Document:

April 30, 2001

April 30, 2001

 

Dave H. Williams

Alliance Capital

Management Corporation

1345 Avenue of the Americas

New York, NY 10105

 

Dear Dave:

 

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.  Title/Position.  For the period commencing on May 1, 2001

(“Effective Date”) through May 1, 2006 (the “Term”), you shall serve as

Chairman Emeritus of the Board of Directors (“Board”) of the Company, subject

to the election by the Board and the shareholders as necessary.  Effective as of May 1, 2001 you shall resign

as a member of committees of the Board, as a member of the Executive Committee,

as a Director and as Chairman of the Alliance Money Market Funds, and as an

officer and as a member of the boards of directors of all subsidiaries of the

Partnership.

From the Effective Date through December 31, 2003

(“Employment Period”), you shall continue to be employed by the Partnership and

shall participate in meetings with directors and employees of the Partnership

and its affiliates when reasonably requested by the Partnership.  During the Employment Period, you shall also

continue to serve as a Chairman and President of The India Liberalisation Fund,

The Spain Fund, The Austria Fund and The Southern Africa Fund (collectively,

the “Funds”) and you shall continue to serve as directors of such Funds,

subject in all cases to the election by the boards of directors and

shareholders of the Funds as necessary.

2.  Compensation.  During the Employment Period, without regard

as to whether you are elected or re-elected Chairman Emeritus of the Board, you

shall be paid a guaranteed annual salary of $275,000, payable in bi-weekly

installments and subject to applicable withholding and other taxes.  From January 1, 2004 through May 1, 2006

(“Consulting Period”), you shall be paid a fee at the rate of $275,000 per

year, payable in bi-weekly installments, regardless as to whether you are

re-elected Chairman Emeritus of the Board. 

During the Term, you shall no longer participate in the Partnership’s

bonus program and shall no longer be eligible for new option or other incentive

awards, including new awards under the Partners Compensation Plan.  All prior awards under the Partners

Compensation Plan shall continue to vest in accordance with applicable terms

under that Plan.  If you should die or

become disabled during the Term, payments representing the salary or the

consulting fee, as the case may be, remaining to be paid for the remainder of

the Term shall be paid to you or, in the case of your death, to your spouse in

bi-weekly installments.

 

1

 

During the Employment Period, for your services to

the Funds, you shall be compensated at one-half the director’s fee payable to

non-affiliated directors of the Funds. 

In addition, during the Employment Period, to the extent that you are

requested to meet with clients and you agree to do so, the Partnership shall

compensate you at a rate of $200 per hour and reimburse you for your reasonable

expenses in accordance with the Partnership’s policies and procedures.

3.  Benefits.  During the Employment Period, you and your

eligible dependents shall continue to participate in the Partnership’s group

health, dental and life insurance plans. Following the end of the Employment

Period, the Partnership shall continue to provide you and your spouse with

comparable dental and medical benefits for your respective lives.  During the Employment Period you shall also

continue to participate in, contribute to or accrue benefits under the

Partnership’s retirement plans.

4.  Perquisites

and Expenses.  During the

Employment Period, at the Partnership’s expense of an amount not to exceed

$15,000 per year, you shall be entitled to standard senior executive officer

perquisites, including but not limited to, reimbursement of certain costs of

income tax preparation and a gym membership. 

During the Employment Period, you shall also be entitled to the use of

your current automobile and the services of your regular chauffeur during your

business hours or otherwise in connection with your services to the Company and

the Partnership.  If, during the

Employment Period, your automobile or chauffeur is unavailable for any reason

and you need an automobile or chauffeur in connection with the performance of

your services to the Company and the Partnership, the Partnership will use its

best efforts to provide you with another automobile or chauffeur, as the case

may be.  During the Consulting Period,

you shall be reimbursed in an amount of up to $90,000 per year, which shall be

used to cover any costs incurred by you in leasing another automobile and

hiring another chauffeur.

If you should die or become disabled during the Employment

Period, your spouse for the remainder of the Employment Period, shall be

entitled to the use of your automobile and the services of your regular

chauffeur during her business hours or otherwise in connection with her

services to the Partnership.

