Document:

Exhibit 10.14

 

PATENT
LICENSE AGREEMENT

 

This
Patent License Agreement (“Agreement”) is made and effective as of the
November 1, 2004 (“Effective Date”) by and between NCR Corporation, a
Maryland corporation, having a principal place of business at 1700 S. Patterson
Blvd., Dayton, Ohio 45479 (hereinafter “NCR”), and VeriFone, Inc., a California
corporation having a principal place of business at 2099 Gateway Place, Suite
600, San Jose, CA 95110-1093, (hereinafter “VeriFone”).

 

RECITALS

 

WHEREAS,
NCR (defined below) is the owner of certain intellectual property described by
the NCR Patents (defined below); and

 

WHEREAS,
VeriFone (defined below) is, and has been, in the business of providing
products and/or services relating to electronic signature capture; and the NCR
Patents relate to methods, apparatus, and systems for providing signature
capture; and

 

WHEREAS,
VeriFone desires to obtain a fee-bearing license under the NCR Patents for
selling Signature Capture Terminals (defined below) to all its customers; and

 

WHEREAS,
NCR desires to grant VeriFone a non-exclusive license to the NCR Patents; and

 

WHEREAS
VeriFone and NCR desire to minimize accountancy effort by agreeing to a fixed
price for each model of Signature Capture Terminal that VeriFone sells or intends
to sell, where the fixed prices will be used as the basis of fee calculations;

 

NOW,
THEREFORE, in consideration of the promises and the mutual covenants
hereinafter contained and other good and valuable consideration, the
sufficiency of which is hereby acknowledged, the parties hereto agree as
follows:

 

Article 1

DEFINITIONS

 

As
used in this Agreement, the following terms shall have the meanings indicated:

 

1.1                                 “Affiliate”
shall mean any corporate entity which, directly or indirectly, through one or more
intermediaries, controls or is controlled by, or is under common control with,
another corporate entity.

 

1.2                                 “Agreed
Selling Price” or “ASP” shall mean: (i) two hundred and ninety (290) U.S.
dollars for each Omni 7000 (or its successor model) Signature Capture Terminal
sold; (ii) four hundred (400) U.S. dollars for each Omni 7100 (or its successor
model) Signature Capture Terminal sold; and (iii) four hundred and twenty five
(425) U.S. dollars for each color display Signature Capture Terminal sold.  The ASP numbers provided in the preceding
sentence shall be effective for

 

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2004
and 2005, but shall be subject to a discount of five (5%) percent each
subsequent year as set forth in Schedule 1, appended hereto and
incorporated herein by reference.

 

1.3                                 “Attorneys’
Fees” shall mean the full and actual costs and expenses of any legal services
actually rendered in connection with the matters involved, calculated on the
basis of the usual fee charged by the attorneys performing such services, and
shall not be limited to “reasonable attorneys’ fees” as defined by any statute
or rule of court.

 

1.4                                 “License
Fee” shall mean a quarterly payment for all Licensed Products sold during that
quarter, where the License Fee is calculated as set out in Schedule 1, net
of any Licensed Products returned for cash refund or credit by a customer.

 

1.5                                 “Licensed
Products” shall mean (i) the Omni 7000 (or its successor model) Signature
Capture Terminal; (ii) the Omni 7100 (or its successor model) Signature Capture
Terminal; and (iii) any color display Signature Capture Terminal, and any
Signature Capture Terminal that is not included in either category (i) or (ii)
above.  Licensed Products are only those
products that are sold in the United States, Germany, France, or the United
Kingdom.

 

1.6                                 (a)
“NCR” shall mean NCR Corporation and any of its subsidiaries, Affiliates and/or
divisions.

 

(b)
“VeriFone” shall mean VeriFone, Inc. and any of its subsidiaries, Affiliates
and/or divisions.

 

1.7                                 “NCR
Patents” shall mean U.S. Patent Number 6,539,363 and its Progeny (defined
below).

 

1.8                                 “Non-Asserted
Patents” shall mean all patents issued to or licensed by NCR (to which NCR has
the right to sublicense without obligating NCR to further payments to the
patent holder) worldwide during the term of this Agreement except for the NCR
Patents.

 

1.9                                 “Progeny”
when describing a patent shall refer to any parents, divisionals,
continuations, continuations-in-part, reexaminations, reissues and foreign counterparts
of such patent.

 

1.10                           “Proprietary
Information” means technical, licensing and/or business information that is or
has been disclosed to the receiving party by the disclosing party, whether
orally, or in written or other tangible form. 
Proprietary Information includes without limitation: research reports,
information relating to products or manufacturing capabilities, costs, profits,
sales, lists of customers, computer programs, business methods, and plans for
future developments.  This Agreement and
the terms hereof shall be considered Proprietary Information.  Proprietary Information does not include, and
no obligation is imposed on, information which:

 

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(a)                                  is
already in or subsequently enters the public domain through no fault of the
receiving party;

 

(b)                                 is
supplied by the disclosing party to a third party without a duty of
confidentiality to the disclosing party;

 

(c)                                  is
known to the receiving party or is in its possession (as shown by tangible
evidence) prior to receipt from the disclosing party;

 

(d)                                 is
disclosed pursuant to the order or requirements of a governmental
administrative agency or other governmental body provided that such disclosure
is pursuant to a protective order and the disclosing party has been notified of
such a disclosure request in advance.

