Document:

agreementlariat.htm

    
      
        

      
Exhibit
10.74

      ASSIGNMENT AND ASSUMPTION
AGREEMENT

       

      THIS ASSIGNMENT AND ASSUMPTION
AGREEMENT (this “Agreement”),
executed on March 13, 2009, to be effective as of 12:01 a.m. (Central Time) on
April 15, 2009 (the “Effective
Time”), is entered into by and among Lariat Services, Inc., a Texas
corporation (“LARIAT”),
and Clayton Williams Energy, Inc., a Delaware corporation (“CWEI”).  The
parties to this Agreement are collectively referred to herein as the “Parties,”
or individually as a “Party.”

       

      RECITALS

       

      WHEREAS,
each of LARIAT and CWEI holds a 49.5% limited partnership interest (the “LP
Interest”) in Larclay, L.P., a Texas limited partnership (“LARCLAY”);

       

      WHEREAS,
each of LARIAT and CWEI holds a 50% membership interest (the “LLC
Interest” and, together with the LP Interest, the “Interests”)
in Larclay GP, LLC, a Texas limited liability company (“GP”);

       

      WHEREAS,
pursuant to loans made by LARIAT to LARCLAY, there are (a) a Promissory Note,
dated March 31, 2008, in the principal amount of $2,500,000 payable by LARCLAY
to LARIAT (the “March
2008 Note”) and (b) a Revolving Promissory Note, dated June 10, 2008, in
the principal amount of $5,000,000 payable by LARCLAY to LARIAT (together with
the March 2008 Note, the “Notes”);

      

      WHEREAS,
in connection with LARCLAY’s ownership and operation of its fleet of drilling
rigs, LARIAT is a party to (a) Operating Agreement for Drilling Rigs dated April
20, 2006, between LARCLAY and LARIAT (the “Operating
Agreement”) and (b) Consent and Agreement dated April 21, 2006, among
LARCLAY, CWEI, LARIAT and Merrill Lynch Capital (collectively with the Operating
Agreement, the “Ancillary
Agreements”);

      

      WHEREAS,
LARIAT desires to transfer to CWEI, and CWEI desires to accept from LARIAT, the
Interests, the Notes and the Ancillary Agreements; and

       

      WHEREAS,
the Agreement of Limited Partnership of LARCLAY and the Limited Liability
Company Agreement of GP will be amended to the extent necessary to reflect the
applicable matters set forth above and as contained in this
Agreement.

       

      NOW,
THEREFORE, in consideration of the mutual covenants contained herein and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties agree as follows:

      

       

      
        
          
          

        

        
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      ARTICLE 1

       

      ASSIGNMENT
AND ASSUMPTION

       

      Section 1.1                   Assignment
of Interests, Notes and Ancillary Agreements.  Effective as of
the Effective Time, LARIAT hereby assigns, transfers, sets over and delivers
to

      CWEI all
of LARIAT’s right, title and interest in and to the Interests, the Notes and the
Ancillary Agreements, and CWEI hereby accepts LARIAT’s right, title and interest
in and to the Interests, the Notes and the Ancillary Agreements, provided,
however, that LARIAT shall retain the right to all amounts owed by LARCLAY to
LARIAT under the Operating Agreement as of the Effective Time.

       

      Section 1.2                   Assumption
of Obligations and Liabilities and Operatorship.  CWEI hereby
assumes and agrees to timely and fully perform and discharge all duties,
obligations and liabilities arising from or related to and whether arising or
attributable to periods at, before or after the Effective Time: (a) being
Operator under the Operating Agreement, (b) operations of drilling rigs and
other services performed for LARCLAY or its affiliates, (c) the Ancillary
Agreements, (d) LARIAT’s ownership of the Interests and the Notes and (e) the
transactions hereunder or contemplated hereby (collectively, the “Assumed
Obligations”).

       

      Section 1.3                   Waiver of
Claims.  Except as otherwise expressly provided in this
Agreement, CWEI hereby expressly disclaims and waives any and all claims it may
have against LARIAT in connection with the Assumed Obligations. Except as
otherwise expressly provided in this Agreement and except for accounts payable
to LARIAT for ordinary course of business services, LARIAT hereby expressly
disclaims and waives any and all claims it may have against CWEI in connection
with LARIAT’s ownership of the Interests, the Operating Agreement and the
Ancillary Agreements.

       

      Section 1.4                   Transfer
of Equipment.  To the extent that, pursuant to the Operating
Agreement, equipment owned by LARCLAY is in the possession of LARIAT as of the
Effective Time, CWEI will, at its own expense, retrieve such equipment from
LARIAT no later than May 31, 2009.  Notwithstanding that equipment
owned by LARCLAY may be in the possession of LARIAT on or after the Effective
Time, LARIAT shall not be required to maintain insurance coverage for such
equipment after the Effective Time.  CWEI shall reimburse LARIAT for
all storage costs incurred by LARIAT until the time such equipment is retrieved
by CWEI.

       

      ARTICLE 2

       

      REPRESENTATIONS AND
WARRANTIES

       

      Section 2.1                   Representations
and Warranties of LARIAT. LARIAT represents and
warrants to CWEI as follows:

       

      (a)           Organization,
Good Standing and Authority. LARIAT is a corporation
duly formed, validly existing and in good standing under the laws of the State
of Texas.  The execution and delivery of this Agreement and the
consummation by LARIAT of the transactions contemplated herein have been duly
and validly authorized by all necessary corporate action by
LARIAT.  This Agreement has been duly executed and delivered by
LARIAT.  LARIAT has all 

       

       

      
        
          
          

        

        
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      requisite
corporate power and authority to enter into and perform this Agreement, to
perform its obligations hereunder and to carry out the transactions contemplated
herein.

