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Exhibit 4.17    
    

	DATED: September 1, 2004	 	CONFORMED COPY
	

   

   

SCANDINAVIAN
BROADCASTING SYSTEM (JERSEY) LIMITED 

and 

HARRY
EVANS SLOAN 

  

  

EMPLOYMENT
AGREEMENT 

   

   

TAYLOR
WESSING

Carmelite

50 Victoria Embankment

Blackfriars

London EC4Y 0DX 

+44
(0)20 7300 7000

+44 (0)20 7300 7100

DX 41 London 

Ref:
AWG/SBS-10-2 

 
 

Index    
    

	Clause No.
 
	 	Page No.

	1.	 	Definitions	 	1
	

2.	
 	

Term and Appointment	
 	

2
	

3.	
 	

Powers, Duties and Working Hours	
 	

2
	

4.	
 	

Paid Vacation	
 	

3
	

5.	
 	

Disclosure of Interests	
 	

3
	

6.	
 	

Remuneration	
 	

4
	

7.	
 	

Option Extension	
 	

5
	

8.	
 	

Stock Options	
 	

6
	

9.	
 	

Expenses	
 	

7
	

10.	
 	

Confidential Information	
 	

7
	

11.	
 	

Ownership of Intellectual Property	
 	

7
	

12.	
 	

Restrictions after Termination	
 	

7
	

13.	
 	

Termination with or without Events of Default	
 	

8
	

14.	
 	

Obligations Upon Termination	
 	

9
	

15.	
 	

Adverse Change	
 	

9
	

16.	
 	

Notices	
 	

11
	

17.	
 	

Proper Law	
 	

11
	

18.	
 	

Construction	
 	

11
	

19.	
 	

General	
 	

11
	

20.	
 	

Other Agreements	
 	

11

   THIS EMPLOYMENT AGREEMENT is made as of September 1, 2004 

BETWEEN  

	(1)
	SCANDINAVIAN BROADCASTING SYSTEM (JERSEY) LIMITED c/o P O Box 202, Sommerville House, Phillips St, St Helier, Jersey JE4 8SP, Channel
Islands, British Isles (the "Company"); and

	(2)
	HARRY EVANS SLOAN of 10802 Ambazac Way, Bel Air, Los Angeles, CA 90077, USA (the  "Executive").

RECITALS  

	(A)
	The
Executive is currently employed as Executive Chairman of the Board of Directors of SBS for a fixed term appointment which expires on 31 August 2004 (the  "Prior Agreement").

	(B)
	Both
the Company and the Executive wish to extend the period of the Executive's appointment as Chairman of the Board of Directors of SBS for a further three (3) year period on
the terms and conditions set out herein. 

THE PARTIES AGREE AS FOLLOWS:  

1.     Definitions  

        In this Agreement unless the context otherwise requires: 

        "Appointment" has the meaning set out in clause 2.1; 

        "Board" means the Board of Directors from time to time of SBS; 

        "Commencement Date" means 1 September 2004; 

        "Committee(s)" means any standing or ex officio committee meeting of the Board set up from time to time; 

        "Compensation Committee" means that Committee comprising non-executive members of the Board responsible for approving the
compensation arrangements for senior executives of the SBS Group; 

        "Extended Options" means the options awarded under the Plan which are referred to in clauses 7.1(a) and (b); 

        "Extended Term" means the period referred to in clause 7.2; 

        "Intellectual Property Rights" means (a) all patents, copyrights, trademarks, trade names, works for hire, mask works, trade
secrets and other forms of intellectual property (in each case in any part of the world and whether or not registered or registrable and to the fullest extent thereof and for the full
period thereof and all extensions and renewals thereof) and all applications for registration thereof, and all rights and interest thereto and therein; and (b) any and all Moral Rights that the
Executive may have in or with respect to any Invention. 

        "Invention" means all inventions, discoveries, improvements, designs, processes, developments, formulae, notations, know-how,
molds, logos, devices, plans, models, computer programs, and literary, dramatic, musical, and artistic works, whether patentable or unpatentable, copyrightable or not, or otherwise protectable under
any form of legal protection afforded to intellectual property, that were made, created, conceived, developed, or reduced to practice by the Executive (alone or jointly with others) at any time during
his employment by the Company. Pursuant to California Labor Code Section 2870, the term "Invention" shall not apply to an invention that the Executive developed entirely on his own time without
using the Company's equipment, supplies, facilities, or 

1

 

trade
secret information, except for those inventions that either (a) relate at the time of conception or reduction to practice of the invention to the Company's business, or actual or
demonstrably anticipated research or development of the Company; or (b) result from any work performed by the Executive for the Company. 

        "Moral Rights" mean any rights to claim authorship of an Invention, to object to or prevent the modification of any Invention, or to
withdraw from circulation or control the publication or distribution of any Invention, and any similar right, existing under judicial or statutory law of any country in the world, or under any treaty,
regardless of whether or not such right is denominated or generally referred to as a "moral right." 

        "Plan" means SBS's 1994 Share Incentive Plan; 

        "2004 Plan" means SBS's 2004 Share Incentive Plan adopted in December 2003; 

        "SBS" means SBS Broadcasting SA; 

        "SBS Group" means SBS and each Subsidiary of SBS; 

        "Subsidiary" has the meaning ascribed thereto in section 736 of the Companies Act 1985 (UK); 

        "Term" means the period referred to in clause 2 hereof; 

        "US$" means United States dollars, the lawful currency of the United States of America. 

2.     Term and Appointment  

	2.1
	The
Company shall employ the Executive and the Executive shall serve the SBS Group as Executive Chairman of the SBS Group (the "
Appointment"). The Appointment will begin on the Commencement Date and shall continue (subject to earlier termination as provided for herein) for a fixed term of 3 years
expiring on 31 August 2007 and thereafter on such terms and conditions as may be agreed.

	2.2
	The
Executive warrants that by entering into this Agreement he will not be in breach of any agreements with or obligations owed to any third parties. 

3.     Powers, Duties and Working Hours  

	3.1
	During
the continuance of the Executive's employment hereunder, the Executive agrees to:

	(a)
	be
responsible for the organization and operation of the Board including attending and chairing meetings of the Board and if required, serving as a director on the board of directors
of any Subsidiary of the Company;

	(b)
	be
responsible for the oversight of the operations of the SBS Group;

	(c)
	in
conjunction with the Chief Executive Officer of SBS be responsible from time to time for chairing and attending shareholder and investor presentations (including presentations to
financial analysts and investment bankers);

	(d)
	be
responsible for strategic planning for the SBS Group and once such strategy has been approved by the Board, to liaise with the Chief Executive Officer of SBS to ensure such
strategic initiatives are implemented;

	(e)
	be
responsible for financial issues relating to the SBS Group such as significant bank financings or capital market transactions; 

2

 

	(f)
	unless
prevented by ill health or accident, devote sufficient of his working hours and attention to the carrying out of his duties hereunder;

	(g)
	carry
out his duties in a proper and efficient manner and use his best endeavors to promote and maintain the interests of the SBS Group;

	(h)
	perform
such other duties in relation to the business of the SBS Group as required by the Board from time to time; and

	(i)
	comply
with all other reasonable directions given to him by the Board from time to time.

	3.2
	The
Executive shall report to the Board and shall keep the Board informed of the conduct of the affairs of the SBS Group for which he is responsible and shall provide such information
and explanations as may be requested from time to time.

	3.3
	The
Chief Executive Officer of the SBS Group will report to the Executive.

	3.4
	The
Executive shall carry out his duties in Los Angeles, USA, Luxembourg, or such other location as may be appropriate. The Company will provide the Executive with reasonable office
accommodation, including secretarial assistance in both the United States of America and Europe, as it deems necessary during the period of the Appointment.

	3.5
	The
Executive may be required in pursuance of his duties;

	(a)
	to
work at such places as the Board may from time to time reasonably require; and

	(b)
	to
travel to such places as the Board may from time to time reasonably require, 

it
being acknowledged that the Executive shall not be required to live outside of London or Los Angeles for an extended period of time without the Executive's approval. 

