Document:

Exhibit 10.22

 

 

May
14, 2005

 

Walter
J. McBride

604
Ocean Avenue

Seal
Beach, California 90740

 

Dear
Chuck,

 

This letter sets forth the substance of the agreement (the “Agreement”)
between you and First Consulting Group, Inc. (“FCG”) regarding your separation
of employment.

 

1. Separation.  You
will cease to be an officer, director or employee of FCG or any of its
subsidiaries or affiliates (individually, an “FCG Company” or collectively, the
“FCG Companies”) effective May 14, 2005 (the “Separation Date”).   To the extent you are a director serving on
the board of any FCG Company, this Agreement shall serve as your resignation
from such directorships.

 

2. Accrued
Salary and Paid Time Off.  On or after the Separation Date, in
conformance with applicable state laws, FCG will pay you all accrued and unpaid
salary, and all accrued and unused paid time off earned through the Separation
Date, subject to standard payroll deductions and withholdings.  You are entitled to these payments regardless
of whether or not you sign this Agreement. 
Unused personal choice holidays are paid out.

 

3. Severance
Payments.  FCG will pay to you the following amounts as
full consideration for your obligations and covenants under this Agreement and
in full satisfaction of any amount that may be owed to you upon your separation
from FCG under any agreement or arrangement between you and FCG or any other
FCG Company: (a) twelve (12) months of base salary, or approximately $435,000;
and (b) any bonus earned by you under the FCG bonus plan for first quarter of
2005.  Payment of the amount in clause
(a) above will be paid as a lump sum distribution within ten (10) days after
the later of: (i) the date this signed agreement is received by FCG; (ii) your
Separation Date; or (iii) the date you have returned to FCG all of the FCG
property and equipment in your possession in accordance with Section 13
below.  Payment of the amount in clause
(b) above will be made at the time FCG pays first quarter bonuses to active
employees.  All amounts paid under this
paragraph will be less federal, state and other applicable taxes and other
authorized withholdings, and shall be made by manual check.

 

You will also receive an Executive Outplacement Package of four (4)
months of assistance with Spherion. 
Information in regard to this assistance will be sent to your home and a
representative from Spherion will be contacting you shortly.  It is your option to begin the four months
now or wait until up to 90 days after your Separation Date.

 

 

4. Health
Insurance.  According to company policy, your FCG group
health insurance benefits will be cancelled effective with the Separation Date.
After the Separation Date, you will be eligible to continue your group health
insurance benefits at your sole cost and expense (except as noted below) to the extent provided by federal COBRA
law, state insurance laws and by FCG’s current group health insurance policies.
You may do this by making the COBRA election and submitting your premiums
directly to our COBRA administrator in the Long Beach office.  A package of information will be sent to you
via mail within 21 days of the Separation Date detailing the process and
premium amounts for COBRA coverage, including the deadline by which you must elect
COBRA coverage. Should you elect COBRA within the time requirements, coverage
will be effective retroactive to the Separation Date.

 

Should you elect to continue your group health insurance benefits
through COBRA, and subject to your execution of this Agreement, FCG will pay
your COBRA premiums until the earlier of (1) May 14, 2006; or (2) the date you
become eligible for group health insurance benefits through a new
employer.  You agree to notify FCG
promptly upon obtaining new employment. 
Although FCG will pay the cost of your COBRA until the date specified
above, your coverage will not be reinstated until you have received, signed and
returned the COBRA election form.  At
that time, the carriers will be notified of your election and your coverage will
be reinstated.  In the meantime, if you
should require any medical/dental services, you will need to pay for those
services and submit your receipts, with a claim form, to the insurance company
for reimbursement after you have signed and returned your COBRA election form.

 

5. Flexible
Spending Accounts.
Coverage under Flexible Spending Accounts ceases on the Separation Date,
subject to your ability to continue your Health Care Flexible Spending Account
through the balance of the year on an after-tax basis. Additional details are
provided in the COBRA notification.

 

6. Life
Insurance. Your FCG
group life insurance coverage will end effective on the Separation Date.  If you would like to convert your coverage,
please contact the Benefits Service Center within 30 days of the Separation
Date at 800-471-8853, ext. 2363.

 

7.
Disability/Long Term Care Coverage. Coverage under the disability and Long Term Care programs will
terminate effective on the Separation Date. 
If you would like to convert your coverage(s), please contact the
Benefits Service Center within 30 days of the Separation Date at the number
above.

