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Exhibit 10.3.8.2  

 
 

WESTAFF, INC.
  NOTICE OF GRANT OF STOCK OPTION    
  

        Notice is hereby given of the following option grant (the "Option") to purchase shares of the Common Stock of Westaff, Inc. (the "Corporation"): 

        Optionee:    Dwight S. Pedersen 

        Grant Date:    March 1, 2002 

        Vesting Commencement Date:    January 14, 2002 

        Exercise Price:    $2.35 per share 

        Number of Option Shares:    422,341 shares 

        Expiration Date:    January 13, 2012 

        Type of Option:    Non-Statutory Option 

        Exercise Schedule:    The Option shall vest in accordance with the following schedule. In no event shall the Option become
exercisable for any additional Option Shares after Optionee's cessation of Service. 

	DATE
 
	 	VESTED OPTION SHARES

	Vesting Commencement Date	 	207,447
	The earlier to occur of (i) November 1, 2002, (ii) the moment immediately prior to the effective date of a Corporate Transaction or (iii) a Change in Control, provided that the Corporation's Fair Market Value per share of Common Stock equals at least $4.00 or more on each such date or time.	 	100,000
	

The earlier to occur of (i) October 31, 2003, (ii) the moment immediately prior to the effective date of a Corporate Transaction or (iii) a Change in Control, provided that the
Corporation's Fair Market Value per share of Common Stock equals at least $5.00 or more on each such date or time.	
 	

57,447
	

The earlier to occur of (i) October 29, 2004, (ii) the moment immediately prior to the effective date of a Corporate Transaction or (iii) a Change in Control, provided that the
Corporation's Fair Market Value per share of Common Stock equals at least $6.00 or more on each such date or time.	
 	

57,447
	

January 13, 2007	
 	

Any remaining shares that have not yet vested

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        Optionee
understands and agrees that the Option is granted subject to and in accordance with the terms of the Westaff, Inc. 1996 Stock Option/Stock Issuance Plan (the "Plan").
Optionee further agrees to be bound by the terms of the Plan and the terms of the Option as set forth in the Stock Option Agreement attached hereto as Exhibit A. 

        Optionee
hereby acknowledges receipt of a copy of the official prospectus for the Plan and a copy of the Plan in the forms attached hereto as Exhibit B. 

        No Employment or Service Contract.    Nothing in this Notice or in the attached Stock Option Agreement or in the Plan shall
confer upon Optionee any right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Corporation (or any Parent
or Subsidiary employing or retaining Optionee) or of Optionee, which rights are hereby expressly reserved by each, to terminate Optionee's Service at any time for any reason, with or without cause. 

        Definitions.    All capitalized terms in this Notice shall have the meaning assigned to them in this Notice, the Plan or in the
attached Stock Option Agreement. 

	 
	 	 
	 	 
	 

	March 1, 2002	 	 	 	 	 
	

 	
 	

WESTAFF, INC.	

 
	

 	
 	

By:	
 	

 	

 
	 	 	 	 	/s/  W. ROBERT STOVER      
 W. Robert Stover	 
	 	 	Title:	 	Chairman of the Board	 
	

 	
 	

 	
 	

 	

 
	 	 	 	 	/s/  DWIGHT S. PEDERSEN      
 Dwight S. Pedersen	 
	 	 	Address:	 	8041 Golden Eagle Way

Pleasanton, CA 94588	 

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EXHIBIT A
  
    STOCK OPTION AGREEMENT    
  

 
 
 

WESTAFF, INC.
  STOCK OPTION AGREEMENT    
  

RECITALS  

        A.    The
Corporation has adopted the Plan for the purpose of retaining the services of selected Employees, non-employee members of the Board or the board of
directors of any Parent or Subsidiary and consultants and other independent advisors who provide services to the Corporation (or any Parent or Subsidiary). 

        B.    Optionee
is to render valuable services to the Corporation (or a Parent or Subsidiary), and this Agreement is executed pursuant to, and is intended to carry out the
purposes of, the Plan in connection with the Corporation's grant of an option to Optionee. 

        C.    All
capitalized terms in this Agreement shall have the meaning assigned to them in the attached Appendix. 

NOW, THEREFORE, it is hereby agreed as follows: 

        1.    Grant of Option.    The Corporation hereby grants to Optionee, as of the Grant Date, an option to purchase up to
the number of Option Shares specified in the Grant Notice. The Option Shares shall be purchasable from time to time during the option term specified in Paragraph 2 at the Exercise Price. 

        2.    Option Term.    This option shall have a term of ten (10) years measured from the Grant Date and shall
accordingly expire at the close of business on the Expiration Date, unless sooner terminated in accordance with Paragraph 5 or 6. 

        3.    Limited Transferability.    This option shall be neither transferable nor assignable by Optionee other than by
will or by the laws of descent and distribution following Optionee's death and may be exercised, during Optionee's lifetime, only by Optionee. 

        4.    Dates of Exercise.    This option shall become exercisable for the Option Shares in one or more installments as
specified in the Grant Notice. As the option becomes exercisable for such installments, those installments shall accumulate and the option shall remain exercisable for the accumulated installments
until the Expiration Date or sooner termination of the option term under Paragraph 5 or 6. 

        5.    Cessation of Service.    The option term specified in Paragraph 2 shall terminate (and this option shall
cease to be outstanding) prior to the Expiration Date should any of the following provisions become applicable: 

        (a)  Should
Optionee cease to remain in Service for any reason (other than death, Permanent Disability or Misconduct) while this option is outstanding, then Optionee shall
have a period of three (3) months (commencing with the date of such cessation of Service) during which to exercise this option, but in no event shall this option be exercisable at any time
after the Expiration Date. 