       

      (b)           Enforceability.  This Agreement
constitutes a valid and binding obligation of LARIAT, enforceable against it in
accordance with its terms, subject to applicable bankruptcy,
insolvency, reorganization, moratorium and other similar laws affecting
creditors’ rights generally and general principles of equity.

       

      (c)           Title.  Except
as contemplated by this Agreement, LARIAT has not taken any action to sell or
encumber the Interests.

       

      Section 2.2                   Representations
and Warranties of CWEI. CWEI represents and warrants
to LARIAT as follows:

       

      (a)           Organization,
Good Standing and Authority.  CWEI is a
corporation duly formed, validly existing and in good standing under the laws of
the State of Delaware.  The execution and delivery of this Agreement
and the consummation by CWEI of the transactions contemplated herein have been
duly and validly authorized by all necessary corporate action by
CWEI.  This Agreement has been duly executed and delivered by
CWEI.  CWEI has all requisite corporate power and authority to enter
into and perform this Agreement, to perform its obligations hereunder and to
carry out the transactions contemplated herein.

       

      (b)           Enforceability.  This Agreement
constitutes a valid and binding obligation of CWEI, enforceable against it in
accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium and other similar laws affecting creditors’ rights
generally and general principles of equity.

       

      Section 2.3                   Survival.  All
representations, warranties, covenants and indemnities made by the Parties in
this Agreement or pursuant hereto shall survive the consummation of the
transactions contemplated hereby.

       

      Section 2.4                   Disclaimer
of Representations and Warranties

       

      (a)           THE
PARTIES ACKNOWLEDGE AND AGREE THAT NONE OF THE PARTIES HAS MADE, DOES NOT MAKE,
AND EACH SUCH PARTY SPECIFICALLY NEGATES AND DISCLAIMS, ANY REPRESENTATIONS,
WARRANTIES, PROMISES, COVENANTS, AGREEMENTS OR GUARANTIES OF ANY KIND OR
CHARACTER WHATSOEVER, WHETHER EXPRESS, IMPLIED OR STATUTORY, ORAL OR WRITTEN,
PAST OR PRESENT, OTHER THAN THOSE INCLUDED IN THIS AGREEMENT.  THE
PROVISIONS OF THIS SECTION HAVE BEEN NEGOTIATED BY THE PARTIES AFTER DUE
CONSIDERATION AND ARE INTENDED TO BE A COMPLETE EXCLUSION AND NEGATION OF ANY
REPRESENTATIONS OR WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY, THAT MAY
ARISE PURSUANT TO ANY LAW NOW OR HEREAFTER IN EFFECT, OR OTHERWISE, EXCEPT AS
SET FORTH IN THIS AGREEMENT OR ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN
CONNECTION WITH THIS AGREEMENT.

       

       

      
        
          
          

        

        
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      (b)           Each
of the Parties agrees that the disclaimers contained in this Section 2.4 are
“conspicuous” disclaimers.  Any covenants implied by statute or law by
the use of the words “grant,” “convey,” “bargain,” “sell,” “assign,” “transfer,”
“deliver,” or “set over” or any of them or any other words used in this
Agreement or any exhibits hereto are hereby expressly disclaimed, waived or
negated.

       

      ARTICLE
3

       

      INDEMNIFICATION

       

      Section 3.1                  Indemnification
by LARIAT.  LARIAT shall defend, indemnify and hold
harmless CWEI and its affiliates, and all of its and their directors, officers,
employees, contractors, agents, and representatives (the “CWEI
Indemnitees”) from and against any and all Losses asserted against,
resulting from, imposed upon or incurred by any of the CWEI Indemnitees as a
result of or arising out of the breach of any of the representations or
warranties under Section 2.1 of this Agreement or any breach by LARIAT of any of
its covenants in this Agreement.  “Loss”
or “Losses”
shall mean any and all damages, demands, payments, obligations, penalties,
assessments, disbursements, claims, costs, liabilities, losses, causes of
action, and expenses, including interest, awards, judgments, settlements, fines,
fees, costs of defense and reasonable attorneys’ fees, costs of accountants,
expert witnesses and other professional advisors and costs of investigation and
preparation of any kind or nature whatsoever.

       

      Section 3.2                   Indemnification
by CWEI.  CWEI shall defend, indemnify and hold harmless
LARIAT and its affiliates, and all of its and their directors, officers,
employees,  contractors, agents, and representatives (the “LARIAT
Indemnitees”) from and against any and all Losses asserted against,
resulting from, imposed upon or incurred by any of the LARIAT Indemnitees as a
result of or arising out of:

       

      (a)           the
breach of any of the representations or warranties under Section 2.2 of this
Agreement or any breach by CWEI of any of its covenants in this
Agreement;

       

      (b)           the
Assumed Obligations; and

       

      (c)           that
certain Term Loan and Security Agreement dated as of April 21, 2006, among
LARCLAY, as “Borrower,” each of the lenders that is a signatory thereto or which
becomes a signatory thereto (the “Lenders”),
and Merrill Lynch Capital, a division of Merrill Lynch Business Financial
Services, Inc., as agent for the Lenders.

       

      Section 3.3                   Indemnification
Procedures.