 

1.11                           “Signature
Capture Terminal” shall mean any products that include an electronic detector
to record any type of electronic signature, handwritten mark, handwritten data
entry, and/or handwritten data capture, and includes Signature Capture
Terminals.

 

1.12                           “sold”,
when referring to a product, shall mean product for which an invoice or other
request for payment has been issued.

 

1.13                           “VeriFone
Patents” shall mean all patents issued to or licensed by VeriFone (to which
VeriFone has the right to sublicense without obligating VeriFone to further
payments to the patent holder) worldwide during the term of this Agreement.

 

Article 2

LICENSE
GRANT

 

2.1                                 NCR
hereby grants to VeriFone, and VeriFone hereby accepts upon the terms and
conditions hereinafter specified, a non-exclusive, irrevocable (except as set
forth in Article 9), worldwide, non-transferable (except as set forth in
Section 13.6), fee-bearing license under the NCR Patents during the term
of this Agreement to use, make, have made, sell, offer to sell and import any
product or service covered by the NCR Patents without the right to
sublicense.  VeriFone acknowledges and
agrees that NCR expressly reserves all rights to the NCR Patents, other than
the licenses and rights expressly granted to VeriFone pursuant to this
Article 2. Notwithstanding the foregoing, however, nothing herein shall be
construed as providing a license to the NCR Patents to third party users of
products (including, but not limited to, software) that are distributed, sold,
or licensed by VeriFone, except for the implied license accompanying the
purchase of a Licensed Product for which a fee has been paid by VeriFone to
NCR.

 

2.2                                 VeriFone
further acknowledges and agrees that NCR’s reserved rights include without
limitation the right to further license the NCR Patents to VeriFone’s direct
competitors.  VeriFone acknowledges and
agrees that the license and rights to the NCR Patents granted to VeriFone
pursuant to this Agreement are not transferable or assignable by VeriFone to
any other individual or entity and

 

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expressly
excludes the right to make any sublicense of any of the licenses and rights
granted to VeriFone under this Agreement except as set forth in
Section 13.6.

 

2.3                                 Nothing
contained herein shall be construed as granting a license to VeriFone under any
other intellectual property right of NCR, tangible or intangible, including
without limitation, copyrights, trademarks and trade secrets, except as
specifically set forth herein.

 

2.4                                 Both
parties agree that this Agreement, including its existence and its terms and
conditions, will be subject to all evidentiary privileges (including but not
limited to FRE 408) applying to compromises or offers to compromise and will
not be admitted in any lawsuit, arbitration, or other litigation, except
litigation regarding a breach of this Agreement or a litigation in which the
scope of this Agreement is at issue, and that neither party will use this
Agreement, including its existence and its terms and conditions, as evidence in
such litigation, whether or not such information is publicly known or
available.

 

Article 3

MARKING

 

3.1                                 To
the extent that VeriFone manufactures a physical product that is sold under
license granted from this Agreement for one or more NCR Patents including
system or apparatus claims, VeriFone agrees to mark such products manufactured
by it, or on its behalf, with the phrase “This product was produced under the
following United States patents and their foreign equivalents:” immediately
followed by a comma delimited list of United States patent numbers of the
issued NCR Patents and the phrase “and patents pending,” if appropriate.

 

Article 4

RELEASES

 

4.1                                 Subject
to VeriFone satisfying its obligations specified in Article 5 below for at
least one calendar year, NCR and its Affiliates hereby release and forever
discharge VeriFone from any and all claims, liens, demands, causes of action,
obligations, losses, damages, and liabilities, known or unknown, suspected or
unsuspected, liquidated or unliquidated, fixed or contingent, that they have
had in the past or now have under any of the NCR Patents based on or arising
out of the making, having made, use, sale, offering for sale or importing of
any products or services by VeriFone prior to and including the Effective Date
in the United States and its territories and possessions, or in any foreign
country in which the NCR Patents are in effect.

 

4.2                                 VeriFone
and its Affiliates hereby release and forever discharge NCR from any and all
claims, liens, demands, causes of action, obligations, losses, damages, and
liabilities, known or unknown, suspected or unsuspected, liquidated or
unliquidated, fixed or contingent, that they have had in the past or now have

 

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relating
to the NCR Patents and the licensing thereof, or to the VeriFone Patents based
on or arising out of the making, having made, use, sale, offering for sale or importing
of any products or services by NCR prior to and including the Effective Dates
in the United States and its territories and possessions, or in any foreign
country in which the VeriFone Patents are in effect.

 

Article 5

CONSIDERATION

 

5.1                                 VeriFone
shall pay to NCR a License Fee each quarter during the term of this Agreement.