        (b)  Should
Optionee die while this option is outstanding, then the personal representative of Optionee's estate or the person or persons to whom the option is transferred
pursuant to Optionee's will or in accordance with the laws of descent and distribution shall have the right to exercise this option. Such right shall lapse, and this option shall cease to be
outstanding, upon the earlier of (i) the expiration of the twelve (12)-month period measured from the date of Optionee's death or (ii) the Expiration Date. 

        (c)  Should
Optionee cease Service by reason of Permanent Disability while this option is outstanding, then Optionee shall have a period of twelve (12) months
(commencing with the 

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date of such cessation of Service) during which to exercise this option. In no event shall this option be exercisable at any time after the Expiration Date. 

        (d)  Should
Optionee's Service be terminated for Misconduct, then this option shall terminate immediately and cease to remain outstanding. 

        (e)  During
the applicable post-Service exercise period, this option may not be exercised in the aggregate for more than the number of vested Option Shares for
which the option is exercisable at the time of Optionee's cessation of Service. Upon the expiration of such exercise period or (if earlier) upon the Expiration Date, this option shall terminate and
cease to be outstanding for any vested Option Shares for which the option has not been exercised. However, this option shall, immediately upon Optionee's cessation of Service for any reason, terminate
and cease to be outstanding with respect to any Option Shares in which Optionee is not otherwise at that time vested or for which this option is not otherwise at that time exercisable. 

        6.    Special Acceleration of Option.    

        (a)  This
option, to the extent outstanding at the time of a Corporate Transaction but not otherwise fully exercisable, shall automatically accelerate so that this option
shall, immediately prior to the effective date of the Corporate Transaction, become exercisable for all of the Option Shares at the time subject to this option and may be exercised for any or all of
those Option Shares as fully-vested shares of Common Stock. No such acceleration of this option, however, shall occur if and to the extent: (i) this option is, in connection with the Corporate
Transaction, either to be assumed by the successor corporation (or parent thereof) or to be replaced with a comparable option to purchase shares of the capital stock of the successor corporation (or
parent thereof) or (ii) this option is to be replaced with a cash incentive program of the successor corporation which preserves the spread existing on the Option Shares at the time of the
Corporate Transaction (the excess of the Fair Market Value of those Option Shares over the aggregate Exercise Price payable for such shares) and provides for subsequent pay-out in
accordance with the option exercise schedule set forth in the Grant Notice. The determination of option comparability under clause (i) shall be made by the Plan Administrator, and such
determination shall be final, binding and conclusive. 

        (b)  Immediately
following the Corporate Transaction, this option, to the extent not previously exercised, shall terminate and cease to be outstanding or exercisable, except
to the extent assumed by the successor corporation (or parent thereof) in connection with such Corporate Transaction. 

        (c)  If
this option is assumed in connection with a Corporate Transaction, then this option shall be appropriately adjusted, immediately after such Corporate Transaction, to
apply to the number and class of securities which would have been issuable to Optionee in consummation of such Corporate
Transaction had the option been exercised immediately prior to such Corporate Transaction, and appropriate adjustments shall also be made to the Exercise Price, provided the aggregate Exercise Price
shall remain the same. 

        (d)  This
Agreement shall not in any way affect the right of the Corporation to adjust, reclassify, reorganize or otherwise change its capital or business structure or to
merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets. 

        7.    Adjustment in Option Shares.    Should any change be made to the Common Stock by reason of any stock split,
stock dividend, recapitalization, combination of shares, exchange of shares or other change affecting the outstanding Common Stock as a class without the Corporation's receipt of consideration,
appropriate adjustments shall be made to (i) the total 

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number and/or class of securities subject to this option and (ii) the Exercise Price in order to reflect such change and thereby preclude a dilution or enlargement of benefits hereunder. 

        8.    Stockholder Rights.    The holder of this option shall not have any stockholder rights with respect to the
Option Shares until such person shall have exercised the option, paid the Exercise Price and become a holder of record of the purchased shares. 

        9.    Manner of Exercising Option.    

        (a)  In
order to exercise this option with respect to all or any part of the Option Shares for which this option is at the time exercisable, Optionee (or any other person or
persons exercising the option) must take the following actions: 

        (i)    Execute
and deliver to the Corporation a Notice of Exercise for the Option Shares for which the option is exercised. 

        (ii)  Pay
the aggregate Exercise Price for the purchased shares in one or more of the following forms: 

        (A)  cash
or check made payable to the Corporation; 

        (B)  shares
of Common Stock held by Optionee (or any other person or persons exercising the option) for the requisite period necessary to avoid a charge to the Corporation's
earnings for financial reporting purposes and valued at Fair Market Value on the Exercise Date; or 

        (C)  to
the extent this option is exercised for vested Option Shares, through a special sale and remittance procedure pursuant to which Optionee (or any other person or
persons exercising the option) shall concurrently provide irrevocable written instructions (I) to a Corporation-designated brokerage firm to effect the immediate sale of the purchased shares
and remit to the Corporation, out of the sale proceeds available on the settlement date, sufficient funds to cover the aggregate Exercise Price payable for the purchased shares plus all applicable
Federal, state and local income and employment taxes required to be withheld by the Corporation by reason of such exercise and (II) to the Corporation to deliver the certificates for the
purchased shares directly to such brokerage firm in order to complete the sale transaction. Except to the extent the sale and remittance procedure is utilized in connection with the option exercise,
payment of the Exercise Price must accompany the Notice of Exercise delivered to the Corporation in connection with the option exercise. 

        (iii)  Furnish
to the Corporation appropriate documentation that the person or persons exercising the option (if other than Optionee) have the right to exercise this option. 

        (iv)  Make
appropriate arrangements with the Corporation (or Parent or Subsidiary employing or retaining Optionee) for the satisfaction of all Federal, state and local income
and employment tax withholding requirements applicable to the option exercise. 

