Document:

Exhibit
10.3

 

TMP WORLDWIDE INC.

622 THIRD AVENUE

NEW YORK, NY 10017

 

September 24, 2002

 

Mr. John Mclaughlin

 

 

Dear John:

 

This will confirm
our understanding and agreement with respect to your taking the position of
Global Director, Search and Selection, of TMP Worldwide Inc. (the
“Company”).  You and the Company hereby
agree as follows:

 

1.                                       The
Company agrees to employ you and you agree to be employed by the Company as
Global Director, Search and Selection, with such duties and responsibilities
with respect to the Company and its affiliates as the Company’s Chief Executive
Officer (“CEO”) or such other person from time to time designated by the CEO to
deal with matters related to this agreement (the “Designee”) shall reasonably
direct.  You agree to devote your best
efforts, energies, abilities and full business time, skill and attention to
your duties.  You agree to perform the
duties and responsibilities assigned to you to the best of your ability, in a
diligent, trustworthy, businesslike and efficient manner for the purpose of
advancing the business of the Company and to adhere to any and all of the
employment policies of the Company.  You
acknowledge that your duties will require you to be based in the Company’s corporate
headquarters in New York.  Your role in
this new position will commence on a date within the next two months selected
by the Company.

 

2.                                       In
consideration for your services and other agreements hereunder, during your
employment the Company shall (a) pay you a base salary of $500,000 per year
(prorated for periods of less than one year) in regular installments in
accordance with the Company’s payroll practice for salaried employees, (b)
provide you with medical, dental and disability coverage, if any, and 401(k)
Plan, life insurance and other benefit plan eligibility, if any, comparable to
that regularly provided to other senior management in accordance with the
Company’s policies, (c) provide you with 4 weeks vacation per year in
accordance with the Company’s policies (prorated for periods of less than one
year), (d) provide you with annual bonuses of up to 100% of your base salary
from time to time on the basis of satisfaction of such EPS and/or other targets
as are determined by the CEO or the Designee with respect to each calendar year,
(e) provide you with reimbursement of business expenses in accordance with the
Company’s policies subject to the presentation of appropriate receipts and
invoices therefore, and (f) provide you with reimbursement of all
reasonable moving and relocation expenses incurred in connection with (x) the
relocation of you and your family from New Zealand to New York and (y) the
relocation of you and your family back to New Zealand from New York, provided
in the case of (y) you

 

 

relocate back to New
Zealand within 6 months of the termination of this agreement.  Your base salary will be reviewed on an
annual basis, it being understood that any increases in compensation shall be
subject to the sole discretion of the Company’s CEO or the Designee.

 

3.                                       You
may terminate this agreement at any time upon 60 days’ prior written
notice.  The Company may terminate this
agreement at any time upon written notice. 
This agreement shall also terminate automatically in the event you
should die or, in the reasonable determination of the Company, become unable to
perform by reason of physical or mental incompetency your obligations hereunder
for a period of 120 days in any 365 day period. 
It is understood and agreed that in the event that this agreement is
terminated by the Company in accordance with the second sentence of this
Section 3 other than for Cause (as defined below), then subject to (i)
your execution and delivery of the Company’s then current form of separation
agreement and general release applicable to similarly situated employees and
(ii) the expiration of any rescission period provided thereby (without the
rescission having been exercised), you shall, as your sole and exclusive
remedy, be entitled to (i) receive as severance your then applicable base
salary hereunder for a period of twelve months (the “Specified Period”),
payable in regular installments in accordance with the Company’s applicable
payroll practice for salaried employees and (ii) during the Specified Period,
have the Company make available to you (and/or pay COBRA premiums on) medical
and dental benefits on the same terms and conditions as would have been made
available to you had you remained employed by the Company during such
period.  Except as expressly provided in
the preceding sentence, or elsewhere in this agreement or under the terms of
any written option or stock bonus agreement between the parties, in the event
of the termination of this agreement or your employment for any reason, the
Company shall have no further obligations to you hereunder or with respect to
your employment from the effective date of termination.  “Cause” shall mean the occurrence of any one
or more of the following events:  (i)
your willful failure or gross negligence in performance of your duties or
compliance with the reasonable directions of the CEO or the Designee that
remains unremedied for a period of twenty (20) days after the CEO or the
Designee has given written notice specifying in reasonable detail your failure
to perform such duties or comply with such directions; (ii) your failure to
comply with a material employment policy of the Company that remains unremedied
for a period of twenty (20) days after the CEO or the Designee has given
written notice to you specifying in reasonable detail your failure to comply; or
(iii) your commission of (a) a felony, (b) criminal dishonesty or (c) fraud.