 

8.
Associate Stock Purchase Plan (ASPP).   Participation in the ASPP will
terminate effective with the Separation Date. 
Year-to-date deductions that have not already been used to purchase stock
will be refunded within two pay periods after the Separation Date.  Stock already purchased will remain in your
personal E*TRADE account. You should contact E*TRADE directly with any
questions regarding your account.

 

9. Stock
Options.  Any options to purchase FCG stock that you
hold will cease to vest on the Separation Date and all of your unvested stock
options will be cancelled.  The

 

2

 

expiration date on your vested options will be modified so that you
will have one (1) year following the Separation Date to exercise any vested
options you received under FCG’s option plans. A closing statement containing
information on your vested options will be mailed to your home from the FCG
Corporate Affairs department.  Also,
status of your stock options is available online through E*TRADE at
www.optionslink.com.

 

10. Other
Benefits.  You and FCG hereby agree and acknowledge the
following:

 

(a) SERP
and 401(k).   As of the Separation Date, you no longer may
contribute funds to FCG’s 401(k) plan or the Supplemental Executive Retirement
Plan (“SERP”), nor will FCG contribute any matching or other funds to such
plans on your behalf; provided that, FCG will contribute $5,000 to your SERP
account for 2005.   No payroll deductions
for pre-tax contributions will be taken from your severance pay.    Nothing in this Agreement terminates or
otherwise affects any right or interest you may have in vested funds and assets
under FCG’s 401(k), ASOP and SERP plans.

 

You will receive detailed
information from New York Life regarding the distribution of your contributions
and any vested funds from the 401(k) and ASOP account.  As you will read in that material, you should
wait until the middle of the month after the month in which your last
401(k) deduction is made before applying for a distribution.  Contact New York Life directly at (800)
294-3575 regarding any questions, including account rollover transactions.  You may also visit their website at
www.bcomplete.com.  If you currently have
an outstanding loan, you may maximize the tax deferral of this benefit by
electing to repay the loan prior to taking a distribution from the Plan.  If you choose not to, the outstanding loan
balance will be defaulted and treated as a taxable distribution to you.  You may coordinate the prepayment of the
outstanding loan balance with New York Life.

 

You will receive detailed
information from Human Resources regarding the distribution of your
contributions and any vested funds from the SERP.  You may contact Carol Cogan if you have any
questions.

 

(b) Other
Amounts.  You acknowledge that, except as expressly
provided in this Agreement, you will not receive any additional compensation,
bonus, severance or benefits after the Separation Date.

 

11.
Unemployment Benefits.
Because of the nature of your separation with FCG, you may be eligible for
unemployment insurance benefits.  Contact
your local employment commission office for information regarding unemployment
compensation.

 

12. Expense
Reimbursement. Any
outstanding unreimbursed expenses will be paid based on the submission of your
final Time and Expense Report and the appropriate documentation. It is
acknowledged that you may receive cellular phone, long distance and other
business related charges after the Separation Date; please submit those
expenses for reimbursement as they occur to FCG c/o Jan Blue in the Long Beach,
California office.

 

13. Return
of FCG Property.  Except as noted below, on or before the
Separation Date, you agree to return to FCG all FCG Company documents (and all
copies thereof) and

 

3

 

other FCG Company property that you have had in your possession at any
time, including (i) any materials of any kind that contain or embody any
proprietary or confidential information of an FCG Company (and all
reproductions thereof), and (ii) computers and other electronic devices,
cellular phones, credit cards, phone cards, entry cards, identification badges
and keys. If you have a cell phone and have had it for at least 3 months, it is
yours to keep.  Any firm-provided service
will be cancelled and you will need to establish your own service.  You will receive a Federal Express pack, with
a pre-paid shipping label, to ship your equipment back to Long Beach. Please
return items to the FCG Help Desk in Long Beach as soon as practicable, at
least within 7 days.

 

You will be permitted to keep your home computer at no cost to you,
except that the fair market value of the computer will be added to your taxable
wages and appropriate state and federal taxes will be deducted.  The applications software on your laptop is
licensed for FCG use only and it is your responsibility to delete any
applications software from the computer with the exception of the operating
system.

