Document:

Exhibit 10.32

 

FIRST AMENDMENT

 

 

This FIRST AMENDMENT, made
and entered into as of this 22nd day of December, 2005, supplements,
forms part of, and is subject in all respects to, that certain Consulting
Agreement dated as of January 1, 2002, by
and between Waddell & Reed, Inc. (the “Company”) and Robert L. Hechler (“Consultant”)
(the “Agreement”).  Capitalized terms
used herein, unless otherwise defined, have the meanings specified in the Agreement.

 

WITNESSETH:

 

WHEREAS, the Company and Consultant entered into the Agreement
whereby the Company engaged Consultant as an independent consultant to assist
with the daily business and affairs of the Company; and

 

WHEREAS, the
Agreement commenced on January 1, 2002 (the “Effective Date”) and is effective
for five (5) successive years beginning on the Effective Date; and

 

WHEREAS, the Agreement terminates on December 31, 2006
(the “Termination Date”); and

 

WHEREAS, the Company wishes to retain Consultant’s
services for an additional year beyond the Termination Date; and

 

WHEREAS, Company and Consultant wish to extend the terms
of the Agreement and amend the Agreement to provide for an extension of the Termination
Date.

 

NOW, THEREFORE, in recognition of the mutual promises herein,
and other good and valuable consideration, the parties agree as follows:

 

1.                                       The first sentence of Section 2 of the Agreement
is amended to read as follows:

 

The term of this Agreement is six (6) successive years beginning on the
Effective Date, unless terminated earlier as set forth in this Section 2.

 

2.                                       That all other terms of the Agreement will remain
in full force and effect without amendment or interruption.

 

IN WITNESS WHEREOF,
each of the parties to this Agreement has caused this Agreement to be executed
as of the date first above written.

 

	
  WADDELL
  & REED, INC.

  	
  CONSULTANT

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Daniel P. Connealy

  	
   

  	
  By:

  	
  /s/ Robert L. Hechler

  	
   

  
	
  Daniel P. Connealy

  	
  Robert L. Hechler

  
	
  Senior Vice PresidentExhibit 10.39

 

Summary of
Compensation Arrangements With Executive Officers of the Company

 

I.                                         Named Executive Officer Compensation.                       On December 8, 2005, the Compensation
Committee (the “Committee”) of the Board of Directors of Waddell & Reed
Financial, Inc. (the “Company”) approved the annual base salaries (effective as
of January 1, 2006) of the Company’s executive officers.  The following table sets forth the annual
base salaries of the Company’s Chief Executive Officer and the next four most
highly compensated officers (collectively, the “Named Executive Officers”) for
2006:

 

	
  Named Executive Officer

  	
   

  	
  Salary

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Henry J.
  Herrmann

  Chief Executive Officer

  	
   

  	
  $

  	
  800,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Michael L.
  Avery

  Senior Vice President and Chief Investment Officer

  	
   

  	
  $

  	
  425,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Thomas W.
  Butch

  Senior Vice President and Chief Marketing Officer

  	
   

  	
  $

  	
  400,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Michael D.
  Strohm

  Senior Vice President and Chief Operations Officer

  	
   

  	
  $

  	
  350,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  John E.
  Sundeen, Jr.

  Senior Vice President and Chief Administrative Officer – Investments

  	
   

  	
  $

  	
  350,000

  	
   

  

 

The Company has adopted a supplemental executive retirement plan (the “SERP”)
pursuant to which participants’ accounts are credits with (1) an amount equal
to 4% of his or her base salary, less the amount of the maximum employer
matching contribution allowable that can be made on the participant’s behalf under the Company’s 401(k) plan, and (2)
a non-formula award, as determined by the Committee in its discretion.   For 2005, the Committee designated Mr.
Herrmann as a participant of the SERP and awarded him a non-formula award of
$300,000 on December 8, 2005.  None of
the other Named Executive Officers were eligible to participate in the SERP for
2005.

 

II.                                     2005
Executive Incentive Awards.             Pursuant to the
Company’s 2003 Executive Incentive Plan, as amended and restated (the “EIP”),
eligible participants may receive (1) an annual incentive award of cash, and
(2) an annual incentive award of restricted stock, both based upon the annual
financial performance of the Company.

 

A.                                   Cash
Awards.  On December 8, 2005, the
Committee authorized the payment of annual cash incentive (i.e.,
bonus) awards based on the Company’s financial

 

 

performance for the year ended
December 31, 2005 to executive officers participating in the EIP, which included
Messrs. Herrmann, Butch, Strohm and Sundeen. 
These annual incentive awards were determined based on performance goals
established in March 2005.  As permitted
by the EIP, the Committee exercised its discretion to reduce the amount of the
cash awards payable to Messrs. Herrmann, Butch, Strohm and Sundeen, but in
accordance with the EIP, the reductions did not increase the award amounts for
any other participant.   Mr. Avery did
not participate in the EIP for 2005.  The
following table sets forth the annual cash incentive awards to the Named
Executive Officers for 2005 performance:

 

	
  Named Executive Officer

  	
   

  	
  Cash Award

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Henry J.
  Herrmann

  Chief Executive Officer

  	
   

  	
  $

  	
  1,200,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Michael L.
  Avery

  Senior Vice President and Chief Investment Officer

  	
   

  	
  $

  	
  500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Thomas W.
  Butch

  Senior Vice President and Chief Marketing Officer

  	
   

  	
  $

  	
  400,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Michael D.
  Strohm

  Senior Vice President and Chief Operations Officer

  	
   

  	
  $

  	
  400,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  John E.
  Sundeen, Jr.