 

4.                                       You
acknowledge that you have not relied on any representation not set forth in
this agreement.  You represent that you
are free to enter into this employment arrangement and that you are not bound
by any restrictive covenants or similar provisions restricting the performance
of your duties hereunder.

 

5.                                       In
the event of the termination of your employment by the Company for reasons
other than Cause, any options that have been or may be granted to you by the
Company from time to time pursuant to written option agreements shall
automatically and immediately become

 

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(i) fully vested and (ii)
exercisable for the balance of the ten year term provided by the applicable
stock option agreement, subject to the other terms of such option agreement,
and (iii) in the event of any Change in Control (as defined in Option Agreement
dated September 11, 2002):

 

(a)                                  any
options which have been or may be granted to you by the Company from time to
time pursuant to written option agreements, shall automatically and immediately
become (i) fully vested and (ii) exercisable for the balance of the ten year
term provided by the applicable stock option agreement, subject to the other
terms of such option agreement; and

 

(b)                                 the
shares of Company Common Stock covered by the Stock Bonus Agreement dated
September 11, 2002 shall automatically and immediately become fully
vested,

 

subject in each case of
(a) and (b) to the provisions of Section 6 below.

 

6.                                       Notwithstanding
anything in Section 5 to the contrary, you shall in no event be
entitled to any payment or acceleration of options or shares of Company common
stock that would cause any portion of the amount received by you to constitute
an “excess parachute payment” as defined under Section 280G of the
Internal Revenue Code of 1986, as amended (the “Code”).  In furtherance of the provisions of this
Section 6, the following provisions shall apply:

 

(1)                                  Anything
in this agreement to the contrary notwithstanding, in the event that any
payment or acceleration of options or shares of Company common stock by the
Company to or for your benefit (collectively, a “Payment”) would be
nondeductible by the Company for federal income tax purposes because of
Section 280G of the Code, then the aggregate present value of amounts
payable or distributable to or for your benefit pursuant to this agreement or
any option or stock bonus agreement shall be reduced to the Reduced Amount (as
defined below).  Any such reduction shall
be accomplished first by reducing the number of options to acquire Company
common stock and shares of Company common stock covered by stock bonus
agreements which otherwise would have immediately vested in full, as determined
in the reasonable discretion of the Board of Directors of the Company (the
“Board”), provided that any options and shares of Company common stock so
reduced shall continue to vest in accordance with the terms of the applicable
agreements irrespective of your continued employment or, if earlier, the date
or dates on which such options or shares can vest without being deemed
nondeductible, as determined in the reasonable discretion of the Board, and
second, if necessary, by reducing cash payments constituting part of the
payments or other consideration to which you become entitled (collectively,
such cash payments, other consideration and the aggregate present value of the
immediate vesting of options and shares of Company common stock (calculated in
accordance with Section 280G of the Code and any regulations promulgated
thereunder) are referred to as the “Severance Amount”).

 

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(2)                                  The
“Reduced Amount” shall be the amount, expressed in present value, which
maximizes the aggregate present value of the Severance Amount without causing
any Payment to be nondeductible by the Company because of Section 280G of
the Code.  For purposes of this clause (2),
present value shall be determined in accordance with Section 280(d)(4) of
the Code.

 

(3)                                  All
determinations required to be made under this Section 6 shall be made by
the Company’s independent public accountants (the “Accounting Firm”) which
shall provide detailed supporting calculations to the Company and you.  Any such determination by the Accounting Firm
shall be binding upon the Company and you.

 

(4)                                  It
is possible that as a result of the uncertainty in the application of
Section 280G of the Code at the time of the initial determination by the Accounting
Firm, a portion of the Severance Amount will have been made by the Company
which should not have been made (“Overpayment”) or that an amount in addition
to the Severance Payment which will not have been made could have been made
(“Underpayment”), in each case, consistent with the calculations required to be
made hereunder.

