Document:

Exhibit 10.100

 

Private
& Confidential

 

 

	
   

  	
  Dated 22 April 2005

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CROWN MEDIA INTERNATIONAL, LLC

  	
  (1)

  
	
   

  	
   

  	
   

  
	
   

  	
  and

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  JEFF HENRY

  	
  (2)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Compromise Agreement

  	
   

  

 

 

Contents

 

	
  Clause

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  1

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  2

  	
  Termination

  	
   

  
	
   

  	
   

  	
   

  
	
  3

  	
  Severance
  Payment

  	
   

  
	
   

  	
   

  	
   

  
	
  4

  	
  RSU Plan

  	
   

  
	
   

  	
   

  	
   

  
	
  5

  	
  Tax
  indemnity

  	
   

  
	
   

  	
   

  	
   

  
	
  6

  	
  Secrecy

  	
   

  
	
   

  	
   

  	
   

  
	
  7

  	
  Confidential Information

  	
   

  
	
   

  	
   

  	
   

  
	
  8

  	
  Company
  property

  	
   

  
	
   

  	
   

  	
   

  
	
  9

  	
  Breach
  of agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  10

  	
  Compensation/damages
  payable to the Employee

  	
   

  
	
   

  	
   

  	
   

  
	
  11

  	
  Legal
  expenses

  	
   

  
	
   

  	
   

  	
   

  
	
  12

  	
  Settlement

  	
   

  
	
   

  	
   

  	
   

  
	
  13

  	
  Warranty

  	
   

  
	
   

  	
   

  	
   

  
	
  14

  	
  Compliance with
  Legislation

  	
   

  
	
   

  	
   

  	
   

  
	
  15

  	
  Miscellaneous

  	
   

  
	
   

  	
   

  	
   

  
	
  16

  	
  Whole
  agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule 1
  Certificate by Adviser

  	
   

  
	
   

  	
   

  
	
  Schedule 2
  Confidentiality

  	
   

  

 

 

THIS AGREEMENT
is dated 26 April 2005 and is made

 

BETWEEN:

 

(1)                                  Crown Media International, LLC of 6430 South Fiddlers Green Circle,
Greenwood Village, CO 80111, USA (the “Company”); and

 

(2)                                  Jeff Henry of 9 Fairmile Lane, Cobham, Surrey, United
Kingdom KT1112DL (the “Employee”);

 

WHEREAS:

 

(A)                              Employee has an employment agreement with the
Company, dated 12 March 2004 as amended by a letter dated 9 July 2004, for his
services as Managing Director and Chief Executive of Crown Media International,
Europe, Middle East and Africa, as well as the Chief Executive of Crown Entertainment
Limited (“the Employment Contract”).

 

(B)                                The Employment Contract provides for
termination of the Employment Contract and Employee’s employment with the
Company in the event of the sale of Company by its parent, Crown Media
Holdings, Inc.

 

(C)                                The Company has been sold by Crown Media
Holdings, Inc. effective 26 April 2005 (the “Termination Date”) and,
accordingly, the Employment Contract and Employee’s employment with the Company
has been terminated on the Termination Date.

 

(D)                               The Employee and the Company have agreed to
compromise any claims arising from the Employment Contract and Employee’s
employment with the Company on the terms hereinafter provided.

 

(E)                                 The Company is entering into this agreement
for itself and as agent for all its Associated Companies and is duly authorised
on that behalf.

 

IT IS AGREED as follows:

 

1                                         Definitions

 

1.1                                 In this Agreement references to specific
clauses are references to clauses in this Agreement unless otherwise stated
and:

 

“Associated Company” means
an associated company (within the meaning of section 416(1) Income and
Corporation Taxes Act 1988) of the Company.

 

“Employment” means the
Employee’s employment with the Company, the terms of which are set out in the
Employment Contract.

 

3

 

“Employment Contract” means
the contract of employment more particularly described in recital (A).

 

“PAYE Regulations” means the
Income Tax (Employment) Regulations 1993 (as amended, extended or replaced from
time to time).

 

“RSU Agreements” mean the
2004 Restricted Stock Unit Agreement dated as of May 28, 2004 between Employee
and Crown Media Holdings, Inc. and the Amended and Restated Restricted Stock
Unit Agreement between Employee and Crown Media Holdings, Inc. dated as of May
29, 2004.

 

“Severance Payment” means
the payment more particularly described in clause 3.1.

 

“Termination Date” means the
date more particularly described in recital (C).

 

2                                         Termination

 

2.1                                 The Employee shall be paid any outstanding
salary which has accrued up to the Termination Date, less normal deductions.

 

3                                         Severance Payment

 

3.1                                 Subject to the Employee’s compliance with his
obligations under this Agreement and the Employment Contract, the Company shall
pay to the Employee and without admission of Liability the sum of £954,971 (the
“Severance Payment”) to be paid free of tax subject to clauses 3.2 and 3.3
below, as compensation for his loss of employment. The Severance Payment is
made of the following elements:

 

3.1.1                        £767,597 which constitutes the present value
of the remaining salary which would have been payable to Employee under
Paragraph 3(a) of the Employment Agreement;

 

3.1.2                        £175,523 which constitutes the present value
of the remaining bonuses which would have been payable to Employee under Paragraph
3(b) of the Employment Agreement.

 

3.1.3                        A payment of £11,851 for earned holiday pay.

 

The Severance Payment will
be paid on or before 10 May 2005.

