EMPLOYMENT AGREEMENT
THIS AGREEMENT, dated as of this 9th day of February, 1998, by and
between GETTY IMAGES, INC., a Delaware corporation (the "COMPANY"), whose
principal executive offices are located at 000 Xxxxx Xxxxxxxx Xxxxxx, Xxxxx
0000, Xxxxxxx, Xxxxxxxx 00000, and XXXXXXXX X. XXXXX, an individual residing at
00 Xxxxxxxx Xxxx, Xxxxxx XX0 0XX Xxxxxxx (the "EXECUTIVE").
W I T N E S S E T H:
WHEREAS, the Executive is presently serving as the Chief Executive
Officer of Getty Communications, plc ("GETTY"), the predecessor of the Company;
and
WHEREAS, Getty is a party to a merger agreement dated as of September
15, 1997 (the "MERGER AGREEMENT"), pursuant to which PhotoDisc, Inc. shall merge
into a merger subsidiary of the Company; and
WHEREAS, in connection with his performance of services in the United
States and elsewhere outside of the United Kingdom, the Company seeks to employ
the Executive and the Executive seeks to be employed by the Company; and
WHEREAS, both parties desire that the terms and conditions of the
Executive's employment with the Company be governed by the terms and conditions
hereinafter set forth.
NOW, THEREFORE, in consideration of the promises and the mutual
covenants herein contained, the parties hereto hereby agree as follows:
1. EMPLOYMENT AND DUTIES.
(a) GENERAL. The Company hereby employs the Executive, effective as
of the closing of the transactions contemplated by the Merger Agreement (the
"EFFECTIVE DATE"), and the Executive's period of continuous employment for
statutory purposes began on 14 March, 1995, and the Executive agrees upon the
terms and conditions herein set forth to serve, effective as of the Effective
Date, as Sole Group Chief Executive. In such capacity, the Executive shall
report directly and only to the Executive Committee, which in turn reports
directly to the Board of Directors of the Company (the "BOARD"). The Executive's
principal place of business shall be 000 Xxxxxx Xxxxxx, Xxxxxx XX0 OAG England,
and this Agreement shall only be in respect of the Executive's services to be
performed outside the United Kingdom.
(b) SERVICES AND DUTIES. For so long as the Executive is employed
hereunder, and except as otherwise expressly provided in Section 1(c) below, the
Executive
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shall devote his full business time to the performance of his duties
hereunder; shall faithfully serve the Company; shall in all respects conform
to and comply with the lawful and good faith directions and instructions
given to him by the Executive Committee and the Board as the same are
consistent with his status and the term hereof; and shall use his best
efforts to promote and serve the interests of the Company. Specifically, the
Executive shall be solely responsible for the day-to-day operational
management of the Company, its subsidiaries and affiliates (hereinafter,
collectively the "GROUP"), provision of operational direction to the Senior
Management Team ("SMT") and oversight of corporate operations, sales,
marketing and finance, management of the SMT, and professional development of
all direct reports. In addition, the Executive shall share equal duties and
authority with the Co-Chairmen for the financial performance of the Group,
the management of the Company's shareholders, developing strategic alliances
and partnerships and maximizing their commercial benefits, communications to
both internal and external audiences and external relationships with
business, industry and academic communities, and strategic leadership. All
employees of the Group (other than the Co-Chairmen) shall report, either
directly or indirectly, to the Executive.
(c) NO OTHER EMPLOYMENT. Except as provided below, for so long as
the Executive is employed by the Company, he shall not, directly or
indirectly, render services to any other person or organization for which he
receives compensation without the prior approval of the Board. No such
approval will be required if the Executive seeks to perform inconsequential
services without direct compensation therefor in connection with the
management of personal investments or in connection with the performance of
charitable and civic activities, provided that such activities do not
contravene the provisions of Section 6 hereof. In addition, the Company
expressly agrees that the Executive may continue to act as a non-executive
director of the Conservation Corporation Africa Limited and of Getty
Investments LLC. The Company, however, recognizes that the Executive shall
be required to provide services for approximately 40 percent of his working
time under an Employment Agreement entered into between Getty and the
Executive, dated as of the date hereof, which agreement relates to the
business and affairs that the Executive performs in the United Kingdom.
