Document:

Exhibit 10.29

 

AWARD AGREEMENT

FOR THE YEAR 2002 OFFERING

UNDER THE SCB DEFERRED COMPENSATION AWARD PLAN

 

You have been granted an Award under the SCB Deferred
Compensation Award Plan (the “Plan”) pursuant to the year 2002 offering under
the Plan, as specified below:

 

Participant (“you”): 
Shalett, Lisa A.

 

Amount of Award: 
$2,000,000.00

 

Date of Grant 
10/2/02

 

In connection with your Award, you and Alliance
Capital Management L.P. agree as set forth in this agreement (the
“Agreement”).  The Plan provides a
description of the terms and conditions governing your Award.  If there is any inconsistency between the
terms of this Agreement and the terms of the Plan, the Plan’s terms completely
supersede and replace the conflicting terms of this Agreement.  All capitalized terms have the meanings
given them in the Plan, unless specifically stated otherwise in the Agreement.

 

1.             Award
Denomination. Although your Award is initially denominated in
cash, it will be converted into Holding Units, Money Market Shares or a
combination thereof.  You may elect the
percentage of your Award to be denominated in Holding Units and Money Market
Shares by timely completing and submitting a year 2002 offering Investment
Election Form.  Your election will be
subject to the approval of the Committee. 
If you fail to make a timely election your Award will be invested 100%
into Money Market Shares, unless the Committee determines otherwise, in its
sole discretion.

 

2.             Vesting
of Award. Your Award shall vest with respect to one-third of the
Holding Units and Money Market Shares representing the Award as of each of the
first, second and third anniversary of the Date of Grant of your Award, provided
that you remain in the employ of the Company as of each such anniversary,
except that your Award will fully vest:

 

(a)           upon your death, Disability or
attainment of age 65 prior to your Termination of Employment; or

 

(b)           as of the date that the employment of
all Committee members (after having exhausted all replacements) has either been
(i) terminated involuntarily other than for Cause or (ii) terminated by such
Committee members for Good Reason.

 

 

3.             Forfeitures.   To the extent that any portion of your
Award is not vested as of, or in connection with, your Termination of
Employment, the Holding Units and Money Market Shares comprising the unvested
portion of your Award shall be forfeited.

 

4.             Distribution
of Award. The Holding Units and Money Market Shares under
your Award will be distributed to you in accordance with your year 2002
offering Distribution Election Form.  If
you fail to submit a properly completed year 2002 offering Distribution
Election Form on a timely basis, the Holding Units and Money Market Shares
under your Award will be distributed in a lump sum on or about the third anniversary
of the Date of Grant of your Award, unless the Committee determines otherwise,
in its sole discretion.

 

5.             Beneficiary
Designation. By completing a Beneficiary Designation Form
provided to you by the Company under the Plan, you may select a beneficiary to
receive your Award in the event of your death. 
If you have previously completed a Beneficiary Designation Form under
the Plan, your designation under that form will apply with respect to this
Award.  If you do not submit a properly
completed Beneficiary Designation Form under the Plan, your Award will be
distributed to your estate in the event of your death.

 

6.             Tax
Withholding.  As and when any
federal, state or local tax or any other charge is required by law to be
withheld with respect to the vesting of your Award, the payment of dividends or
distributions on any Holding Units and Money Market Shares under the Award and
the distribution of such Holding Units or Money Market Shares (a “Withholding
Amount”), you agree promptly to pay the Withholding Amount to the Company in
cash.  You agree that if you do not pay
the Withholding Amount to the Company, the Company may withhold any unpaid
portion of the Withholding Amount from any amount otherwise due to you.  Notwithstanding the foregoing, the Company may,
in its sole discretion, establish and amend policies from time to time for the
satisfaction of Withholding Amounts by the deduction of a portion of the
Holding Units or Money Market Shares under your Award.

 

7.             Administration.  It is expressly understood that the
Committee is authorized to administer, construe, and make all determinations
necessary or appropriate to the administration of the Plan and this Agreement,
all of which shall be binding upon you. 
The Committee is under no obligation to treat you or your award
consistently with the treatment provided for other participants in the Plan.

 

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8.             Miscellaneous.

 

(a)           This
Agreement does not confer upon you any right to continuation of employment by
the Company, nor does this Agreement interfere in any way with the Company’s
right to terminate your employment at any time.

 

(b)           This
Agreement will be subject to all applicable laws, rules, and regulations, and
to such approvals by any governmental agencies or national securities exchanges
as may be required.

