Document:

Stock Option Addendum dated April 2, 2001

Exhibit 10.30.3 
 
STOCK OPTION ADDENDUM 
 
This Stock Option Addendum (this “Addendum”) is entered into as of April 2, 2001 by and
between Exult, Inc. (the “Company”) and Michael F. Henn (“Optionee”). 
 
Optionee has entered into an employment agreement with the Company dated April 2, 2001 (the “Employment Agreement”). In
consideration of the Employment Agreement, the provisions hereof, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and Optionee hereby agree as follows: 
 
1. Upon an Involuntary Termination that occurs at any time
from 60 days before a Change in Control until 548 days after a Change in Control, subject to Section 2, all of the shares of the Company’s capital stock that are at the time of the Involuntary Termination subject to outstanding Covered
Options or issued upon exercise of Covered Options prior to vesting shall automatically vest in full on an accelerated basis so that the Covered Options shall immediately become exercisable for all underlying shares as fully-vested and all shares
issued upon exercise of Covered Options prior to vesting will become free of repurchase rights. The Covered Options shall remain governed by the plan pursuant to which they were granted, including for purposes of the period for which they will
remain exercisable, except to the extent the plan is modified by a written agreement between Optionee and the Company. In order to facilitate the vesting that would be provided by this Addendum in case of a Change in Control occurring 60 days or
less after an Involuntary Termination preceding that Change in Control, any cancellation or termination of unvested Covered Options that would occur as a result of the Involuntary Termination will be deferred until it is determined that no vesting
of those Covered Options will occur pursuant to this Addendum. However, notwithstanding the foregoing, this Addendum will not extend the term or cause vesting of any Covered Options that have lapsed upon expiration of their initial term before
occurrence of the Involuntary Termination and Change in Control required to trigger vesting under this Addendum. 
 
2. The benefits provided to Optionee under this Addendum will in each case be contingent upon and subject to Optionee’s execution and
delivery to the Company, and the effectiveness upon any applicable period of revocability, of a written release in substantially the form attached hereto as Exhibit A. 
 
3. (a) The benefits provided to Optionee under this Addendum will be subject to appropriate income tax
withholding and other deductions required by applicable laws or regulations or approved by Optionee, and Optionee will be responsible for all income taxes payable as a result of receipt of benefits under this Addendum. 
 
    (b) If Optionee becomes obligated to
pay any excise tax on excess parachute payments under Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”) or any similar or successor law or regulation, whether as a result of benefits provided to Optionee under this
Addendum or another agreement by or plan of the Company or any Affiliate of the Company, or both, the Company shall pay an additional amount (the “Gross-Up Payment”) to Optionee at the time specified in the following paragraph. The
Gross-Up Payment shall be equal to the amount necessary so that the net amount retained by Optionee, after subtracting the 

parachute excise tax imposed by Section 4999 of the Code or any successor statute then in effect (the
“Excise Tax”), and after also subtracting all federal, state or local income tax, FICA tax and Excise Tax on the Gross-Up Payment, shall be equal to the net amount Optionee would have retained if no Excise Tax had been imposed and no
Gross-Up Payment had been paid. The amount of the Gross-Up Payment shall be determined in good faith by independent accountants or tax counsel selected by the Company and acceptable to Optionee, who shall apply the following assumptions: (i)
Executive shall be treated as paying federal income taxes at the highest marginal rate in the calendar year in which the Gross-Up Payment is made, and (ii) Optionee shall be treated as paying state and local income taxes at the highest marginal
rate(s) in the calendar year in which the Gross-Up Payment is made in the locality of Optionee’s residence as of the effective date of Optionee’s termination or resignation, net of the maximum reduction in federal income taxes that could
be obtained from deducting those state and local taxes. 
 
    The Gross-Up Payment shall be made within five business days after the event that triggered the Company’s obligation to provide the benefits upon which taxes as described in this Section 3 are payable
(the “Triggering Event”), provided that if the Gross-Up Payment cannot be determined within that time, the Company shall pay Optionee within that time an estimate, determined in good faith by the Company, of the minimum amount of the
Gross-Up Payment and shall pay the remainder (plus interest at the rate provided in Section 1274(b)(2)(B) of the Code) as soon as the amount can be determined but in no event later than the 30th day after the Triggering Event. If the estimated
payment is more than the amount later determined to have been due, the excess (plus interest at the rate provided in Section 1274(b)(2)(B) of the Code) shall be repaid by Optionee within five business days after written demand. 
 