	3.6
	If
this Agreement is not renewed or extended, the Executive may be engaged to provide consultancy services to the SBS Group on terms to be agreed provided, however, that neither the
Company nor any other member of the SBS Group shall be under any obligation to retain the Executive as a consultant pursuant to this Section 3.6. 

4.     Paid Vacation  

        During the Appointment the Executive shall be entitled to 5 (five) weeks paid vacation each year during the Term. 

5.     Disclosure of Interests  

	5.1
	Without
the prior approval of the Board, the Executive shall not during the Appointment whether directly or indirectly, paid or unpaid be engaged or concerned in the conduct of any
other actual or prospective business or profession or be or become an employee, agent, partner, consultant or director of any other company or firm or assist or have any financial interest in any
other such business or profession other than his existing directorships as previously disclosed to SBS.

	5.2
	The
Executive shall be permitted to hold shares or securities in a company any of whose shares or securities are quoted or dealt in on any recognised investment exchange, provided
such holding does not exceed 5% (five per cent) of the issued share capital of the company concerned and is held by way of bona fide investment only. 

3

 

6.     Remuneration  

	6.1
	During
the Appointment, the Executive's base salary will be US$600,000 (six hundred thousand United States dollars) each year during the Term (the  "Salary"). The Salary shall be payable in equal instalments to
the Executive, monthly in arrears.

	6.2
	During
the Appointment, the Company may award the Executive an annual incentive bonus (the "Bonus"). The Bonus will comprise two
elements. The first element of the Bonus will be purely discretionary and the amount of such Bonus shall be determined by the Compensation Committee in its sole discretion. This element of the Bonus
will be calculated based on the Compensation Committee's assessment of the Executive's performance and its assessment of whether the Company has attained its material strategic and financial
objectives (the "Strategic Bonus Payment"). The remaining element of the Bonus will be calculated in accordance with clause 6.3 below. The
parties agree that the parameters against which the Strategic Bonus Payment will be paid (in whole or part) and the percentage of the overall Bonus which shall be constituted by the Strategic Bonus
Payment will be set annually by the Compensation Committee in consultation with the Executive. Unless set otherwise by the Compensation Committee, the annual target Strategic Bonus Payment shall be
US$300,000. The Bonus will be payable on a pro rata basis for each calendar year or partial calendar year of the Appointment.

	6.3
	The
second element of the Bonus will be calculated based purely on the financial performance of the SBS Group. In determining this element of the Bonus, the amount of EBITDA budgeted
for each calendar year (each a "Financial Period") in the relevant annual budget approved by the Board for the SBS Group for that Financial Period (the  "Budgeted
EBITDA") (as adjusted from time to time in accordance with clause 6.4) will be compared against the amount of EBITDA recorded in the
audited consolidated accounts of SBS (the "Actual EBITDA") which are approved by the Board for that Financial Period. The Company agrees that this
element of the Bonus is payable in the amounts set out below:

	(a)
	If
Actual EBITDA is equal to Budgeted EBITDA for any Financial Period, the amount of the Bonus payable pursuant to clause 6.3 shall be equal to US$300,000 (the  "Minimum Bonus Payment"). For each 1% by
which the Actual EBITDA exceeds Budgeted EBITDA in any Financial Period, the amount of the Minimum Bonus
Payment shall be increased by US$15,000 up to the total maximum bonus payment of US$750,000 (i.e. where Actual EBITDA is 30% above Budged EBITDA for the relevant Financial Period) and which sum
includes, for the avoidance of doubt, the Minimum Bonus Payment.

	(b)
	If
Actual EBITDA for any Financial Period is no less than 95% of Budgeted EBITDA for that period (the "Threshold"), the Minimum Bonus
Payment will be paid in full.

	(c)
	Where
Actual EBITDA is below the Threshold for any Financial Period, for each further 1% by which Actual EBITDA is less than the Budgeted EBITDA during that Financial Period, the
Minimum Bonus Payment shall be reduced by (US$20,000) provided that if for any Financial Period, Actual EBITDA is less than 80% of Budgeted EBITDA no bonus payment under this clause 6.3 will be
payable at all. For the purposes of calculating the amount by which the Minimum Bonus Payment should be increased or decreased in accordance with the provisions of this sub-clause, the
percentage by which Actual EBITDA exceeds or is less than Budgeted EBITDA shall be rounded up or down to the nearest whole number (for example, 84.50% is rounded up to 85% and 84.49% is rounded down
to 84%).

	(d)
	The
Executive must notify the Company how he elects to receive any Bonus within 10 (ten) business days of the date that audited consolidated accounts of SBS for any Financial Period
(the "Accounts") are finalised in accordance with Article 6.3(c) below (the "Approval Date"). The
strike price for any common shares of SBS which the Executive elects to receive will be 

4

 

the
average of the closing price quoted for a Common Share of SBS on NASDAQ (reported in the Wall Street Journal, US Edition) over the 10 business days commencing on the Approval Date. 

	(e)
	The
Company agrees that the payment of any Bonus awarded to the Executive will be made within 30 (thirty) days of the date that the auditors confirm in writing to the Chief Financial
Officer of SBS that their audit of the Accounts for the relevant Financial Period is finalised.

	(f)
	For
the purposes of this Agreement "EBITDA" means the earnings of SBS on a consolidated basis, before interest expense, tax and depreciation and amortisation expenses are deducted,
all as accounted for under US Generally Accepted Accounting Principles ("US GAAP").

	6.4
	If
during any Financial Period, SBS sells any of its subsidiary operations or businesses, which are required to be consolidated for the purposes of US GAAP, (each a  "Subsidiary Operation"), Budgeted EBITDA
shall be reduced by the amount of EBITDA budgeted to be contributed by the relevant Subsidiary Operation to the
SBS Group during the Financial Period ("Subsidiary EBITDA"). Such an adjustment to Budgeted EBITDA to take into account the loss of the Subsidiary
EBITDA ("Adjusted EBITDA") will be pro-rated taking into account the amount of any Financial Period which is outstanding as at the date the
Subsidiary Operation ceases to be required to be consolidated as part of the SBS Group for the purposes of US GAAP. 

Upon
Adjusted Budgeted EBITDA being determined, the Bonus payable to the Executive pursuant to clause 6.3 will be determined by comparing Actual EBITDA against Adjusted EBITDA. 

	6.5
	If
SBS acquires any operation or business during any Financial Period which would constitute a Subsidiary Operation, the parties agree that there will be no adjustment made to
Budgeted EBITDA for the purposes of clause 6.4

	6.6
	Any
payment of a Bonus which the Executive is awarded by the Compensation Committee or becomes entitled to in accordance with clause 6.3 shall be pro-rated
accordingly for any period during the Appointment which is less than a full Financial Period.

	6.7
	The
Bonus, if any, awarded to the Executive shall be paid by SBS to the Executive in cash, common shares of the Company or any combination thereof at the Executive's election within,
30 (thirty) days of such award being made.

	6.8
	The
Executive and his spouse shall be entitled to participate in any pension or health insurance scheme established by the Company or any other member of the SBS Group for its
employees provided however that the level of health insurance coverage shall not be less than that currently carried by the Executive (for himself and his spouse).

	6.9
	The
Executive agrees that any taxes, insurance or other duties which may be properly payable by the Executive in any country in which the Executive may be domiciled for employment
purposes at any time during the Term in respect of any Bonus or Salary shall be deducted by the Company before payment of any Bonus or the Salary is made to the Executive. The Company shall be
responsible for the employer's share of all social or similar taxes or duties which may be payable. 

7.     Option Extension  

	7.1
	The
parties acknowledge that prior to the date hereof, the Executive has been awarded by SBS the following options under the Plan to acquire:

	(a)
	125,000
registered common shares in SBS at an exercise price of US$22.50, which option is due to expire on 14 August 2004; and 

5

 

	(b)
	125,000
registered common shares in SBS at an exercise price of US$27 which option is due to expire on 14 August 2004.

