Document:

Exhibit 10.40 - 2014.12.31

Exhibit D
                                        
Execution Version

CDI Corp.   

PERFORMANCE UNITS  

1.  Grant of Performance Units.  CDI Corp., a Pennsylvania corporation (the “Company”) hereby grants to Daniel Hugo Malan (the “Recipient”) 142,052 Performance Units (“PSU”).  This Grant is subject to the terms, definitions and provisions of the Plan, which is incorporated herein by reference.  In the event of a conflict between the terms of this agreement (this “Agreement’) and the Plan, this Agreement will prevail.  Notwithstanding anything contained in this Agreement to the contrary, the maximum amount payable hereunder is $5,000,000.  

2.  Definitions.  All capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Plan. 
(a) “Cause” shall have the meaning set forth in the Employment Agreement. 
(b)    “CDI Stock” means the Common Stock. 
(c)    “Committee” means the Compensation Committee of the Board or its successor.
(d)    “Daily Value” on any date shall mean the sum of (x) the closing price of actual sales of Common Stock on the New York Stock Exchange (“NYSE”) on such date or, if there are no such sales on such date, the closing price of Common Stock on the NYSE on the last preceding date on which there was a sale; or if Common Stock is not then listed on the NYSE, (i) the per share closing price on such date on the primary U.S. national securities exchange on which Common Stock is listed or, if there are no such sales on such date, the closing price of Common Stock on such exchange on the last preceding date on which there was a sale or (ii) if not so listed and Common Stock is publically traded on an inter-dealer quotation system, the closing price on such date on such system, or, if there are no such sales on such date, the closing price of Common Stock on such system on the last preceding date on which there was a sale plus (y) the aggregate per share Extraordinary Cash Dividends having a record date that occurs on or after the commencement of the Measurement Period but on or before the date on which Daily Value is being determined.  Notwithstanding the foregoing, during the Sale Period, the Daily Value shall equal 83.33% of the amount determined in the preceding sentence.
(e)    “Date of Grant” means October 27, 2014. 
(f)    “Employment Agreement” means the Recipient’s employment agreement with CDI Corporation, dated as of October 27, 2014, as the same may be amended, amended and restated and/or supplemented from time to time. 
(g)    “Extraordinary Cash Dividend” means a cash dividend paid on the CDI Stock that the Committee acting reasonably and in good faith determines is not a regular or ordinary cash dividend.  The amount of any Extraordinary Cash Dividend shall be determined by the Committee acting reasonably and in good faith.
(h)     “Good Reason” shall mean any occurrence, without the Recipient’s explicit prior written consent, of: (i) a material office relocation of 50 or more miles, (ii) a material 

12187473.4.TAX 

reduction in Recipient’s title, duties or responsibilities and (iii) a material reduction in Base Salary (as defined in the Employment Agreement).  A termination under clause (ii) shall be for Good Reason only if Recipient provides the Board with notice of the event alleged to constitute Good Reason within 30 days after Recipient’s knowledge of its occurrence, the Board fails to cure such act within 30 days after receipt of such notice and Recipient terminates his employment within 30 days after such cure period expires uncured.
(i)    “Grant” means the grant of PSUs to the Recipient which is described in Section 1 of this Agreement.  
(j)    “Maximum Hurdle” means $47.37, subject to adjustment as set forth in Section 8 below.  
(k)    “Measurement Period” shall mean the period commencing on the Date of Grant and ending on the earliest of (A) September 15, 2019, (B) the date of the termination of the Recipient’s employment with the Company or any of its Subsidiaries for any reason other than by the Company or any of its Subsidiaries without Cause or due to death or Total Disability, (C) the six month anniversary of the date of the termination of the Recipient’s employment by the Company or any of its Subsidiaries without Cause (provided that the extension of the Measurement Period under this clause (C) beyond the termination of the Recipient’s employment is conditioned on the Recipient’s execution and non-revocation of the Release in accordance with Section 7(b)(ii) of the Employment Agreement (including during the time periods set forth therein)), (D) the date of the termination of the Recipient’s employment with the Company or any of its Subsidiaries due to death or Total Disability, (E) the occurrence of a Sale of the Company or (F) the last day of the first Performance Period for which the Reference Price equals or exceeds the Maximum Hurdle.  
(l)    “Minimum Hurdle” means $31.58, subject to adjustment as set forth in Section 8 below. 
(m)    “Performance Period” means any period of 90 consecutive trading days during the Measurement Period. 
(n)    “Plan” means the CDI Corp. Amended and Restated 2004 Omnibus Stock Plan, as amended. 
(o)    “Reference Price” means, for any Performance Period, the highest number that would not exceed any of the amounts determined under the following three clauses:  (i) the average Daily Value during such Performance Period, (ii) for the 60 trading days during such Performance Period with the highest Daily Value (whether or not consecutive), such trading day with the lowest Daily Value and (iii) the lowest Daily Value during the last 20 trading days during such Performance Period.  Notwithstanding the foregoing, if a Sale of the Company occurs on or prior to the expiration of the Measurement Period, then the Reference Price for such Performance Period ending on the date of consummation of the Sale of the Company shall equal the Sale Price. 
(p)    “Reference Price Minimum Hurdle” means the greater of the Minimum Hurdle and the highest Reference Price for any previously completed Performance Period. 
(q)    “Release” shall have the meaning set forth in the Employment Agreement. 

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(r)    “Sale of the Company” shall mean any Person, or more than one Person acting as a group within the meaning of Section 409A of the Code, acquires (by merger or pursuant to an offer which was open to all shareholders) ownership of stock of the Company that constitutes more than 90 percent of all outstanding stock of the Company. 
(s)    “Sale Period” means the period commencing on the date on which a public announcement is made regarding a transaction that, if consummated, would result in a Sale of the Company and ending on the earlier of (i) the date on which a Sale of the Company is consummated, (ii) the date on which the agreement that would give rise to a Sale of the Company is terminated or (iii) the date on which the Company or the prospective acquiror publicly announces that such transaction is no longer being pursued. 
(t)    “Sale Price” means 83.33% of the sum of (x) the per-share consideration paid for CDI Stock in a Sale of the Company, plus (y) all per-share Extraordinary Cash Dividends having a record date during the Measurement Period.
(u)    “Total Disability” shall have the meaning set forth in the Employment Agreement. 
3.  General.  PSUs will be earned upon the satisfaction of both the performance requirements set forth in Section 4 (the “Performance Requirements”) and the time-based vesting requirements set forth in Section 5 (the “Time-Based Requirements”).  Subject to Section 8, all earned PSUs shall be settled in cash as set forth in Section 6.  Any PSUs that are not earned as of the end of the Measurement Period shall be immediately forfeited with no compensation or other consideration or payment due to the Recipient.  Attachment 1 hereto contains an illustration of Sections 3, 4, 5, 6, 7 and 8 hereof and the definitions of terms under Section 2 related thereto.   

4.  Performance Requirements.  The Performance Requirements shall be satisfied during any Performance Period based on the Reference Price for such Performance Period, as follows:  

		
	(a)
	If the Reference Price for a Performance Period is equal to or below the Reference Price Minimum Hurdle, then the Performance Requirements shall not be treated as being satisfied for that Performance Period unless Section 4(b) applies.

		
	(b)
	If the Reference Price for a Performance Period equals the Minimum Hurdle and no portion of the Performance Requirements were satisfied during any prior Performance Period, then the Performance Requirements shall be treated as being satisfied for $2,000,000.  For the avoidance of doubt, the Performance Requirements will be treated as being satisfied for such amount only with respect to the first Performance Period for which the Reference Price equals the Minimum Hurdle (provided that no portion of the Performance Requirements were satisfied during any prior Performance Period). 

