Document:

Exhibit

Exhibit 10.40

Mr. Michael McGowan
701 South Olive Avenue
Unit #1710
West Palm Beach, FL 33401

Re:  Terms and Conditions of Early Retirement

Dear Mike:
This letter (the “Agreement”) is intended to modify and to restate the terms and conditions of your employment for the period from December 30, 2016 (the “Effective Date”) to January 6, 2017 (the “Retirement Date”), and your severance with Oxford Global Resources, LLC (the “Company”) and On Assignment, Inc. (“OAI”).  In this Agreement, you will hereinafter be referred to as “you” or “Executive.”  This Agreement also is intended to supersede and to replace all prior agreements and understandings between you and the Company, including your Amended and Restated Employment Agreement, dated as of December 30, 2008, as amended, except as expressly set forth below.
The terms of this Agreement are as follows:
		
	1.
	For the period from the Effective Date to the Retirement Date:

		
	a.
	Titles, Duties and Responsibilities:  You will no longer retain the title of President of the Company or Chief Operating Officer of OAI, or officer or director of any of the Company’s subsidiaries or affiliates, and you shall no longer have the duties associated with these positions, however, you shall be available to provide transition services as requested by Peter Dameris or Theodore Hanson, and shall be available for consultation or support on transition issues thereafter from time to time on a de minimus basis.    

		
	b.
	Compensation and Benefits:  

		
	i.
	Base Salary and Bonus:  You shall continue to be paid a base salary of $630,630 on an annualized basis, less all required deductions and withholdings (the “Base Salary”) through the Retirement Date.  Payment of the Base Salary shall be made in accordance with the Company’s normal and customary pay practices and pay periods.  To the extent that you have met the performance targets for your 2016 bonus, your bonus will be paid out in the ordinary course of business when certified and approved by the Compensation Committee of the Board of Directors of OAI (the “Committee”) in February 2017, notwithstanding the fact that you are no longer employed by the Company.

		
	ii.
	Health, Welfare and Other Benefit Plans:  You shall continue to receive health and life insurance coverage, and shall participate in other benefits, such as holidays and vacations, at your current level of benefits.  

		
	iii.
	Equity Grants:  The equity grants previously received by you shall continue to vest in accordance with the terms and conditions of the grant documentation.  You shall not receive any further equity grants.

		
	iv.
	Other:  Executive shall be paid for any Company expenses submitted on a timely basis.

		
	2.
	Upon Retirement:  Effective as of the Retirement Date, Executive’s employment with the Company shall terminate and Executive shall cease to be an employee of the Company.  Subject to the Executive’s execution and delivery to the Company of a full general release of all claims, causes and actions, a form of which is attached hereto as Exhibit A (the “General Release”), on or after the Retirement Date and the seven-day revocation period thereafter, and unless otherwise required by law, Executive shall receive the payments and benefits set forth in (a) through (c) below:

		
	a.
	Severance Pay:  Executive shall be paid the equivalent of 12-months’ Base Salary during the period commencing on the Retirement Date, less any applicable required deduction or withholding, paid out in equal installments on regular Company pay dates; 

		
	b.
	COBRA: the portion of the cost of periodic Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) premiums subsidized by the Company for Executive immediately prior to the Retirement Date during the 12-month period commencing on the Retirement Date, subject to Executive’s proper election to continue healthcare coverage, with payments commencing on the first regular pay date following the completion of the revocation period after the effective date of the General Release; and

		
	c.
	Acceleration of Vesting of RSUs:  promptly after the Retirement Date, the vesting of certain restricted stock units (“RSUs”) set forth in Exhibit B that were granted but unvested as of the Retirement Date, shall be accelerated and shares shall be released to the Executive.

		
	3.
	Restrictive Covenants:  

		
	a.
	Non-Competition, Non-Solicitation and No-Hire:  For purposes of the non-competition, non-solicitation and no-hire restrictive covenants set forth in Section 4 of Executive’s Confidentiality, Non-Solicitation and Non-Competition Agreement, executed on January 3, 2007 (the “Confidentiality Agreement”), the definition of “Restricted Period” shall be deleted and replaced with:

“6.e. “Restricted Period” means the period beginning on the Retirement Date and continuing through the later of: (i) the second anniversary of the Retirement Date or (ii) one year from the termination of Executive’s role as a Board Advisor with OAI.”
		
	b.
	Non-Disparagement:  Executive agrees not to disparage the Company, OAI, or any of their respective subsidiaries or affiliates, and/or any officers, directors, employees, stockholders and/or agents of the Company, OA or any of their respective subsidiaries or affiliates in any manner intended or reasonably likely to be harmful to them or their business, business reputation or personal reputation; provided that the foregoing shall not prevent Executive from responding accurately and fully to any question, inquiry or request for information when required by legal process.

		
	c.
	Cooperation in Good Faith:  Executive agrees to use good faith efforts to cooperate in the provision of services set forth in Section 1(a) of this Agreement, and the Executive agrees to perform any further acts or execute and deliver any documents that may be reasonably necessary to carry out the provisions of this Agreement, including the undertaking and preparing for legal and other proceedings relating to the affairs of the Company and its subsidiaries.  Executive shall be reimbursed for his reasonable expenses incurred in connection with any such cooperation and/or 

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assistance, and shall receive from the Company reasonable per diem compensation in connection with assistance provided related to any legal and other proceedings.  