    If the actual Excise Tax imposed is
less than the amount that was taken into account in determining the amount of the Gross-Up Payment, Optionee shall repay at the time that the amount of the reduced Excise Tax is finally determined the portion of the Gross-Up Payment attributable to
that reduction (plus the portion of the Gross-Up Payment attributable to the Excise Tax, FICA tax and federal, state and local income tax imposed on the portion of the Gross-Up Payment being repaid by Optionee, to the extent the repayment results in
a reduction in or refund of the Excise Tax, FICA tax or federal, state or local income tax), plus interest on the amount of the repayment at the rate provided in Section 1274(b)(2)(B) of the Code. If the actual Excise Tax imposed is more than the
amount that was taken into account in determining the amount of the Gross-Up Payment, the Company shall make an additional gross-up payment in respect of such excess (plus interest at the rate provided in Section 1274(b)(2)(B) of the Code) at the
time that the amount of the excess is finally determined. 
 
4. For purposes of this Addendum, the following definitions apply: 
 
“Cause” means (i) Optionee has engaged in any “Misconduct” as defined at the time thereof in the Company’s 2000 Equity Incentive Plan (provided, however, that for the
purposes of this Addendum the last sentence of the first paragraph of such definition of “Misconduct” shall be deleted) or the successor plan thereto; or (ii) Optionee’s conviction of, or plea of nolo contendere to, any felony
or misdemeanor in which the actions forming the basis for the charges for which Optionee was convicted or to which Optionee pled nolo contendere manifested moral turpitude or fraud by Optionee, or that has a material adverse effect (including
without limitation 
 

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reputational effect) upon the Company, or that demonstrates that Optionee is manifestly unfit for a
position of leadership and trust in the Company. 
 
“Change in Control” has the meaning set forth at the time thereof in the Company’s 2000 Equity Incentive Plan or the successor plan thereto, provided that for purposes hereof the threshold for a Change in
Control resulting from stock accumulation shall be 50% rather than 30%, and paragraph (i) of the definition of “Change in Control” in the 2000 Equity Incentive Plan shall accordingly be read to substitute 50% for 30% in each case therein.

 
“Covered Options” means all
options to purchase capital stock of the Company or its successor issued to Optionee at any time before or after execution of this Addendum and all options or other securities issued in replacement for such options, provided that with respect to any
stock options originally issued to Optionee after the date of this Addendum other than the Original Options and any Contingent Options as described in the Employment Agreement dated April 2, 2001, between the Company and Optionee
(“Subsequent Options”), the Company may specify at any time within 30 days before or after the original date of issuance thereof that such Subsequent Options are not Covered Options for purposes hereof. 
 
“Disability” means Permanent Disability as
defined at the time thereof in the Company’s 2000 Equity Incentive Plan, or the successor plan thereto. 
 
“Executive Officers” means officers of the Company or its affiliates with whom the Company has entered into an addendum
substantially in the form hereof. 
 
Resignation
with “Good Reason” means (i) breach by the Company of Optionee’s Employment Agreement or any other material legal obligation to Optionee in any material respect and failure to cure such breach within 15 days of receipt from
Optionee of a written demand for cure delivered to the Company within 60 days after Optionee became aware of the breach, followed by resignation by Optionee of Optionee’s employment within 30 days after the end of such 15-day cure period; or
(ii) resignation by Optionee of Optionee’s employment within 30 days after (A) being directed to relocate Optionee’s primary work location by more than 25 miles, which relocation would increase Optionee’s commuting distance over the
distance to Optionee’s primary work location before the change; (B) Optionee’s level of responsibility, duties, title, or reporting relationships are diminished in any material way; (C) Optionee’s annual salary is reduced below
$300,000 or by more than 15% in any 365-day period; (D) Optionee’s bonus or other incentive compensation eligibility or participation is reduced disproportionately to other Executive Officers, taking into account relative annual salary levels
(provided that non-payment to Optionee of incentive compensation because of Optionee’s failure to achieve reasonable performance milestones consistent with a written incentive compensation plan that was fairly administered will not constitute
Good Reason); or (E) any successor to the Company or its business fails in any acquisition of the Company or its business, or any other reorganization or change-in-control transaction to assume in full all of the obligations of the Company under
this Addendum. 
 
“Involuntary
Termination” means: 
 

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    (i) Optionee’s involuntary dismissal or discharge by the Company or its successor under circumstances other than Cause, death or Disability, or 
 
    (ii) Optionee’s resignation with Good Reason. 
 
