluding stock options) for the fiscal year immediately preceding the
Change in Control.

 

4

 

Involuntary Termination
shall mean the termination of your employment with the Company (or, if
applicable, successor entity) other than by reason of death or disability:

 

(A)                              involuntarily
upon your discharge or dismissal other than for Cause, or

 

(B)                                upon
your resignation following (I) a reduction in your level of Annual Base
Pay or any Target Bonus, (II) a material reduction in your benefits or
(III) a relocation of your place of employment which is more than 35 miles
from your place of employment prior to the Change in Control, provided and
only if such change or reduction is effected without your written
concurrence, or

 

(C)                                upon
your resignation in the case of an employee who was an executive officer or
vice president immediately before the applicable Change in Control following a
change in the employee’s position with the Company (or, if applicable, with the
successor entity) that is effected without the employee’s consent and
materially reduces his or her level of responsibility or authority.

 

Pro Rata Bonus
means an amount equal to 100% of the target bonus that you would have been
eligible to receive for the Company’s fiscal year in which your employment terminates
following a Change of Control, multiplied by a fraction, the numerator of which
is the number of days in such fiscal year through the Termination Date and the
denominator of which is 365.

 

Target Bonus
shall mean the bonus which would have been paid to you for full achievement of
specific performance objectives pertaining to the business of the Company or
any of its specific business units or divisions, or to individual performance
criteria applicable to you, which objectives have been established by the Board
of Directors (or the Compensation Committee thereof) for the year in
question.  “Target
Bonus” shall not mean the “maximum bonus” which you might have
been paid for overachievement of such performance objectives or criteria or any
purely discretionary bonus.

 

Golden Parachute Tax
Gross-Up

 

In the event that any
payment or benefit made or provided to or for your benefit in connection with
this Plan and/or your employment with the Company or the termination thereof (a
“Payment”) is determined to be subject to any excise tax (“Excise
Tax”) imposed by Section 4999 of the Code (or any successor to such
Section), the Company shall pay to you, prior to the time any Excise Tax is
payable with respect to such Payment (through withholding or otherwise), an
additional amount (a “Gross-Up Payment”) which, after the imposition of
all income, employment, excise and other taxes, penalties and interest thereon,
is equal to the sum of (i) the Excise Tax on such
Payment plus (ii) any penalty and interest assessments associated with
such Excise Tax.  The determination of
whether any Payment is subject to an Excise Tax and, if so, the amount and time
of any Gross-Up Payment pursuant to this Plan shall be made by an independent auditor
(the “Auditor”) selected and paid by the Company.  The parties shall cooperate with each other
in connection with any proceeding or claim relating to the existence or amount
of any liability for Excise Tax.

 

5

 

III.                                 OTHER
IMPORTANT INFORMATION

 

Plan Administration.  As the Plan Administrator, the Company has
full discretionary authority to administer and interpret the Plan, including
discretionary authority to determine eligibility for benefits under the Plan
and the amount of benefits (if any) payable per participant. Any determination
by the Plan Administrator will be final and conclusive upon all persons.  When benefits are due, they will be paid from
the general assets of the Company.  The
Company is not required to establish a trust to fund the Plan.  The benefits provided under this Plan are not
assignable and may be conditioned upon your compliance with any confidentiality
agreement you have entered into with the Company or upon your compliance with
any Company policy or program communicated to you in writing.

 

Claims Procedure.  If you believe you are incorrectly denied a
benefit or are entitled to a greater benefit than the benefit you receive under
the Plan, you may submit a signed, written application to the Plan
Administrator within ninety (90) days of your termination.  You will be notified of the approval or
denial of this claim within ninety (90) days of the date that the Plan
Administrator receives the claim, unless special circumstances require an
extension of time for processing the claim. 
If your claim is denied, the notification will state specific reasons
for the denial and you will have sixty (60) days from receipt of the written
notification of the denial of your claim to file a signed, written request for
a review of the denial with the Plan Administrator.  This request should include the reasons you
are requesting a review, facts supporting your request and any other relevant
comments.  Pursuant to its discretionary
authority to administer and interpret the Plan and to determine eligibility for
benefits under the Plan, the Plan Administrator will generally make a final,
written determination of your eligibility for benefits within sixty (60) days
of receipt of your request for review.

 

Plan Terms.  Except as otherwise set forth herein, this
Plan supersedes any and all prior separation, severance and salary continuation
arrangements, programs and plans which were previously offered by the Company
for the purpose of paying benefits to any Eligible Employee upon a termination
following a Change in Control, including pursuant to an employment agreement or
offer letter.  Nothing in this Plan shall
affect an Eligible Employee’s right to severance benefits under circumstances
not involving a termination following a Change in Control.  In no event, however, shall any individual
receive severance benefits under both this Plan and
any other  separation, severance pay or salary
continuation program, plan or other arrangement with the Company.