 

5.2                                 Each
License Fee shall be paid within fifteen (15) calendar days of the end of the
quarter for which the License Fee is due. 
For the purposes of this Agreement, the four quarters are:
December 1 to February 28, March 1 to May 31, June 1 to
August 31, and September 1 to November 30.  The first payment shall be payable on
December 15 and, as an exception, shall only relate to Licensed Products
sold during November 2004.  In the
event that two different rates apply during one quarter, the higher rate shall
prevail and shall be applied to all the Licensed Products sold during that
quarter.

 

5.3                                 The
License Fee payments shall not be suspended during any period when the validity
of any of the NCR Patents is challenged.

 

5.5                                 The
License Fee payments, or any portions thereof, paid hereunder are not
refundable, even if the NCR Patents are subsequently determined to be invalid,
not infringed, or unenforceable.

 

5.6                                 Notwithstanding
any provision to the contrary contained in this Agreement, neither party shall
enter into any transaction with any Affiliate that would circumvent its
monetary or other obligations of this Agreement.

 

Article 6

PAYMENTS

 

6.1                                 All
payments made by VeriFone to NCR are to be effected by transfer of U.S. Dollars
to NCR as stated in Section 6.2 or to such other place or bank account
which NCR may otherwise herein, or otherwise by written notice, designate.  Interest shall accrue on any payment that is
not paid when due as provided herein at the lesser of (i) the rate of one and
one-half (1.5%) percent per month, compounded quarterly, or (ii) the highest
rate per month permitted by applicable law.

 

6.2                                 All
payments due shall be made without deduction of taxes, assessments, or other
charges of any kind that may be imposed by any government or any political
subdivision thereof with respect to any amounts payable pursuant to this
Agreement.  Absent advance written notice
delivered by NCR or otherwise agreed

 

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in
writing by the parties, payments hereunder shall be made to NCR by wire
transfer to:

 

For the benefit of NCR Corp.

Chase Manhattan Bank

4 New York Plaza, New York, NY 10004-2413

ABA #021000021

Bank Account Name: 
NCR Domestic

Account No. 9102711091

 

or to
such other bank accounts, and allocated in such percentages as NCR or its
designee may from time to time designate in writing.

 

Article 7

REPORTING
OF LICENSE FEE PAYMENTS

 

7.1                                 After
execution of this Agreement, within fifteen (15) calendar days of the end of
each quarter, VeriFone shall provide a written report, certified as to its
correctness, to NCR, indicating the quantity of Licensed Products sold during
the quarter including the quantity of each Licensed Product model, namely

 

(i)
the quantity of Omni 7000 (or its successor) models sold,

 

(ii)
the quantity of Omni 7100 (or its successor) models sold,

 

(iii)
the quantity of color display Signature Capture Terminals, or other Signature
Capture Terminals, sold.

 

The report
shall be accompanied by payment of the License Fee computed thereon in
accordance with the relevant entries from Schedule 1.

 

7.2                                 VeriFone
agrees to make a similar written termination report to NCR within thirty (30)
calendar days after the date of any termination by VeriFone of the license
received by VeriFone under this Agreement, and within thirty (30) calendar days
after expiration or termination of this Agreement howsoever arising.  The report shall cover all sales of Licensed
Products which were previously unreported to NCR and shall be accompanied by
payment of a License Fee computed thereon.

 

7.3                                 VeriFone
shall retain for a period of three (3) years after making a License Fee report,
the records, files, and books of account prepared in the normal course of
business, which contain data reasonably required for the computation and
verification of the amounts to be paid and the information to be given in such
report. VeriFone shall permit the inspection, with reasonable advance notice
and at reasonable times during normal business hours, of such records, files,
and books of account by a certified public accountant to which VeriFone has no
reasonable objection. Said auditor shall be permitted to inspect such records,
files, and books and VeriFone shall give said auditor such other information as
may be necessary and proper to enable the amounts of payments payable hereunder
to be accurately ascertained. Such inspection shall be at NCR’s expense unless
it is

 

6

 

determined
by said auditor that the License Fee payments paid to NCR are deficient in
excess of five percent (5%), in which case such inspection shall be paid by
VeriFone and VeriFone, in addition to any other remedy provided NCR by law or
by this Agreement, agrees and is hereby bound to pay NCR an amount equal to one
hundred ten percent (110%) of that which VeriFone has failed to report or pay,
with interest as described in Article 6 above calculated from the date
each License Fee accrued to the date of payment under this Article. Neither NCR
nor said auditor shall disclose to anyone, directly or indirectly, any of the
information which they obtain as a result of any such inspection; provided,
however, that such information may be disclosed in connection with litigation
or proceedings among the parties, or in connection with any statement filed
with the Securities and Exchange Commission, the Internal Revenue Service, or
other governmental agencies pursuant to any subpoena or judicial process or where
otherwise required by law. NCR shall be entitled to receive only the results
and conclusions of the auditor, and shall not be entitled to receive the raw
data and materials on which those results and conclusions are based. NCR shall
maintain in strict confidence and safeguard to the best of its ability any
proprietary or confidential information it may receive as a result of such
audits and shall not at any time disclose such information to others. Any
payments due under this Section shall be due and payable sixty (60) days
following notice from NCR of such failure, breach or default.