  Senior Vice President and Chief Administrative Officer – Investments

  	
   

  	
  $

  	
  350,000

  	
   

  

 

Pursuant
to the Company 1998 Executive Stock Award Plan, as amended and restated,
eligible executives may annually convert all or a portion of their
annual cash incentive award into restricted stock of the Company.  Additionally, the Compensation Committee may,
in its sole discretion, direct that all or a portion of the cash incentive
award payments payable under the EIP be paid in restricted stock.  Pursuant to such discretion, the Committee
directed that 10% of the above referenced cash incentive awards for Messrs.
Butch, Strohm and Sundeen be paid in restricted stock on April 3, 2006.  Awards granted pursuant to an executive’s
election or the Committee’s discretion are granted in accordance with the form
of restricted stock agreement filed as Exhibit 10.6 to the Company’s Quarterly
Report on Form 10-Q for the quarter ended September 30, 2005.

 

B.                                     Restricted
Stock Awards.  On December 8, 2005,
the Committee authorized the payment of the annual incentive awards of restricted
stock based on the Company’s financial performance for the year ended December
31, 2005 to executive officers participating in the EIP, which included Messrs.
Herrmann, Butch, Strohm and

 

 

Sundeen.  These annual incentive awards were determined
based on performance goals established in March 2005.  As permitted by the EIP, the Committee
exercised its discretion to reduce the amount of the restricted stock awards
payable to Messrs. Herrmann, Butch, Strohm and Sundeen, but in accordance with
the EIP, the reductions did not increase the restricted stock award amounts for
any other participant.   As stated above,
Mr. Avery did not participate in the EIP for 2005; the Committee approved Mr.
Avery’s award of restricted stock on February 22, 2006.  The following table sets forth the annual
restricted stock awards to the Named Executive Officers for 2005 performance:

 

	
  Named Executive Officer

  	
   

  	
  Restricted Stock Award

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Henry J.
  Herrmann

  Chief Executive Officer

  	
   

  	
  100,000 shares

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Michael L.
  Avery

  Senior Vice President and Chief Investment Officer

  	
   

  	
  30,000 shares

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Thomas W.
  Butch

  Senior Vice President and Chief Marketing Officer

  	
   

  	
  30,000 shares

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Michael D.
  Strohm

  Senior Vice President and Chief Operations Officer

  	
   

  	
  25,000 shares

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  John E.
  Sundeen, Jr.

  Senior Vice President and Chief Administrative Officer - Investments

  	
   

  	
  25,000 shares

  	
   

  

 

These shares will be granted on
April 3, 2006 pursuant to the Company 1998 Stock Incentive Plan, as amended and
restated, in accordance with the form of restricted stock agreement filed as
Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the quarter
ended September 30, 2005.Exhibit 10.1

 

February 24, 2006

 

United States Trust Company of New York

114 West 47th Street

New York, New York 10036

Attention:  Norman P. Goldberg

 

Ladies and
Gentlemen:

 

This letter
agreement sets forth the terms and conditions upon which The DIRECTV Group,
Inc. (“DTV”) has agreed to purchase from the General Motors Special
Hourly Employees Pension Trust (the “GM Hourly Trust”), the General
Motors Special Salaried Employees Pension Trust (the “GM Salaried Trust”)
and the Sub-Trust of the General Motors Welfare Benefit Trust (the ”GM
VEBA)” and, together with the GM Hourly Trust and the GM Salaried Trust,
the ”GM Plans”), and the GM Plans have agreed to sell to DTV,
shares of common stock, par value $0.01 per share, of DTV (the “Common Stock”).

 

On the basis of
the representations and warranties and subject to the conditions set forth
herein, at the Closing referred to below, the GM Plans will sell to DTV, and
DTV will purchase from the GM Plans, an aggregate of 100 million shares of
Common Stock (the “Shares”) at a purchase price per share (the ”Purchase
Price”) equal to $15.50 per share or $1,550,000,000 in the aggregate, as
set forth on Appendix A attached hereto.

 

The closing of the
purchase and sale contemplated hereby (the “Closing”) shall take place at
or about 10:00 A.M., Eastern Time, on March 3, 2006.