        (b)  As
soon as practical after the Exercise Date, the Corporation shall issue to or on behalf of Optionee (or any other person or persons exercising this option) a
certificate for the purchased Option Shares, with the appropriate legends affixed thereto. 

        (c)  In
no event may this option be exercised for any fractional shares. 

        10.    Compliance with Laws and Regulations.    

        (a)  The
exercise of this option and the issuance of the Option Shares upon such exercise shall be subject to compliance by the Corporation and Optionee with all applicable 

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requirements of law relating thereto and with all applicable regulations of any stock exchange (or the Nasdaq National Market, if applicable) on which the Common Stock may be listed for trading at
the time of such exercise and issuance. 

        (b)  The
inability of the Corporation to obtain approval from any regulatory body having authority deemed by the Corporation to be necessary to the lawful issuance and sale
of any Common Stock pursuant to this option shall relieve the Corporation of any liability with respect to the non-issuance or sale of the Common Stock as to which such approval shall not
have been obtained. The Corporation, however, shall use its best efforts to obtain all such approvals. 

        11.    Successors and Assigns.    Except to the extent otherwise provided in Paragraphs 3 and 6, the provisions of
this Agreement shall inure to the benefit of, and be binding upon, the Corporation and its successors and assigns and Optionee, Optionee's assigns and the legal representatives, heirs and legatees of
Optionee's estate. 

        12.    Notices.    Any notice required to be given or delivered to the Corporation under the terms of this Agreement
shall be in writing and addressed to the Corporation at its principal corporate offices. Any notice required to be given or delivered to Optionee shall be in writing and addressed to Optionee at the
address indicated below Optionee's signature line on the Grant Notice. All notices shall be deemed effective upon personal delivery or upon deposit in the U.S. mail, postage prepaid and properly
addressed to the party to be notified. 

        13.    Construction.    This Agreement and the option evidenced hereby are made and granted pursuant to the Plan and
are in all respects limited by and subject to the terms of the Plan. All decisions of the Plan Administrator with respect to any question or issue arising under the Plan or this Agreement shall be
conclusive and binding on all persons having an interest in this option. 

        14.    Governing Law.    The interpretation, performance and enforcement of this Agreement shall be governed by the
laws of the State of California without resort to that State's conflict-of-laws rules. 

        15.    Excess Shares.    If the Option Shares covered by this Agreement exceed, as of the Grant Date, the number of
shares of Common Stock which may without stockholder approval be issued under the Plan, then this option shall be void with respect to those excess shares, unless stockholder approval of an amendment
sufficiently increasing the number of shares of Common Stock issuable under the Plan is obtained in accordance with the provisions of the Plan. 

        16.    Additional Terms Applicable to an Incentive Option.    In the event this option is designated an Incentive
Option in the Grant Notice, the following terms and conditions shall also apply to the grant: 

        (a)  This
option shall cease to qualify for favorable tax treatment as an Incentive Option if (and to the extent) this option is exercised for one or more Option Shares:
(A) more than three (3) months after the date Optionee ceases to be an Employee for any reason other than death or Permanent Disability or
(B) more than twelve (12) months after the date Optionee ceases to be an Employee by reason of Permanent Disability. 

        (b)  No
installment under this option shall qualify for favorable tax treatment as an Incentive Option if (and to the extent) the aggregate Fair Market Value (determined at
the Grant Date) of the Common Stock for which such installment first becomes exercisable hereunder would, when added to the aggregate value (determined as of the respective date or dates of grant) of
the Common Stock or other securities for which this option or any other Incentive Options granted to Optionee prior to the Grant Date (whether under the Plan or any other option plan of the
Corporation or any Parent or Subsidiary) first become exercisable 

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during the same calendar year, exceed One Hundred Thousand Dollars ($100,000) in the aggregate. Should such One Hundred Thousand Dollar ($100,000) limitation be exceeded in any calendar year, this
option shall nevertheless become exercisable for the excess shares in such calendar year as a Non-Statutory Option. 

        (c)  Should
the exercisability of this option be accelerated upon a Corporate Transaction, then this option shall qualify for favorable tax treatment as an Incentive Option
only to the extent the aggregate Fair Market Value (determined at the Grant Date) of the Common Stock for which this option first becomes exercisable in the calendar year in which the Corporate
Transaction occurs does not, when added to the aggregate value (determined as of the respective date or dates of grant) of the Common Stock or other securities for which this option or one or more
other Incentive Options granted to Optionee prior to the Grant Date (whether under the Plan or any other option plan of the Corporation or any Parent or Subsidiary) first become exercisable during the
same calendar year, exceed One Hundred Thousand Dollars ($100,000) in the aggregate. Should the applicable One Hundred Thousand Dollar ($100,000) limitation be exceeded in the calendar year of such
Corporate Transaction, the option may nevertheless be exercised for the excess shares in such calendar year as a Non-Statutory Option. 

        (d)  Should
Optionee hold, in addition to this option, one or more other options to purchase Common Stock which become exercisable for the first time in the same calendar
year as this option, then the foregoing limitations on the exercisability of such options as Incentive Options shall be applied on the basis of the order in which such options are granted. 

        17.    Leave of Absence.    The following provisions shall apply upon the Optionee's commencement of an authorized
leave of absence: 

        (a)  The
exercise schedule in effect under the Grant Notice shall be frozen as of the first day of the authorized leave, and the option shall not become exercisable for any
additional installments of the Option Shares during the period Optionee remains on such leave. 

        (b)  Should
Optionee resume active Employee status within sixty (60) days after the start date of the authorized leave, Optionee shall, for purposes of the exercise
schedule set forth in the Grant Notice, receive Service credit for the entire period of such leave. If Optionee does not resume active Employee status within such sixty (60)-day period,
then no Service credit shall be given for the period of the leave. 