 

Article 8

COVENANT NOT TO ASSERT AND WAIVER

 

8.1                                 NCR,
on behalf of itself and its successors, assigns and its Affiliates, agrees that
with respect to any Non-Asserted Patents, during the term of this Agreement,
NCR will not assert such Non-Asserted Patents against VeriFone, directly or
indirectly, for any claim of infringement based on the use, making, having
made, sale, offer for sale, importing or distribution of any apparatus or
product or of any method or service, except: making or having made Automated
Teller Machines (ATMs); making or having made self-checkout systems, making or having made Point of Sale systems
incorporating a cash drawer; making or having made printer cartridges,
printer ribbons, printer paper, receipt/check paper, paper business forms,
making or having made data warehouse systems or parts thereof, making or having
made semiconductors, and use, making, having made, sale, offer for sale,
importing or distribution of apparatus related to medical/pharmaceutical waste. 
Notwithstanding the foregoing, however, this covenant not to assert
shall not apply to third party users of products (including, but not limited
to, software) that are distributed, sold, or licensed by VeriFone. This
covenant shall run with the NCR Patents and shall terminate with this
Agreement.

 

This NCR covenant not to assert includes an
irrevocable present grant of immunity that will run with the Non-Asserted
Patents and shall continue until
termination of this Agreement. 
Conditioned on VeriFone making the payments as set forth in
Article 5, NCR, on behalf of itself, its successors, assigns and
its Affiliates, irrevocably agrees that
NCR, its successors, assigns and its Affiliates

 

7

 

do hereby waive, and at all times in the future
shall waive, any and all claims to damages, license fees, royalties and any
other form of payment based upon activities by VeriFone, directly or
indirectly, which are covered by the scope of the NCR covenant not to assert
(which is described in the preceding paragraph) and which occur or accrue
before termination of this Agreement.

 

8.2                                 VeriFone,
on behalf of itself and its successors, assigns and its Affiliates, agrees that
with respect to any VeriFone Patents, during the term of this Agreement,
VeriFone will not assert such VeriFone Patents against NCR, directly or
indirectly, for any claim of infringement based on the use, making, having
made, sale, offer for sale, importing or distribution of any apparatus or
product, or of any method or service implemented or used by NCR.  This covenant shall run with the VeriFone
Patents and shall terminate with this Agreement.

 

This VeriFone covenant not to assert includes an irrevocable
present grant of immunity that will run with the VeriFone Patents and shall continue until termination of this
Agreement.  VeriFone, on behalf of
itself, its successors, assigns and its Affiliates, irrevocably agrees that VeriFone, its successors, assigns and
its Affiliates do hereby waive, and at
all times in the future shall waive, any and all claims to damages, license
fees, royalties and any other form of payment based upon activities by NCR,
directly or indirectly, which are covered by the scope of the VeriFone covenant
not to assert (which is described in the preceding paragraph) and which occur
or accrue before termination of this Agreement.

 

Article 9

TERMINATION

 

9.1                                 Unless
otherwise terminated as provided in this Article, this Agreement shall remain
in force and effect until January 10, 2011, and shall thereupon terminate.

 

9.2                                 NCR
may terminate this Agreement upon written notice to VeriFone if:

 

(a)                                  VeriFone
remains in default in making any payment, purchase or report required under
this Agreement for a period of sixty (60) days after written notice of such
default or failure is given by NCR to VeriFone. 
In such event, NCR shall be entitled to terminate this Agreement upon
notice to VeriFone, unless a genuine and good faith dispute exists as to the
amount due and any amounts not in dispute are timely paid.

 

(b)                                 Prior
to VeriFone satisfying its obligations under Article 5, VeriFone (i)
ceases conducting business in the normal course, (ii) becomes insolvent, (iii)
makes a general assignment for the benefit of creditors, (iv) suffers or
permits the appointment of a receiver for its business or assets, (v) avails
itself of or becomes subject to any proceeding under the applicable bankruptcy
law or any other statute of any state or country relating to insolvency or the
protection of rights of creditors, or (vi) receives any order for the
compulsory liquidation of VeriFone made by any court.

 

8

 

(c)                                  VeriFone
initiates a patent infringement action or suit against NCR in violation of
section 8.2 above.

 

9.3                                 Any
termination of this Agreement shall not relieve VeriFone of liability for any
payments accrued or owed by VeriFone to NCR under this Agreement prior to the
effective date of such termination subject to the provisions of
Section 9.5(a).