During the Employment Period, any travel by you in

connection with the performance of your duties hereunder or the business of the

Partnership or the Funds shall be on the same basis and manner as travel by

current members of the Executive Committee. 

In addition, during the Employment Period in furtherance of your duties

hereunder, you shall continue to have the use of the Partnership’s aircraft

under terms and conditions as determined by the  Executive Committee from time to time.

The Partnership or the Funds, as the case may

be, shall reimburse you for all reasonable business-related expenses incurred

by you during the Employment Period, in accordance with the Partnership’s or

the Fund’s policies and procedures.

 

2

 

5.  Office and

Support Staff.  During the

Employment Period, at the Partnership’s expense, you shall be entitled to use

your current office, conference room and print storage area and your current

support staff (which in your case, includes Ms. Suzanne B. McGrath, Executive

Secretary, and Mr. Michael W. Strempek, Administrative Assistant)

(collectively, “Administrative Staff”) shall assist you in the performance of

your duties.  You shall be entitled to additional

part-time or temporary secretarial services as required in your reasonable

judgment, subject to the approval of the Executive Committee.

During the Employment Period, should any member of

your Administrative Staff resign or should their employment otherwise be

terminated, you shall be entitled to hire a suitable replacement or

replacements at comparable levels of compensation and benefits in accordance

with the Partnership’s compensation and benefits policies for Senior Executive

Secretaries and Administrative Assistants in effect at such time.

During the Consulting Period, the Partnership agrees

to provide you with a monthly allowance in the amount of $25,000, which shall

be used to cover any costs incurred by you in (a) obtaining, furnishing and

equipping an office at a non-Partnership location and (b) paying any costs

relating to the employment of your Administrative Staff or their replacements.

6.  Art

Collection.  The Partnership

shall purchase certain prints from your collection currently housed in the

Partnership’s Tokyo office for an amount equal to $13,288.  During the Employment Period your print

collection at the Partnership’s office located in New York City shall remain; provided

that, you or your spouse shall have the right, at the Partnership’s

expense, to have the prints returned to you at a location in the New York City

metropolitan area on a gradual basis but in no event shall such prints be

returned any later than the end of the Employment Period.

7.  Use of

Facilities.  During the

Employment Period, in addition to hosting events in connection with your duties

hereunder, you and your wife shall be entitled to sponsor events at the

Company’s or the Partnership’s facilities for your non-profit activities to the

extent that such facilities are available and such use does not conflict with a

Company or Partnership event or activity. 

The Partnership shall cover the costs, including refreshments and

staffing, of such events that you and your wife sponsor, subject to a

limitation in the aggregate amount of $100,000 per year.

8.  Nondisparagement.  During the Term, you shall not make any

statement, written or oral, that would disparage the Partnership and its

affiliates or the personal or professional reputation of any of the present or

former directors or senior executive officers of the Partnership and its

affiliates.  During the Term, the

Partnership agrees that it shall not make, and it shall cause each of its

senior executive officers and directors and each senior executive officer and

director of its affiliates not to make any communication, whether written or

oral, that would disparage you or your professional or personal reputation.

 

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Notwithstanding the foregoing, nothing in this

Paragraph 8 shall prevent any person from (a) responding publicly to incorrect,

disparaging or derogatory public statements to the extent reasonably necessary

to correct or refute such public statements or (b) making any truthful

statement to the extent (x) necessary to enforce this agreement or (y) comply

with legal process required by applicable law or by any court, arbitrator or

administrative or legislative body (including any committee thereof) with

apparent jurisdiction to order such person to disclose or make accessible such

information.

You acknowledge that the provisions of this

Paragraph are reasonable and necessary for the protection of the Partnership

and its affiliates and that the Partnership and its affiliates will be

irrevocably damaged if such provisions are not specifically enforced.  Accordingly, you agree that a breach of any

of the provisions under this Paragraph will be deemed to be a material breach

of this agreement and will entitle the Partnership to terminate this agreement

and all further obligations it may have hereunder.