		
	4.
	Other Terms and Conditions:  

		
	a.
	Nothing in this Agreement is intended to affect Executive’s rights under COBRA.  

		
	b.
	All rights of Executive under prior offer letters, employment agreements or other correspondence related to employment and compensation, are hereby superseded and extinguished as of the date of this Agreement. For the avoidance of doubt, the Confidentiality Agreement is not superseded or extinguished and will remain in full force and effect after the execution of this Agreement, except as expressly set forth herein.

		
	c.
	All rights of Executive under any change in control agreement or plan, Executive’s prior employment agreement or under any severance plan or correspondence regarding severance, are hereby superseded, extinguished and replaced by this Agreement as of the date of this Agreement.  

		
	d.
	Except as provided for above, Executive shall be entitled to no other and further compensation, remuneration or benefits in connection with his employment with the Company.  Payments hereunder shall be made in equal installments on regular Company pay dates, commencing with the first pay date following the completion of the revocation period after the effective date of the General Release.

		
	5.
	General Provisions:

		
	a.
	Executive acknowledges and agrees that his employment with the Company shall terminate at or before the Retirement Date, as provided for above.  

		
	b.
	Executive acknowledges and agrees that, by entering into this Agreement, he will be required to execute a General Release, in form as set forth in Exhibit A hereto, as of the date of his termination, in consideration for the promises made by the Company in this Agreement.  As part of this General Release, Executive will waive and relinquish all rights and benefits under Section 1542 of the Civil Code of the State of California.  The General Release shall exclude any claims for workplace injuries covered by any applicable Workers’ Compensation law, and any claims for unemployment compensation, and shall not preclude Executive’s right to enforce the terms of this Agreement or his right to initiate, participate in, or assist with any lawful government investigation.  

		
	c.
	Executive acknowledges and agrees that he has been, and will be, employed in a position that is exempt from overtime under federal and state law, and that he has been paid all wages and benefits to which he may have been entitled up to the date of his signature below.  

		
	d.
	Each provision of this Agreement shall be interpreted to the fullest extent possible in such a manner as to be effective and valid under applicable law.  If any provision is held to be invalid, unlawful or unenforceable, such finding shall not affect any other provision, and this Agreement shall be reformed, construed and enforced as if such improper provision had never been contained herein.  

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	e.
	As of the Effective Date, this Agreement constitutes the complete understanding between Executive and the Company, and it preempts and supersedes any prior agreements, understandings or representations, whether written or oral, regarding Executive’s employment with the Company, except as expressly provided for herein above.  This Agreement may not be modified except by a subsequent written agreement signed by both parties.  

		
	f.
	Both parties represent and warrant that they have the authority to enter into this Agreement.

		
	g.
	All questions concerning the construction, validity and interpretation of this Agreement shall be governed by the laws of the State of Delaware, without giving effect to any choice of law or conflict of law provisions that would cause the law of another jurisdiction to apply.

		
	h.
	This Agreement is intended to comply with, or otherwise be exempt from, Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and any regulations and Treasury guidance promulgated thereunder (“Section 409A”), and shall be construed and administered in accordance therewith.

		
	i.
	For purposes of Section 409A, the right to a series of installment payments shall be treated as a right to a series of separate payments and any payments under this Agreement that may be excluded from Section 409A either as separation pay due to an involuntary separation from service or as a short-term deferral shall be excluded from Section 409A to the maximum extent possible.

		
	j.
	If a payment obligation under this Agreement arises on account of the Executive’s separation from service while the Executive is a “specified employee” (as defined under Section 409A and determined in good faith by the Company), any payment of “deferred compensation” (as defined under Treasury Regulation Section 1.409A-1(b)(1), after giving effect to the exemptions in Treasury Regulation Sections 1.409A-1(b)(3) through (b)(12)) that is scheduled to be paid within six months after such separation from service shall accrue without interest and be paid within 15 days after the end of the six-month period beginning on the date of such separation of service or, if earlier, within 15 days after the appointment of the personal representative or executor of the Executive’s estate following his death, only to the extent necessary to comply with Section 409A.  