 

14. Vice
President Agreement; Indemnity Agreement. You hereby acknowledge and agree to your
continuing obligations, both during and after your employment with FCG, to
abide by the terms of that certain Vice President Agreement between you and FCG
dated December 22, 2000.  The terms of
that certain Indemnity Agreement between you and FCG executed upon your
employment with FCG shall remain in full force and effect and you are entitled
to indemnification by FCG in accordance with and subject to the terms of FCG’s
charter documents and the Indemnity Agreement.

 

15.
Confidentiality.  The provisions of this Agreement will be held
in strictest confidence by you and FCG and will not be publicized or disclosed
in any manner whatsoever; provided, however,
that:  (a) you may disclose this
Agreement to your immediate family; (b) the parties may disclose this Agreement
in confidence to their respective attorneys, accountants, auditors, tax
preparers, and financial advisors; (c) FCG may disclose this Agreement as
necessary to fulfill standard or legally required corporate reporting or
disclosure requirements; and (d) the parties may disclose this Agreement
insofar as such disclosure may be necessary to enforce its terms or as
otherwise required by law.  In particular,
and without limitation, you agree not to disclose the terms of this Agreement
to any current or former FCG employee.

 

16.
Nondisparagement.  Both
you and FCG agree not to disparage the other party, and the other party’s
officers, directors, employees, shareholders and agents, in any manner likely
to be harmful to them or their business, business reputation or personal
reputation; provided that both you and FCG will respond accurately and fully to
any question, inquiry or request for information when required by legal
process.

 

17. Mutual
Release of Claims.

 

(a)    You hereby release, acquit and forever discharge each of the FCG
Companies and their respective parents and subsidiaries, and each of their
respective officers, directors, agents, servants, employees, attorneys,
shareholders, successors,

 

4

 

assigns and affiliates, of and from any and all claims, liabilities,
demands, causes of action, costs, expenses, attorneys’ fees, damages,
indemnities and obligations of every kind and nature, in law, equity, or
otherwise, known and unknown, suspected and unsuspected, disclosed and
undisclosed, arising out of or in any way related to agreements, events, acts
or conduct at any time prior to and including the Effective Date of this
Agreement, including but not limited to: all such claims and demands directly
or indirectly arising out of or in any way connected with your employment with
any FCG Company or the termination of that employment; claims or demands
related to salary, bonuses, commissions, stock, stock options or any other
ownership interests in any FCG Company, vacation pay, fringe benefits, expense
reimbursements, severance pay or any other form of compensation; claims arising
from any employment agreement or arrangement between you and any FCG Company;
claims pursuant to any federal, state or local law, statute or cause of action
including, but not limited to, the federal Civil Rights Act of 1964, as
amended; the federal Americans with Disabilities Act of 1990; the federal Age
Discrimination in Employment Act of 1967, as amended (“ADEA”); the California
Fair Employment and Housing Act, as amended; tort law; contract law; wrongful
discharge; discrimination; harassment; fraud; defamation; emotional distress; and
breach of the implied covenant of good faith and fair dealing.  You further agree not to initiate or continue
any proceeding based upon the claims released herein.  Notwithstanding the foregoing, your release
of the FCG Companies in accordance with this Section shall not be deemed to
release (i) any of the FCG Companies’ duties or obligations under this
Agreement, including, but not limited to, FCG’s indemnification obligations to
you described in Section 14 of this Agreement; or (ii) any of your rights as a
stockholder and/or option holder of FCG.

 

(b)   FCG and each of the FCG Companies hereby release, acquit and forever
discharge you of and from any and all claims, liabilities, demands, causes of
action, costs, expenses, attorneys’ fees, damages, indemnities and obligations
of every kind and nature, in law, equity, or otherwise, known and unknown,
suspected and unsuspected, disclosed and undisclosed, arising out of or in any
way related to agreements, events, acts or conduct at any time prior to and
including the Effective Date of this Agreement, including but not limited to
all such claims and demands directly or indirectly arising out of or in any way
connected with your employment with any FCG Company.  FCG further agrees not to initiate or
continue any proceeding based upon the claims released herein.  Notwithstanding the foregoing, the release
provided by FCG and each of the FCG Companies in accordance with this Section
shall not be deemed to release any of your continuing duties or obligations
under this Agreement or your Vice President Agreement.

