Document:

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                                                                 EXHIBIT 10.4
                                                                 ------------

                             EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (this "Agreement") is made as of this 5/th/ day
of April, 2000, by and between Allscripts, Inc., a corporation organized and
existing under the laws of the State of Illinois, with its principal place of
business at 2401 Commerce Drive, Libertyville, Illinois 60048 ("Company"), and
Lee A. Shapiro ("Executive").

                                   RECITALS

     WHEREAS, the Company desires to employ Executive as its Executive Vice
President of Strategic Business Development; and

     WHEREAS, Executive desires to be employed by Company in the aforesaid
capacity.

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

                                   AGREEMENT

     I.   Employment
          ----------

     The Company hereby agrees to employ Executive, and Executive hereby accepts
employment, as Executive Vice President of Strategic Business Development of the
Company, pursuant to the terms of this Agreement.  Executive shall report
directly to the Chief Executive Officer.  Executive shall have the duties and
responsibilities of Executive Vice President of Strategic Business Development,
and such other duties and responsibilities not inconsistent with the performance
of his duties and position as Executive Vice President of Strategic Business
Development as are reasonably assigned.

     II.  Effective Date and Term
          -----------------------

     The initial term of Executive's employment by the Company under this
Agreement shall commence as of April 5, 2000 and shall continue until April 30,
2003.  On April 30, 2003, and on each April 30 thereafter, this Agreement shall
automatically renew for a one (1) year term unless the Company or Executive
elects not to renew this Agreement in a written notice to the other party given
at least sixty (60) days preceding such April 30.  Executive's employment period
hereunder ("Employment Period") shall begin on April 5, 2000 and end on the
April 30 on which its term expires by reason of an election not to renew by the
Company or Executive ("Expiration Date") except that if Executive's employment
is terminated pursuant to Section IV hereof the Employment Period shall
terminate on the Effective Termination Date (as defined in Section IV).
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     III. Compensation and Benefits
          -------------------------

     In consideration for the services Executive shall render under this
Agreement, the Company shall provide or cause to be provided to Executive the
following compensation and benefits:

          A.   Base Salary
               -----------

          During the Employment Period, the Company shall pay or cause to be
paid to Executive an annual base salary at a rate of $225,000 for each twelve
month period ending April 30 ("Base Salary"), subject to all appropriate federal
and state withholding taxes and payable in accordance with the Company's normal
payroll procedures.  Such sum shall be reviewed prior to each April 30 during
the Employment Period by the Board of Directors of the Company (the "Board") or
its Compensation Committee for the purposes of determining appropriate merit
increases based on Executive's performance.  The results of such review shall be
reported to Executive prior to each such April 30.

          B.   Benefits
               --------

          During the Employment Period and as otherwise provided hereunder, the
Company shall provide or cause to be provided to Executive the following:

               1.   Twenty (20) business days per year of paid vacation, such
     vacation time not to be cumulative (i.e., vacation time not taken in one
     year shall not be carried forward and used in any subsequent year).

               2.   Health and/or dental insurance, including immediate coverage
     for Executive and his eligible dependents as provided by the Company in
     accordance with its group health insurance plan coverage applicable to
     senior executive employees;

               3.   To the extent that they do not duplicate benefits and
     perquisites provided in this Agreement, such other benefits and perquisites
     as are provided in accordance with the Company's plans, practices, policies
     and programs for senior executive employees of the Company; and

               4.   Indemnification (including immediate advancement of all
     legal fees with respect to any claim for indemnification) and directors'
     and officers' insurance coverage (to the extent made available to other
     senior executives).

          C.   Performance Bonus
               -----------------

          Executive shall be entitled to a cash bonus ("Performance Bonus") as
follows:  (i) a guaranteed annual bonus for each whole calendar year or portion
thereof falling within the Employment Period equal to at least the greater of
(x) twenty-five percent (25%) of the then current Base Salary and (y) $56,250,
and (ii) to the extent provided in Section IV, for the portion of the last
calendar year falling within the Employment Period if the Employment Period
terminates on the

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Effective Termination Date. The Performance Bonus shall be payable on or before
April 30 of the year immediately succeeding the calendar year for which such
Performance Bonus was earned, provided, however, that if the applicable Company
objectives are based on the Company's annual audited financial statements and if
on such April 30 such financial statements have not yet been issued, the
Performance Bonus, if any, shall be payable promptly upon the issuance of such
financial statements.

          D.   Expenses
               --------

          The Company shall reimburse Executive for proper and necessary
expenses incurred by him in the performance of his duties under this Agreement
from time to time upon Executive's submission to the Company of invoices for
such expenses in reasonable detail.

          E.   Stock Awards
               ------------

          Executive shall be entitled to participate in any applicable stock
bonus, stock option or similar plan implemented by the Company including,
without limitation, the Company's Amended and Restated 1993 Stock Incentive Plan
approved by the Board and the Company's shareholders on or about June 7, 1999
(the "Plan"), on the following terms: (i) prior to the date hereof, Executive
      ----
received options to acquire 150,000 shares of common stock of the Company with
an exercise price of $44.625 per share, and Executive shall hereafter receive
additional grants for options under the Plan as approved by the Board
(collectively, "Options"), (ii) such Options shall vest over three (3) years
                -------
with twenty-five percent (25%) vesting on the grant date and a pro rata portion
of the balance vesting on the anniversary of the grant date over a three (3)
year period, (iii) all vested Options shall be free from forfeiture upon
termination of Executive's employment hereunder for any reason, (iv) the vesting
of such Options shall accelerate upon a Change in Control, termination without
Cause or termination by Executive for good reason (as each of the foregoing
terms is hereinafter defined), (v) "cashless" exercise provisions are included
in the terms of such Options and (vi) such other terms favorable to Executive as
are permitted under the Plan.   For purposes of this Agreement, the term "Change
in Control" shall mean any one of the following events:

               1.   The acquisition by any person or group of beneficial
     ownership of stock possessing more than 30% of the outstanding securities
     of the Company which generally entitle the holder thereof to vote for the
     election of directors, ("Voting Power"), except that (a) no such person or
     group shall be deemed to own beneficially (1) any securities acquired
     directly from the Company pursuant to a written agreement with the Company,
     or (2) any securities held by the Company or a Subsidiary of the Company
     ("Subsidiary"), or any employee benefit plan (or any related trust) of the
     Company or a Subsidiary, and (b) no Change in Control shall be deemed to
     have occurred solely by reason of any such acquisition by a corporation
     with respect to which, after such acquisition, more than 60% of both the
     then-outstanding common shares of such corporation and the Voting Power of
     such corporation are then beneficially owned, directly or indirectly, by
     the persons who were the beneficial owners of the stock and voting
     securities of the Company immediately before such acquisition in
     substantially the same proportions as their ownership, immediately before
     such

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     acquisition, of the then outstanding stock or the Voting Power of the
     Company, as the case may be; or

               2.   individuals who, as of the date of this Agreement,
     constitute the Board (the "Incumbent Board") cease for any reason to
     constitute at least a majority of the Board, or the separation from
     employment with the Company of Glen E. Tullman; provided that any
     individual who becomes a director after the date of this Agreement whose
     election or nomination for election by the Company's stockholders was
     approved by a vote of at least two-thirds of the directors then comprising
     the Incumbent Board shall be considered as though such individual were a
     member of the Incumbent Board, but excluding, for this purpose, any such
     individual whose initial assumption of office is in connection with an
     actual or threatened election contest relating to the election of the
     directors of the Company (as such terms are used in Rule 14a-11 under the
     1934 Act); or

               3.   approval by the stockholders of the Company of (a) a merger,
     reorganization or consolidation with respect to which the individuals and
     entities who were the respective beneficial owners of the Common Stock and
     Voting Power of the Company immediately before such merger, reorganization,
     or consolidation do not, immediately after such merger, reorganization or
     consolidation, beneficially own, directly or indirectly, more than 60% of,
     respectively, the then outstanding common shares and the Voting Power of
     the corporation resulting from such merger, reorganization or
     consolidation, (b) a liquidation or dissolution of the Company or (c) the
     sale or other disposition of all or substantially all of the assets of the
     Company.

     For purpose of the foregoing definition, "beneficially ownership,"
"beneficially owned" and "beneficial ownership" and "person" mean such terms as
used in SEC rules 13d-5(b) under the 1934 Act, and "group" means two or more
persons acting together in such a way to be deemed a person for purposes of
Section 13(d) of the 1934 Act.

     IV.  Termination Prior to Expiration Date and Consequences Thereof
          -------------------------------------------------------------

     This Section IV sets forth the circumstances in which the Employment Period
shall terminate on a date ("Effective Termination Date") prior to the Expiration
Date (as defined in Section II hereof).

          A.   Death or Disability
               -------------------

          The Employment Period shall terminate upon Executive's date of death
or the date Executive is given written notice that he has been determined to be
disabled by the Company.  For purposes of this Agreement, Executive shall be
deemed to be "disabled" if Executive, as a result of illness or incapacity, (1)
shall be unable to perform substantially his required duties for a period of
three (3) consecutive months or for any aggregate period of three (3) months in
any six (6) month period.  In the event of a dispute as to whether Executive is
disabled, the Company may refer Executive to a licensed practicing physician of
the Company's choice, and Executive agrees to submit to such tests and
examination as such physician shall deem appropriate.

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          B.   Termination by Company For Cause
               --------------------------------

          The Employment Period shall terminate on the date the Company provides
Executive with written notice that he is being terminated for Cause.

          For the purposes of this Agreement, the term "Cause" shall mean:

               (i)   the willful or grossly negligent failure by Executive to
     perform his duties and obligations hereunder in any material respect, other
     than any such failure resulting from his disability;

               (ii)  Executive's conviction of a felony crime; or

               (iii) Executive's violation of the law in connection with his
     employment which is materially and demonstrably injurious to the operations
     or reputation of the Company.

          Notwithstanding the foregoing, Cause shall not exist under clause (i)
above until notice of such failure has been given to Executive by the Company
and thirty (30) days has lapsed following such notice without Executive curing
such failure; provided, however, that such notice and lapse of time shall not be
required with respect to any event or circumstance which is the same or
substantially the same as an event or circumstance with respect to which notice
and an opportunity to cure has been given within the previous six (6) months.