		
	(c)
	If the Reference Price for a Performance Period exceeds the Reference Price Minimum Hurdle but is less than the Maximum Hurdle, then an additional portion of the Performance Requirements shall be satisfied such that the Performance Requirements shall be treated as being satisfied for the Performance Period being tested and all prior Performance Periods for an aggregate of $2,000,000, plus the product of (x) $3,000,000 and (y) a fraction, the numerator of which equals the difference between the Reference Price and the Minimum Hurdle and the denominator of which equals the difference between the Maximum Hurdle and the Minimum Hurdle.

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	(d)
	If the Reference Price for a Performance Period equals or exceeds the Maximum Hurdle, then an additional portion of the Performance Requirements shall be satisfied such that the Performance Requirements shall be treated as being satisfied for the Performance Period being tested and all prior Performance Periods for an aggregate of $5,000,000. 

Subject to the Committee’s certification of the satisfaction of the Performance Requirements for any Performance Period, on the last day of each such Performance Period with respect to which the Performance Requirements are satisfied as set forth herein, a number of PSUs equal to the quotient of (i) the additional amount with respect to which the Performance Requirements are treated as being satisfied in such Performance Period, divided by (ii) the Daily Value on the last day of such Performance Period (determined without regard to the last sentence of the definition of Daily Value), shall be immediately converted into their settlement amount (such PSUs that are so converted, “Performance-Satisfied PSUs”), with such settlement amount to equal the Fair Market Value of one share of CDI Stock on the last day of such Performance Period, plus the Accumulated Dividend Equivalent Value with respect to such Performance Satisfied PSU (such amount with respect to any Performance-Satisfied PSU, the “Settlement Amount” stated as a U.S. dollar amount determined at such time and with respect to all such Performance-Satisfied PSUs, the “Aggregate Settlement Amount,” which Aggregate Settlement Amount shall be the sum of all such stated U.S. dollar amounts).  The Aggregate Settlement Amount shall be paid only upon the satisfaction of the Time-Based Requirements.  If the Performance Requirements have been satisfied for at least one Performance Period during the Measurement Period, then in no event shall the Aggregate Settlement Amount determined under this Section be less than $2,000,000 nor more than $5,000,000.  If the Performance Requirements have not been satisfied for at least one Performance Period during the Measurement Period, then the Aggregate Settlement Amount shall be $0.  Any PSUs that have not become Performance-Satisfied PSUs as of the last day of the Measurement Period shall be immediately forfeited with no consideration or other compensation or payment due to the Recipient.   

5.  Time-Based Requirements.  The Time-Based Requirements will be satisfied if any of the three following conditions is met:  (i) the Recipient has been continuously employed by the Company or a Subsidiary from the Date of Grant through and including September 15, 2019, (ii) on or prior to September 15, 2019, the Recipient’s employment was terminated by the Company or any of its Subsidiaries without Cause, by the Company or any of its Subsidiaries due to Total Disability or as the result of the Recipient’s death or (iii) on or prior to September 15, 2019 but on or after the occurrence of a Sale of the Company, the Recipient terminates his employment with the Company or any of its Subsidiaries for Good Reason (and in the case of clauses (ii) and (iii), the Recipient (or his estate, as applicable) executes and does not revoke the Release, such that the Release becomes effective, within 60 days after the date of termination); provided, however, that in the event of such a termination of employment by the Company or any of its Subsidiaries due to Total Disability, the Recipient must acknowledge at the time of his termination that his termination is due to Total Disability and that he does not have any claims against the Company or any of its Subsidiaries (other than for vested benefits and earned but unpaid compensation).  If the Recipient’s employment with the Company or any of its Subsidiaries terminates on or prior to September 15, 2019 for any reason other than as described in clauses (ii) and (iii) in the first sentence of this Section 5, or if the Time-Based Requirements are not otherwise satisfied (such as by failing to timely execute the Release or not making the acknowledgement described in the immediately preceding sentence), then subject to Section 8 below, the Aggregate Settlement Amount, as well as all PSUs, including, without limitation, any that have become Performance-Satisfied PSUs, shall be immediately forfeited with no consideration or other compensation or payment due to the Recipient.  The 

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parties hereto specifically acknowledge and agree that Section 10.4 of the Plan shall not apply to this Grant.  

6.  Settlement.  If the Time-Based Requirements and any portion of the Performance Requirements have been satisfied, then the Aggregate Settlement Amount shall be paid to the Recipient in a lump sum cash payment within 30 days after September 15, 2019; provided, however, that if (x) the Time-Based Requirements are satisfied pursuant to clause (ii) or (iii) of Section 5 above excluding death, then payment of the Aggregate Settlement Amount instead shall be made within 60 days after the earlier of the day that is 6 months following Recipient’s date of termination of employment or September 15, 2019 and (y) the Time-Based Requirements are satisfied under clause (ii) of Section 5 as a result of the Recipient’s death, payment of the Aggregate Settlement Amount shall be made within 60 days after the date of such death.   The parties hereto agree that the occurrence of a Change in Control or Sale of the Company shall not accelerate the payment date (provided that the Company retains the discretion to accelerate the payment date in connection with a Sale of the Company to the extent permitted under, and in accordance with, Treasury Regulation Section 1.409A-3(j)). 

7.  Dividend Equivalents.  No dividends shall be paid with respect to any PSUs.  However, if an Extraordinary Cash Dividend has a record date during the Measurement Period, then any PSUs that have not become Performance-Satisfied PSUs as of the record date of such Extraordinary Cash Dividend shall be credited with the Common Stock per-share amount of such Extraordinary Cash Dividend as of such record date (the amount of dividend equivalents so credited on any PSU, such PSU’s “Accumulated Dividend Equivalent Value”), with such amount to be paid only as provided in Sections 4, 6 and 8.  The Accumulated Dividend Equivalent Value shall be immediately forfeited with no consideration or other compensation or payment due to the Recipient in the event that the PSUs to which such amounts relate are forfeited.   

8.  Special Vesting Election.  Notwithstanding anything contained in Sections 4, 5, 6 or 7 above or any other provision of this Agreement to the contrary, if any portion of the Performance Requirements have been satisfied on or after the second anniversary of the Grant Date and prior to September 15 2018, then the Recipient may, in his sole discretion, provide the Committee with a written election to freeze the Aggregate Settlement Amount as of the date of such election, with such election to be provided between the second anniversary of the Grant Date and September 15, 2018.  Such election shall be irrevocable.  If such an election is made, then the Aggregate Settlement Amount shall be frozen as of such date (and shall not increase or decrease thereafter (except as otherwise provided in the second to last sentence of this Section 8)), and the Recipient shall fully vest in such Aggregate Settlement Amount on the earlier of (x) the first anniversary of the date on which the Committee receives such written notice of election, provided that the Recipient remains employed with the Company or any of its Subsidiaries through such first anniversary or (y) the date on which the Recipient’s employment with the Company or any of its Subsidiaries is terminated by the Company or any of its Subsidiaries without Cause or due to the Recipient’s Total Disability, by the Recipient for Good Reason following a Sale of the Company, or as the result of the Recipient’s death.  If the Recipient’s employment with the Company or any of its Subsidiaries terminates prior to such first anniversary of the Committee’s receipt of such written election for any reason other than as provided in clause (y) of the immediately preceding sentence, then (i) all PSUs hereunder (whether or not such PSUs have become Performance Satisfied PSUs) shall be immediately forfeited with no compensation, consideration or other payment due to the Recipient, (ii) the Aggregate Settlement Amount shall be deemed to be zero and (iii) the Recipient shall not be entitled to receive any compensation or payments under this Agreement.  To the extent vested in accordance with this Section 8, the Aggregate Settlement Amount shall be settled in a lump 

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sum cash payment within 30 days after September 15, 2019; provided, however, that if (A) the Recipient became vested in the Aggregate Settlement Amount under this Section 8 as the result of his termination of employment described in clause (y) above excluding death, then payment of the Aggregate Settlement Amount under this Section 8 instead shall be made within 60 days after the earlier of the day that is 6 months following Recipient’s date of termination of employment or September 15, 2019 and (B) the Recipient became vested in the Aggregate Settlement Amount under this Section 8 as a result of the Recipient’s death, payment of the Aggregate Settlement Amount under this Section 8 shall be made within 60 days after the date of such death; provided further, however, that as a condition to receiving payment of the Aggregate Settlement Amount under this Section 8 in connection with a termination of employment, the Recipient (or his estate, as applicable) must execute and not revoke the Release, such that the Release becomes effective, within 60 days after the date of termination.    