 

9.4                                 Unless
otherwise specified herein, if either NCR or VeriFone shall default in any
material manner and in any material way in their performance of any of the
material terms and provisions of this Agreement to be performed by it, and such
default shall not be cured within sixty (60) days after written notice of such
default is given by the non-defaulting party to the defaulting party, then at
any time after the expiration of such sixty (60) days, the non-defaulting party
may give written notice to the defaulting party of its election to terminate
this Agreement.  Thereupon, this
Agreement shall terminate on the date specified in such notice, which shall not
be less than thirty (30) days following the receipt of such last mentioned
notice.  Such right of termination shall
not be exclusive of any other legal or equitable remedies or means of redress
to which the non-defaulting party may be lawfully entitled, it being intended
that all such remedies be cumulative.

 

9.5                                 Except
where the contrary is specifically indicated, any termination of this Agreement
shall be without prejudice to the following rights and obligations which shall
survive any termination to the degree necessary to permit their complete
fulfillment or discharge.

 

(a)                                  NCR’s
right to receive or recover and VeriFone’s obligation to pay the License Fee
payments, and any applicable interest accrued or accruable for payment at the
time of any termination.

 

(b)                                 Any
cause of action or claim of either party accrued or to accrue, because of any
breach or default by the other party.

 

(c)                                  Either
party’s obligation to indemnify the other party as provided in Article 12
hereof.

 

Article 10

CONFIDENTIALITY

 

10.1                           The
receiving party will treat and safeguard Proprietary Information of the other
party with the same standard of care (but at least a reasonable standard of
care) that the receiving party employs for its own Proprietary Information and
shall not, without the prior written approval of the disclosing party, (a) disclose
any Proprietary Information to a third party except financial and legal
consultants or advisors who agree in writing to not further disclose such
information and have a need to know such information to perform their services,
(b) use Proprietary Information in any way for the benefit of any third
parties, and/or (c) use Proprietary Information in any way other than for the
purposes of this Agreement.

 

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The
receiving party will limit access to Proprietary Information to only those
employees who have a need to know of such Proprietary Information in order to
accomplish the purposes of this Agreement and who are aware of and have agreed
to respect the relevant provisions of this Agreement, or third parties who have
first executed a confidentiality agreement protecting against disclosure of
such Proprietary Information.

 

10.2                           All
Proprietary Information, unless otherwise specified in writing, shall remain
the property of the disclosing party, and shall be promptly returned to the
disclosing party at its request or destroyed after the receiving party’s need
for it has expired, and in any event, upon termination of this Agreement.

 

10.3                           All
duties of confidentiality shall extend until three (3) years after the date of
disclosure by the disclosing party.

 

10.4                           If
disclosure of this Agreement, any of the terms hereof or other Proprietary
Information is required by applicable law, rule, or regulation, or is compelled
by a court or governmental agency, authority, or body:  (i) the parties shall use all legitimate and
legal means reasonably available to minimize the disclosure to third parties of
the content of the Agreement, including without limitation seeking a
confidential treatment request or protective order; (ii) the disclosing party
shall inform the other party at least ten (10) business days (i.e., not a
Saturday, Sunday or a day on which banks are not open for business in the
geographic area in which the non-disclosing party’s principal office is
located) in advance of the disclosure, or immediately upon becoming aware of
such requirement, if less; and (iii) the disclosing party shall give the other
party a reasonable opportunity to review and comment upon the disclosure, and
any request for confidential treatment or a protective order pertaining
thereto, prior to making such disclosure.

 

10.5                           Because
of the unique and proprietary nature of the Proprietary Information, it is
understood and agreed that either party’s remedies at law for a breach by the
other party of its obligations under Article 10 will be inadequate and
that the non-breaching party shall, in the event of any such breach, be
entitled to equitable relief (including without limitation preliminary and
permanent injunctive relief, without a requirement for a bond, and specific
performance) in addition to all other remedies provided under this Agreement or
available to such party at law.

 

Article 11

REPRESENTATIONS;
DISCLAIMER; LIMITATION OF LIABILITY

 

11.1                           Except
as set forth herein, NCR makes no express or implied warranty or representation
with respect to the NCR Patents and the Non-Asserted Patents, including without
limitation any warranty or representation regarding the usefulness,
merchantability, functional effectiveness, safety, performance or fitness for
any particular use of any products or services covered by the license granted
hereunder.

 

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11.2                           EXCEPT
FOR THE INDEMNIFICATION OBLIGATIONS SET FORTH IN ARTICLE 12, IN NO EVENT
SHALL NCR OR VERIFONE BE LIABLE FOR ANY INCIDENTAL, INDIRECT, PUNITIVE, SPECIAL
OR CONSEQUENTIAL DAMAGES SUFFERED OR INCURRED IN CONNECTION WITH THIS AGREEMENT
OR THE LICENSES GRANTED HEREUNDER.

 

11.3                           No
representation or warranty is made by NCR that any product or service
manufactured, used, sold or otherwise disposed of by VeriFone under this
Agreement will not infringe directly, contributorily or by inducement under the
laws of the United States or any foreign country, any patent or other
intellectual property right owned or controlled by any third party and NCR
shall not be liable either directly or as an indemnitor of VeriFone as a
consequence of any infringement of any such third party patents.

 

11.4                           NCR
makes no express or implied warranty or representation as to the scope or
validity of the NCR Patents.