          C.   Termination by Company Without Cause
               ------------------------------------

          The Employment Period shall terminate thirty (30) days following the
date the Company provides Executive with written notice that the Company is
exercising its rights under this Section IV(C) to terminate the Employment
Period without Cause.  If the Company elects not to renew this Agreement for any
renewal period pursuant to Section II hereof, such election shall not constitute
a termination of the Employment Period without Cause.

          D.   Termination by Executive for Good Reason
               ----------------------------------------

          The Employment Period shall terminate thirty (30) days following the
date Executive provides the Company with written notice that Executive is
exercising his right under this Section IV (D) to terminate the Employment
Period for good reason.  For purposes of this Agreement "good reason" shall
mean:

               (i)   a failure of the Company to meet its obligations in any
     material respect under this Agreement which remains uncured after Executive
     has provided written notice of such failure and one (1) week has elapsed
     following such notice without the Company curing such failure; provided,
     however, that such notice and lapse of time shall not be required with
     respect to any event or circumstance which is the same or substantially the

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<PAGE>

     same as an event or circumstance with respect to which notice and an
     opportunity to cure has been given within the previous six (6) months;

               (ii)  a substantial adverse alteration in the nature or status of
     Executive's responsibilities with the Company;

               (iii) a request of Executive to relocate his residence greater
     than 100 miles from his then current residence without his consent; and an
     exercise by him of his right under this Section IV (D) within sixty (60)
     days after such request; or

               (iv)  termination of Executive's employment by the Company or
     Executive for any reason other than Cause during the one (1) year period
     immediately following a Change in Control shall be deemed a termination for
     good reason; provided, however, that if Executive dies after a Change in
     Control by less than one year thereafter, Executive will be deemed to have
     terminated employment pursuant to this clause (iv) immediately prior to his
     death.

          E.   Termination by Executive Without Good Reason
               --------------------------------------------

          The Employment Period shall end thirty (30) days following the date
Executive provides the Company with written notice that Executive is exercising
his right under this Section IV (E) to terminate the Employment Period without
good reason.  If Executive elects not to renew this Agreement for any renewal
period pursuant to Section II hereof, such election shall not constitute a
termination of the Employment Period without good reason.

          F.   Consequence of Termination Under this Section IV
               ------------------------------------------------

          The table at the end of this Section IV (F) sets out the consequences
of a termination of the Employment Period on the Effective Termination Date,
i.e., a date other than the Expiration Date as defined in Section II.  Such
----
consequences are as follows:

               1.   Termination Without Cause or for Good Reason. If the Company
                    --------------------------------------------
     exercises its right to terminate the Employment Period without Cause or if
     Executive exercises his right to terminate the Employment Period for good
     reason, the Company shall be obligated to pay Executive (or provide
     Executive with) the following benefits: (a) any salary that was accrued but
     not yet paid as of the Effective Termination Date; (b) as severance pay, an
     amount, payable in twelve (12) equal monthly installments commencing on the
     Effective Termination Date, equal to Executive's annual Base Salary in
     effect immediately prior to the Effective Termination Date for the greater
     of twelve (12) months or the remainder of the then current Employment
     Period (such amount to be payable regardless of whether (x) Executive
     obtains other employment and is compensated therefor, (y) the Effective
     Termination Date is less than twelve (12) months prior to the Expiration
     Date or (z) Executive dies prior to the first anniversary of the Effective
     Termination Date,

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<PAGE>

     but only for so long as Executive is not in violation of Section V hereof);
     (c) the unpaid Performance Bonus with respect to the calendar year
     preceding the Effective Termination Date (such Performance Bonus to be
     determined in the manner it would have been determined and payable at the
     time it would have been payable under Section III(C) had there been no
     termination of the Employment Period); (d) the Performance Bonus for the
     calendar year in which the Effective Termination Date occurs that would
     have been payable under Section III(C) had there been no termination of the
     Employment Period (such Performance Bonus to be determined in the manner it
     would have been determined and payable at the time it would have been
     payable under Section III(C) had there been no termination of the
     Employment Period); (e) the benefits set forth in Section III (B) for a
     period of twelve (12) months after such termination and the Company shall
     comply with any and all state and federal laws and regulations applying to
     such benefits; (f) any Options granted to Executive pursuant to Section III
     (E) that have not vested as of the date of such termination shall vest in
     full and; (g) the loans made to Executive by the Company pursuant to
     Section III (G) shall be forgiven and canceled; and (h) outplacement
     services, at the expense of the Company, from a provider reasonably
     selected by Executive. Notwithstanding the foregoing, in the event that
     this Agreement terminates by reason of Section IV(D)(iv), then Executive
     shall receive, in addition to the compensation and benefits described in
     clauses (a), (e), (f), (g) and (h) above, the following benefits:

               (i)   A cash bonus for the year of termination, calculated as a
     pro rata portion of the greater of (A) Executive's target annual bonus for
     the year of termination or (B) the amount determined and paid in accordance
     with the terms of the then current annual bonus plan applicable to
     Executive,

               (ii)  Payment in a lump sum of an amount equal to 2.99 times
     Executive's base salary as in effect pursuant to Section III A above prior
     to the termination;

               (iii) Payment in a lump sum of an amount equal to 2.99 times
     Executive's target annual bonus pursuant to Section III C above for the
     fiscal year of termination; and

               (iv)  Continuation, for a period of two (2) years after the date
     of termination, of medical and dental benefits, life insurance and
     executive physical examinations at least equal to those which would have
     been provided if Executive's employment had continued for that time, but
     such benefits under this clause (d) may be discontinued earlier to the
     extent that Executive becomes entitled to comparable benefits from a
     subsequent employer.

               2.    Termination With Cause or Without Good Reason.  If the
                     ---------------------------------------------
     Company exercises its right to terminate the Employment Period with Cause
     or if Executive exercises his right to terminate the Employment Period
     without good reason, the Company shall be obligated to pay Executive (a)
     any salary that was accrued but not yet paid as of the Effective
     Termination Date; and (b) the unpaid Performance Bonus with respect to the
     calendar year preceding the Effective Termination Date (such Performance
     Bonus to be determined in the

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     manner it would have been determined and payable at the time it would have
     been payable under Section III(C) had there been no termination of the
     Employment Period).

               3.   Termination Upon Death or Disability.  If the Employment
                    ------------------------------------
     Period is terminated because of the death or disability of Executive, the
     Company shall be obligated to pay Executive or, if applicable, Executive's
     estate (a) any salary that was accrued but not yet paid as of the Effective
     Termination Date; (b) the unpaid Performance Bonus with respect to the
     calendar year preceding the Effective Termination Date (such Performance
     Bonus, if any, to be determined in the manner it would have been determined
     and payable at the time it would have been payable under Section III(C) had
     there been no termination of the Employment Period); and (c) the
     Performance Bonus for the calendar year in which the Effective Termination
     Date occurs that would have been payable under Section III(C) had there
     been no termination of the Employment Period (such Performance Bonus to be
     determined in the manner it would have been determined and payable at the
     time it would have been payable under Section III(C) had there been no
     termination of the Employment Period).

<TABLE>
<CAPTION>
                   Table Setting Out Consequences of a Termination of Employment
                   -------------------------------------------------------------
                              Period on the Effective Termination Date
                              ----------------------------------------

Paragraph                         Salary                     Severance       Benefits      Options
Reference                        Ceases?        Bonus?         Paid?        Continue?       Vest?
---------                        -------        ------         -----        ---------       -----
<S>                              <C>          <C>            <C>           <C>             <C>
(A)  Death or Disability           Yes        Full Bonus         No        No on death        No
                                                                              Yes on
                                                                            disability

(B)  Company terminates for        Yes         No Bonus          No            Yes            No
     Cause

(C)  Company terminates            Yes        Full Bonus        Yes            Yes           Yes
     without Cause

(D)  Executive terminates for      Yes        Full Bonus        Yes            Yes           Yes
     good reason

(E)  Executive terminates          Yes        Prior year         No            Yes            No
     without good reason                         only
</TABLE>

     Notwithstanding anything contained herein to the contrary, the foregoing
table is subject to the foregoing provisions of this Section IV (F).

     V.   Noncompetition and Confidentiality
          ----------------------------------

          A.   For purposes of this Agreement, the term "Direct Competitor"
shall mean any person or entity engaged in the business of marketing or
providing within the continental United States prescription products or services
or pharmacy benefit management products or services, including, without
limitation, prepackaged prescription products or services, point of care
pharmacy

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dispensing systems, mail service pharmacy products or services, or
pharmaceuticals or pharmaceutical delivery systems.

          B.   During the Employment Period and for a period of one (1) year
after the termination of the Employment Period for any reason, Executive shall
not, (i) directly or indirectly act in concert or conspire with any person
employed by the Company in order to engage in or prepare to engage in or to have
a financial or other interest in any business which is a Direct Competitor; or
(ii) serve as an employee, agent, partner, shareholder, director or consultant
for, or in any other capacity participate, engage or have a financial or other
interest in any business which is a Direct Competitor (provided, however that
notwithstanding anything to the contrary contained in this Agreement, Executive
may own up to 2% of the outstanding shares of the capital stock of a company
whose securities are registered under Section 12 of the Securities Exchange Act
of 1934).

           C.  The Company has advised Executive and Executive acknowledges that
it is the policy of the Company to maintain as secret and confidential all
Protected Information (as defined below), and that Protected Information has
been and will be developed at substantial cost and effort to the Company.
Executive shall not at any time, directly or indirectly, divulge, furnish or
make accessible to any person, firm, corporation, association or other entity
(otherwise than as may be required in the regular course of Executive's
employment), nor use in any manner, either during the Employment Period or after
the termination, for any reason, of the Employment Period, any Protected
Information, or cause any such information of the Company to enter the public
domain, except as required by law or court order. "Protected Information" means
trade secrets, confidential and proprietary business information of the Company,
and any other information of the Company, including but not limited to, customer
lists (including potential customers), sources of supply, processes, plans,
materials, pricing information, internal memoranda, marketing plans, internal
policies, and products and services which may be developed from time to time by
the Company and its agents or employees, including Executive; provided, however,
that information that is in the public domain (other than as a result of a
breach of this Agreement), approved for release by the Company or lawfully
obtained from third parties who are not bound by a confidentiality agreement
with the Company, is not Protected Information.