9.  Adjustments.  In the event of a reorganization, recapitalization, stock split, spin-off, split-off, split-up, stock dividend, issuance of stock rights, combination of shares, merger, consolidation or any other change in the corporate structure of the Company affecting CDI Stock, then in addition to the adjustments permitted by the Plan, the Committee shall make any equitable adjustment to the Maximum Hurdle, the Reference Price Minimum Hurdle and the Minimum Hurdle, as well as the then highest achieved Reference Price in order to prevent the dilution or enlargement of rights hereunder (it being understood that the Maximum Hurdle and Minimum Hurdle are intended to represent a 300% increase and a 200% increase, respectively, in a trading price for the CDI Stock of $15.79, and as such, if an event described above occurs, it may be necessary to adjust such Maximum Hurdle, Reference Price Minimum Hurdle, Minimum Hurdle and the then highest achieved Reference Price to continue to reflect the desired percentage increase).   

10.  Tax Withholding.  The amount of cash to be delivered to the Recipient, if any, under this Grant shall be reduced by all taxes (including, without limitation, federal, state, local or foreign income or payroll taxes) required by law to be withheld in connection with the payout relating to this Grant.  

11.  Nontransferablity of this Grant. Neither this Grant nor the PSUs may be transferred, in whole or in part, except by will or the applicable laws of descent and distribution.  
12.  Awards Policy.  This Grant is subject to the terms and conditions of the Policy on Cash Bonus Awards and Equity Awards Clawback for CDI Corp. and its Related Companies. This Grant is also subject to clawback to the extent required by Section 10D(b)(2) of the Securities Exchange Act of 1934, as determined by the applicable rules and regulations promulgated thereunder from time to time by the U.S. Securities and Exchange Commission.
13. Cancellation of PSU and Repayment of Gains.  Notwithstanding any other provision of this Agreement, if the Recipient has entered into competition with the Company or any of its Subsidiaries in breach of the non-competition covenant set forth in Section 9(i) of the Employment Agreement, the Committee may, in its discretion, at any time during the term of such non-competition covenant:  (a) cancel any PSUs and the Settlement Amount related thereto and/or (b) require the Recipient to pay to the Company an amount equal to the amount paid to the Recipient in respect of this Grant during the one-year periods prior to and after the termination of the Recipient’s employment or engagement with the Company or any of its Subsidiaries.

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14. Shareholder Rights.  Neither the Recipient nor any person to whom the Recipient’s rights shall have passed by will or by the laws of descent and distribution shall have any of the rights of a shareholder with respect to any PSUs covered by this Grant.  
15.  PSUs Do Not Affect Employment Relationship.  This Grant shall not confer upon the Recipient any right to continue in the employ or service of the Company or any of its Subsidiaries, nor interfere in any way with the right of the Company or any of its Subsidiaries to terminate the employment of the Recipient at any time.
16.  Acknowledgement.  The Recipient acknowledges receipt of a copy of the Plan and certain information related thereto and represents that he is familiar with the terms and provisions thereof, and hereby accepts this Agreement subject to all of the terms and provisions of the Plan.  The Recipient has reviewed the Plan and this Agreement in their entirety, has had an opportunity to obtain the advice of independent counsel prior to executing this Agreement and fully understands all provisions relating to this Agreement.  In addition, by entering into this Agreement and accepting this Grant, the Recipient acknowledges that: (a) this Grant is a one-time benefit and does not create any contractual or other right to receive future grants, awards or other benefits in lieu of grants; (b) the Recipient’s participation in the Plan is voluntary; (c) this Grant is not part of normal or expected compensation for any purpose, including without limitation for calculating any benefits, severance, termination, bonuses, retirement benefits or similar payments; and (d) the future value of CDI Stock is unknown and cannot be predicted, and the Recipient is not, and will not, rely on any representation by the Company or any of its personnel regarding the future value of CDI Stock.  The Recipient acknowledges that this Grant is, and fully satisfies the Company’s obligations with respect to, the PSU Award, as described in the Employment Agreement.  

17.  Code Section 409A.  This Agreement is intended to comply with, or be exempt from, Code Section 409A and shall be interpreted consistent therewith and without resulting in any increase in the amounts owed hereunder by the Company.  Notwithstanding any other provision of this Agreement to the contrary, if Recipient is a "specified employee" within the meaning of Code Section 409A and the regulations issued thereunder, and a payment or benefit provided for in this Agreement would be subject to additional tax under Code Section 409A if such payment or benefit is paid within six (6) months after Recipient’s "separation from service" (within the meaning of Code Section 409A), then such payment or benefit required under this Agreement shall not be paid (or commence) during the six-month period immediately following Recipient’s separation from service except as provided in the immediately following sentence. In such an event, any payments or benefits that would otherwise have been made or provided during such six-month period and which would have incurred such additional tax under Code Section 409A shall instead be paid to Recipient in a lump-sum cash payment on the earlier of (i) the first regular payroll date of the seventh month following the month in which the Recipient’s separation from service occurs or (ii) the 10th business day following Recipient’s death.  If Recipient’s termination of employment hereunder does not constitute a "separation from service" within the meaning of Code Section 409A, then any amounts payable hereunder on account of a termination of Recipient’s employment and which are subject to Code Section 409A shall not be paid until Recipient has experienced a "separation from service", or other permitted payment event, within the meaning of Code Section 409A.  If the 60 day Release period covers two taxable years, then to the extent required by Code Section 409A, any portion of the Aggregate Settlement Amount that otherwise would be paid in such first taxable year instead shall be withheld and paid in such second taxable year.  Neither the Company nor any of its Subsidiaries or affiliates shall have any liability or obligation to Recipient in the event that this Agreement does not comply with, or is not exempt from, Code Section 409A.

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18.  Execution of this Agreement.  If the Recipient does not sign and return this Agreement, the Company is not obligated to provide the Recipient with any benefit hereunder and may refuse to issue any cash or other payments to the Recipient in connection with this Grant.  If the Recipient receives any cash or other payments in connection with this Grant but has not signed and returned this Agreement, he will be deemed to have accepted and agreed to the terms set forth herein.

	
		
	CDI CORP.
	RECIPIENT

	 
	 

	By:       /s/ Scott J. Freidheim__
	Signature:     __/s/ D. Hugo Malan___

	     Name:  Scott J. Freidheim
	Print Name:  _D. Hugo Malan_______

	     Title:     CEO
	Date:              1-1-15____  _________

	 
	 

	 
	 

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ATTACHMENT 11  

Hypothetical 1 

		
	•
	The only Extraordinary Cash Dividend during the Measurement Period with a record date before the end of the Performance Period commencing on October 1, 2016 was $3.00 per share.  

		
	•
	Prior to the Performance Period commencing on October 1, 2016, no portion of the Performance Requirements have been satisfied. 

		
	•
	With respect to the Performance Period commencing on October 1, 2016, (i) the average Daily Value equals $33.00, (ii) the Daily Value for 30 of such trading days was $35.00, the Daily Value for another 30 of such trading days was $34.00 and the Daily Value for another 30 of such trading days was $30.00 and (iii) the lowest Daily Value during the last 20 trading days was $35.00. The Daily Value on the last day of such Performance Period was $35.00. 

