Document:

July 31, 2001

July 31, 2001

 

Frank Savage

Alliance Capital

Management Corporation

1345 Avenue of the Americas

New York, NY 10105

 

Dear Frank:

 

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 retirement.

 

1. Retirement.  Effective as of July 31, 2001 (“Retirement

Date”), you shall retire as an employee of the Partnership and shall resign as

an officer of the Company and as an officer and director of all divisions and

subsidiaries of the Partnership.

 

You shall continue to serve

on the Board of Directors (“Board”) of the Company, subject to the election by

the Board and the shareholders as necessary. You shall also continue to serve

on the boards of directors of The Nile Growth Company 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. 

For your service to the Company as a director, you shall be paid an

annual retainer equal to that paid to independent directors and fees for

attending meetings of the Board and Committees thereof on the same basis as

independent directors.

 

2.  Payments/Benefits. 

You shall be entitled to any accrued and unpaid compensation in the

amount of $6,153.84 earned through the Retirement Date.  A year-end bonus for the period ending

December 31, 2001 in the amount of Three Hundred Thousand Dollars ($300,000.00)

(less proper federal tax deductions) shall be paid to you at the time the

Partnership pays year-end bonuses to its employees.

 

                On

the Retirement Date, you shall return your current automobile to the

Partnership. Except as otherwise provided herein, as of the Retirement Date,

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

qualified plans of the Partnership and its affiliates shall cease and your

rights to a distribution, rollover, form of payment or deferral regarding your

account balances shall be determined in accordance with the terms and

conditions of the respective plans. 

Until the Retirement Date, the Partnership will continue in effect your

current medical coverage under its group medical plan(s).  As of the Retirement Date,

 

1

 you

will be given the option to continue in effect coverage under the Partnership’s

medical plans under the terms and conditions of the applicable plans at your

expense.

 

3.  Expenses.  The

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

that you incur in attending board meetings in accordance with the Partnership’s

or the Funds’ policies and procedures applicable to independent directors.

 

4.  Office and Support Staff. 

Until December 31, 2001, at the Partnership’s expense, you shall be

entitled to use two small exterior, executive offices at the Partnership’s New

York City office and your current secretary, Ms. Eva Evgenis, shall assist you

in the performance of your duties.

 

5. 

Acknowledgment. You hereby acknowledge that you have

carefully read this Agreement, fully understand and accept all of its

provisions and sign it voluntarily of your own free will. You further

acknowledge that you have been provided a full opportunity to review and

reflect on the terms of this Agreement and to seek the advice of legal counsel

of your choice. You acknowledge that you have been given a period of twenty-one

(21) days to consider this Agreement before signing it. You may revoke this

Agreement within seven (7) days of your signing it.  For such revocation to be effective, written notice must be

received by the Company no later than the close of business on the seventh day

after you sign this Agreement. If you revoke this Agreement it shall be of no

further force and effect.

 

6.  Release.  (a)  In consideration of the foregoing agreements

by the Partnership, you hereby agree to and do fully and completely release,

discharge and waive any and all claims, complaints, causes of action, actions,

suits, debts, sums of money, contracts, controversies, agreements, promises, or

demands of whatever kind, in law or in equity, which you ever had, now have or

which you, your heirs, executors or administrators may have against the

Partnership and its subsidiaries, affiliates, predecessors, successors and

assigns, and each and all of their officers, directors, partners, associates,

agents, shareholders and employees by reason of any event, matter, cause or

thing which has occurred prior to the date of execution of this Agreement (hereinafter

“Claims”). You understand and accept that this Agreement specifically covers,

but is not limited to, any and all Claims which you have or may otherwise have

against the Partnership relating in any way to compensation, or to any other

terms, conditions or circumstances of your employment with the Partnership and

to your termination of such employment as contemplated hereby, whether for

severance or based on statutory or common law claims for employment

discrimination (including any claims under the Age Discrimination in Employment

Act), wrongful discharge, breach of contract or any other theory, whether legal

or equitable. Notwithstanding the foregoing, in no event shall you be deemed by

this paragraph to have released any

 

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rights or claims you may have for payments or

benefits under this Agreement or to seek indemnification with respect to

liability incurred by you in your capacity as an officer or director of the

Company, the Partnership or their affiliated entities.

 

(b)  In exchange for the benefits provided to

them under this Agreement, the Partnership, the Company and their subsidiaries,

divisions, affiliated entities, predecessors, successors and assigns hereby

agree to and do fully and completely release you and your heirs, successors and

assigns from any and all claims, causes of action, suits, demands and/or

controversies of whatever kind, in law or equity, which has occurred prior to

the date of the execution of this Agreement (hereinafter, “Company Claims”)

arising out of your former employment with the Company and the

Partnership.  The Company Claims that

are being released include for example, and without limitation, claims arising

under any federal, state, or common law, statute, regulation, or law of any

other type.  Furthermore, the releasers

herein acknowledge that there are no lawsuits, charges or demands currently

pending based on any claim released in this Section and that they promise never

to file or prosecute a lawsuit complaint or charge based on the claims released

in this Section.  Notwithstanding the

foregoing, the Company, the Partnership and their respective affiliates do not

waive any rights to which they may be entitled (i) to seek to enforce this

Agreement or (ii) pursuant to any Company Claims that are founded upon or

directly related to breach of fiduciary duty and/or willful or intentional

misconduct in your capacity as a director of the Company or the Funds.

 

7.  Indemnification; Successors and Assigns.  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.  The foregoing indemnity shall not apply to claims by the Company

or the Partnership against you that arise under the terms of this Agreement and

nothing herein shall require indemnification for any conduct occurring after

the termination of your service as a director of the Company.

 

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.

 

8.  Entire Agreement. 

Effective as of the Retirement Date, all prior agreements relating to your

employment by the Partnership and your service as an officer, director,

consultant or other independent contractor to the Partnership and

 

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each of its affiliates will terminate and be

no further force or effect and you hereby waive all rights, benefits, claims

and causes of action under those agreements. This Agreement contains the entire

understanding with respect to the subject matter hereof, and supersedes any and

all prior agreements and understandings, whether written or oral, among you,

the Company, the Partnership or any affiliate thereof with respect to the

subject matter hereof.

 

9.  Miscellaneous.  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.

 

10. Counterparts.  This Agreement may be executed in

counterparts, each of which shall be binding on the parties and have the full

legal effect of the original.

 

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/ Frank Savage

  	

   

  
	

  Frank Savage

  	

   

  
	

   

  	

   

  
	

  August 7, 2001

  	

   

  
	

  Date

  	

   

  
				

 

4April 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.

 

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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.

 

3

 

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.

 

4

 

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

  

 

5

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