          D.   Executive acknowledges and agrees that the restrictions imposed
upon him by this Section V and the purpose for such restrictions are reasonable
and are designed to protect the Protected Information and the continued success
of the Company without unduly restricting Executive's future employment by
others. Furthermore, Executive acknowledges that in view of the Protected
Information of the Company which he has or will acquire or has or will have
access to and the necessity of the restrictions contained in this Section V, any
violation of the provisions of this Section V would cause irreparable injury to
the Company and its successors in interest with respect to the resulting
disruption in their operations. By reason of the foregoing, Executive consents
and agrees that if he violates any of the provisions of this Section V, the
Company and its successors in interest, as the case may be, shall be entitled,
in addition to any other remedies that they may have, including monetary
damages, to an injunction to be issued by a court of competent jurisdiction,
restraining Executive from committing or continuing any violation of this
Section V.

     VI.  Certain Additional Payments by the Company.  The Company agrees that:
          ------------------------------------------

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          A.   Anything in this Agreement to the contrary notwithstanding, in
the event it shall be determined that any payment or distribution by the Company
to or for the benefit of Executive (whether paid or payable or distributed or
distributable pursuant to the terms of this Agreement or otherwise, but
determined without regard to any additional payments required under this Section
VI) (a "Payment") would be subject to the excise tax imposed by Section 4999 of
the Code or if any interest or penalties are incurred by Executive with respect
to such excise tax (such excise tax, together with any such interest and
penalties, being hereinafter collectively referred to as the "Excise Tax"), then
Executive shall be entitled to receive an additional payment (a "Gross-Up
Payment") in an amount such that, after payment by Executive of all taxes
(including any interest or penalties imposed with respect to such taxes),
including, without limitation, any income taxes (and any interest and penalties
imposed with respect thereto) and Excise Tax imposed upon the Gross-Up Payment,
Executive retains an amount of the Gross-Up Payment equal to the Excise Tax
imposed upon the Payment.

          B.   Subject to the provisions of Section VI (C), below, all
determinations required to be made under this Section VI, including whether and
when a Gross-Up Payment is required and the amount of such Gross-Up Payment and
the assumptions to be utilized in arriving at such determination, shall be made
by the accounting firm which is then serving as the auditors for the Company
(the "Accounting Firm"), which shall provide detailed supporting calculations
both to the Company and Executive within fifteen (15) business days of the
receipt of notice from Executive that there has been a Payment, or such earlier
time as is requested by the Company. In the event that the Accounting Firm is
serving as accountant or auditor for the individual, entity or group effecting
the Change in Control, Executive shall appoint another nationally recognized
accounting firm to make the determinations required hereunder (which accounting
firm shall then be referred to as the Accounting Firm hereunder). All fees and
expenses of the Accounting Firm shall be borne solely by the Company. Any Gross-
Up Payment, as determined pursuant to this Section VI, shall be paid by the
Company to Executive within five (5) days of the receipt of the Accounting
Firm's determination. If the Accounting Firm determines that no Excise Tax is
payable by Executive, it shall furnish Executive with a written opinion that
failure to report the Excise Tax on Executive's applicable federal income tax
return would not result in the imposition of a negligence or similar penalty.
Any good faith determination by the Accounting Firm shall be binding upon the
Company and Executive. As a result of the uncertainty in the application of
Section 4999 of the Code at the time of the initial determination by the
Accounting Firm hereunder, it is possible that Gross-Up Payments which will not
have been made by the Company should have been made ("Underpayment"), consistent
with the calculations required to be made hereunder. In the event that the
Company exhausts its remedies pursuant to Section VI (C), below, and Executive
thereafter is required to make a payment of any Excise Tax, the Accounting Firm
shall determine the amount of the Underpayment that has occurred and any such
Underpayment shall be promptly paid by the Company to or for the benefit of
Executive.

          C.   Executive shall notify the Company in writing of any claim by the
Internal Revenue Service that, if successful, would require the payment by the
Company of a Gross-Up Payment. Such notification shall be given as soon as
practicable but no later than fifteen (15) business days after Executive is
informed in writing of such claim and shall apprise the Company

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<PAGE>

of the nature of such claim and the date on which such claim is requested to be
paid. Executive shall not pay such claim prior to the expiration of the thirty
(30) day period following the date on which Executive gives such notice to the
Company (or such shorter period ending on the date that any payment of taxes
with respect to such claim is due). If the Company notifies Executive in writing
prior to the expiration of such period that it desires to contest such claim,
Executive shall:

               (i)   Give the Company any information reasonably requested by
     the Company relating to such claim;

               (ii)  Take such action in connection with contesting such claim
     as the Company shall reasonably request in writing from time to time,
     including, without limitation, accepting legal representation with respect
     to such claim by an attorney reasonably selected by the Company;

               (iii) Cooperate with the Company in good faith in order
     effectively to contest such claim; and

               (iv)  Permit the Company to participate in any proceedings
     relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold Executive harmless, on an after-
tax basis, for any Excise Tax or income tax (including interest and penalties
with respect thereto) imposed as a result of such representation and payment of
costs and expenses.  Without limiting the foregoing provisions of this Section
VI (C), the Company shall control all proceedings taken in connection with such
contest and, at its sole option, may pursue or forego any and all administrative
appeals, proceedings, hearings and conferences with the taxing authority in
respect of such claim and may, at its sole option, either direct Executive to
pay the tax claimed and sue for a refund or contest the claim in any permissible
manner; and Executive agrees to prosecute such contest to a determination before
any administrative tribunal, in a court of initial jurisdiction and in one or
more appellate courts, as the Company shall determine; provided further,
however, that if the Company directs Executive to pay such claim and sue for a
refund, the Company shall advance the amount of such payment to Executive on an
interest-free basis and shall indemnify and hold Executive harmless, on an
after-tax basis, from any Excise Tax or income tax (including interest or
penalties with respect thereto) imposed with respect to such advance or with
respect to any imputed income with respect to such advance; and further provided
that any extension of the statute of limitations relating to payment of taxes
for the taxable year of Executive with respect to which such contested amount is
claimed to be due is limited solely to such contested amount.  Furthermore, the
Company's control of the contest shall be limited to issues with respect to
which a Gross-Up Payment would be payable hereunder and Executive shall be
entitled to settle or contest, as the case may be, any other issue raised by the
Internal Revenue Service or any other taxing authority.

          D.   If, after the receipt by Executive of an amount advanced by the
Company pursuant to Section VI (C) above, Executive becomes entitled to receive
any refund with respect to

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<PAGE>

such claim, Executive shall (subject to the Company's complying with the
requirements of said Section VI (C)) promptly pay to the Company the amount of
such refund (together with any interest paid or credited thereon, after taxes
applicable thereto). If, after the receipt by Executive of an amount advanced by
the Company pursuant to said Section VI (C), a determination is made that
Executive shall not be entitled to any refund with respect to such claim and the
Company does not notify Executive in writing of its intent to contest such
denial of refund prior to the expiration of thirty (30) days after such
determination, then such advance shall be forgiven and shall not be required to
be repaid; and the amount of such advance shall offset, to the extent thereof,
the amount of the Gross-Up Payment required to be paid.

     VII.  No Set-Off or Mitigation.  The Company's obligation to make the
           ------------------------
payments provided for in this Agreement and otherwise to perform its obligations
hereunder shall not be affected by any set-off, counterclaim, recoupment,
defense or other claim, right or action which the Company may have against
Executive or others.  In no event shall Executive be obligated to seek other
employment or take any other action by way of mitigation of the amounts payable
to Executive under any of the provisions of this Agreement and such amounts
shall not be reduced whether or not Executive obtains other employment.

     VIII. Payment of Certain Expenses.  The Company agrees to pay promptly as
           ---------------------------
incurred, to the fullest extent permitted by law, all legal fees and expenses
which Executive may reasonably incur as a result of any contest by the Company,
Executive or others of the validity or enforceability of, or liability under,
any provision of this Agreement (including as a result of any contest initiated
by Executive about the amount of any payment due pursuant to this Agreement),
plus in each case interest on any delayed payment at the applicable federal rate
provided for in Section 7872(f)(2)(A) of the Code; provided, however, that the
Company shall not be obligated to make such payment with respect to any contest
in which the Company prevails over Executive.

     IX.   Indemnification.  To the full extent permitted by law, the Company
           ---------------
shall indemnify Executive (including the advancement of expenses) for any
judgments, fines, amounts paid in settlement and reasonable expenses, including
attorneys' fees, incurred by Executive in connection with the defense of any
lawsuit or other claim to which he is made a party by reason of being an
officer, director or employee of the Company or any of its subsidiaries.

     X.    Miscellaneous
           -------------

           A.  Valid Obligation
               ----------------

           This Agreement has been duly authorized, executed and delivered by
the Company and has been duly executed and delivered by Executive and is a
legal, valid and binding obligation of the Company and of Executive, enforceable
in accordance with its terms.

           B.  No Conflicts
               ------------

                                       12
<PAGE>

          Executive represents and warrants that the performance by him of his
duties hereunder will not violate, conflict with or result in a breach of any
provision of, any agreement to which he is a party.

          C.   Applicable Law
               --------------

          This Agreement shall be construed in accordance with the laws of the
State of Illinois, without reference to Illinois' choice of law statutes or
decisions.

          D.   Severability
               ------------

          The provisions of this Agreement shall be deemed severable, and the
invalidity or unenforceability of any one or more of the provisions hereof shall
not affect the validity or enforceability of any other provision.  In the event
any clause of this Agreement is deemed to be invalid, the parties shall endeavor
to modify that clause in a manner which carries out the intent of the parties in
executing this Agreement.

          E.   No Waiver
               ---------

          The waiver of a breach of any provision of this Agreement by any party
shall not be deemed or held to be a continuing waiver of such breach or a waiver
of any subsequent breach of any provision of this Agreement or as nullifying the
effectiveness of such provision, unless agreed to in writing by the parties.