		
	•
	Based on the foregoing, the Reference Price for such Performance Period is $33.00 (which is the highest number that does not exceed the amount determined under any of clause (i) ($33.00), clause (ii) ($34.00) or clause (iii) ($35.00)).  Because $33.00 is greater than the Reference Price Minimum Hurdle (which as of the end of such  Performance Period was $31.58), the Performance Requirements for the Performance Period commencing on October 1, 2016 were satisfied for $2,269,791.01 (which equals $2,000,000 + ($3,000,000 X (($33.00 - $31.58) / ($47.37 - $31.58))). 

		
	•
	Based on such achievement, the number of PSUs that will be treated as Performance Satisfied PSUs would equal 64,851.17 ($2,269,791.01 / $35.00).  Such Performance Satisfied PSUs would then be immediately converted to their Settlement Amount, which equals $2,269,791.01 (the sum of the Fair Market Value of such Performance Satisfied PSUs on the last day of such Performance Period ($2,075,237.50), plus the Accumulated Dividend Equivalent Value of such Performance Satisfied PSUs ($194,553.51)).

		
	•
	Subject to Section 8, such amount ($2,269,791.01) would then be paid as provided in Section 6 only upon the satisfaction of the Time-Based Requirements.  

Hypothetical 2

		
	•
	The facts are the same as Hypothetical 1.

		
	•
	Prior to the end of the Performance Period commencing on March 1, 2017, no additional portion of the Performance Requirements have been satisfied (beyond those satisfied under Hypothetical 1 above), nor have any additional Extraordinary Cash Dividends been declared.  

                                                                                     
1     Certain amounts on this Attachment have been rounded two decimal places for ease of illustration.  No rounding would occur in the determination of amounts actually earned.  

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	•
	With respect to the Performance Period commencing on March 1, 2017, the Reference Price is determined to be $32.00 applying the same principles as applied in Hypothetical 1.

		
	•
	Based on the foregoing, the Reference Price for such Performance Period did not exceed the Reference Price Minimum Hurdle (which at such time was $33.00), and as such, no portion of the Performance Requirements was satisfied during such Performance Period.  However, the Performance Requirements for the previous Performance Period (commencing on October 1, 2016) remain satisfied, resulting in an Aggregate Settlement Amount of $2,269,791.01 (to be paid if and only if the Time-Based Requirements are satisfied, subject to Section 8).

Hypothetical 3

		
	•
	The facts are the same as Hypotheticals 1 and 2.

		
	•
	Prior to the end of the  Performance Period commencing on July 2, 2017, no additional portion of the  Performance Requirements have been satisfied (beyond those satisfied under Hypothetical 1 above), nor have any additional Extraordinary Cash Dividends been declared.  

		
	•
	With respect to the Performance Period commencing on July 2, 2017, (i) the average Daily Value equals $36.00, (ii) 30 trading days during such period had a Daily Value of $32.00, while the other 60 trading days had a Daily Value of $38.00 and (iii) the lowest Daily Value for the last 20 trading days was $38.00.  The Daily Value on the last trading day of such Performance Period was $38.00.  

		
	•
	Based on the foregoing and applying the same principles as applied in Hypothetical 1, the Reference Price was $36.00.  Because $36.00 is greater than the Reference Price Minimum Hurdle (which as of the end of such Performance Period was $33.00 as per Hypotheticals 1 and 2 above), the Performance Requirements for the Performance Period commencing on July 2, 2017 were satisfied.  As the result of such achievement, the aggregate amount with respect to which the Performance Requirements are satisfied for such Performance Period and all prior Performance Periods equals $2,839,772.01 ($2,000,000 + ($3,000,000 X (($36.00-$31.58) / ($47.37-$31.58)).  Because the Performance Requirements were already satisfied for $2,269,791.01, the additional amount with respect to which the Performance Requirements were satisfied for the Performance Period commencing on July 2, 2017 was $569,981 ($2,839,772.01 - $2,269,791.01). 

		
	•
	Based on such achievement, the additional number of PSUs that will be treated as Performance Satisfied PSUs would equal 14,999.50 ($569,981 / $38.00).  Such Performance Satisfied PSUs would then be immediately converted to their Settlement Amount, which equals $569,981 (the sum of the Fair Market Value of such Performance Satisfied PSUs ($524,982.50), plus the Accumulated Dividend Equivalent Value of such  Performance Satisfied PSUs ($44,998.50)).

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	•
	As of the end of the Performance Period commencing on July 2, 2017, the Aggregate Settlement Amount would be $2,839,772.01 ($2,269,791.01 for the  Performance Period commencing on October 1, 2016, plus $569,981 for the  Performance Period commencing on July 2, 2017).  Subject to Section 8, such Aggregate Settlement Amount would be paid if and only if the Time-Based Requirements are satisfied. 

Hypothetical 4

		
	•
	Assume that as of December 1, 2017, the Aggregate Settlement Amount was $3,000,000 and on such date, the Recipient makes the special election described in Section 8 of the Agreement. 

		
	•
	In such event, provided that Recipient either remains employed with the Company or a Subsidiary through December 1, 2018, or prior to such date, the Recipient’s employment with the Company or any of its Subsidiaries is terminated by the Company or any of its Subsidiaries without Cause or due to the Recipient’s Total Disability, by the Recipient for Good Reason following a Sale of the Company, or as the result of the Recipient’s death, then the Recipient shall become fully vested in such amount, with such amount to be paid as provided in Section 8 of the Agreement.  

		
	•
	If, after such election is made, based on the Reference Price during a Performance Period that ends following the date such election is made, the Aggregate Settlement Amount would have increased above $3,000,000 but for such election, the Recipient shall not receive any portion of such increased Aggregate Settlement Amount.  Instead, as the result of such election, the maximum Aggregate Settlement Amount payable to the Recipient under the Agreement shall be $3,000,000.

12187473.4.TAX -11-Exhibit 10.41 - 2014.12.31

Execution Version

    
This EMPLOYMENT AGREEMENT (the “Agreement”) is entered into as of the 20th day of October, 2014 between CDI Corporation, a Pennsylvania corporation (the “Company”), and Michael S. Castleman (“Executive”).  The date on which Executive’s employment with the Company commences, which Executive agrees is required to occur no later than October 28, 2014, is referred to herein as the “Start Date.”    

WHEREAS, the Company desires to employ Executive, and Executive is willing to be employed by the Company, upon the terms and subject to the conditions hereinafter set forth. 

NOW, THEREFORE, in consideration of the mutual covenants set forth herein, and intending to be legally bound hereby, the parties agree as follows: 

Section 1.Employment.  Effective as of the Start Date, the Company hereby employs Executive, and Executive hereby accepts such employment and agrees to serve as the Company’s Executive Vice President, Corporate Development and Operations, and to render services to the Company and its subsidiaries, divisions and affiliates, during the Employment Period as are consistent with such position and as may be assigned from time to time by the Company’s Chief Executive Officer (the “CEO”).  During the Employment Period, the Executive shall report to the CEO.  
Section 2.    Indemnification; Policies.  During the Employment Period, the Executive shall be afforded the full protection of the indemnification and coverage as an insured under directors and officers liability insurance generally available to officers under the Company’s by-laws (as in effect from time to time) which protection shall survive any expiration or other termination of this Agreement and any termination of Executive’s employment in accordance with the terms of the applicable documents, and shall be subject to the policies applicable to the Company’s senior executives, as may be in effect from time to time (including, without limitation, any share ownership and incentive compensation clawback policies).
Section 3.    Term. The term of Executive’s employment under this Agreement (the “Employment Period”) shall commence as of the Start Date and shall end on the date on which his employment with the Company terminates pursuant to Section 7 of this Agreement.   
Section 4.    Extent of Services.  
(a)    General.  During the Employment Period, Executive shall devote the Executive’s entire productive time, ability and attention and give his best efforts, skills and abilities exclusively to the management and operations of the Company and its business and the business of its subsidiaries, divisions and affiliates. Executive shall perform his services hereunder at the Company’s offices in Philadelphia, Pennsylvania and at such other places as are required for the effective performance of his duties and responsibilities. During the Employment Period, Executive shall, if elected or appointed, serve as a director and/or as an executive officer of any subsidiary, division or affiliate of the Company and shall hold, without any compensation other than that provided for in this Agreement, the offices in the Company and in any such subsidiary, division or affiliate to which Executive may, at any time or from time to time, be elected or appointed.  
(b)    Outside Activities.  During the Employment Period, the Executive may not, directly or indirectly, render any services of a business, commercial or professional nature to any other person or organization, whether for compensation or otherwise, without the CEO’s 