        (c)  If
the option is designated as an Incentive Stock Option in the Grant Notice, then the following additional provision shall apply: 

If
the leave of absence continues for more than ninety (90) days, then the option shall automatically convert to a Non-Statutory Option under the federal tax laws on the day three
(3) months and one (1) day following the ninety-first (91st) day of such leave, unless the Optionee's reemployment rights are guaranteed by statute or by written agreement. Following any
such conversion of the option, all subsequent exercises of such option, whether effected before or after Optionee's return to active Employee status, shall result in an immediate taxable event, and
the Corporation shall be required to collect from Optionee the federal, state and local income and employment withholding taxes applicable to such exercise. 

        (d)  In
no event shall this option become exercisable for any additional Option Shares or otherwise remain outstanding if Optionee does not resume Employee status prior to
the Expiration Date of the option term. 

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EXHIBIT I
  NOTICE OF EXERCISE    
  

        I hereby notify Westaff, Inc. (the "Corporation") that I elect to purchase shares of the Corporation's Common Stock (the "Purchased Shares") at the option
exercise price of $2.35 per share (the "Exercise Price") pursuant to a Non-Statutory Option (the "Option") granted to me under the Corporation's 1996 Stock Option/Stock Issuance Plan on
March 1, 2002. 

        Concurrently
with the delivery of this Exercise Notice to the Corporation, I shall hereby pay to the Corporation the Exercise Price for the Purchased Shares in accordance with the
provisions of my agreement with the Corporation (or other documents) evidencing the Option and shall deliver whatever additional documents may be required by such agreement as a condition for
exercise. Alternatively, I may utilize the special broker-dealer sale and remittance procedure specified in my agreement to effect payment of the Exercise Price for any Purchased Shares in which I am
at the time vested. 

	 
	 	 
	 	 

	                                        
        , 200    

Date	 	 	 	 
	 	 	
 Dwight S. Pedersen
	

 	
 	

Address:	
 	

8041 Golden Eagle Way

Pleasanton, CA 94588

	 
	 	 

	Print name in exact manner it is to appear on the stock certificate:	 	

	

Address to which certificate is to be sent, if different from address above:	
 	

	

 	
 	

 
	 	 	

	

Social Security Number:	
 	

	

Employee Number:	
 	

  

 
 

APPENDIX    
  

        The following definitions shall be in effect under the Agreement: 

        A.    Agreement shall mean this Stock Option Agreement. 

        B.    Board shall mean the Corporation's Board of Directors. 

        C.    Code shall mean the Internal Revenue Code of 1986, as amended. 

        D.    Common Stock shall mean the Corporation's common stock, with par value of $0.01 per share. 

        E.    Corporate Transaction shall mean either of the following stockholder approved transactions to which the Corporation is a
party: 

        (a)  a
merger or consolidation in which securities possessing more than fifty percent (50%) of the total combined voting power of the Corporation's outstanding securities are
transferred to a person or persons different from the persons holding those securities immediately prior to such transaction, or 

        (b)  the
sale, transfer or other disposition of all or substantially all of the Corporation's assets in complete liquidation or dissolution of the Corporation. 

        F.    Corporation shall mean Westaff, Inc., a Delaware corporation. 

        G.    Employee shall mean an individual who is in the employ of the Corporation (or any Parent or Subsidiary), subject to the
control and direction of the employer entity as to both the work to be performed and the manner and method of performance. 

        H.    Exercise Date shall mean the date on which the option shall have been exercised in accordance with Paragraph 9 of
the Agreement. 

        I.    Exercise Price shall mean the exercise price per share as specified in the Grant Notice. 

        J.    Expiration Date shall mean the date on which the option expires as specified in the Grant Notice. 

        K.    Fair Market Value per share of Common Stock on any relevant date shall be determined in accordance with the following
provisions: 

        (a)  If
the Common Stock is at the time traded on the Nasdaq National Market, then the Fair Market Value shall be the closing selling price per share of Common Stock on the
date in question, as the price is reported by the National Association of Securities Dealers on the Nasdaq National Market or any successor system. If there is no closing selling price for the Common
Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists. 

        (b)  If
the Common Stock is at the time listed on any Stock Exchange, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in
question on the Stock Exchange determined by the Plan Administrator to be the primary market for the Common Stock, as such price is officially quoted in the composite tape of transactions on such
exchange. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such
quotation exists. 

        L.    Grant Date shall mean the date of grant of the option as specified in the Grant Notice. 

        M.  Grant Notice shall mean the Notice of Grant of Stock Option accompanying the Agreement, pursuant to which Optionee has
been' informed of the basic terms of the option evidenced hereby. 

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        N.    Incentive Option shall mean an option which satisfies the requirements of Code Section 422. 

        O.    Misconduct shall mean the commission of any act of fraud, embezzlement or dishonesty by Optionee, any unauthorized use or
disclosure by Optionee of confidential information or trade secrets of the Corporation (or any Parent or Subsidiary), or any other intentional misconduct by Optionee adversely affecting the business
or affairs of the Corporation (or any Parent or Subsidiary) in a material manner. The foregoing definition shall not be deemed to be inclusive of all the acts or omissions which the Corporation (or
any Parent or Subsidiary) may consider as grounds for the dismissal or discharge of Optionee or any other individual in the Service of the Corporation (or any Parent or Subsidiary). 

        P.    Non-Statutory Option shall mean an option not intended to satisfy the requirements of Code Section 422. 

        Q.    Notice of Exercise shall mean the notice of exercise in the form attached hereto as Exhibit I. 

        R.    Option Shares shall mean the number of shares of Common Stock subject to the option as specified in the Grant Notice. 

        S.    Optionee shall mean the person to whom the option is granted as specified in the Grant Notice. 

        T.    Parent shall mean any corporation (other than the Corporation) in an unbroken chain of corporations ending with the
Corporation, provided each corporation in the unbroken chain (other than the Corporation) owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined
voting power of all classes of stock in one of the other corporations in such chain. 