 

Plan Amendment or
Termination.  The
Company reserves the right to terminate or amend the Plan at any time upon the
vote of a two-thirds majority of the Board of Directors; provided, however,
that no amendment which materially impairs the rights of an Eligible Employee
under the Plan may be made after the occurrence of a Change in Control or after
discussions have commenced with another entity which results in the occurrence
of a Change in Control within 270 days of when such discussions commenced.  Any termination or amendment of the Plan may
be made effective immediately with respect to any benefits not yet paid,
whether or not prior notice of such amendment or termination has been given to
affected employees.

 

6

 

Taxes.  The Company will withhold all applicable
taxes and other payroll deductions from any payment made pursuant to this Plan.

 

No Right To Employment.  This Plan does not provide you with any right
to continue employment with the Company or affect the Company’s right, which
right is hereby expressly reserved, to terminate the employment of any
individual at any time for any reason with or without Cause.

 

IV.                                STATEMENT
OF ERISA RIGHTS

 

As a participant in the
Plan, you are entitled to certain rights and protections under the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”).  ERISA provides that all Plan participants
shall be entitled to:

 

1.                                       Examine,
without charge, at the Plan Administrator’s office, all Plan documents,
including all documents filed by the Plan with the U.S. Department of Labor.

 

2.                                       Obtain
copies of all Plan documents and other Plan information upon written request to
the Plan Administrator.  The Plan
Administrator may make a reasonable charge for the copies.

 

3.                                       Receive
a summary of the Plan’s annual financial report.

 

4.                                       File
suit in a federal court, if you, as a participant, request materials and do not
receive them within thirty (30) days of your request.  In such a case, the court may require the
Plan Administrator to provide the materials and to pay you a fine of up to $110
for each day’s delay until the materials are received, unless the materials
were not sent because of reasons beyond the control of the Plan Administrator.

 

In addition to creating
rights for certain employees of the Company under the Plan, ERISA imposes
obligations upon the people who are responsible for the operation of the
Plan.  The people who operate the Plan
(called “fiduciaries”) have a duty to do so prudently and in the interest of
the Company’s employees who are covered by the Plan.

 

No one, including your
employer or any other person, may fire you or otherwise discriminate against
you in any way to prevent you from obtaining a benefit to which you are
entitled under the Plan or from exercising your rights under ERISA.

 

If your claim for a
severance benefit is denied or ignored, in whole or in part, you have a right
to file suit in a federal or a state court. 
If Plan fiduciaries are misusing the Plan’s assets (if any) or if you
are discriminated against for asserting your rights, you may seek assistance
from the U.S. Department of Labor or file suit in a federal court.  The court will decide who should pay court
costs and legal fees.  If you are successful
in your lawsuit, the court may, if it so decides, order the party you have sued
to pay your legal costs, including attorney fees.  However, if you lose, the court may order you
to pay these costs and fees, for example, if it finds that your claim or suit
is frivolous.

 

7

 

If you have any questions
about the Plan, this statement or your rights under ERISA, you should contact
the Plan Administrator or the nearest Area Office of the  Employee Benefits Security
Administration, listed in your telephone directory, or the Division of Technical
Assistance and Inquiries, Employee Benefits Security Administration, U.S.
Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C. 20210

 

8

 

ADDITIONAL
PLAN INFORMATION

 

	
  Name of Plan:

  	
   

  	
  On Assignment, Inc.
  Change in Control Severance Plan

  
	
  Company Sponsoring
  Plan:

  	
   

  	
  On Assignment, Inc.

  26651 West Agoura Road

  Calabasas, California  91302

  
	
  Employer Identification
  Number:

  	
   

  	
  95-4023433

  
	
  Plan Number:

  	
   

  	
  505

  
	
  Plan Year:

  	
   

  	
  The calendar year; the
  first plan year is a short plan year starting February 12, 1998 and
  ending December 31, 1998

  
	
  Plan Administrator:

  	
   

  	
  On Assignment, Inc.

  26651 West Agoura Road

  Calabasas, California 91302

  (818) 878-7900

  
	
  Agent for Service of
  Legal Process:

  	
   

  	
  Plan Administrator

  
	
  Type of Plan:

  	
   

  	
  Severance Plan/Employee
  Welfare Benefit Plan

  
	
  Plan Costs:

  	
   

  	
  The cost of the Plan is
  paid by On Assignment, Inc.

  

 

9

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