 

3.2                                 The Severance Payment shall be subject to any
deductions the Company is required by law to make. These will include (without
limitation) the income tax on the balance of the Severance Payment in excess of
£30,000 in accordance with PAYE Regulations and to the extent applicable,
primary Class 1 national insurance contributions.

 

3.3                                 Any further liability to tax on the Severance
Payment and on any other benefits provided to the Employee pursuant to this
Agreement shall be the Employee’s alone.

 

4

 

4                                         RSU Plan

 

4.1           The Employee’s Restricted Stock Units
shall be settled in accordance with the provisions of the RSU Agreements.

 

5                                         Tax indemnity

 

5.1                                 The Company makes no warranty as to the
taxable status of the Severance Payment and accordingly the Employee undertakes
that if the Company or any of its Associated Companies is called upon to
account to the Inland Revenue for any income tax, national insurance
contributions, interest and/or penalties thereon arising in respect of the
payments made and benefits provided under this Agreement, other than the income
tax deducted under clause 3 (such income tax, national insurance contributions,
interest and/or penalties referred to in this Agreement as the “excess tax”),
and if the Company or any other company pays the excess tax to the Inland
Revenue, the Employee will, at the written request of such company and provided
the Employee has received notification of the amount due within 14 days of the
Company becoming aware of the claim, immediately pay to such company an amount
equal to the excess tax (on an after-tax basis).

 

6                                         Secrecy

 

6.1                                 The Employee undertakes that he will not,
whether directly or indirectly, make, publish or otherwise communicate any
disparaging or derogatory statements, whether in writing or otherwise,
concerning the Company or any of its Associated Companies or any of its or
their officers agents or employees. The Company undertakes that Crown Media
Holdings, Inc. and its then-current Associated Companies will not, whether
directly or indirectly, make, publish or otherwise communicate any disparaging
or derogatory statements, whether in writing or otherwise, concerning the
Employee. Company cannot assume responsibility for statements made by Company
or entities that become Associated Companies following any change of control of
Company.

 

6.2                                 The Employee and Company agree to keep the
terms on which the Employment is terminated strictly confidential and agree not
to disclose, communicate or otherwise make public the same to anyone (save to
professional advisers, immediate family, relevant tax authorities and otherwise
as may be required to be disclosed by law).

 

7                                         Confidential information

 

7.1                                 The Employee undertakes to abide by the
confidentiality provisions set out at Schedule 2 to this Agreement, as well as
those in the Employment Contract.

 

5

 

7.2                                 In consideration of the undertaking given by
the Employee at clause 7.1 above, the Company shall pay to the Employee the sum
of £100 subject to deductions for income tax and national insurance
contributions as required by law.

 

8                                         Company property

 

8.1                                 The Employee represents and confirms that he
has returned on or before the Termination Date to the Company all property,
equipment, records, correspondence, documents, files and other information
(whether originals, copies or extracts) belonging to the Company or any of its
Associated Companies and that he has not retained any copies. In addition the
Employee will provide the Company with all necessary information as will allow
such person as the Company may determine to access any computer equipment owned
by the Company or any Associated Company and used by the Employee.

 

9                                         Breach of agreement

 

9.1                                 The Employee further agrees that if, having
entered into this Agreement he materially breaches the provisions of clauses 6,
7 or 8 he will, without prejudice to clause 12 below and any other remedies
that the Company may have and which arise from such breach, forthwith:

 

9.1.1                        repay (or the Company will retain if not
already at that time already paid) the Severance Payment referred to at clause
3 to the Company; and

 

9.1.2                        indemnify the Company against all costs
(legal or otherwise) incurred by the Company in recovering or seeking to
recover the Severance Payment from him.

 

10                                  Compensation/damages payable
to the Employee

 

10.1                           Notwithstanding the provisions of this
Agreement in the event that the Company is ordered to pay any compensation or
damages to the Employee by an employment tribunal or civil court, the Employee
agrees forthwith to pay an equivalent sum to the Company or to repay the
Severance Payment referred to in clause 3, whichever is the lesser amount.

 

11                                  Legal expenses

 

11.1                           The Company shall on the production of a
valid VAT invoice certified to be a true copy addressed to the Employee but
marked payable by the Company pay to the Employee’s solicitors, up to a maximum
sum of £500 plus VAT in respect of the Employee’s legal expenses to the extent
these are incurred in connection with the termination of the Employment and/or
relate exclusively to the negotiation and preparation of this Agreement.

 

6

 

12                                  Settlement

 

12.1                           The Employee acknowledges that he has
carefully considered the facts and circumstances relating to the Employment and
the termination thereof and agrees that he will not institute any proceedings
or complaints before an employment tribunal or court arising out of or in
connection with the Employment or its termination in respect of any of the
following specific claims.

 

12.1.1                  Any claim for wrongful dismissal or any other
claim for breach of contract (including any claim for a bonus);

 

12.1.2                  any claim for unfair dismissal under Part X
of the Employment Rights Act 1996;

 

12.1.3                  any claim for a statutory redundancy payment
pursuant to section 135 of the Employment Rights Act 1996;

 

12.1.4                  any claim arising out of contravention or
alleged contravention of Regulation 10 or Regulation 11 of the Transfer of
Undertakings (Protection of Employment) Regulations 1981;

 

12.1.5                  any claim under the Sex Discrimination Act
1975;

 

12.1.6                  any claim under the Equal Pay Act 1970;

 

12.1.7                  any claim under section 54 of the Race
Relations Act 1976;

 

12.1.8                  any claim under the Disability Discrimination
Act 1995;

 

12.1.9                  any claim under any provision of directly
applicable European law;

 

12.1.10            any claim under any provision of the Human
Rights Act 1998; and

 

12.1.11            any other claim whether at common law or
statute.