       

      (a)           Any
claim for indemnity under this Agreement shall be in writing and specify in
reasonable detail the specific nature of the claim for indemnification hereunder
(“Claim
Notice”).  Any such claim that is described in a Claim Notice
shall survive with respect to the specific matter described
therein.  Any person claiming indemnification hereunder is referred to
herein as the “Indemnified
Party” and any person against whom such claims are asserted hereunder is
referred to herein as the “Indemnifying
Party.”

       

       

      
        
          
          

        

        
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      (b)           If
any claim, demand, demand letter, notice of noncompliance or violation, action,
suit, investigation, review, or other judicial or administrative proceeding
(each, a “Claim”)
is asserted or instituted against, or any Loss is sought to be collected from,
an Indemnified Party, the Indemnified Party shall with reasonable promptness
provide to the Indemnifying Party a Claim Notice.  The failure to give
any such Claim Notice shall not otherwise affect the rights of the Indemnified
Party to indemnification hereunder unless the
Indemnified Party has proceeded to contest, defend or settle such Claim or
remedy such a Loss with respect to which it has failed to give a Claim
Notice to the Indemnifying Party, but only to the extent the Indemnifying Party
is prejudiced thereby.  Additionally, to the extent the Indemnifying
Party is prejudiced thereby, the failure to provide a Claim Notice to the
Indemnifying Party shall relieve the Indemnifying Party from liability for such
Claims and Losses that it may have to the Indemnified Party, but only to the
extent the liability for such Claims or Losses is directly attributable to such
failure to provide the Claim Notice.

       

      (c)           The
Indemnifying Party shall have thirty (30) days from the personal delivery or
receipt of the Claim Notice (the “Notice
Period”) to notify the Indemnified Party (i) whether or not it disputes
the liability to the Indemnified Party hereunder with respect to the Claim or
Loss, (ii) in the case where Losses are asserted against or sought to be
collected from an Indemnifying Party by the Indemnified Party, whether or not
the Indemnifying Party shall at its own sole cost and expense remedy such Losses
or (iii) in the case where Claims are asserted against or sought to be collected
from an Indemnified Party, whether or not the Indemnifying Party shall at its
own sole cost and expense defend the Indemnified Party against such Claim;
provided however, that any Indemnified Party is hereby authorized prior to and
during the Notice Period to file any motion, answer or other pleading that it
shall deem necessary or appropriate to protect its interests or those of the
Indemnifying Party (and of which it shall have given notice and opportunity to
comment to the Indemnifying Party) and not prejudicial to the Indemnifying
Party.

       

      (d)           If
the Indemnifying Party does not give notice to the Indemnified Party of its
election to contest and defend any such Claim described in Section 3.3(c)(iii)
within the Notice Period, then the Indemnifying Party shall be bound by the
result obtained with respect thereto by the Indemnified Party and shall be
responsible for all costs incurred in connection therewith.

       

      (e)           If
the Indemnifying Party is obligated to defend and indemnify the Indemnified
Party, and the Parties have a conflict of interest with respect to any such
Claim, then the Indemnified Party may, in its sole discretion, separately and
independently contest and defend such Claim, and the Indemnifying Party shall be
bound by the result obtained with respect thereto by the Indemnified Party and
shall be responsible for all costs incurred in connection
therewith.

       

      (f)           If
the Indemnifying Party notifies the Indemnified Party within the Notice Period
that it shall defend the Indemnified Party against a Claim, the Indemnifying
Party shall have the right to defend all appropriate proceedings, and with
counsel of its own choosing (but reasonably satisfactory to the Indemnified
Party) and such proceedings shall be promptly settled (subject to obtaining a
full and complete release of all Indemnified Parties) or prosecuted by it to a
final conclusion.  If the Indemnified Party desires to participate in,
but not control, any such 

       

       

      
        
          
          

        

        
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      defense
or settlement it may do so at its sole cost and expense.  If the
Indemnified Party joins in any such Claim, the Indemnifying Party shall have
full authority to determine all action to be taken with respect thereto, as long
as such action could not create a liability to any of the Indemnified Parties,
in which case, such action would require the prior written consent of any
Indemnified Party so affected.

       

      (g)           If
requested by the Indemnifying Party, the Indemnified Party agrees to cooperate
with the Indemnifying Party and its counsel in contesting any Claim and in
making any counterclaim against the person asserting the Claim, or any
cross-complaint against any person as long as such cooperation, counterclaim or
cross-complaint could not create a liability to any of the Indemnified
Parties.

       

      Section 3.4                                
Exclusive
Remedy.  AS BETWEEN LARIAT AND CWEI, (A) THE EXPRESS
INDEMNIFICATION PROVISIONS SET FORTH IN THIS AGREEMENT, WILL BE THE SOLE AND
EXCLUSIVE RIGHTS, OBLIGATIONS AND REMEDIES OF THE PARTIES WITH RESPECT TO THIS
AGREEMENT AND THE EVENTS GIVING RISE THERETO, AND THE TRANSACTIONS PROVIDED FOR
THEREIN OR CONTEMPLATED THEREBY AND (B) NEITHER PARTY NOR ANY OF ITS RESPECTIVE
SUCCESSORS OR ASSIGNS SHALL HAVE ANY RIGHTS AGAINST THE OTHER PARTY OR ITS
AFFILIATES WITH RESPECT TO THE TRANSACTIONS PROVIDED FOR HEREIN OTHER THAN AS IS
EXPRESSLY PROVIDED IN THIS AGREEMENT.