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prior written consent.  Notwithstanding the foregoing, with the consent of the CEO, the Executive may serve on the board of directors of one company, provided that such service does not result in a conflict of interest or interfere in any respect with the Executive’s duties and obligations to the Company (in each case, as determined by the CEO).
Section 5.    Compensation and Benefits. 
(a)    Base Salary. During the Employment Period, Executive shall receive as compensation for his services a base salary at the rate of Four Hundred Thousand Dollars ($400,000) per annum payable in equal installments at such intervals as the Company pays its senior executive officers generally (the “Base Salary”).  The Base Salary shall be reviewed periodically by the Compensation Committee of the Board (the “Compensation Committee”).
(b)    Equity Compensation.  During the Employment Period, Executive shall be eligible to receive equity incentive awards pursuant to the Company’s equity compensation plans, as may be in effect from time to time.  In addition,  Executive shall be granted the following equity incentive awards:   
(i)    Time-Vested Deferred Stock.  As of the closing of the market on the Start Date, Executive will be granted a number of shares of Time-Vested Deferred Stock having a closing price on the grant date equal to $1,000,000, pursuant to the terms of the Company’s Amended and Restated 2004 Omnibus Stock Plan (the “Plan”) and a Time-Vested Deferred Stock Agreement to be entered into between Executive and the Company (the “TVDS Award”).   The actual value of the TVDS Award upon settlement may be more or less than $1,000,000, depending on stock price performance over the term of the award.  Subject to Executive’s continued employment with the Company on the applicable vesting date, 40% of the TVDS Award will vest on the second anniversary of the grant date and 30% of the TVDS Award will vest on each of the third and fourth anniversaries of the grant date.  The TVDS Award will be settled in whole shares of common stock, par value $.10 per share, of CDI Corp. (“Common Stock”) (less applicable tax withholdings) within 30 days after the applicable vesting date.   
(ii)    Performance Units.  Within a reasonable period of time after the Start Date, Executive will be granted an award of Performance Units pursuant to the terms of the Plan and a Performance Unit Agreement to be entered into between Executive and the Company (the “PSU Award”).   The PSU Award provides for a potential payout of up to $5,000,000, subject to achieving specified sustained increases in value of the Common Stock from the Start Date through the end of the performance period, which shall end no later than September 15, 2019.  If the minimum level of required performance is not achieved, the payout under the PSU Award shall be $0.00.  The measurement of the stock price hurdles (which shall be based on the “Daily Value,” “Reference Price” and the “Sale Price”) shall be consistent with the PSU Award Agreement for the CEO, dated as of September 15, 2014, but the “Minimum Hurdle” and the “Maximum Hurdle” shall be based on 2x and 3x the closing price of Common Stock on October 27, 2014, respectively.  
(c)    Annual Incentive Compensation.  During the Employment Period, the Executive shall be eligible to earn annual incentive compensation based on the achievement of such company and/or individual performance goals as may be determined by the Compensation Committee, with Executive’s target bonus opportunity to equal 70% of his Base Salary; provided, however, that (i) the bonus earned by Executive with respect to the 2014 calendar year shall be not less than 70% of the Base Salary earned by him during 2014 for active employment and (ii) the bonus earned by Executive with respect to the 2015 calendar year shall be not less than 70% 

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of his Base Salary.  Payment of any annual bonus (including the minimum guaranteed bonuses described in clauses (i) and (ii) of the immediately preceding sentence) shall be contingent on the Executive’s employment on the bonus payment date (except as otherwise provided below in Section 7(b)); provided, however, that if Executive’s employment is terminated by the Company without Cause during 2015, the minimum guaranteed bonus described in clause (ii) of the immediately preceding sentence shall be pro-rated as described in Section 7(b)(iii).
(d)    Sign-On Bonus.  The Company shall pay Executive a one-time sign on bonus in the amount of $250,000, less all applicable withholdings and deductions (the “Sign-On Bonus”).  The Sign-On Bonus shall be paid to Executive within 30 days after the Start Date.  In the event that Executive resigns from employment with the Company for any reason, or in the event that Executive’s employment is terminated by the Company for Cause, in either case, within two years after the Start Date, then Executive shall repay the gross amount of the Sign-On Bonus to the Company within 30 days after such termination of employment. 
(e)    Employee Benefits. During the Employment Period, Executive shall be eligible to participate in the Company’s employee benefit plans (such as health, medical, dental, life insurance, retirement, and deferred compensation plans), generally on the same basis as the Company’s other senior executive officers.  Executive will also be eligible to participate in the Company’s Executive Stock Purchase Opportunity Program (as may be amended from time to time) during the Employment Period, pursuant to which the Company will grant the Executive a designated number of unvested shares of Common Stock for each share of Common Stock purchased by the Executive.  In addition, Executive shall be encouraged to take reasonable vacation at such times as are mutually convenient to Executive and the Company, but shall not have a fixed number of vacation days per year.      
(f)    Relocation Benefits.  As a condition to Executive’s employment with the Company, the Executive shall be required to relocate the Executive’s primary residence to the Philadelphia metropolitan area on or before March 31, 2015.  Until such relocation occurs (but not beyond the earlier of March 31, 2015 and the last day of Executive’s employment with the Company), (i) Executive shall be permitted to commute from his current residence in Chicago, Illinois metropolitan area to the Company’s headquarters in Philadelphia, Pennsylvania and (ii) the Company shall (a) reimburse Executive for his reasonable commuting expenses from such residence to the Company’s Philadelphia, Pennsylvania headquarters (such as taxis to and from the airport and coach class airfare) and (b) reimburse Executive for his lodging cost in the Philadelphia, Pennsylvania metropolitan area.  In connection with such relocation, the Company shall reimburse Executive for up to $100,000 any of his relocation-related expenses (including, but not limited to, expenses for house hunting, moving and or transportation of household goods and automobiles, direct and indirect costs related to the purchase and sale of Executive’s existing or new primary residence and not to include any aforementioned commuting expenses) incurred between the date of this Agreement and June 15, 2015 and, in the event that Executive submits less than $100,000 for such reimbursements, the Company shall provide Executive with a one-time payment (the “Reimbursement Make-Up Payment”) equal to the difference between $100,000 and the amount so reimbursed (less all applicable taxes and withholdings).  All reimbursements described in the immediately preceding sentence shall be paid to Executive promptly after such expenses are incurred and submitted for reimbursement in accordance with the Company’s expense reimbursement policies, but not earlier than January 1, 2015 and not later than December 31, 2015, subject to Executive’s continued employment with the Company on the payment date (unless Executive’s employment is terminated by the Company without Cause or due to Disability, or as the result of Executive’s death, in which case, such reimbursements shall be made for expenses incurred prior to such termination of employment within 90 days after such 

