Document:

Exhibit 10.19

 

MISSION COMMUNITY BANCORP

 

2008 STOCK INCENTIVE PLAN

Adopted February 25, 2008

 

Section 1.                                          Purpose

 

The purpose of the Mission Community Bancorp
2008 Stock Incentive Plan (the “Plan”) is to (i) encourage selected
employees and directors of Mission Community Bancorp (the “Company”) and its
subsidiaries to acquire a proprietary and vested interest in the growth and
performance of the Company; (ii) generate an increased incentive to
contribute to the Company’s future success and prosperity, thus enhancing the
value of the Company for the benefit of shareholders; and (iii) enhance
the ability of the Company and its subsidiaries to attract and retain
individuals of exceptional talent upon whom, in large measure, the sustained
progress, growth and profitability of the Company depend.

 

Section 2.                                          Definitions

 

For purposes of the Plan, the following terms
have the following meanings:

 

(a)                                  “Award” means any award
under the Plan, including any Option, Tandem SAR, Stand-Alone SAR, Restricted
Stock Award, or share of Phantom Stock.

 

(b)                                 “Award Agreement” means,
with respect to each Award, the signed written agreement between the Company
and the Participant setting forth the terms and conditions of the Award.

 

(c)                                  “Code” means the Internal
Revenue Code of 1986, as amended from time to time, and any successor statute.

 

(d)                                 “Fair Market Value” means
the fair market value of the Common Stock as determined by the Board of
Directors in good faith in accordance with any reasonable valuation method,
consistent with all applicable requirements under the Code or other applicable
laws, and regulations promulgated thereunder.

 

(e)                                  “Holder” means the holder of
a Restricted Stock Award granted under Section 7.

 

(f)                                    “Incentive Option” means any
Option intended to be and designated as an “incentive stock option” within the
meaning of Section 422 of the Code.

 

(g)                                 “Issue Date” shall mean the
date established by the Board of Directors on which Certificates representing
shares of Restricted Stock shall be issued by the Company pursuant to the terms
of Section 7(b).

 

(h)                                 “Nonqualified Stock Option”
means any Option that is not an Incentive Option.

 

(i)                                     “Option” means an option
granted under Section 6.

 

 

(j)                                     “Optionee” means the holder
of an Option granted under Section 6.

 

(k)                                  “Participant” means an
employee or director who is selected by the Board of Directors to receive an
Award under the Plan.

 

(l)                                     A share of “Phantom Stock”
shall mean the right, granted pursuant to Section 10, to receive in cash
the Fair Market Value of a share of Stock.

 

(m)                               “Restricted Stock” or “Restricted
Stock Award” means an Award of Stock subject to restrictions, as more fully
described in Section 7.

 

(n)                                 “Restriction Period” means
the period determined by the Board of Directors under Section 7(b).

 

(o)                                 “Stand-Alone SAR” shall mean
a stock appreciation right granted pursuant to Section 9, which is not
related to any Option.

 

(p)                                 “Stock” means the Common
Stock, no par value, of the Company, and any successor security.

 

(q)                                 “Tandem SAR” shall mean a
stock appreciation right granted pursuant to Section 8, which is related
to an Option.

 

(r)                                    “Terminating Event” means: (i) the
acquisition of more than fifty percent (50%) of the value or voting power of
the Company’s stock or that of its wholly owned subsidiary, Mission Community Bank
(the “Bank”) by a person (including an entity) or group; (ii) the
acquisition in a period of twelve (12) months or less of at least thirty-five
percent (35%) of the Bank’s or the Company’s stock by a person or group; (iii) the
replacement of a majority of the Bank’s or the Company’s board of directors in
a period of twelve (12) months or less by directors who were not endorsed by a
majority of the current board members; or (iv) the acquisition in a period
of twelve (12) months or less of forty percent (40%) or more of the Company’s
assets by an unrelated entity.

 

(s)                                  “Termination” means, for
purposes of the Plan, with respect to a Participant, that (a) if the Participant
is a director of the Company, he or she has ceased to be, for any reason, a
director and (b) if the Participant is an employee, he or she has ceased
to be, for any reason, employed by the Company or a subsidiary.

 

(t)                                    “Termination for Cause” in
the case of an employee, shall mean termination for malfeasance or gross misfeasance
in the performance of duties, conviction of illegal activity in connection
therewith, any conduct seriously detrimental to the interests of the Company or
a subsidiary corporation, or removal pursuant to the exercise of regulatory
authority by the Board of Governors of the Federal Reserve System (the “FRB”)
or any applicable bank supervisory agency; and, in any event, the determination
of the Board of Directors with respect thereto shall be final and
conclusive.  In the case of a director,
Termination for Cause shall mean removal pursuant to Sections 302 or 304 of the
California Corporations Code or removal pursuant to the exercise of regulatory
authority by the FRB or any applicable bank supervisory agency.

 

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(u)                                 “Vesting Date” means, for an
Option or a portion of an Option, the first date on which the Option or such
portion may be exercised by the Optionee and, for shares of Restricted Stock,
the date on which the shares cease to be forfeitable and become freely
transferable shares in the hands of the Participant.

 

Section 3.                                          Administration

 

(a)                                  General.  This Plan shall be administered by the Board
of Directors of the Company (the “Board of Directors”).  The Board of Directors may, in its sole discretion,
from time to time, delegate such power and authority over the administration of
the Plan as the Board of Directors deems appropriate to a committee composed of
not fewer than three (3) directors of the Company.  Nothing contained herein shall prevent the
Board of Directors from delegating to such Committee full power and authority
over the administration of the Plan.  As
used herein, the term “Board of Directors” shall refer either to the Board of
Directors itself or to a duly authorized committee thereof, as appropriate.

 

Any action of the Board of Directors with
respect to administration of the Plan shall be taken pursuant to a majority
vote of its members; provided, however, that with respect to action by the
Board of Directors in granting an option or other award to an individual
director, such action must be authorized by the required number of directors
without counting the interested director, who shall abstain as to any vote on
his or her option or award.  An
interested director may be counted in determining the presence of a quorum at a
meeting of the Board of Directors where such action will be taken.

 

(b)                                 Authority.  The Board of Directors shall grant Awards to
eligible participants.  In particular and
without limitation, the Board of Directors, subject to the terms of the Plan,
shall:

 

(i)                                     select the eligible
participants to whom Awards may be granted;

 

(ii)                                  determine whether and to
what extent Awards are to be granted under the Plan;

 

(iii)                               determine the number of
shares to be covered by each Award granted under the Plan; and

 

(iv)                              determine the terms and
conditions of any Award granted under the Plan based upon factors determined by
the Board of Directors.

 

(c)                                  Board of Directors Determinations
Binding.  Subject to
the express provisions of the Plan, the Board of Directors shall have the
authority to construe and interpret the Plan, any Award and any Award Agreement;
to define the terms used therein; to prescribe, amend, and rescind rules and
regulations relating to administration of the Plan, to determine the duration
and purposes of leaves of absence which may be granted to Participants without
constituting a termination of their employment for purposes of the Plan; and to
make all other determinations necessary or advisable for administration of the
Plan.  Any determination made by the
Board of Directors pursuant to the provisions of the Plan with respect to any
Award shall be made in its sole discretion at the time of the grant of the
Award or, unless in contravention of any express term of the Plan or Award, at
any later time.  Determinations of the
Board of the Directors on 

 

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matters referred to in this
section shall be final and conclusive, and shall be binding on all persons,
including the Company and Participants.

 

Section 4.                                          Stock
Subject to Plan

 

(a)                                  Shares Available for Awards.  The total number of shares of the Company’s authorized
but unissued Stock reserved and available for issuance pursuant to Awards under
this Plan shall be 168,086 shares plus a number of additional shares equal to
15% of the shares of common stock that may be issued by the Company between March 31,
2008 and December 31, 2008, other than shares issued in connection with
the exercise of stock options or the conversion or repurchase of outstanding
preferred shares; provided, however, that no more than a total of 168,086
shares may be issued with respect to incentive stock options issued under the
Plan.  If any Option terminates or
expires without being exercised in full, or if any shares of Stock subject to a
Restricted Stock Award are forfeited, or if an Award otherwise terminates
without a payment being made to the Participant in the form of Stock, the
shares issuable under such Option or Award shall again be available for
issuance in connection with Awards.  Any
Award under this Plan shall be governed by the terms of the Plan and any
applicable Award Agreement.

 

(b)                                 Adjustments.  In the event of any merger, reorganization, consolidation,
recapitalization, stock dividend, stock split or other change in corporate
structure affecting the Stock without receipt of consideration by the Company,
such substitution or adjustments shall be made in the aggregate number of
shares of Stock reserved for issuance under the Plan, in the number and
exercise price of shares subject to outstanding Options, and in the number of
shares subject to other outstanding Awards, as may be determined to be
appropriate by the Board of Directors, in its sole discretion; provided,
however, that no fractional shares of Stock shall be issued under the Plan on
account of any such adjustment.

 

Section 5.                                          Eligibility

 

Awards may be granted to all employees,
officers (whether or not they are also directors) and non-employee directors of
the Company and its subsidiaries. 
However, directors of the Company or a subsidiary corporation who are
not also officers or employees of the Company or a subsidiary corporation are
not eligible to receive Incentive Options under the Plan, but only other types
of Awards.

 

Section 6.                                          Stock
Options

 

(a)                                  Types.  Any Option granted under the Plan shall be in
such form as the Board of Directors may from time to time approve.  The Board of Directors shall have the authority
to grant to any eligible Participant Incentive Options, Nonqualified Stock
Options or both types of Options.

 

(b)                                 Incentive Options.  Incentive Options may be granted only to
employees of the Company or a Subsidiary. 
Any portion of an Option that is not designated as, or does not qualify
as, an Incentive Option shall constitute a Nonqualified Stock Option.

 

(c)                                  Terms and Conditions.  Options granted under the Plan shall be subject
to the following terms and conditions:

 

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(i)                                     Option
Term.  Each Option and all rights or
obligations thereunder shall expire on such date as the Board of Directors may
determine, but not later than ten (10) years from the date such Option is
granted, and shall be subject to earlier termination as provided elsewhere in
the Plan.  As to any Incentive Option
granted to an Optionee who, immediately before the option is granted, owns
beneficially more than ten percent (10%) of the outstanding stock of the
Company (whether acquired upon exercise of Options or otherwise), such option
must not be exercisable by its terms after five (5) years from the date of
its grant.

 

(ii)                                  Grant Date.  The time an Option is granted, sometimes
referred to as the date of grant, shall be the day of the action of the Board
of Directors described in Section 3(a) hereof, provided that
Optionees do not have the ability to further negotiate the terms of their
grants, and provided further that the material terms of the grants are communicated
to Optionees within a relatively short period of time following the Board’s
action.  In addition, if required by
applicable accounting rules, the date of grant will not be deemed to occur
unless any shareholder approvals required for the grant of an option under the
Plan or applicable amendments thereto have been obtained.  In addition, if appropriate resolutions of
the Board of Directors indicate that an Option is to be granted as of and on
some future date, the time such Option is granted shall be such future
date.  If action by the Board of
Directors is taken by the unanimous written consent of its members, the action
of the Board of Directors shall be deemed to be at the time the last Board
member signs the consent, subject to the same requirements concerning
communication with Optionees set forth in the first sentence of this Section 6(a)(ii).