       

      ARTICLE 4

       

      MISCELLANEOUS

       

      Section 4.1                   Expenses.  Unless
otherwise specifically provided for herein, each Party will bear its own costs
and expenses (including legal fees and expenses) incurred in connection with the
negotiation of this Agreement and the transactions contemplated
hereby.

       

      Section 4.2                   Further
Assurances.  From time to time after the Effective Time, and
without any further consideration, each of the Parties shall execute,
acknowledge and deliver all such additional instruments, notices and other
documents, and will do all such other acts and things, all in accordance with
applicable law, as may be necessary or appropriate to more fully and effectively
carry out the purposes and intent of this Agreement.

       

      Section 4.3                   Headings;
References; Interpretation.  All Article and Section headings
in this Agreement are for convenience only and shall not be deemed to control or
affect the meaning or construction of any of the provisions
hereof.  The words “hereof,” “herein” and “hereunder” and words of
similar import, when used in this Agreement, shall refer to this Agreement as a
whole and not to any particular provision of this Agreement.  All
references herein to Articles and Sections shall, unless the context requires a
different construction, be deemed to be references to the Articles and Sections
of this Agreement.  All personal pronouns used in this Agreement,
whether used in the masculine, feminine or neuter gender, shall include all
other genders, and the singular shall include the plural and vice
versa.  The use herein of the word “including” following any general
statement, term or matter shall not be construed to limit such statement, term
or matter to the specific items or matters set forth immediately
following

       

       

      
        
          
          

        

        
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      such word
or to similar items or matters, whether or not non-limiting language (such as
“without limitation”, “but not limited to”, or words of similar import) is used
with reference thereto, but rather shall be deemed to refer to all other items
or matters that could reasonably fall within the broadest possible scope of such
general statement, term or matter.

       

      Section 4.4                   Successors
and Assigns.  The Agreement shall be binding upon and inure to
the benefit of the Parties and their respective successors and
assigns.

       

      Section 4.5                   No Third
Party Rights.  The provisions of this Agreement are intended to
bind the Parties as to each other and are not intended to and do not create
rights in any other person or confer upon any other person any benefits, rights
or remedies and no person is or is intended to be a third party beneficiary of
any of the provisions of this Agreement.

       

      Section 4.6                   Counterparts.  This
Agreement may be executed in any number of counterparts, all of which together
shall constitute one agreement binding on the parties hereto.

       

      Section 4.7                   Governing
Law; Venue; Jury Trial; and Attorneys’ Fees.  This Agreement
shall be governed by, and construed in accordance with, the laws of the State of
Texas applicable to contracts made and to be performed wholly within such state
without giving effect to conflict of law principles
thereof.   The Parties hereby irrevocably and unconditionally
consent to submit to the exclusive jurisdiction of the courts of the State of
Texas and of the United States District Courts in each case located in Dallas
County, Texas, for any lawsuits, actions or other proceedings arising out of or
relating to this Agreement and agrees not to commence any such lawsuit, action
or other proceeding except in such courts.  Each Party hereby
irrevocably and unconditionally waives any objection to the laying of venue of
any lawsuit, action or other proceeding arising out of or relating to this
Agreement in the courts of the State of Texas or the United States District
Courts in each case located in Dallas County, Texas, and hereby further
irrevocably and unconditionally waives and agrees not to plead or claim in any
such court that any such lawsuit, action or other proceeding brought in any such
court has been brought in an inconvenient forum.  Any right to trial
by jury with respect to any lawsuit, claim or other proceeding arising out of or
relating to this Agreement is expressly and irrevocably waived.  The
Party that substantially prevails on the merits of any action related to this
Agreement shall be awarded all of its costs and attorneys’ fees incurred in
connection therewith, including those incurred during the investigation,
discovery, litigation and appeals thereof.

       

      Section 4.8                   Severability.  If
any of the provisions of this Agreement are held by any court of competent
jurisdiction to contravene, or to be invalid under, the laws of any political
body having jurisdiction over the subject matter hereof, such contravention or
invalidity shall not invalidate the entire Agreement.  Instead, this
Agreement shall be construed as if it did not contain the particular provision
or provisions held to be invalid and an equitable adjustment shall be made and
necessary provision added so as to give effect to the intention of the Parties
as expressed in this Agreement at the time of execution of this
Agreement.

       

      Section 4.9                   Amendment
or Modification.  This Agreement may be amended or modified
from time to time only by the written agreement of all the
Parties.  Each such 

        
          
             

          

          
            7

            
              

            

          

          
             

          

        

      instrument
shall be reduced to writing and shall be designated on its face as an amendment
to this Agreement. 

         

        Section 4.10                 Integration.  This
Agreement and the instruments referenced herein supersede all previous
understandings or agreements among the Parties, whether oral or written,
with respect to their subject matter.  This document and such
instruments contain the entire understanding of the Parties with respect to the
subject matter hereof and thereof.  No understanding, representation,
promise or agreement, whether oral or written, is intended to be or shall be
included in or form part of this Agreement unless it is contained in a written
amendment hereto executed by the Parties after the date of this
Agreement.

      

       

      Section 4.11                 Deed;
Bill of Sale; Assignment. To the extent required and permitted by
applicable law, this Agreement shall also constitute a “deed,” “bill of sale” or
“assignment” of the assets and interests referenced herein.