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termination of employment).  The Reimbursement Make-Up Payment shall be paid promptly after Executive has submitted his last relocation expense for reimbursement, but not earlier than January 1, 2015 and not later than December 31, 2015, subject to Executive’s continued employment with the Company on the payment date. 
(g)    Tax Withholding.  All payments to Executive or his estate made pursuant to this Agreement shall be subject to such withholding as may be required by any applicable laws.  
Section 6.    Expense Reimbursements. During the Employment Period, the Company shall reimburse Executive for all reasonable and itemized out-of-pocket business expenses incurred by Executive in the ordinary course of the Company’s business, provided such expenses are properly reported to the Company in accordance with its accounting procedures. 
Section 7.    Termination. 
(a)    General.  The Employment Period and Executive’s employment with the Company may be terminated by either the Company or Executive as provided in this Section 7(a).  Upon any termination of employment, Executive shall resign, and shall be deemed to have resigned, from all positions he then holds with the Company and its subsidiaries, divisions and affiliates.   Following any termination of Executive’s employment hereunder, all obligations of the Company under this Agreement shall terminate except as otherwise provided in Section 7(b) below.  
(i)    Death and Disability.  The Employment Period and Executive’s employment with the Company shall terminate immediately upon Executive’s death.  In addition, the Company may terminate the Employment Period and Executive’s employment with the Company immediately due to his “Total Disability,” which shall have the same meaning as in the Company’s Long Term Disability Benefits Program, or such other comparable program as may then be in effect that provides long term disability coverage to the Company’s management employees.  
(ii)    Termination by the Company With or Without Cause.  The Company may immediately terminate the Employment Period and Executive’s employment with or without “Cause.” Cause shall mean (i) the Executive’s conviction of, or entry of a plea of either guilty or no contest to a charge of, commission of (a) a felony or (b) a crime involving moral turpitude; (ii) the Executive’s willful failure or refusal to perform his duties; (iii) the Executive’s willful misconduct or gross negligence in connection with the performance of the Executive’s duties or (iv) the Executive’s material breach of any of the terms or conditions of this Agreement or any material Company policy; provided that the Company provides written notice to the Executive of its intention to terminate the Executive’s employment for Cause under clause (ii) or (iv) and the Executive fails to cure such grounds for Cause within twenty days after the notice was given to the Executive.  For purposes hereof, no act or omission to act will be “willful” if conducted in good faith or with a reasonable belief that such act or omission was in the best interests of the Company.  
(iii)    Termination by Executive.  Executive may terminate his employment with the Company at any time upon 30 days advance written notice to the Company (provided that the Company may accelerate such date of termination in its sole discretion and no such action shall entitle the Executive to notice pay, pay in lieu of notice, severance pay or other similar payments or benefits) (such 30 day or shorter period, as the case may be, the “Notice Period”).   

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(b)    Severance.  
(i)    General.  In the event that Executive’s employment is terminated for any reason, Executive shall be entitled to receive all accrued but unpaid Base Salary and all vested benefits earned under the Company’s employee benefit plans in accordance with the terms thereof.  
(ii)    Termination Without Cause.  In the event that the Company terminates Executive’s employment without Cause (other than due to Total Disability with respect to (1) and (5) below), Executive shall be entitled to receive, in addition to the benefits set forth in Section 7(b)(i) above and contingent upon Executive’s execution of a general waiver and release of claims substantially in the form attached hereto as Exhibit A (the “Release”), such that such Release is effective, with all revocation periods having expired unexercised, by no later than the 60th day after such termination:
(1)    continued Base Salary for a period of (I) twelve months if such termination occurs on or before the first anniversary of the Start Date or (II) six months if such termination occurs after the first anniversary of the Start Date ,  
(2)    payment of any earned but unpaid annual incentive bonus under Section 5(c) for a previous completed year (such earned bonus to be paid when bonuses are generally paid to the Company’s executive employees); 
(3)    a pro-rated annual bonus under Section 5(c) for the calendar year in which such termination occurs, based on actual results (as determined without any exercise of negative discretion) multiplied by a fraction, the numerator of which is the number of days employed in the fiscal year through the date of termination and the denominator of which is 365 (such pro-rata bonus to be paid when bonuses for the year of termination are generally paid to the Company’s executive employees); 
(4)    if such termination occurs prior to the fourth anniversary of the Start Date, pro-rated vesting of any tranche of the TVDS Award scheduled to vest after the date of such termination of employment, equal to the product of (I) the number of shares of Common Stock underlying such tranche, multiplied by (II) a fraction, the numerator of which is the number of days in the period commencing on the grant date and ending on the date of termination of employment and the denominator of which is the number of days from the grant date and ending on the date on which such tranche was scheduled to vest (with the shares subject to the TVDS Award that become so vested, and the dividend equivalents attributable to such shares that become so vested, to be settled within 60 days after the date of such termination of employment); and
(5)    with respect to the PSU Award, if such termination occurs prior to September 15, 2019, the Aggregate Settlement Amount (as defined in the applicable award agreement), if any, accrued through the end of the Measurement Period (as defined in the applicable award agreement), with such amount to be settled as set forth in the applicable award agreement.  
Notwithstanding the foregoing, if the 60 day release period overlaps two calendar years, then to the extent required under Code Section 409A, any portion of the Base Salary payments under clause (1) above and TVDS Award under clause (4) above that would otherwise be provided to Executive during such first calendar year shall be withheld and paid on the first 

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payroll date in such second calendar year (with all remaining payments to be made as if no such delay had occurred).  In addition, the Company’s obligation to provide the severance benefits (i) set forth in this Section 7(b)(ii) shall immediately cease if Executive breaches any of his obligations under Section 8 or 9 of this Agreement and (ii) set forth in Section 7(b)(ii)(1) above shall immediately terminate if Executive becomes employed by a new employer during the severance period.   
Section 8.    Representations, Warranties and Acknowledgements of Executive. 
(a)    Executive represents and warrants that his experience and capabilities are such that the provisions of Section 9 will not prevent him from earning a livelihood, and acknowledges that it would cause the Company serious and irreparable injury and cost if Executive were to breach the obligations contained in Section 9. 
(b)    Executive acknowledges that (i) during Executive’s employment with the Company, Executive will have access to Confidential Information (as defined below); (ii) such Confidential Information is proprietary, material and important to the Company and its non-disclosure is essential to the effective and successful conduct of the Company’s business; (iii) the Company’s business, its customers’ business and the businesses of other companies with which the Company may have commercial relationships could be damaged by the unauthorized use or disclosure of this Confidential Information; and (iv) it is essential to the protection of the Company’s goodwill and to the maintenance of the Company’s competitive position that the Confidential Information be kept secret, and that Executive not disclose the Confidential Information to others or use the Confidential Information to Executive’s advantage or the advantage of others. 
(c)    Executive acknowledges that as an Executive Vice President, Executive will (i) be put in a position of trust and confidence and have access to and create Confidential Information, (ii) supervise certain operations and employees of the Company and (iii) be in contact with customers and prospective customers. 
(d)    Executive acknowledges that the Company operates globally and that Executive may have global responsibilities during the term of his employment with the Company.  Executive acknowledges that as an Executive Vice President, it is essential for the Company’s protection of its legitimate business interests (including without limitation the Confidential Information and the Company’s goodwill) that Executive be restrained from (i) soliciting or inducing any of the Company’s officers and employees to leave the Company’s employ, (ii) hiring or attempting to hire any of the Company’s officers or employees, (iii) soliciting the Company’s customers and suppliers for a competitive purpose and  (iv) competing against the Company for a reasonable period of time.  Executive acknowledges and agrees that the restrictions contained in Section 9 are narrowly tailored to protect these legitimate business interests given the Executive’s role as an Executive Vice President, and that should Executive breach any of these restrictions, he will inevitably use or disclose the Confidential Information and goodwill and otherwise unfairly compete with the Company. 
(e)    Executive represents and warrants that Executive is not bound by any other obligation or agreement, written or oral, which would preclude Executive from fulfilling all the obligations, duties and covenants in this Agreement. Executive also represents and warrants that Executive will not use, in connection with his employment with the Company, any materials which may be construed to be confidential to a prior employer or other persons or entities. 