(d) BOARD MEMBERSHIP. The Executive shall be a member of the
Board and of the Executive Committee. In addition, the Executive shall be
entitled to attend the meetings of all other committees of the Board, such as
the Audit Committee and the Compensation Committee, and shall be a member of
any strategy committee of the Board. After his initial term as director, the
Company shall nominate the Executive for reelection to the Board and shall
use all reasonable efforts to cause the Executive to be elected to such term.
(e) PAYMENT FOR SERVICES TO BE PERFORMED; OBLIGATIONS.
Compensation to be paid under this Agreement shall be made with regard only
to the Executive's services to be provided to the Group outside the United
Kingdom. Any payments made with respect to services to be provided by the
Executive in the United Kingdom shall be made under the
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Employment Agreement with Getty regarding the provision of the Executive's
services in the United Kingdom.
2. TERM OF EMPLOYMENT. The term of the Executive's employment under
this Agreement (the "TERM") shall commence on the Effective Date and continue
until the second anniversary date of the Effective Date. Thereafter, the Term
shall continue until it is terminated by either party giving the other at least
twelve months' written notice of termination of the Term, with no such notice to
be given so as to expire before the third anniversary of the Effective Date.
3. COMPENSATION AND OTHER BENEFITS. Subject to the provisions of
this Agreement, the Company shall pay and provide the following compensation and
other benefits to the Executive during the Term as compensation for all services
rendered hereunder:
(a) SALARY. The Company shall pay to the Executive an annual salary
(the "SALARY") at the initial rate of USD $195,000 (retroactive to February 1,
1998), payable to the Executive in accordance with the normal payroll practices
of the Company for its executive officers as are in effect from time to time.
The amount of the Executive's Salary shall be reviewed annually by the Board on
or about April 1 of each year during the Term beginning in the 1999 calendar
year and may be increased, but not decreased below such amount, on the basis of
such review and then-current market practices.
(b) ANNUAL BONUS. During the Term, the Executive shall be eligible
for each calendar year that begins within the Term to participate in an annual
incentive bonus program established by the Company in accordance with the
policies of the Group and subject to such terms and conditions as may be
approved annually by the Compensation Committee of the Board (the "COMPENSATION
COMMITTEE"). Under the terms of the annual incentive bonus program, the
Executive will be afforded the opportunity to earn up to 60% of his Salary in
effect for the applicable calendar year if the Company achieves the performance
targets established by the Compensation Committee for that year, to be paid on a
pro-rata basis in the event that the Executive is employed for less than twelve
months of any calendar year within the Term (for purposes of determining the
1998 Bonus, the Executive shall be deemed to have commenced employment as of
January 1, 1998).
(c) STOCK OPTIONS. Effective as of the Closing Date (as defined in
the Merger Agreement), the Company shall grant the Executive an option (the
"DEAL OPTION") to purchase 37,500 shares of the common stock of the Parent
pursuant to the terms of the Parent's 1998 Stock Incentive Plan (the "OPTION
PLAN"). The per share exercise price of the Deal Option shall equal the fair
market value of a share of Common Stock on the Closing Date, as determined in
accordance with the terms of the Option Plan. The Deal Option shall vest and
become exercisable in full on February 1, 1999. Also effective as of the
Effective Date, the Company shall grant the Executive an option (the "OPTION")
to purchase 300,000 shares of the common stock of the Parent pursuant to the
terms of the Option Plan. The per share exercise
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price of the Option shall equal the fair market value of a share of Common
Stock on the Closing Date, as determined in accordance with the terms of the
Option Plan. The Option shall vest and become exercisable as to 25% on
February 1, 1999; the remainder of the Option shall vest ratably on the first
day of each month over the following three years. Both the Deal Option and
the Option shall be subject to the terms of the Option Plan and to such other
terms and conditions as may be specified by the Compensation Committee in the
form of a standard option agreement between the Company and the Executive.