 

12.2                           The Employee agrees that the terms of this
Agreement are in full and final settlement and any other claims whether at
common law or otherwise and in any jurisdiction in the world which he may have
against the Company or any Associated Company or its or their officers,
directors, employees, shareholders or agents arising out of or connected with
his Employment or its termination or the Employment Contract or its
termination. The Employee hereby agrees that, except for the sums and benefits
referred to in this Agreement and any amounts payable pursuant to the Deed of
Restrictive Covenants between Company and Employee, dated 23rd February 2005,
no other sums or benefits are due to him from the Company or any Associated
Company.

 

13                                  Warranty

 

13.1                           The Employee represents and warrants:

 

7

 

13.1.1                  That he has received advice from a “relevant
independent adviser” (“the Adviser”) (for the purposes of the legislation
specified in clause 14 below) as to the terms and effect of this Agreement (and
in particular its effect on the Employee’s ability to pursue his rights before
an employment tribunal) and that he will procure that the Adviser forthwith
provides a certificate in the form of Schedule 1 to this Agreement and that in
such Schedule the name and other relevant details of the Adviser are correctly
set out;

 

13.1.2                  that he has raised with the Adviser all facts
and issues relevant to the Employment and its termination

 

13.1.3                  that Adviser has advised him that the claims
and prospective proceedings listed at clause 14 are all of the claims and
prospective proceedings that he reasonably believes he has against the Company,
any Associated Company or their, officers, agents and employees arising out of
or in connection with his Employment (including the termination thereof) and
that he has no other claim; and

 

13.2                           The Company enters into this Agreement in
reliance upon the warranty given by the Employee at clause 13.1.  In the event that the Employee brings any
proceedings relating to his Employment (including its termination) against the
Company, any Associated Company or its or their officers, employees or agents
the Employee agrees that he will repay to the Company on demand the Severance
Payment (less any statutory redundancy payment) and that sum will be
recoverable as a debt.

 

14                                  Compliance with Legislation

 

The conditions regulating
compromise agreements contained in:

 

14.1                           Section 203(3) Employment Rights Act 1996;

 

14.2                           section 77(4A) Sex Discrimination Act 1975;

 

14.3                           section 72(4A) Race Relations Act;

 

14.4                           section 288(2B) Trade Union and Labour
Relations (Consolidation) Act 1992;

 

14.5                           section 9(3) Disability Discrimination Act
1995;

 

14.6                           regulation 35(4) of the Working Time
Regulations 1998;

 

14.7                           section 49(4) of the National Minimum Wage
Act 1998;

 

are intended to be and have
been satisfied.

 

8

 

15           Miscellaneous

 

15.1                           This Agreement shall be governed by and
interpreted in accordance with English Law

 

15.2                           Subject to any provision which specifically
refers to an Associated Company and which is intended to confer benefits on any
such Associated Company, no term of this Agreement is enforceable by a person
who is not party to it.

 

16                                  Whole agreement

 

16.1                           This Agreement sets out the entire agreement
between the parties and supersedes all prior discussions between them or their advisers
and all statements, representations, terms and conditions, warranties,
guarantees, proposals, communications and understandings whenever given and
whether orally or in writing. If signed by all parties to the Agreement it
shall then, notwithstanding being marked “without prejudice” or “without
prejudice subject to contract” and subject to any written statement to the
contrary, be treated as an open and binding agreement.

 

16.2                           Notwithstanding the other provisions of this
Agreement, it is agreed that nothing herein shall affect the obligations of the
Company and/or the Employee pursuant to the Deed of Restrictive Covenants
between them, dated 23rd February 2005.

 

IN WITNESS
whereof this Agreement has been executed the day and year first above written.

 

	
  /s/
  Charles Stanford

  	
   

  
	
  SIGNED by Charles Stanford

  	
  )

  
	
   

  
	
  for
  and on behalf of the Company

  	
  )

  
	
   

  
	
  dated 4/26/05

  	
  )

  
	
   

  
	
  Witnessed
  by

  	
  W.
  Aliber

  	
  (name)

  
	
   

  	
   

  
	
  /s/
  W. Aliber

  	
  (signature)

  
	
   

  	
   

  
	
  1215
  W 64th Street

  	
  (address)

  
	
   

  	
   

  
	
  Kansas
  City, MO 64113

  	
   

  
				

 

9

 

	
  SIGNED
  by Jeff Henry

  	
  )

  
	
   

  
	
  the
  Employee

  	
  /s/
  Jeff Henry

  	
  )

  
	
   

  
	
  dated   25/4/05

  	
  )

  
	
   

  
	
  Witnessed
  by

  	
  LISA
  GRAVENER

  	
  (name)

  
	
   

  	
   

  
	
  /s/
  Lisa Gravener

  	
  (signature)

  
	
   

  	
   

  
	
  10
  ROTHERWOOD CLOSE

  	
  (address)

  
	
   

  	
   

  
	
  WIMBLEDON,
  SW20 8RX

  	
   

  
				

 

10

 

Schedule 1

 

Certificate
by Adviser

 

I confirm that I have given independent
legal advice to Jeff Honry as to the terms and effect of the above Agreement
and in particular its effect on my client’s ability to pursue his rights before
an employment tribunal.