 

(c)           This
Agreement will be governed by, and construed in accordance with, the laws of
the state of New York (without regard to conflict of law provisions).

 

(d)           This
Agreement and the Plan constitute the entire understanding between you and the
Company regarding this award.  Any prior
agreements, commitments or negotiations concerning your Award are
superseded.  This Agreement may be
amended only by another written agreement, signed by both parties.

 

BY SIGNING BELOW, YOU AGREE TO ALL OF THE TERMS AND
CONDITIONS DESCRIBED ABOVE AND IN THE PLAN.

 

IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be executed effective as of 10/2/02.

 

 

	
   

  	
  Alliance Capital Management L.P.

  
	
   

  	
  By: Alliance Capital Management

  Corporation, General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Participant

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Lisa A. Shalett

  	
   

  
	
   

  	
  LISA A. SHALETT

  

 

3Exhibit 10.1

 

March 7, 2003

 

Mr. Bruce W. Calvert

Alliance Capital

Management Corporation

1345 Avenue of the Americas

New York, NY 10105

 

Dear Bruce:

 

This letter
sets forth the terms of your agreement with Alliance Capital Management
Corporation (the “Company”) and Alliance Capital Management
L.P. (the “Partnership”) in connection with your new role and
responsibilities.

 

1.          Effectiveness and Employment.  You will resign as Chief
Executive Officer of the Company effective June 30, 2003.  From January 1, 2003 to March 31, 2009
(the “Expiration
Date”) or such earlier date that your employment terminates in
accordance with the terms of this agreement (the “Employment Term”), you will
devote your best efforts and energies to the performance of your duties hereunder;
provided,
however, that it shall not be a violation of this agreement for you to (a)
serve on corporate, civic or charitable boards or committees and (b) manage
your personal investments, so long as such activities described in clauses (a)
and (b) do not significantly interfere with the performance of your
responsibilities in accordance with this agreement and otherwise comply with
the Partnership’s policies and procedures.

 

2.          Position and Responsibilities.  You will serve as Chairman of the
Board of Directors of the Company (the “Board”) until December 31, 2004, in which
capacity you will report to the Board. 
During this period and for the remainder of the Employment Term you will
serve as an executive adviser to the Chief Executive Officer (“CEO”)
of the Partnership.  In addition, for so
long as you are willing during the Employment Term, you will report to the CEO
and advise on Strategic Business Unit matters, manage money and participate in
the resolution of various litigation matters and serve in such other capacities
as you and the Board may mutually agree.

 

 

3.          Compensation.

 

(a)   Base Salary.  From
January 1, 2003 through December 31, 2004, you will be entitled to receive
a minimum base salary of $275,000 per year. 
During the remainder of the Employment Term, you will receive a base
salary equal to the greater of $120,000 per year or an amount determined on an
annual basis by the Compensation Committee of the Board (“Compensation Committee”).  Your salary shall be payable in bi-weekly
installments or otherwise in accordance with the Partnership’s payroll
practices in effect from time to time.

 

(b)   Bonus.  For calendar year 2003, you will be entitled to receive an annual
bonus that is the greater of $1,000,000 or an amount determined by the Compensation
Committee and for calendar year 2004, you will be entitled to receive an annual
bonus that is the greater of $500,000 or an amount determined by the
Compensation Committee (collectively, “Guaranteed Bonuses”).  For the remainder of the Employment Term,
the amount and terms of your annual bonus will be subject to the discretion of
the Compensation Committee based upon the recommendation of the management
Finance Committee and consistent with your position and performance.

 

4.          Benefits.  During the Employment Term, you and your eligible
dependents shall continue to participate in the Partnership’s benefit plans and
programs, including group health, dental and life insurance.  You shall also continue to participate in,
contribute to or accrue benefits under the Partnership’s retirement and profit
sharing plans as generally available to other senior executives and under the
Alliance Capital Accumulation Plan.

 

5.          Equity.

 

(a)   Awards under the Partners Compensation Plan.  During the Employment Term, you shall
continue to participate in the Partners Compensation Plan.  For calendar year 2003, the Partnership will
make a contribution of the greater of $1,000,000 or an amount determined by the
management Finance Committee and for calendar year 2004, the Partnership will
make a contribution of the greater of $500,000 or an amount determined by the
management Finance Committee.  Awards
for subsequent years will be at the discretion of the management Finance
Committee consistent with your position and performance.