9.  No

Restrictions on Future Activities. 

You at any time may perform services for East Fund Management and

following the Employment Period, nothing in this agreement shall restrict your

employment by any third party.  However,

if you are employed by or provide services to a competitor of the Partnership

or any of its affiliates, with the exception of East Fund Management, at any

time during the Term, the Partnership shall be entitled to terminate all

further obligations it may have under this agreement, with the exception of its

obligation to pay you your annual base salary or annual consulting fee, as the

case may be, for the remainder of the Term pursuant to Paragraph 2 of this

agreement.

10.  Indemnification;

Successors and Assigns. 

During the Employment Period and so long as you continue to be a director

of the Company, you shall be an “Indemnified Person” within the meaning of the

Agreement of Limited Partnership of the Partnership as in effect on the

Effective Date.  In your capacity as a

director, you shall be covered by the Partnership’s directors’ and officers’

liability policy.  During the Employment

Period, you shall continue to be covered by any directors’ and officers’

liability policy maintained by any of the Funds so long as you continue to be

an officer or director of that Fund.

The foregoing indemnity shall not apply to claims by

the Company against you that arise under the terms of this agreement and

nothing herein shall require indemnification for any conduct occurring after

the Term.

This agreement shall be binding upon and inure to

the benefit of the parties and their respective successors, heirs (in your

case) and assigns.  Any successor of the

Company or the Partnership shall assume the obligations of the Company or the

Partnership, as the case may be, under this agreement and perform any duties

and responsibilities in the same manner and to the same extent that the Company

or the Partnership would be required to perform if no such succession had taken

place.

 

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11.  Entire

Agreement; Dispute Resolution; Amendments; Governing Law.  This agreement contains the entire

understanding with respect to the subject matter hereof, including the terms

and conditions of your continued employment with the Company and the

Partnership and supersedes any and all prior agreements and understandings,

whether written or oral, between you, the Company, the Partnership or any

affiliate thereof, with respect to the subject matter hereof, which shall

include any such agreements, programs, plans or policies referred to herein,

and in no event shall it supersede any Company or Partnership agreement,

program or plan (including those of any predecessor) regarding your right to

receive benefits, including but not limited to any deferred compensation and

retirement benefits or the Share Purchase Agreement dated as of May 2, 2001

between the Company and a newly formed company controlled by you.  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, in accordance with the Commercial

Arbitration Rules of the American Arbitration Association.

12.  Status as

Independent Contractor; Withholding.  The parties hereby agree that during the Consulting Period, you

shall be an independent contractor with respect to the Partnership, and shall

not be an agent or an employee of the Partnership.  The payment of any amount hereunder shall be subject to such

withholding taxes or requirements, if any, as may apply from time to time to

independent contractors.  During the

Consulting Period, you shall be responsible for paying all applicable taxes

arising under any payments hereunder.

This agreement may not be altered, modified or

amended except by written instrument signed by you, the Company and the

Partnership.  This agreement shall be

governed by New York law, without reference to principles of conflicts of law.

Sincerely,

 

	

  ALLIANCE CAPITAL MANAGEMENT L.P.

  
	

  By:

  	

   ALLIANCE CAPITAL MANAGEMENT CORPORATION, its General Partner

  
	

   

  	

   

  
	

  By:

  	

  /s/ Bruce W. Calvert

  
	

   

  	

  Bruce W. Calvert

  
	

   

  	

  Chief Executive Officer

  

 

	

  AGREED TO

  AND ACCEPTED BY

  
	

  /s/ Dave H. Williams

  
	

  Dave H. Williams

  
	

   

  
	

  April 30, 2001

  
	

  Date

  

 

5Section 1

April 30, 2001

 

Reba W. Williams

Alliance Capital

Management Corporation

1345 Avenue of the Americas

New York, NY 10105

 

Dear Reba,

 

This letter sets forth the

terms of your agreement with Alliance Capital Management Corporation (the

“Company”) and Alliance Capital Management L.P. (the “Partnership”) relating to

your future role and responsibilities.