 

I confirm that I am a Solicitor of the Supreme
Court holding both at the date of the above Agreement and at the date the said
advice a current practising certificate and that there is and was at the time I
gave the advice referred to above in force a policy at insurance which covers the risk of a claim by Adam Woods in respect of any
loss arising in consequence of that
advice

 

	
  Signed:

  	
  /s/ Timothy
  William Osborne

  	
   

  
	
   

  
	
  Print Name:

  	
  TIMOTHY
  WILLIAM OSBORNE

  	
   

  
	
   

  
	
  Name and
  Address of Firm

  	
  WIGGIN
  OSBORNE FULLERLOVE

  	
   

  
	
   

  
	
  95 THE PROMENADE

  	
   

  
	
   

  
	
  CHELTENHAM

  	
   

  
	
   

  
	
  GL50 1 HH

  	
   

  

 

11

 

Schedule
2

 

Confidentiality

 

1                                          The
Employee shall not at any time (without limit) after the Termination Date directly
or indirectly.

 

(a)                                  divulge
or communicate to any person, company, business entity or other organisation;

 

(b)                                 use
for his own purposes or for any purposes other than those of the Company or any
Associated Company; or

 

(c)                                  through
any failure to exercise due care and diligence, cause any unauthorised
disclosure of

 

any trade
secrets or Confidential Information relating to the Company or any Associated
Company, but so that these restrictions shall cease to apply to any information
which shall become available to the public generally otherwise than through the
default of the Executive.

 

“Confidential Information” shall mean details
of suppliers and their terms of business, details of customers and their
requirements, the prices charged to and terms of business with customers,
marketing plans and sales forecasts, financial information, results and
forecasts (save to the extent that these are included in published audited
accounts), any proposals relating to the acquisition or disposal of a company
or business or any part thereof or to any proposed expansion or contraction of
activities, details of employees and officers and of the remuneration and other
benefits paid to them, information relating to research activities, inventions,
secret processes, designs, software, formulae and product lines, any
information which the Employee is told is confidential and any information
which has been given to the Company or any Associated Company in confidence by
customers, suppliers or other persons.

 

2                                          All
notes, memoranda, records, lists of customers and suppliers and employees,
correspondence, documents, computer and other discs and tapes, data listings,
codes, designs and drawings and other documents and material whatsoever
(whether made or created by the Employee or otherwise) relating to the business
of the Company or any Associated Company (and any copies of the same):

 

(a)                                  shall
be and remain the property of the Company or the relevant Associated Company;
and

 

(b)                                 shall
be handed over by the Employee to the Company or to the relevant Associated
Company on or before the Termination Date.

 

12Exhibit 10.1

 

CONSULTING
AGREEMENT

 

This
Consulting Agreement (this “Agreement”) is made to be effective as of May 25,
2005 (the “Effective Date”) by and between Waddell & Reed Financial, Inc.,
a Delaware corporation (the “Company”), and Keith A. Tucker (“Consultant”).

 

WHEREAS,
Consultant has served as a Chief Executive Officer and as Chairman of the Board
of Directors of the Company and has substantial knowledge and expertise
concerning the business and affairs of the Company;

 

WHEREAS,
Consultant’s employment with the Company terminated effective May 25,
2005;

 

WHEREAS, the
Company desires to engage Consultant as an independent consultant to assist
with the daily business and affairs of the Company and Consultant desires to
provide such consulting services to the Company and its Affiliates;

 

NOW,
THEREFORE, in consideration of the agreements set forth below and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged by the parties, the Company and the Consultant agree as follows:

 

1.                                       Consulting Services.

 

(a)                                  The
Company hereby engages Consultant, and Consultant hereby agrees to be engaged
by the Company, as an independent business consultant on the terms set forth
herein.  Consultant will provide the
Company and its Affiliates (as defined below) with managerial and advisory
services, including, without limitation, managerial and advisory services in
the mutual fund, mutual fund underwriting and distribution and investment
advisor financial planning areas (collectively, the “Services”).  Consultant shall provide Services only at the
request and under the direction of the Company’s board of directors.  Consultant will provide the Services at
mutually agreeable times and at mutually agreed locations; provided, however,
that in no event shall Consultant be required to provide Services in excess of (i) an
aggregate of 325 hours during the first year of the term of this Agreement, (ii) an
aggregate of 250 hours during the second year of the term of this Agreement,
and (iii) an aggregate of 200 hours during each following year during the
term of this Agreement.  In the event
that the Consultant’s cooperation is requested pursuant to Section 8
of this Agreement, then each hour that the Consultant spends cooperating
pursuant to Section 8 shall reduce the aggregate number of hours
that Consultant is required to provide Services for the year in which the
cooperation is requested;  provided,
however, that Consultant’s obligations under Section 8 of this
Agreement are not limited by the aggregate limits on hours for the Services set
forth in this Section 1, nor shall there
be any additional payments for cooperation pursuant to Section 8 of
this Agreement. As used herein, “Affiliates” means any other person or entity
controlling, controlled by or under common control with the Company.

 

(b)                                 Consultant
may accept engagements by or employment with a third party during the term of
this Agreement as long as Consultant continues to provide

 

 

the
Services as requested by the Company and otherwise complies with the terms and
conditions of this Agreement.