 

(iii)                               Exercise Price.  The exercise price per share of stock subject
to each Option shall be determined by the Board of Directors but shall not be
less than one hundred percent (100%) of the Fair Market Value of such stock at
the time such Option is granted.  As to
any Incentive Option granted to an Optionee who, immediately before the Option
is granted, owns beneficially more than ten percent (10%) of the outstanding
stock of the Company, the purchase price must be at least one hundred ten
percent (110%) of the Fair Market Value of the stock at the time when such
Option is granted.  The purchase price of
any shares purchased shall be paid in full in cash at the time of each such
purchase.

 

(iv)                              Exercisability.  Each Option shall be exercisable in such
installments, which need not be equal, and upon such conditions as the Board of
Directors shall determine; provided, however, that if an Optionee shall not in
any given installment period purchase all of the shares which such Optionee is
entitled to purchase in such installment period, such Optionee’s right to
purchase any shares not purchased in such installment period shall continue
until the expiration of such Option.  No
Option or installment thereof shall be exercisable except with respect to whole
shares, and fractional share interests shall be disregarded except that they
may be accumulated in accordance with the next preceding sentence.

 

(v)                                 Limit on Exercisability.  The aggregate fair market value (determined
as of the time the Option is granted) of the stock for which any officer or
employee may be granted Incentive Options which are first
exercisable during any one calendar year (under all Incentive Stock
Option Plans of the Company and its subsidiaries) shall not exceed One Hundred Thousand
Dollars ($100,000).

 

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(vi)                              Method of Exercise; Payment.  Options may be exercised by ten (10) days
written notice delivered to the Company stating the number of shares with
respect to which the Option is being exercised, together with cash in the
amount of the purchase price for such shares. 
No fewer than ten (10) shares may be purchased at one time unless
the number purchased is the total number which may be purchased under the
Option.

 

Options may also be exercised by delivering
to the Company (i) an exercise notice instructing the Company to deliver
the certificates for the shares purchased to a designated brokerage firm which
shall sell the stock in the market as soon as the Option is exercised; and (ii) a
copy of irrevocable instructions delivered to the brokerage firm to sell the
shares acquired upon exercise of the Option and to deliver to the Company from
the sale proceeds sufficient cash to pay the exercise price and applicable
withholding taxes arising as a result of the exercise, with the balance of the
sales proceeds, if any, after payment of any broker’s commission, to be
credited to the Optionee’s brokerage account.

 

(vii)                           Compliance With Applicable Laws.  No shares of Common Stock shall be issued
upon exercise of any Option, and an Optionee shall have no right or claim to
such shares, unless and until: (i) payment in full as provided hereinabove
has been received by the Company; (ii) in the opinion of the counsel for
the Company, all applicable requirements of law and of regulatory bodies having
jurisdiction over such issuance and delivery have been fully complied with; and
(iii) if required by federal or state law or regulation, the Optionee
shall have paid to the Company the amount, if any, required to be withheld on
the amount deemed to be compensation to the Optionee as a result of the
exercise of his or her Stock Option, or made other arrangements satisfactory to
the Company, in its sole discretion, to satisfy applicable income tax withholding
requirements.

 

(viii)                        Cessation of Employment;
Disability.  Except as
provided in Subsections 6(c)(i) above, if an Optionee ceases to be
employed by or to serve as a director of the Company or a subsidiary
corporation for any reason other than death, disability, or cause such Optionee’s
Option shall expire thirty (30) days thereafter, and during such period after
such Optionee ceases to be an employee or director, such Option shall be
exercisable only as to those shares with respect to which installments, if any,
had accrued as of the date on which the Optionee ceased to be employed by or
ceased to serve as a director of the Company or such subsidiary
corporation.  Except as provided in
Subsections 6(c)(i) above or 6(c)(ix) below, if an Optionee ceases to
be employed by or ceases to serve as a director of the Company or a subsidiary
corporation by reason of disability (within the meaning of Section 22(e)(3) of
the Code), such Optionee’s Option shall expire not later than one (1) year
thereafter, and during such period after such Optionee ceases to be an employee
or director such Option shall be exercisable only as to those shares with
respect to which installments, if any, had accrued as of the date on which the
Optionee ceased to be employed by or ceased to serve as a director of the
Company or such subsidiary corporation.

 

(ix)                                Termination of Employment for
Cause.  If an Optionee’s employment by
or service as a director of the Company or a subsidiary corporation is
terminated for Cause, such Optionee’s Option shall expire immediately;
provided, however, that the Board of Directors may, in its sole discretion,
within thirty (30) days of such termination, waive the expiration of the Option
by giving written notice of such waiver to the Optionee at such Optionee’s last
known 

 

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address.  In the event of such waiver, the Optionee may
exercise the Option only to such extent, for such time, and upon such terms and
conditions as if such Optionee had ceased to be employed by or ceased to serve
as a director of the Company or such subsidiary corporation upon the date of
such termination for a reason other than Cause, disability, or death.

 

(x)                                   Death of Optionee.  Except as provided in Subsection 6(c)(i) above,
if any Optionee dies while employed by or serving as a director of the Company
or a subsidiary corporation or during the 30-day or one-year period referred to
in Subsection 6(c)(viii) above, such Optionee’s Option shall expire one (1) year
after the date of such death.  After such
death but before such expiration, the persons to whom the Optionee’s rights
under the Option shall have passed by Will or by the applicable laws of descent
and distribution shall have the right to exercise such Option to the extent
that installments, if any, had accrued as of the date of such Optionee’s death.

 

Section 7.                                          Restricted
Stock Awards

 

(a)                                  General.  Restricted Stock Awards may be issued
hereunder to Participants, for no cash consideration or for such amount as the
Board of Directors in its discretion shall determine, either alone or in
addition to other Awards granted under the Plan. The provisions of Restricted
Stock Awards need not be the same with respect to each recipient.  The Board of Directors may provide upon grant
of a Restricted Stock Award that any shares of Restricted Stock that may be
purchased by the Holder in cash and are subsequently forfeited by the Holder
prior to the Vesting Date therefor shall be reacquired by the Company at the
purchase price originally paid therefor by the Holder, if applicable.

 

(b)                                 Issue Date and Vesting Date.  At the time of the grant of a Restricted
Stock Award, the Board of Directors shall establish an Issue Date or Issue
Dates and a Vesting Date or Vesting Dates with respect to such shares.  The Board of Directors may provide upon grant
of a Restricted Stock Award that different numbers or portions of the shares subject
to the Award shall have different Vesting Dates.  The Board of Directors also may provide that
the Vesting Dates will be accelerated upon the subsequent occurrence of such event
(e.g., early retirement of the Holder) as the Board of Directors may specify.  The Board of Directors also may establish
upon grant of a Restricted Stock Award that some or all of the shares subject
thereto shall be subject after the Vesting Date to additional restrictions upon
transfer or sale, although not to forfeiture.

 

(c)                                  Issuance of Certificates.  Reasonably promptly after the Issue Date with
respect to shares of Restricted Stock, the Company shall cause to be issued a
stock certificate, registered in the name of the Participant to whom such
shares were granted, evidencing such shares; provided, that the Company shall
not cause such a stock certificate to be issued unless it has received a stock
power duly endorsed in blank with respect to such shares.  Each such stock certificate shall bear the
following legend:

 

“The transferability of this certificate and
the shares of stock represented hereby are subject to the restrictions, terms
and conditions (including forfeiture provisions and restrictions against
transfer) contained in the Mission Community Bancorp 2008 Stock Incentive Plan
and related Award Agreement, and such rules, regulations and interpretations as
Mission Community 

 

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Bancorp’s Board of Directors
may adopt.  Copies of the Plan, Award
Agreement and rules, regulations and interpretations, if any, are on file at
the principal executive office of Mission Community Bancorp, 581 Higuera Street,
San Luis Obispo, California 93401.”

 

Such legend shall not be removed until such
shares vest pursuant to the terms hereof.

 

Each certificate issued pursuant to this Section 7(c) together
with the stock powers relating to the shares of Restricted Stock evidenced by
such certificate, shall be held by the Company unless the Board of Directors
determines otherwise.

 

(d)                                 Consequences of Vesting.  Upon the vesting of a share of Restricted
Stock pursuant to the terms of the Plan and the applicable Award Agreement, the
restrictions on transfer described in Section 7(c) shall cease to
apply to such share.  Reasonably promptly
after a share of Restricted Stock vests, the Company shall cause to be
delivered to the Participant to whom such shares were granted, a certificate
evidencing such shares, free of the legend set forth in Section 7(c).  Notwithstanding the foregoing, such share
still may be subject to restrictions on transfer as a result of applicable
securities laws.

 

(e)                                  Dividends.  If and to the extent the Board of Directors so
specifies upon grant, the Holder of shares of Restricted Stock shall be
entitled to receive from the Company, after the grant date and until the
Vesting Date, dividends or other distributions with respect to the shares
identical or comparable in financial value to the dividends and other
distributions that would have been received by the Holder had the shares not
been subject to the restrictions on Restricted Stock imposed under the Plan,
and the Holder shall not be required to return any such distributions to the
Company in the event of forfeiture of the Restricted Stock; provided that any
such dividends or distribution payable to the Holder that constitute Stock or
other equity securities of the Company shall be issued in the same manner and
subject to the same restrictions and conditions as apply to the shares of
Restricted Stock as to which such dividends and distributions are paid.  The Board of Directors in its discretion may
require that any dividends paid on shares of Restricted Stock shall be held in
escrow until all restrictions on such shares have lapsed.

 

(f)                                    Voting
Rights.  If and to the extent the Board of
Directors so specifies upon grant, the Holder of shares of Restricted Stock
shall be entitled to vote or direct the voting of such shares after the grant
date and until the Vesting Date.

 

(g)                                 Termination.  Except to the extent otherwise provided in
the Award Agreement and pursuant to this section, in the event of a Termination
of employment or directorship during the Restriction Period, all shares still
subject to restriction shall be forfeited by the Participant.  If the recipient has paid cash for the Award,
the stock will be repurchased at the same price originally paid by the
Participant.  In the event that the Company
requires such a return of shares, it also shall have the right to require the
return of all dividends paid on such shares, whether by termination of any
escrow arrangement under which such dividends are held or otherwise, unless
otherwise specified in the applicable Award Agreement.

 

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Section 8.                                          Tandem SARs

 

The Board of Directors may grant in
connection with any Option granted hereunder one or more Tandem SARs relating
to a number of shares of Stock less than or equal to the number of shares of
Stock subject to the related Option.  A
Tandem SAR may be granted at the same time as, or, in the case of a
Non-Qualified Stock Option, subsequent to the time that its related Option is
granted.

 

(a)                                  Benefit Upon Exercise.  The exercise of a Tandem SAR with respect to
any number of shares of Stock shall entitle the Participant to a payment, for
each such share, equal to the excess of (i) the Fair Market Value of a
share of Stock on the exercise date over (ii) the option exercise price of
the related Option. Such payment shall be made as soon as practicable after the
effective date of such exercise.  The
Board of Directors shall specify at the time of grant that the value of the SAR
shall be paid in cash, in Stock reserved under the Plan, or a combination of
both, or that the Participant can choose the method of payment at the time of
exercise.