          F.   Notices
               -------

          All notices hereunder shall be in writing and shall be sent by hand
delivery, overnight courier, or by certified mail, return receipt requested, to
the parties at the addresses set forth below:

                    To the Company:  Allscripts, Inc.
                                     2401 Commerce Drive
                                     Libertyville, Illinois 60048
                                     Attention: Chief Executive Officer

                    with a copy to:  Gardner, Carton & Douglas
                                     321 North Clark Street
                                     Chicago, Illinois 60610
                                     Attention: Joseph H. Greenberg

                    to Executive:    Lee A. Shapiro
                                     2211 Schiller
                                     Wilmette, Illinois 60091

                                       13
<PAGE>

                      with a copy to:   Vedder Price
                                        222 North LaSalle
                                        Chicago, IL 60601
                                        Attention: Michael Nemeroff

          G.   Assignment of Agreement
               -----------------------

          This Agreement shall inure to the benefit of Executive and the
Company, their respective successors and assignees and Executive's heirs and
personal representatives.  Neither party may assign any rights or obligations
hereunder to any person or entity without the prior written consent of the other
party.  This Agreement shall be personal to Executive for all purposes.

          H.   Entire Agreement
               ----------------

          Except as otherwise provided herein, this Agreement contains the
entire understanding between the parties, and there are no other agreements or
understandings between the parties with respect to Executive's employment by the
Company and his obligations thereto.  Executive acknowledges that he is not
relying upon any representations or warranties concerning his employment by the
Company except as expressly set forth herein.  No alteration or modification
hereof shall be valid except by a subsequent written instrument executed by the
parties hereto.

          I.   Dispute Resolution and Arbitration
               ----------------------------------

          The following procedures shall be used in the resolution of disputes:

               1.   Dispute.  In the event of any dispute or disagreement
                    -------
     between the parties under this Agreement, the disputing parties shall set
     forth their respective positions and disagreements in writing, formally,
     and give them, together with written notice of the same, to each other, to
     the effect that such dispute exists. The parties will then make a good
     faith effort to resolve the dispute or disagreement. If the dispute is not
     resolved at the expiration of fifteen (15) days from the time a party
     receives such notice and statement from the other party, the entire matter
     shall then be submitted to arbitration as set forth in the paragraph
     immediately herein below.

               2.   Arbitration.  If the dispute or disagreement between the
                    -----------
     parties has not been resolved in accordance with the provisions of sub-
     paragraph (a) above, then any such controversy or claim arising out of or
     relating to this Agreement, or the breach thereof, shall be settled by
     arbitration to be held in Chicago, Illinois, in accordance with the rules
     of the American Arbitration Association then in effect. Any decision
     rendered herein shall be final and binding on each of the parties and
     judgment may be entered thereon in the appropriate

                                       14
<PAGE>

     state or federal court. The arbitrators shall be bound to strict
     interpretation and observation of the terms of this Agreement. The Company
     shall pay the costs of arbitration.

                           [Signature Page Follows]

                                       15
<PAGE>

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

                                             ALLSCRIPTS, INC.

                                             By: /s/  Glen E. Tullman
                                                -----------------------------
                                             Name: Glen E. Tullman
                                                   --------------------------
                                             Title: CEO
                                                    -------------------------

                                             /s/  Lee A. Shapiro
                                             --------------------------------
                                                  Lee A. Shapiro

                                       16<PAGE>

                    AMENDED AND RESTATED EMPLOYMENT AGREEMENT
                    -----------------------------------------

         AGREEMENT, dated June 5, 2000 and effective as of January 1, 2000 (the
"Effective Date") by and among Heidrick & Struggles, Inc., a Delaware
corporation (together with its successors and assigns permitted under this
Agreement, the "Company"), Heidrick & Struggles International, Inc., a Delaware
corporation (together with its successors and assigns permitted under this
Agreement, the "Parent"), and Mr. Patrick S. Pittard (the "Executive").

                              W I T N E S S E T H :
                              - - - - - - - - - -

         WHEREAS, the Company desires to continue to employ the Executive and
the Executive desires to continue to be employed by the Company;

         NOW, THEREFORE, in consideration of the premises and mutual covenants
contained herein and for other good and valuable consideration, the receipt of
which is mutually acknowledged, the Parent, the Company and the Executive
(individually a "Party" and together the "Parties") hereby amend and restate in
its entirety the February 26, 1999 employment agreement between the Executive
and the Company and agree as follows:

         1.       Definitions.
                  -----------

                  (a)      "Affiliate" of a person or other entity shall mean a
person or other entity that directly or indirectly controls, is controlled by,
or is under common control with the person or other entity specified.

                  (b)      "Base Salary" shall mean the salary provided for in
Section 4 below or any increased salary granted to the Executive pursuant to
Section 4.

                  (c)      "Board" shall mean the Board of Directors of the
Parent.

                  (d)      "Cause" shall mean:

                           (i)      the embezzlement or misappropriation of
funds or property of the Company or its Affiliates by the Executive, the
conviction of, or the entrance of a plea of guilty or nolo contendere by, the
Executive to a felony which has the potential to have a negative impact upon the
company's reputation or otherwise bring the Company, any of its Affiliates, or
the CEO into disrepute, or the termination of the Executive's employment with
the Company pursuant to the Company's harassment policy; or

                           (ii)     gross neglect or willful misconduct by the
Executive in carrying out his duties under this Agreement, resulting, in either
case, in material economic harm to the Company or its Affiliates; or
<PAGE>

                                                                               2

                           (iii)    breach by the Executive of the provisions of
Sections 12, 13 or 14 of this Agreement.

                  For purposes of this definition, no act, or failure to act, on
the Executive's part shall be considered "willful" unless done, or omitted to be
done, by him not in good faith and without reasonable belief that his action or
omission was in the best interests of the Company or its Affiliates.

                  (e)      A "Change in Control" shall mean the occurrence of
any of the following events:

                           (i)      any Person (other than the Parent or its
Affiliates, any trustee or other fiduciary holding securities under an employee
benefit plan of the Company or any of its Affiliates, or any company owned,
directly or indirectly, by the stockholders of the Parent in substantially the
same proportions as their ownership of stock of the Parent), becomes the
Beneficial Owner, directly or indirectly, of securities of the Parent
representing 20 percent or more of the combined voting power of the Parent's
then-outstanding securities;

                           (ii)     during any period of 24 months, individuals
who, at the beginning of such period, constitute the Board, and any new director
(other than (A) a director nominated by a Person who has entered into an
agreement with the Parent to effect a transaction described in subsections
(e)(i), (iii) or (iv), (B) a director nominated by any Person (including the
Parent) who publicly announces an intention to take or to consider taking
actions (including, but not limited to, an actual or threatened proxy contest)
which, if consummated, would constitute a Change in Control, or (C) a director
nominated by any Person who is the Beneficial Owner, directly or indirectly, of
securities of the Parent representing 10 percent or more of the combined voting
power of the Parent's securities) whose election by the Board or nomination for
election by the Parent's stockholders was approved in advance by a vote of at
least two-thirds of the directors then still in office who either were directors
at the beginning of the period or whose election or nomination for election was
previously so approved, cease for any reason to constitute at least a majority
thereof;

                           (iii)    the stockholders of the Parent approve any
transaction or series of transactions under which the Parent is merged or
consolidated with any other company, other than a merger or consolidation (A)
which would result in the voting securities of the Parent outstanding
immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving entity
or its parent corporation) more than 66-2/3 percent of the combined voting power
of the voting securities of the Parent or such surviving entity or its parent
corporation outstanding immediately after such merger or consolidation, and (B)
after which no Person holds 20 percent or more of the combined voting power of
the then-outstanding securities of the Parent or such surviving entity or its
parent corporation; or

                           (iv)     the stockholders of the Parent approve a
plan of complete liquidation of the Parent or an agreement for the sale or
disposition by the Parent of all or substantially all of the assets of the
Parent.
<PAGE>

                                                                               3

For purposes of this Change in Control definition, "Beneficial Owner" has the
meaning contained in Rule 13d-3 under the Securities Exchange Act of 1934 (the
"Act") and "Person" has the meaning contained in Section 3 of the Act or as such
term is used for purposes of Section 13(d) or 14(d) of the Act (or any successor
section thereto).

         (f)      "COBRA" shall mean the Consolidated Omnibus Budget
Reconciliation Act of 1986 and the regulations promulgated thereunder, as
amended from time to time.

         (g)      "Common Stock" shall mean the common stock, $0.01 par value,
of the Parent.

         (h)      "Constructive Termination without Cause" shall mean
termination by the Executive of his employment at his initiative within 30 days
following the occurrence of any of the following events without his consent:

                  (i)      a reduction in the Executive's then current Base
Salary or target bonus opportunity;

                  (ii)     a reduction in the aggregate value of the benefits
provided to the Executive under the Company's medical, health, accident,
disability, life insurance, thrift and retirement plans, other than any
reduction that occurs as a result of a modification or termination of such plans
and programs which affects all participants in such plans or programs;

                  (iii)    the removal of the Executive from any of the
positions described in Section 3(a) below;

                  (iv)     a material diminution in the Executive's duties as
described in Section 3(a) below;

                  (v)      a change in the reporting structure so that the
Executive reports to someone other than the Board;

                  (vi)     any purported termination of the Executive's
employment that is not effected for Cause or Disability; or

                  (vii)    the failure of the Parent to obtain the assumption in
writing of its obligation to perform this Agreement by any successor to all or
substantially all of the assets of the Parent within 15 days after a merger,
consolidation, sale or similar transaction.

Following written notice from the Executive of any of the events described
above, the Company or the Parent, as applicable, shall have 30 calendar days in
which to cure. If the Company or the Parent, as the case may be, fails to cure,
the Executive's termination shall become effective on the 31st calendar day
following the written notice.

During the CEO Period, as described in Section 3(a) below, all subparagraphs (i)
through (vii) are applicable. During the Leave of Absence Period, as described
in Section 3(b) below, only
<PAGE>

                                                                               4

subparagraphs (i), (ii) and (vii) are applicable and during the Return to
Employment Period, as described in Section 3(c) below, all subparagraphs except
(iii), (iv) and (v) are applicable.

         (i)      "Disability" shall mean the total and permanent disability of
the Executive as defined or described in the Company's long-term disability
benefit plan applicable to senior level executives as in effect at the time the
Executive's disability is incurred, or, if no such plan is in effect at the time
of the Executive's disability, then "Disability" shall mean the Executive's
inability, due to physical or mental incapacity, to substantially perform his
duties and responsibilities under this Agreement as determined by a medical
doctor selected by the Company and the Executive. If the Parties cannot agree on
a medical doctor, each Party shall select a medical doctor and the two doctors
shall select a third who shall be the approved medical doctor for this purpose.

         (j)      "Effective Period" shall mean the 24-month period following
any Change in Control.