 

2.                                       Term.  The term of this Agreement is eight (8) successive
years beginning on the Effective Date, unless terminated earlier as set forth
in this Section 2. 
Consultant may terminate this Agreement voluntarily at any time upon no
less than thirty (30) days prior written notice to the Company.  This Agreement shall terminate automatically
with no action on the part of either party upon the occurrence of any of the
following:

 

(a)                                  Consultant
dies;

 

(b)                                 Consultant
becomes disabled and unable to perform his duties under this Agreement for an
aggregate of one hundred fifty (150) days within any one hundred eighty (180)
day period (exclusive of the period referred to in the first sentence of the following
paragraph);

 

(c)                                  the Company’s Board of Directors terminates this Agreement
for Cause;  or

 

(d)                                 Consultant
terminates this Agreement due to the Company’s material breach of this
Agreement that is not cured within 15 days of receipt of written notice thereof
from the Consultant.

 

For purposes of this Agreement, Consultant will be “disabled and unable
to perform his duties under this Agreement” only if the events described in
clause (b) of Section 2 have occurred and the Company’s Board of
Directors determines, in good faith, based on medical evidence reasonably
acceptable to it, that Consultant has become physically or mentally disabled
for an additional period of one hundred twenty (120) days in the subsequent one
hundred eighty (180) day period.

 

For purposes
of this Agreement, “Cause”‘ is defined to mean any of:  (1) an act of fraud, dishonesty or
embezzlement by Consultant against the Company; (2) the Consultant’s
willful commission of an act intending to cause, and causing, material damage
to the Company; (3) Consultant’s willful refusal to perform his duties
under this Agreement which continues for a period of ten days after written
notice thereof;  (4) the conviction
of the Consultant for a felony crime involving moral turpitude; or (5) Consultant’s
material violation of Sections 5, 6, 7 or 8 hereof that is not cured within 15
days of receipt of written notice thereof from the Company.

 

3.                                       Payments, Fees and Expenses.

 

(a)                                  On
the business day immediately after the expiration of the Consultant’s unexercised
right to revoke the General Release (the “Revocation Expiration Date”),
Consultant shall be paid a lump sum cash amount of (i) $3,000,000 plus (ii) his
base salary as an employee of the Company through the date hereof, accrued
vacation pay and $470,137, representing his pro rata target bonus for 2005.

 

(b)                                 From
the Effective Date until this Agreement terminates, Consultant will be paid
fees for the Services (collectively, the “Consulting Fees”) of

 

2

 

$375,000 per year, payable
monthly in arrears.   In the event of a
termination pursuant to clause (d) of Section 2, all amounts
that would thereafter have been paid during the full term of this Agreement
shall be immediately paid in cash lump sum, and health insurance benefits shall
continue per Section 4(a) hereof (but office/support staff benefits
per Section 4(b) shall be terminated).

 

(c)                                  If
the Company requests Consultant to incur any out-of-pocket business expenses in
connection with providing the Services, the Company shall reimburse Consultant
for such documented expenses.  Upon the
termination of this Agreement, and except for the obligation to pay consulting
fees and health insurance benefits in the event of a termination pursuant to
clause (d) of Section 2 as provided in Section 3(b), the
Company shall have no obligation to pay Consultant for any Services or
reimburse any expenses of Consultant hereunder, except for the payment of
Consulting Fees for Services rendered or reasonable out-of-pocket expenses
incurred through the effective date of such termination.

 

(d)                                 The
payments and Consulting Fees paid pursuant to this Agreement shall be made
without any withholdings or deductions, including without limitation,
deductions or withholdings for social security, Medicare or income taxes,
unless otherwise required by law. 
Consultant will be responsible for and will pay any and all taxes owing
in respect of the payments and Consulting Fees paid hereunder and will
indemnify, defend and hold harmless the Company against all such taxes and will
comply with all governmental regulations with respect thereto, including the
filing of all necessary returns and reports:

 

4.                                       Other Rights.

 

(a)                                  Beginning
on the Effective Date, Company agrees to provide health insurance coverage, on
terms no less favorable than are in effect for senior executives of the
Company, for Consultant and his spouse, if any, during the term of this
Agreement and, unless this Agreement is terminated for Cause, thereafter until
the death of Consultant and his spouse, if any; provided, however, that in no
event shall the Company be responsible for health insurance coverage in excess
of what it pays for senior executives of the Company generally per year.

 

(b)                                 During
the term of the Agreement, Company agrees to provide an office and support
staff in a mutually agreeable location; provided, however, that in no event
shall the Company be responsible for office, equipment, supplies, computer, cell phone and support staff costs in excess of
$100,000 per year.  In the event that
Consultant’s assistant prior to the date of this Agreement is still employed by
the Company at such time and is willing to act in such capacity, such assistant
shall be available to Consultant on a priority basis for the three month period
beginning the Effective Date, with the compensation and out of pocket costs of
such assistant during such time being deducted from the $100,000 allowance
provided in the first year of this Agreement.