 

11.5                           NCR
represents and warrants that it is the sole exclusive owner of the NCR Patents.

 

11.6                           Each
party represents and warrants (a) that it has the full power to enter into this
Agreement; (b) that it has not entered into and shall not enter into any
agreement with another party that is inconsistent or in conflict with this
Agreement in any respect.

 

11.7                           Each
party further represents and warrants that in executing this Agreement, it does
not rely on any promises, inducements, or representations made by any party or
third party with respect to this Agreement or any other business dealings with
any party or third party, now or in the future.

 

11.8                           Each
party represents and warrants that it is not presently the subject of a
voluntary or involuntary petition in bankruptcy or the equivalent thereof, does
not presently contemplate filing any such voluntary petition, and does not
presently have reason to believe that such an involuntary petition will be
filed against it.

 

11.9                           Other
than the express warranties of this Article, there are no other warranties,
express or implied or statutory.

 

Article 12

INDEMNIFICATION

 

12.1                           VeriFone
agrees to indemnify and hold NCR and, its officers, directors, shareholders,
employees, agents, and representatives (each an “NCR Indemnified Party”)
harmless at all times from, against and in respect of any and all actions,
suits, losses, costs, liabilities, claims, damages or any other expenses of any
character or nature, including, but not limited to reasonable investigation and
Attorneys’ Fees, arising as a result of or in connection with any third party
claim

 

11

 

caused by or arising from (i) any misrepresentation,
breach of warranty or non-fulfillment of any warranty, representation, covenant
or agreement on the part of VeriFone, and/or (ii) VeriFone’s manufacture, use
or sale of products or services under the NCR Patents other than for breach of
NCR’s representations in Section 11.6, provided (i) NCR gives written
notice of any claim to VeriFone; (ii) at VeriFone’s expense, the relevant NCR
Indemnified Party provides any assistance which VeriFone may reasonably request
for the defense of the claim, and (iii) VeriFone has the right to control of
the defense of the claim, provided, however, that the relevant NCR Indemnified
Party shall have the right to participate in, but not control, any litigation
for which indemnification is sought with counsel of its own choosing, at its
own expense.

 

12.2                           NCR
agrees to indemnify, defend and hold VeriFone, and its officers, directors,
shareholders, employees, agents, and representatives (each a “VeriFone
Indemnified Party”) harmless from and against any and all actions, suits,
damages, claims, losses, costs, liabilities and expenses (including reasonable
Attorneys’ Fees), arising as a result of or in connection with any third party
claim caused by or arising from NCR’s breach of any of the representations or
warranties of NCR in Section 11.6 herein provided: (i) the relevant
VeriFone Indemnified Party promptly gives written notice of any claim to NCR;
(ii) at NCR’s expense, the relevant VeriFone Indemnified Party provides any
assistance that NCR may reasonably request for the defense of the claim; and
(iii) NCR has the right to control of the defense or Patent License of the
claim, provided, however, that the relevant VeriFone Indemnified Party shall
have the right to participate in, but not control, any litigation for which
indemnification is sought with counsel of its own choosing, at its own expense.

 

Article 13

MISCELLANEOUS

 

13.1                         Governing
Law and Venue.  This Agreement and
the rights of NCR and of VeriFone hereunder shall be interpreted, governed,
construed, applied and enforced in accordance with the laws (without regard to
principles of conflict of law matters) of the State of New York or the United
States of America, as applicable, regardless of (i) where this Agreement is
executed or delivered; or (ii) where any performance required by this Agreement
is made or required to be made; or (iii) where any breach of any provision of
this Agreement occurs, or any cause of action otherwise accrues; or (iv) the
nationality, citizenship, domicile, principal place of business, or
jurisdiction or organization or domestication of NCR or VeriFone; or (v)
whether the laws of a forum of applicable jurisdiction otherwise would apply
the laws of a jurisdiction other than the State of New York or the United
States of America, as applicable; or (vi) any combination of the foregoing.  The United Nations Convention on Contracts
for the International Sale of Goods shall not apply to any transactions under
this Agreement.  Subject to the
arbitration provisions in Section 13.15 of the Agreement, any party filing
suit against the other hereunder hereby submits to jurisdiction as
follows:  (i) the appropriate state or
federal courts in Ohio, in the event that NCR is the non-filing 

 

12

 

party, or (ii) the appropriate state or federal court
in California, in the event that VeriFone is the non-filing party.

 

13.2                           Notice.  Any notice or request required or permitted
to be given under or in connection with this Agreement or the subject matter
hereof shall be in writing and shall be deemed to have been sufficiently given
when sent by registered air mail or overnight courier, postage or charges
prepaid and address as follows:

 

	
  If
  to NCR:

  	
   

  	
  If
  to VeriFone:

  
	
  Attn: General Counsel,

  	
   

  	
  Attn: General Counsel

  
	
  NCR Corp.

  	
   

  	
  VeriFone, Inc.