In the event that the Executive ceases to be an employee of the Company for
any reason other than (i) if he is terminated for "Cause", "Disability" or on
account of his death, or (ii) if he resigns without "Good Reason" (as each
such term is defined below), the vesting of both the Deal Option and the
Option shall accelerate and both the Deal Option and the Option shall become
immediately exercisable and the Executive shall be entitled to retain such
options, for the remainder of their respective terms, as if he had remained
an employee of the Company. In the event that the Executive ceases to be an
employee of the Company because he is terminated for Cause or resigns without
Good Reason, the Executive shall be entitled to retain the then-vested
portion of such options as if he had remained an employee of the Company, but
the unvested portion of such options shall lapse. In the event of the
Executive's death or Disability (as defined below), the vesting under both
the Deal Option and the Option shall accelerate and all options thereunder
shall become immediately exercisable and shall remain outstanding for a
period of twelve (12) months.
(d) PENSION SCHEME AND LIFE INSURANCE. During the Term, the Company
shall pay, in addition to the amounts payable under Sections 3(a) and 3(b)
above, an amount equal to 20% of his Salary through equal monthly contributions
in arrears into a personal pension scheme for the benefit of the Executive, or,
at the Executive's sole discretion, the Company shall pay such amount to him as
additional compensation. In addition, during the Term, the Company shall
maintain a life insurance policy on the life of the Executive for the benefit of
the Executive's estate providing a benefit equal to the greater of (i) $750,000
and (ii) four times the Executive's Salary (and maximum Bonus).
(e) EXPENSES. The Company shall pay or reimburse the Executive for
all reasonable out-of-pocket expenses incurred by the Executive in connection
with his employment hereunder and expressly agrees that it will reimburse the
Executive for his business class airfare on international flights which are over
five hours in duration taken in connection with Company business. Such expenses
shall be paid upon the periodic submission of invoices and shall be paid
reasonably promptly after the date of such invoice. The reimbursement of
expenses under this Section 3(e) shall be subject to the Executive's providing
the Company with such documentation of the expenses as the Company may from time
to time reasonably request. The Company also agrees that, in the event that the
Executive is required to travel abroad in connection with the performance of his
duties hereunder for a period in excess of two weeks, the Company will reimburse
the Executive for the airfare, hotel and other transportation expenses only of
his spouse and minor children so that they may accompany him on such trip.
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(f) LONG-TERM INCENTIVE PROGRAM. During the Term, the Executive
shall participate in all long-term incentive plans and programs of the Group
that are applicable to its senior officers in accordance with their terms and in
a manner consistent with his position with the Company.
(g) HOLIDAYS. In addition to the usual public and bank holidays, the
Executive shall be entitled to twenty days' paid vacation annually, which shall
be taken at such times as are approved by the Board.
4. TERMINATION OF EMPLOYMENT. Subject to the notice and other
provisions of this Section 4, as well as Section 5.13 of the Bylaws of the
Company, the Company shall have the right to terminate the Executive's
employment hereunder, and he shall have the right to resign, at any time for any
reason or for no stated reason.
(a) TERMINATION FOR CAUSE; RESIGNATION WITHOUT GOOD REASON. (i) If,
prior to the expiration of the Term, the Executive's employment is terminated by
the Company for Cause or if the Executive resigns from his employment hereunder
other than for Good Reason, he shall be entitled to payment of the pro rata
portion of his Salary, accrued Bonus and supplemental pension contributions as
described in Section 3(d), through and including the date of termination or
resignation as well as any unreimbursed expenses. Except to the extent required
by the terms of any applicable compensation or benefit plan or program or as
otherwise required by applicable law, the Executive shall have no rights under
this Agreement or otherwise to receive any other compensation or to participate
in any other plan, program or arrangement after such termination or resignation
of employment with respect to the year of such termination or resignation and
later years.