 

3

 

(c)                                  The
parties acknowledge that in connection with the termination of Consultant’s
employment and in consideration of Consultant’s agreements hereunder and other
good and valuable consideration, the Company has agreed to, and has previously
approved, effective on the Revocation Expiration Date, (i) the retention
by Consultant of 198,189 shares of unvested restricted Company Class A
common stock granted to Consultant pursuant to the Company 1998 Stock Incentive
Plan, as amended and restated or the Company 1998 Executive Deferred
Compensation Stock Award Plan, as amended and restated (which represents all
shares of outstanding unvested restricted Company Class A common stock
granted to Consultant in connection with his employment by the Company), the
vesting of which shall be on the same schedule as Consultant had prior to
termination of employment but subject to the continuing performance by
Consultant of services to the Company as set forth in this Agreement during
such vesting schedule, (ii) the participation by Consultant in the Company’s
Stock Option Restoration Program for 2005, and (iii) that Consultant’s
termination of employment shall be considered to be an “Early Retirement” (for
such options as such concept is relevant) 
for purposes of all outstanding options held by him prior to his
termination.  The parties acknowledge
that, upon the Effective Date, Consultant is fully vested in his account Company’s Supplemental Executive Retirement Plan (the “SERP”)
and is entitled to receive the distribution of the accrued balance of
$2,595,239.66 in such account in accordance with all available elections, as
provided in the SERP.

 

5.                                       Confidential Information.

 

(a)                                  As
used herein, “Confidential Information” means all confidential or proprietary
information, whether oral or written, now or hereafter developed, acquired or
used by the Company and relating to the Company’s business, or that of its
Affiliates, that is not generally known to others in the Company’s area of
business, including, without limitation (to the extent confidential): (1) any
trade secrets, work product, processes, analyses, know-how or other
intellectual property of the Company; (2) the Company’s advertising,
product development, strategic and business plans and information; (3) the
prices at which the Company has sold or offered to sell its products or
services; and (4) the Company’s financial statements and other financial
information.

 

(b)                                 In
the course of performing services for the Company prior to the date hereof as
an employee of the Company and subsequent to the date hereof under this
Agreement, Consultant has received or may receive or have access to
commercially valuable Confidential Information. 
Consultant acknowledges and agrees that the Confidential Information (to
the extent it can be owned) is and will be the Company’s sole and exclusive
property.  Consultant will not use any
Confidential Information for his own benefit or disclose any Confidential
Information to any third party (except in the course of performing the Services
under this Agreement), either during or subsequent to the term of this
Agreement.  At the earlier of the
termination of this Agreement or the Company’s request, Consultant will
promptly deliver to the Company all documents, computer disks and other
computer storage devices, and other papers and materials (including all copies
thereof in whatever form) containing or incorporating any Confidential
Information or otherwise relating to in any way to the Company’s business, or
that of its Affiliates, that are in his possession or under his control.  It is understood

 

4

 

and agreed that the
Confidentiality Agreement dated March 2, 1998 will continue to be binding
upon the Consultant in accordance with its terms, and that the Change of
Control Agreement dated December 14, 2001 by and between the Company and
Consultant is terminated; provided, however, that in accordance with the terms
of the Change of Control Agreement, any and all confidentiality provisions thereof
shall survive such termination.

 

6.                                       Covenant Not to Compete.

 

(a)                                  In
consideration of the Company’s payments pursuant to Section 3 of
this Agreement, during the term of this Agreement and Consultant’s receipt of
Confidential Information, Consultant hereby agrees that, during the period
beginning on the Effective Date and ending one year after termination of this
Agreement, he will not (except in the course of performing his authorized
duties for the Company under this Agreement), directly or indirectly, on his
own behalf or as an officer, director, employee, consultant or other agent of,
or as a stockholder, partner or other investor in, any person or entity (other
than the Company or its Affiliates):

 

(1)                                  engage
in the mutual fund industry to the extent it materially overlaps with the
predominant markets of the Company (a “Competing Business”) within the United
States of America (the “Territory”);

 

(2)                                  directly
or indirectly influence or attempt to influence any customer or potential
customer (which for purposes of this Agreement, shall mean any person or entity
to which the Company or any of its Affiliates marketed (outside of general
advertising) its products or services during the six month period prior to any
date of determination) located within the Territory to purchase goods, services
or products related to a Competing Business from any individual, corporation,
partnership, or other entity other than the Company or its Affiliates; or

 

(3)                                  employ,
attempt to employ or solicit for employment in any position related to the
conduct of a Competing Business in the Territory any individual who is an
employee of the Company or any of its Affiliates at such time or was an
employee of the Company or any of its Affiliates during the six months prior to
any date of determination;

 

provided
that the foregoing will not apply to any investment in publicly traded
securities constituting less than ten percent (10%) of the outstanding
securities in such class.

 

(b)                                 Consultant
represents to the Company that he is willing and able to engage in businesses
other than a Competing Business within the Territory and that enforcement of
the restrictions set forth in this Section 6 are not unduly
burdensome to Consultant.  Consultant
acknowledges and agrees that the restrictions set forth in this Section 6
are reasonable as to time, geographic area and scope of activity and do not
impose a greater restraint than is necessary to protect the goodwill, trade
secrets,

 

5

 

information
and other business interests of the Company, and Consultant agrees that the
Company is justified in believing the foregoing.

 

(c)                                  If
the provisions of this Section 6 are found by a court of competent
jurisdiction to contain unreasonable or unnecessary limitations or
restrictions, then such court is hereby directed to reform such provisions to
the minimum extent necessary to cause the limitations or restrictions contained
therein as to time, geographical area and scope of activity to be reasonable
and enforceable.