 

(b)                                 Term
and Exercise of Tandem SARs.

 

(i)                                     A Tandem SAR
shall be exercisable only if and to the extent that its related Option is
exercisable.

 

(ii)                                  The exercise of a Tandem SAR
with respect to a number of shares of Stock shall cause the immediate and
automatic cancellation of its related Option with respect to an equal number of
shares. The exercise of an Option, or the cancellation, termination or
expiration of an Option (other than pursuant to this Section 8(b)(ii)),
with respect to a number of shares of Stock shall cause the automatic and
immediate cancellation of any related Tandem SARs to the extent that the number
of shares of Stock remaining subject to such Option is less than the number of
shares subject to such Tandem SARs.

 

Tandem SARs shall be cancelled in the order
in which they became exercisable.

 

(iii)                               A Tandem SAR may be
exercised for all or any portion of the shares as to which it is exercisable;
provided, that no partial exercise of a Tandem SAR shall be for an aggregate
exercise price of the related Option of less than $1,000.  The partial exercise of a Tandem SAR shall not
cause the expiration, termination or cancellation of the remaining portion
thereof.

 

(iv)                              No Tandem SAR shall be
assignable or transferable otherwise than together with its related Option.

 

(v)                                 A Tandem SAR shall be
exercised by delivering notice to the Company’s principal office, to the attention
of its Secretary (or the Secretary’s designee), no less than two (2) business
days in advance of the effective date of the proposed exercise. Such notice
shall be accompanied by the applicable Award Agreement, shall specify the
number of shares of Stock with respect to which the Tandem SAR is being
exercised and the effective date of the proposed exercise and shall be signed
by the Participant or other person then having the right to exercise the Option
to which the Tandem SAR is related. Such notice may be withdrawn at any time
prior 

 

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to the close of business on
the business day immediately preceding the effective date of the proposed exercise.

 

(c)                                  Effect of Termination of
Employment.  The provisions
set forth in Section 6(vi) through (viii) with respect to the
exercise of Options following cessation or termination of employment or service
as a director shall apply as well to the exercise of Tandem SARs.

 

Section 9.                                          Stand-Alone SARs

 

(a)                                  Exercise Price.  The exercise price per share of a Stand-Alone
SAR shall be determined by the Board of Directors at the time of grant, but
shall in no event be less than the Fair Market Value of a share of Stock on the
date of grant.

 

(b)                                 Benefit Upon Exercise.  The exercise of a Stand-Alone SAR with
respect to any number of shares of Stock shall entitle the Participant to a
payment, for each such share, equal to the excess of (i) the Fair Market
Value of a share of Stock on the exercise date over (ii) the exercise
price of the Stand-Alone SAR. Such payments shall be made as soon as
practicable.  The Board of Directors
shall specify at the time of grant that the value of the SAR shall be paid in
cash, in Stock reserved under the Plan, or a combination of both, or that the
Participant can choose the method of payment at the time of exercise.

 

(c)                                  Term and Exercise of Stand-Alone SARs.

 

(i)                                     A Stand-Alone SAR shall
become cumulatively exercisable as provided in the applicable Award Agreement.  The Board of Directors shall determine the
vesting schedule and expiration date of each Stand-Alone SAR.

 

(ii)                                  A Stand-Alone SAR may be
exercised for all or any portion of the shares as to which it is exercisable;
provided, that no partial exercise of a Stand-Alone SAR shall be for an
aggregate exercise price of less than $1,000.  The partial exercise of a Stand-Alone SAR
shall not cause the expiration, termination or cancellation of the remaining
portion thereof.

 

(iii)                               A Stand-Alone SAR shall be
exercised by delivering notice to the Company’s principal office, to the
attention of its Secretary (or the Secretary’s designee), no less than two (2) business
days in advance of the effective date of the proposed exercise.  Such notice shall be accompanied by the
applicable Plan Agreement, shall specify the number of shares of Stock with
respect to which the Stand-Alone SAR is being exercised, and the effective date
of the proposed exercise, and shall be signed by the Participant.  The Participant may withdraw such notice at
any time prior to the close of business on the business day immediately
preceding the effective date of the proposed exercise.

 

(d)                                 Effect of Termination of
Employment.  The
provisions set forth in Section 6(vi) through (viii) with
respect to the exercise of Options following cessation or termination of
employment or service as a director shall apply as well to the exercise of Stand-Alone
SARs.

 

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Section 10.  Phantom Stock

 

(a)                                  Vesting Date.  At the time of the grant of shares of Phantom
Stock, the Board of Directors shall establish a Vesting Date or Vesting Dates
with respect to such shares.  The Board of
Directors may divide such shares into classes and assign a different Vesting
Date for each class. Provided that all conditions to the vesting of a share of
Phantom Stock imposed pursuant to Section 10(c) are satisfied, and
except as provided in Section 10(d), upon the occurrence of the Vesting
Date with respect to a share of Phantom Stock, such share shall vest.

 

(b)                                 Benefit Upon Vesting.  Upon the vesting of a share of Phantom Stock,
the Participant shall be entitled to receive in cash, within 30 days of the
date on which such share vests, an amount equal to the sum of (i) the Fair
Market Value of a share of Stock on the date on which such share of Phantom
Stock vests and (ii) the aggregate amount of cash dividends paid with
respect to a share of Stock during the period commencing on the date on which
the share of Phantom Stock was granted and terminating on the date on which
such share vests.

 

(c)                                  Conditions to Vesting.  At the time of the grant of shares of Phantom
Stock, the Board of Directors may impose such restrictions or conditions to the
vesting of such shares as it, in its absolute discretion, deems appropriate. By
way of example and not by way of limitation, the Board of Directors may
require, as a condition to the vesting of any class or classes of shares of
Phantom Stock, that the Participant or the Company achieves such performance
goals as the Board of Directors may specify.

 

(d)                                 Effect of Termination of
Employment.  Unless the
applicable Award Agreement or the Board of Directors provides otherwise, shares
of Phantom Stock that have not vested, together with any dividends credited on
such shares, shall be forfeited upon the Participant’s termination of
employment for any reason.

 

(e)                                  Compliance with Section 409A.  In the event the Board of Directors shall
grant any shares of Phantom Stock, the Company shall takes such steps as may be
necessary to insure that such award complies with the provisions of Section 409A
of the Code.

 

Section 11.                                   Terminating
Events

 

(a)                                  Impact of Event.  In the event of a “Terminating Event” as
defined in Section 2(r), any surviving corporation or entity or acquiring
corporation or entity, or affiliate of such corporation or entity, may assume
any Options, Restricted Stock Awards or any other Awards outstanding under the
Plan or may substitute similar awards for those outstanding under the
Plan.  In the event any surviving
corporation or entity or acquiring corporation or entity in a Terminating Event
does not assume such Options or Awards or does not substitute similar Options
or other Awards for those outstanding under the Plan, then (i) the vesting
of such Options or other Awards outstanding under the Plan shall be accelerated
and made fully exercisable and all restrictions thereon shall lapse ten (10) days
prior to the closing of the Terminating Event; and (ii) upon the closing
of the Terminating Event, any Options outstanding under the Plan shall be
terminated if not exercised prior to the closing, unless the Board of Directors
in its sole discretion determines prior to the effective date of the
Terminating Event that all outstanding Options and the Plan itself should
continue in full force and effect.  In
the 

 

11

 

case of such a determination
by the Board of Directors, or in the event that any pending Terminating Event
does not occur, the Plan and all outstanding Options and other Awards thereunder
shall continue in force with all original vesting schedules in effect.

 

(b)                                 Notice to Participants of Terminating
Event.  Not less than thirty (30) days
prior to a Terminating Event, the Board of Directors shall notify each Participant
of the pendancy of the Terminating Event. 
With respect to Holders of Restricted Stock or Participants with
Stand-Alone SARs or Phantom Stock, the notice shall simply inform such Participants
of the pendancy of the Terminating Event and of the fact that the restrictions
on their Restricted Stock will lapse, or that they will become entitled to
their payments pursuant to their Stand-Alone SARs or Phantom Stock, on the
closing of the Terminating Event.  In the
case of Optionees, the notice shall inform such Optionees that their Options
shall, notwithstanding the provisions of Sections 6(c)(iv) hereof, become exercisable
in full and not only as to those shares with respect to which installments, if
any, have then accrued, subject, however, to earlier expiration or termination
as provided elsewhere in the Plan, and further subject to the condition that
the Terminating Event in fact occurs. 
Optionees shall then be entitled to exercise any Options or portions
thereof commencing on the tenth (10th) day, and ending on the third (3rd) day,
prior to the Terminating Event, or at such other times as may be specified by
the Board of Directors in connection with the Terminating Event.  In the case of Participants with Tandem SARs,
the notice shall inform such Participant of the need to choose between the
exercise of the SAR or the underlying Option and of the fact that any remaining
unexercised portion of the Option or the Tandem SAR shall lapse if not
exercised within the required time period.

 

Section 12.                                   Acceleration of
Options or other Awards.

 

Notwithstanding the provisions of Sections
6(c)(iv), 7(b), 8(b)(i), 9(c)(i) or 10(a)  hereof or any provision to
the contrary contained in any Award Agreement, the Board of Directors, in its
sole discretion, may accelerate the vesting of all or any Award then
outstanding.  The decision by the Board
of Directors to accelerate an Award or to decline to accelerate an Award shall
be final.  In the event of the acceleration
of Options or SARs as the result of a decision by the Board of Directors
pursuant to this Section 12, each outstanding Option or SAR so accelerated
shall be exercisable for a period from and after the date of such acceleration
and upon such other terms and conditions as the Board of Directors may
determine in its sole discretion, provided that such terms and conditions
(other than terms and conditions relating solely to the acceleration of
exercisability and the related termination of an Option or SAR) may not
adversely affect the rights of any Participant without the consent of the
Participant so adversely affected.  Any
outstanding Option or SAR which has not been exercised by the holder at the end
of such period shall terminate automatically at that time.

 

Section 13.                                   General
Provisions

 

(a)                                  Award Grants.  Any Award may be granted either alone or in
addition to other Awards granted under the Plan.  Subject to the terms and restrictions set
forth elsewhere in the Plan, the Board of Directors shall determine the consideration,
if any, payable by the Participant for any Award and, in addition to those set
forth in the Plan, any other terms and conditions of the Awards.  The Board of Directors may condition the grant
or payment of any Award upon the attainment of specified performance goals or
such other factors or criteria, including vesting 

 

12

 

based on continued service
on the Board or employment, as the Board of Directors shall determine.  Performance objectives may vary from Participant
to Participant and among groups of Participants and shall be based upon such Company,
subsidiary, group or division factors or criteria as the Board of Directors may
deem appropriate, including, but not limited to, earnings per share or return
on equity.  The other provisions of
Awards also need not be the same with respect to each recipient.  Unless specified otherwise in the Plan or by
the Board of Directors, the date of grant of an Award shall be the date of
action by the Board of Directors to grant the Award.

 

(b)                                 Award Agreement.  As soon as practicable after the date of an
Award grant, the Company and the Participant shall enter into a written Award Agreement
identifying the date of grant, and specifying the terms and conditions of the
Award.  Options and SARs are not
exercisable until after execution of the Award Agreement by the Company and the
Participant, but a delay in execution of the Award Agreement shall not affect
the validity of the Option or SAR grant.