  
	
  1700 S. Patterson Blvd.

  	
   

  	
  2099 Gateway Place

  
	
  2455 Augustine Drive

  	
   

  	
  Suite 600

  
	
  Dayton, OH 45479

  	
   

  	
  San Jose, CA 95110-1093

  

 

The date of receipt shall be deemed to be the date
when such notice or request has been given. 
Any party may give written notice of a change of address; and after
notice of such change has been received, any notice or request shall thereafter
be given to such party as provided above at such changed address.

 

13.3                           Independent
Contractors.  NCR and VeriFone are
strictly independent contractors and shall so represent themselves to all third
parties.  Except as otherwise provided
for herein, neither party has the right to bind the other in any manner
whatsoever and nothing in this Agreement shall be interpreted to make either
party the agent or legal representative of the other or to make the parties
joint venturers.

 

13.4                           Recitals,
Section Headings and Singular/Plural Terms.  The recitals to this Agreement are
incorporated herein by this reference Singular terms shall be construed as
plural, and vice versa, where the context requires.  Article and Section headings are a
matter of convenience and shall not be considered part of this Agreement.

 

13.5                           Severability/Invalidity.  If any provision of this Agreement shall be
held to be invalid, inoperative, illegal or unenforceable as applied to any
particular case in any jurisdiction, such holding shall not have the effect of
rendering the provision or provisions in question invalid, inoperative, illegal
or unenforceable in any other jurisdiction or in any other case or of rendering
any other provision in this Agreement as being invalid, inoperative, illegal or
unenforceable.  This Agreement shall be
construed as if such invalid, inoperative, illegal or unenforceable provision
had never been contained herein.  The
parties shall substitute for the defective provision a valid, operative and
enforceable provision which most closely approximates the economic effect and
intent of the defective provision.

 

13.6                         Assignment.  This Agreement may, at any time, upon prior
written notice to VeriFone but without VeriFone’s consent, be assigned by NCR
without such 

 

13

 

assignment operating to terminate, impair or in any
way change any obligations or rights which NCR would have had, or any of the
obligations or rights which VeriFone would have had, if such assignment had not
occurred, unless there exists a license between VeriFone and the assignee, the
scope of which covers the subject of this Agreement.  Should such a license agreement exist, said
license agreement shall control the relationship between VeriFone and the
assignee.  Regardless of the existences
of such license agreement from and after the making of any such assignment by
NCR, the assignee shall be substituted for NCR as a party hereto, and thus be
subject to NCR’s obligations and undertakings herein.  In the event that the assignment is to a
competitor of VeriFone, NCR will continue to receive the reports required by
Article 7 made by VeriFone on a confidential basis and will not reveal the
contents thereof to the assignee.

 

This Agreement shall inure to the benefit of, and be
binding upon, the successors and assigns of all parties, but no purported
assignment or transfer by VeriFone of this Agreement or any part thereof shall
have any force or validity whatsoever, except, unless and until approved in
writing by NCR, such approval not to be unreasonably withheld, conditioned or
delayed, except in the case of the sale of all or substantially all of the
business assets of VeriFone, in which case this Agreement may be assigned along
with such assets without the prior approval of NCR provided, however, that the
license shall (a) only apply to VeriFone’s products, services, offerings and
lines of business as they existed one hundred eighty days prior to such
disposition/combination; (b) be limited to covering such products, services,
offerings and lines of business to the extent of the annual revenue volume
achieved by VeriFone from its products, services, offerings and lines of
business for the calendar year immediately preceding such
disposition/combination, plus not more than fifteen percent (15%) annual
revenue growth for each year during the License Period thereafter; (c) not
apply to any pre-existing operations, products, services and offerings
conducted by such third party assignee. 
It shall be deemed reasonable hereunder to withhold such approval, inter alia, in the case of any attempted assignment or
transfer to a competitor of NCR.  Any
purported conveyance or other attempt by Verifone to confer or extend the
benefits and privileges of this Agreement to any third party shall be void and
ineffective.

 

13.7                           No
Construction Against Drafter.  If an
ambiguity or question of intent arises with respect to any provision of this
Agreement, the Agreement will be construed as if drafted jointly by the parties
and no presumption or burden of proof will arise favoring or disfavoring either
party by virtue of authorship of any of the provisions of this Agreement.

 

13.8                         Registration.
 If the terms of this Agreement are such
as to require or make it appropriate that the Agreement or any part thereof be
registered with or reported to a national or supranational agency of any area
in which VeriFone will do business under the Agreement, VeriFone will, within
thirty (30) days of the effective date of the Agreement, and at VeriFone’s
expense, undertake such registration or report. 
Prompt notice and appropriate verification of the act of 

 

14

 

registration or report or any agency ruling resulting
from it will be supplied by VeriFone to NCR.

 

13.9                           Counterparts.  This Agreement may be executed in
counterparts, each of which will be deemed an original, but both of which
together will constitute one and the same instrument.

 

13.10                     Facsimile Original.  Except as otherwise stated herein, in lieu of
the original documents, a facsimile transmission or copy of the original
documents shall be as effective and enforceable as the original.