 

7.                                       Mutual Covenant of Nondisparagement.  In
consideration of the Company’s payments pursuant to Section 3 of
this Agreement and Consultant’s receipt of Confidential Information, Consultant
agrees and promises that, during the term of and after the termination of this
Agreement (regardless of whether the Agreement is terminated for Cause,
voluntarily by Consultant or otherwise), not to make any libelous, disparaging
or otherwise injurious statements about or concerning the Company or any of its
Affiliates, their officers, employees or representatives. In consideration of
the Consultant’s Services pursuant to this Agreement, Company agrees and
promises that, during the term of and after the termination of this Agreement
(regardless of whether the Agreement is terminated for Cause, voluntarily by
Consultant or otherwise), neither the Company, its Affiliates nor any of their
directors, officers or personnel authorized to speak on their behalf shall make
any libelous, disparaging or otherwise injurious statements about or concerning
the Consultant.  Prohibited statements
include any statement that is injurious to the business or business reputation
of any of the Company, its Affiliates or their employees or representatives or
to Consultant, but does not include reasonable statements of disagreement that
the Company or the Consultant makes for the purpose of (i) protecting or
enforcing any of its or his rights or interests hereunder, (ii) compliance
with legal requirements, (iii) correcting incorrect statements made by the
other party or (iv) defending against any claim or claims of the Company
or its Affiliates, or the Consultant, as the case may be, so long as such
statements are not slanderous or libelous and are delivered in terms as would
ordinarily be considered customary and appropriate.

 

8.                                       Consultant’s Cooperation.

 

(a)                                  In
consideration of the Company’s agreement to engage Consultant pursuant to this
Agreement and Consultant’s receipt of Confidential Information, Consultant
agrees and promises that, during the term of and after the termination of this
Agreement (regardless of whether the Agreement is terminated for Cause,
voluntarily by Consultant or otherwise), Consultant shall cooperate in good
faith with the Company at reasonable times and reasonable locations from time
to time as reasonably requested by the Company concerning Consultant’s
information and knowledge with respect to the Company’s business and with
respect to legal proceedings or legal issues involving the Company or its
Affiliates, including, without limitation, making himself available for
depositions and trial as necessary in the opinion of the Company counsel.  The Company will reimburse all reasonable
travel or other expenses as may be incurred by Consultant in assisting the
Company with respect to legal proceedings or legal issues involving the Company
or its Affiliates.  For purposes of this
paragraph, Consultant agrees to use good faith reasonable efforts to make himself available to the Company on at least fifteen
(15)  days’ prior written notice.

 

6

 

(b)                                 Consultant
further agrees that in the event he is subpoenaed or served with any legal
process to produce or divulge, directly or indirectly, any testimony, documents
or other information regarding the Company or any of its Affiliates in any
formal or informal judicial, administrative, or arbitration proceeding
(including any interview, deposition, hearing and/or trial), Consultant will
promptly notify the Company in writing at the address provided in Section 15
below, and deliver a copy of the subpoena or process to that address.

 

9.                                       Relationship of Parties. 
Consultant will perform the Services as an independent contractor.  Consultant will not act or attempt to act or
represent himself directly or by implication as an agent of the Company or any
of its Affiliates or in any manner assume or create, or attempt to create, any
obligation on behalf of, or in the name of the Company or its Affiliates.  Consultant acknowledges and agrees that no
employer-employee relationship exists or is intended to be created between
Consultant and the Company.  Consultant
will indemnify, defend and hold harmless the Company and its Affiliates and its
employees and agents, from and against any and all liabilities, claims, costs
or expenses arising out of or in connection with any personal injury, death or
property damage caused by or arising from any acts or omissions of Consultant
or his agents while performing the Services. 
Consultant hereby expressly waives for himself, his dependents, heirs
and legal representatives, any and all claims to receive any benefit under any
employee benefit plan or program of the Company or its Affiliates, except for
such benefits that Consultant or any such person is entitled to receive in
connection with Consultant’s former employment relationship or current
directorship with the Company or its Affiliates.

 

10.                                 Injunctive Relief. 
Notwithstanding the provisions of Section 18, Consultant
acknowledges and agrees that the Company would be irreparably harmed by any
violation of Consultant’s obligations under Section 5, 6, 7
or 8 and that, in addition to all other rights or remedies available at
law or in equity, the Company will be entitled to seek injunctive and other
equitable relief to prevent or enjoin any such violation, in aid of
arbitration.  In connection therewith,
Consultant agrees to submit to the exclusive personal jurisdiction of the
courts of the State of Kansas for any injunction proceeding initiated by the
Company.  Employee further acknowledges
that venue is proper in courts sitting in Johnson County, Kansas for this
purpose.

 

11.                                 Severability.  In addition to Section 6(c) hereof,
any provision or portion of a provision of this Agreement that is held to be
invalid or unenforceable will be severable, and this Agreement will be
construed and enforced as if such provision, or portion thereof, did not
comprise a part hereof, and the remaining provisions or portions of provisions
will remain in full force and effect.  In
lieu of each invalid or unenforceable provision there will be added
automatically as part of this Agreement a provision as similar in terms to such
invalid or unenforceable provision as may be possible and be legal, valid, and
enforceable.

 

12.                                 Governing Law.  This Agreement will be governed
by and construed and interpreted in accordance with the substantive laws of the
State of Kansas, without giving effect to any conflict-of-laws, rule or
principle that might require the application of the laws of another jurisdiction.

