Document:

Employment Agreement between the Company and Gary D. Burnison

 Exhibit 10.2 
  
 EMPLOYMENT AGREEMENT 
  
 BETWEEN 
  
 KORN/FERRY INTERNATIONAL 
  
 AND 
  
 GARY BURNISON

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	   1.
	  	Employment	  	1
			
	 2.
	  	Term of Employment	  	1
			
	 3.
	  	Position, Duties and Responsibilities	  	1
			
	 4.
	  	Annual Compensation	  	1
	 	  	 (a)    Base Salary
	  	1
	 	  	 (b)    Annual Cash Incentive Award
	  	1
	 	  	 (c)    Annual Stock Option Grant
	  	2
	 	  	 (d)    Annual Restricted Stock Grant
	  	2
			
	 5.
	  	Employee Benefit Programs and Perquisites.	  	2
	 	  	 (a)    General
	  	2
	 	  	 (b)    Reimbursement of Business Expenses
	  	2
	 	  	 (c)    Conditions of Employment
	  	2
			
	 6.
	  	Termination of Employment.	  	3
	 	  	 (a)    Death
	  	3
	 	  	 (b)    Disability
	  	3
	 	  	 (c)    Termination by the Company for Cause or Voluntary Termination by Executive
	  	3
	 	  	 (d)    Termination by the Company Without Cause, by Executive for Good Reason or for Failure by the Company to Renew
Agreement Prior to Change in Control
	  	4
	 	  	 (e)    Following a Change of Control, Termination by the Company Without Cause or by Executive for Good
Reason
	  	4
	 	  	 (f)     Parachute Limitation
	  	5
	 	  	 (g)    Other Programs
	  	6
	 	  	 (h)    Certain Definitions
	  	6
			
	 7.
	  	No Mitigation; No Offset	  	8
			
	 8.
	  	Confidential Information; Cooperation with Regard to Litigation.	  	8
	 	  	 (a)    Nondisclosure of Confidential Information
	  	8
	 	  	 (b)    Definition of Confidential Information
	  	9
	 	  	 (c)    Cooperation in Litigation
	  	9
			
	 9.
	  	Non-solicitation	  	9

					
	 	  	 	  	Page

	 10.
	  	Remedies	  	9
			
	 11.
	  	Resolution of Disputes	  	10
			
	 12.
	  	Indemnification.	  	10
	 	  	 (a)    Company Indemnity
	  	10
	 	  	 (b)    No Presumption Regarding Standard of Conduct
	  	11
	 	  	 (c)    Liability Insurance
	  	11
			
	 13.
	  	Effect of Agreement on Other Benefits	  	11
			
	 14.
	  	Assignment; Binding Nature	  	11
			
	 15.
	  	Representations	  	12
			
	 16.
	  	Entire Agreement	  	12
			
	 17.
	  	Amendment or Waiver	  	12
			
	 18.
	  	Severability	  	12
			
	 19.
	  	Survivorship	  	12
			
	 20.
	  	Beneficiaries/References	  	12
			
	 21.
	  	Governing Law	  	13
			
	 22.
	  	Notices	  	13

  
  

 -ii- 

 EMPLOYMENT AGREEMENT 
  
 This EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of October 1, 2003, by and between
KORN/FERRY INTERNATIONAL, a Delaware corporation with its principal offices in Los Angeles, California (the “Company”), and GARY BURNISON, an individual (the “Executive”). 
  
 1. Employment. The Company agrees to employ Executive and Executive
agrees to be employed by the Company upon the terms and conditions set forth in this Agreement. 
  
 2. Term of Employment. Executive’s employment under this Agreement will begin on October 1, 2003 and will continue for an initial term ending
on April 30, 2007. The Company may renew this Agreement for successive 1 year periods thereafter by providing Executive with written notice at least 30 days’ prior to the expiration of this Agreement. (If the Company does not deliver such a
notice and the Agreement expires then that shall be referred to as a “failure to renew” the Agreement.) 
  
 3. Position, Duties and Responsibilities. Executive will serve as Chief Operating Officer, Chief Financial Officer and Executive Vice President of
the Company with duties and responsibilities customary to such offices. At the request of the Board of Directors (“the “Board”), Executive will serve as an officer or director of the Company’s subsidiaries and other affiliates
without additional compensation. Executive will devote substantially all of Executive’s business time and attention to the performance of Executive’s obligations, duties and responsibilities under this Agreement. Subject to Company
policies applicable to senior executives generally, Executive may engage in personal, charitable, professional and investment activities to the extent such activities do not conflict or interfere with Executive’s obligations to, or
Executive’s ability to perform the normal duties and functions of Executive pursuant to this Agreement. 
  
 4. Annual Compensation. In consideration of Executive’s services to the Company pursuant to this Agreement, Executive’s annual
compensation shall be as follows: 
  
 (a) Base
Salary. The Company will pay a base salary to Executive of $475,000 annually in accordance with its regular payroll practices (the “Base Salary”). The Board will review the level of Executive’s Base Salary at least annually,
beginning in June, 2004. The Board, acting in its discretion, may increase (but may not decrease) the annual rate of Base Salary in effect for Executive at any time, unless the Board concludes that an across-the-board reduction in compensation is
required for all executive officers of the Company, in which case Executive’s compensation shall be ratably reduced. 
  