 

(c)                                  Certificates; Transfer
Restrictions.  All
certificates for shares of Stock or other securities delivered under the Plan
shall be subject to such stock transfer orders, legends and other restrictions
as the Board of Directors may deem advisable under the rules, regulations and
other requirements of the SEC, any market in which the Stock is then traded and
any applicable federal, state or foreign securities law.

 

(d)                                 Tax Withholding.  Whenever shares of Stock are issued or to be
issued pursuant to Awards, the Company shall have the right to require the
Participant to remit to the Company an amount sufficient to satisfy federal,
state, local or other withholding tax requirements if, when, and to the extent
required by law (whether so required to secure for the Company an otherwise
available tax deduction or otherwise) prior to the delivery of any certificate
or certificates for such shares.  The
obligations of the Company under the Plan shall be conditional on satisfaction
of all such withholding obligations and the Company shall, to the extent permitted
by law, have the right to deduct any such taxes from any payment of any kind
otherwise due to the Participant.  With
the approval of the Board, which it shall have sole discretion to grant, the
Participant may elect to satisfy an applicable withholding requirement, in
whole or in part, by having the Company withhold from delivery shares of Stock
having a value equal to the amount of tax to be withheld. Such shares shall be
valued at their fair market value on the date as of which the amount of tax to
be withheld is determined.  Fractional share
amounts shall be settled in cash.

 

(e)                                  Notification of Election Under Section 83(b) of
the Code.  If any
Participant shall, in connection with the acquisition of shares of Restricted
Stock under the Plan, make the election permitted under Section 83(b) of
the Code (i.e., an election to include in gross income in the year of transfer
the amounts specified in Section 83(b)), such Participant shall notify the
Company of such election within ten days of filing notice of the election with
the Internal Revenue Service, in addition to any filing and notification
required pursuant to regulations issued under the authority of Section 83(b).

 

(f)                                    Transferability.  No Award shall be assignable or otherwise transferable
by the Participant other than by will or by the laws of descent and distribution.  During the life of a 

 

13

 

Participant, an Award shall
be exercisable, and any elections with respect to an Award may be made, only by
the Participant or the Participant’s guardian or legal representative.

 

(g)                                 Adjustment of Awards; Waivers.  The Board of Directors may adjust the performance
goals and measurements applicable to Awards (i) to take into account changes
in law and accounting and tax rules, (ii) to make such adjustments as the Board
of Directors deems necessary or appropriate to reflect the inclusion or exclusion
of the impact of extraordinary or unusual items, events or circumstances in
order to avoid windfalls or hardships, and (iii) to make such adjustments
as the Board of Directors deems necessary or appropriate to reflect any
material changes in business conditions. 
In the event of hardship or other special circumstances of a Participant
and otherwise in its discretion, the Board of Directors may waive in whole or
in part any or all restrictions, conditions, vesting, or forfeiture with respect
to any Award granted to such Participant.

 

(h)                                 Non-Competition.  The Board of Directors may condition its
discretionary waiver of a forfeiture, the acceleration of vesting at the time
of Termination of a Participant holding any unexercised or unearned Award, the
waiver of restrictions on any Award, or the extension of the expiration period
to a period not longer than that provided by the Plan upon such Participant’s agreement
(and compliance with such agreement) (i) not to engage in any business or
activity competitive with any business or activity conducted by the Company and
(ii) to be available for consultations at the request of the Company’s
management, all on such terms and conditions (including conditions in addition
to (i) and (ii)) as the Board of Directors may determine.

 

(i)                                     Regulatory
Compliance.  Each Award
under the Plan shall be subject to the condition that, if at any time the Board
shall determine that (i) the listing, registration or qualification of the
shares of Stock upon any securities exchange or for trading in any securities
market or under any state or federal law, (ii) the consent or approval of
any government or regulatory body, or (iii) an agreement by the
Participant with respect thereto, is necessary or desirable, then such Award
shall not be consummated in whole or in part unless such listing, registration,
qualification, consent, approval or agreement shall have been effected or
obtained free of any conditions not acceptable to the Board.

 

(j)                                     Rights
as Shareholder.  Unless the
Plan or the Board of Directors expressly specifies otherwise, an Optionee shall
have no rights as a shareholder with respect to any shares covered by an Option
until the stock certificates representing the shares are actually delivered to
the Optionee.  Except as specified in Section 4(b),
no adjustment shall be made for dividends or other rights for which the record
date is prior to the date the certificates are delivered.  The rights of Holders shall be as specified
in their Award Agreements, as determined by the Board of Directors in
accordance with Section 7 hereof.

 

(k)                                  Beneficiary Designation.  The Board of Directors, in its discretion,
may establish procedures for a Participant to designate a beneficiary to whom
any amounts payable in the event of the Participant’s death are to be paid.

 

14

 

(l)                                     Additional
Plans.  Nothing contained in the Plan
shall prevent the Company or a subsidiary from adopting other or additional compensation
arrangements for its directors and employees.

 

(m)                               No Employment Rights; No Right to
Directorship.  Neither the
adoption of this Plan nor the grant of any Award hereunder shall (i) confer
upon any employee any right to continued employment nor shall it interfere in
any way with the right of the Company or a subsidiary to terminate the employment
of any employee at any time; or (ii) confer upon any Participant any right
with respect to continuation of the Participant’s membership on the Board or
interfere in any way with provisions in the Company’s Articles of Incorporation
and Bylaws relating to the election, appointment, terms of office, and removal
of members of the Board.

 

(n)                                 Governing Law.  The Plan and all Awards shall be governed by
and construed in accordance with the laws of the State of California.

 

(o)                                 Use of Proceeds.  All cash proceeds to the Company under the
Plan shall constitute general funds of the Company.

 

(p)                                 Assumption by Successor.  The obligations of the Company under the Plan
and under any outstanding Award may be assumed by any successor corporation,
which for purposes of the Plan shall be included within the meaning of “Company.”

 

Section 14.                                   Amendments
and Termination

 

The Board may amend, alter or discontinue the
Plan or any Award, but no amendment, alteration or discontinuance shall be made
which would impair the rights of a Participant under an outstanding Award
without the Participant’s consent.  No
amendment, alteration or discontinuance shall require shareholder approval unless
it would:

 

(a)                                  increase in the total number
of shares reserved for issuance pursuant to Awards under the Plan;

 

(b)                                 change the minimum option
price for Options;

 

(c)                                  increase the maximum term of
Awards provided for herein;

 

(d)                                 expand the types of awards
which may be issued under the Plan; or

 

(e)                                  expand the class of eligible
Participants.

 

Any amendment or modification requiring
shareholder approval shall be deemed adopted as of the date of the action of
the Board of Directors effecting such amendment or modification and shall be
effective immediately, unless otherwise provided therein, subject to approval
thereof within twelve (12) months before or after the effective date by
shareholders of the Company holding not less than a majority of the voting
power of the Company.

 

15

 

Section 15.                                   Effective
Date of Plan

 

The effective date of the Plan is February 25,
2008.

 

Section 16.                                   Term of
Plan

 

No Award shall be granted on or after February 25,
2018, but Awards granted prior to February 25, 2018 may extend beyond that
date.

 

16EXHIBIT 10.1

 

EMPLOYMENT AGREEMENT

 

THIS
AGREEMENT, effective as of May 15, 2008 (the “Effective Date”), is made by
and between Monster Worldwide, Inc., a Delaware corporation (the “Company”),
and James M. Langrock (the “Executive”).

 

RECITALS:

 

A.            The
Company desires to employ the Executive as its Senior Vice President – Chief
Accounting Officer; and

 

B.            The
Executive desires to commit himself to serve the Company on the terms herein
provided.

 

NOW,
THEREFORE, in consideration of the foregoing and of the respective covenants
and agreements set forth below, the parties hereto agree as follows:

 

1.             Certain Definitions.

 

(a)           “Affiliate”
shall mean, with respect to any Person, any other Person directly or
indirectly, through one or more intermediaries, controlling, controlled by, or
under common control with, such Person. 
For purposes of this Section 1(a), “control” shall have the meaning
given such term under Rule 405 of the Securities Act of 1933, as amended.

 

(b)           “Annual
Base Salary” shall have the meaning set forth in Section 5(a).

 

(c)           “Board”
shall mean the Board of Directors of the Company.

 

(d)           “Bonus”
shall have the meaning set forth in Section 5(b).

 

(e)           The
Company shall have “Cause” to terminate the Executive’s employment upon:

 

(i)            the
Executive’s willful misconduct or gross negligence in the performance of his
duties hereunder, or his willful failure to attempt in good faith to carry out,
or comply with, in any material respect any lawful and reasonable written
directive of the Board or the Chief Executive Officer or Chief Financial
Officer or the Executive’s willful material violation of the Company’s
statement of corporate policy and code of conduct at any time after such
statement and code have been adopted by the Board and have been set forth in writing
and delivered to the Executive;

 

(ii)           the
Executive’s unlawful use (including being under the influence) of illegal drugs
on the Company’s premises or while performing the Executive’s duties and
responsibilities;

 

 

(iii)          the Executive’s failure or refusal to
reasonably cooperate with any governmental/regulatory authority having
jurisdiction over the Executive and the Company;

 

(iv)          the
Executive’s material breach of this Agreement;

 

(v)           the
Executive’s intentional commission at any time in the performance of his duties
hereunder of any act of fraud, embezzlement, misappropriation of Company
property, moral turpitude or breach of fiduciary duty against the Company that
has a material adverse effect on the Company; or

 

(vi)          the
Executive’s commission of a felony, other than as a result of vicarious
liability or as a result of a traffic violation.

 

Notwithstanding
the foregoing, termination of the Executive’s employment hereunder by the
Company for Cause shall not be effective as a termination for Cause unless the
provisions of this paragraph shall first have been satisfied.  The
Executive shall be given written notice by the Company, with such notice
stating in reasonable detail the particular circumstances that constitute the
grounds on which the proposed termination for Cause is based.  The
Executive shall have twenty (20) days after receipt of such notice to fully
cure such alleged violation.  If he fails to cure such alleged violation
within such twenty (20)-day period, the Executive’s employment shall thereupon
be terminated for Cause.  For purposes
hereof, no act or omission shall be deemed to be “willful” if such act or
omission was taken (or omitted) in the good faith belief that such is in the
best interests of, or not opposed to the best interests of, the Company or if
such act or omission resulted from the Executive’s physical or mental
incapacity.

 

(f)            “Change
in Control” means at such time as any of:

 

(i)            the
direct or indirect sale, transfer, conveyance or other disposition, in one or a
series of related transactions, of all or substantially all of the properties
or assets of the Company and its subsidiaries, taken as a whole, to any “person”
(within the meaning of Section 13(d) of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”));

 

(ii)           the
stockholders of the Company approve a plan of complete liquidation of the
Company;

 

(iii)          any “person” or “group” (within the meaning
of Sections 13(d) and 14(d)(2) of the Exchange Act), other than any
Permitted Investor, is or becomes the “beneficial owner” (as defined in Rule 13d-3
under the Exchange Act), directly or indirectly, of more than 25% of the total
voting power of the Voting Interests of the Company on a fully diluted basis;

 

(iv)          the
stockholders of the Company approve a merger or consolidation of the Company
with any other entity, other than a merger or consolidation which would result
in the voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity) more than 50% of the total
voting power represented by the 

 

2

 

voting securities of the Company or such surviving
entity outstanding immediately after such merger or consolidation; or

 

(v)           the
first day as of which a majority of the members of the Board of Directors of
the Company are not Continuing Directors.