 

1.  Resignation. 

Effective as of May 1, 2001 (“Effective Date”), you shall resign as a

member of the Board of Directors (the “Board”) of the Company and as an

employee of the Partnership.

 

2.  Position/Duties.  For

the period commencing on the Effective Date through December 31, 2003 (the

“Term”), you agree to serve as a consultant to the Partnership to advise on the

phasing-in of a photo and art collection, which shall gradually replace the

prints from your collection that are currently hanging in the offices of the

Partnership and its subsidiaries. 

During the Term, you shall also continue to serve on the boards of directors

of The India Liberalisation Fund, The Spain Fund, The Austria Fund and The

Southern Africa Fund (collectively, the “Funds”), subject in all cases to the

election by the boards of directors and shareholders of the Funds as necessary.

 

3.  Compensation/Benefits/Expenses. Commencing on the Effective

Date, the Partnership shall pay to you a guaranteed supplemental retirement

benefit in the amount of $180,000 per year for your life.  For your services to the Funds, you shall be

compensated at one-half the director’s fee payable to non-affiliated directors

of the Funds.  In addition, during the

Term, to the extent that you are requested by the Partnership to meet with

clients and you agree to do so, then the Partnership shall compensate you at a

rate of $100 per hour and reimburse you for your reasonable expenses in

accordance with the Partnership’s policies and procedures.

 

During the Term, any travel

by you in connection with the performance of your duties hereunder or the

business of the Partnership or the Funds shall be on the same basis and manner

as travel by current members of the Executive Committee.  In addition, during the Term, the

Partnership or the Funds, as the case may be, shall reimburse you for all

reasonable business–related expenses that you incur in attending board

meetings in accordance with the Partnership’s or the Fund’s policies and

procedures.

 

1

As of the Effective Date,

your participation in and contributions to all welfare, non-qualified and

qualified plans of the Partnership and its affiliates shall cease.  Your rights to a distribution, rollover,

form of payment or deferral regarding your account balances shall be determined

in accordance with terms and conditions of the respective plans.  Notwithstanding the foregoing, if for any

reason you cease to receive spousal dental and medical coverage under benefits

provided to your husband by the Partnership, the Partnership shall provide you

with comparable dental and medical benefits for life.

 

4.  Office and Support Staff. 

During the Term, at the Partnership’s expense, you shall be entitled to

use your current office, conference room and print storage area.  During the Term, your current support staff

(which in your case includes Ms. Julie A. Perez, Executive Secretary, Mr. Robert

Siciliano, Executive Secretary and Art Registrar and Mr. Steve Diehl, art

installer (part-time employee)) (collectively, “Administrative Staff”) and such

additional part-time or temporary secretarial services as required in your

reasonable judgment and as approved by the Executive Committee, shall assist

you in the performance of your duties; provided, however, Mr. Siciliano and Mr.

Diehl’s employment may be terminated by the Partnership upon the Partnership’s

complete return to you at a location in New York City of your print collection

currently housed at the Partnership’s New York City offices.

 

During the Term, should any

one of the Administrative Staff resign or should their employment otherwise be

terminated (and in the case of Mr. Siciliano or Mr. Diehl, prior to the

Partnership’s complete return to you of your print collection), you shall be

entitled to hire a suitable replacement or replacements at comparable levels of

compensation and benefits in accordance with the Partnership’s compensation and

benefits policies for Senior Executive Secretaries and Administrative

Assistants in effect at such time.

 

5.  Use of Facilities. 

During the Term, in addition to hosting events in connection with your

duties hereunder, you and your husband shall be entitled to sponsor events at

the Company’s or the Partnership’s facilities for your non-profit activities to

the extent that such facilities are available and such use does not conflict

with a Company or Partnership event or activity.  The Partnership shall cover the costs, including refreshments and

staffing, of such events that you and your husband sponsor, subject to a

limitation in the aggregate amount of $100,000 per year.

