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Exhibit 10.17
SELECT EXECUTIVE RETIREMENT INCOME PLAN
This agreement made January 1, 1988, by and between Young & Rubicam Inc., a
company organized under the laws of the State of New York (herein the Company)
and Xxxx Xxxxxxx (the Employee).
In consideration of the agreement hereinafter contained, the parties agree as
follows:
1. The Employee agrees to serve the Company in such capacity as the Board
of Directors of the Company may designate from time to time during a
period commencing on the date hereof and continuing until terminated by
retirement or by either party on at least 60 days' prior written notice.
Nothing contained herein shall be construed as conferring upon the
Employee the right to continue in the employ of the Company as an
executive or in any other capacity.
2. During the term of his employment, the Employee shall devote his full
business time, attention, skill and effort to the performance of his
duties for the Company.
3. During the term of his employment, the Company shall pay the Employee
such salary, other compensation and benefits payable as the Company may
from time to time determine. In addition Employee shall be entitled to
amounts payable pursuant to the Select Executive Retirement Income Plan
("SERIP") as provided below.
4. The benefits to be paid pursuant to SERIP (unless they are forfeited by
the occurrence of any of the events of forfeiture specified in paragraph
5 below) are as follows:
A. If the Employee's full-time employment hereunder is terminated on or
after eight years from the date hereof, the Company shall pay to him
$100,000 per year each year for the rest of his life, as soon as
administratively feasible after January 1st of each year, commencing
either the year following the year his full-time employment ceases or
the January 1st following the date he reaches 60, whichever is the
last to occur (except in the event of death or disability as
described in subparagraphs 4.C. and 4.D. below); however, in no event
will payment commence prior to the January 1st following the date on
which the Employee ceases to be an active full-time employee of the
Company.
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B. The amount payable pursuant to SERIP will vest during the Employee's
employment by the Company according to the attached Schedule A. If the
Employee's employment with the Company ceases, the vesting period
shall terminate as of the date of termination of employment. If the
Employee's employment with the Company ceases for any reason other
than death or disability, the portion which has not become vested
shall be forfeited. If the Employee's employment ceases by reason of
death or disability as set forth below, he shall be deemed to be fully
vested as of the date of death or disability.
C. If the Employee should die before payments pursuant to SERIP commence,
ten annual payments shall be made to the Employee's designated
beneficiary commencing as soon as administratively feasible after the
Company has received notification of death. If the Employee should die
after payments pursuant to SERIP have commenced but before he has
received ten payments, the Company shall continue to pay to the
Employee's designated beneficiary annual payments until the total
number of payments to the Employee and his designated beneficiary
equals ten.
D. The Employee shall be deemed to become disabled for purpose of
subparagraph 4.B. above if the Company shall find, on the basis of
medical evidence satisfactory to the Company, that the Employee is
disabled, mentally or physically, so as to be prevented from
performing the duties he was performing for the Company at the time of
disability and such disability appears to be permanent or of
longstanding duration. If the Employee becomes disabled, annual
payments pursuant to SERIP shall begin as soon as administratively
feasible after a determination of disability has been made.
E. In the event that the Employee leaves the employ of the Company prior
to attaining age 60, whether voluntarily or involuntarily, the amount
pursuant to SERIP which has become vested in accordance with attached
Schedule A will be payable to the Employee in annual installments
commencing as soon as administratively feasible after the January 1st
following the date on which the Employee attains age 60.
5. Notwithstanding anything contained herein to the contrary, no payment of
any then unpaid SERIP installments shall be made and all rights under this
Agreement of the Employee, his designated beneficiary,
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executors, administrators, heirs, or any other person, to receive payments
thereof shall be forfeited if there shall be a breach of the following
conditions:
A. The Employee shall not, during the term of his employment or at any
time prior to the second anniversary of the date of the termination
of his employment with the Company, directly or indirectly, (i)
solicit any of the clients who were or had been served by the Company
or any of its subsidiaries or affiliates at the time of such
termination or during the six months prior thereto, (ii) own,
operate, join, control, engage in, or participate in the ownership,
management, operation or control of, or be a director or an employee
of, or a business consultant to, any business, firm or corporation
which is similar to or competes with the business of the Company or
any of its subsidiaries or affiliates as conducted on the date of
such termination or during the six months prior thereto: provided,
however, that the provisions of this subparagraph shall not apply
to investments by the Employee in shares of stock traded on a
national market which shall have an aggregate market value, at the
time of acquisition, of less than $50,000 and which shall constitute
less than one percent of the outstanding shares of such stock, or
(iii) solicit for purposes of employment any employee of the Company,
its subsidiaries or affiliates, or induce any such employee to
terminate his employment.