       

      Section 4.12                 Notices.  All
notices, requests, demands, claims and other communications hereunder will be in
writing.  Any notice, request, demand, claim, or other communication
hereunder will be deemed duly given if (and then two business days after) it is
sent by registered or certified mail, return receipt requested, postage prepaid,
and addressed to the intended recipient as set forth below:

       

      
        
          	 
      
	
                  If
      to LARIAT:

                
	 
      
	 
      
	
                  123
      Robert S. Kerr Avenue

                
	 
      
	
                  Oklahoma
      City, Oklahoma  73102

                
	 
      
	
                  Attn:  Richard
      J. Gognat

                
	 
      
	
                  Fax:  405-753-5983

                
	 
      
	 
      
	
                  If
      to CWEI:

                
	 
      
	 
      
	
                  6
      Desta Drive, Suite 6500

                
	 
      
	
                  Midland,
      Texas  79705

                
	 
      
	
                  Attn:
      Paul Latham

                
	 
      
	
                  Fax:
      432-688-3247

                

        

      

      

      Any Party
may give notice, request, demand, claim, or other communication hereunder using
any other means, but no such notice, request, demand, claim, or other
communication will be deemed

       

       

      
        
          
          

        

        
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      to have
been duly given unless and until it actually is received by the intended
recipient.  Any Party may change the address to which notices,
requests, demands, claims and other communications hereunder are to be delivered
by giving the other Party notice in the manner herein set forth.

      
         

      

       

                Section
4.12.                  Resignation
of Managers.  LARIAT agrees LARIAT will facilitate the
resignation of Dirk M. Van Doren and Randall D. Cooley as Managers of Larclay
GP, LLC effective April 15, 2009.

      
        

        Section
4.13.               
Books,
Records. LARIAT agrees that for a period of 120 days it  will
(a) make available for pickup by CWEI, at CWEI’s cost, all books, records,
certificates of title and any and all other documents associated with the
management and operation of LARCLAY and LLC and (b) it will facilitate, upon
written request by CWEI, the review and copying by CWEI of any and all records
relating to the operation of LARCLAY which are in the possession
of affiliates of LARIAT during normal business hours, provided, however, that
LARIAT may keep copies of any and all such records.

      

      

       [THE
REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

       

      
        
           

        

        
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      IN
WITNESS WHEREOF, this Agreement has been duly executed by the Parties as of the
date first above written.

       

      

      
        
          	 
      
	
                  LARIAT
      SERVICES, INC.

                
	 
      
	 
      
	 
      
	
                  By:  /s/
      Tom W. Ward

                
	 
      
	
                  Name:  Tom
      W. Ward

                
	 
      
	
                  Title:  Chief
      Executive Officer

                
	 
      
	 
      
	 
      
	
                  Clayton
      Williams Energy, Inc.

                
	 
      
	 
      
	 
      
	
                  By:  /s/  L.
      Paul Latham

                
	 
      
	
                  Name:  L.
      Paul Latham

                
	 
      
	
                  Title:  Executive
      Vice President and Chief Operating
Officerex10_11.htm

    

      

       

      ON ASSIGNMENT, INC.

       

       

       AMENDED
AND RESTATED CHANGE IN CONTROL SEVERANCE PLAN

       

       

       AND

       

       

       SUMMARY
PLAN DESCRIPTION

       

      

      Plan
Effective Date:  February 12, 2004

       As
Amended and Restated:  December 11, 2008

       

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

       

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

       

      

      I.           ELIGIBILITY

       

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

       

      
        	
                 
      

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

              

      

      
        	
                 
      

              	
                 

              

      

      
        	
                 
      

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

              

      

      
        	
                 
      

              	
                 

              

      

      
        	
                 
      

              	
                •      you
      execute the General Release of All Claims (a “General Release”), within
      five (5) business days after your termination date or, if you are age
      forty (40) or over, you execute the General Release, within forty-five
      (45) business days after your termination and any rescission period
      specified therein has elapsed without you having rescinded said General
      Release; and

              

      

      
        	
                 
      

              	
                 

              

      

      
        	
                 
      

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

              

      

      
        	
                 
      

              	
                 

              

      

      Excluded Categories of Employees

      
 

      You
are not
eligible for severance benefits under this Plan if:

       

      
        	
                 
      

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

              

      

      
        	
                 
      

              	
                 

              

      

      
        	
                 
      

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

              

      

       

      
        	
                 
      

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

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        	
                 
      

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

              

      

      
        	
                 
      

              	
                 

              

      

      
        	
                 
      

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

              

      

      

      II.           HOW
THE PLAN WORKS

      

      If you
are eligible for severance benefits under the Plan, the amount of your severance
pay will be determined in accordance with the guidelines set forth below,
subject to the Golden Parachute Tax limitation set forth below.  Subject to
the Potential Six Month Delay set forth below, you will receive your severance
pay in a lump-sum payment (with appropriate taxes deducted or withheld) which
will be made as soon as administratively practicable after you experience a
separation from service within the meaning of Section 409A(a)(2)(A)(i) of the
Internal Revenue Code of 1986, as amended, and Treasury Regulation Section
1.409A-1(h) (a “Separation from Service”) as a result of your Involuntary
Termination within 18 months after a Change in Control, but in no event later
than 30 days following the date of your Separation from Service, subject in all
cases to the Company’s receipt of your executed General Release
and the expiration of any rescission period applicable to your executed
General Release.