 

2

6.  Nondisparagement. 

From the Effective Date through May 1, 2006, you shall not make any

statement, written or oral, that would disparage the Partnership and its

affiliates or the personal or professional reputation of any of the present or

former directors or senior executive officers of the Partnership and its

affiliates.  From the Effective Date

through May 1, 2006, the Partnership agrees that it shall not make, and it

shall cause each of its senior executive officers and directors and each senior

executive officer and director of its affiliates not to make any communication,

whether written or oral, that would disparage you or your professional or

personal reputation.

 

Notwithstanding the

foregoing, nothing in this Paragraph 8 shall prevent any person from (a)

responding publicly to incorrect, disparaging or derogatory public statements

to the extent reasonably necessary to correct or refute such public statements

or (b) making any truthful statement to the extent (x) necessary to enforce

this agreement or (y) comply with legal process required by applicable law or

by any court, arbitrator or administrative or legislative body (including any

committee thereof) with apparent jurisdiction to order such person to disclose

or make accessible such information.

 

You acknowledge that the

provisions of this Paragraph are reasonable and necessary for the protection of

the Partnership and its affiliates and that the Partnership and its affiliates

will be irrevocably damaged if such provisions are not specifically enforced.  Accordingly, you agree that a breach of any

of the provisions under this Paragraph will be deemed to be a material breach

of this agreement and will entitle the Partnership to terminate this agreement

and all further obligations it may have hereunder.

 

7.  Indemnification.  The

Partnership confirms that as a director of the Company, you are an “Indemnified

Person” until the Effective Date within the meaning of the Agreement of Limited

Partnership of the Partnership.

 

During the Term, the

Partnership agrees to indemnify you and hold you and your respective heirs and

representatives harmless against any and all damages, costs, liabilities,

losses and expenses (including reasonable attorneys’ fees) as a result of any

claim or proceeding, or threatened claim or proceeding, against you that arises

out of the performance of your services hereunder as a consultant to the

Partnership and as a director of the Funds; provided that any such claim or proceeding

is not attributable to any recklessness, deliberate misconduct or gross

negligence on your part.  During the

Term, you shall also be covered by any directors’ and officers’ liability

policy maintained by any of the Funds so long as you continue to be a director

of that Fund.

 

The foregoing indemnity

shall not apply to claims by the Company against you that arise under the terms

of this agreement and nothing herein shall require indemnification for any

conduct occurring after the Term.

 

3

8.  Entire Agreement; Dispute Resolution; Amendments; Governing Law.  Except as otherwise provided in the

agreement with your husband dated the same date as this agreement, this

agreement contains the entire understanding with respect to the subject matter

hereof, including the terms and conditions of your continued service with the

Company and the Partnership, and supersedes any and all prior agreements and

understandings, whether written or oral, between you, the Company, the

Partnership or any affiliate thereof, with respect to the subject matter

hereof.  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, in accordance with the

Commercial Arbitration Rules of the American Arbitration Association.

 

9.  Status as Independent Contractor; Withholding.  The parties agree that during the Term, you

shall be an independent contractor with respect to the Partnership, and shall

not be an agent or an employee of the Partnership.  The payment of any amount hereunder shall be subject to such

withholding taxes or requirements, if any, as may apply from time to time to

independent contractors.  You shall be

responsible for paying all applicable taxes arising under any payments hereunder.

 

4

This agreement may not be

altered, modified or amended except by written instrument signed by you, the

Company and the Partnership.  This

agreement shall be governed by New York law, without reference to principles of

conflicts of law.

 

Sincerely,

 

ALLIANCE CAPITAL MANAGEMENT L.P.

 

 

 

	

  By:

  	

  ALLIANCE CAPITAL

  MANAGEMENT

  
	

   

  	

  CORPORATION, its General

  Partner

  
	

   

  	

   

  
	

  By:

  	

  /s/ Bruce W. Calvert

  
	

   

  	

  Bruce W. Calvert

  
	

   

  	

  Chief Executive Officer

  

 

 

AGREED TO AND ACCEPTED BY

 

 

	

  /s/ Reba W. Williams

  
	

  Reba W. Williams

  
	

   

  
	

  April 30, 2001

  
	

  Date

  

 

 

5

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