(ii) Termination for "CAUSE" shall mean termination of the Executive's
employment with the Company because of (A) willful or persistently repeated
material non-performance of the Executive's duties to the Company (other than by
reason of the incapacity of the Executive due to physical or mental illness)
after notice by the Board of such failure and the Executive's non-performance
and continued, willful or persistently repeated material non-performance after
such notice, (B) the indictment of the Executive for a felony offense, (C) the
commission by the Executive of fraud against the Group or any willful misconduct
that brings the reputation of the Group into serious disrepute or causes the
Executive to cease to be able to perform his duties, (D) any other material
breach by the Executive of any material term of this Agreement, or (E) the
Executive is adjudged bankrupt or makes any arrangement or composition with his
creditors or has an interim order made against him pursuant to Section 252 of
the Insolvency Xxx 0000.
(iii) Termination of the Executive's employment for Cause shall be
communicated by delivery to the Executive of a written notice from the Company
stating that the Executive has been terminated for Cause, specifying the
particulars thereof and the effective date of such termination. The date of a
resignation by the Executive without Good
6
Reason shall be the date specified in a written notice of resignation from
the Executive to the Company. The Executive shall provide at least 90 days'
advance written notice of resignation without Good Reason.
(b) INVOLUNTARY TERMINATION. (i) If, prior to the expiration of the
Term, the Company terminates the Executive's employment for any reason other
than Disability or Cause or Executive resigns from his employment hereunder for
Good Reason (collectively hereinafter referred to as an "INVOLUNTARY
TERMINATION"), the Company shall pay to the Executive his Salary and bonus
accrued up to and including the date of such Involuntary Termination, as well as
any unreimbursed expenses. In addition, the Company shall pay to the Executive
as severance (the "SEVERANCE PAYMENTS") within 30 days after the date of
termination a lump sum payment in an amount equal to the sum of his Salary at
the rate in effect immediately prior to such Involuntary Termination, plus his
maximum Bonus as described in Section 3(b) and supplemental pension
contributions as described in Section 3(d), in each case, for the remainder of
the Term. Anything in this Agreement to the contrary notwithstanding, no
amounts shall be payable under this Section 4(b) if the Executive's employment
with the Company ends at the expiration of the Term in accordance with
Section 2.
(ii) Resignation for "GOOD REASON" shall mean resignation by Executive
because of (A) an adverse and material change in the Executive's duties, titles
or reporting responsibilities, (B) a material breach by the Company of any term
of the Agreement, (C) a reduction in the Executive's Salary or bonus opportunity
or the failure of the Company to pay the Executive any material amount of
compensation when due, (D) failure by the Company or the Parent to nominate the
Executive for reelection to the Board during the Term, (E) the failure of the
Executive to be reelected to the Board during the Term, (F) the Company appoints
a President without the Executive's prior written approval, or (G) a relocation
of the Executive's principal place of business without his prior written
consent. The Company shall have 30 business days from the date of receipt of
such notice to effect a cure of the material breach described therein and, upon
cure thereof by the Company to the reasonable satisfaction of the Executive,
such material breach shall no longer constitute Good Reason for purposes of this
Agreement.
(iii) The date of termination of employment without Cause shall be
the date specified in a written notice of termination to the Executive. The
date of resignation for Good Reason shall be the date specified in a written
notice of resignation from the Executive to the Company; PROVIDED, HOWEVER, that
no such written notice shall be effective unless the cure period specified in
Section 4(b)(ii) above has expired without the Company having corrected, to the
reasonable satisfaction of the Executive, the event or events subject to cure.
(c) TERMINATION FOLLOWING A CHANGE IN CONTROL. In the event of a
Change in Control (defined as it is for purposes of the Option Plan), the
Executive shall have the right to resign his employment with the Company and
will be entitled to receive within 30 days a lump sum payment in an amount equal
to the Executive's Salary, at the rate in effect immediately
7
prior to such Involuntary Termination, plus his maximum Bonus as described in
Section 3(b) and supplemental pension contributions as described in Section
3(d), in each case, for the remainder of the Term.