        U.    Permanent Disability shall mean the inability of Optionee to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment which is expected to result in death or has lasted or can be expected to last for a continuous period of twelve (12) months or more. 

        V.    Plan shall mean the Corporation's 1996 Stock Option/Stock Issuance Plan, as amended and restated from time to time. 

        W.    Plan Administrator shall mean either the Board or a committee of Board members, to the extent the committee is at the time
responsible for the administration of the Plan. 

        X.    Service shall mean the Optionee's performance of services for the Corporation (or any Parent or Subsidiary) in the
capacity of an Employee, a non-employee member of the board of directors or a consultant or independent advisor. 

        Y.    Stock Exchange shall mean the American Stock Exchange or the New York Stock Exchange. 

        Z.    Subsidiary shall mean any corporation (other than the Corporation) in an unbroken chain of corporations beginning with the
Corporation, provided each corporation (other than the last corporation) in the unbroken chain owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total
combined voting power of all classes of stock in one of the other corporations in such chain. 

A-2

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WESTAFF, INC. NOTICE OF GRANT OF STOCK OPTION

EXHIBIT A STOCK OPTION AGREEMENT

WESTAFF, INC. STOCK OPTION AGREEMENT

EXHIBIT I NOTICE OF EXERCISE

APPENDIX<Page>

                                                                   Exhibit 10.01

                    AMENDED AND RESTATED EMPLOYMENT AGREEMENT

                  This Amended and Restated Employment Agreement is made and
entered into as of November 16, 2001 by and between Citigroup Inc., a Delaware
corporation (together with its direct and indirect successors, the "COMPANY"),
and Sanford I. Weill ("WEILL").

                  WHEREAS, Commercial Credit Company, a predecessor to the
Company ("CCC"), previously entered into an Employment Agreement with Weill
dated as of December 31, 1987; and

                  WHEREAS, the Company and Weill desire to amend and restate
such Employment Agreement (as so amended and restated, this "AGREEMENT") to
provide for a continuing relationship.

                  NOW THEREFORE, the Company and Weill do hereby agree as
follows:

                  1.       EMPLOYMENT. The Company agrees to employ Weill on a
                           full time basis as its Chairman of the Board and
                           Chief Executive Officer. Weill shall have in such
                           positions all of the duties, responsibilities and
                           powers afforded to such officers under the Articles
                           of Incorporation and By-laws of the Company, as in
                           effect from time to time. Weill agrees to render the
                           best services and efforts that he is capable of in
                           connection with the performance of such duties and
                           responsibilities.

                  2.       PERSONAL ACTIVITIES OF WEILL. Notwithstanding
                           anything to the contrary contained in this Agreement,
                           nothing in this Agreement shall preclude Weill from
                           devoting reasonable periods of time to: (i) serving
                           as a director or member of a committee of any
                           organization which does not involve a material
                           conflict of interest with the interests of the
                           Company; (ii) engaging in charitable and community
                           activities; or (iii) managing his personal
                           investments; PROVIDED, HOWEVER, that such activities
                           do not interfere with the performance of his
                           employment duties and responsibilities under this
                           Agreement.

                  3.       EMPLOYMENT TERM. The employment relationship created
                           by this Agreement shall commence as of the date of
                           this Agreement and shall continue until December 31,
                           2001. Such term shall automatically be renewed for
                           successive one-year periods beginning January 1,
                           2002, unless either party gives written notice of
                           non-renewal at least 60 days prior to any December 31
                           expiration (such term, including any automatic
                           renewal thereof, the "EMPLOYMENT TERM").

                  4.       EMPLOYMENT COMPENSATION.

                           (a)      In consideration for all employment services
                                    rendered to the Company under this
                                    Agreement, the Company agrees to pay to
                                    Weill an annual salary at a rate to be
                                    determined from time to time by the Board of
                                    Directors of the Company or an authorized
                                    committee thereof (including any such
                                    determinations made prior to the effective
                                    date of this Agreement); PROVIDED that any
                                    reduction in such salary may only be made
                                    with the prior written consent of Weill.
                                    Such annual salary

<Page>

                                    shall be payable in accordance with the
                                    Company's regular payroll procedures.

                           (b)      Weill shall be entitled to receive such
                                    incentive payments, on an annual and/or
                                    special basis, as may be determined from
                                    time to time by the Board of Directors of
                                    the Company or an authorized committee
                                    thereof (including any such determinations
                                    made prior to the effective date of this
                                    Agreement). Such incentive payments may but
                                    need not be part of incentive programs
                                    established generally for senior officers of
                                    the Company.

                           (c)      Weill shall be entitled to participate in
                                    such employee benefit programs as may be
                                    determined from time to time by the Board of
                                    Directors of the Company or an authorized
                                    committee thereof (including any such
                                    determinations made prior to the effective
                                    date of this Agreement).

                           (d)      (i) All stock options granted to Weill after
                                    the date of this Agreement (including any
                                    reload stock options) shall provide, and
                                    (ii) all stock options held by Weill as of
                                    the date of this Agreement shall be amended
                                    to provide, that such options shall (x)
                                    immediately vest on his Retirement (as
                                    defined in Section 5(a) below) and (y)
                                    subject to Section 7(b)(i)(y) below, remain
                                    exercisable for their full respective terms
                                    following any Retirement, except, in the
                                    case of any stock options held as of the
                                    date of this Agreement, if the same would
                                    result in an accounting charge to the
                                    Company, as determined by the Company's
                                    outside accounting firm.

                  5.       TERMINATION OF EMPLOYMENT.

                           (a)      Method of Termination. The employment
                                    relationship created by this Agreement may
                                    be terminated prior to the end of the
                                    Employment Term as follows:

                                    (i)      By the Company, in the event of the
                                             death of Weill.