 (b) Annual Cash Incentive Award. Executive will participate in the Company’s annual cash incentive plan established for senior
executives with an annual target cash award equal to 100% of Base Salary, and a maximum cash 

 award equal to 200% of Base Salary. Executive’s annual cash incentive award will be payable at such
time as annual cash incentive awards are paid to executive officers generally, but not later than 120 days after the end of the fiscal year for which such award is earned. Such annual cash incentive award shall be considered earned only if Executive
is employed by the Company as of the last day of the fiscal year to which the award applies. 
  
 (c) Annual Stock Option Grant. Executive shall be awarded, subject to the approval of the Board, equity incentives with respect to
shares of the Company’s common stock (“Shares”), which shall be granted under the Korn/Ferry International Performance Award Plan. Executive shall be eligible to receive an annual grant of stock options, subject to the discretion of
and approval by the Board, with a target grant value of 50% of Base Salary and a maximum grant value of 100% of Base Salary. Grant value shall be determined by the Black-Scholes Option Pricing Model using the same assumptions the Board applies to
determine annual option grants for the Company’s other executive officers. Such annual stock option grant shall be awarded at the same time annual option grants are awarded to the Company’s other executive officers, beginning with grants
attributable to performance for the firm’s 2003 fiscal year. The terms of any stock options granted shall be set by the Board or the Compensation Committee of the Board. 
  
 (d) Annual Restricted Stock Grant. Executive shall be eligible to receive an annual grant of
restricted stock, subject to the discretion of and approval of the Board. The terms of any restricted stock grants shall be set by the Board or the Compensation Committee of the Board. 
  
 5. Employee Benefit Programs and Perquisites. 
  
 (a) General. Executive will be entitled to
participate in such retirement or pension plans, group health, long term disability and group life insurance plans, and any other welfare and fringe benefit plans, arrangements, programs and perquisites sponsored or maintained by the Company from
time to time for the benefit of its senior executives generally, including four weeks paid vacation. 
  
 (b) Reimbursement of Business Expenses. Executive is authorized to incur reasonable expenses in accordance with the Company’s
written policy in carrying out Executive’s duties and responsibilities under this Agreement. The Company will promptly reimburse Executive for all such expenses that are so incurred upon presentation of appropriate vouchers or receipts, subject
to the Company’s expense reimbursement policies applicable to senior executive officers generally. 
  
 (c) Conditions of Employment. Executive’s place of employment during the term of Executive’s employment under this
Agreement will be at the 
  

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 Company’s corporate headquarters in Los Angeles, California, subject to the need for reasonable
business travel. The conditions of Executive’s employment, including, without limitation, office space, office appointments, secretarial, administrative and other support, will be consistent with Executive’s status as Chief Operating
Officer of the Company. 
  
 6. Termination of Employment.

  
 (a) Death. If Executive’s
employment with the Company terminates before the end of the term by reason of Executive’s death, then as soon as practicable thereafter the Company will pay to Executive’s estate an amount equal to Executive’s “Accrued
Compensation” (as defined in Section 6(h)), and all outstanding stock options and other equity-type incentives held by Executive and all of Executive’s benefits under the Executive Capital Accumulation Plan at the time of Executive’s
death will become fully vested (whether or not fully vested immediately prior to Executive’s death) and shall remain exercisable until their originally scheduled expiration dates. Executive’s covered dependent(s) will be entitled to
continue to participate at the expense of the Company in the Company’s group health plan(s) after Executive’s death at the same benefit level and to the same extent and for the same contribution, if any, as such continued participation is
available to other executive officers of the Company, and such participation may continue for such additional period as may be available under COBRA. 
  
 (b) Disability. If the Company terminates Executive’s employment before the end of the term by reason of Executive’s
Disability (as defined in Section 6(h)), then as soon as practicable thereafter the Company will pay to Executive an amount equal to Executive’s Accrued Compensation, and all outstanding stock options and other equity-type incentives held by
Executive and all of Executive’s benefits under the Executive Capital Accumulation Plan at Executive’s termination date will become fully vested and shall remain exercisable until their originally scheduled expiration dates. Executive and
Executive’s covered dependent(s) will be entitled to continue to participate at the expense of the Company in the Company’s group health plan(s) after Executive’s termination at the same benefit level and to the same extent and for
the same contribution, if any, as such continued participation is available to other executive officers of the Company, and such participation may continue for such additional period as may be available under COBRA. 
  
 (c) Termination by the Company for Cause or Voluntary
Termination by Executive. If (i) the Company terminates Executive’s employment for Cause (as defined in Section 6(h)), or (ii) Executive voluntarily terminates Executive’s employment without Good Reason (as defined in Section 6(h))
before the end of the stated term of this Agreement that is then in effect, then the Company shall pay to Executive within 30 days after the date of such termination Executive’s Accrued Compensation through the date Executive’s employment
terminates. 
  