         (k)      "Fair Market Value" shall mean, as of any date, the lesser of
the closing sales price or the average of the high and low prices of the Parent
Common Stock as reported on the New York Stock Exchange or any other stock
exchange on which the Parent Common Stock is traded on the date of grant, or, in
the event there is no public market for the Parent Common Stock, the fair market
value as determined, in good faith, by the Board or the Compensation Committee
of the Board ("Committee") in its sole discretion.

         (l)      "Paid Bonus" shall mean

                  (i)      for any calendar year ending on or after December 31,
2000, the CEO Bonus paid for that calendar year,

                  (ii)     for the calendar year ending on December 31, 1999,
80% of the annual bonus paid to the Executive for that year,

                  (iii)    for the calendar year ending on December 31, 1998,
the annual bonus paid to the Executive for the period ending September 30, 1998,
and

                  (iv)     for the calendar year ending on December 31, 1997,
the annual bonus paid to the Executive for the period ending September 30, 1997.

         (m)      "Pro Rata" shall mean a fraction, the numerator of which is
the number of days that the Executive was employed in the applicable performance
period (a calendar year in the case of an annual bonus and a performance cycle
in the case of an award under the Long-Term Incentive Plan) and the denominator
of which shall be the number of days in the applicable performance period.

         (n)      "Term of Employment" shall mean the period specified in
Section 2 below.
<PAGE>

                                                                               5

         2.       Term of Employment. The Term of Employment shall begin on the
Effective Date, and shall extend until the fifth anniversary of the Effective
Date. Notwithstanding the foregoing, the Term of Employment may be earlier
terminated by either Party in accordance with the provisions of Section 11.

         3.       Position, Duties and Responsibilities.

                  (a)      The CEO Period. Commencing on the Effective Date and
continuing until December 31, 2001 (the "CEO Period"), the Executive shall be
employed as the Chief Executive Officer of the Parent and the Company and be
responsible for the general management of the affairs of the Parent, the
Company, and their Affiliates. The Executive, in carrying out his duties under
this Agreement, shall report to the Board.

                  (b)      The Leave of Absence Period. At the expiration of the
CEO Period, at his option and with the consent of the Board, the Executive may
have a paid leave of absence of up to 12 months (the "Leave of Absence Period").
The Board's consent may not be unreasonably withheld and shall be given provided
that the Parent, the Company and their Affiliates are doing well and there is no
pressing business reason to postpone or shorten the Leave of Absence Period.
During the Leave of Absence Period, the Executive shall receive his then current
monthly Base Salary for each month of the Leave of Absence Period (the "Leave of
Absence Compensation"). During the Executive's Leave of Absence Period, it is
the expectation and desire of the Parent and the Company that the Executive
continue to maintain business development related activities so that when he
returns to employment at the Company to continue his executive search practice
his business contacts and relationships will have been retained. The Company
will reimburse him (upon receipt of the customary expense report) for his
reasonable business development related expenses consistent with his past
activities, and will also continue to reimburse him during this period for any
company car expenses and club dues and expenses that were paid by the Company
prior to his leave of absence.

                  (c)      The Return to Employment Period. Following his Leave
of Absence Period, the Executive may, at his option, return to the Company as a
search professional. For the 24-month period following his return to the firm
(the "Return to Employment Period"), his total compensation (base and bonus)(the
"Return to Employment Compensation") shall be guaranteed to be not less than
$1,000,000 for the first 12 months and $750,000 for the second 12 months, and
thereafter his base salary shall be not less than $562,500 per year during his
employment with the Company.

                  (d)      Outside Interests. Nothing herein shall preclude the
Executive from (i) serving on the boards of directors of a reasonable number of
other corporations with the concurrence of the Board (which approval shall not
be unreasonably withheld), (ii) serving on the boards of a reasonable number of
trade associations and/or charitable organizations, (iii) engaging in charitable
activities and community affairs, and (iv) managing his personal investments and
affairs, provided that such activities do not conflict or materially interfere
with the effective discharge of his duties and responsibilities under Sections
3(a) or 3(c) above.
<PAGE>

                                                                               6

         4.       Base Salary. The Executive shall be paid an annualized Base
Salary for the CEO Period, payable in accordance with the regular payroll
practices of the Company, of $700,000. The Base Salary shall be reviewed for
increase for the year 2001 in the discretion of the Board.

         5.       Annual Bonus. For the years 2000 and 2001, the Executive shall
have the opportunity to receive a performance-based bonus, determined in
accordance with the CEO Incentive Plan ( the "CEO Plan") attached hereto as
Exhibit A and incorporated herein by reference. Upon at least 15 days' prior
notice to the Company's Chief Financial Officer, the Executive may request an
advance of up to $1,000,000 against any annual bonus earned under the CEO Plan
for the calendar year 2000; provided, however, that if (a) the Executive and/or
the Company and its Affiliates fail to achieve the performance goals established
by the CEO Plan, then not later than thirty (30) days following the date (the
"Determination Date") on which the Committee determines achievement of the CEO
Plan 2000 performance goals by the Executive and/or the Company and its
Affiliates in accordance with the terms of the CEO Plan, the Executive shall
repay to the Company the amount by which such advance exceeds the bonus earned
for year 2000 under the terms of the CEO Plan, and (b) the Executive's
employment with the Company is terminated for any reason prior to the
Determination Date, then on the effective date of the termination of the
Executive's employment with the Company, the Company shall deduct such advance
from any amounts payable to the Executive under the provisions of Section 11 of
this Agreement.

         6.       Stock Option Grant. The Parent shall grant to the Executive an
option to purchase 100,000 shares of Parent Common Stock at the Fair Market
Value of the Parent Common Stock on the date of grant. Such option shall be
granted pursuant and subject to the terms and conditions of the 1998 Heidrick
and Struggles Global Share Program I within 30 days of the date of execution of
this Agreement by both Parties, and shall vest in increments of 25% a year over
the four year period following the date of grant.

         7.       Employee Benefit Programs. During the Term of Employment, the
Executive shall be entitled to participate in any employee pension and welfare
benefit plans and programs made available to the Company's senior level
executives or to its employees generally, to the extent permitted under the
terms of such plans and programs and as such plans or programs may be in effect
from time to time, including, without limitation, pension, profit sharing,
savings and other retirement plans or programs, 401(k), medical, dental,
hospitalization, short-term and long-term disability and life insurance plans,
accidental death and dismemberment protection, travel accident insurance, and
any other employee benefit plans or programs that may be sponsored by the
Company from time to time. In addition, the Company shall use its best efforts
to provide the Executive with a minimum of $4 million term life insurance
coverage during the Term of Employment, subject to the ability of the Parent or
the Company to obtain such term life insurance at standard insurance rates. The
Executive shall be entitled to five weeks paid vacation per year of employment,
which shall accrue and otherwise be subject to the Company's vacation policy for
senior executives. Following the Term of Employment, the Executive shall be
entitled to participate as a retiree (at his own expense) in the group health
insurance plans of the Company as provided under COBRA.

         8.       Supplemental Pension. The Executive shall be provided with a
Supplemental Pension commencing at age 60. The Supplemental Pension shall be an
annuity for the life of the
<PAGE>

                                                                               7

Executive with annual payments equal to the greater of (a) an amount equal to
50% of the average cash compensation earned by the Executive in respect of his
final three years as Chief Executive Officer of the Parent and the Company or
(b) $1 million. The standard form of benefit shall be a single life annuity for
the life of the Executive; however, prior to the commencement of the payment of
the Supplemental Pension hereunder, the Executive may elect to receive his
Supplemental Pension in any of the following alternative forms: (i) a 100% joint
and survivor annuity for his life and the life of his then spouse, or (ii) a 50%
joint and survivor annuity for his life and the life of his then spouse. In the
event that the Executive elects one of these alternative forms of payment, each
payment shall be actuarially reduced to compensate for the election of the
spousal benefit. The amount of the reduced payment shall be determined as of the
date of the commencement of the payment of such benefit, using the 1983 US GATT
(unisex) mortality table and an interest rate equal to the average yield of a
30-year treasury security for the month prior to the month in which the
Supplemental Pension payments commence, or in the event a 30-year treasury
security is unavailable at such time, then the next longest long-term U.S.
treasury security available. The Supplemental Pension benefit form elected by
the Executive shall be paid in monthly installments and shall commence on the
first day of the first month following the later to occur of (c) the Executive's
60th birthday, and (d) the Executive's termination of employment with the
Company. With the approval of the Committee, the Executive, upon termination of
employment, may elect to commence receipt of payment of the Supplemental Pension
benefit prior to his 60th birthday. In the event that the Executive elects to
commence receiving his Supplemental Pension benefits prior to age 60 and the
Committee approves such election, the monthly payments made to the Executive and
his spouse, if applicable, shall be reduced by 5% for each year by which the
Supplemental Pension payments commence prior to the date of the Executive's 60th
birthday. The Executive's entitlement to the Supplemental Pension shall vest on
the earliest to occur of (e) December 31, 2001, provided that the Executive is
employed by the Company on that date, (f) the Executive's termination of
employment by the Company without Cause, (g) the Executive's Constructive
Termination without Cause, or (h) the Executive's termination of employment on
account of Disability.

In the event that the Executive dies after termination of employment but prior
to the commencement of the receipt of payments of the Supplemental Pension
benefit, and is vested in the Supplemental Pension benefit, the Executive's
surviving spouse shall be entitled immediately to commence receiving monthly
payments for her lifetime which are equal to the amount she would have been
entitled to receive had the Executive terminated employment with the Company on
the day prior to his death, been vested in his Supplemental Pension benefit at
that time, had received any necessary approval with respect to the commencement
of benefits from the Committee, and had elected to receive his Supplemental
Pension benefit immediately in the form of a 100% joint and survivor annuity.

         9.       Reimbursement of Business and Other Expenses during the Term
of Employment. The Executive is authorized to incur reasonable expenses in
carrying out his duties and responsibilities under this Agreement and the
Company shall promptly reimburse him for all reasonable business expenses
incurred in connection with carrying out the business of the Company and its
Affiliates, subject to documentation in accordance with the Company's policy.
The Company shall pay all reasonable legal fees and expenses incurred by the
Executive in connection with the documentation of the Executive's employment
arrangements with the Company, not to exceed $20,000.
<PAGE>

                                                                               8

         10.      Perquisites during the Term of Employment. During the Term of
Employment, the Executive shall receive standard Company executive perquisites,
including, without limitation, the following:

                  (a)      The Executive shall continue to be entitled to
first-class travel and spouse travel (on the same basis) when the Executive
determines there is a business need for such travel.