      
        	
                 
      

              	
                 

              

      

      Severance
Guidelines

       

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

       

      
        	
                 
      

              	
                •

              	
                A
      Pro-Rata Bonus;

              

      

      
        	
                 
      

              	
                 

              

      

      
        	
                 
      

              	
                •     If
      the Eligible Employee was the Chief Executive Officer of the Company
      immediately before the Change in Control:  (1) the Eligible
      Employee will receive 300% of the Eligible Employee’s Annual Base Pay and
      Target Bonus; (2)  for eighteen months following the
      Eligible Employee’s Separation from Service, the Eligible Employee may
      elect to continue the group health, vision and dental coverage he or she
      had in effect as of the Separation from Service (or generally comparable
      coverage) for the Eligible Employee, and if applicable, spouse and
      dependents, under the Consolidated Omnibus Budget Reconciliation Act of
      1985 (“COBRA”)1, and (3) to assist the Eligible Employee
      in offsetting the cost of such continuing benefits, the Eligible Employee
      shall receive a lump sum payment in an after-tax amount, calculated based
      upon the COBRA premium rates as may be charged from time to time for
      employees of the Company (or any successor) generally for the medical,
      dental and/or vision coverage the Eligible Employee had elected under the
      Company’s group health plan at the time of the Eligible Employees
      Separation from Service, for eighteen months (rounded up, if applicable,
      to the next full month). For clarification and avoidance of doubt, if the
      Eligible Employee is not covered under the medical, dental and/or vision
      portions of the Company’s (or any successor’s group health plan as of the
      date of Separation from Service, then the Eligible Employee is not
      eligible for this additional
payment.

              

      

      

        

      

        
        1 A separate
election form and notice outlining continuation coverage under COBRA will be
provided to the Eligible Employee (and, if applicable, his or her eligible
dependents) and must be timely returned to effect
enrollment.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        	
                 
      

              	
                •     If
      the Eligible Employee was an executive vice president and Chief Operating
      Officer of the Company immediately before the Change in
      Control:  (1)  275% of the Eligible Employee’s Annual
      Base Pay and Target Bonus; (2) for eighteen months following the Eligible
      Employee’s Separation from Service, the Eligible Employee may elect to
      continue the group health, vision and dental coverage he or she had in
      effect as of the Separation from Service (or generally comparable
      coverage) for the Eligible Employee, and if applicable, spouse and
      dependents, under COBRA1; and
      (3) to assist the Eligible Employee in offsetting the cost of such
      continuing benefits, the Eligible Employee shall receive a lump sum
      payment in an after-tax amount, calculated based upon the COBRA premium
      rates as may be charged from time to time for employees of the Company (or
      any successor) generally for the medical, dental and/or vision coverage
      the Eligible Employee had elected under the Company’s group health plan at
      the time of the Eligible Employees Separation from Service, for eighteen
      months (rounded up, if applicable, to the next full month). For
      clarification and avoidance of doubt, if the Eligible Employee is not
      covered under the medical, dental and/or vision portions of the Company’s
      (or any successor’s group health plan as of the date of Separation from
      Service, then the Eligible Employee is not eligible for this additional
      payment.

              

      

       

      
        	
                 
      

              	
                •     If
      the Eligible Employee was an executive vice president and Chief Financial
      Officer of the Company immediately before the Change in
      Control:  (1) 250% of the Eligible Employee’s Annual Base Pay
      and Target Bonus;  (2) for eighteen months following the Eligible
      Employee’s Separation from Service, the Eligible Employee may elect to
      continue the group health, vision and dental coverage he or she had in
      effect as of the Separation from Service (or generally comparable
      coverage) for the Eligible Employee, and if applicable, spouse and
      dependents, under COBRA1; and
      (3) to assist the Eligible Employee in offsetting the cost of such
      continuing benefits, the Eligible Employee shall receive a lump sum
      payment in an after-tax amount, calculated based upon the COBRA premium
      rates as may be charged from time to time for employees of the Company (or
      any successor) generally for the medical, dental and/or vision coverage
      the Eligible Employee had elected under the Company’s group health plan at
      the time of the Eligible Employees Separation from Service, for eighteen
      months (rounded up, if applicable, to the next full month). For
      clarification and avoidance of doubt, if the Eligible Employee is not
      covered under the medical, dental and/or vision portions of the Company’s
      (or any successor’s group health plan as of the date of Separation from
      Service, then the Eligible Employee is not eligible for this additional
      payment.

              

      

      
        	
                 
      

              	
                 

              

      

      
        	
                 
      

              	
                •     If
      the Eligible Employee was a senior vice president of the Company and/or
      president of a division of the Company (whether or not an executive
      officer) immediately before the Change in Control:  (1) 200% of
      the Eligible Employee’s Annual Base Pay and Target Bonus; (2) for eighteen
      months following the Eligible Employee’s Separation from Service, the
      Eligible Employee may elect to continue the group health, vision and
      dental coverage he or she had in effect as of the Separation from Service
      (or generally comparable coverage) for the Eligible Employee, and if
      applicable, spouse and dependents, under COBRA1; and
      (3) to assist the Eligible Employee in offsetting the cost of such
      continuing benefits, the Eligible Employee shall receive a lump sum
      payment in an after-tax amount, calculated based upon the COBRA premium
      rates as may be charged from time to time for employees of the Company (or
      any successor) generally for the medical, dental and/or vision coverage
      the Eligible Employee had elected under the Company’s group health plan at
      the time of the Eligible Employees Separation from Service, for eighteen
      months (rounded up, if applicable, to the next full month). For
      clarification and avoidance of doubt, if the Eligible Employee is not
      covered under the medical, dental and/or vision portions of the Company’s
      (or any successor’s group health plan as of the date of Separation from
      Service, then the Eligible Employee is not eligible for this additional
      payment.