B. During the period commencing on the date of the termination of the
employment of the Employee with the Company and ending on the second
anniversary of the date of such termination, the Employee shall
perform such consulting and advisory services for the Company as
shall from time to time be reasonably assigned to him by the Board
of Directors of the Company; provided, however, that such services
shall be rendered at such place or places and at such time or times
as the Employee shall determine, and in no event shall the Company
require the Employee to devote more than three days per month in
performing such services. The Company shall give the Employee
reasonable notice of the times when it will require the Employee's
consulting or advisory services and the Employee will have reasonable
time after receipt of such notice to render such services. The
Company shall reimburse the Employee for reasonable expenses incurred
by the Employee in connection with the rendition of such services in
accordance with the Company's policies.
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6. Nothing contained in this Agreement and no action taken pursuant to the
provisions of this Agreement shall create or be construed to create a trust
or any kind of fiduciary relationship between the Company and the Employee,
his designated beneficiary or any other person.
7. A. The Employee, by acceptance of the benefits of SERIP, covenants and agrees
that anything in SERIP to the contrary notwithstanding, any payments due
to such Employee hereunder shall be subordinate and junior to the extent
and manner hereinafter set forth, to the principal of and premium (if any)
and interest on any and all Senior Indebtedness as defined in subparagraph
7.C. below whether now outstanding or hereafter incurred or assumed:
1. In the event of any insolvency, bankruptcy, receivership, liquidation,
dissolution, reorganization or other similar proceedings, whether
voluntary or involuntary, relating to the Company or to its creditors,
as such, or to its property, then the holders of Senior Indebtedness
shall be entitled to receive payment in full of all principal, premium
(if any) and interest on all Senior Indebtedness before any Employee is
entitled to receive any payment under SERIP, and, accordingly, the
holders of Senior Indebtedness shall be entitled to receive for
application in payment thereof any payment or distribution of any kind
of character, whether in cash or property or securities, which may be
payable or deliverable in any such proceedings in respect of SERIP: and
2. Without in any way limiting the effect of the foregoing provisions,
during the continuance of any default on any Senior Indebtedness, no
payment under SERIP shall be made if (A) notice of such default in
writing or by telegram has been given to the Company by any holder or
holders of any Senior Indebtedness, (B) judicial proceedings shall be
pending in respect of such default or (C) judgment is obtained against
the Company by the holders of the Senior Indebtedness or any one of
them if as a result of such default it shall remain unsatisfied: and
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3. Should any benefit under SERIP be received by the Employee in
violation of the subordination provisions contained in this Paragraph
7, such Employee agrees to hold such benefits in trust and as trustee
for the account of the holders of Senior Indebtedness.
B. The above provisions in regard to subordination are solely for the
purpose of defining the relative rights of the holders of Senior
Indebtedness on the one hand and the Employee on the other hand, and
nothing herein shall impair, as between the Company and the Employee,
the obligation of the Company, which is unconditional and absolute, to
pay to the Employee all amounts due under SERIP in accordance with its
terms.
C. For purposes of this Agreement, Senior Indebtedness shall mean any
liability or obligation to any bank, insurance company or other
institutional lender for money borrowed by the Company or by any of its
Subsidiaries and guaranteed by the Company.
8. The beneficiary referred to in this Agreement may be designated or changed
by the Employee without the consent of any prior beneficiary on a form
provided by the Company and delivered to the Company at any time prior to
death. If no such beneficiary shall survive the Employee, the death benefit
payable under paragraph 4 above shall be payable to the Employee's estate.
9. The right of the Employee or any other person to payment pursuant to SERIP
or other benefits under the Agreement shall not be assigned, transferred,
pledged, or encumbered except by will or by the laws of descent and
distribution or by the Employee's designation of a beneficiary in the
manner provided for in this Agreement.
10. This Agreement shall be binding upon and inure to the benefit of the
Company, its successors and assigns, and the Employee and his heirs,
executors, administrators, and legal representatives and designated
beneficiaries under this Agreement.
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11. This Agreement shall be construed in accordance with and governed by the
laws of the State of New York.
YOUNG & RUBICAM INC.
By: /s/ Xxxxx X. Xxxxxxxxx
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/s/ Xxxx X. Xxxxxxx
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Employee
/s/ illegible
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Secretary
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SCHEDULE A
Annual Payment
Commencing at Age 60
or Upon Retirement
Termination Whichever is Later
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Contract Date -0-
One Year Thereafter -0-
Two Years Thereafter -0-
Three Years Thereafter $25,000
Four Years Thereafter $40,000
Five Years Thereafter $55,000
Six Years Thereafter $70,000
Seven Years Thereafter $85,000
Eight Years Thereafter $100,000