                  (b)      The Executive shall continue to be provided a luxury
class automobile and to be reimbursed for related expenses.

                  (c)      The Executive shall continue to be provided with dues
and memberships for certain clubs and country clubs, as determined by the Board
in its discretion.

                  (d)      The Company shall reimburse the Executive for
financial planning and tax preparation fees.

                  (e)      The Company shall pay for the Executive to have a
comprehensive annual physical.

                  (f)      In the event that any of the perquisites provided
pursuant to this Section 9 result in tax to the Executive, they shall be
provided on a tax grossed-up basis.

         11.      Termination of Employment.
                  -------------------------

                  (a)      Termination Due to Death during the Term of
Employment. In the event that the Executive's employment is terminated due to
his death, his estate or his beneficiaries, as the case may be, shall be
entitled to the following benefits:

                           (i)      During the CEO Period,

                                    (A)      Base Salary through the date of
                                    termination, to the extent not theretofore
                                    paid;

                                    (B)      a Pro Rata annual incentive award
                                    for the calendar year in which the
                                    Executive's death occurs, based on the
                                    higher of (1) the Paid Bonus for the prior
                                    year or (2) the average of the Paid Bonuses
                                    for the prior three years, payable in a
                                    single installment promptly after his death;
                                    and

                                    (C)      all outstanding options or equity
                                    instruments, whether or not then
                                    exercisable, shall become exercisable and
                                    shall remain exercisable for the remainder
                                    of their originally scheduled terms.

                           (ii)     During the Leave of Absence Period and the
Return to Employment Period, the same benefits as during the CEO Period, except
that Subsections (A)
<PAGE>

                                                                               9

and (B) above shall not be applicable, and the Executive's estate or
beneficiaries shall be entitled to the Leave of Absence Compensation or Return
to Employment Compensation, as applicable on the date of termination, through
the date of termination, to the extent not theretofore paid.

                  (b)      Termination Due to Disability during the Term of
Employment. In the event that the Executive's employment is terminated due to
his Disability, he shall be entitled to the following benefits:

                           (i)      During the CEO Period,

                                    (A)      disability benefits in accordance
                                    with any long-term disability program in
                                    effect for senior executives of the Company
                                    at the time the Executive's Disability is
                                    incurred;

                                    (B)      Base Salary through the date of
                                    termination, to the extent not theretofore
                                    paid;

                                    (C)      a Pro Rata annual incentive award
                                    for the calendar year in which the
                                    Executive's termination occurs, based on the
                                    higher of (1) the Paid Bonus for the prior
                                    year or (2) the average of the Paid Bonuses
                                    for the prior three years, payable in a
                                    single installment promptly after his
                                    termination;

                                    (D)      all outstanding options or equity
                                    instruments, whether or not then
                                    exercisable, shall become exercisable and
                                    shall remain exercisable for the remainder
                                    of their originally scheduled terms;

                                    (E)      immediate vesting of the
                                    Supplemental Pension Benefit, with payments
                                    reduced in accordance with Section 8 of this
                                    Agreement to the extent such benefits
                                    commence prior to age 60; and

                                    (F)      subject to the Executive's
                                    continued compliance with Sections 12, 13
                                    and 14 hereof, continued participation in
                                    such employee welfare benefit plans and
                                    programs made available to the Company's
                                    senior level executives or to its employees
                                    generally until the earlier to occur of (i)
                                    the second anniversary of the Executive's
                                    effective date of termination of employment
                                    or (ii) such time as the Executive is
                                    covered by comparable programs of a
                                    subsequent employer; provided, however, that
                                    in the event the Company is unable to
                                    provide such benefits, the Company shall
                                    make annual payments to the Executive in an
                                    amount such that following the Executive's
                                    payment of applicable taxes thereon, the
                                    Executive retains an amount equal to the
                                    cost of the Executive, net of any cost that
                                    would otherwise be borne by the Executive,
                                    of obtaining benefits equivalent to those in
                                    effect on the date of termination of
                                    employment. Benefits otherwise receivable by
                                    the
<PAGE>

                                                                              10

                                    Executive pursuant to this Section
                                    11(b)(i)(F) shall be reduced to the extent
                                    comparable benefits are actually received
                                    during the two year period following
                                    termination, and any such benefits actually
                                    received by the Executive shall be reported
                                    to the Company.

                           (ii)     During the Leave of Absence Period and the
Return to Employment Period, the same benefits as during the CEO Period, except
that Subsections (B) and (C) above shall not be applicable, and the Executive
shall be entitled to the Leave of Absence Compensation or Return to Employment
Compensation, as applicable on the date of termination, through the date of
termination, to the extent not theretofore paid.

In no event shall a termination of the Executive's employment for Disability
occur until the Party terminating his employment gives written notice to the
other Party in accordance with Section 25 below.

                  (c)      Termination by the Company for Cause during the Term
of Employment.

                           (i)      A termination for Cause shall not take
effect unless the provisions of this paragraph (i) are complied with. The
Executive shall be given written notice by the Board of the intention to
terminate him for Cause, such notice (A) to state in detail the particular act
or acts or failure or failures to act that constitute the grounds on which the
proposed termination for Cause is based and (B) to be given within six months of
the Board learning of such act or acts or failure or failures to act. The
Executive shall have ten calendar days after the date that such written notice
has been given to the Executive in which to cure such conduct, to the extent
such cure is possible. If he fails to cure such conduct or such cure is not
possible, the Executive shall then be entitled to a hearing before the Board.
Such hearing shall be held within 15 calendar days of such notice to the
Executive, provided he requests such hearing within ten calendar days of the
written notice from the Board of the intention to terminate him for Cause. If,
within five calendar days following such hearing, the Executive is furnished
written notice by the Board confirming that, in its judgment, grounds for Cause
on the basis of the original notice exist, he shall thereupon be terminated for
Cause.

                           (ii)     In the event the Company terminates the
Executive's employment for Cause:

                                    (A)      he shall be entitled to Base
                                    Salary, Leave of Absence Compensation or
                                    Return to Employment Compensation, as
                                    applicable on the date of termination,
                                    through the date of the termination to the
                                    extent not theretofore paid; and

                                    (B)      all outstanding options shall be
                                    forfeited; and

                                    (C)      the Supplemental Pension Benefit
                                    shall be forfeited if such termination
                                    occurs during the CEO Period.

                  (d)      Termination without Cause or Constructive Termination
                           without Cause during the Term of Employment. In the
event the Executive's employment is terminated by the
<PAGE>

                                                                              11

Company without Cause, other than due to Disability or death, or in the event
there is a Constructive Termination without Cause, the Executive shall be
entitled to the following benefits:

                           (i)      During the CEO Period,

                                    (A)      Base Salary through the date of
                                    termination to the extent not theretofore
                                    paid;

                                    (B)      a lump sum amount equal to the
                                    product of two (2) times the Executive's
                                    Base Salary in effect on the date of
                                    termination (or, if the Executive's Base
                                    Salary has been reduced in breach of this
                                    Agreement, the Executive's Base Salary
                                    before such reduction), payable promptly
                                    following the date of termination;

                                    (C)      a lump sum amount equal to two (2)
                                    times the higher of (1) the Paid Bonus for
                                    the prior year or (2) the average of the
                                    Paid Bonuses for the prior three years,
                                    payable promptly following his date of
                                    termination;

                                    (D)      all outstanding options or equity
                                    instruments shall immediately become
                                    exercisable and shall remain exercisable for
                                    the remainder of their originally scheduled
                                    terms;

                                    (E)      immediate vesting of the
                                    Supplemental Pension Benefit, with payments
                                    reduced in accordance with Section 8 of this
                                    Agreement to the extent such benefits
                                    commence prior to age 60; and

                                    (F)      subject to the Executive's
                                    continued compliance with Sections 12, 13
                                    and 14 hereof, continued participation in
                                    such employee welfare benefit plans and
                                    programs made available to the Company's
                                    senior level executives or to its employees
                                    generally until the earlier to occur of (i)
                                    the second anniversary of the Executive's
                                    effective date of termination of employment
                                    or (ii) such time as the Executive is
                                    covered by comparable programs of a
                                    subsequent employer; provided, however, that
                                    in the event the Company is unable to
                                    provide such benefits, the Company shall
                                    make annual payments to the Executive in an
                                    amount such that following the Executive's
                                    payment of applicable taxes thereon, the
                                    Executive retains an amount equal to the
                                    cost of the Executive, net of any cost that
                                    would otherwise be borne by the Executive,
                                    of obtaining benefits equivalent to those in
                                    effect on the date of termination of
                                    employment. Benefits otherwise receivable by
                                    the Executive pursuant to this Section
                                    11(d)(i)(F) shall be reduced to the extent
                                    comparable benefits are actually received
                                    during the two
<PAGE>

                                                                              12

                                    year period following termination, and any
                                    such benefits actually received by the
                                    Executive shall be reported to the Company.

                           (ii)     During the Leave of Absence Period and the
Return to Employment Period,

                                    (A)      the Leave of Absence Compensation
                                    for the number of months remaining of the
                                    Leave of Absence Period as of the date of
                                    termination, to the extent any months remain
                                    of the Leave of Absence Period agreed to
                                    between the Executive and the Company, and
                                    the Return to Employment Compensation for
                                    the remaining Term of Employment,

                                    (B)      the Supplemental Pension Benefit,
                                    reduced in accordance with Section 8 of this
                                    Agreement to the extent such benefits
                                    commence prior to Age 60;

                                    (C)      all outstanding options or equity
                                    instruments shall immediately become
                                    exercisable and shall remain exercisable for
                                    the remainder of their originally scheduled
                                    terms;

                                    (D)      subject to the Executive's
                                    continued compliance with Sections 12, 13
                                    and 14 hereof, continued participation in
                                    such employee welfare benefit plans and
                                    programs made available to the Company's
                                    senior level executives or to its employees
                                    generally until the earlier to occur of (i)
                                    the second anniversary of the Executive's
                                    effective date of termination of employment
                                    or (ii) such time as the Executive is
                                    covered by comparable programs of a
                                    subsequent employer; provided, however, that
                                    in the event the Company is unable to
                                    provide such benefits, the Company shall
                                    make annual payments to the Executive in an
                                    amount such that following the Executive's
                                    payment of applicable taxes thereon, the
                                    Executive retains an amount equal to the
                                    cost of the Executive, net of any cost that
                                    would otherwise be borne by the Executive,
                                    of obtaining benefits equivalent to those in
                                    effect on the date of termination of
                                    employment. Benefits otherwise receivable by
                                    the Executive pursuant to this Section
                                    11(d)(ii)(D) shall be reduced to the extent
                                    comparable benefits are actually received
                                    during the two year period following
                                    termination, and any such benefits actually
                                    received by the Executive shall be reported
                                    to the Company.