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 (d) Termination by the Company Without Cause, by Executive for Good Reason or for
Failure by the Company to Renew Agreement Prior to Change in Control or More Than 12 Months After a Change in Control. If Executive’s employment is terminated prior to a “Change in Control” (as defined in Schedule A), or more than
12 months after the date on which a Change in Control occurs, (i) by the Company without Cause, or (ii) by Executive for Good Reason, or (iii) by reason of the Company’s failure to renew this Agreement at any time before Executive reaches the
age of 65, then (1) the Company shall pay to Executive within 30 days Executive’s Accrued Compensation; (2) the Company shall pay to Executive within 30 days of such a termination a lump sum payment equal to one and one-half times both
Executive’s then current Base Salary and target bonus provided, however, that if Executive’s employment is terminated by reason of the Company’s failure to renew this Agreement, then Executive shall be entitled only to one time the
then current Base Salary and target bonus; (3) Executive and Executive’s covered dependent(s) will be entitled to continue to participate at the expense of the Company in the Company’s group health plan(s) after Executive’s
termination at the same benefit level and to the same extent and for the same contribution, if any, as such continued participation is available to other executive officers of the Company, and such participation may continue for a period of eighteen
months after such termination; provided, however, that if such termination is due to the Company’s failure to renew, then the period of continued participation will only be for one year after such termination; and (4) all outstanding stock
options and other equity-type incentives held by Executive and all of Executive’s benefits under the Executive Capital Accumulation Plan at the time of Executive’s termination that would have vested in the twelve months following
termination will become fully vested and shall remain exercisable until their originally scheduled expiration dates. 
  
 (e) Following a Change of Control, Termination by the Company Without Cause or by Executive for Good Reason. If a Change in Control
occurs and, within 12 months after the date on which the Change in Control occurs, Executive’s employment is terminated (i) by the Company without Cause or (ii) by Executive for Good Reason, or (iii) by reason of the Company’s failure to
renew this Agreement at any time before Executive reaches the age of 65, then: (1) the Company shall pay to Executive within 30 days Executive’s Accrued Compensation; (2) the Company shall pay to Executive within 30 days a lump sum payment
equal to (A) two times the then current Base Salary, plus (B) two times the annual target cash bonus for Executive for the incentive year in which such termination occurs; (3) Executive and Executive’s covered dependent(s) will be
entitled to continue to participate at the expense of the Company in the Company’s group health plan(s) after Executive’s termination at the same benefit level and to the same extent and for the same contribution, if any, as such

  

 4 

 continued participation is available to other executive officers of the Company, and such participation
may continue for a period of eighteen months after such termination; and (4) all outstanding stock options and other equity-type incentives held by Executive and all of Executive’s benefits under the Executive Capital Accumulation Plan at the
time of Executive’s termination will become fully vested and shall remain exercisable until their originally scheduled expiration dates. 
  
 (f) Certain Additional Payments by the Company. 
  
 (1) Anything in this Agreement to the contrary notwithstanding, in the event it shall be determined that any
payment, award, benefit or distribution (or any acceleration of any payment, award, benefit or distribution) by the Company (or any of its affiliated entities) or any entity which effectuates a Change in Control (or any of its affiliated entities)
to or for the benefit of Executive (whether pursuant to the terms of this Agreement or otherwise, but determined without regard to any additional payments required under this Section 6(f)) (the “Payments”) would be subject to the excise
tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), or any interest or penalties are incurred by Executive with respect to such excise tax (such excise tax, together with any such interest and
penalties, are hereinafter collectively referred to as the “Excise Tax”), then the Company shall pay to Executive an additional payment (a “Gross-Up Payment”) in an amount such that after payment by Executive of all taxes
(including any 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 Payments. For purposes of determining the amount of the Gross-Up Payment, the Executive shall
be deemed to (i) pay federal income taxes at the highest marginal rates of federal income taxation for the calendar year in which the Gross-Up Payment is to be made and (ii) pay applicable state and local income taxes at the highest marginal rate of
taxation for the calendar year in which the Gross-Up Payment is to be made, net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes. In the event that no Excise Tax is applicable,
this Section 6(f) shall not be applicable. 
  
 (2) The determinations to be made with respect to this Section 6(f) shall be made by an accounting firm (the “Auditor”) jointly selected by the Company and Executive and paid by the Company. The Auditor shall be a nationally
recognized United States public accounting firm that has not during the two years preceding the date of its selection acted in any way on behalf of the Company or any of its subsidiaries. If Executive and the Company cannot agree on the firm to
serve as the Auditor, then Executive and the Company shall each select one such accounting firm and those two firms shall jointly select such an accounting firm to serve as the Auditor. The Gross-Up Payment under this Section 6(f) with respect to
any Payments shall be made no later than thirty (30) 
  

