As I remember it at the time, Barchi told Tim he could fire Rice, but he couldn't have any additional money to hire a replacement. And he also said Tim should coordinate with the legal team (who said Rice couldn't be fired for cause, which meant he was going to get his salary and, therefore, that money could not be used on a replacement). So Barchi essentially gave him the choice of Rice (who legal said hadn't done anything that would give Tim the right to fire him for cause) or one of the assistants as a replacement (for the remainder of Rice's contract).