(d) TERMINATION DUE TO DISABILITY. In the event of the Executive's
Disability (as hereinafter defined), the Company shall be entitled to terminate
his employment upon providing the Executive with six months' prior written
notice. If the Company terminates the Executive's employment due to Disability,
the Executive shall be entitled to receive, for the remainder of the Term, his
Salary at the rate in effect immediately prior to the Disability, plus his
maximum Bonus as described in Section 3(b) and supplemental pension
contributions as described in Section 3(d), less any amounts paid to the
Executive under any disability plan of the Company. As used in this Section
4(d), the term "DISABILITY" shall mean a physical or mental incapacity that
substantially prevents the Executive from performing his duties hereunder and
that has continued for at least six of the last twelve months and that can
reasonably be expected to continue indefinitely. Any dispute as to whether or
not the Executive is disabled within the meaning of the preceding sentence shall
be resolved by a physician reasonably satisfactory to the Executive and the
Company, and the determination of such physician shall be final and binding upon
both the Executive and the Company.
(e) DEATH. In the event of the Executive's death, the Executive's
Beneficiary shall be entitled to receive within 30 days a lump sum payment in an
amount equal to the Executive's Salary, at the rate in effect immediately prior
to his death, plus his maximum Bonus as described in Section 3(b) and
supplemental pension contributions as described in Section 3(d), in each case
for the remainder of the Term, less any death benefits which are provided to the
Executive's Beneficiary under the terms of any plan, program or arrangement for
the benefit of the Executive at the time of death.
(f) BENEFICIARY. For purposes of this Agreement, "BENEFICIARY" shall
mean the person or persons designated in writing by the Executive to receive
benefits under a plan, program or arrangement or to receive the balance of the
Severance Payments, if any, in the event of the Executive's death, or, if no
such person or persons are designated by the Executive, the Executive's estate.
No Beneficiary designation shall be effective unless it is in writing and
received by the Company prior to the date of the Executive's death.
5. LIMITATION ON PAYMENTS.
Notwithstanding anything herein to the contrary, if any of the
payments made hereunder would constitute a "PARACHUTE PAYMENT" (as defined in
Section 280G(b)(2) of the Internal Revenue Code of 1986, as amended (the
"Code")), and the net after-tax amount of the parachute payment is less than the
net after-tax amount if the aggregate payments to be made to the Employee were
three times his "BASE AMOUNT" (as defined in Section 280G(b)(3) of the Code),
less $1.00, then the aggregate of the amounts constituting the parachute payment
shall be reduced to an amount that will equal three times the base amount, less
$1.00. The
8
determinations to be made with respect to this Section 5 shall be made by an
independent accounting firm of national standing (other than the Company's
regular auditors). The accounting firm shall be paid by the Company for its
services performed hereunder.
6. PROTECTION OF THE COMPANY'S INTERESTS.
(a) NO COMPETING EMPLOYMENT. For so long as the Executive is
employed by the Company and, in circumstances where the Executive receives a
payment pursuant to Section 4(b), 4(c) or 4(d) or his employment is terminated
for Cause, but in no other circumstances, and continuing for the remainder of
the Term (such period being referred to hereinafter as the "RESTRICTED PERIOD"),
the Executive shall not, without the prior written consent of the Board,
directly or indirectly, own an interest in, manage, operate, join, control, lend
money or render financial or other assistance to or participate in or be
connected with, as an officer, employee, partner, stockholder, consultant or
otherwise, any individual, partnership, firm, corporation or other business
organization or entity that competes with the Group by providing any goods or
services provided or under development by the Group at the effective date of the
Executive's termination of employment under this Agreement; PROVIDED, HOWEVER,
that this Section 6(a) shall not proscribe the Executive's ownership, either
directly or indirectly, of either less than five percent of any class of
securities which are listed on a national securities exchange or quoted on the
automated quotation system of the National Association of Securities Dealers,
Inc. or any limited partnership investment over which the Executive has no
control.
