Exhibit 10.5

 

SEPARATION AGREEMENT AND GENERAL RELEASE

 

This Separation Agreement and General Release (“Agreement”) is entered into by
and between Ardell D. “Bud” Albers (subsequently referred to as “Albers”), and
Getty Images, Inc. (subsequently referred to as the “Company”), effective
January 28, 2003 (“Effective Date”).

 

Both parties to this Agreement wish to set forth the terms and conditions of
Albers’s termination of employment with the Company. In exchange for the
consideration outlined in this Agreement, the Company and Albers agree as
follows:

 

1.   Employment/Final Pay. Albers’ employment with the Company will be
discontinued as of March 31, 2003 (“date of termination”). The Company agrees to
pay Albers his normal salary through date of termination, less all required or
agreed upon withholding. This Agreement replaces and cancels any existing
Employment Agreement between the parties, and fully compensates Albers for any
benefits and compensation owed or described in any Employment Agreement.

 

2.   Consideration. As consideration and in exchange for signing this Agreement,
the Company will provide Albers with the payment and other consideration
provided on Schedule A to this Agreement. Albers acknowledges that no other
consideration will be due other than as provided by this Agreement, including
Schedule A hereto.

 

3.   Retirement Plan. Albers may receive whatever accrued and vested benefits he
is entitled to receive under the terms of the Getty Images, Inc. 401(k) Profit
Sharing Plan, according to the terms of that Plan. Any contributions to be made
to this Plan on behalf of Albers for the consideration set forth in Schedule A
hereto shall be as described therein.

 

4.   Medical/Dental/Vision Insurance/COBRA. Albers shall have the right to
purchase group medical/dental/vision continuation coverage through the Company
pursuant to his rights under COBRA statute and regulations. Under the COBRA
statute and regulations, the medical, dental and vision insurance coverage
available to Albers and his family will be the same as is currently available to
him and his family under the Company’s plans. Payment for such coverage shall be
as set forth in Schedule A.

 

5.   Other Group Insurance.

 

  5.1.   Group life and long-term disability insurance. Albers shall have the
right to convert his basic group life insurance coverage to an individual policy
under the terms and conditions of the Company’s plans. Albers acknowledges that
the basic group long-term disability insurance coverage provided by the Company
is not portable and will terminate on the date of termination. Payment for
continued coverage under the basic group life insurance plan, if any, shall be
as set forth in Schedule A.

 

  5.2.   Supplemental life insurance policy (flexible premium variable life
insurance through Security Life of Denver). With regards to the supplemental
life insurance policy covering Albers taken out by the Company through Security
Life of Denver, the

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         Company will work with Albers to transfer ownership of the policy from
the Company to Albers. Payment for continued coverage under the supplemental
life insurance plan, if any, shall be as set forth in Schedule A.

 

  5.3.   Supplemental disability insurance policy (through the Principal
Financial Group). With regards to the supplemental disability insurance policy
taken out by the Company through the Principal Financial Group, the Company will
work with Albers to transfer ownership of the policy from the Company to Albers.
Payment for continued coverage under the supplemental disability life insurance
plan, if any, shall be as set forth in Schedule A.

 

6.   Confidentiality. Albers acknowledges and reaffirms his obligation of
confidentiality in the Confidentiality and Non-disclosure Agreement between
Albers and the Company, and as described in the Company’s Employee Resource
Guide. Albers further agrees that he will keep the terms, amount and fact of
this Agreement completely confidential and that he will not disclose any
information concerning this Agreement, unless compelled to do so by law, to any
person other than his attorneys, accountants, tax advisors or immediate family
members, whom Albers shall require to keep the terms, amount and fact of this
Agreement completely confidential.

 

7.   Availability. Although no longer employed by the Company, for a reasonable
period of time following the date of termination Albers will make himself
reasonably available, upon request, to provide information or answer questions
regarding matters he handled or was familiar with during his employment.

 

8.   Company Property. Prior to the date of termination, Albers shall return to
the Company all of its property in his possession, specifically including all
keys, passwords, security cards to Company’s buildings or property, all
Company-owned equipment, all Company documents and papers, and all copies
thereof, whether in hard copy or other form, including but not limited to any
trade secrets or other confidential Company information; provided, however, that
Albers shall be allowed to keep such Company-owned property as set forth in
Schedule A.