	7.2
	On
July 8, 2004, the Board of Directors of SBS extended the exercise period in relation to the Extended Options so that the Executive may exercise his rights to acquire
registered common shares in SBS during the period ending 14 August 2008. 

8.     Stock Options  

	8.1
	On
July 8, 2004, the Board of Directors of SBS granted the Executive a 10 (ten) year option to purchase in the aggregate 250,000 registered common shares in SBS (the  "Option Shares") pursuant to and
in accordance with terms of the 2004 Plan and the option award letter (the "Option Award
Letter").

	8.2
	On
and subject to the terms of the 2004 Plan and the Option Award Letter, the Option Shares shall vest as follows: 

	 
	 	Exercise Price:

US$31.00

	Date of Vesting
 
	 	No. of Option

Shares Vesting

	8 January 2005	 	31,250
	8 July 2005	 	31,250
	8 January 2006	 	31,250
	8 July 2006	 	31,250
	8 January 2007	 	31,250
	8 July 2007	 	31,250
	8 January 2008	 	31,250
	8 July 2008	 	31,250

	8.3
	The
Company undertakes to procure that SBS shall take all necessary corporate action in order to ensure the Option Shares vest in the Executive in accordance with the terms of this
clause 8.

	8.4
	If
the Executive's employment is terminated pursuant to clause 13.2 all Options which have not vested shall lapse.

	8.5
	If
the Executive's employment is terminated pursuant to clause 13.1 or 15 respectively then the Executive shall have the full ten year period in which to exercise all of the
Option Shares that have been vested.

	8.6
	If
the Executive's employment is terminated pursuant to clauses 13.2 or 13.3, the Executive resigns or this Agreement expires without being renewed then the Executive will have
90 days from the last day of the Executive's employment with the Company (the "Termination Date") to exercise:

	(a)
	all
of the Option Shares which have vested at the Termination Date; and

	(b)
	the
Extended Options.

	8.7
	If
the Executive fails to exercise the Option Shares or the Extended Options within the ninety (90) day period referred to in clause 8.6 then such Option Shares and/or
Extended Options which remain unexercised shall lapse.

	8.8
	The
Company will procure that the Executive will be entitled to exercise any of the Option Shares or the Extended Options through SBS's cashless exercise program during and following
his employment. 

6

 

9.     Expenses  

	9.1
	The
Executive shall be entitled to be repaid all reasonable travel (first class air fare for trips made internationally and business class air fare for trips made within Europe),
hotel and other expenses incurred in or about the performance of his duties hereunder, which expenses shall be evidenced in such manner as the Board may reasonably specify from time to time.

	9.2
	The
Executive shall be entitled to be repaid all reasonable travel (first or business class air fare) expenses incurred by or in respect of the Executive's spouse provided that such
expenses are incurred whilst the Executive's spouse accompanies the Executive and the Executive is engaged in the performance of his duties (as provided hereunder). 

10.   Confidential Information  

	10.1
	The
Executive shall not use, disclose, divulge or communicate to any person, other than with the proper authority of the Board, or as required to be disclosed by any court or
governmental, administrative or regulatory authority competent to require such disclosure, any of the trade secrets or other confidential or proprietary information of or relating to the SBS Group
(including but not limited to details of actual or potential customers, suppliers' product details, programming or advertising arrangements, prices, discounting arrangements, trade arrangements, terms
of business, operating systems, financial information, developments and research and development activities) which he may create, develop, receive or obtain whilst employed by the Company.

	10.2
	The
Executive shall not during the Appointment, otherwise than for the benefit of the SBS Group, make any records (whether recorded on paper, computer memory or discs or otherwise)
relating to the SBS Group, its dealings or affairs, nor (either during the Appointment or thereafter) use or permit to be used any such records other than for the benefit of the SBS Group, it being
agreed by the parties that all such records (and copies thereof) in the possession or control of the Executive shall be the property of the Company and shall be returned by the Executive to the
Company on demand and, in any event, upon the termination of the Appointment.

	10.3
	It
is agreed that causes 10.1 and 10.2 shall survive expiry or termination of this Agreement. 

11.   Ownership of Intellectual Property  

        The Executive shall promptly disclose to the Company all Inventions prepared or created by the Executive during his employment. The Executive agrees that such
Inventions shall, to the fullest extent permitted by law, belong to, vest in, and be the sole, exclusive, absolute, and unencumbered property of
the Company, and the Executive hereby irrevocably assigns, transfers, and conveys to the Company and/or its nominees, without further consideration, all of his right, title, and interest in such
Inventions, and all of his right, title, and interest in any Intellectual Property Rights in such Inventions. The Executive undertakes absolutely and unconditionally to execute all documents and do
all other things necessary to give effect to this provision. The Executive acknowledges and agrees that any copyrightable works he prepares or creates within the scope of his employment are "works
made for hire" under the United States Copyright Act, and that the Company will be considered the author of such works, and owns all rights comprised in the copyrights for such works. 

12.   Restrictions after Termination  

	12.1
	At
the election of the Company, the Executive shall not any time within [6] months after the termination of the Appointment howsoever arising (other than
through repudiatory breach by the Company), without the prior approval of the Board, either alone or jointly with or on behalf of 

7

 

any
person, firm, company or entity and whether on his own account or in any other capacity whatsoever: 

	(a)
	offer
to employ or engage or solicit the employment or engagement of any person who, immediately prior to the date of termination, was an employee of any company in the SBS Group and
whether or not such person would commit any breach of their contract of employment or engagement by reason of leaving the service of such company; or

	(b)
	solicit,
interfere with or endeavour to entice away from any company in the SBS Group, any person, firm, company or entity who was a supplier of services or products to the SBS Group
in the 12 (twelve) months prior to termination and with whom the Executive was concerned or had personal contact in the said period of 12 (twelve) months.

	12.2
	Each
of the obligations contained in clause 12.1 constitutes an entirely separate and independent restriction on the Executive, and, if any part is found to be unenforceable,
the remainder will remain valid and enforceable.

	12.3
	Whilst
the restrictions are considered by the parties to be fair and reasonable in the circumstances, it is agreed that if any such restrictions should be judged to be void or
ineffective for any reason, but would be treated as valid and effective if part of the wording thereof were deleted, the said restrictions shall apply with such modifications as will be necessary to
make them valid and effective.

	12.4
	For
the avoidance of doubt, the provisions of this clause 12 shall take effect subject to clause 5.1 above. 

13.   Termination with or without Events of Default  

	13.1
	The
Appointment may be terminated without cause if, in the reasonable judgment of a majority of the Board, such termination would be in the best interests of the SBS Group. In the
event the Appointment is so terminated, subject to the Executive's execution of a release of claims against the Company in a form to be agreed in good faith, the Executive shall be entitled to:

	(a)
	receive
all amounts provided for under clause 6 for the remaining term of this Agreement;

	(b)
	immediate
vesting of all the Option Shares; and

	(c)
	keep
the Extended Options until the expiry of the Extended Term. 

For
the avoidance of doubt, the period in which the Executive may exercise the Option Shares shall be determined in accordance with clause 8.5 above. In terms of the Bonus payable to the
Executive under clause 6.3, the parties agree that the Executive shall be entitled to receive the amount of the Bonus last paid to the Executive by SBS under this Agreement (or any other
service agreement) for each
remaining year of the Appointment and each such payment will be pro rated on a time basis where any remaining period of the Appointment is less than twelve (12) months. 

	13.2
	The
Appointment shall be subject to summary termination at any time on notice in writing by the Company if the Executive shall have committed any material breach of this Agreement or
(after warning in writing) any repeated or continued breach of his obligations hereunder or shall have been convicted of any act of dishonesty or fraud or breach of the rules, regulations or orders of
the Securities and Exchange Commission. Subject to any applicable statutes of limitations, any delay by the Company in exercising such right of termination shall not constitute a waiver thereof. The
Executive shall be given written notice of any breach and 5 (five) business days to cure such breach, it being recognised that certain types of breach are incapable of cure.