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(f)    Executive acknowledges that (i) any claim Executive may have against the Company, whether under this Agreement or otherwise, will not be a defense to enforcement of the restrictions set forth in Section 9, and (ii) the circumstances of Executive’s termination of employment will have no impact on his obligations under Section 9. 
References in this Section 8 to the Company shall include the Company, its subsidiaries, divisions and affiliates.  

Section 9.    Executive’s Covenants and Agreements.  
(a)    Executive agrees to maintain, or supervise others with respect thereto, customary records of transactions and services performed by Executive on behalf of the Company and to submit this information to the Company in the manner and at the times that the Company may, from time to time, direct.  
(b)    Executive agrees to abide by and comply with all personnel and company practices and policies applicable to Executive, as they may be in effect from time to time. 
(c)    Executive shall promptly and completely disclose to the Company and the Company or its designee will own all rights, title and interest to any Inventions (as defined below) made, recorded, written, first reduced to practice, discovered, developed, conceived, authored or obtained by Executive, alone or jointly with others, during Executive’s employment with the Company (whether or not such Inventions are made, recorded, written, first reduced to practice, discovered, developed, conceived, authored or obtained during working hours) and, to the extent that development occurred or continued during employment, for one year after termination of Executive’s employment with the Company. Executive hereby assigns all of his interest in the Inventions to the Company, with all copyrightable Inventions to be deemed “works for hire” under the federal Copyright Act.  To the extent that Executive retains any interest in the Inventions, Executive agrees to take all such actions during employment with the Company or at any time thereafter as may be necessary, desirable or convenient (without further compensation to Executive), at Company expense, to assist the Company or its designee in securing patents, copyright registrations, or other proprietary rights in such Inventions and in defending and enforcing the Company’s or such designee’s rights to such Inventions, including without limitation the execution and delivery of any instruments of assignments or transfer, affidavits, and other documents, as the Company or its designee may request from time to time to confirm the Company’s or its designee’s exclusive ownership of the Inventions.  Other than as disclosed by Executive in writing simultaneously herewith, Executive represents and warrants that as of the date hereof there are no works, software, inventions, discoveries or improvements (other than those included in a copyright or patent of application therefor) which were recorded, written, conceived, invented, made or discovered by Executive, or in which Executive has any interest, before entering into this Agreement and which Executive desires to be removed from the provisions of this Agreement. 
(d)    For purposes of this Agreement, “Inventions” means Confidential Information, concepts, developments, innovations, inventions, information, techniques, ideas, discoveries, designs, processes, procedures, improvements, enhancements, modifications (whether or not patentable), including, but not limited to, those relating to hardware, software, languages, models, algorithms and other computer system components, and writings, manuals, diagrams, drawings, data, computer programs, compilations and pictorial representations and other works (whether or not copyrightable). Inventions does not include the foregoing that both 

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(i) are made, developed, conceived, authored or obtained by Executive during non-working hours without the use of the Company’s resources and (ii) do not relate to any of the Company’s past, present or prospective activities. 
(e)    From and after the date hereof, Executive will hold all of the Confidential Information (as defined below) in the strictest confidence and will not use (on his own behalf or on behalf of any other person or entity) any Confidential Information for any purpose and will not publish, disseminate, disclose or otherwise make any Confidential Information available to any person or entity, except as may be required in connection with the performance of Executive’s duties to the Company during Executive’s employment or as may be required by law.  In the event Executive is required by law to disclose Confidential Information, Executive will (i) immediately (and prior to such disclosure) notify Company and cooperate with Company in any efforts by Company to oppose such disclosure, and (ii) disclose only that portion of the Confidential Information that is legally required to be disclosed and exercise best efforts to ensure that such Confidential Information will be afforded confidential treatment.  Under no circumstances will Executive acquire any ownership interest in, or right to use any, Confidential Information. 
(f)    For purposes of this Agreement, “Confidential Information” means all information, data, know-how, systems and procedures of a technical, sensitive, non-public or confidential nature in any form relating to the Company or its customers, including without limitation Inventions, all business and marketing plans, marketing and financial information, pricing, profit margin, cost and sales information, operations information, forms, contracts, bids, agreements, legal matters, unpublished written materials, names and addresses of customers and prospective customers, systems for recruitment, contractual arrangements, market research data, information about employees, suppliers and other companies with which the Company has a commercial relationship, plans, methods, strategies, concepts, computer programs or software in various stages of development, passwords, source code listings and object code.  Confidential Information does not include any data or information that becomes publicly available other than by (i) reason of Executive’s direct or indirect breach of his obligations under this Agreement or other obligations to the Company, or (ii) a breach by any other person or entity of his/her/its obligations to the Company.  
(g)    All files, records, reports, programs, manuals, notes, sketches, drawings, diagrams, prototypes, memoranda, tapes, discs, and other documentation, records and materials in any form that in any way incorporate, embody or reflect any Confidential Information or Inventions will belong exclusively to the Company and its customers and Executive will not remove from the Company’s or its customers’ premises any such items under any circumstances without the prior written consent of the party owning such item. Executive will deliver to the Company all copies of such materials, and all other property of the Company and its customers, in Executive’s actual or constructive control upon the Company’s request or upon termination of Executive’s employment with the Company and, if requested by the Company, will state in writing that all such materials and property were returned. 
(h)    Executive shall, from and after the date hereof, refrain, except as required by applicable law, rule or regulation, from making or publishing any disparaging or false statements, oral or written, about the Company, its customers or its vendors, or any of their respective officers, directors, employees or affiliates.  The Company shall not, except as required by applicable law, rule or regulation, authorize any of its senior executives to make any disparaging or false statements, oral or written, about Executive.   Nothing in this paragraph 

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precludes any party from providing truthful information to any governmental authority or in response to any lawful subpoena or other legal process. 
(i)    From the date hereof through the first anniversary of the date of any termination of Executive’s employment, Executive agrees not to: (a) own, manage, operate, finance, join, control, or participate in the ownership, management, operation, financing or control of, or be connected, directly or indirectly, as a proprietor, partner, shareholder, director, officer, executive, employee, agent, creditor, consultant, independent contractor, joint venturer, investor, representative, trustee or otherwise with any entity, business or operations that engages or intends to engage in any Competing Business (as defined below) anywhere in the world, (b) directly or indirectly solicit for hire, hire, interfere with or attempt to entice away from the Company (whether in whole or in part), any employees or consultants of the Company or anyone who was one of the Company’s employees or consultants within 12 months prior to such solicitation, hiring, interference or enticement or (c) on behalf of or for the benefit of a Competing Business, contact, solicit, interfere with or attempt to entice away from the Company (whether in whole or in part) any customer or client or prospective customer or client of the Company.  Notwithstanding the foregoing, if Executive’s employment terminates for any reason more than one year after the Start Date, then the restriction set forth in clause (a) herein shall apply from the date hereof through the six month anniversary of such termination of employment.  “Competing Business” means any person, business or other enterprise which provides any services similar in nature to that provided or proposed to be provided by the businesses of the Company within the Executive’s area of responsibility in the 12 months prior to the date of termination of the Executive’s employment.  Ownership of not more than 2% of the outstanding stock of any publicly traded company shall not be a violation of this Section 9(i) so long as Executive does not participate in the management of such company. 
(j)    Executive agrees that following termination of his employment, he will cooperate fully with the Company, at such times as are mutually convenient for Executive and the Company and not materially interfering with Executive’s other business endeavors, as to any and all claims, controversies, disputes, or complaints of which he has any knowledge or that may relate to him or his employment with the Company.  The Company will reimburse Executive for any reasonable out-of-pocket expenses incurred by Executive following his termination of employment in connection with the performance of his duties under this Section 9(j).  Such cooperation includes but is not limited to providing the Company with all information known to him related to such claims, controversies, disputes, or complaints and appearing and giving testimony in any forum.    
References in this Section 9 to the Company shall include the Company, its subsidiaries, divisions and affiliates, each of which may enforce the restrictions set forth in this Section 9. 