 5 

 days following such Payment. If the Auditor determines that no Excise Tax is payable by Executive, it
shall furnish Executive with a written opinion to such effect, and to the effect that failure to report the Excise Tax, if any, on Executive’s applicable federal income tax return will not result in the imposition of a negligence or similar
penalty. The determinations by the Auditor 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 determination, it is possible that Gross-Up Payments which
will not have been made by the Company should have been made (“Underpayment”) or Gross-Up Payments are made by the Company which should not have been made (“Overpayment”), consistent with the calculations required to be made
hereunder. In the event that the Executive thereafter is required to make payment of any Excise Tax or additional Excise Tax, the Auditor shall determine the amount of the Underpayment that has occurred and any such Underpayment (together with
interest at the rate provided in Section 1274(b)(2)(B) of the Code) shall be promptly paid by the Company to or for the benefit of Executive. In the event the amount of the Gross-Up Payment exceeds the amount necessary to reimburse the Executive for
his or her Excise Tax, the Auditor shall determine the amount of the Overpayment that has been made and any such Overpayment (together with interest at the rate provided in Section 1274(b)(2) of the Code) shall be promptly paid by Executive (to the
extent he or she has received a refund if the applicable Excise Tax has been paid to the Internal Revenue Service) to or for the benefit of the Company. Executive shall cooperate, to the extent his or her expenses are reimbursed by the Company, with
any reasonable requests by the Company in connection with any contests or disputes with the Internal Revenue Service in connection with the Excise Tax. In the event that the Company determines that the value of any accelerated vesting of stock
options held by Executive shall be redetermined within the context of Treasury Regulation §1.280G-1 Q/A 33 (the “Option Redetermination”), Executive shall (i) file with the Internal Revenue Service an amended federal income tax return
that claims a refund of the overpayment of the Excise Tax attributable to such Option Redetermination and (ii) promptly pay the refunded Excise Tax to the Company; provided that the Company shall pay all reasonable professional fees incurred in the
preparation of Executive’s amended federal income tax return. 
  
 (g) Other Programs. Except as otherwise provided in this Agreement, Executive’s entitlements under applicable plans and programs of the Company following termination of Executive’s employment will be
determined under the terms of those plans and programs. 
  
 (h) Certain Definitions. For purposes of this Agreement, the following terms shall have the meanings set forth herein: 
  

(1) “Accrued Compensation” means, as of any date, the amount of any unpaid Base Salary and annual cash incentive award earned

  

 6 

 by Executive through the date of Executive’s death or the termination of Executive’s
employment, plus any additional amounts and/or benefits payable to or in respect of Executive under and in accordance with the provisions of any employee plan, program or arrangement under which Executive is covered immediately prior to
Executive’s death, disability or the termination of Executive’s employment. 
  
 (2) “Cause” shall mean (a) conviction of any felony or other crime involving fraud, dishonesty or acts of moral turpitude or
pleading guilty or nolo contendere to such charges, or (b) reckless or intentional behavior or conduct that causes the Company or could cause the Company material harm or injury or expose the Company to any civil, criminal or administrative action,
claim or proceeding, or (c) any material misrepresentation or false statement made by Executive in any application for employment, employment history, resume or other document submitted to the Company, either before, during or after employment.
Prior to terminating the Executive for Cause, the Company shall be required to provide Executive with 90 days advanced written notice of its intention to terminate Executive for Cause, but Executive shall be permitted to cure any performance
deficiencies during such 90 day period (if the termination is not due to performance deficiencies, then the Company is permitted to put Executive on paid leave during such 90 day period). 
  
 (3) “Disability” means any medically determinable
physical or mental condition or impairment which prevents Executive from performing the principal functions of Executive’s duties with the Company that can be expected to result in death or that has lasted or can be expected to last for a
period of 90 consecutive days or for shorter periods aggregating 180 days in any consecutive 12 month period, with such determination to be made by an approved medical doctor. For this purpose, an approved medical doctor shall mean a medical doctor
selected by the Company and 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 medical doctor who shall be the approved medical doctor for this purpose.

  
 (4) Executive shall be deemed to have
“Good Reason” to terminate his employment hereunder if, without Executive’s prior written consent, (A) the Company materially reduces Executive’s duties or responsibilities as Chief Operating Officer or assigns Executive duties
which are materially inconsistent with his duties or which materially impair Executive’s ability to function as Chief Operating Officer, or (B) the Company reduces Executive’s then current Base Salary or target award opportunity under the
Company’s annual cash incentive bonus plan 
  

 7 

 or annual stock option award program, or terminates or materially reduces any employee benefit or
perquisite enjoyed by Executive (other than as part of an across-the-board reduction applicable to all executive officers of the Company), or (C) the Company fails to perform or breaches its obligations under any other material provision of this
Agreement, or (D) Executive’s primary location of business is moved by more than 50 miles, or (E) the Company reduces Executive’s title of Chief Operating Officer or Executive Vice President (but not the title of Chief Financial Officer,
to which title and position the Company may appoint another person) or removes him, or (F) the Company fails 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 Company within 15 days after a merger, consolidation, sale or similar transaction. Prior to terminating for Good Reason, the Executive shall be required to provide the Company with 30 days advanced written notice of its intention to terminate
employment for Good Reason, but the Company shall be permitted to cure any events giving rise to such Good Reason during such 30 day period. 
  