                                    (ii)     By the Company, in the event of the
                                             illness, physical or mental
                                             disability or other incapacity of
                                             Weill, if such incapacity or
                                             disability renders Weill unable to
                                             render those services to the
                                             Company which he is obligated to
                                             perform pursuant to the terms of
                                             this Agreement.

                                    (iii)    By the Company, upon the giving of
                                             at least 90 days prior written
                                             notice, in the event Weill refuses
                                             or neglects, in any material
                                             respect, to attend to the
                                             performance of his duties and
                                             responsibilities in accordance with
                                             the provisions of this Agreement
                                             (other than by reason of illness or
                                             disability as described in Section
                                             5(a)(ii) above).

                                    (iv)     By the Company, for cause (meaning,
                                             for purposes hereof, fraud or the
                                             conviction of any crime
                                             constituting a felony), effective
                                             immediately.

                                       2
<Page>

                                    (v)      By the Company, upon the giving of
                                             at least 120 days prior written
                                             notice, without cause.

                                    (vi)     By Weill, upon the giving of at
                                             least 30 days prior written notice,
                                             in the event of a material breach
                                             by the Company of any of its
                                             obligations under this Agreement.

                                    (vii)    In the event of the written consent
                                             of both parties hereto, effective
                                             as of the date specified in such
                                             written consent.

                                    Any termination of Weill's employment
                                    pursuant to Sections 5(a)(ii), 5(a)(v),
                                    5(a)(vi) or 5(a)(vii) above or pursuant to a
                                    notice of non-renewal given by the Company
                                    as described in Section 3 above shall be
                                    deemed a "RETIREMENT" for purposes of this
                                    Agreement.

                           (b)      Termination Compensation. The following
                                    provisions shall apply in the event of the
                                    termination of the employment relationship
                                    created by this Agreement:

                                    (i)      In the event of a termination
                                             pursuant to Section 5(a)(i) above,
                                             the Company shall pay to Weill (or
                                             his executor or administrator, as
                                             the case may be) the annual salary
                                             and employee benefits in effect
                                             immediately prior to such
                                             termination through the end of the
                                             year during which such termination
                                             occurs or for six months following
                                             such termination, whichever shall
                                             be greater, and such additional
                                             payments relating to incentive,
                                             death, retirement or other matters
                                             as may be determined to be
                                             appropriate by the Board of
                                             Directors of the Company or an
                                             authorized committee thereof. Any
                                             stock options held by Weill shall
                                             immediately vest and become
                                             exercisable, and any restrictions
                                             on shares of restricted stock held
                                             by Weill as of the date of such
                                             termination shall immediately
                                             lapse.

                                    (ii)     In the event of a termination
                                             pursuant to Section 5(a)(ii) above,
                                             subject to Weill's compliance with
                                             the covenants set forth in Section
                                             7(a) below, the Company shall
                                             continue to pay to Weill (or his
                                             legal guardian, as the case may be)
                                             the annual salary and employee
                                             benefits in effect immediately
                                             prior to such termination through
                                             the end of the year during which
                                             such termination occurs or for six
                                             months following such termination,
                                             whichever shall be greater, and
                                             such additional payments relating
                                             to incentive, disability,
                                             retirement or other matters as may
                                             be determined to be appropriate by
                                             the Board of Directors of the
                                             Company or an authorized committee
                                             thereof. In addition, Weill shall
                                             have the rights regarding
                                             Retirement as described in Section
                                             5(b)(vi) below.

                                       3
<Page>

                                    (iii)    In the event of a termination
                                             pursuant to Sections 5(a)(iii) or
                                             5(a)(iv) above or any termination
                                             by Weill other than pursuant to
                                             Section 5(a)(vi) above, the Company
                                             shall pay to Weill his annual
                                             salary and employee benefits in
                                             effect immediately prior to such
                                             termination through the effective
                                             date of such termination. In
                                             addition, Weill shall have such
                                             rights, if any, to further vesting
                                             and exercise of his stock options
                                             or lapse of the restrictions on any
                                             shares of his restricted stock as
                                             are provided under the Company's
                                             plan(s) under which such options or
                                             stock were granted, as then
                                             applicable.

                                    (iv)     In the event of a termination
                                             pursuant to Sections 5(a)(v) or
                                             5(a)(vi) above, the Company shall,
                                             within 15 days after such
                                             termination, pay to Weill a lump
                                             sum amount in cash equal to the sum
                                             of (x) his annual salary in effect
                                             immediately prior to such
                                             termination through the effective
                                             date of such termination and (y)
                                             the amount paid as his annual bonus
                                             in respect of the Company's fiscal
                                             year prior to the fiscal year in
                                             which the effective date of such
                                             termination occurs, prorated for
                                             the period of his employment during
                                             the fiscal year in which the
                                             effective date of such termination
                                             occurs. In addition, Weill shall
                                             have the rights regarding
                                             Retirement as described in Section
                                             5(b)(vi) below.

                                    (v)      In the event of a termination
                                             pursuant to Section 5(a)(vii) above
                                             or pursuant to a notice of
                                             non-renewal given by the Company as
                                             described in Section 3 above, Weill
                                             shall have the rights regarding
                                             Retirement as described in Section
                                             5(b)(vi) below.

                                    (vi)     If a termination of Weill's
                                             employment is deemed a Retirement
                                             for purposes of this Agreement,
                                             then, commencing upon such
                                             Retirement and subject to Weill's
                                             compliance with the covenants set
                                             forth in Section 7(a) below, (x)
                                             the Company shall provide to Weill
                                             a supplemental pension benefit
                                             equal to a $350,000 lifetime
                                             annuity, with such actuarially
                                             equivalent alternative forms of
                                             benefit, such as joint and survivor
                                             annuities, but excluding lump sum,
                                             as permitted under and as
                                             calculated under the Primerica
                                             Corporation Supplemental Retirement
                                             Plan (as amended from time to
                                             time), (y) any stock options held
                                             by Weill as of the date of such
                                             Retirement shall be treated in
                                             accordance with their terms
                                             (including, without limitation, the
                                             terms specified in Section 4(d)
                                             above) and (z) any shares of
                                             restricted stock held by Weill as
                                             of the date of such Retirement
                                             shall be governed by the Company's
                                             plan(s) under which such stock was
                                             granted, as then applicable.