	13.3
	If,
in the opinion of the Board after good faith consultation with the Executive's physician, the Executive is or has been unable to substantially perform his material duties by
reason of illness or 

8

 

injury
for a period or periods exceeding six months in any period of 12 consecutive months or if the Board at any time during the pendency of any such incapacity that has lasted in excess of one month
has good faith reason to believe that because of any such cause the Executive will be unable to substantially perform his material duties for a period or periods of six months or more (over any
consecutive 12 month period including past periods of incapacity), the Company shall be entitled at any time during the pendency of any such incapacity to give to the Executive not less than
six months' notice of termination of the Appointment. 

	13.4
	If
the Appointment is terminated pursuant to clauses 13.2 or 13.3, the Executive shall have no claim for compensation or otherwise (other than for compensation which shall have
accrued as at the date of termination or to any Option Shares which have already vested in accordance with this Agreement or any prior agreement or arrangement between the Company and the Executive).
The period in which the Executive may exercise the Option Shares and the Extended Options which have vested as at the date of termination, shall be the period referred to in clause 8.6 

14.   Obligations Upon Termination  

	14.1
	Upon
the termination of the Appointment howsoever arising the Executive shall;

	(a)
	at
any time or from time to time thereafter upon the request of the Company, resign without claim for post termination compensation other than as specifically contemplated by this
Agreement from all offices held in the Company or the SBS Group and from membership of any organization acquired by reason of or in connection with the Appointment and should he fail to do so each
member of the Board is hereby irrevocably jointly and severally appointed by the Executive to be the Executive's attorney in his name and on his behalf to execute any documents and to do any things
necessary or requisite to give effect to this sub-clause; and

	(b)
	deliver
to the Company or to such other person as it may direct, all documents (including, but not limited to, correspondence, lists of clients or customers, keys, credit cards,
notes, memoranda, plans, drawings and other documents or property of whatsoever nature and all copies thereof) made or compiled or acquired by the Executive during the Appointment and concerning the
business, finances or affairs of the Company or any other member of the SBS Group.

	14.2
	After
the termination of the Executive's employment hereunder, unless he continues to be employed in some other capacity by the SBS Group, he shall not at any time thereafter
represent himself as being in any way connected with or interested in the business of or employed by any member of the SBS Group or use for trade or other purposes the name of SBS or any name capable
of confusion therewith.

	14.3
	The
termination of the Executive's employment hereunder for whatsoever reason shall not affect those terms of this Agreement which are expressed to have effect thereafter and shall
be without prejudice to any accrued or remedies of the parties. 

15.   Adverse Change  

	15.1
	If
during the Term, the Executive considers acting reasonably that there has been a material adverse change in his working environment as set out in this Agreement caused by a Change
of Control, a material breach of this Agreement by the Company or other similar circumstance (the "Change"), the Executive shall have the right by
notice in writing to the Company to terminate this Agreement whereupon:

	(a)
	the
Company shall forthwith pay to the Executive as a lump sum all amounts which would otherwise have been paid to him under clause 6 of this Agreement until the expiry of the 

9

 

Term
and any other payment or reimbursement which may have accrued to the Executive under the Agreement but remain unpaid as at the date of termination; 

	(b)
	all
Option Shares shall automatically vest in the Executive at the date of termination and the period in which the Executive may exercise the Option Shares shall be determined in
accordance with clause 8.5 above; and

	(c)
	the
Extended Options may be exercised any time prior to the expiry of the Extended Term. 

For
the avoidance of doubt, any Bonus payable under this clause 15 shall be calculated in accordance with the principles outlined in clause 13.1. 

	15.2
	Before
issuing any notice under clause 15.1 the Executive agrees, if requested, to discuss the circumstances giving rise to the Change and his future role and position in the
SBS Group with the Board.

	15.3
	If
the Board does not agree that there has been a Change, it will promptly inform the Executive in writing (the "Notification"). The
matter will then be referred to final and binding determination by a single neutral arbitrator in accordance with this clause 15.3. Once a Notification has been issued, no Change will be deemed
to have occurred unless and until the arbitrator so determines. Unless the parties otherwise agree, the arbitrator will be an expert in corporate governance and/or executive compensation matters, with
prior service on the compensation committee of a publicly-traded company or on the faculty of a nationally-ranked graduate business school. The parties shall use their best efforts to agree on an
arbitrator within twenty-eight (28) days of the date of the Notification. If the parties are unable to jointly agree on an arbitrator within twenty-eight (28) days, either party may
refer the matter to the New York headquarters of the American Arbitration Association ("AAA"), following which an arbitrator shall be selected from a national panel of qualified arbitrators provided
by AAA (or, if there is no standing panel of qualified arbitrators, AAA shall compile a list of neutral persons willing to serve as an arbitrator who meet the qualifications set forth above), under
AAA's Commercial Arbitration Rules then in effect. Both parties agree to cooperate fully and expeditiously with the AAA and the arbitrator. If necessary, arbitration may be compelled pursuant to the
California Arbitration Act, California Code of Civil Procedure Section 1281.2. Unless the parties agree otherwise in writing, the arbitration shall be concluded within sixty (60) days of
referral to AAA. The parties will be permitted to conduct discovery only to the extent and in the manner authorized by the arbitrator. The parties agree that the proceedings will be conducted to the
greatest extent permitted by the AAA Rules and applicable law as if the arbitrator were acting as an independent expert whose findings are binding, rather than as an arbitrator. The findings and
conclusions of the arbitrator, which shall be set forth in a written award, will be binding on both parties and may be enforced pursuant to California Code of Civil Procedure Section 1285. The
administrative expenses of the AAA and the cost of the arbitrator will be paid by the Company.

	15.4
	For
the purposes of this clause:

	(a)
	"Change of Control" means the acquisition whether directly or indirectly of common shares of SBS by any person or persons connected
with each other or persons acting in concert with each other, as a result of which such person or persons would obtain control over that number of common shares in SBS which in aggregate confers 50%
or more of the voting rights normally exercisable at General Meetings of SBS or any merger, consolidation, reorganisation or similar transaction of like effect or any change in the composition of the
Board whereby any such person or persons shall have the ability to control the decisions of the Board or any similar circumstances; 

10

 

	(b)
	"connected" in the context of determining whether one person is connected with another, shall be determined in accordance with the
provisions of Section 839 of the Income and Corporation Taxes Act 1988 (UK); and

	(c)
	"acting in concert" shall have the meaning set out in the City Code on Takeovers and Mergers (UK). 

16.   Notices  

        Any notice to be given hereunder shall be in writing. Notices may be given by either party by personal delivery or post or by fax addressed to the other party at
(in the case of the Company) its registered office for the time being and (in the case of the Executive) his last known address first above written and any such notice given by letter or fax shall be
deemed to have been served at the time at which the letter was delivered personally or transmitted or if sent by post would be delivered in the ordinary course of post. Copies of all notices sent to
the Executive shall be sent to Del, Shaw, Moonves, Tanaka & Finkelstein, 2120 Colorado Avenue, Suite 200, Santa Monica, CA 90404, USA, Attention: Ernie Del. All notices given to the Company
shall also be delivered to SBS at Rietlandpark 353 1019EM Amsterdam, The Netherlands, Attention: Company Secretary 

17.   Proper Law  

	17.1
	Any
dispute, controversy, proceedings or claim of whatsoever nature arising out of or relating to a breach of this Agreement shall be governed and construed in all respects in
accordance with the laws of the State of California.

	17.2
	The
Parties agree to submit to the non-exclusive jurisdiction of the courts in the State of California for the purpose of hearing and determining any suit, action or
proceeding and/or to settle any disputes arising out of or in connection with this Agreement. 