 

18. ADEA
Waiver.  You
acknowledge that you are knowingly and voluntarily waiving and releasing any
rights you may have under the ADEA, as amended. 
You also acknowledge that the consideration given for the waiver and
release in the preceding paragraph hereof is in addition to anything of value
to which you were already entitled.  You
further acknowledge that you have been advised by this writing, as required by
the ADEA, that:  (a) your waiver and
release do not apply to any rights or claims that may arise after the execution
date of this Agreement; (b) you have been advised hereby that you have the
right to consult with an attorney prior to executing this Agreement; (c) you
have twenty-one (21) days to consider this Agreement (although you may choose
to voluntarily execute this

 

5

 

Agreement earlier); (d) you have seven (7) days following the execution
of this Agreement by the parties to revoke the Agreement; and (e) this
Agreement will not be effective until the date upon which the revocation period
has expired, which will be the eighth day after this Agreement is executed by
you, provided that FCG has also executed this Agreement by that date
(“Effective Date”).

 

19. Section
1542 Waiver.  In
giving the above releases, which include claims which may be unknown to each
party at present, each party acknowledges that it has read and understands
Section 1542 of the California Civil Code which reads as follows:  “A general
release does not extend to claims which the creditor does not know or suspect
to exist in his favor at the time of executing the release, which if known by
him must have materially affected his settlement with the debtor.”  Each party hereby expressly waives and
relinquishes all rights and benefits under that section and any law of any
jurisdiction of similar effect with respect to each party’s release of any
unknown or unsuspected claims such party may have against the other party.

 

20.
Indemnification and Attorneys’ Fees.  You understand and agree that
if you hereafter commence, join in, or in any manner seek relief through any
lawsuit, charge or complaint with any court, administrative agency,
governmental authority or otherwise in any matter arising out of, based upon,
or relating to the claims released in this Agreement, then you will pay FCG in
addition to any other expenses, costs or damages caused to FCG thereby, all
FCG’s attorneys’ fees incurred in defending or otherwise responding to such lawsuit,
charge, or complaint.  FCG understands
and agrees that if it hereafter commences, joins in, or in any manner seeks
relief through any lawsuit, charge or complaint with any court, administrative
agency, governmental authority or otherwise in any matter arising out of, based
upon, or relating to the claims released in this Agreement, then FCG will pay
you in addition to any other expenses, costs or damages caused to you thereby,
all of your attorneys’ fees incurred in defending or otherwise responding to such
lawsuit, charge, or complaint.  This
section will not apply to any claim brought by you under the ADEA or to
challenge the validity of the waiver in this Agreement of any such claim or any
claim to enforce FCG’s obligations hereunder or any rights you may have as an
FCG stockholder and/or option holder.

 

21.
Miscellaneous.  This Agreement constitutes the entire
agreement between you and FCG with regard to this subject matter.  It is entered into without reliance on any
promise or representation, written or oral, other than those expressly
contained herein, and it supersedes any other such promises, warranties or
representations.  This Agreement may not
be modified or amended except in a writing signed by both you and FCG.  This Agreement will bind and inure to the
benefit of the heirs, personal representatives, successors and assigns of both
you and FCG.  If any provision of this
Agreement is determined to be invalid or unenforceable, in whole or in part,
this determination will not affect any other provision of this Agreement and
the provision in question will be modified by the court so as to be rendered
enforceable.  This Agreement will be
deemed to have been entered into and will be construed and enforced in accordance
with the laws of the State of California as applied to contracts made and to be
performed entirely within California.

 

6

 

We appreciate your service
to FCG and we wish you all the best in wherever your future endeavors may take
you.

 

If this Agreement is
acceptable to you, please sign below and return the original to Jan Blue at
First Consulting Group, Inc., 111 West Ocean Boulevard, 4th Floor,
Long Beach, California 90802.