(b) NO INTERFERENCE. During the Restricted Period, in circumstances
in circumstances where the Executive receives a payment pursuant to
Section 4(b), 4(c) or 4(d) or his employment is terminated for Cause, and in no
other circumstances, the Executive shall not, whether for his own account or for
the account of any other individual, partnership, firm, corporation or other
business organization (other than the Company), intentionally endeavor to entice
away from the Group, or otherwise interfere with the relationship of the Group
with, any senior person who is employed by or otherwise engaged to perform
services for the Group or any senior person or entity who is, or was within the
then most recent twelve-month period, a customer, client or supplier of the
Group.
(c) SECRECY. The Executive recognizes that the services to be
performed by him hereunder are special, unique and extraordinary in that, by
reason of his employment hereunder, he may acquire confidential information and
trade secrets concerning the operation of the Group, the use or disclosure of
which could cause the Group substantial losses and damages which could not be
readily calculated and for which no remedy at law would be adequate.
Accordingly, the Executive covenants and agrees with the Company that he will
not at any time, except in performance of the Executive's obligations to the
Company hereunder or with the prior written consent of the Board, directly or
indirectly disclose to any person any secret or confidential information that he
may learn or has learned by reason of his association with the Group. The term
"CONFIDENTIAL INFORMATION" means any information not previously
9
disclosed to the public or to the trade by the Group with respect to the
Group's, products, facilities and methods, trade secrets and other
intellectual property, systems, procedures, manuals, confidential reports,
product price lists, customer lists, financial information (including the
revenues, costs or profits associated with any of the Group's products),
business plans, prospects or opportunities.
(d) EXCLUSIVE PROPERTY. The Executive confirms that all confidential
information is and shall remain the exclusive property of the Group. All
business records, papers and documents kept or made by the Executive relating to
the business of the Group shall be and remain the property of the Group. Upon
the termination of his employment with the Company or upon the request of the
Company at any time, the Executive shall promptly deliver to the Company, and
shall not without the consent of the Board retain copies of, any written
materials not previously made available to the public, or records and documents
made by the Executive or coming into his possession concerning the business or
affairs of the Group; PROVIDED, HOWEVER, that subsequent to any such
termination, the Company shall provide the Executive with copies (the cost of
which shall be borne by the Executive) of any documents which are requested by
the Executive and which the Executive has determined in good faith are
(i) required to establish a defense to a claim that the Executive has not
complied with his duties hereunder or (ii) necessary to the Executive in order
to comply with applicable law.
(e) ASSIGNMENT OF DEVELOPMENTS. All "DEVELOPMENTS" (as defined
below) that were or are at any time made, conceived or suggested by Executive,
whether acting alone or in conjunction with others, during Executive's
employment with the Group shall be the sole and absolute property of the Group,
free of any reserved or other rights of any kind on the part of Executive.
During Executive's employment and, if such Developments were made, conceived or
suggested by Executive during his employment with the Group, thereafter,
Executive shall promptly make full disclosure of any such Developments to the
Group and, at the Group's cost and expense, do all acts and things (including,
among others, the execution and delivery under oath of patent and copyright
applications and instruments of assignment) deemed by the Group to be necessary
or desirable at any time in order to effect the full assignment to the Group of
Executive's right and title, if any, to such Developments. For purposes of this
Agreement, the term "DEVELOPMENTS" shall mean all data, discoveries, findings,
reports, designs, inventions, improvements, methods, practices, techniques,
developments, programs, concepts, and ideas, whether or not patentable, relating
to the activities of the Group of which Executive is as of the date of this
Agreement aware or of which Executive becomes aware at any time during the Term,
excluding any Development for which no equipment, supplies, facilities or
confidential information of the Group was used and which was developed entirely
on Executive's own time, unless (i) the Development relates directly to the
business of the Group, (ii) the Development relates to actual or demonstrably
anticipated research or development of the Group, or (iii) the Development
results from any work performed by Executive for the Group (the foregoing is
agreed to satisfy the written notice and other requirements of Section 49.44.140
of the Revised Code of Washington).