                                    (vii)    Weill shall not be obligated to
                                             mitigate any payments due from the
                                             Company under this Agreement or any
                                             damages he may suffer as a result
                                             of a breach or termination of this
                                             Agreement by the Company, and there
                                             shall be no set-off to any of the
                                             Company's obligations of payment
                                             under this Agreement for any reason
                                             whatsoever.

                  6.       CONSULTING.

                                       4
<Page>

                           (a)      Consulting. Weill agrees that for a period
                                    of ten years following his Retirement
                                    (unless such period is extended by the
                                    parties hereto, or shortened by Weill's
                                    death, his total and permanent inability to
                                    provide the services set forth in this
                                    Section 6(a) or his breach of any of the
                                    covenants set forth in Section 7(a) below)
                                    (such period, as may be so extended or
                                    shortened, the "CONSULTING TERM"), when and
                                    as requested by the Chief Executive Officer
                                    of the Company and subject to his reasonable
                                    availability, he shall provide consulting
                                    services and advice to the Company and shall
                                    participate in external activities and
                                    events for the benefit of the Company for up
                                    to 45 days per year.

                           (b)      Fees and Expenses. In return for Weill's
                                    willingness to continue to help create value
                                    for the Company's shareholders during his
                                    Retirement, and in return for the foregoing
                                    commitments by Weill, the Company shall pay
                                    Weill, for consulting services performed and
                                    for participation in external activities or
                                    events at the request of the Chief Executive
                                    Officer of the Company, a daily fee, for the
                                    days Weill so renders services, equal to his
                                    daily salary rate at the time of his
                                    Retirement. The Company shall also reimburse
                                    Weill, upon the receipt of appropriate
                                    documentation, for reasonable expenses which
                                    he incurs in providing such services at the
                                    request of the Chief Executive Officer.

                  7.       COVENANTS.

                           (a)      Covenants. Commencing upon Retirement and
                                    for the remainder of his life, Weill agrees
                                    to the following covenants:

                                    (i)      Not to engage in any business in
                                             which the Company or its affiliates
                                             is engaged (including by performing
                                             services for or soliciting to
                                             perform services for, directly or
                                             indirectly, either personally or as
                                             an employee, agent, partner,
                                             service member, stockholder,
                                             investor, officer or director of,
                                             or consultant to, any entity or
                                             person) and not to otherwise engage
                                             in conduct that is in material
                                             competition with the Company or its
                                             affiliates; IT BEING UNDERSTOOD
                                             that for purposes of this Section
                                             7(a)(i), Weill shall not be deemed
                                             to be (x) engaged in the investment
                                             management business or to be in
                                             material competition with the
                                             Company to the extent that he
                                             manages assets, directly or
                                             indirectly, for charitable or civic
                                             causes, for himself and/or for a DE
                                             MINIMIS number of family members
                                             and personal friends; or (y) a
                                             stockholder or investor in a
                                             competing entity if his record and
                                             beneficial ownership amount to not
                                             more than 1% of the outstanding
                                             capital stock of any company
                                             subject to the periodic and other
                                             reporting requirements of the
                                             Securities Exchange Act of 1934, as
                                             amended;

                                    (ii)     Not to, directly or indirectly, (x)
                                             hire or attempt to hire or induce
                                             any employee, agent, insurance
                                             agent, insurance broker,
                                             broker-dealer of the Company or it
                                             affiliates to be employed or
                                             perform services elsewhere (or
                                             solicit to perform services
                                             elsewhere) or (y) solicit the trade
                                             of any current or prospective
                                             customer or supplier of the Company
                                             or its affiliates;

                                       5
<Page>

                                    (iii)    Not to engage in conduct that is
                                             materially injurious to the Company
                                             or its affiliates, monetarily or
                                             otherwise;

                                    (iv)     Not to disclose or misuse any
                                             confidential information pertaining
                                             to the Company or its affiliates,
                                             except as is required to be
                                             disclosed by Weill (x) pursuant to
                                             judicial process, (y) to any
                                             government or agency or department
                                             of any government or (z) pursuant
                                             to applicable law;

                                    (v)      Not to disparage the Company or its
                                             affiliates or any of their
                                             respective officers or directors,
                                             products or services; and

                                    (vi)     To reasonably assist and cooperate
                                             with the Company or its affiliates
                                             in connection with the defense or
                                             prosecution of any claim that may
                                             be made against or by the Company
                                             or its affiliates, or in connection
                                             with any ongoing or future
                                             investigation or dispute or claim
                                             of any kind involving the Company
                                             or its affiliates (including
                                             through the appearance at any
                                             reasonably necessary proceeding or
                                             the execution of any reasonably
                                             necessary document), to the extent
                                             such claims, investigations or
                                             proceedings relate to services
                                             performed or required to be
                                             performed by Weill, pertinent
                                             knowledge possessed by Weill, or
                                             any act or omission by Weill;

                                    PROVIDED, HOWEVER, that a departure from any
                                    of the foregoing covenants where such
                                    departure is inadvertent and isolated and is
                                    promptly cured upon written notice (if such
                                    departure is susceptible to cure) shall not
                                    constitute a breach of such covenant for
                                    purposes of this Agreement.

                           (b)      Effect of a Breach.