 

(b)   Awards under other Equity Plans.  During the Employment Term, you will be
eligible to receive grants and awards under the 1993 Unit Option Plan, the 1997
Long Term Incentive Plan and other newly adopted equity plans consistent with
your position and performance, as determined by the Board or the responsible
committee of the Board.

 

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6           Perquisites
and Expenses.

 

(a)   During the Employment Term, any travel,
including use of the Partnership’s leased or owned aircraft, will be on the
same basis and manner as travel by the CEO and President of the Company.  You will be entitled to use the aircraft for
a minimum of 100 hours per year, unless the Partnership ceases to lease or own
an aircraft.

 

(b)   During the Employment Term, you will be
entitled to perquisites on the same terms and conditions as the CEO and
President.  Such perquisites currently
include club memberships and the use of a company-provided automobile.  During the period you remain as Chairman,
you will also be entitled to the services of a chauffeur in connection with
your services to the Company and the Partnership.

 

(c)   The Partnership will reimburse you for all
reasonable business-related expenses incurred by you during the Employment Term,
in accordance with the Partnership’s policies and procedures.

 

7.          Office and Support Staff.

 

(a)   During the Employment Term, the Partnership
will make available to you at its New York headquarters such office space and
other assistance as is consistent with your position, responsibilities and
duties.  In addition to the foregoing,
the Partnership will provide you with a secretary with compensation and
abilities commensurate with your current secretary.

 

(b)   From September 30, 2003 through the remainder
of your Employment Term, the Partnership will provide a monthly allowance in an
amount not to exceed $15,000, which will be used to cover any costs incurred by
you in furnishing, equipping and operating an office at home or another
location of your choice.

 

8.          Termination of Employment.

 

(a)   Termination by the Partnership without Cause.  In the event of a termination of your
employment by the Partnership without Cause (as defined below), you shall be
entitled to receive (i) the base salary that would otherwise have been payable
to you pursuant to Section 3(a) had you remained employed through the
Expiration Date, to the extent not previously paid, (ii) the Guaranteed Bonuses
that would otherwise have been payable to you pursuant to Section 3(b) had you
remained employed through the payment date of the Partnership’s calendar year
2004 annual bonuses, to the extent not previously paid, (iii) payment of the
minimum amounts that would otherwise have been awarded to you under the
Partners Compensation Plan pursuant to Section 5(a) above had you remained
employed through the Expiration Date, to 

 

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the extent not
previously contributed on your behalf to the Partners Compensation Plan, (iv)
full vesting of all awards made to you or on your behalf under the
Partnership’s equity plans prior to the termination of your employment,
including your awards under the Partners Compensation Plan, (v) comparable
health and welfare benefits for yourself, your spouse and your dependents
through the Expiration Date, (vi) a lump sum cash payment equal to the sum of
(A) the product of $20,000 times the number of plan years for which you will
not receive a Partnership contribution to your account under the tax-qualified
Profit Sharing Plan for Employees of Alliance Capital Management L.P. as a
result of the your termination, through and including plan year 2008, but
reduced by the amount of any contributions made to your plan account with
respect to the plan year in which your termination occurs, if any and (B) the
actuarial equivalent of the additional benefit you would have accrued under the
tax-qualified Retirement Plan for Employees of Alliance Capital Management
L.P., in each case, had you remained employed through the Expiration Date, (vii)
any other benefits to which you may be entitled in accordance with the terms of
the plans, policies and arrangements referred to in Section 4 hereof upon or by
reason of such termination and (viii) continuation of the perquisites,
reimbursements and support provided under Section 6 and 7 hereof until the
Expiration Date.  The amounts payable
under clauses (i), (ii), (iii) and (vi) above and your awards under the
Partners Compensation Plan shall be distributed to you within 30 days after
your termination of employment.

 

(b)   Termination by the Partnership for Cause.  In the event of a termination of your
employment for Cause (as defined below), you shall be entitled to receive the
pro rata portion of your base salary for services rendered to the date of termination,
to the extent not previously paid, and you shall not be entitled to any further
benefits or payments hereunder.  The
benefits and awards to which you may be entitled pursuant to the plans,
policies and arrangements referred to in Sections 4 and 5 hereof shall be
determined upon such termination in accordance with the terms of such plans,
policies and arrangements.  For purposes
of this agreement, “Cause” means your conviction for a felony
under the laws of the United States or any state thereof or a breach of your
obligations set forth in Section 9(a) or (b) hereof, which breach is material
to the business of the Partnership.