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(f) INJUNCTIVE RELIEF. Without intending to limit the remedies
available to the Company, the Executive acknowledges that a breach of any of
the covenants contained in this Section 6 may result in material irreparable
injury to the Group for which there is no adequate remedy at law, that it
will not be possible to measure damages for such injuries precisely and that,
in the event of such a breach or threat thereof, the Company shall be
entitled to obtain a temporary restraining order and/or a preliminary or
permanent injunction restraining the Executive from engaging in activities
prohibited by this Section 6 or such other relief as may be required to
specifically enforce any of the covenants in this Section 6. Without
intending to limit the remedies available to the Executive, the Executive
shall be entitled to seek specific performance of the Company's obligations
under this Agreement.
(g) The Executive shall during the continuance of his employment (and
shall procure that his spouse or partner and his minor children shall comply)
with all applicable rules of law, stock exchange regulations and codes of
conduct applicable to employees, officers and directors of the Company and the
Group for the time being in force in relation to dealings in the shares,
debentures and other securities of the Company or any member of the Group or any
unpublished share price sensitive information affecting the securities of any
other company with which the Company has dealings (provided that the Executive
shall be entitled to exercise any options granted to him under any share option
scheme established by the Company or any member of the Group, subject to the
rules of such scheme).
(h) The Executive shall in relation to any dealings in securities of
overseas companies comply with all laws of any foreign state affecting dealings
in the securities of such companies and all regulations of any relevant stock
exchanges on which such dealings take place.
(i) During the continuance of his employment the Executive shall
observe the terms of any policy issued by the Company in relation to payments,
rebates, discounts, gifts, entertainment or other benefits ("Gratuities") from
any third party in respect of any business transacted or proposed to be
transacted (whether or not by him) by or on behalf of the Company or any
Associated Company.
7. GENERAL PROVISIONS.
(a) SOURCE OF PAYMENTS. All payments provided under this Agreement,
other than payments made pursuant to a plan which provides otherwise, shall be
paid in cash from the general funds of the Company, and no special or separate
fund shall be established, and no other segregation of assets made, to assure
payment. The Executive shall have no right, title or interest whatever in or to
any investments which the Company may make to aid the Company in meeting its
obligations hereunder. To the extent that any person acquires a right to
receive payments from the Company hereunder, such right shall be no greater than
the right of an unsecured creditor of the Company; PROVIDED, HOWEVER, that this
provision shall not be deemed to waive or abrogate any preferential or other
rights to payment accruing to the
11
Executive under applicable bankruptcy laws by virtue of the Executive's
status as an employee of the Company.
(b) NO OTHER SEVERANCE BENEFITS. Except as specifically set forth in
this Agreement, and the Employment Agreement with Getty, the Executive covenants
and agrees that he shall not be entitled to any other form of severance benefits
from the Company, including, without limitation, benefits otherwise payable
under any of the Company's regular severance policies, in the event his
employment hereunder ends for any reason and, except with respect to obligations
of the Company expressly provided for herein, the Executive unconditionally
releases the Company and its subsidiaries and affiliates, and their respective
directors, officers, employees and stockholders, or any of them, from any and
all claims, liabilities or obligations under this Agreement or under any
severance or termination arrangements of the Company or any of its subsidiaries
or affiliates for compensation or benefits in connection with his employment or
the termination thereof.
(c) TAX WITHHOLDING. Payments to the Executive of all compensation
contemplated under this Agreement shall be subject to all applicable tax
withholding.
(d) NOTICES. Any notice hereunder by either party to the other shall
be given in writing by personal delivery, or certified mail, return receipt
requested, or (if to the Company) by telex or facsimile, in any case delivered
to the applicable address set forth below:
(i) To the Company: Getty Images, Inc.
000 Xxxxx Xxxxxxxx Xxxxxx
Xxxxx 0000
Xxxxxxx, Xxxxxxxx 00000
With copies to:
Shearman & Sterling
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attn.: Xxxx X. Xxxxxx, III, Esq.
Shearman & Sterling
000 Xxxxxxxxxx Xxxxxx
Xxxxx 0000
Xxx Xxxxxxxxx, XX 00000
Attn.: Xxxxxxxxxxx X. Xxxxxx, Esq.