Section 10.    Remedies.  Executive acknowledges that his promised services hereunder are of a special, unique, unusual, extraordinary and intellectual character, which give them peculiar value which cannot be reasonably or adequately compensated in an action of law, and that, in the event there is a breach of Section 9 by the Executive, the Company will suffer irreparable harm, the amount of which will be impossible to ascertain. Accordingly, the Company shall be entitled, if it so elects, to institute and prosecute proceedings in any court of competent jurisdiction, either at law or in equity, to obtain damages for any breach or to enforce specific performance of the provisions or to enjoin Executive from committing any act in breach of this Agreement. The remedies granted to the Company in this Agreement are cumulative and are in addition to remedies otherwise available to the Company at law or in equity.  The Executive and the Company agree and intend that Employee’s obligations under Section 9 (to the extent not 

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perpetual) be tolled during any period that Executive is in breach of any of the obligations under Section 9, so that the Company is provided with the full benefit of the restrictive periods set forth herein. If the Company resorts to the courts for the enforcement of any of the covenants of Executive contained in Section 9 hereof, the extension described in the immediately preceding sentence shall commence on the later of (i) the date on which the original (unextended) term of such covenant is scheduled to terminate or (ii) the date of the final court order (without further right of appeal) enforcing such covenant.   
Section 11.    Code Section 409A.  This Agreement is intended to comply with, or be exempt from, Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and shall be interpreted consistent therewith and without resulting in any increase in the amounts owed hereunder by the Company.  Notwithstanding any other provision of this Agreement to the contrary, if Executive is a "specified employee" within the meaning of Code Section 409A and the regulations issued thereunder, and a payment or benefit provided for in this Agreement would be subject to additional tax under Code Section 409A if such payment or benefit is paid within six (6) months after Executive’s "separation from service" (within the meaning of Code Section 409A), then such payment or benefit required under this Agreement shall not be paid (or commence) during the six-month period immediately following Executive’s separation from service except as provided in the immediately following sentence. In such an event, any payments or benefits that would otherwise have been made or provided during such six-month period and which would have incurred such additional tax under Code Section 409A shall instead be paid to Executive in a lump-sum payment on the earlier of (i) the first regular payroll date of the seventh month following Executive’s separation from service or (ii) the 10th business day following Executive’s death.  If Executive’s termination of employment hereunder does not constitute a "separation from service" within the meaning of Code Section 409A, then any amounts payable hereunder on account of a termination of Executive’s employment and which are subject to Code Section 409A shall not be paid until Executive has experienced a "separation from service", or other permitted payment event, within the meaning of Code Section 409A.  In addition, to the extent required by Code Section 409A, no reimbursement or in-kind benefit shall be subject to liquidation or exchange for another benefit and (except as otherwise provided in Section 5(f) hereof) the amount available for reimbursement, or in-kind benefits provided, during any calendar year shall not affect the amount available for reimbursement, or in-kind benefits to be provided, in a subsequent calendar year.  Any reimbursement to which Executive is entitled hereunder shall be made no later than the last day of the calendar year following the calendar year in which such expenses were incurred.  Each severance installment contemplated under Section 7 hereof or other payment of “deferred compensation” (under Code Section 409A) shall be treated as a separate payment in a series of separate payments under Treasury Regulation Section 1.409A-2(b)(2)(iii).   Neither the Company nor any of its affiliates shall have any liability or obligation to Executive in the event that this Agreement does not comply with, or is not exempt from, Code Section 409A.  
Section 12.    Waiver of Breach. No waiver by any party hereto of a breach of any provision of this Agreement by any other party, or of compliance with any condition or provision of this Agreement to be performed by such other party, will operate or be construed as a waiver of any subsequent breach by such other party of any similar or dissimilar provisions and conditions at the same or any prior or subsequent time.  The failure of any party hereto to take any action by reason of such breach will not deprive such party of the right to take action at any time while such breach continues.  

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Section 13.    Notices.  All notices required or permitted hereunder shall be made in writing by hand-delivery, certified or registered first-class mail, or air courier guaranteeing overnight delivery to the other party at the following addresses: 
To the Company: 
CDI Corporation 
3500 Bell Atlantic Tower 
1717 Arch Street 
Philadelphia, PA 19103 
Attention: General Counsel 
 
To Executive: 
    
At his address in the Company’s records, 
 
or to such other address as either of such parties may designate in a written notice served upon the other party in the manner provided herein. All notices required or permitted hereunder shall be deemed duly given and received when delivered by hand, if personally delivered; on the third day next succeeding the date of mailing if sent by certified or registered first-class mail; and on the next business day, if timely delivered to an air courier guaranteeing overnight delivery. 

Section 14.    Severability. If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be held invalid or unenforceable by a court of competent jurisdiction, the remainder of this Agreement or the application of any such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law (and thus the terms and provisions of this Agreement shall be severable). If any of the provisions contained in this Agreement, including without limitation in Section 9, shall for any reason be held to be excessively broad as to duration, scope, activity, subject or otherwise, it is the intention of Executive and the Company that such provision shall be construed by limiting and reducing it, so as to be valid and enforceable to the maximum extent compatible with the applicable law.  
Section 15.    Governing Law; Exclusive Choice of Forum.  The implementation and interpretation of this Agreement shall be governed by and enforced in accordance with the laws of the State of Pennsylvania without giving effect to the conflicts of law provisions thereof. The parties hereby submit to the exclusive jurisdiction of, and waive any venue objections against, the United States District Court for the Eastern District of Pennsylvania (or if federal jurisdiction does not exist, the state and local courts of the Commonwealth of Pennsylvania, Philadelphia County) for any litigation arising out of this Agreement.   
Section 16.    Binding Effect and Assignability.  The rights and obligations of both parties under this Agreement shall inure to the benefit of and shall be binding upon their heirs, successors and assigns. Executive’s rights under this Agreement shall not, in any voluntary or involuntary manner, be assignable and may not be pledged or hypothecated without the prior written consent of the Company.  This Agreement may be assigned by the Company.  
Section 17.    Counterparts; Section Headings.  This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument. The section headings of this Agreement are for convenience of reference only.  

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Section 18.    Survival.  Notwithstanding the termination of the Employment Period or Executive’s employment with the Company for any reason, Sections 5(d), 7(b) and 8 through and including 19, and the provisions of Section 2 relating to indemnification and clawbacks, shall survive any such termination in accordance with their terms.  
Section 19.    Entire Agreement; Amendments.  This Agreement constitutes the entire agreement with respect to the subject matter hereof between the parties hereto and replaces and supersedes as of the date hereof any and all prior oral or written agreements and understandings between the parties hereto (including, without limitation, that certain Employment Agreement Term Sheet signed by the Company on October 15, 2014 and signed by Executive on October 14, 2014).  This Agreement may be modified only by an agreement in writing executed by both Executive and the Company. 
[signature page follows]

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

	 
	 

	 
	   /s/ Scott J. Freidheim

	 
	By: Scott J. Freidheim

	 
	Title:  Chief Executive Officer

	 
	 

	 
	EXECUTIVE

	 
	 

	 
	   /s/ Michael S. Castleman

	 
	Michael S. Castleman

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