         (e)      Voluntary Termination during the Term of Employment. During
the Term of Employment, in the event of a termination of employment by the
Executive on his own initiative, other than a termination due to death or
Disability or a Constructive Termination without Cause, the Executive shall be
entitled to the following benefits:
<PAGE>

                                                                              13

                           (i)      During the CEO Period,

                                    (A)      Base Salary through the date of the
                                    termination; and

                                    (B)      all outstanding options which are
                                    not then exercisable shall be forfeited;
                                    exercisable options shall remain exercisable
                                    until the earlier of the thirtieth day after
                                    the date of termination or the originally
                                    scheduled expiration date of the options
                                    unless the Committee determines otherwise.

                           (ii)     During the Leave of Absence Period:

                                    (A)      the Executive shall be entitled to
                                    retain an amount equal to one-half of all of
                                    the monthly base compensation payments
                                    received by the Executive prior to his
                                    termination during the Leave of Absence
                                    period; the Executive shall repay to the
                                    Company an amount equal to one-half of all
                                    of the monthly base compensation payments
                                    received by the Executive during the Leave
                                    of Absence period;

                                    (B)      the Executive shall be entitled to
                                    receive the Supplemental Pension Benefit,
                                    reduced in accordance with Section 8 of this
                                    Agreement to the extent such benefits
                                    commence prior to Age 60; and

                                    (C)      all outstanding options which are
                                    not then exercisable shall be forfeited; all
                                    exercisable options shall continue to become
                                    exercisable in accordance with their
                                    original schedules.

                           (iii)    During the Return to Employment Period,

                                    (A)      The Executive shall be entitled to
                                    retain an amount equal to one-half of the
                                    total Leave of Absence Compensation; the
                                    Executive shall repay to the Company an
                                    amount equal to one-half of the total Leave
                                    of Absence Compensation multiplied by a
                                    fraction the denominator of which is 24 and
                                    the numerator of which is the number of full
                                    or fractional calendar months remaining
                                    between the effective date of the
                                    Executive's termination of employment and
                                    the end of the Return to Employment Period;

                                    (B)      the Executive shall be entitled to
                                    receive the Supplemental Pension Benefit,
                                    reduced in accordance with Section 8 of this
                                    Agreement to the extent such benefits
                                    commence prior to Age 60; and
<PAGE>

                                                                              14

                                    (C)      all outstanding options which are
                                    not then exercisable shall be forfeited; all
                                    exercisable options shall continue to become
                                    exercisable in accordance with their
                                    original schedules.

A voluntary termination under this Section 11(e) shall be effective 30 calendar
days after prior written notice is received by the Company, unless the Company
elects to make it effective earlier, and shall not constitute a breach of this
Agreement.

Any amounts required to be paid by the Executive to the Company pursuant to
Subsections 11(e)(ii)(A) or 11(e)(iii)(A) above may be paid, at the election of
the Executive at the time of his termination of employment, either

         (a)      in cash in a lump sum, payable on the effective date of the
Executive's termination of employment, or

         (b)      in the form of a reduction in the annual Supplemental Pension
Benefit payment payable pursuant to Section 8 of this Agreement, the amount of
reduced Supplemental Pension Benefit to be determined as of the effective date
of the Executive's termination of employment with the Company, using the 1983 US
GATT (unisex) mortality table and an interest rate equal to the average yield of
a 30-year treasury security for the month prior to the month in which the
Executive's termination occurs, or in the event a 30-year treasury security is
unavailable at such time, then the next longest long-term U.S. treasury security
available.

                  (f)      Consequences to Stock Options of Death Following
Termination of Employment. In the event the Executive dies following termination
of employment at a time when he has entitlements under outstanding stock
options, his estate or other beneficiary shall have the same entitlements as the
Executive had in respect of such stock options.

                  (g)      Consequences of a Change in Control.

                           (i)      If, during the Effective Period following a
Change in Control, the Executive's employment is terminated by the Company
without Cause, other than due to Disability or death, or there is a Constructive
Termination without Cause, the Executive shall receive the benefits provided in
Section 11(d) above, as well as in Section 11(g)(ii) below.

                           (ii)     In the event that any amount or benefit
(collectively, the "Covered Payments") paid or distributed to the Executive by
the Company or any Affiliate incurs an excise tax under Section 4999 of the
Internal Revenue Code of 1986, as amended (the "Code") or any similar tax that
may hereafter be imposed ("Excise Tax"), the Company shall pay to the Executive
at the time specified below, the Tax Reimbursement Payment. The Tax
Reimbursement Payment is defined as an amount which, after imposition of all
income, employment and excise taxes thereon, is equal to the Excise Tax on the
Covered Payments. The determination of whether Covered Payments are subject to
Excise Tax and, if so, the amount of the Tax Reimbursement Payment to be paid to
the Executive shall be made by an independent auditor (the "Auditor") jointly
selected by the Company and the Executive and paid by the Company. The Auditor
shall be a nationally recognized United States public accounting firm which has
not, during the two years preceding the date of its selection, acted in any way
on behalf
<PAGE>

                                                                              15

of the Company. If the Executive and the Company cannot agree on the firm to
serve as the Auditor, then the Executive and the Company shall each select an
accounting firm and those two firms shall jointly select the accounting firm to
serve as the Auditor. The portion of the Tax Reimbursement Payment attributable
to a Covered Payment shall be paid to the Executive by the Company prior to the
date that the corresponding Excise Tax payment is due to be paid by the
Executive (through withholding or otherwise).

                  (h)      Other Termination Benefits. In the case of any of the
foregoing terminations, the Executive or his estate shall also be entitled to:

                           (i)      the balance of any incentive awards due for
performance periods which have been completed, but which have not yet been paid;

                           (ii)     any expense reimbursements due the
Executive; and

                           (iii)    other benefits, if any, in accordance with
applicable plans and programs of the Company, excluding any severance plan or
program or notice of termination policy now or hereinafter in effect at the
Company or any of its Affiliates.

                  (i)      No Mitigation; No Offset. In the event of any
termination of employment under this Section 11, the Executive shall be under no
obligation to seek other employment and, except as provided by Sections 5,
11(b)(i)(F), 11(d)(i)(F), 11(d)(ii)(D), and 11(e) there shall be no offset
against amounts due the Executive under this Agreement on account of any
remuneration attributable to any subsequent employment that he may obtain or on
account of any claim the Company or any Affiliate of the Company might have
against him.

                  (j)      Nature of Payments. Any amounts due under this
Section 11 are in the nature of severance payments considered to be reasonable
by the Company and the Parent and are not in the nature of a penalty.

         12.      Confidential Information. The Executive acknowledges that
certain letter agreement dated September 18, 1997 (the "Confidentiality
Agreement") between the Company and the Executive regarding the protection of
confidential information of the Company and its Affiliates. The terms and
conditions of the Confidentiality Agreement remain in full force and effect and
are incorporated by reference herein. Any breach of the Confidentiality
Agreement by the Executive shall constitute a breach of this Agreement, subject
to the rights and remedies of the Company and its Affiliates as provided by
Section 15 of this Agreement.

         13.      Noncompetition. The Executive agrees that he will not, at any
time during the Term of Employment and for a period of twenty-four months after
any voluntary or involuntary termination of the Executive's employment with the
Company ( together, the "Restricted Period"), directly or indirectly, acting
with others or alone, manage, operate or control, engage or become interested in
as an owner (other than as an owner of less than 5% of the stock of a publicly
owned company), stockholder, partner, director, officer, employee (in an
executive capacity), consultant or otherwise (the "Executive's Employment") in
any business that is a "Competitive Business" with the Company or any of its
Affiliates in any geographic location in which the Company or any of its
Affiliates conducts its business. For purposes of this Section, a
<PAGE>

                                                                              16

business operation shall be considered a "Competitive Business" with the Company
or its Affiliates if such business operation (a) provides services in the
executive search business during the Restrictive Period or (b) provides any
product or service competitive with any product or service provided by the
Company or any of its Affiliates, the sales of which amount to 5% or more of the
total gross revenues of the Company and its Affiliates at the time of the
Executive's Employment.

         14.      Nonsolicitation. For the twenty-four month period following
the Term of Employment, the Executive shall not directly or indirectly solicit
or induce or attempt to solicit or induce any employee, current or future, of
the Company or any of its Affiliates to terminate employment with the Company or
any of its Affiliates for any reason, or hire any individual who was an employee
of the Company or any of its Affiliates within one (1) year of being hired by
the Executive, except for those individuals released or terminated by the
Company or any of its Affiliates, and shall not solicit any client or customer
of the Company or any of its Affiliates as of the date of termination of the
Executive's employment with the Company, for purposes of doing business with any
business or operation which is a "Competitive Business" of the Company or any of
its Affiliates as defined in Section 13 above.

         15.      Rights and Remedies Upon Breach. If the Executive breaches, or
threatens to commit a breach of, any of the provisions contained in Sections
12,13 or 14 of this Agreement (the "Restrictive Covenants"), the Company and its
Affiliates will have the following rights and remedies, each of which rights and
remedies will be independent of the others and severally enforceable, and each
of which is in addition to, and not in lieu of, any other rights and remedies
available to the Company and its Affiliates under law or in equity:

                  (a)      Injunctive Relief and Specific Performance. The right
and remedy to have the Restrictive Covenants specifically enforced by any court
of competent jurisdiction, it being agreed that any breach or threatened breach
of the Restrictive Covenants would cause irreparable injury to the Company and
its Affiliates and that monetary damages would not provide an adequate remedy.

                  (b)      Accounting. The right and remedy to require the
Executive to account for and pay over to the Company all compensation, profits,
monies, accruals, increments or other benefits derived or received by the
Executive as the result of any action constituting a breach of the Restrictive
Covenants.