 

(c)   Resignation.  In the event of your resignation, you shall be entitled to
receive the pro rata portion of your base salary for services rendered to the
date of termination, to the extent not previously paid, and you shall not be
entitled to any further benefits or payments hereunder.  The benefits and awards to which you may be
entitled pursuant to the plans, policies and arrangements referred to in
Sections 4 and 5 hereof shall be determined upon such termination in accordance
with the terms of such plans, policies and arrangements.  Your resignation will only be valid 

 

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hereunder if
effected pursuant to a written notice signed by you and submitted to the
Secretary of the Company for delivery to the Board.

 

(d)   Termination due to Death or Disability.  In the event that your employment is
terminated due to your death or Disability (as defined in the Partners
Compensation Plan as in effect as of the date hereof), you or your estate (as
applicable) shall be entitled to receive the benefits and payments that you
would have received under Section 8(a) above had your termination of employment
been a termination by the Partnership without Cause, and you, your spouse and
your dependents shall be entitled to continued health benefits as described in
clause (v) of Section 8(a), provided, however, that neither you, your estate
nor your survivors will be entitled to the payment described in clause (vi) of
Section 8(a) or the continuation of the perquisites, reimbursements and support
provided under Section 6 and 7 (and clause (viii) of Section 8(a)) hereof in
the event your employment is terminated due to your death or Disability.

 

9.          Covenants.

 

(a)   Confidentiality.  You acknowledge that you have acquired and will acquire
confidential information respecting the business of the Partnership.  Accordingly, you agree that you will not
disclose, at any time (during the Employment Term or thereafter) any such
confidential information to any unauthorized third party without the written
consent of the Partnership as authorized by the Board, except as required to
respond to a subpoena or other legal proceeding and except to consult with
legal or other advisors, provided that such advisors agree to be
bound by the provisions of this Section 9(a); provided, that in the event
you are requested pursuant a subpoena or other legal proceeding to disclose any
such confidential information, you shall promptly notify the Partnership of
such request and shall fully cooperate with the Partnership in any attempt to
contest such request.  For this purpose,
information shall be considered confidential only if such information is
proprietary to the Partnership and has not been made publicly available prior
to its disclosure by you.

 

(b)   Non-Competition.  From the date hereof through the first anniversary of any
termination of your employment hereunder, or in the case of a termination of
your employment by the Partnership without Cause, through the date of such
termination, you will not, without the consent of the Board, directly or
indirectly, engage or be interested in (whether as an owner, partner,
shareholder, employee, director, officer, agent, consultant or otherwise), with
or without compensation, any business that is in direct or indirect competition
with any active business of the Partnership, any successor to the Partnership’s
business, or any of their affiliates or subsidiaries and in which you
participated while you were employed by the Partnership, any successor to the
Partnership’s business or any of their affiliates or subsidiaries prior to the
date hereof or 

 

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during the
Employment Term.  Nothing in this
Section 9(b) shall prohibit you from acquiring or holding, directly or
indirectly, any units in the Partnership or not more than 3% of any class of
publicly traded securities of any business. 
Notwithstanding anything to the contrary, your obligations under this
Section 9(b) shall in no event extend beyond the Expiration Date.

 

(c)   Remedy for Breach and Modification.  You acknowledge that the provisions of this
Section 9 are reasonable and necessary for the protection of the Partnership
and that the Partnership will be irrevocably damaged if such covenants are not
specifically enforced.  Accordingly, you
agree that, in addition to any other relief or remedies available to the
Partnership, the Partnership shall be entitled to seek and obtain an
appropriate injunction or other equitable remedy from a court with proper
jurisdiction for the purposes of restraining you from any actual or threatened
breach of such covenants, and no bond or security will be required in
connection therewith.  If any provision
of this Section 9 is deemed invalid or unenforceable, such provision shall be
deemed modified and limited to the extent necessary to make it valid and
enforceable.

 

(d)   Cooperation.  Following
any termination of your employment for any reason or upon the expiration of
this agreement, you agree that you will cooperate with the Company’s and the
Partnership’s reasonable requests relating to matters that pertain to your
employment by the Company and the transition of your duties to your
successor.  In addition, following
termination of your employment by either party, you will cooperate with the
Company or the Partnership’s reasonable requests relating to any legal proceedings
on behalf of the Company or the Partnership, or otherwise making yourself
reasonably available to the Company or the Partnership for other related
purposes.  Any such cooperation
hereunder will be performed at times scheduled taking into consideration your
other commitments and the Partnership will reimburse you for your reasonable
expenses incurred in connection with your cooperation.