18.   Construction  

	18.1
	The
headings in this Agreement are inserted for convenience only and shall not affect its construction.

	18.2
	Any
reference to a statutory provision shall be construed as a reference to any statutory modification or re-enactment thereof (whether before or after the date hereof)
for the time being in force. 

19.   General  

        No failure or delay by the Company in exercising any right, power or privilege under this Agreement shall operate as a waiver thereof nor shall any single or
partial exercise by the Company of any right, power or privilege preclude any further exercise thereof or the exercise of any right, power or privilege. 

20.   Other Agreements  

        This Agreement shall supersede and replace all previous agreements between the Company or any other member of the SBS Group and the Executive, if any, in relation
to his employment including as from the Commencement Date, the Prior Agreement. 

11

 

IN WITNESS whereof this Agreement has been executed as at the date first written above 

	Signed by	 	)	/s/ Harry Evans Sloan
	
HARRY EVANS SLOAN	
 	

)	

 
	in the presence of:	 	)	/s/ Ernest Dell
	

Ernest Del	
 	

 	

 
	

 	
 	

 	

 
	Signed by	 	)	/s/ Anthony Ghee        /s/ Juergen von Schwerin
	

for and on behalf of	
 	

)	

 
	SCANDINAVIAN BROADCASTING	 	)	 
	SYSTEM (JERSEY) LIMITED	 	)	 
	in the presence of:	 	)	/s/ Erik T. Moe
	

Erik T.Moe	
 	

 	

 

12

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Exhibit 4.17

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Exhibit 4.18    
    

 
 

MANAGEMENT SERVICES AGREEMENT    
    

Between: 

 CONVERS MEDIA EUROPE LIMITED PARTNERSHIP  

a
limited partnership existing under the laws of Guernsey, having its registered office at Nerine House, St. George's Place, 22 Comet Street, St. Peter Port, Guernsey, 

represented
by Mr. Markus Tellenbach, a general partner, 

hereinafter
referred to as "Convers", 

 SBS BROADCASTING SA  

a
corporation existing under the laws of Luxembourg, having its registered office at 8-10 rue Mathias Hardt, BP 39, L-1717, Luxembourg, 

hereinafter
referred to as "SBS", 

and

 SCANDINAVIAN BROADCASTING SYSTEM (JERSEY) LIMITED  

a
corporation existing under the laws of Jersey c/o P. O. Box 202, Sommerville House, Phillips St, St Helier, Jersey, JE4 8SP, Channel Islands, British Isles, 

represented
by Harry Evans Sloan 

hereinafter
referred to as "the Company". 

WHEREAS:-

	A.
	Convers,
represented by Markus Tellenbach, entered into a Management Services agreement with SBS dated August 19, 2002 to obtain the services of Markus Tellenbach as Chief
Executive Officer (the "Prior Agreement").

	B.
	The
Company now wishes to extend the services of Mr Tellenbach as Chief Executive Officer of SBS and Convers, SBS and the Company agree that the Prior Agreement will be terminated and
replaced by this Agreement. 

Article 1: Termination of Prior Agreement  

	1.1
	All
parties agree that the Prior Agreement shall terminate effective as of December 31, 2004 and shall be replaced by this Agreement. Termination of the Prior Agreement shall
not constitute a waiver by Convers of any benefit which may have accrued under the Prior Agreement, but remain owing at the date of termination unless the waiver of such benefit has been specifically
agreed by Convers. Otherwise, any such benefit will be paid by SBS as provided in accordance with the Prior Agreement. 

1

 

Article 2: Purpose; Term; Renewal; Termination.  

2.1    Purpose    

The
Company wishes to obtain certain management services from and through Convers, and Convers has agreed to provide such services by making available to the SBS Group (as hereinafter defined) the
services of Mr. Markus Tellenbach, hereinafter referred to as the "Executive". 

2.2    Term    

This
Agreement shall become effective on January 1, 2005 (the "Start Date") and shall terminate on December 31, 2008 (the  "End Date"). The period
commencing from the Start Date and ending on the End Date, as such period may be extended by the parties, is hereinafter
referred to as the "Term". 

2.3    Renewal    

The
Company and Convers shall commence discussions regarding the extension of the Term on the third anniversary of the Start Date, and each of them shall give written notice to the other regarding
their intention to extend the Term no later than 270 days prior to the termination of the Term (the "Renewal Period"). Neither party shall have
the obligation to extend the Term. 

If
the Company elects not to renew the Term of this Agreement, Convers shall be entitled to receive the Base Management Fee then payable under Article 4.1 for a further 18 (eighteen) months
(the "Severance Period") following the End Date of this Agreement such fee to be paid in accordance with Article 4.1 (the  "Severance Fee").

2.4    Termination for Cause    

The
Company may terminate this Agreement if: (i) Convers breaches any term of this Agreement, and if such breach is not cured to the satisfaction of the Company within a reasonable time after
written notice of the breach has been given by the Company to Convers (such reasonable time shall be not less than 10 (ten) nor more than 30 (thirty) days); (ii) Convers fails to procure for
the benefit of the Company the full-time services of the Executive for reason other than ill health or accident; (iii) the Executive commits an act of gross negligence, wilful
misconduct or material insubordination in connection with the performance of the services required to be rendered to the Company pursuant to this Agreement, as determined in good faith by the Board of
Directors of SBS (the "Board"); (iv) the Executive is convicted of or pleads nolo contendere to
any misdemeanor involving moral turpitude or to any felony; (v) either Convers or the Executive commits any act of fraud, misappropriation of funds or embezzlement in the performance of the
duties to be performed by the Executive under this Agreement; or (vi) the Executive suffers from habitual intemperance or is declared legally incompetent. 

If
the Agreement is terminated pursuant to this Article 2.4, Convers shall not be entitled to any further fees pursuant to this Agreement after the date of termination save for any fee which is
due and owing to Convers as at the date of termination. 

2.5    Voluntary Termination    

The
Company may terminate this Agreement at any time prior to the commencement of the Renewal Period by giving notice in writing to Convers. If the Company terminates this Agreement without cause in
accordance with this Article 2.5, Convers will be entitled to receive the Base Management Fee and the service benefits payable in accordance with Article 4.7 until the end of the Term
(the "Termination Payment"). 

Convers
may elect by providing written notice to the Company to receive the Termination Payment as a lump sum payment within twenty-one (21) days of the End Date otherwise the
Termination 

2

 

Payment
will be payable on the same basis that the Base Management Fee is payable under Article 4.1. If Convers makes such an election, the amount of the Termination Payment payable to Convers
shall be discounted by the LIBOR Rate. 

For
the purposes of this Agreement, the "LIBOR Rate" means the London Interbank Offered Rate quoted for 12 months time deposits in Euros in the
Financial Times Newspaper on the date such election is made or if the election is made on a day that the Financial Times Newspaper is not published, the next available date on which such newspaper is
published. Such lump sum payment will be made within 30 days of the election being made by Convers. 

Article 3: Management Services; Representations and Warranties of Convers  

3.1    Management Services    

During
the Term, Convers will procure, for the exclusive benefit of the Company, the full-time services of the Executive, for the purpose of fulfilling the duties and responsibilities of
Chief Executive Officer and President of the SBS Group. The Executive shall report to the Chairman and the Board and shall keep the Chairman and the Board informed of the conduct of the affairs of SBS
and any subsidiaries of SBS (the "SBS Group") and shall provide them with such information and explanations as may be requested from time to time by
them. 