 7. No Mitigation; No Offset. Executive will have no obligation to seek other employment or to otherwise mitigate the Company’s obligations to
Executive arising from the termination of Executive’s employment, and no amounts paid or payable to Executive by the Company under this Agreement shall be subject to offset for any remuneration in which Executive may become entitled from any
other source after Executive’s employment with the Company terminates, whether attributable to subsequent employment, self-employment or otherwise except that subsequent employment during the term of this Agreement with an employer providing
medical benefit plans shall result in an offset against benefits payable by the Company hereunder to the extent of the benefits paid by the new employer. 
  
 8. Confidential Information; Cooperation with Regard to Litigation. 
  
 (a) Nondisclosure of Confidential Information. During the term of Executive’s employment and
thereafter, Executive will not, without the prior written consent of the Company, disclose to anyone (except in good faith in the ordinary course of business to a person who will be advised by Executive to keep such information confidential) or make
use of any Confidential Information (as defined below) except in the performance of Executive’s duties hereunder or when required to do so by legal process, by any governmental agency having supervisory authority over the business of the
Company or any of its Affiliates (as defined below) or by any administrative or legislative body (including a committee thereof) that requires Executive to divulge, disclose or make accessible such information. If Executive is so ordered, to divulge
Confidential Information, he will give prompt written notice to the Company in order to allow the Company the opportunity to object to or otherwise resist such order. 
  

 8 

 (b) Definition of Confidential Information. For purposes of this Agreement,
“Confidential Information” means information concerning the business of the Company or any corporation or other entity that, directly or indirectly, controls, is controlled by or under common control with the Company (an
“Affiliate”) relating to any of its or their products, product development, trade secrets, customers, suppliers, finances, and business plans and strategies. Excluded from the definition of Confidential Information is information (1) that
is or becomes part of the public domain, other than through the breach of this Agreement by Executive or (2) regarding the Company’s business or industry properly acquired by Executive in the course of Executive’s career as an executive in
the Company’s industry and independent of Executive’s employment by the Company. For this purpose, information known or available generally within the trade or industry of the Company or any Affiliate shall be deemed to be known or
available to the public and not to be Confidential Information. 
  
 (c) Cooperation in Litigation. Executive will cooperate with the Company, during the term of Executive’s employment (and following Executive’s termination of employment for any reason for a period of
two years thereafter), by making Executive reasonably available to testify on behalf of the Company or any Affiliate in any action, suit, or proceeding, whether civil, criminal, administrative, or investigative, and to reasonably assist the Company
or any such Affiliate in any such action, suit, or proceeding by providing information and meeting and consulting with the Board or its representatives or counsel, or representatives or counsel to the Company or any such Affiliate, as reasonably
requested; provided, however, that the same does not materially interfere with Executive’s then current professional activities. The Company will reimburse Executive for all expenses reasonably incurred by Executive in connection
with Executive’s provision of testimony or assistance (including the fees of any counsel that may be retained by Executive) and if such assistance is provided after Executive’s termination of employment, will pay Executive a per diem rate
of $2,000. 
  
 9. Non-solicitation. Executive will not
induce or solicit, directly or indirectly, any employee of the Company or any Affiliate to terminate such employee’s employment with the Company or any Affiliate during Executive’s employment hereunder and for a period of (i) 18 months
following the termination of Executive’s employment with or without Cause, or by Executive for Good Reason or (ii) 12 months for failure by the Company to renew this Agreement prior to a Change of Control. 
  
 10. Remedies. If Executive commits a material breach of any of the
provisions contained in Sections 8 and 9 above, then the Company will have the right to seek injunctive relief. Executive acknowledges that such a breach of Section 8 or 9 could cause irreparable injury and that money damages may not provide an
adequate remedy for the Company. Nothing contained herein will prevent Executive from contesting any such action by the Company on the ground that no violation or threatened violation of either such Section has occurred. 
  

 9 

 11. Resolution of Disputes. Any controversy or claim arising out of or relating to this Agreement
or any breach or asserted breach hereof or questioning the validity and binding effect hereof arising under or in connection with this Agreement, other than seeking injunctive relief under Section 10, shall be resolved by binding arbitration, to be
held in Los Angeles in accordance with the rules and procedures of the American Arbitration Association. Judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. Pending the resolution of any
arbitration or court proceeding, the Company will continue payment of all amounts and benefits due Executive under this Agreement. All costs and expenses of any arbitration or court proceeding (including fees and disbursements of counsel) shall be
borne by the respective party incurring such costs and expenses (with the limitation that, in no event, shall Executive be liable under this provision for more than two times the fees paid by the Executive for Executive’s counsel services in
the arbitration or proceeding), but the Company shall reimburse Executive for all reasonable costs and expenses by Executive if Executive substantially prevails in such arbitration or court proceeding.. Notwithstanding the foregoing, following a
Change in Control, all reasonable costs and expenses (including fees and disbursements of counsel) incurred by Executive pursuant to this section shall be paid on behalf of or reimbursed to Executive promptly by the Company; provided,
however, that Executive shall repay such amounts to the Company if and to the extent the arbitrator(s) determine(s) that any of Executive’s litigation assertions or defenses were in bad faith or frivolous. Notwithstanding the foregoing,
if any applicable law requires different or additional rules or procedures to be applied in order for this Agreement to arbitrate or to be enforceable, or prohibits any expense allocation provided herein, such rules or procedures shall take
precedence and such prohibitions shall be a part of this Agreement to the to the extent necessary to render this Agreement enforceable. 
  