5. (a) Except as described in the second sentence of this
Section 5(a), this Addendum supersedes any and all (i) previous agreements or addenda related to acceleration of option vesting upon a Change in Control or “Corporate Transaction,” all of which are hereby terminated and of no further force
or effect and (ii) contrary provisions of any plan pursuant to which Covered Options are granted. However, this Addendum is a supplement to, and not a limitation of, the rights of Optionee under the plans pursuant to which the Covered Options were
issued, and nothing in this Addendum limits acceleration of stock options or other benefits provided to Optionee under stock plans of the Company or separate written agreements entered into by the Company or its successors on or after the date
hereof. 
 
    (b) If Optionee
has rights to acceleration of vesting of the same stock options under this Addendum and also under a separate severance plan or agreement, which rights are triggered in connection with the same termination of employment, then the rights as set forth
herein shall govern, such that Optionee’s rights under Section 3(b) hereof will apply to all stock option acceleration, and any rights of the Company under any such separate severance plan or agreement to cancel stock options or to
rescind stock option exercises, or to cease or recover severance payments, will not be applicable. However, this Addendum will supplement but not limit any rights of Optionee to receive cash severance payments pursuant to any separate severance plan
or agreement. 
 
    (c)
Without limiting the foregoing, if Optionee becomes entitled to the benefits provided under this Addendum, Section 4.14 of the Company’s 2000 Equity Incentive Plan, and any similar provisions of any other plan or agreement otherwise applicable
to Optionee or Optionee’s Covered Options, will cease to apply to, and will in no way affect or confer upon the Company, its successors, or any other party, any rights against, Optionee or Covered Options. 
 
6. Sections 10(b) [Notices], 10(d) [Governing Law;
Severability], 10(e) [Remedies], 10(f) [Arbitration], 10(g) [Waivers; Amendments] and 10(h) [Counterparts] of the Employment Agreement shall be applicable to this Addendum as though set forth herein. Without limiting the foregoing, it is
specifically intended that the prevailing party in disputes hereunder be entitled to recover attorneys’ fees and costs as set forth in Section 10(f) of the Employment Agreement. 
 
IN WITNESS WHEREOF, the Company and Optionee have entered into this Addendum as of the date first above set
forth. 
 
EXULT, INC. 

	
	  By:
	  	
	  	  	  	

	  Name:
	  	
	  	  	  	  Michael F. Henn

	  Title:
	  	
	  	  	  	  	  	  

 

4Incentive Compensation Letter dated April 1, 2001

 
Exhibit
10.30.4 
 
April 1, 2001

 
Michael F. Henn 
527 East Palm Drive 
Glendora, CA 91741 
 
                Re: 2001 Incentive Compensation 
 
Dear Mike: 
 
As an inducement to commencement of your employment with Exult, Inc., this letter sets forth the basic
premises of your 2001 incentive compensation program. 
 
As you know, there is no guarantee that any incentive compensation will be paid for 2001, but Exult is committing to you that for 2001, your target incentive compensation will be $150,000. This incentive compensation will be earned
and payable to you if specific performance milestones are achieved and if you continue to be employed in good standing when 2001 incentive compensation payments for Exult’s Executive Leadership Team are made, which is expected to be within the
first 100 days of 2002. 
 
It is currently
anticipated that your incentive compensation program will have the following features: 
 

	  	 •	 	 100% of your incentive compensation will be based upon Exult’s performance, with no individual performance targets specific to you. 

 

	  	 •	 	 Exult’s performance will be measured by reference to Exult’s 2001 revenue and EBIT (LBIT) results. 

 

	  	 •	 	 Your target incentive compensation will be earned if the specified Exult performance milestones are met, and a portion of your target incentive compensation may be
earned if Exult’s performance falls short of the specified milestones, but nevertheless exceeds any lower base levels specified. 

 
These details may change, but in any case your 2001 target incentive compensation will remain at least $150,000, and the percentage of
your incentive compensation that is based upon Exult’s performance, the specific performance targets that will trigger incentive compensation payments to you, any scaling of your incentive compensation payments in recognition of partial
achievement of Exult’s performance milestones, and any other material features of your 2001 incentive compensation program, will be consistent with those applicable to other members of Exult’s Executive Leadership Team. 
 

 
Michael F. Henn 
April 1, 2001 
Page 2 
 
As noted in your employment agreement, incentive compensation for 2002 and beyond is within the discretion of Exult’s board of
directors. 
 

	  Yours truly,

	
	  Exult, Inc.

	
	  James C. Madden, V

	  Chief Executive Officer

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