 

(g)           “Code”
shall mean the Internal Revenue Code of 1986, as amended.

 

(h)           “Committee”
shall mean the Compensation/Stock Option Committee of the Board.

 

(i)            “Common
Stock” shall mean the $.01 par value common stock of the Company.

 

(j)            “Company”
shall, except as otherwise provided in Section 9, have the meaning set
forth in the preamble hereto.

 

(k)           “Competitive
Business” shall mean at any time during the Term and during the 12-month period
immediately following the Date of Termination, any entity (which term “entity”
shall for purposes of this Section 1(k) include any subsidiaries,
parent entities or other Affiliates thereof) that, as of the Date of
Termination, competes with any of the businesses of the Company.

 

(l)            “Continuing
Director” means (i) any member of the Board immediately following the
election of directors at the Company’s 2008 annual meeting of stockholders or (ii) any
person who subsequently becomes a member of the Board who was elected by a
majority of Continuing Directors or whose appointment, election or nomination
for election to the Board is recommended by a majority of the Continuing
Directors (which person shall thereby become a “Continuing Director”).

 

(m)          “Date
of Termination” shall mean (i) if the Executive’s employment is terminated
by his death, the date of his death; (ii) if the Executive’s employment is
terminated as a result of Disability, the date provided in Section 6(a)(ii);
and (iii) if the Executive’s employment is terminated pursuant to Sections
6(a)(iii) — (vii), the date specified in the Notice of Termination (or if
no such date is specified, the last day of the Executive’s active employment
with the Company), in each case provided in accordance with this Agreement.

 

(n)           “Disability”
shall mean “Disabled” as such term is defined in Section 409A(a)(2)(C) of
the Code.

 

(o)           “Equity
Incentive Plan” means the Company’s 1999 Long-Term Incentive Plan, as amended
from time to time (or any other equity based compensation plan or agreement
that may be adopted or entered into by the Company from time to time).

 

(p)           “Executive”
shall have the meaning set forth in the preamble hereto.

 

3

 

(q)           The
Executive shall have “Good Reason” to resign his employment upon the occurrence
of any of the following without the Executive’s prior written consent:

 

(i)            failure
of the Company to continue the Executive in the position of, and with the
titles of, Senior Vice President – Chief Accounting Officer,

 

(ii)           a
material diminution or undue dilution in the nature or scope of the Executive’s
employment responsibilities, duties or authority, a material interference with
the discharge of the Executive’s responsibilities, duties or authority or the
assignment to the Executive of duties or responsibilities that are materially
and adversely inconsistent with his then position;

 

(iii)          relocation of the Company’s executive offices
more than 35 miles from New York City, or any requirement that the Executive
relocate from his residence from the place existing on the Effective Date;

 

(iv)          failure
of the Company to timely make any material payment or provide any material
benefit under this Agreement, or the Company’s reduction of any compensation or
equity or any material reduction of any benefits that the Executive is eligible
to receive under this Agreement; or

 

(v)           the
Company’s material breach of this Agreement; provided, however, that
notwithstanding the foregoing the Executive may not resign his employment for
Good Reason unless: (x) the Executive provides the Company with at least
30 days prior written notice of his intent to resign for Good Reason (which
notice is provided not later than the 90th day following the date on which the
Executive becomes aware of the occurrence of the event constituting Good
Reason), and (y) the Company does not remedy the alleged violation(s) within
such 30-day period; and, provided, further, that notwithstanding the foregoing
if the Executive is suspended pursuant to Section 6(b), such suspension
(and any corresponding diminution of the Executive’s title, duties or
compensation, or other change to the Executive’s employment arrangements
described hereunder) shall not, in and of itself, give the Executive Good
Reason to resign his employment.

 

(r)            “Intellectual
Property” shall have the meaning set forth in Section 9(f).

 

(s)           “Non-Compete
Term” shall have the meaning set forth in Section 9(a).

 

(t)            “Notice
of Termination” shall have the meaning set forth in Section 6(b).

 

(u)           “Option”
shall mean an option to purchase Common Stock pursuant to the Equity Incentive
Plan, as amended from time to time (or any other equity based compensation plan
or agreement that may be adopted or entered into by the Company from time to
time).

 

4

 

(v)           “Person”
shall mean an individual, partnership, corporation, business trust, limited
liability company, joint stock company, trust, unincorporated association,
joint venture, governmental authority or other entity of whatever nature.

 

(w)          “Pro-Rata
Bonus” shall have the meaning set forth in Section 7(d).

 

(x)            “Release”
shall have the meaning set forth in Section 7(b).

 

(y)           “Restricted
Stock” or “Restricted Stock unit” shall mean a share or shares of Common Stock
(or a unit or units representing Common Stock) granted to the Executive
pursuant to the Equity Incentive Plan, as amended from time to time (or any
other equity based compensation plan or agreement that may be adopted or
entered into by the Company from time to time).

 

(z)            “Term”
shall have the meaning set forth in Section 2.

 

(aa)         “Voting
Stock” means all capital stock of the Company which by its terms may be voted
on all matters submitted to stockholders of the Company generally.

 

2.             Employment.  Subject to Section 6, the Company shall
employ the Executive and the Executive shall continue in the employ of the
Company as an employee at will pursuant to the terms of this Agreement, as may
be amended (the “Term”).

 

3.             Position and Duties.  The Executive shall serve as Senior Vice
President – Chief Accounting Officer, with such duties and responsibilities
with respect to the Company and its Affiliates as the Company’s Chief Financial
Officer so directs.  The Executive shall
devote substantially all of his business time, attention and efforts, toward
the performance of his duties under this Agreement.  Notwithstanding the foregoing, the Executive
may manage his personal investments, be involved in charitable and professional
activities (including serving on charitable and professional boards), and, with
the consent of the Board, serve on not more than two boards of directors and
advisory committees of public companies (including service on the Board of the
Company), so long as such service does not materially interfere with the
performance of the Executive’s duties hereunder or violate Section 9
hereof.

 

4.             Place of Performance.  In connection with his employment during the
Term, the Executive shall be based at the Company’s offices in New York City,
except for necessary travel on the Company’s business.

 

5.             Compensation and Related Matters.

 

(a)           Annual
Base Salary.  At the commencement of
the Term, the Executive shall receive a base salary at a rate of $350,000 per
annum (the “Annual Base Salary”), paid in accordance with the Company’s general
payroll practices for executives, but no less frequently than monthly.  The CEO, Board and the Committee may in their
sole discretion review the rate of Annual Base Salary payable to the Executive
in effect from time to time, and may, in their 

 

5

 

sole discretion, increase (but not decrease) the rate
of Annual Base Salary payable hereunder; provided, however, that any increased
rate shall thereafter be the rate of “Annual Base Salary” hereunder.

 

(b)           Bonus.  The Executive shall be eligible to receive an
annual bonus, or any pro rated portion thereof (the “Bonus”), as determined
pursuant to the Company’s 1999 Long Term Incentive Plan (or any similar or
successor plan) (collectively, the “Bonus Plan”), and on the basis of the
Executive’s or the Company’s attainment of objective financial or other
operating criteria established by the Committee in its sole good faith
discretion and in consultation with the Executive.  The Executive’s initial target Bonus shall be
60% of his Annual Base Salary subject to his continued employment with the
Company through the date such bonus is paid. Executive’s bonus for 2008 will
not be subject to pro-ration based on his start date with the Company. The
Bonus for each fiscal year shall be paid to the Executive no later than 75 days
following the completion of such fiscal year. 
In addition, the Executive shall be eligible to participate in any other
bonus or compensation plan or program that may be established by the Committee
and that covers the Executive (even if such plan or program does not provide
for qualified performance-based bonuses within the meaning of Code Section 162(m)),
at a level commensurate with the Executive’s position.

 

(c)           Sign-On
Bonus.  The Executive shall receive a
one-time sign-on bonus of $500,000 (the “Sign-on Bonus”) (less applicable
withholding taxes) which shall be paid in a lump sum within 30 days of the
Effective Date.

 

(d)           Equity
Awards.

 

(i)            The
Company shall recommend to the Compensation Committee of the Board (the “Compensation
Committee”) within three months of the Effective Date that, subject to
Compensation Committee approval, Executive shall be awarded 30,000 shares of
Restricted Stock in accordance with the terms of the Equity Incentive Plan,
subject to such vesting of one-fourth (1/4) thereof on each of the first
anniversary of the approval date of such award by the Compensation Committee
and each of the three anniversaries thereafter. 
Additionally, the award of the Restricted Stock, if any, shall be
subject to (i) the terms of the Company’s standard Restricted Stock
agreement which shall be required to be signed and returned by the Executive
for the award to be effective, and (ii) compliance with applicable
securities laws and the Company’s policies concerning insider trading and
equity practices, as determined by the Compensation Committee in its sole discretion.

 

(ii)           For
each year during the Term after 2008, the Executive shall be eligible to be
granted Restricted Stock units, Restricted Stock, Options and/or other equity
compensation awards at such time(s) and in such amount(s) as may be
determined by the Committee in its sole discretion, at a level commensurate
with the Executive’s position.  For the
avoidance of doubt, the Compensation Committee shall have complete and sole
discretion as to whether to grant awards (if any) under this Section 5(d)(ii).

 

6

 

(e)           Benefits.  The Executive (and his eligible dependents)
shall be entitled to receive such benefits (including, without limitation,
fringe benefits and perquisites) and to participate in such employee benefit
plans, including life, health and disability insurance policies and the Company’s
Code Section 401(k) pension plan, as are generally provided by the
Company to its executives at a comparable level in accordance with the terms of
such plans, practices and programs of the Company, at a level commensurate with
the Executive’s position.

 

(f)            Expenses.  The Company shall reimburse the Executive for
all reasonable and necessary expenses incurred by the Executive in connection
with the performance of the Executive’s duties as an employee of the
Company.  Such reimbursement is subject
to the submission to the Company by the Executive of appropriate documentation
and/or vouchers in accordance with the customary procedures of the Company for
expense reimbursement, as such procedures may be revised by the Company from
time to time and to such caps on reimbursements as the Board may from time to
time impose.

 

(g)           Paid
Time Off.  The Company shall provide
the Executive with Paid Time Off (“PTO”) based on length of service with the
Company. Under such plan the Executive will be eligible to accrue PTO daily
with an annual maximum PTO entitlement of 168 hours (21 days a year) until
reaching the fifth (5th) anniversary of the Effective Date. Upon
reaching the fifth (5th) anniversary of the Effective Date, the
Executive will accrue PTO daily with an annual PTO entitlement of 208 hours (26
days a year) until the tenth (10th) anniversary of the Effective
Date.. The daily accrual is the annual accrual amount divided by the total days
in a year. PTO encompasses vacation days, personal days and sick days,
including the waiting period for short term disability coverage.