 

Sincerely,

 

	
  FIRST CONSULTING GROUP, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   /s/ Luther Nussbaum

  	
   

  	
   

  
	
   

  	
  Luther
  Nussbaum

  	
   

  
	
   

  	
  Chairman/CEO

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  AGREED:

  	
   

  
	
   

  	
   

  
	
   

  	
   /s/ Walter J. McBride

  	
   

  	
   

  
	
   

  	
  Walter
  J. McBride

  	
   

  
	
   

  	
   

  
	
  cc:           Jan Blue, Vice President

  	
   

  
					

 

7Exhibit 10.1

 

THIRD AMENDMENT TO LOAN
AGREEMENT

DATED JANUARY 14, 2004

 

This Third Amendment to Loan Agreement (the “Third Amendment”) is made
as of this 17th day of April, 2006 by and between CRA International, Inc.,
formerly known as Charles River Associates Incorporated (“Borrower”), a
Massachusetts corporation with its principal executive office at the John
Hancock Tower, 200 Clarendon Street, T-33, Boston, Massachusetts 02116-5092 and
Citizens Bank of Massachusetts, a bank with offices at 28 State Street, Boston,
Massachusetts (the “Lender”) in consideration of the mutual covenants contained
herein and the benefits to be derived herefrom. Unless otherwise specified, all
capitalized terms shall have the same meaning herein as set forth in the
Agreement (as defined below).

 

W I T N E S S
E T H:

 

WHEREAS, on January 14, 2004, the
Borrower and the Lender entered into a loan arrangement (the “Loan Arrangement”)
as evidenced by, amongst other documents and instruments, a certain Loan
Agreement dated as of January 14, 2004, as amended by a First Amendment to
Loan Agreement dated as of March 29, 2005, as further amended by a Second
Amendment to Loan Agreement dated as of June 20, 2005 (as may be
amended from time to time, the “Agreement”) by and between the Borrower and the
Lender pursuant to which the Lender agreed to provide certain financial
accommodations to or for the benefit of the Borrower; and

 

WHEREAS, the Borrower has requested that the
Lender extend the Loan Arrangement and amend certain terms and conditions of
the Agreement, and

 

WHEREAS, the Lender has agreed to so amend
the Agreement provided the Borrower and the Lender entered into this Third
Amendment; and

 

NOW, THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

 

1.             The
Agreement is hereby supplemented by adding the following subsections to Section 1
after subsection (w):

 

“(x)         The
Borrower acknowledges that all foreign exchange contracts entered into by the
Borrower shall be for the benefit of the Borrower or a wholly-owned subsidiary
of the Borrower.

 

(y)           All
foreign exchange contracts entered into by the Borrower, or any wholly-owned
subsidiary of the Borrower, shall settle within six (6) months of the expiration
of the Termination Date.”

 

 

2.             Section 14(a) of
the Agreement is hereby amended by replacing the date “April 30, 2007”
with the date “April 30, 2009”.

 

3.             The
Borrower hereby acknowledges and agrees that the Borrower has no claims,
offsets, defenses or counterclaims against the Lender with respect to the Loan
Arrangement or otherwise and to the extent the Borrower may have any such
claims the Borrower hereby WAIVES and RENOUNCES such claims, offsets, defenses
and counterclaims.

 

4.             This
Third Amendment and all other documents executed in connection herewith
incorporate all discussions and negotiations between the Borrower and the
Lender either expressed or implied, concerning the matters contained herein and
in such other instruments, any statute, custom or use to the contrary
notwithstanding. No such discussions or negotiations shall limit, modify or
otherwise effect the provisions hereof. The modification amendment, or waiver
of any provision of this Third Amendment, the Agreement or any provision under
any other agreement or document entered into between the Borrower and the
Lender shall not be effective unless executed in writing by the party to be
charged with such modification, amendment or waiver, and if such party be the
Lender, then by a duly authorized officer thereof.

 

5.             Except
as specifically modified herein, the Agreement shall remain in full force and
effect as originally written, and the Borrower hereby ratifies and confirms all
terms and conditions contained in the Agreement.

 

6.             This
Third Amendment shall be construed in accordance with and governed by the laws
of the Commonwealth of Massachusetts and shall take effect as a sealed
instrument.

 

IN WITNESS WHEREOF, the parties hereof have
set their hands and seals as of the date first written above.

 

 

	
   

  	
  CRA INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Wayne D. Mackie

  	
   

  
	
   

  	
  Name: 

  	
  Wayne D. Mackie

  	
   

  
	
   

  	
  Title:

  	
  CFO

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CITIZENS BANK OF MASSACHUSETTS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael McAuliffe

  	
   

  
	
   

  	
  Name:

  	
  Michael McAuliffe

  	
   

  
	
   

  	
  Title:

  	
  SVP

  	
   

  
								

 

2

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