3.2    Representations and Warranties of Convers    

Convers
represents and warrants to the Company that during the Term: 

	(a)
	It
will procure that the Executive will be responsible for the control, management and supervision of all operations and any other business of the SBS Group unless any specific tasks
or areas of responsibility of the SBS Group have been reserved by the Chairman or the Board;

	(b)
	It
will procure that, unless prevented by ill health or accident, the Executive devotes sufficient of his working hours and attention to the carrying out of his duties hereunder;

	(c)
	It
will procure that the Executive will carry out his duties in a proper and efficient manner and use his best endeavours to promote and maintain the interests of the SBS Group;

	(d)
	It
will procure that the Executive will comply with all other reasonable directions given to him by the Board and/or the Chairman from time to time;

	(e)
	The
terms of this Agreement are valid, binding and enforceable against Convers, and it will not, nor will it permit any of its partners or employees to, breach or violate any written
or oral agreement to which Convers or they are a party or by which they are bound arising out of the performance by them of the services to be rendered by them pursuant to this Agreement;

	(f)
	The
services to be rendered to the Company by the Executive under this Agreement do not and will not breach or contravene any employment agreement or other agreement to which either
Convers or the Executive is a party or by which they are bound; and

	(g)
	Convers
will pay when due all taxes payable on the consideration paid to Convers and with respect to the services to be rendered by Convers to the Company pursuant to this Agreement
and the Company shall have no responsibility for any taxes attributable to payments made to Convers hereunder or payments that may be made by Convers to the Executive. 

3

 

Article 4: Consideration  

4.1    Base Management Fee    

During
the Term, the Company will pay to Convers a base management fee (the "Base Management Fee") payable as follows: 

	(a)
	For
the calendar year 2005, the sum of €1.2 million per year; and

	(b)
	For
the calendar years 2006, 2007 and 2008 the sum of €1.25 million per year. 

The
Base Management Fee will be paid to Convers monthly in arrears not later than on the 28th day of the respective month against statements submitted by Convers to the Company or such
other entity as SBS may designate. 

4.2    Annual Incentive Management Fee    

	(a)
	For
each entire calendar year during the Term (2005, 2006, 2007 and 2008) the Executive will be entitled to an annual incentive payment based upon the performance of the SBS Group
(the "Annual Incentive Payment"). In determining the Annual Incentive Payment, the amount of adjusted EBITDA budgeted for each calendar year (each a  "Financial
Period") in the relevant annual budget approved by the Board for the SBS Group for that Financial Period (the
"Budgeted EBITDA") (as adjusted from time to time in accordance with Article 4.3) will be compared against the amount of adjusted EBITDA recorded
in the audited consolidated accounts of SBS (the "Actual EBITDA") which are approved by the Board for that Financial Period. The Company agrees that an
Annual Incentive Payment is payable in the amounts set out below.

	(b)
	For
2005, if Actual EBITDA is equal to Budgeted EBITDA for any Financial Period, the Bonus Payment shall be equal to €600,000 (the "Minimum
Bonus Payment"). For each 1% by which the Actual EBITDA exceeds Budgeted EBITDA in any Financial Period, the amount of the Minimum Bonus Payment shall be increased by
€30,000 up to the total maximum bonus payment of €1,500,000 (i.e. where Actual EBITDA is 30% above Budgeted EBITDA for the relevant Financial Period) and which sum
includes, for the avoidance of doubt, the Minimum Bonus Payment.

	(c)
	For
2006, 2007 and 2008, if Actual EBITDA is equal to Budgeted EBITDA for any Financial Period, the Bonus Payment shall be equal to €700,000 (the  "Revised Minimum Bonus Payment"). For each 1% by which
the Actual EBITDA exceeds Budgeted EBITDA in any Financial Period, the amount of the Minimum
Bonus Payment shall be increased by €30,000 up to the total maximum bonus payment of €1,600,000 (i.e. where Actual EBITDA is 30% above Budgeted EBITDA for the relevant
Financial Period) and which sum includes, for the avoidance of doubt, the Revised Minimum Bonus Payment.

	(d)
	If
Actual EBITDA for any Financial Period is no less than 95% of Budgeted EBITDA for that period (the "Threshold"), the Minimum Bonus
Payment or the Revised Minimum Bonus Payment (whichever may be applicable) will be paid in full.

	(e)
	Where
Actual EBITDA is below the Threshold for any Financial Period, for each further 1% by which Actual EBITDA is less than the Budgeted EBITDA during that Financial Period, the
Minimum Bonus Payment or the Revised Minimum Bonus Payment (whichever is applicable) shall be reduced by €40,000 provided that if for any Financial Period, Actual EBITDA is less than
80% of Budgeted EBITDA no bonus payment will be payable at all. For the purposes of calculating the amount by which the Minimum Bonus Payment or the Revised Minimum Bonus Payment (whichever is
applicable) should be increased or decreased in accordance with the provisions of this Article, the percentage by which Actual EBITDA exceeds or is less than 

4

 

Budgeted
EBITDA shall be rounded up or down to the nearest whole number (for example, 84.50% is rounded up to 85% and 84.49% is rounded down to 84%). 

	(f)
	Any
Annual Incentive Payment will be paid in either cash, common shares of the Company or any combination thereof at the election of Convers. Convers must notify the Company how it
elects to receive any Annual Incentive Payment within 10 (ten) business days of the date that audited consolidated accounts of SBS for any Financial Period (the  "Accounts") are finalised in accordance
with Article 4.2(g) below (the "Approval Date"). The
strike price for any common shares of SBS which Convers elects to receive will be the average of the closing price quoted for a Common Share of SBS on NASDAQ (reported in the Wall Street Journal, US
Edition) over the 10 business days commencing on the Approval Date.

	(g)
	The
Company agrees that the payment of any Annual Incentive Payment awarded to Convers will be made within 30 (thirty) days of the date that the auditors confirm in writing to the
Chief Financial Officer of SBS that their audit of the Annual Accounts for the relevant Financial Period is finalised.

	(h)
	For
the purposes of this Agreement "EBITDA" means the earnings of SBS on a consolidated basis, before interest expense, tax and
depreciation and amortisation expenses are deducted, all as accounted for under US Generally Accepted Accounting Principles ("US GAAP").

	4.3
	If
during any Financial Period, SBS sells any of its subsidiary operations or businesses, which are required to be consolidated for the purposes of US GAAP, (each a  "Subsidiary Operation"), Budgeted EBITDA
shall be reduced by the amount of EBITDA budgeted to be contributed by the relevant Subsidiary Operation to the
SBS Group during the Financial Period ("Subsidiary EBITDA"). Such an adjustment to Budgeted EBITDA to take into account the loss of the Subsidiary
EBITDA ("Adjusted EBITDA") will be pro-rated taking into account the amount of any Financial Period which is outstanding as at the date the
Subsidiary Operation ceases to be required to be consolidated as part of the SBS Group for the purposes of US GAAP. 

Upon
Adjusted Budgeted EBITDA being determined, the Annual Incentive Payment payable to Convers pursuant to Article 4.2 will be determined by comparing Actual EBITDA against Adjusted EBITDA. 

	4.4
	If
SBS acquires any operation or business during any Financial Period which would constitute a Subsidiary Operation, the parties agree that there will be no adjustment made to
Budgeted EBITDA for the purposes of Article 4.2.

	4.5
	During
the Term, the Company will permit the Executive to participate in any benefit plans which are available to other executive officers of SBS of comparable rank and station with
the Executive, subject to the terms of such plans.

	4.6
	The
Company will reimburse Convers for all reasonable business-related expenses incurred during the Term by the Executive in connection with the performance of his duties as the Chief
Executive Officer of the Company; provided, however, that Convers shall submit to the Company documentation which substantiates such expenses in form and substance satisfactory to the Company.

	4.7
	The
Company will reimburse Convers for health insurance for the Executive and his immediate family, the cost of telephone, television and internet access at the Executive's domicile. 

Article 5: Stock Options  

	5.1
	The
Company shall procure that SBS grants to the Executive a 10 (ten) year option to purchase in the aggregate 300,000 registered common shares in SBS (the  "Option Shares") pursuant to and in

5

 

accordance
with the terms of the SBS 2004 Share Incentive Plan (the "Plan") and the option award letter (the "Option Award
Letter"). 