              

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                 

              

      

      
        	
                 
      

              	
                •     If
      the Eligible Employee was a vice president or corporate controller
      (whether or not an executive officer), of the Company immediately before
      the Change in Control: (1) 75% of the Eligible Employee’s Annual Base Pay
      and Target Bonus; (2) for eighteen months following the Eligible
      Employee’s Separation from Service, the Eligible Employee may elect to
      continue the group health, vision and dental coverage he or she had in
      effect as of the Separation from Service (or generally comparable
      coverage) for the Eligible Employee, and if applicable, spouse and
      dependents, under COBRA1; and
      (3) to assist the Eligible Employee in offsetting the cost of such
      continuing benefits, the Eligible Employee shall receive a lump sum
      payment in an after-tax amount, calculated based upon the COBRA premium
      rates as may be charged from time to time for employees of the Company (or
      any successor) generally for the medical, dental and/or vision coverage
      the Eligible Employee had elected under the Company’s group health plan at
      the time of the Eligible Employees Separation from Service, for eighteen
      months (rounded up, if applicable, to the next full month). For
      clarification and avoidance of doubt, if the Eligible Employee is not
      covered under the medical, dental and/or vision portions of the Company’s
      (or any successor’s group health plan as of the date of Separation from
      Service, then the Eligible Employee is not eligible for this additional
      payment.;

              

      

      
        	
                 
      

              	
                 

              

      

      
        	
                 
      

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

              

      

      
        	
                 
      

              	
                 

              

      

      
        	
                 
      

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

              

      

      
        	
                 
      

              	
                 

              

      

      
        	
                 
      

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

              

      

      
        	
                 
      

              	
                 

              

      

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

       

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

       

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

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

       

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

       

      
        	
                1.

              	
                a
      change in the ownership of Company whereby one person, or more than one
      person acting as a group, acquires ownership of the outstanding voting
      stock of the Company that, together with stock held by such person or
      group, constitutes more than 50% of the total fair market value or total
      voting power of the stock of Company, as determined in accordance with
      Treas. Reg. §1.409A-3(i)(5)(v).  If
      a person or group is considered either to own more than 50% of the total
      fair market value or total voting power of the Company’s stock, or to have
      effective control of the Company within the meaning of part 2 of the
      definition, and such person or group acquires additional stock of the
      Company, the acquisition of the additional stock shall not be considered
      to cause a change in the ownership of the Company;
  or

              

      

      

      
        	
                2.

              	
                a
      change in the effective control of the Company whereby one person, or more
      than one person acting as a group, acquires (or has acquired during the
      12-month period ending on the date of the most recent acquisition by such
      person or group) ownership of Company stock possessing 30% or more of the
      total voting power of the Company stock, as determined in accordance with
      Treas. Reg. §1.409A-3(i)(5)(vi).  However,
      if a person or group is considered to possess 30% or more of the total
      voting power of the stock of the Company, and such person or group
      acquires additional stock of the Company, the acquisition of additional
      stock by such person or group shall not be considered to cause a change in
      the effective control of Company ;
or

              

      

      

      
        	
                3.

              	
                a
      change in the effective control of the Company whereby a majority of the
      members of the Company’s board of directors is replaced during any
      12-month period by directors whose appointment or election is not endorsed
      by a majority of the members of the Company’s board of directors before
      the date of the appointment or election, as determined in accordance with
      Treas. Reg. §1.409A-3(i)(5)(vi).  In
      determining whether the event described in the preceding sentence has
      occurred, the Company to which the event must relate shall only include a
      corporation identified in
      accordance with Treas. Reg. §1.409A-3(i)(5)(ii)
      for which no other corporation is a majority shareholder;
    or

              

      

      

      
        	
                 
      

              	
                4.         
      a change in the ownership of a substantial portion of the assets of the
      Company, whereby any one person, or more than one person acting as a
      group, acquires (or has acquired during the 12-month period ending on the
      date of the most recent acquisition by such person or persons) assets from
      the Company that have a total gross fair market value equal to or more
      than 40% of the total gross fair market value of all Company assets
      immediately before such acquisition or acquisitions, as determined in
      accordance with Treas. Reg. §1.409A-3(i)(5)(vii).  A
      transfer of assets shall not be treated as a change in the ownership of a
      substantial portion of the assets when such transfer is made to an entity
      that is controlled by the shareholders of the Company, as determined in
      accordance with Treas. Reg. §1.409A-3(i)(5)(vii)(B)..

              

      

      

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

      

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

       

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

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (B)           upon
your resignation following (I) a reduction in your level of Annual Base Pay
or any Target Bonus, (II) a material reduction in your benefits or (III) a
relocation of your place of employment which is more than 35 miles from your
place of employment prior to the Change in Control, such that it
constitutes a material change in the geographic location at which you must
perform services (within the meaning of Section 409A), provided and only if
such change or reduction is effected without your written concurrence,
or

      

      
        	
                (C)

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

              

      

      

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

       

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

       

      Golden Parachute Tax
Gross-Up

       

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

      

      Potential Six Month
Delay

      

      Notwithstanding
anything to the contrary in this Plan, no compensation or Benefits, shall be
paid to you during the 6-month period following your “separation from service”
(within the meaning of Section 409A(a)(2)(A)(i) of the Internal Revenue Code of
1986, as amended (the “Code”)) to the extent
the Plan Administrator determines Executive is a “specified employee” at the
time of such Separation from Service (within the meaning of Section 409A) and
that that paying such amounts at the time or times indicated in this Plan would
be a prohibited distribution under Section 409A(a)(2)(b)(i) of the Code and/or
cause you to incur additional taxes under Section 409A of the
Code.  If the payment of any such amounts is delayed as a result of
the previous sentence, then on the first business day following the end of such
6-month period, (or such earlier date upon which such amount can be paid under
Section 409A without being subject to such additional taxes, including as a
result of your death), the Company shall pay you a lump-sum amount equal to the
cumulative amount that would have otherwise been payable to you during such
6-month period, without interest thereon.