 

(x)                                   Overpayment.  In the event that the Accounting Firm, based
upon the assertion of a deficiency by the Internal Revenue Service against you
which the Accounting Firm believes has a high probability of success,
determines that an Overpayment has been made, any such Overpayment paid or
distributed by the Company to or for your benefit shall be treated for all
purposes as a loan ab initio (from the beginning) to you which you shall repay
to the Company together with interest at the applicable federal rate provided
for in Section 1274(d) of the Code.

 

(y)                                 Underpayment.  If precedent or other substantial authority
indicates that an Underpayment has occurred, any such Underpayment shall be
promptly paid by the Company to or for your benefit together with interest at
the applicable federal rate provided for in Section 1274(d) of the Code.

 

7.                                       All
notices, demands or other communications to be given or delivered under or by
reason of this agreement shall be in writing and shall be deemed to have been
properly served if delivered personally, by courier, or by certified or
registered mail, return receipt requested and first class postage prepaid, in
case of notice to the Company, to the attention of the CEO at the address set
forth on the first page of this agreement (with a copy to Myron Olesnyckyj, TMP
Worldwide Inc., 622 Third Avenue, 39th Floor, New York, NY 10017) and in the
case of notices to you to your office or residence address, or such other
addresses as the recipient party has

 

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specified by prior
written notice to the sending party.  All
such notices and communications shall be deemed received upon the actual
delivery thereof in accordance with the foregoing.

 

8.                                       You
may not assign or delegate this agreement or any of your rights or obligations
hereunder without the prior written consent of the Company.  All references in this agreement to practices
or policies of the Company are references to such practices or policies as may
be in effect from time to time.

 

9.                                       This
agreement (i) constitutes the entire agreement between the parties with respect
to the subject matter hereof and supersedes any previous arrangements relating
thereto, as well as any previous arrangements relating to employment between
you and any of the Company’s affiliates, including but not limited to the
Employment Agreement between you and the Company dated February 7, 2002,
(ii) may be signed in counterparts, (iii) shall be governed by the laws of the
state of New York (other than the conflicts of laws provisions thereof) and
(iv) may not be amended, terminated, extended or waived orally.  Please understand that while it is our hope
that our relationship will be a long one, your employment will be on at “at
will” basis.  Nothing in this letter
should be construed as creating any other type of employment relationship.

 

Please sign the additional originally executed copy of this letter in
the space provided for your signature below to indicate your acceptance and
agreement with the terms of this letter agreement and return one fully executed
original to me.

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  	
   

  
	
   

  	
  TMP WORLDWIDE
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Andrew J.
  McKelvey

  	
   

  
	
   

  	
  Name:

  	
  Andrew J.
  McKelvey

  
	
   

  	
  Title:

  	
  CEO

  
	
   

  	
   

  	
   

  
	
  Accepted and
  agreed:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
    /s/
  John Mclaughlin

  	
   

  	
   

  
	
  John Mclaughlin

  	
   

  	
   

  
							

 

5Exhibt
10.4

 

April 1, 2003

 

Mr. John Mclaughlin

 

 

Dear John:

 

The letter agreement between you and TMP Worldwide,
Inc. dated September 24, 2002 is hereby amended as follows:

 

1. The references in the
first sentence and in Section 1 of the Letter Agreement to “Global Director,
Search and Selection” are each hereby amended to read “Executive Vice
President.”

 

2. The reference to
“period of twelve months” in Section 3 of the Letter Agreement is hereby
amended to read “period determined by subtracting from twelve months the number
of months (or portion thereof) for which you receive payment of base salary
from and after April 1, 2003”.

 

3. The Letter Agreement,
as amended by this agreement, is hereby ratified and confirmed and remains in
full force and effect.

 

Please sign below
to indicate your agreement with the foregoing.

 

	
   

  	
  TMP WORLDWIDE INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Andrew J. McKelvey

  
	
   

  	
  Name:

  	
  Andrew J. McKelvey

  
	
   

  	
  Title:

  	
  CEO

  
	 
	
   

  	
   

  	
   

  	 

	 
	
  Accepted and Agreed:

  	
   

  	
   

  	 

	 
	
   

  	
   

  	
   

  	 

	 
	
    /s/
  John Mclaughlin

  	
   

  	
   

  	
   

  	 

	 
	
  John Mclaughlin

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