 12. Indemnification. 
  
 (a) Company Indemnity. If 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 Affiliate or was serving at the request of the Company or any
Affiliate 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
Executive’s alleged action in an official capacity while serving as a director, officer, member, employee or agent, then the Company will indemnify Executive and hold Executive harmless to the fullest extent legally permitted or authorized by
the Company’s articles of incorporation, certificate of incorporation or bylaws or resolutions of the Company’s Board to the extent not inconsistent with state laws, against all costs, expense, liability and loss (including, without
limitation, attorney’s fees, judgments, fines, ERISA excise taxes or penalties and amounts paid or to be paid in settlement) reasonably incurred or suffered by Executive in connection 
  

 10 

 therewith, except to the extent attributable to Executive’s gross negligence or fraud, and such
indemnification shall continue as to Executive even if he has ceased to be a director, member, officer, employee or agent of the Company or Affiliate and shall inure to the benefit of Executive’s heirs, executors and administrators. The Company
will advance to Executive all reasonable costs and expenses to be incurred by Executive in connection with a Proceeding within 20 days after receipt by the Company of a written request for such advance. Such request shall include an undertaking by
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. The provisions of this section shall not be deemed exclusive of any other rights of
indemnification to which Executive may be entitled or which may be granted to Executive and shall be in addition to any rights of indemnification to which he may be entitled under any policy of insurance. 
  
 (b) No Presumption Regarding Standard of Conduct.
Neither the failure of the Company (including its Board, independent legal counsel or shareholders) to have made a determination prior to the commencement of any proceeding concerning payment of amounts claimed by Executive under the preceding
subsection (a) of this section that indemnification of Executive is proper because Executive has met the applicable standard of conduct, nor a determination by the Company (including its Board, independent legal counsel or shareholders) that
Executive has not met such applicable standard of conduct, shall create a presumption that Executive has not met the applicable standard of conduct. 
  
 (c) Liability Insurance. The Company will continue and maintain a directors and officers liability insurance policy covering
Executive to the extent the Company provides such coverage for its other senior executive officers. 
  
 13. Effect of Agreement on Other Benefits. Except as specifically provided in this Agreement, the existence of this Agreement shall not be
interpreted to preclude, prohibit or restrict Executive’s participation in any other employee benefit or other plans or programs in which he currently participates. 
  
 14. Assignment; 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 Executive) and permitted assigns. No rights or obligations of the Company under this Agreement may be assigned or transferred by the Company except that such rights or obligations may be assigned or
transferred to the successor of the Company or its business if the assignee or transferee assumes the liabilities, obligations and duties of the Company, as contained in this Agreement, either contractually or as a matter of law. No rights or
obligations of Executive under this Agreement may be assigned or transferred by Executive other than Executive’s rights to compensation and benefits, which may be transferred only by will or operation of law, except as otherwise specifically
provided or permitted hereunder. 
  

 11 

 15. Representations. The Company represents and warrants that it is fully authorized and empowered
to enter into this Agreement and that the performance of its obligations under this Agreement will not violate any Agreement between it and any other person, firm or organization. Executive represents and warrants that there is no legal or other
impediment which would prohibit Executive from entering into this Agreement or which would prevent Executive from fulfilling Executive’s obligations under this Agreement. 
  
 16. Entire Agreement. This Agreement contains the entire understanding and agreement between the parties concerning
the subject matter hereof and supersedes all prior agreements, understandings, discussions, negotiations and undertakings, whether written or oral, between the parties with respect thereto. 
  
 17. Amendment or Waiver. No provision in this Agreement may be amended
unless such amendment is agreed to in writing and signed by Executive and an authorized officer of the Company. Except as set forth herein, no delay or omission to exercise any right, power or remedy accruing to any party shall impair any such
right, power or remedy or shall be construed to be a waiver of or an acquiescence to any breach hereof. No waiver by either party of any breach by the 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 Executive or an authorized officer of the Company, as the case may be.

  
 18. 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. 
  
 19. Survivorship. The respective
rights and obligations of the parties hereunder shall survive any termination of Executive’s employment to the extent necessary to the intended preservation of such rights and obligations. 
  
 20. Beneficiaries/References. Executive shall be entitled, to the
extent permitted under any applicable law, to select and change a beneficiary or beneficiaries to receive any compensation or benefit payable hereunder following Executive’s death by giving the Company written notice thereof. In the event of
Executive’s death or a judicial determination of Executive’s incompetence, reference in this Agreement to Executive shall be deemed, where appropriate, to refer to Executive’s beneficiary, estate or other legal representative.

  

 12 

 21. Governing Law. This Agreement shall be governed by and construed and interpreted in accordance
with the laws of California without reference to principles of conflict of laws. 
  