 

6.             Termination.  The Executive’s employment hereunder may be
terminated by the Company, on the one hand, or the Executive, on the other
hand, as applicable, without any breach of this Agreement only under the
following circumstances:

 

(a)           Terminations.

 

(i)            Death.  The Executive’s employment hereunder shall
terminate upon his death.

 

(ii)           Disability.  In the event of the Executive’s Disability,
the Company may give the Executive written notice of its intention to terminate
the Executive’s employment while he remains so disabled.  In such event, the Executive’s employment
with the Company shall terminate effective on the 14th day after delivery of
such notice, provided that within the 14 days after such delivery, the
Executive shall not have returned to full-time performance of his duties.

 

(iii)          Cause. 
The Board may terminate the Executive’s employment hereunder for Cause
in accordance with the terms of Section 1(e) hereof.

 

7

 

(iv)          Good
Reason.  The Executive may terminate
his employment for Good Reason in accordance with the terms of Section 1(q) hereof.

 

(v)           Without
Cause.  The Company may terminate the
Executive’s employment without Cause upon 30 days written notice to the
Executive.

 

(vi)          Resignation
without Good Reason.  The Executive
may resign his employment without Good Reason upon 60 days written notice to
the Company.

 

(b)           Notice
of Termination.  Any termination of
the Executive’s employment by the Company or by the Executive under this Section 6
(other than termination pursuant to paragraph (a)(i) or (a)(vii)) shall be
communicated by a written notice to the other party hereto indicating the
specific termination provision in this Agreement relied upon, setting forth in
reasonable detail any facts and circumstances claimed to provide a basis for
termination of the Executive’s employment under the provision so indicated, and
specifying a Date of Termination in accordance with this Agreement (a “Notice
of Termination”); provided, the Company may suspend the Executive from his
position with full pay during any notice period.

 

(c)           Upon
the occurrence of any termination of the Executive’s employment with the
Company, the Executive shall and shall be deemed to immediately resign from any
membership on the Board and from any committees thereof (and the Executive
shall promptly tender to the Board a written resignation letter effecting the
foregoing).

 

7.             Severance Payments and Benefits.

 

(a)           Termination
for any Reason.  In the event the
Executive’s employment with the Company is terminated for any reason, as soon
as reasonably practicable after such termination the Company shall pay the
Executive (or his beneficiary in the event of his death) a lump sum equal to
any unpaid Annual Base Salary that has accrued as of the Date of Termination,
any unreimbursed expenses due to the Executive, and an amount for any accrued but
unused vacation days and any earned but unpaid Bonus for any fiscal year of the
Company completed prior to the date of such termination.  The Executive shall also be entitled to
accrued, vested benefits under the Company’s benefit plans and programs as provided
therein.  The Executive shall be entitled
to the cash severance payments described below only as set forth herein, and
the provisions of this Section 7 shall supersede in their entirety any
severance payment provisions in any severance plan, policy, program or
arrangement maintained by the Company.

 

(b)           Terminations
without Cause or for Good Reason. 
Except as otherwise provided by Section 7(c) with respect to
certain terminations of employment after a Change in Control, if the Executive’s
employment shall terminate without Cause (pursuant to Section 6(a)(v)), or
for Good Reason (pursuant to Section 6(a)(iv)), the Company shall (subject
to the Executive’s entering into a General Release with the Company in
substantially the form attached hereto as Exhibit A (the “Release”)):

 

8

 

(i)            Pay
to the Executive as severance an amount equal to the Executive’s then current
Annual Base Salary in equal monthly installments during the period beginning on
the Date of Termination and ending on the first anniversary thereof; provided,
however, that no amount shall be payable on or following the date the Executive
first (i) breaches any of the covenants set forth in Sections 9(a) or
9(b) or (ii) materially breaches any of the covenants set forth in Section 9(c) or
9(e), which is not remedied (if remediable) within 30 days after receipt of
written notice from the Company specifying the breach;

 

(ii)           Continue
to provide, at the Company’s expense, the Executive (and his eligible
dependents) with the medical, dental and life insurance coverage in which he
(or his eligible dependents) was participating as of the Date of Termination
(at a level then in effect with respect to coverage and employee premiums)
until the first anniversary of the Date of Termination; and

 

(iii)          Pay to the Executive a Pro-Rata Bonus, as
defined in Section 7(d), when bonuses are paid for the year of
termination.

 

(c)           Certain
Terminations after a Change in Control. 
If the Executive’s employment shall terminate without Cause (pursuant to
Section 6(a)(v)) or for Good Reason (pursuant to Section 6(a)(iv))
after a Change in Control, in any such case, the Company shall (subject to the
Executive’s entering into the Release):

 

(i)            Pay
to the Executive an amount equal to the Executive’s then current Annual Base
Salary; payable in cash in a lump sum as soon as reasonably practicable after
such termination of employment but in no event later than five (5) business
days thereafter;

 

(ii)           Continue
to provide, at the Company’s expense, the Executive (and his eligible
dependents) with the medical, dental and life insurance coverage in which he
(or his dependents) was participating as of the Date of Termination (at a level
then in effect with respect to coverage and employee premiums) until the first
anniversary of the Date of Termination;

 

(iii)          Pay Executive a Pro-Rata Bonus, as defined in
Section 7(d), when bonuses are paid for the year of termination;

 

(iv)          all
Restricted Stock units, Restricted Stock, Options and other equity compensation
awards then held by the Executive shall become fully vested, free from
restriction and/or exercisable for the balance of their respective terms with
respect to all shares subject thereto; and

 

(v)           Notwithstanding
any other provision of this Agreement, the parties acknowledge and agree that
Sections 7(b) and 7(c) shall operate in the alternative and that any
payments and benefits that the Executive shall be entitled to receive pursuant
to this Section 7(c) in connection with a termination of his
employment and the subsequent occurrence of a Change 

 

9

 

in Control shall be offset by payments and benefits
received by the Executive pursuant to Section 7(b) on or prior to the
effective date of such Change in Control.

 

(d)           Termination
by Reason of Disability or Death.  If
the Executive’s employment shall terminate by reason of his Disability
(pursuant to Section 6(a)(ii)) or death (pursuant to Section 6(a)(i)),
then the Company shall pay to the Executive (or Executive’s estate) when
bonuses are paid for the year of termination a pro-rated amount of the
Executive’s Bonus for the fiscal year in which the Date of Termination occurs
equal to the product of (i) the amount of the Bonus the Executive would
have otherwise earned had he been employed by the Company on the last day of
the fiscal year in which the Date of Termination occurs and (ii) the ratio
of (A) the number of days elapsed during such fiscal year prior to the
Date of Termination to (B) 365 (the “Pro-Rata Bonus”), and provide the
Executive (and his eligible dependents), as applicable, with the continued
health coverage described in

Section 7(b)(ii).

 

(e)           Survival.  The expiration or termination of the Term
shall not impair the rights or obligations of any party hereto which shall have
accrued hereunder prior to such expiration.

 

(f)            No
Mitigation/Set-Off.  The Executive
shall have no obligation to mitigate any payments due hereunder.  Any amounts earned by the Executive from
other employment shall not offset amounts due hereunder, except as provided in
this Section 7.  The Company’s
obligation to pay the Executive the amounts provided hereunder shall not be
subject to set-off, counterclaim or recoupment of amounts owed by the Executive
to the Company or its affiliates, except (i) as provided by Section 7
and/or (ii) for any specific, stated amounts owed by the Executive to the
Company as evidenced by a writing signed by the Executive.

 

8.             [Intentionally omitted]

 

9.             Certain Restrictive Covenants.

 

(a)           The
Executive shall not, at any time during the Term or during the 12-month period
following the Date of Termination (the “Non-Compete Term”) without the Board’s
prior written consent directly or indirectly engage in, have any equity
interest in, or manage or operate (whether as a director, officer, employee,
agent, representative, security holder, consultant or otherwise) any
Competitive Business; provided, however, that: (x) the Executive shall be
permitted to acquire a passive stock or equity interest in such a Competitive
Business provided the stock or other equity interest acquired is not more than
five percent (5%) of the outstanding interest in such a Competitive Business; (y) the
Executive shall be permitted to acquire any investment through a mutual fund,
private equity fund or other pooled account that is not controlled by the
Executive and which he has less than a five percent (5%) interest; or (z) the
Executive may provide services to a subsidiary, division or Affiliate of a
Competitive Business if such subsidiary, division or Affiliate is not itself
engaged in a Competitive Business and the Executive does not provide services
to, or have any responsibilities regarding, the Competitive Business.  At any time during the Non-Compete Term following
the Date of Termination, the Executive may request in writing to the Board that
the Board consent to the Executive’s direct or 

 

10

 

indirect engagement in, ownership of equity interest
in, or management or operation of (whether as a director, officer, employee,
agent, representative, security holder, consultant or otherwise) any
Competitive Business, which request the Board shall consider in good faith
based upon the Board’s reasonable determination of the potential impact of the
Executive’s involvement in such Competitive Business on the Company and its
stockholders.  If the Executive believes
that the Board would benefit from any additional information or if the
Executive has any issues or questions regarding any action taken or to be taken
by the Board in connection with this Section 9(a), then the Board and the
Executive (along with their respective representatives) shall meet and discuss
any such issues or questions, and the Executive shall be permitted to present
the Board with any relevant information that he deems appropriate.  The Board and the Executive shall act in good
faith to address all outstanding issues and questions while protecting the
interests of the Company and its stockholders.

 

(b)           During
the 12 month period following the Date of Termination, the Executive shall not,
directly or indirectly (a) recruit, hire or otherwise solicit any person
employed by the Company, its subsidiaries, or any of their respective
Affiliates as of the Termination Date, (b) recruit, hire or otherwise
solicit for employment any person known by the Executive (after reasonable
inquiry) to be employed at the time by the Company, its subsidiaries, or any of
their respective Affiliates as of the date of the solicitation, (c) recruit
or otherwise solicit or induce any non-clerical employee, director, consultant,
wholesale customer, vendor, supplier, lessor or lessee of the Company to
terminate his or its employment or arrangement with the Company or otherwise
change its relationship with the Company, provided that nothing in this Section 9(b) shall
prohibit the Executive from providing employment, personal or other references
for any such Person or general advertising for employees by the Executive or
any Person of which the Executive is an employee or Affiliate.