                  (c)      Cessation of Severance Benefits. The right and remedy
to cease any further severance, benefit or other compensation payments under
this Agreement to the Executive or his estate or beneficiary from and after the
commencement of such breach by the Executive, including without limitation the
Supplemental Pension, regardless of whether the Restrictive Covenants are found
by a court of competent jurisdiction to be enforceable or not.

The Executive hereby acknowledges and agrees that the Restrictive Covenants are
reasonable and valid in duration, geographic scope and in all other respects. If
any court determines that any of the Restrictive Covenants, or any part thereof,
is invalid or unenforceable, the remainder of the Restrictive Covenants will not
thereby be affected and will be given full effect without regard to the invalid
portions. In the event the Executive breaches the Restrictive Covenants during
the
<PAGE>

                                                                              17

periods of time in which the Restrictive Covenants are enforceable, then, in
such event, such violation shall toll the running of such time period from the
date of such violation until such violation shall cease.

         16.      Arbitration of Disputes and Reimbursement of Legal Costs.
Except as otherwise provided in Section 16 hereof, the Parties agree that any
dispute, claim or controversy based on common law, equity, or any federal, state
or local statute, ordinance, or regulation (other than workers' compensation
claims) arising out of or relating in any way to the Executive's employment, the
terms, benefits, and conditions of employment, or concerning this Agreement or
its termination and any resulting termination of employment, including whether
such dispute is arbitrable, shall be settled by arbitration. This agreement to
arbitrate includes but is not limited to all claims for any form of illegal
discrimination, improper or unfair treatment or dismissal, and all tort claims.
The Executive shall still have a right to file a discrimination charge with a
federal or state agency, but the final resolution of any discrimination claim
shall be submitted to arbitration instead of a court or jury. Subject to the
following provisions, the arbitration shall be conducted in accordance with the
rules of the American Arbitration Association (the "Association") then in effect
in Chicago, Illinois by three arbitrators. One of the arbitrators shall be
appointed by the Company, one shall be appointed by the Executive, and the third
shall be appointed by the first two arbitrators. If the first two arbitrators
cannot agree on the third arbitrator within 30 days of the appointment of the
second arbitrator, then the third arbitrator shall be appointed by the
Association. The decision of the arbitrators, including determination of the
amount of any damages suffered, shall be final, nonappealable and binding on all
Parties, their heirs, executors, administrators, successors and assigns, and
judgment may be entered thereon by either Party in accordance with applicable
law in any court of competent jurisdiction. This arbitration provision shall be
specifically enforceable. The arbitrators shall have no authority to modify any
provision of this Agreement or to award a remedy for a dispute involving this
Agreement other than a benefit specifically provided under or by virtue of the
Agreement. If the Executive prevails on any material issue which is the subject
of such arbitration or lawsuit, the Company shall be responsible for all of the
fees of the American Arbitration Association and the arbitrators and any
expenses relating to the conduct of the arbitration (including the Company's and
the Executive's reasonable attorneys' fees and expenses). Otherwise, each party
shall be responsible for its own expenses relating to the conduct of the
arbitration (including reasonable attorneys' fees and expenses) and shall share
the fees of the American Arbitration Association equally. Pending the resolution
of the arbitration, all payments and benefits otherwise due to the Executive
hereunder shall continue.

Notwithstanding the provisions of this Section, either Party may seek injunctive
relief in a court of competent jurisdiction, whether or not the case is then
pending before the panel of arbitrators. Following the court's determination of
the injunction issue, the case shall continue in arbitration as provided herein.
<PAGE>

                                                                              18

         17.      Indemnification.

                  (a)      The Company and the Parent agree that if the
Executive is made a party, or is threatened to be made a party, to any action,
suit or proceeding, whether civil, criminal, administrative or investigative (a
"Proceeding"), by reason of the fact that he is or was a director, officer or
employee of the Company or any of its Affiliates or is or was serving at the
request of the Company or the Parent as a director, officer, member, employee or
agent of another corporation, partnership, joint venture, trust or other
enterprise, including service with respect to employee benefit plans, whether or
not the basis of such Proceeding is the Executive's alleged action in an
official capacity while serving as a director, officer, member, employee or
agent, the Executive shall be indemnified and held harmless by the Company to
the fullest extent legally permitted or authorized by the certificate of
incorporation or bylaws of the Parent or the Company or resolutions of the Board
of Directors of the Parent or the Company or, if greater, by the laws of the
State of Delaware, against all cost, expense, liability and loss (including,
without limitation, attorney's fees, judgments, fines, ERISA excise taxes or
other liabilities or penalties and amounts paid or to be paid in settlement)
reasonably incurred or suffered by the Executive in connection therewith, and
such indemnification shall continue as to the Executive even if he has ceased to
be a director, member, employee or agent of the Company or any of its Affiliates
and shall inure to the benefit of the Executive's heirs, executors and
administrators. The Company shall advance to the Executive all reasonable costs
and expenses incurred by him in connection with a Proceeding within 20 calendar
days after receipt by the Company of a written request for such advance. Such
request shall include an undertaking by the Executive to repay the amount of
such advance if it shall ultimately be determined that he is not entitled to be
indemnified against such costs and expenses.

                  (b)      Neither the failure of the Parent or the Company
(including their board of directors, independent legal counsel or stockholders)
to have made a determination prior to the commencement of any proceeding
concerning payment of amounts claimed by the Executive under Section 17(a) above
that indemnification of the Executive is proper because he has met the
applicable standard of conduct, nor a determination by the Parent or the Company
(including their board of directors, independent legal counsel or stockholders)
that the Executive has not met such applicable standard of conduct, shall create
a presumption that the Executive has not met the applicable standard of conduct.

                  (c)      The Company and Parent agree to continue and maintain
a directors' and officers' liability insurance policy covering the Executive to
the extent the Company and Parent provide such coverage for its other executive
officers.

         18.      Assignability; Binding Nature. This Agreement shall be binding
upon and inure to the benefit of the Parties and their respective successors,
heirs (in the case of the Executive) and assigns. Rights or obligations of the
Parent or the Company under this Agreement may be assigned or transferred by the
Parent or the Company pursuant to a merger or consolidation in which the Parent
or the Company is not the continuing entity, or the sale or liquidation of all
or substantially all of the assets of the Parent or the Company, provided that
the assignee or transferee is the successor to all or substantially all of the
assets of the Parent or the Company and such assignee or transferee assumes the
liabilities, obligations and duties of the Parent and the Company, as contained
in this Agreement, either contractually or as a matter of law. The
<PAGE>

                                                                              19

Parent and the Company further agree that, in the event of a sale of assets or
liquidation as described in the preceding sentence, they shall take whatever
action they reasonably can in order to cause such assignee or transferee to
expressly assume the liabilities, obligations and duties of the Parent and the
Company hereunder. No rights or obligations of the Executive under this
Agreement may be assigned or transferred by the Executive other than his rights
to compensation and benefits, which may be transferred only by will or operation
of law.

         19.      Entire Agreement. This Agreement contains the entire
understanding and agreement among the Parties concerning the subject matter
hereof and supersedes all prior agreements, understandings, discussions,
negotiations and undertakings, whether written or oral, among the Parties with
respect thereto.

         20.      Amendment or Waiver. No provision in this Agreement may be
amended unless such amendment is agreed to in writing and signed by the
Executive and an authorized officer of the Company and the Parent. No waiver by
any Party of any breach by any other Party of any condition or provision
contained in this Agreement to be performed by such other Party shall be deemed
a waiver of a similar or dissimilar condition or provision at the same or any
prior or subsequent time. Any waiver must be in writing and signed by the
Executive or an authorized officer of the Company and the Parent, as the case
may be.

         21.      Severability. In the event that any provision or portion of
this Agreement shall be determined to be invalid or unenforceable for any
reason, in whole or in part, the remaining provisions of this Agreement shall be
unaffected thereby and shall remain in full force and effect to the fullest
extent permitted by law so as to achieve the purposes of this Agreement.

         22       Survivorship. Except as otherwise expressly set forth in this
Agreement, the respective rights and obligations of the Parties hereunder shall
survive any termination of the Executive's employment. This Agreement itself (as
distinguished from the Executive's employment) may not be terminated by either
Party without the written consent of the other Party. Upon the expiration of the
term of the Agreement, the respective rights and obligations of the Parties
shall survive such expiration to the extent necessary to carry out the
intentions of the Parties as embodied in the rights (such as vested rights) and
obligations of the Parties under this Agreement.

         23       References. In the event of the Executive's death or a
judicial determination of his incompetence, reference in this Agreement to the
Executive shall be deemed, where appropriate, to refer to his beneficiary,
estate or other legal representative.

         24       Governing Law. This Agreement shall be governed in accordance
with the laws of Illinois without reference to principles of conflict of laws.

         25       Notices. All notices and other communications required or
permitted hereunder shall be in writing and shall be deemed given when (a)
delivered personally, (b) delivered by certified or registered mail, postage
prepaid, return receipt requested or (c) delivered by overnight courier
(provided that a written acknowledgment of receipt is obtained by the overnight
courier) to the Party concerned at the address indicated below or to such
changed address as such Party may subsequently give such notice of:
<PAGE>

                                                                              20

              If to the Company or the Parent:   Heidrick and Struggles, Inc.
                                                 Sears Tower
                                                 233 South Wacker Drive
                                                 Suite 4200
                                                 Chicago, Illinois 60606-6303
                                                 Attention: Chief Legal Counsel

              If to the Executive:               Mr. Patrick S. Pittard
                                                 20 Cates Ridge
                                                 Atlanta, GA 30327

         26       Headings. The headings of the sections contained in this
Agreement are for convenience only and shall not be deemed to control or affect
the meaning or construction of any provision of this Agreement.

         27       Counterparts. This Agreement may be executed in two or more
counterparts.

         IN WITNESS WHEREOF, the undersigned have executed this Agreement as of
the date first written above.

         Heidrick and Struggles, Inc.

         By:      /s /     Richard D. Nelson
                  ---------------------------------------
                           Richard D. Nelson
                           Secretary

         Heidrick and Struggles International, Inc.

         By:      /s /     Richard D. Nelson
                  ---------------------------------------
                           Richard D. Nelson
                           Secretary

                  /s /     Patrick S. Pittard
                  ---------------------------------------
                           Patrick S. Pittard

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