	5.2
	On
and subject to the terms of the Plan and the Option Award Letter, the Option Shares shall vest as follows: 

	 
	 	Exercise Price: €26.78

	Date of vesting
 
	 	No. of Option

Shares Vesting

	14 June 2005	 	37,500
	14 December 2005	 	37,500
	14 June 2006	 	37,500
	14 December 2006	 	37,500
	14 June 2007	 	37,500
	14 December 2007	 	37,500
	14 June 2008	 	37,500
	14 December 2008	 	37,500

For
the avoidance of doubt, the Exercise Price shall be the price of the SBS stock at the close of trading on NASDAQ on 14 December 2004. 

	5.3
	The
Company undertakes to procure that SBS shall take all necessary corporate action in order to ensure the Option Shares vest in the Executive in accordance with the terms of this
Article 5.

	5.4
	If
this Agreement is terminated pursuant to Article 2.4, all Options which have not vested shall lapse.

	5.5
	If
this Agreement is terminated pursuant to Articles 2.5 or 7 respectively then the Executive shall have the full ten-year period in which to exercise all of the Option
Shares that have been vested.

	5.6
	If
this Agreement is terminated pursuant to Articles 2.4 or 8, the Executive resigns or this Agreement expires without being renewed then the Executive will have 90 days from
the date this Agreement terminates (the "Termination Date") to exercise all of the Option Shares which have vested at the Termination Date.

	5.7
	If
the Executive fails to exercise the Option Shares within the ninety (90) day period referred to in Article 5.6 then such Option Shares which remain unexercised shall
lapse.

	5.8
	The
Company will procure that the Executive will be entitled to exercise any of the Option Shares through SBS's cashless exercise program during and following the term of this
Agreement.

	5.9
	The
Company undertakes to procure that if the Executive dies during the Term, SBS will ensure that:

	(a)
	All
Option Shares which have vested in the name of the Executive prior to the date of his death, will be transferred into the name of his spouse forthwith; and

	(b)
	All
Option Shares which have not vested as at that date will vest immediately, in the name of his spouse. 

Article 6: Holiday Entitlement  

	6.1
	The
Executive shall be entitled to 5 (five) weeks of paid vacation each year during the Term. 

6

 

Article 7: Adverse Change  

	7.1
	If
during the Term the Executive reasonably believes that:

	(a)
	there
has been a material adverse change in his working environment as set out in this Agreement caused by a Change of Control (a  "MAC");

	(b)
	a
material breach of this Agreement has been committed by the Company (a "Material Breach");

	(c)
	a
permanent change in the range of duties, functions and responsibilities which the Executive is required to perform for the SBS Group occurs as contemplated in Article 7.7
whether or not following a Change of Control (a "Material Change of Responsibilities"), 

then
the following shall apply: 

	(d)
	in
the event of a MAC or Material Breach occurring, the Executive shall have the right to terminate this Agreement after giving reasonable notice in writing to the Company requiring
the MAC or Material Breach to be cured to the reasonable satisfaction of Convers (such reasonable notice not to be less than ten (10) days and no more than thirty (30) days);

	(e)
	in
the event of Material Change of Responsibilities being implemented at any time during the Term (the "Effective Date"), if there is
more than twelve (12) months of the Term remaining as at the Effective Date, then:

	(i)
	Convers
agrees that the services of the Executive shall be available to the Company for a further period of a minimum of twelve months from the Effective Date (the  "Work Out Period"); and

	(ii)
	at
any time beginning no earlier than the sixth (6) month and ending no later than the end of the ninth (9) month during the Work Out Period, Convers may serve notice
terminating this Agreement and such termination shall be effective at the end of the Work Out Period.

	7.2
	If
no notice of termination is given in accordance with Article 7.1(e), Convers shall have no further right of termination in respect of the Material Change of
Responsibilities.

	7.3
	If
there is less than twelve months of the Term outstanding at the Effective Date, then Convers agrees that the Executive will continue to perform his services until the end of the
Term.

	7.4
	If
following a Change of Control, the Executive suffers both a MAC and a Material Change of Responsibilities, then the following shall apply:

	(a)
	if
the MAC and the Material Change of Responsibilities are implemented at the same time, then Article 7.1(d) and not Article 7.1(e) will govern the rights of the
Executive in such circumstances; or

	(b)
	if
a Material Change of Responsibilities occurs to which the provisions of Article 7.1(e) or Article 7.3 are applicable and there is a subsequent MAC, then the
provisions of Article 7.1(d) will become immediately operative and the Executive may invoke his rights under that Article.

	7.5
	If
a Material Breach occurs at any time during the Term, the provisions of Article 7.1(d) shall apply irrespective of whether this breach occurs during any Work Out Period or
otherwise. 

For
the purposes of this Article 7: 

"Change of Control" means the acquisition whether directly or indirectly of common shares of SBS by any person or persons connected with each other or
persons acting in concert with 

7

 

each
other, as a result of which such person or persons would obtain control over that number of common shares in SBS which in aggregate confers 50% or more of the voting rights normally exercisable
at General Meetings of SBS or any merger, consolidation, reorganisation or similar transaction of like effect or any change in the composition of the Board whereby any such person or persons shall
have the ability to control the decisions of the Board or any similar circumstances; 

"connected" in the context of determining whether one person is connected with another, shall be determined in accordance with the provisions of
Section 839 of the Income and Corporation Taxes 1988 (UK); and 

"acting in concert" shall have the meaning set out in the City Code on Takeovers and Mergers (UK). 

	7.6
	If
this Agreement is terminated pursuant to Article 2.5 or this Article 7, upon such termination:

	(a)
	Convers
will be entitled to receive any Annual Incentive Fee payable or any part thereof which has accrued, on a pro-rata basis for the relevant Financial Period in which
the Agreement is terminated pursuant to Article 2.5 or this Article 7, provided that Convers shall not be entitled to any Annual Incentive Fee if the termination occurs within the first
6 (six) calendar months of any Financial Period during the Term;

	(b)
	Convers
will be entitled to receive the Termination Payment in accordance with Article 2.5; and

	(c)
	All
Option Shares will vest immediately. 

All
other payments which may have been payable hereunder shall cease to accrue from the date of termination. 

	7.37.7
	For
the purposes of this Agreement, a Material Change in Responsibilities will have deemed to have occurred if the Executive loses primary responsibility for the management of any
of the key operations of the SBS Group (the "Key Business Areas") other than through a disposal of a controlling interest by SBS of such Key Business
Areas in the ordinary course of business. The Key Business Areas as at the date of this Agreement are:

	•
	VT4
Belgium, TV5 Belgium;

	•
	SBS
Netherlands (SBS6, Net5 and Veronica, including the Veronica TV guide);

	•
	Kanal
5 Sweden;

	•
	SBS
Denmark (TVD1 and TVD2);

	•
	TV2
Hungary, Irisz Hungary;

	•
	TV
Norge Norway;

	•
	SBS
Radio Group; and

	•
	Digital
Channel Group. 

The
Parties agree that if any other consolidated operation of the SBS Group exceeds 10% of the EBITDA of the SBS Group (on a consolidated basis) for any Financial Period during the Term, it shall be
considered a Key Business Area. 

Article 8: Incapacity  

	8.1
	If,
in the opinion of the Board after good faith consultation with the Executive's physician, the Executive is or has been unable to substantially perform his material duties by
reason of illness or 

8

 

injury
for a period or periods exceeding six months in any period of 12 consecutive months or if the Board at any time during the pendency of any such incapacity that has lasted in excess of one month
has good faith reason to believe that because of any such cause the Executive will be unable to substantially perform his material duties for a period or periods of six months or more (over any
consecutive 12 month period including past periods of incapacity), the Company shall be entitled at any time during the pendency of any such incapacity to give Convers not less than
twenty-four months' notice of termination of this Agreement. 

Article 9: Arbitration  

	9.1
	Any
disputes arising out of or in connection with the terms of this Agreement shall be finally settled under the Rules of Arbitration of the International Chamber of Commerce by one
or more arbitrators in accordance with such Rules. All arbitration proceedings shall be held in London and shall be conducted in the English language. 