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      III.           OTHER
IMPORTANT INFORMATION

      

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

       

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

       

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

      

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

       

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

       

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

       

      

      IV.           STATEMENT
OF ERISA RIGHTS

      

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

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

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

      

      
        	
                2.

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

              

      

      

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

      

      
        	
                4.

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

              

      

      

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

       

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

       

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

       

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

       

      

      
        	
                V.  

              	
                SECTION
      409A

              

      

      

      The
payments and benefits provided hereunder are
intended to be exempt from or compliant with the requirements of Section
409A.  Notwithstanding any provision of this Plan to the contrary, in
the event that following the effective date hereof, the Company reasonably
determines that any payments or benefits hereunder are not either exempt from or
compliant with the requirements of Section 409A, the Company reserves the right
(without any obligation to do so or to indemnify you for failure to do so), in
its discretion, to amend this Plan, or adopt such
other policies and procedures (including amendments to policies and procedures
with retroactive effect), or take any other actions, that the Company reasonably
determines to be necessary or appropriate (i) to preserve the intended tax
treatment of the payments and benefits provided hereunder, to preserve the
economic benefits with respect to such payments and benefits, and/or to avoid
less favorable accounting or tax consequences and/or (ii) to exempt such
payments and benefits from Section 409A or to comply with the requirements of
Section 409A and thereby avoid the application of penalty taxes
thereunder.

      

      To the extent that any reimbursements hereunder
constitute taxable compensation to you, such
reimbursements shall be made to you promptly, but in no event after December
31st of the year following the year in which the expense was
incurred, the amount of any such amounts reimbursed in one year shall not affect the amount eligible for reimbursement
in any subsequent year, and your right to reimbursement of any such expenses
shall not be subject to liquidation or exchange for any other
benefit.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      ADDITIONAL
PLAN INFORMATION

       

      
        	
                Name
      of Plan:

              	 
      	
                On
      Assignment, Inc. Change in Control Severance Plan

              
	
                Company
      Sponsoring Plan:

              	 
      	
                On
      Assignment, Inc.

                26651
      West Agoura Road

                Calabasas,
      California  91302

              
	
                Employer
      Identification Number:

              	 
      	
                95-4023433

              
	
                Plan
      Number:

              	 
      	
                505

              
	
                Plan
      Year:

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

              
	
                Plan
      Administrator:

              	 
      	
                On
      Assignment, Inc.

                26651
      West Agoura Road

                Calabasas,
      California 91302

                (818)
      878-7900

              
	
                Agent
      for Service of Legal Process:

              	 
      	
                Plan
      Administrator

              
	
                Type
      of Plan:

              	 
      	
                Severance
      Plan/Employee Welfare Benefit Plan

              
	
                Plan
      Costs:

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

              

      

       

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Exhibit
A

      

      
        	
                 
      

              	
                •                  Category
      1.

              

      

      
        	
                 
      

              	
                 

              

      

      
        	
                 
      

              	
                •                  Category
      2.

              

      

       

      
        	
                 
      

              	
                •                  Category
      3.

              

      

      
        	
                 
      

              	
                 

              

      

      
        	
                 
      

              	
                •                  Category
      4.  Eligible Employee who was a senior vice president of
      the Company and/or president of a division of the Company (whether or not
      an executive officer) immediately before the Change in
      Control;

              

      

      

      
        	
                1.  

              	
                Emmett
      McGrath

              

      

      
        	
                2.  

              	
                Michael
      Payne

              

      

      
        	
                3.  

              	
                Mark
      Brouse

              

      

      
        	
                4.  

              	
                Michael
      McGowan

              

      

      
        	
                 
      

              	
                 

              

      

      
        	
                 
      

              	
                •                  Category
      5.  Eligible Employee who was a vice president or
      corporate controller (whether or not an executive officer), of the Company
      immediately before the Change in
Control;

              

      

      

      
        	
                1.  

              	
                Christina
      Gibson

              

      

      
        	
                2.  

              	
                Karen
      Keppel

              

      

      
        	
                3.  

              	
                Carol
      McNamara

              

      

      
        	
                4.  

              	
                Angela
      Kolarek

              

      

      
        	
                5.  

              	
                Samanthe
      Beck

              

      

      

      
        	
                ·  

              	
                Category
      6.  Eligible Employee who was a “director” or an
      “assistant-director” immediately before the Change in
    Control.

              

      

      

      
        	
                1.  

              	
                Dave
      Garaway

              

      

      
        	
                2.  

              	
                Jeffrey
      Hanestad

              

      

      
        	
                3.  

              	
                Michael
      Leroy

              

      

      
        	
                4.  

              	
                Eric
      Radke

              

      

      
        	
                5.  

              	
                Tarini
      Ramaprakash

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00155-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00155-of-00352.parquet"}]]