 

(c)           Except
as the Executive deems necessary (or, in good faith, desirable) to be disclosed
in connection with the performance of the Executive’s duties hereunder or as
specifically set forth in this Section 9, the Executive shall, in
perpetuity, maintain in confidence and shall not directly, indirectly or
otherwise, use, disseminate, disclose or publish, or use for his benefit or the
benefit of any person, firm, corporation or other entity any confidential or proprietary
information or trade secrets of or relating to the Company, including, without
limitation, information with respect to the Company’s operations, processes,
products, inventions, business practices, finances, principals, vendors,
suppliers, customers, potential customers, marketing methods, costs, prices,
contractual relationships, regulatory status, business plans, designs,
marketing or other business strategies, compensation paid to employees or other
terms of employment, or deliver to any person, firm, corporation or other
entity any document, record, notebook, computer program or similar repository
of or containing any such confidential or proprietary information or trade
secrets.  Notwithstanding anything herein
to the contrary, nothing shall prohibit the Executive from disclosing any
information that is (i) generally known by the public (unless such
knowledge occurs as a result of the Executive’s breach of any portion of this

Section 9(c)), (ii) when disclosure is required by law or by any court,
arbitrator, mediator or administrative or legislative body (including any
committee thereof) with apparent jurisdiction to order the Executive to
disclose or make accessible any information, provided that, unless 

 

11

 

otherwise prohibited by law and provided such
information is not related to any illegal activities of the Company or any of
its subsidiaries, the Executive shall provide the Company with prompt notice of
any such requested or required disclosure and shall reasonably cooperate with
the Company in any effort by the Company to prevent or otherwise contest such
disclosure or (iii) with respect to any other litigation, arbitration or
mediation involving this Agreement, including, but not limited to, the
enforcement of this Agreement.  The
parties hereby stipulate and agree that as between them the foregoing matters
are important, material and confidential proprietary information and trade
secrets and affect the successful conduct of the businesses of the Company (and
any successor or assignee of the Company). 
Upon termination of the Executive’s employment with the Company for any
reason, the Executive will promptly deliver to the Company all correspondence,
drawings, manuals, letters, notes, notebooks, reports, programs, plans,
proposals, financial documents, or any other documents concerning the Company’s
customers, business plans, designs, marketing or other business strategies,
products or processes, provided that the Executive may retain (i) papers
and other materials of a personal nature, including, but not limited to,
photographs, correspondence, personal diaries, calendars and rolodexes,
personal files and phone books, (ii) information showing his compensation
or relating to reimbursement of expenses, (iii) information that he
reasonably believes may be needed for tax purposes, (iv) copies of plans,
programs and agreements relating to his employment, or termination thereof,
with the Company and (v) copies of minutes, presentation materials and personal
notes from any meeting of the Board, or any committee thereof, while he was a
member of the Board.

 

(d)           The
Executive shall reasonably cooperate with and assist the Company and its
counsel at any time and in any manner reasonably required by the Company or its
counsel (with due regard for the Executive’s other commitments if he is not
employed by the Company) in connection with any litigation or other legal
process affecting the Company of which the Executive has knowledge as a result
of his employment with the Company (other than any litigation with respect to
this Agreement).  In any event, (i) in
any matter subject to this Section 9(d), the Executive shall not be
required to act against the best interests of any new employer or new business
venture in which he is a partner or active participant and (ii) any
request for such cooperation shall take into account (A) the significance
of the matters at issue in the litigation, arbitration, proceeding or
investigation and (B) the Executive’s other personal and business
commitments.  The Company agrees to
provide the Executive reasonable notice in the event his assistance is
required.  The Company will reimburse the
Executive for all reasonable expenses and costs he may incur as a result of
providing such assistance, including lost wages (after the Term), travel costs
and legal fees to the extent the Executive reasonably believes that separate
representation is warranted.  The
Executive’s entitlement to reimbursement of expenses, including legal fees
pursuant to this Section 9(d), shall in no way affect the Executive’s
rights to be indemnified and/or advanced expenses in accordance with the
Company’s corporate documents, insurance policies and/or in accordance with
this Agreement.

 

(e)           The
Executive shall not intentionally disparage the Company, any of its products or
practices, or any of its directors, officers, or employees, whether orally, in
writing or otherwise, at any time.  The
Company (including without limitation its directors) shall not 

 

12

 

intentionally disparage the Executive, whether orally,
in writing or otherwise, at any time. 
Notwithstanding the foregoing: nothing in this Section 9(e) shall
(i) limit the ability of the Company or the Executive, as applicable, to
provide truthful testimony as required by law or any judicial or administrative
process or the Executive from making normal commercial competitive type
statements in a competitive business situation not based on his employment with
the Company, or (ii) prevent any Person from (x) responding publicly
to incorrect, disparaging or derogatory public statements to the extent
reasonably necessary to correct or refute such public statement or (y) making
any truthful statement to the extent necessary in any litigation, arbitration
or mediation proceeding involving this Agreement, including, but not limited
to, the enforcement of this Agreement. 
In no event shall any termination of the Executive’s employment by the
Company or the Executive for any reason constitute disparagement for purposes
of this Section 9(e).

 

(f)            The
Executive agrees that all strategies, methods, processes, techniques, marketing
plans, merchandising schemes, themes, layouts, mechanicals, trade secrets,
copyrights, trademarks, patents, ideas, specifications and other material or
work product (“Intellectual Property”) that the Executive creates, develops or
assembles in connection with his employment hereunder shall become the
permanent and exclusive property of the Company to be used in any manner it
sees fit, in its sole discretion.  The
Executive shall not communicate to the Company any ideas, concepts, or other
intellectual property of any kind (other than that required in his capacity as
an officer of the Company) which (i) were earlier communicated to the
Executive in confidence by any third party as proprietary information, or (ii) the
Executive knows or has reason to know is the proprietary information of any
third party.  All Intellectual Property
created or assembled in connection with the Executive’s employment hereunder
shall be the permanent and exclusive property of the Company.  The Company and the Executive mutually agree
that all Intellectual Property and work product created in connection with this
Agreement, which is subject to copyright, shall be deemed to be “work made for
hire,” and that all rights to copyrights shall be vested in the Company.  If for any reason the Company cannot be
deemed to have commissioned “work made for hire,” and its rights to copyright are
thereby in doubt, then the Executive agrees not to claim to be the proprietor
of the work prepared for the Company, and to irrevocably assign to the Company,
at the Company’s expense, all rights in the copyright of the work prepared for
the Company.

 

(g)           The
Company and the Executive expressly acknowledge and agree that the agreements
and covenants contained in this Section 9 are reasonable.  In the event, however, that any agreement or
covenant contained in this Section 9 shall be determined by any court of
competent jurisdiction to be unenforceable by reason of its extending for too
great a period of time or over too great a geographical area or by reason of
its being too extensive in any other respect, it will be interpreted to extend
only over the maximum period of time for which it may be enforceable, and/or
over the maximum geographical area as to which it may be enforceable and/or to
the maximum extent in all other respects as to which it may be enforceable, all
as determined by such court in such action.

 

13

 

(h)           As used in this Section 9, the term “Company”
shall include the Company and any of its direct or indirect subsidiaries within
the meaning of Code Section 424(f).

 

(i)            Any limitation on the Executive’s
activities or any forfeiture of benefits, equity or compensation based on
violation of limitations on the Executive’s activities shall not be based on
any limitation that is any broader than those set forth in this Section 9.

 

10.           Specific Performance. 
It is recognized and acknowledged by the Executive and the Company that
a breach by such Person of such Person’s covenants contained in Section 9
will cause irreparable damage to the Company or the Executive, as applicable,
and its or his goodwill or reputation, the exact amount of which will be
difficult or impossible to ascertain, and that the remedies at law for any such
breach will be inadequate.  Accordingly,
the parties agree that in the event a party breaches any covenant contained in Section 9,
in addition to any other remedy which may be available at law or in equity (or
under any other agreement between the Company and the Executive), the other
party will be entitled to specific performance and injunctive relief.

 

11.           Purchases and Sales of the
Company’s Securities.  The Executive agrees to use
his reasonable best efforts to comply in all respects with the Company’s
applicable written policies regarding the purchase and sale of the Company’s
securities by employees, as such written policies may be amended from time to
time and disclosed to the Executive.  In
particular, and without limitation, the Executive agrees that he shall not
purchase or sell Company securities while an employee during any “trading
blackout period” as may be determined by the Company and set forth in the
Company’s applicable written policies from time to time.

 

12.           Cooperation Regarding
Insurance.  The Company and/or any of its subsidiaries,
divisions or Affiliates may, from time to time, apply for and obtain, for its
or their benefit and at its or their sole expense, key man life, health,
accident, disability, or other insurance upon the Executive, in any amounts
that it or they may deem necessary or desirable to protect its or their
respective interests, and the Executive agrees to reasonably cooperate with and
assist the Company or any such subsidiary, division or Affiliate in obtaining
any and all such insurance by submitting to all reasonable medical
examinations, if any, and by filling out, executing and delivering any and all
insurance applications and other instruments as may be reasonably necessary to
obtain such insurance.

 

13.           Representations.

 

(a)           The Executive hereby represents and
warrants, to the best of his knowledge, that he is not a party to or bound by
any agreement, arrangement or understanding, written or otherwise, which
prohibits or in any manner restricts his ability to enter into and fulfill his
obligations under this Agreement (other than confidentiality obligations with
any of the Executive’s prior employers). 
The parties acknowledge and agree that the Executive shall not use of
disclose, or be permitted to use or disclose, any confidential or proprietary
information belonging to any prior employer in connection with the performance
of his duties under this Agreement.

 

14

 

(b)           The Company represents and warrants that (i) it
is fully authorized by action of the Board and of any Person whose action is
required to enter into this Agreement and perform its obligations; (ii) the
execution, delivery and performance of this Agreement by it does not and will
not violate any applicable law, regulation, order, judgment or decree or any
agreement, plan or corporate governance document to which it is a party or by
which it is bound; and (iii) upon the execution and delivery of this
Agreement by the parties, this Agreement shall be a valid and binding
obligation of the Company, enforceable against it in accordance with its terms.

 

14.           Delegation and Assignment. 
The Executive shall not delegate his employment obligations under this
Agreement to any other person.  The
Company may not assign any of its obligations hereunder other than to any
entity that acquires (by purchase, merger or otherwise) all or substantially
all of the Voting Stock or assets of the Company, provided such acquirer
promptly assumes all of the obligations hereunder of the Company in a writing
delivered to the Executive.  In the event
of the Executive’s death while he is receiving severance hereunder the
remainder shall be paid to his estate. 
In the event of a merger or other combination, or the sale or
liquidation of business and assets, the Company shall use its reasonable best
efforts to cause such assignee or transferee to promptly and expressly assume
the liabilities, obligations and duties of the Company hereunder.

 

15.           Notices. 
Any written notice required by this Agreement will be deemed provided
and delivered to the intended recipient when (a) delivered in person by
hand; or (b) three (3) days after being sent via U.S.  certified mail, return receipt requested; or (c) one
(1) day after being sent via by overnight courier, in each case when such
notice is properly addressed to the following address and with all postage and
similar fees having been paid in advance:

 

If to the Company:

 

Monster Worldwide, Inc.

622 Third Avenue

New York, New York 10017

Attn: General Counsel

 

with a copy to:

 

Dechert LLP

30 Rockefeller Plaza

New York, New York 10112

Attn: Martin Nussbaum, Esq.

 

If to the Executive: to
him at the most recent address in the Company’s records.

 

Either party may change
the address to which notices, requests, demands and other communications to
such party shall be delivered personally or mailed by giving written notice to
the other party in the manner described above.

 

15

 

16.           Binding Effect. 
This Agreement shall be for the benefit of and binding upon the parties
hereto and their respective heirs, personal representatives, legal
representatives, successors and, where applicable, permitted assigns.

 

17.           Entire Agreement. 
This Agreement and any indemnification agreement between the Executive
and the Company constitute the entire agreement between the parties with
respect to the subject matter described in this Agreement and supersedes all
prior agreements, understandings and arrangements, both oral and written,
between the parties with respect to such subject matter.  This Agreement may not be modified, amended,
altered or rescinded in any manner, except by written instrument signed by both
of the parties hereto; provided, however, that the waiver by either party of a
breach or compliance with any provision of this Agreement shall not operate nor
be construed as a waiver of any subsequent breach or compliance.