 

9.   General Release. In exchange for the benefits and consideration outlined in
this Agreement, including Schedule A, which are in addition to the benefits
Albers is otherwise entitled to receive, Albers and his successors and assigns
forever release and discharge the Company, the Company’s parent, subsidiary, or
related entities, the Company-sponsored employee benefit plans in which Albers
participates, and the Company’s respective officers, directors, shareholders,
trustees, agents, elected officials, employees, employees’ spouses and all of
their successors and assigns (collectively, “Releasees”) from any and all
claims, actions, causes of action, rights or damages, including costs and
attorneys fees (collectively “Claims”), which Albers may have on behalf of
himself or his heirs, known, unknown, or later discovered, which arose prior to
the date Albers signs this Agreement, or subsequent to signing but related in
any way to his employment or this Agreement.

 

  9.1.   This General Release includes, but is not limited to, any Claims under
any local, state, or federal laws, including without limitation, the Civil
Rights Acts, the Americans with

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         Disabilities Act, the Age Discrimination in Employment Act, the
Washington State Law Against Discrimination, the California Fair Employment and
Housing Act, the California Labor Code, or the New York State Executive Law §
290 et seq., the Human Rights Law of the City of New York, the Employee
Retirement Income Security Act; the Fair Labor Standards Act, the Washington
State Minimum Wage Act; the Washington State Industrial Welfare Act, the
National Labor Relations Act, any other Texas, Illinois, Washington, California,
or New York state tort, contract, wage & hour, discrimination, public policy,
compensation, or other Claims related to employment or presence at the Company
in any manner, or Claims alleging any legal restriction on the Company’s right
to terminate its employees, any personal injury Claims, including without
limitation, wrongful discharge, defamation, invasion of privacy, retaliation,
tortious interference with business expectancy, infliction of emotional
distress, or any claims alleging breach of express or implied employment
contract.

 

  9.2.   Albers represents that he has not filed any Claim, complaint or report
against the Company or its Releasees, and that he will not do so at any time in
the future concerning Claims released in this Agreement or issues addressed in
this Agreement; provided, however, that this will not limit Albers from filing a
Claim to enforce the terms of this Agreement.

 

10.   Voluntary Agreement. Albers understands and acknowledges the significance
and consequences of this Agreement. Albers acknowledges that it is voluntary and
that Albers has not signed it as a result of any coercion.

 

11.   Non-Disparagement. Albers agrees that in partial consideration for the
benefits provided in this Agreement, he shall not make any derogatory, negative,
critical or disparaging remarks of any nature whatsoever at any time, publicly
or privately, regarding the Company or any of its past or present employees,
officers or directors. The Company in turn agrees that in partial consideration
for Albers’s execution of this Agreement, its officers, directors and employees
within its control shall not make any derogatory, negative, critical or
disparaging remarks of any nature whatsoever at any time, publicly or privately,
regarding Albers.

 

12.   Notice of Rights. Albers acknowledges he has been encouraged to review
this Agreement with his attorney before signing it.

 

13.   Entire Agreement. This Agreement contains the entire understanding between
the Company and Albers regarding his separation of employment. This Agreement
may not be modified except through another written agreement signed by Albers
and by the Senior Vice President and General Counsel of the Company.

 

14.   Treatment of Invalidated Provisions. If any of the provisions of this
Agreement are held to be invalid or unenforceable, the remaining provisions will
nevertheless continue to be valid and enforceable.

 

15.   Nonadmission of Liability. This Agreement shall not be construed as an
admission of wrongdoing by either party.

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16.   Applicable Law. This Agreement is made and shall be construed and
performed under the laws of the State of Washington. Any and all disputes
arising from this Agreement or its enforcement shall be submitted to binding
arbitration, pursuant to the rules of the American Arbitration Association
(“AAA”) in effect as of the date such arbitration is sought, utilizing a single
arbitrator, selected through the typical arbitrator selection process
recommended by the AAA. Any arbitration arising from this Agreement, its
enforcement, or otherwise related to Albers’s employment with the Company shall
be held in King County, Washington.