 

7

 

13.                                 Notice.  Any notice required or permitted
under this Agreement must be in writing and will be deemed to have been given
when delivered personally, by facsimile, by overnight courier service, or three
(3) business days after being sent by mail, postage prepaid, to the
parties at the following addresses (or to the attention of another person or
address as a party may provide by notice in accordance with this Section 13).

 

If to the
Company:

 

Waddell &
Reed Financial, Inc.

6300 Lamar
Avenue

Overland Park,
KS 66202

Facsimile:  (913) 236-2379

Attn:  General Counsel

 

If to
Consultant:

 

Keith A. Tucker

3831 Turtle Creek Blvd. Unit 6H

Dallas, TX 75219

 

With a copy
to:

 

Scott Price

Milbank

1 Chase Manhattan Plaza

New York, NY 10005

 

14.                                 Assignment.  The Services to be performed
hereunder are personal to Consultant and may not be assigned by any act or
omission by Consultant, by operation of law or otherwise.  Without the consent or prior knowledge of
Consultant, the Company may assign this Agreement to any Affiliate or to any
person or entity acquiring all or substantially all of the Company’s assets,
its Affiliates’ assets, its business or any of its Affiliates’ business,
whether by merger, acquisition or otherwise, provided, however, that the
Company shall remain secondarily liable for any payments due to Consultant
hereunder.

 

15.                                 Multiple Originals.  This
Agreement may be executed by the parties in separate counterparts, each of
which when executed and delivered is an original.  All counterparts together constitute one
instrument.

 

16.                                 Headings.  The headings of this Agreement
are for reference only, and do not affect the interpretation of this Agreement.

 

17.                                 Attorneys’ Fees.  If any party brings an action to
enforce this Agreement, the prevailing party will be entitled to recover, in
addition to other damages it may be entitled to, its reasonable attorneys’
fees, costs, and necessary disbursements in addition to any other relief to
which that party may be entitled.  A
party shall be considered the prevailing party if (a) it initiated the
action and substantially obtains the relief it sought, either through a
judgment or

 

8

 

arbitration award or the losing party’s voluntary action before
arbitration, trial or judgment, (b) the other party withdraws its action
without substantially obtaining the relief it sought, or (c) such party
did not initiate the action and judgment is entered into for any party, but
without substantially granting the relief sought by the initiating party or
granting more substantial relief to the non-initiating party with respect to
any counterclaim asserted by the non-initiating party in connection with such
action.

 

18.                               Arbitration. 
Subject to Section 10, to the extent that the parties hereto
are unable to resolve their disputes or controversies arising out of or
relating to this Agreement, or the performance, breach, validity,
interpretation or enforcement of this Agreement, Consultant’s Services and/or
termination, including, without limitation, any and all claims or causes of
action which may arise or be asserted under federal, state or local regulatory,
statutory or common law, wrongful discharge, and tort (such as intentional infliction
of emotional distress, libel, slander, invasion of privacy or personal injury),
through discussion and negotiation, all such disputes and controversies will be
resolved by binding arbitration in accordance with Title 9 of the U.S. Code
(United States Arbitration Act) and the Commercial Arbitration Rules of
the American Arbitration Association (the “AAA”), and judgment upon the award
rendered by the arbitrator may be entered in any court having jurisdiction
thereof.  A party hereto may initiate arbitration
by sending written notice of its intention to arbitrate to the other parties
hereto and to the AAA office located in Chicago, Illinois.  Such written notice will contain a
description of the dispute and the remedy sought.  The arbitration will be conducted at the
offices of the AAA in Chicago, Illinois before an independent and impartial
arbitrator acceptable to the parties hereto. 
In the event that the parties have not mutually agreed on an acceptable
arbitrator within thirty (30) days after the demand for arbitration is filed,
the arbitrator shall be appointed in the manner provided by Section 13 of
the Commercial Arbitration Rules of the AAA.  The decision of the arbitrator will be final
and binding on the parties hereto and their successors’ and assignees.  The parties hereto intend that this agreement
to arbitrate be irrevocable.

 

In providing a
remedy under this Section 18, the parties agree that the arbitrator
shall not award punitive damages against any party, and the parties hereby
mutually waive any claim for punitive damages, which may be awarded in
connection with any dispute subject to arbitration under this Agreement.

 

19.                                 General Release.   In consideration of this
Agreement, the services to be provided and the payments to be made hereunder,
Consultant and the Company each shall execute and deliver to each other a
Mutual Release, in the form attached hereto. 
In the event that Consultant revokes the Mutual Release before the
Revocation Expiration Date, as permitted therein, this Agreement shall become
null and void.

 

20.                                 Entire Agreement.  This Agreement, together with the
General Release executed by Consultant, embodies the complete agreement of the
parties with respect to the subject matter hereof and supersedes any prior
written, or prior and contemporaneous oral understandings or agreements between
the parties that are related in any way to the subject matter hereof.  This Agreement may be amended only in writing
executed by the Company and Consultant.

 

9

 

IN WITNESS
WHEREOF, Consultant and the Company have each placed their signatures as of May 25,
2005.

 

 

	
   

  	
  WADDELL &
  REED FINANCIAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Henry J.
  Herrmann

  	
   

  
	
   

  	
  Name:  Henry J. Herrmann

  
	
   

  	
  Title:  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CONSULTANT

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Keith A.
  Tucker

  	
   

  
	
   

  	
  Keith A.
  Tucker

  
					

 

10

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