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Xxxxxxxx Chance
000 Xxxxxxxxxx Xxxxxx
Xxxxxx XX0X 0XX Xxxxxxx
Attn.: Xxxxxxx Xxxxxxxx
(ii) To the Executive: Xxxxxxxx X. Xxxxx
00 Xxxxxxxx Xxxx
Xxxxxx XXX 0XX
or to such other persons or other addresses as either party may specify to
the other in writing.
(e) REPRESENTATION BY THE EXECUTIVE. The Executive represents and
warrants that his entering into this Agreement does not, and that his
performance under this Agreement and consummation of the transactions
contemplated hereby will not, violate the provisions of any agreement or
instrument to which the Executive is a party, or any decree, judgment or order
to which the Executive is subject, and that this Agreement constitutes a valid
and binding obligation of the Executive in accordance with its terms. Breach of
this representation will render all of the Company's obligations under this
Agreement void AB INITIO.
(f) LIMITED WAIVER. The waiver by the Company or the Executive of a
violation of any of the provisions of this Agreement, whether express or
implied, shall not operate or be construed as a waiver of any subsequent
violation of any such provision.
(g) ASSIGNMENT; ASSUMPTION OF AGREEMENT. No right, benefit or
interest hereunder shall be subject to assignment, encumbrance, charge, pledge,
hypothecation or setoff by the Executive in respect of any claim, debt,
obligation or similar process. The Company will require any successor (whether
direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business or assets of the Company to assume expressly
and to agree to perform this Agreement in the same manner and to the same extent
that the Company would be required to perform it if no such succession had taken
place.
(h) AMENDMENT; ACTIONS BY THE COMPANY. This Agreement may not be
amended, modified or canceled except by written agreement of the Executive and
the Company. Any and all determinations, judgments, reviews, verifications,
adjustments, approvals, consents, waivers or other actions of the Company
required or permitted under this Agreement shall be effective only if undertaken
by the Company pursuant to authority granted by a resolution duly adopted by the
Board; PROVIDED, HOWEVER, that by resolution duly adopted in accordance with
this Section 7(h), the Board may delegate its responsibilities hereunder to one
or more of its members other than the Executive.
(i) SEVERABILITY. If any term or provision hereof is determined
to be invalid or unenforceable in a final court or arbitration proceeding,
(i) the remaining terms and provisions hereof shall be unimpaired and (ii)
the invalid or unenforceable term or provision shall be deemed replaced by a
term or provision
13
that is valid and enforceable and that comes closest to
expressing the intention of the invalid or unenforceable term or provision.
(j) GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the laws of England and the parties to this
Agreement hereby submit to the exclusive jurisdiction of the English laws
(determined without regard to the choice of law provisions thereof).
(k) ENTIRE AGREEMENT. This Agreement sets forth the entire
agreement and understanding of the parties hereto with respect to the matters
covered hereby and supersedes all prior agreements and understandings of the
parties, other than the Services Agreements, with respect to the subject
matter hereof.
(l) HEADINGS. The headings and captions of the sections of this
Agreement are included solely for convenience of reference and shall not
control the meaning or interpretation of any provisions of this Agreement.
(m) COUNTERPARTS. This Agreement may be executed by the parties
hereto in counterparts, each of which shall be deemed an original, but both
such counterparts shall together constitute one and the same document.
(n) DISCIPLINARY AND GRIEVANCE PROCEDURES. Nor statutory purposes
there is no formal disciplinary procedure in relation to the Executive's
employment. The Executive shall be expected to maintain the highest standards
of integrity and behaviour. If the Executive has any grievance in relation to
his employment or is not satisfied with any disciplinary decision taken in
relation to him he may apply in writing within 14 days of that decision to the
Board whose decision shall be final. The foregoing shall not be construed,
however, to limit the Executive's remedies at law or otherwise. If the
Executive has any grievance in relation to his employment he may raise it in
writing with the Board whose decision shall be final.
14
IN WITNESS WHEREOF, the parties have executed this Agreement effective
as of the day and year first written above.
GETTY IMAGES, INC.
By:
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Name:
Title:
EXECUTIVE
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Xxxxxxxx X. Xxxxx