 

GETTY IMAGES, INC.

         

Ardell D. Albers

By

 

/s/    JONATHAN D. KLEIN        

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Its

 

CEO      

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/s/    ARDELL D. ALBERS            

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Date

 

1/29/03    

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Date

 

1/30/03      

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Schedule A

 

In consideration for the provisions and obligations outlined in the Separation
Agreement and General Release effective January 28, 2003, (the “Agreement”)
between Ardell D. “Bud” Albers and Getty Images, Inc. (the “Company”), the
following consideration shall be provided to Albers:

 

1.   Salary. During the first week of April 2003, the Company will pay Albers
$275,000, minus applicable withholdings and taxes, representing 12-months’
salary.

 

2.   2002 Bonus. During the first week of April 2003, the Company will pay
Albers $110,000, less normal or agreed upon withholding, representing his 2002
bonus.

 

3.   2003 Bonus. During the first week of April 2003, the Company will pay
Albers $27,500, less normal or agreed upon withholding, representing his
pro-rated 2003 bonus.

 

4.   Supplemental Bonus. Within 3 business days following the Effective Date of
the Agreement, the Company will pay Albers $50,000, less normal or agreed upon
withholding.

 

5.   Medical/Dental/Vision Insurance/COBRA. The Company will pay Albers’s COBRA
premium through September 2004, unless Albers secures substitute coverage prior
to that date, in which instance he shall notify the Company promptly and such
coverage shall cease.

 

6.   Other Group Insurance.

 

  6.1.   Basic group life insurance. If Albers elects to convert the basic group
life insurance policy provided by the Company to a personal whole life policy,
the Company will pay the premiums for that policy for up to eighteen months
following the date of termination (i.e., through September 31, 2004).

 

  6.2.   Supplemental life insurance policy (flexible premium variable life
insurance through Security Life of Denver). Albers and the Company acknowledge
that the Company has paid the premium on the supplemental life insurance policy
through December 31, 2003, and that Albers will not be required to reimburse the
Company for any portion of that premium. Although this policy will belong to
Albers, if Albers retains ownership of this policy the Company will reimburse
Albers for the approximate annual premium of $2,520 for the policy for coverage
for the period of January 1, 2004, through December 31, 2004.

 

  6.3.   Supplemental disability insurance policy (through the Principal
Financial Group). Albers and the Company acknowledge that the Company has paid
the premium on the supplemental disability insurance policy through December 31,
2003, and that Albers will not be required to reimburse the Company for any
portion of that premium. Although this policy will belong to Albers, if Albers
retains ownership of this policy the Company will reimburse Albers for the
approximate annual premium of $4,180 for the policy for coverage for the period
of January 1, 2004, through December 31, 2004.

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7.   Stock Options. Albers’ stock options will vest and expire in their normal
course as provided by the Plan and the terms of the agreements governing each
stock option award; provided, however, that Albers will have until the market
close (i.e., 4pm New York City time) on March 31, 2005, to exercise the
following stock option grant:

 

Date Of Grant

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Number Of

Options Granted

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Number Vested

as of Mar. 31, 2003

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Number with Accelerated Vesting

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Number to be

Forfeited

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Exercise Price

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Aug. 28, 2000

 

25,000

 

16,146

  

8,854

  

0

 

$40.41

 

8.   Email and Telephone Access. The Company will allow Albers to retain his
Company email address and have access to the Company’s email system through the
date his employment terminates on March 31, 2003. Through July 31, 2003, the
Company will allow Albers to retain his Company phone number (206-925-6007) and
to access voice messages left for him at this number. Albers will not make any
long distance calls using this phone line except in the course of performing his
duties for the Company.

 

9.   Cell Phone and PC. Albers may keep the laptop and docking station provided
to him by the Company, provided that Albers allows the Company to remove all
existing programs that are currently under license to the Company and the
Company-owned information and data on the laptop. Albers may keep the cell phone
provided to him by the Company, provided that Albers will be responsible for all
charges for such cell phone after his employment terminates on March 31, 2003.

 

10.   Access to Executive Assistant. The Company will allow Albers to use the
services of his executive assistant, Sandra Jones, for a period ending no later
than April 30, 2003.

 

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End of Schedule A

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