 

10.        Indemnification.  During the Employment Term, you
shall be an “Indemnified Person” within the agreement of Limited Partnership of
the Partnership.  You shall also be
covered by the Partnership’s directors’ and officers’ liability policy.  The foregoing indemnity shall not apply to
claims against you that arise under the terms of this agreement and nothing
herein shall require indemnification for any conduct occurring after the
Employment Term.

 

11.        Legal Rights, Fees and Expenses.  The Partnership will reimburse
all reasonable attorneys’ and related fees and expenses incurred by you in
connection with the negotiation of this agreement.  In addition, the Partnership will reimburse all reasonable
attorneys’ and related fees and expenses incurred by 

 

6

 

you in connection with any
dispute associated with the interpretation, enforcement or defense of your
rights under this agreement unless you have proceeded without substantial merit
or good faith.  Nothing contained herein
is intended to limit remedies or damages to which the parties may be entitled
for any breach of this agreement either in law or in equity.

 

12.        Miscellaneous.

 

(a)   Governing Law.  This agreement shall be governed by New York law, without
reference to principles of conflicts of law.

 

(b)   Entire Agreement; Amendments.  This agreement contains the entire
understanding of the parties with respect to the subject matter hereof,
including the terms and conditions of your continued employment with the
Company and the Partnership.  There are
no restrictions, agreements, promises, warranties, covenants or undertakings between
the parties with respect to the subject matter herein other than those
expressly set forth herein.  This
agreement may not be altered, modified, or amended except by written instrument
signed by the parties hereto.

 

(c)   Assignment.  This agreement shall not be assignable by you, and shall be
assignable by the Company or the Partnership only to any affiliate of the
Company or the Partnership or to any corporation or other entity resulting from
the reorganization, merger or consolidation of the Company or the Partnership
with any other corporation or entity or any corporation or entity to or with
which the Company’s or the Partnership’s business or substantially all of its
business or assets may be sold, exchanged or transferred.

 

(d)   Waiver. 
The failure of a party to insist upon strict adherence to any term of
this agreement on any occasion shall not be considered a waiver thereof or
deprive that party of the right thereafter to insist upon strict adherence to
that term or any other term of this agreement.

 

(e)   Severability.  In the event any provision of this agreement shall be held
illegal or invalid for any reason, the illegality or invalidity shall not
affect the remaining parts of the agreement and the agreement shall be
construed and enforced as if the illegal or invalid provision had not been
included.

 

(f)    Taxes. 
The Partnership shall have the right to deduct from all amounts paid to
you any taxes required by law to be withheld in respect of payments pursuant to
this agreement.

 

(g)   Arbitration.  Subject to Section 9(c), any dispute arising out of, or relating
to, this agreement shall be resolved by binding arbitration, to be held in the
Borough of Manhattan in New York City, under the 

 

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auspices of
the American Arbitration Association and the rulings of such arbiters shall be
enforceable by any court of competent jurisdiction.

 

(h)   Headings.  Section
headings are used herein for convenience of reference only and shall not affect
the meaning of any provision of this agreement.

 

(i)    Notice. 
Any notice, consent, request or other communication made or give in
connection with this agreement shall be in writing and shall be deemed to have
been duly given when delivered or mailed by registered or certified mail,
return receipt requested, to those listed below at their following respective
addresses or at such other address as each may specify by notice to the others:

 

To the
Executive:

 

At the address
set forth below

 

To the
Partnership:

 

Alliance Capital Management Corporation

1345 Avenue of the Americas

New York, New York 10105

Attention:     David Brewer

Senior Vice President and Secretary

 

Sincerely,

 

	
  ALLIANCE CAPITAL
  MANAGEMENT L.P.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  ALLIANCE CAPITAL MANAGEMENT

  CORPORATION, its General Partner

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   /s/ John D. Carifa

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  AGREED TO AND ACCEPTED BY

  	
   

  
	
   

  	
   

  
	
  /s/ Bruce W. Calvert

  	
   

  
	
  Bruce W. Calvert

  	
   

  
	
   

  	
   

  
	
  March 7, 2003

  	
   

  
	
  Date

  	
   

  
	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
					

 

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