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Please carefully review the terms of this Agreement, and if they are acceptable, please sign and return an executed copy of the Agreement to me. 
Very truly yours,

AGREED AND ACCEPTED:            Oxford Global Resources, LLC
                
            
/s/Michael J. McGowan                                                             By: /s/Peter T. Dameris
Michael J. McGowan                    Peter T. Dameris
Chief Executive Officer of 
On Assignment, Inc., sole member of Oxford
Global Resources, LLC

                            
Date: December 30, 2016                                     Date: December 30, 2016

    

5Exhibit

Exhibit 10.41

CONSULTING AGREEMENT

THIS CONSULTING AGREEMENT (the “Agreement”) is made and entered into January 5, 2017, effective as of January 9, 2017, by and between On Assignment, Inc. (the “Company”) and Michael J. McGowan (the “Consultant”). 
RECITALS

WHEREAS, the members of the Nominating and Corporate Governance Committee (the “Committee”) have worked with the Consultant in his prior role as President of Oxford Global Resources, LLC and Chief Operating Officer of the Company, and believe that his extensive background, experience as a previous officer of the Company and talents would be relevant and supportive to the Company’s Board of Directors (the “Board”), and the Committee recommended to the Board that he be engaged as an advisor to the Board; and

WHEREAS, the Board discussed the Committee’s recommendation, and agreed that his services would be valuable to the Board’s deliberations, among other things.
 
AGREEMENT

NOW, THEREFORE, in consideration of the mutual agreements set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:
1.Services and Compensation

(a)During the term of this Agreement, the Consultant shall serve as an advisor to the Company’s Board.  The Consultant is invited to attend any meeting of the Board; provided, however, that the Company and the Board reserve the right to withhold any information and to exclude the Consultant from any meeting or portion thereof as the Board determines in its sole discretion.  For the avoidance of doubt, the Consultant shall not have voting rights as an advisor to the Board, but shall be bound by the same confidentiality obligations as the members of the Board. 

(b)In consideration for the performance of the Services during the term of this Agreement, the Company shall pay the Consultant compensation equal to the cash retainer, meeting fees and/or equity awards (if any), in each case, in such forms and amounts and subject to such terms and conditions as payments made generally to non-employee directors serving as non-chair members of the Board for the same period of service (the “Compensation”).  Notwithstanding anything to the contrary contained herein, the Compensation shall not include any cash retainer, meeting fees and/or equity awards (if any), in each case, made to non-employee directors solely with respect to service on a committee of the Board.

(c)The Company shall reimburse the Consultant for reasonable expenses, such as travel, lodging and meal expenses, incurred by the Consultant at the Company’s request or with the Company’s approval, consistent with the Company’s generally applicable policies for non-employee directors and with supporting documentation.

2.Conflicting Obligations.  The Consultant certifies that the Consultant has no outstanding agreement, relationship or obligation that is in conflict with any of the provisions of this Agreement, or that would preclude the Consultant from complying with the provisions hereof, and further certifies that the 

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Consultant will not enter into any such conflicting agreement or relationship during the term of this Agreement.  The Consultant agrees to comply with any insider trading policy, ethics policy and business conduct policy of the Company during the term of this Agreement.  The Consultant agrees to not use information received by the Consultant during the term of this Agreement for personal gain or take advantage of any business opportunities that arise as a result of this Agreement that might be of interest to the Company.

3.Term and Termination
(a)Term.  The term of this Agreement will commence on the date of this Agreement and will terminate upon delivery of written notice by the Company or the Consultant to the other party.

(b)Survival.  Upon such termination all rights and duties of the parties toward each other shall cease except:
(i)That the Company shall be obliged to pay, within 30 days after the termination, all amounts owing to the Consultant for Services completed prior to the termination date and related expenses, if any, in accordance with the provisions of Section 1(b) hereof; and

(ii)Sections 2 (Conflicting Obligations), 4 (Confidentiality) and 5 (Independent Contractors) hereof shall survive termination of this Agreement.