Article 10: Confidentiality; Conflict of Interest; Non-Competition  

10.1    Confidentiality    

Convers
agrees that during the Term and thereafter, it will not, and it will not permit any of its partners, employees, consultants, advisers or the Executive to, use for its or their purpose,
disclose to any person or misappropriate any trade secret or other confidential information which they may obtain concerning any aspect of the business, management, financial position or operating
results of the SBS Group. 

10.2    Conflict of Interest    

Convers
covenants that during the Term it will not, and it will not permit any of its partners employees, consultants, advisers or the Executive to, have any direct or indirect equity, debt or
contractual relationship with or other interest in any customer, supplier or person who competes with the SBS Group. 

10.3    Non-Competition    

Convers
covenants that during the Term and for a period of 12 (twelve) months thereafter (the "Restricted Period"), it will not, and it will not permit
any of its partners, employees or the Executive
(the "Restricted Persons") (other than through repudiatory breach by the Company), without the prior approval of the Board, either alone or jointly with
or on behalf of any person, firm, company or entity and whether on the account of any of the Restricted Persons or in any other capacity whatsoever, either directly or indirectly, to: 

	(a)
	Engage,
assist or be interested in any undertaking which provides services similar to those of the SBS Group in the 12 (twelve) months prior to termination in the Netherlands,
Belgium, Denmark, Sweden, Norway, Romania, Hungary or in any other country within Europe in which the SBS Group has established operations which are required to be consolidated for the purposes of US
GAAP, immediately prior to the date of termination;

	(b)
	Offer
to employ or engage or solicit the employment or engagement of any person who, immediately prior to the date of termination, was an employee of any company in the SBS Group
occupying a senior or managerial position likely in the opinion of the Company to be:

	(i)
	in
possession of confidential information relating to; or

	(ii)
	able
to influence the customer relationships or connections of 

any
member of the SBS Group; or 

9

 

	(c)
	Solicit
or accept the custom of any person in respect of goods or services competitive with those supplied by any member of the SBS Group during the period of 6 (six) months
immediately prior to the date of termination, such person having been a customer of a member of the SBS Group in respect of such goods or services during such period.

	10.4
	Each
of the obligations contained in Article 10.3 constitutes an entirely separate and independent restriction on each Restricted Person and, if any part is found to be
unenforceable, the remainder will remain valid and enforceable.

	10.5
	While
the restrictions are considered by the parties to be fair and reasonable in the circumstances, it is agreed that if any such restrictions should be judged to be void or
ineffective for any reason, but would be treated as valid and effective if part of the wording thereof were deleted, the said restrictions shall apply with such modifications as will be necessary to
make them valid and effective.

	10.6
	If
any undertaking contained in this Article 10 shall be held to be void but would be valid if deleted in part or reduced in application, such undertaking shall apply with
such deletion or modification as may be necessary to make it valid and enforceable. Without prejudice to the generality of the foregoing, such period (as the same may previously have been reduced by
virtue of this Article 10.6) shall take effect as if reduced by six months until the resulting period shall be valid and enforceable.

	10.7
	The
Company agrees that if it elects to enforce the provisions of this Article 10, it will pay Convers the Base Management Fee in accordance with Article 4.1 during the
Restricted Period. Convers agrees that such payment will be included as part of and not in addition to any other payments of fees which the Company is required to pay Convers under this Agreement
after termination of this Management Services Agreement. 

Article 11: Non-Disclosure  

	11.1
	The
Company and Convers agree that neither of them will disclose, and neither of them will permit any of their partners or employees, as the case may be, to disclose any of the terms
or conditions of this Agreement to any person without the prior consent of the other, except to the extent that disclosure of this Agreement or its contents is required to be made in accordance with
any applicable law, regulation or the listing rules of any stock exchange. 

Article 12: Miscellaneous  

12.1    Relationship Between the Parties    

Neither
Convers nor any of its partners or employees shall have any power or authority to assume or create any obligation for or on behalf of the SBS Group to enter into any agreement or to make any
representation with respect to the SBS Group or any of its products or services, except that the Executive shall have only such powers as are granted to him by the terms of this Agreement, the Board
and/or the Chairman. 

12.2    Governing Law    

This
Agreement shall be governed by and construed under the laws of England. 

12.3    Notices and Communications    

Any
notice or other communication required or which may be given hereunder shall be in writing and shall be delivered personally, sent by facsimile transmission or sent by mail, postage prepaid, and
shall be deemed to have been given when either delivered personally, sent by facsimile 

10

 

transmission
or, if mailed, three (3) business days after the date of deposit thereof in the mail, addressed as follows: 

	 	(a)	 	If to the Company:
	

 	

 	
 	

PO Box 202

Sommerville House, Phillips Street

St. Helier, Jersey JE4 8SP

Channel Islands, British Isles

Attention: Harry Evans Sloan
	

 	

 	
 	

with a copy to:
	

 	

 	
 	

Erik Moe

General Counsel

Rietlandpark 353

1019 EM Amsterdam

The Netherlands

Facsimile: +31 (20) 519 1996
	

 	

(b)	
 	

If to Convers:
	

 	

 	
 	

Nerine House

St. George's Place

22 Cornet Street

St. Peter Port, Guernsey

Attention: Markus Tellenbach
	

 	

 	
 	

with a copy to:
	

 	

 	
 	

Mr. Markus Tellenbach

Grafton

St. George's Hill

Weybridge

Surrey, KT13 0LE

England, United Kingdom
	

 	

 	
 	

Facsimile no: +1932 848 175

Either
party may, by written notice to the other party in accordance with this Article, designate another address or person to whom any notice or communication is to be given hereunder. 

12.4    Entire Agreement: Modification    

This
Agreement supersedes all prior agreements between the Company, SBS, Convers and Mr. Markus Tellenbach with respect to the subject matter of this Agreement. This Agreement may not be
amended or modified except by a written agreement signed by the Company, SBS and Convers. 

12.5    Assignment: Successors    

Subject
to the provisions of this Article 12.5, this Agreement shall be binding upon and enure to the benefit of each of the parties hereto and their respective successors, permitted assigns
and legal representatives. Neither this Agreement nor any rights arising hereunder are assignable by Convers without the prior written consent of the Company. The Company shall have the right to
assign all or any part of its rights arising under this Agreement to any wholly owned affiliate of SBS upon written notice to Convers. 

11

 

Notwithstanding
the foregoing, the parties agree that this Agreement will be assigned from Convers to the Executive if: 

	(a)
	Any
legislative change or any ruling, order, or direction is made or contemplated by any taxation, judicial or other regulatory or governmental authority having jurisdiction over
either party which will have the effect that there is or is likely to be a significant reduction in the financial benefits available to either party by virtue of the current contractual arrangements
between them (each an "Adverse Effect"); or

	(b)
	The
Company or SBS itself moves its corporate establishment and as a result of that change an Adverse Effect will or is likely to result from such corporate move. 

12

 

        IN WITNESS WHEREOF, the undersigned have duly executed and delivered this Agreement as of the 14th day of December, 2004. 

	SCANDINAVIAN BROADCASTING SYSTEM

(JERSEY) LIMITED	 	CONVERS MEDIA EUROPE

LIMITED PARTNERSHIP
	

 	

 	
 	

 	
 	

 	

 
	By:	/s/ Harry Evans Sloan
 Harry Evans Sloan	 	 	 	By:	/s/ Markus Tellenbach
 Markus Tellenbach

General Partner
	

 	

 	
 	

 	
 	

 	

 
	SBS BROADCASTING SA	 	 	 
	

 	

 	
 	

 	
 	

 	

 
	By:	/s/ Harry Evans Sloan
 Harry Evans Sloan	 	/s/ James McNamara
 James McNamara	 	 	 

13

QuickLinks

Exhibit 4.18

MANAGEMENT SERVICES AGREEMENT

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