 

The aggregate
Purchase Price for the Shares shall be paid by wire transfer of immediately
available funds to an account or accounts designated in writing by United
States Trust Company of New York, as trustee of each of the GM Plans (the “Trustee”).  Delivery of the Common Stock shall be made by
book-entry transfer of such shares from the account of the GM Plans to the
treasury account of DTV at Computershare Investor Services, or otherwise as DTV
and the Trustee shall mutually agree.

 

Each of the GM
Plans represents and warrants to DTV that (i) this agreement has been duly
authorized, executed and delivered by the Trustee on its behalf, (ii) it
has full power, right and authority to sell the Shares to be sold by it,
(iii) the sale of the Shares to be sold by it hereunder and the compliance
by it with all of the provisions of this agreement and the consummation of the
transactions herein contemplated will not conflict with or result in a breach or
violation of any of the terms or provisions of, or constitute a default under,
any statute, agreement or instrument to which it is a party or by which it is
bound or to which any of its property or assets is subject, nor will such
action result in any violation of the provisions of the trust agreement
establishing it or any statute or any order, rule or regulation of any court or
governmental agency or body having jurisdiction over it or its property, (iv)
it has good and valid title to the Shares to be sold by it and that, upon the
delivery of and payment for such Shares as herein contemplated, DTV will
receive good and valid title to such Shares free and clear of any mortgage,
pledge, lien, security interest or encumbrance, and (v) it has not engaged
any broker or other placement agent in connection with the sale of the Shares.

 

 

The Trustee
represents and warrants to DTV that (i) it has been appointed by the Named
Fiduciary (as that term is defined in the Employee Retirement Income Security
Act of 1974, as amended) to manage the shares of Common Stock held by the GM
Plans and to exercise all rights, powers and privileges appurtenant to such
shares (subject to the authority of the Named Fiduciary to terminate such
appointment and appoint one or more other investment managers for the shares)
and (ii) it has full power, right and authority to execute and deliver this
agreement for the account and on behalf of each of the GM Plans and to so bind
each of the GM Plans.

 

DTV represents and
warrants to each of the GM Plans that (i) this agreement has been duly
authorized, executed and delivered by it, (ii) it has full power, right and
authority to purchase the Shares pursuant to this agreement and (iii) the
compliance by DTV with all of the provisions of this agreement and the
consummation of the transactions herein contemplated will not conflict with or
result in a breach or violation of any of the terms or provisions of, or
constitute a default under, any indenture, mortgage, deed of trust, loan
agreement or other material agreement or instrument to which DTV is a party or
by which DTV is bound or to which any of the property or assets of DTV is
subject, nor will such action result in any violation of the provisions of the
Certificate of Incorporation or By-laws of DTV.

 

DTV agrees that
the sale of the Shares by the GM Plans hereunder shall not constitute a “Public
Transfer” or “Negotiated Transfer” for purposes of Section 3(a) of the First
Amended and Restated Registration Rights Agreement, dated as of March 12, 2003,
by and among DTV (as successor to certain rights and obligations of General
Motors Corporation pursuant to the Succession Agreement, dated
December 22, 2003) and the Trustee, as trustee of each of the GM Plans.

 

This agreement
constitutes the entire agreement, and supersedes all prior agreements and
understandings, whether oral or written, between the parties hereto with
respect to the subject matter hereof. 
Any term of this agreement may be amended or modified only by the
written agreement of the parties.  No
term or condition of this agreement may be waived, except by a writing executed
by the party against whom enforcement of any such waiver is being sought.  No waiver by either party hereto of any term
or condition of this agreement, in any one or more instances, shall operate as
a waiver of such term or condition at any other time.

 

This agreement
shall be governed by and construed in accordance with the laws of the State of
New York applicable to contracts made and performed in such State irrespective
of the choice of laws principles of the State of New York other than Section
5-1401 of the General Obligations Law of the State of New York.

 

 

This agreement may
be executed in counterparts, and shall be deemed to have been duly executed and
delivered by all parties when each party has executed a counterpart hereof and
delivered an original or facsimile copy thereof to the other party.  Each such counterpart hereof shall be deemed
to be an original, and all of such counterparts together shall constitute one
and the same instrument.

 

	
   

  	
  THE DIRECTV GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
  AGREED TO AND ACCEPTED:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  GENERAL MOTORS SPECIAL HOURLY

  	
   

  
	
  EMPLOYEES PENSION TRUST

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  United States Trust Company

  	
   

  	
   

  
	
   

  	
  of New York, as Trustee

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By: 

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  GENERAL MOTORS SPECIAL SALARIED

  	
   

  
	
  EMPLOYEES PENSION TRUST

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  United States Trust Company

  	
   

  	
   

  
	
   

  	
  of New York, as Trustee

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By: 

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SUB-TRUST OF THE GENERAL MOTORS

  	
   

  
	
  WELFARE BENEFIT TRUST

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  United States Trust Company

  	
   

  	
   

  
	
   

  	
  of New York, as Trustee

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By: 

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

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