4.Confidentiality

(a)    Consultant recognizes that the Company is engaged in a continuous program of research, development and production respecting its business, present and future, including fields generally related to its business, and the Company possesses or has rights to information and/or in which property rights have been assigned or otherwise conveyed to the Company, which information is not generally known to the public or to other persons who can obtain economic gain from its disclosure and/or which has commercial value in the Company’s business (“Confidential Information”).  By way of illustration, but not limitation, Confidential Information includes strategic plans, trade secrets, customer lists, customer files, growth lists, focus reports, information concerning customer contacts, employee lists, employee files, product ideas, processes, formulas, data and know-how, software and other computer programs and copyrightable materials, mask work rights, improvements, inventions, techniques, marketing plans and strategies, sales and financial reports and forecasts, pricing information, and the salaries, duties, qualifications and performance levels and terms of compensation of other employees.
(b) Consultant understands and agrees that his independent consultant relationship creates a relationship of confidence and trust between the Consultant and the Company with respect to (i) all Confidential Information, and (ii) the confidential information of others with which the Company has a business relationship.  At all times, both during the term of this Agreement and thereafter, the Consultant will keep in confidence and trust all such information, and will not use or disclose any such information without the written consent of the Company, except as may be necessary in the ordinary course of performing his duties to the Company.  The Consultant agrees that the disclosure of such information would cause irreparable damage to the Company reputation and that monetary relief would not adequately compensate the Company for the harm resulting from such disclosure.  Accordingly, the Consultant agree that if he breaches or threatens to breach his obligations of confidentiality, as set forth herein, the Company shall be entitled to temporary or permanent injunctive relief to restrain the disclosure of such information in any action in which the Company seeks to enforce its rights under this Agreement.  This consent to entry of injunctive relief shall not preclude the Company from seeking other and further relief, including monetary damages, in such action and shall not be deemed to be a limitation of the Company’s rights to seek full redress for any violations of the Company's rights under applicable law.

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(c) Upon termination of the Services for any reason, the Consultant shall, to the extent requested by the Company, promptly deliver to the Company all confidential or proprietary information of the Company and any other property of the Company in any form contained (together with all copies thereof, as applicable), including without limitation, any correspondence, drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents, or any other documents concerning the customers, business plans, marketing strategies, products and/or processes of the Company or any of its affiliates and any information regarding third parties received by the Consultant while providing Services.
5.Independent Contractor.  The Consultant expressly acknowledges and agrees that he is solely an independent contractor and the Consultant shall not be construed to be an employee of the Company for purposes of the services provided under this Agreement.  With respect to the services provided as an advisor, the Company shall not be obligated to (a) pay on the account of the Consultant, any unemployment tax or other taxes required under the law to be paid with respect to employees, (b) withhold any monies from the fees of the Consultant for income tax purposes or (c) provide the Consultant with any benefits, including without limitation health, welfare, pension, retirement, or any kind of insurance benefits, including workers’ compensation insurance.  The Consultant acknowledges and agrees that the Consultant is obligated to report as income all compensation received by the Consultant pursuant to this Agreement, and to pay all self-employment and other taxes thereon.  The Consultant and the Company hereby agree and acknowledge that this Agreement does not impose any obligation on the Company to offer employment or Board membership to the Consultant at any time.

6.Assignment.  This Agreement and the rights and duties hereunder are personal to the Consultant and shall not be assigned, delegated, transferred, pledged or sold by the Consultant without the prior written consent of the Company.  The Consultant hereby acknowledges and agrees that the Company may assign, delegate, transfer, pledge or sell this Agreement and the rights and duties hereunder to any third party (a) that acquires all or substantially all of the assets of the Company or (b) that is the surviving or acquiring corporation in connection with a merger, consolidation or other acquisition involving the Company.  This Agreement shall inure to the benefit of and be enforceable by the parties hereto, and their respective heirs, personal representatives, successors and assigns.

7.Limitation on Liabilities.  If the Consultant is awarded any damages as compensation for any breach related to this Agreement or a breach of any covenant contained in this Agreement (whether express or implied by either law or fact), such damages shall be limited to contractual damages and shall exclude (a) punitive damages and (b) consequential and/or incidental damages (e.g., lost profits and other indirect or speculative damages).

8.Governing Law.  Any dispute, controversy, or claim of whatever nature arising out of or relating to this Agreement or breach thereof shall be governed by and interpreted under the laws of the California, without regard to conflict of law principles.

9.Entire Agreement; Counterparts.  This Agreement constitutes the complete and final agreement of the parties and supersede any prior agreements between them, whether written or oral, with respect to the subject matter hereof.  Notwithstanding the above, the Consultant’s Severance Agreement dated December 30, 2016, General Release of All Claims, dated January 6, 2017, and the Confidentiality, Non-Solicitation and Non-Competition Agreement, executed by the Consultant on January 3, 2007, each entered into with Oxford Global Resources, LLC and/or the Company, are not superseded or extinguished and will remain in full force and effect after the execution of this Agreement.  No waiver, alteration, or modification of any of the provisions of this Agreement shall be binding unless in writing and signed by duly authorized representatives of the parties hereto.  This Agreement may be executed in several counterparts, 

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each of which shall be deemed to be an original, but all of which together will constitute one and the same Agreement.

10.Severability.  The invalidity or unenforceability of any provision of this Agreement, or any terms thereof, shall not affect the validity of this Agreement as a whole, which shall at all times remain in full force and effect. 

[Signature Page Follows]

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

ON ASSIGNMENT, INC.

By:      /s/Peter Dameris
Peter Dameris
Chief Executive Officer

CONSULTANT

/s/Michael J. McGowan                
Michael J. McGowan

                        

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