 

18.           Severability. 
In case any one or more of the provisions of this Agreement shall be
held by any court of competent jurisdiction or any arbitrator selected in
accordance with the terms hereof to be illegal, invalid or unenforceable in any
respect, such provision shall have no force and effect, but such holding shall
not affect the legality, validity or enforceability of any other provision of
this Agreement; provided, however, that subsequent to the severing of such
provision from this Agreement, the parties shall negotiate in good faith to amend
this Agreement to contain an enforceable provision (if at all possible)
representing the intent of the parties with respect to such severed provision.

 

19.           Dispute Resolution and
Arbitration.  In the event that any dispute arises between
the Company and the Executive regarding or relating to this Agreement and/or
any aspect of the Executive’s employment relationship with the Company, AND IN
LIEU OF LITIGATION AND A TRIAL BY JURY, the parties consent to resolve such
dispute through mandatory arbitration in New York City under the then
prevailing rules of the Judicial Arbitration and Mediation Services (“JAMS”),
before a single arbitrator mutually agreed to by the parties, or, if an
arbitrator has not been agreed upon by the 60th day of the demand for arbitration
by either party, appointed by JAMS.  The
parties hereby consent to the entry of judgment upon award rendered by the
arbitrator in any court of competent jurisdiction.  Notwithstanding the foregoing, however,
should adequate grounds exist for seeking immediate injunctive or immediate
equitable relief, any party may seek and obtain such relief.  The parties hereby consent to the exclusive
jurisdiction in the state and Federal courts of or in the State of New York for
purposes of seeking such injunctive or equitable relief as set forth
above.  The parties acknowledge and agree
that, in connection with any such arbitration and regardless of outcome, (a) each
party shall pay all of its own costs and expenses, including without limitation
its own legal fees and expenses, and (b) joint expenses shall be borne
equally among the parties. 
Notwithstanding the foregoing, the arbitrator may cause the losing party
to pay to the winning party (each as determined by the arbitrator consistent
with its decision on the merits of the arbitration) an amount equal to any
reasonable out-of-pocket costs and expenses incurred by the winning party with
respect to such arbitration (as may be equitably determined by the arbitrator).

 

16

 

20.           Choice of Law. 
The Executive and the Company intend and hereby acknowledge that
jurisdiction over disputes with regard to this Agreement, and over all aspects
of the relationship between the parties hereto, shall be governed by the laws
of the State of New York without giving effect to its rules governing
conflicts of laws.

 

21.           Section Headings. 
The section headings contained in this Agreement are for reference
purposes only and shall not affect in any manner the meaning or interpretation
of this Agreement.

 

22.           Construction. 
The parties have participated jointly in the negotiation and drafting of
this Agreement.  In the event that an
ambiguity or question of intent or interpretation arises, this Agreement shall
be construed as if drafted jointly by the parties and no presumption or burden
of proof shall arise favoring or disfavoring any party by virtue of the
authorship of any of the provisions of this Agreement.  Any reference to any federal, state, local or
foreign statute or law shall be deemed also to refer to all rules and
regulations promulgated thereunder, unless the context requires otherwise.  The word “including” shall mean including
without limitation.  If any provision of
any agreement, plan, program, policy, arrangement or other written document
between or relating to the Company and the Executive conflicts with any
provision of this Agreement, the provision of this Agreement shall control and
prevail, unless the parties otherwise agree with specific reference to this Section 22.

 

23.           Counterparts. 
This Agreement may be executed in any number of counterparts and by
facsimile or pdf, each of which shall be deemed an original, but all of which
taken together shall constitute one and the same instrument.

 

24.           Force Majeure. 
Neither Company nor the Executive shall be liable for any delay or
failure in performance of any part of this Agreement to the extent that such
delay or failure is caused by an event beyond its reasonable control including,
but not be limited to, fire, flood, explosion, war, strike, embargo, government
requirement, acts of civil or military authority, and acts of God not resulting
from the negligence of the claiming party.

 

25.           Withholding. 
The Company shall be entitled to withhold from any amounts payable under
this Agreement any federal, state, local or foreign withholding or other taxes
or charges which the Company is required to withhold pursuant to applicable
law.  The Company shall be entitled to
rely on an opinion of counsel if any questions as to the amount or requirement
of withholding shall arise.

 

26.           Code Section 409A. 
The parties understand and agree that certain payments contemplated by
this Agreement may be “deferred compensation” for purposes of Code Section 409A.  Notwithstanding any provision of this
Agreement to the contrary, any payments constituting deferred compensation
required to be made upon or in respect of the Executive’s termination of
employment hereunder shall not be made prior to the first day of the seventh
month after the Executive’s termination of employment, to the extent necessary
to comply with Code Section 409A(2)(B)(i). 
The Company shall identify in writing delivered to the Executive any
payments it reasonably determines are subject to delay under this Section 26
and shall 

 

17

 

promptly pay any such amounts, without interest, at
the conclusion of the applicable six month period (or, if later, when scheduled
to be paid under the terms of the Agreement). 
No deferred compensation payable hereunder shall be subject to
acceleration or to any change in the specified time or method of payment,
except as otherwise provided under this Agreement and consistent with Code Section 409A.  If any compensation or benefits provided by
this Agreement may result in the application of Section 409A of the Code,
the Company shall, in consultation and agreement with the Executive, modify
this Agreement in the least restrictive manner necessary in order to exclude
such compensation from the definition of “deferred compensation” within the
meaning of such Code Section 409A or in order to comply with the
provisions of Code Section 409A, other applicable provision(s) of the
Code and/or any rules, regulations or other regulatory guidance issued under
such statutory provisions.  The parties
also agree that all amounts required to be paid hereunder to the Executive or
his estate or beneficiaries shall, notwithstanding any other provision in this
Agreement required such amounts to be paid at a different time, be paid by no
later than the latest date by which such amounts would have to be paid in order
not to be treated under Code Section 409A as includible in gross income
for any tax year earlier than the tax year in which such payment otherwise was
scheduled to be made under the terms of this Agreement.

 

27.           Survivorship. 
Except as otherwise expressly set forth in this Agreement, to the extent
necessary to carry out the intentions of the parties hereunder, the respective
rights and obligations of the parties hereunder shall survive any termination
of the Executive’s employment.

 

18

 

IN WITNESS WHEREOF, the parties have executed this
Agreement on the date and year first above written.

 

	
   

  	
  MONSTER
  WORLDWIDE, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Salvatore Iannuzzi

  
	
   

  	
  By:

  	
  Salvatore Iannuzzi

  
	
   

  	
  Its:

  	
  Chairman of the Board,
  President and

  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  James M. Langrock

  
	
   

  	
   James M. Langrock

  

 

19

 

EXHIBIT A

General
Release

 

IN
CONSIDERATION OF good and valuable consideration, the receipt of which is
hereby acknowledged, and in consideration of the terms and conditions contained
in the Employment Agreement, dated as of May 15, 2008, (the “Agreement”)
by and between James M. Langrock (the “Executive”) and Monster Worldwide, Inc.
(the “Company”), the Executive on behalf of himself and his heirs, executors,
administrators, and assigns, releases and discharges the Company and its past
present and future subsidiaries, divisions, affiliates and parents, and their
respective current and former officers, directors, employees, agents, and/or
owners, and their respective successors, and assigns and any other person or
entity claimed to be jointly or severally liable with the Company or any of the
aforementioned persons or entities (the “Released Parties”) from any and all
manner of actions and causes of action, suits, debts, dues, accounts, bonds,
covenants, contracts, agreements, judgments, charges, claims, and demands
whatsoever (“Losses”) which the Executive and his heirs, executors,
administrators, and assigns have, had, or may hereafter have, against the
Released Parties or any of them arising out of or by reason of any cause,
matter, or thing whatsoever from the beginning of the world to the date hereof,
including without limitation, any and all matters relating to the Executive’s
employment by the Company and the cessation thereof, and any and all matters
arising under any federal, state, or local statute, rule, or regulation, or
principle of contract law or common law, including but not limited to, the
Family and Medical Leave Act of 1993, as  amended, 29 U.S.C. §§
2601 et  seq., Title VII of the Civil Rights Act of 1964, as
amended, 42 U.S.C. §§ 2000 et  seq., the Age Discrimination
in Employment Act of 1967, as  amended, 29 U.S.C. §§ 621 et
seq. (the “ADEA”), the Americans with Disabilities Act of 1990, as
amended, 42 U.S.C. §§ 12101 et  seq., the Worker Adjustment
and Retraining Notification Act of 1988, as  amended, 29 U.S.C. §§2101
et  seq., the Employee Retirement Income Security Act of 1974, as
amended, 29 U.S.C. §§ 1001 et  seq., the New York
State and New York City Human Rights Laws, the New York Labor Laws, and any other equivalent or similar
federal, state, or local statute; provided, however, that the Executive does
not release or discharge the Released Parties from any of the Company’s
obligations to him under the Agreement, any vested benefit the Executive may be
due under a tax qualified plan sponsored or maintained by the Company or Losses
arising under the ADEA which arise after the date on which the Executive
executes this general release.  It is
understood that nothing in this general release is to be construed as an
admission on behalf of the Released Parties of any wrongdoing with respect to
the Executive, any such wrongdoing being expressly denied.

 

The
Executive represents and warrants that he fully understands the terms of this
general release, that he has been encouraged to seek, and has sought, the
benefit of advice of legal counsel, and that he knowingly and voluntarily, of
his own free will, without any duress, being fully informed, and after due
deliberation, accepts its terms and signs below as his own free act. Except as
otherwise provided herein, the Executive understands that as a result of
executing this general release, he will not have the right to assert that the
Company or any other of the Released Parties unlawfully terminated his
employment or violated any of his rights in connection with his employment or
otherwise.

 

20

 

The
Executive further represents and warrants that he has not filed, and will not
initiate, or cause to be initiated on his behalf any complaint, charge, claim,
or proceeding against any of the Released Parties before any federal, state, or
local agency, court, or other body relating to any claims barred or released in
this General Release thereof, and will not voluntarily participate in such a
proceeding.  However, nothing in this
general release shall preclude or prevent the Executive from filing a claim,
which challenges the validity of this general release solely with respect to
the Executive’s waiver of any Losses arising under the ADEA. The Executive
shall not accept any relief obtained on his behalf by any government agency,
private party, class, or otherwise with respect to any claims covered by this
General Release.

 

The
Executive may take twenty-one (21) days to consider whether to execute this
General Release.  Upon the Executive’s
execution of this general release, the Executive will have seven (7) days
after such execution in which he may revoke such execution. In the event of
revocation, the Executive must present written notice of such revocation to the
office of the Company’s Corporate Secretary. 
If seven (7) days pass without receipt of such notice of
revocation, this General Release shall become binding and effective on the
eighth (8th) day after the execution hereof (the “Effective Date”).

 

INTENDING TO BE LEGALLY BOUND, I hereby set my hand
below:

 

 

	
   

  	
   

  
	
   

  	
  James
  M. Langrock

  
	
   

  	
   

  
	
   

  	
  Dated:

  	
   

  

 

21

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