 22. Notices. Any notice given to a party shall be in writing and shall be deemed to have been given when delivered personally or sent by certified or registered mail, postage prepaid, return receipt requested,
duly addressed to the party concerned at the address of the party indicated below or to such changed address as such party may subsequently give such notice of: 
  

			
	If to the Company:	  	 KORN/FERRY INTERNATIONAL

	 	  	 1800 Century Park East

	 	  	 Los Angeles, CA 90067

	 	  	 Attention: Corporate Secretary

		
	If to Executive:	  	 

  

 13 

 IN WITNESS WHEREOF, the undersigned have executed this Employment Agreement on the date first above
written. 
  

					
	 The Company:
	 	 KORN/FERRY INTERNATIONAL

			
	 	 	 By:
	 	  

			
	 Executive:
	 	 	 	 
	 	 	

	 	 	 GARY BURNISON

  
  

 14 

 SCHEDULE A 
  

DEFINITION OF CHANGE IN CONTROL 
  
 For purposes of the foregoing Agreement, a “Change in Control” shall mean any of the following: 
  
 (a) an acquisition by any Person (excluding one or more Excluded Persons)
of beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) or a pecuniary interest (as defined in Section 16a-1(a)(2) of the Exchange Act) in (either comprising “ownership of”) more than 30% of the Common Stock of
the Company or voting securities entitled to then vote generally in the election of directors (“Voting Stock”) of the Company, after giving effect to any new issue in the case of an acquisition from the Company; or 
  
 (b) approval by the shareholders of the Company of a plan, or the
consummation, of merger, consolidation, or reorganization of the Company or of a sale or other disposition of all or substantially all of the Company’s consolidated assets as an entirety (collectively, a “Business Combination”), other
than a Business Combination (1) in which all or substantially all of the holders of Voting Stock of the Company hold or receive directly or indirectly 70% or more of the Voting Stock of the entity resulting from the Business Combination (or a parent
company), and (2) after which no Person (other than any one or more of the Excluded Persons) owns more than 30% of the Voting Stock of the resulting entity (or a parent company) who did not own directly or indirectly at least that percentage of the
Voting Stock of the Company immediately before the Business Combination, and (3) after which one or more Excluded Persons own an aggregate amount of Voting Stock of the resulting entity owned by any Persons who (i) own more than 5% of the Voting
Stock of the resulting entity, (ii) are not Excluded Persons, (iii) did not own directly or indirectly at least the same percentage of the Voting Stock of the Company immediately before the Business Combination, and (iv) in the aggregate own more
than 30% of the Voting Stock of the resulting entity; or 
  
 (c)
approval by the Board of Directors of the Company and (if required by law) by shareholders of the Company of a plan to consummate the dissolution or complete liquidation of Korn/Ferry International; or 
  
 (d) during any period of two consecutive years, individuals who at the
beginning of such period constituted the Board and any new directors (excluding any new director designated by a person who has entered into an agreement or arrangement with Korn/Ferry International to effect a transaction described in clause (a) or
(b) of this definition) whose appointment, election, or nomination for election was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at the beginning of the period or whose appointment,
election or nomination for election was previously so approved (all such directors, “Incumbent Directors”), cease for any reason to constitute a majority of the Board; provided that for purposes of this clause (d), any directors elected at
any time during 1999 shall be deemed to be Incumbent Directors. 
  

 A-1 

 Notwithstanding the above provisions in this Schedule A, no Change in Control shall be deemed to have
occurred if a Business Combination, as described in paragraph (b) above, is effected and a majority of the Incumbent Directors, through the adoption of a Board resolution, determines that, in substance, no Change in Control has occurred. 

 
 The “Company” means Korn/Ferry International, a Delaware
corporation, its successors, and/or its Subsidiaries, as the context requires. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time. 
  
 “Excluded Person” means 
  
 (i) the Company; or 
  
 (ii) any person described in and satisfying the conditions of Rule 13d-1(b)(1) under the Exchange Act; or 
  
 (iii) any employee benefit plan of the Company; or

  
 (iv) any affiliates (within the meaning of
the Exchange Act), successors, or heirs, descendants or members of the immediate families of the individuals identified in party (b) of this definition. 
  
 “Person” means an organization, a corporation, an individual, a partnership, a trust or any other entity or organization, including a
governmental entity and a “person” as that term is used under Section 13(d) or 14(d) of the Exchange Act. 
  

 A-2Third Amendment to the Employment Agreement

 Exhibit 10.3 
  
 THIRD AMENDMENT TO EMPLOYMENT AGREEMENT 
  
 This THIRD AMENDMENT, dated as of March 10, 2004 (this “Amendment”), to THE EMPLOYMENT AGREEMENT, dated as of May
24, 2001 (the “Agreement”), as amended as of December 1, 2001 (the “First Amendment”), and as of July 1, 2003 (the “Second Amendment”), by and between KORN/FERRY INTERNATIONAL, a Delaware corporation with its principal
offices in Los Angeles, California (the “Company”), and PAUL C. REILLY, an individual (the “Executive”). 
  