                                    (i)      If it is determined that Weill has
                                             breached any covenant set forth in
                                             Section 7(a) above, then, in
                                             addition to any right or remedy
                                             that the Company has available
                                             under any plan or other
                                             compensation arrangement that is
                                             applicable to Weill, Weill shall
                                             (x) forfeit his remaining
                                             supplemental pension benefit as
                                             described in Section 5(b)(vi)
                                             above; (y) forfeit the right to the
                                             further continued exercise of stock
                                             options as described in Section
                                             4(d)(y) above; and (z) forfeit any
                                             further perquisites as described in
                                             Section 7(e) below.

                                    (ii)     In addition, the Company shall have
                                             available, in addition to any other
                                             right or remedy available, the
                                             right to obtain an injunction from
                                             any court of competent jurisdiction
                                             restraining such breach and to
                                             specific performance of such
                                             covenant, except with respect to
                                             any covenant as to which Weill may
                                             and does "opt out" (as provided in
                                             Section 7(c) below). Weill further
                                             agrees that no bond or other
                                             security will be required in
                                             obtaining such equitable relief,
                                             and he hereby consents to the
                                             issuance of such injunction and to
                                             the ordering of specific
                                             performance; PROVIDED, HOWEVER,
                                             that such consent shall neither
                                             limit the right of Weill to contest
                                             the validity or propriety of any
                                             such determination nor create any
                                             presumption that he has, in fact,
                                             breached such covenant.

                                       6
<Page>

                           (c)      "Opt-Out". After the expiration of ten years
                                    following Retirement, Weill may (in writing
                                    or by his actions) effectively "opt out" of
                                    the covenants set forth in Sections 7(a)(i),
                                    7(a)(ii) or 7(a)(iii) above (for the
                                    avoidance of doubt, any such "opting out"
                                    shall not apply to any of the covenants set
                                    forth in Sections 7(a)(iv), 7(a)(v) or
                                    7(a)(vi) above). Any such "opt out" shall be
                                    treated as if it were a breach for purposes
                                    of Section 7(b) above. Determination that
                                    Weill has, by his actions, "opted out" and
                                    therefore breached any of the covenants set
                                    forth in Section 7(a) above may only be made
                                    in accordance with Section 7(d) below.

                           (d)      Determination of a Breach. For purposes of
                                    Sections 7(b)(i) and 7(c) above,
                                    determination that a breach of any of the
                                    covenants set forth in Section 7(a) above
                                    has occurred may only be made (x) by the
                                    Board of Directors of the Company and (y)
                                    after appropriate due process is afforded to
                                    Weill.

                           (e)      Continued Perquisites. In consideration of
                                    and subject to Weill's compliance with his
                                    commitments set forth in Section 6(a) above
                                    and with the covenants set forth in Section
                                    7(a) above, commencing upon Retirement and
                                    for the remainder of his life, Weill shall
                                    have access to and use of each of the
                                    following Company facilities and services
                                    comparable to those provided to him prior to
                                    his Retirement, on the same basis as such
                                    facilities and services were provided to him
                                    prior to his Retirement: Company aircraft,
                                    car and driver, office (in a location
                                    reasonably selected by the Board of
                                    Directors of the Company) and secretary and
                                    security arrangements. The Company's
                                    obligations set forth in this Section 7(e)
                                    shall apply irrespective of Weill's
                                    incapacitation subsequent to his Retirement
                                    to perform services under this Agreement.

                  8.       MISCELLANEOUS.

                           (a)      Amendment; Entire Agreement. Except as may
                                    be explicitly provided for in any other
                                    agreement between the Company and Weill
                                    which specifically references this Agreement
                                    and explicitly expresses an intention to
                                    amend, supplement or clarify this Agreement,
                                    this Agreement constitutes the entire
                                    understanding between the parties to this
                                    Agreement with respect to the subject matter
                                    of this Agreement and supersedes all
                                    previous oral and written negotiations,
                                    commitments, writings and understandings of
                                    the parties hereto with respect to the
                                    matters described in this Agreement.

                           (b)      Governing law. This Agreement shall be
                                    governed by, and construed and enforced in
                                    accordance with, the laws of the state of
                                    Delaware.

                           (c)      Notices. All notices to be delivered
                                    pursuant to the provisions of this Agreement
                                    shall be given by telex or by notice in
                                    writing, hand delivered or sent by
                                    registered or certified mail, to the parties
                                    hereto at the following addresses:

                                                To the Company:

                                       Citigroup Inc.
                                       399 Park Avenue
                                       New York, New York  10043

                                       7
<Page>

                                       Attention: Office of the General Counsel

                                       or to such other address as the Company
                                       shall designate in a written notice to
                                       Weill from time to time; and

                                                To Weill:

                                       Sanford I. Weill
                                       to such address as Weill
                                       shall designate in a
                                       written notice to the
                                       Company from time to time.

                                    All such notices shall be effective upon
                                    delivery to the designated address.

                           (d)      Severability. Each provision of this
                                    Agreement is intended to be severable. If
                                    any term or provision of this Agreement
                                    shall be determined by a court of competent
                                    jurisdiction to be illegal or invalid for
                                    any reason whatsoever then such provision
                                    shall be severed from this Agreement, shall
                                    not affect the validity of the remainder of
                                    this Agreement and shall be replaced by a
                                    provision reflecting, to the extent legally
                                    permissible, the original intent of the
                                    parties hereto.

                                       8
<Page>

         IN WITNESS WHEREOF, the parties hereto have executed this Amended and
Restated Employment Agreement as of the day and year first above written.

Agreed and accepted:                        CITIGROUP INC.

/s/ Sanford I. Weill                        /s/ Charles O. Prince, III
-----------------------------------         -----------------------------------
Sanford I. Weill                            By: Charles O. Prince, III
                                                Title: Corporate Secretary

                                                WITNESS

                                                /s/ Arthur Zankel
                                                --------------------------------
                                                Arthur Zankel

                                       9

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