 A. Amendment to Parachute Limitation. Section 8(f) is hereby amended and restated to read in its entirety as follows: 
  
 (f) Certain Additional Payments by the Company.

  
 (1) Anything in this Agreement to the
contrary notwithstanding, in the event it shall be determined that any payment, award, benefit or distribution (or any acceleration of any payment, award, benefit or distribution) by the Company (or any of its affiliated entities) or any entity
which effectuates a Change in Control (or any of its affiliated entities) to or for the benefit of Executive (whether pursuant to the terms of this Agreement or otherwise, but determined without regard to any additional payments required under this
Section 8(f)) (the “Payments”) would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), or any interest or penalties are incurred by Executive with respect to such
excise tax (such excise tax, together with any such interest and penalties, are hereinafter collectively referred to as the “Excise Tax”), then the Company shall pay to Executive an additional payment (a “Gross-Up Payment”) in an
amount such that after payment by Executive of all taxes (including any 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 Payments. For purposes of determining
the amount of the Gross-Up Payment, the Executive shall be deemed to (i) pay federal income taxes at the highest marginal rates of federal income taxation for the calendar year in which the Gross-Up Payment is to be made and (ii) pay applicable
state and local income taxes at the highest marginal rate of taxation for the calendar year in which the Gross-Up Payment is to be made, net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and
local taxes. In the event that no Excise Tax is applicable, this Section 8(f) shall not be applicable. 
  
 (2) The determinations to be made with respect to this Section 8(f) shall be made by an accounting firm (the “Auditor”) jointly
selected by the Company and Executive and paid by the Company. The Auditor shall be a nationally recognized United States public accounting firm that has not during the two years preceding the date of its selection acted in any way on behalf of the
Company or any of its subsidiaries. If Executive and the Company cannot agree on the firm to serve as the Auditor, then Executive and the Company shall each select one such accounting firm and those two firms shall jointly select such an accounting
firm to serve as the Auditor. The Gross-Up 

 Payment under this Section 8(f) with respect to any Payments shall be made no later than thirty (30) days
following such Payment. If the Auditor determines that no Excise Tax is payable by Executive, it shall furnish Executive with a written opinion to such effect, and to the effect that failure to report the Excise Tax, if any, on Executive’s
applicable federal income tax return will not result in the imposition of a negligence or similar penalty. The determinations by the Auditor 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 determination, it is possible that Gross-Up Payments which will not have been made by the Company should have been made (“Underpayment”) or Gross-Up Payments are made by the Company which should
not have been made (“Overpayment”), consistent with the calculations required to be made hereunder. In the event that the Executive thereafter is required to make payment of any Excise Tax or additional Excise Tax, the Auditor shall
determine the amount of the Underpayment that has occurred and any such Underpayment (together with interest at the rate provided in Section 1274(b)(2)(B) of the Code) shall be promptly paid by the Company to or for the benefit of Executive. In the
event the amount of the Gross-Up Payment exceeds the amount necessary to reimburse the Executive for his or her Excise Tax, the Auditor shall determine the amount of the Overpayment that has been made and any such Overpayment (together with interest
at the rate provided in Section 1274(b)(2) of the Code) shall be promptly paid by Executive (to the extent he or she has received a refund if the applicable Excise Tax has been paid to the Internal Revenue Service) to or for the benefit of the
Company. Executive shall cooperate, to the extent his or her expenses are reimbursed by the Company, with any reasonable requests by the Company in connection with any contests or disputes with the Internal Revenue Service in connection with the
Excise Tax. In the event that the Company determines that the value of any accelerated vesting of stock options held by Executive shall be redetermined within the context of Treasury Regulation §1.280G-1 Q/A 33 (the “Option
Redetermination”), Executive shall (i) file with the Internal Revenue Service an amended federal income tax return that claims a refund of the overpayment of the Excise Tax attributable to such Option Redetermination and (ii) promptly pay the
refunded Excise Tax to the Company; provided that the Company shall pay all reasonable professional fees incurred in the preparation of Executive’s amended federal income tax return. 
  
 B. No Other Modification. Except as specifically modified herein, the remaining terms and provisions of the Agreement
shall be and remain in full force and effect in accordance with their terms. Any reference in the Agreement pertaining to any time from and after the effective date of this Amendment shall be deemed a reference to the Agreement as modified and
amended hereby. 
  
 C. Entire Agreement. This Amendment
contains the entire understanding and agreement between the parties concerning the subject matter hereof and supersedes all prior agreements, understandings, discussions, negotiations and undertakings, whether written or oral, between the parties
with respect thereto. 
  
 D. Counterparts. This Amendment
may be executed in two or more counterparts with the same effect as if all parties had signed the same document. All such counterparts shall be deemed an original, shall be construed together and shall constitute one and the same instrument.

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

  

					
	 The Company:
	 	 	 	 
		
	 	 	 KORN/FERRY INTERNATIONAL

			
	 	 	 By:
	 	  

			
	 	 	 By:
	 	  

			
	 Executive:
	 	 	 	 
	 	 	

	 	 	 PAUL C. REILLY

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