 

13.11                     Publicity.  Except to the extent necessary to implement
the terms of this Agreement or as expressly set forth in this paragraph below,
all terms herein shall be kept confidential in accordance with Article 10
of this Agreement.  Notwithstanding the
foregoing and Article 10 hereof, (A) after the first payment is made
hereunder or on January 1, 2005, whichever occurs first, VeriFone agrees to issue a press release
announcing that VeriFone
has licensed the NCR Patents, wherein said press release is to be approved by
NCR in advance of issuing said press release, (B) either or both parties
may disclose such to the extent required for legal, accounting, insurance,
auditing, SEC disclosure and tax purposes, and (C) NCR may for purposes of
other patent license negotiations, patent infringement litigation or patent
license/infringement discussions in which NCR is involved, disclose (a) the
existence of this Agreement, and (b) its general terms, including aggregate
dollar value, provided that with respect to (b) the party to whom the general
terms are to be disclosed has executed a confidentiality agreement with NCR or
otherwise has agreed to keep such terms confidential and use such only for such
purposes. VeriFone acknowledges that the general terms as described in
subsection (b) above may be disclosed by providing a copy of this
Agreement pursuant to the confidentiality agreement. Both parties shall refrain
from any press releases or other publicity reflecting negatively on the other
related to this Agreement, the negotiations leading up to this Agreement, the
NCR Patents or the technology of the other.

 

13.12.                  Export Controls.  VeriFone shall comply with all export laws,
restrictions, national security controls and regulations of the United States,
and all other applicable foreign agencies and authorities, and shall not export
or re-export any products or technical data or any copy, portions or direct
product thereof (i) in violation of any such restrictions, laws, or regulation,
(ii) without all required authorization into Cuba, Libya, North Korea, Iran,
Iraq, or Rwanda or any other Group D:1 or E:2 country (or to a national or
resident thereof); specified in the then current Supplement No. 1 to part 740
of the U.S. Export Administration Regulations (or any successor supplement or
regulations) or (ii) to anyone on the U.S. Treasury Department’s list of
Specially Designated Nationals or the U.S. Commerce Department’s Table of
Denial Orders.  VeriFone shall, at its
own expense, obtain all necessary customs, import, or other governmental
authorizations and approvals.  This
paragraph shall survive termination of this Agreement.

 

15

 

13.13                     Entire Understanding.  This instrument contains the entire
understanding and the entire and only agreement between the parties and
supersedes all pre-existing agreements between them respecting its subject
matter.  Any representation, promise, or
condition in connection with such subject matter which is not expressly
incorporated in this Agreement shall not be binding upon either party.  No modification, renewal, extension, waiver,
and no termination of this Agreement or any of its provisions shall be binding
upon the party against whom enforcement of such modification, renewal,
extension, waiver or termination is sought, unless made in writing and signed
on behalf of such party by one of its executive officers.  As used herein, the word “termination”
includes any and all means of bringing to an end prior to its expiration by its
own terms this Agreement, or any provision thereof, whether by release,
discharge, abandonment, or otherwise.

 

13.14                     Exclusivity.  This Agreement is not exclusive.  Either Party may enter into negotiations or
agreements with any third parties concerning the subject matter hereof, without
any accounting or liability to any other party, other than as expressly
provided for herein.

 

13.15                     Dispute Resolution; Arbitration.  Any dispute regarding this Agreement shall be
resolved as specified in this Section 13.15.  Upon the written request of either party,
each party will appoint a designated representative who shall negotiate in good
faith to attempt to resolve such dispute. 
If the representatives do not resolve the dispute within thirty (30)
days after the date a party requested the appointment of representatives, then
a party may initiate arbitration or court proceeding, as applicable, pursuant
to this Section 13.15.

 

Any
disputes arising from or related to this Agreement that concern any payments or
reports due hereunder, the breach of VeriFone’s covenants in Section 4.2
and the provisions of Articles 9, 11, 12, and 13 shall be settled by
arbitration in accordance with the Commercial Arbitration rules of the American
Arbitration Association, as applicable, as in effect on the date of initiation
of arbitration.  With respect to any
dispute arising other than as set forth above, either party may file suit in
accordance with the provisions of Section 13.1.  Nothing in this Section 13.15 shall bar
either party’s right to obtain injunctive relief or other equitable remedies
against threatened or actual conduct that will cause it loss or damage in
accordance with the provisions of Section 13.1.  Any disputes arising from or related to this
Agreement shall be settled by arbitration in accordance with the Patent
Arbitration and/or Commercial Arbitration rules of the American Arbitration
Association, as applicable, as in effect on the date of initiation of
arbitration proceedings shall be confidential, conducted in the English
language and shall take place in the jurisdiction in which the non-initiating
party maintains its principal place of business.

 

Judgment
Final.  Any award
rendered by an Arbitrator will be final and binding upon the parties.  Any judgment on the award may be entered in
and enforced by any court having jurisdiction and shall be final and legally
binding.

 

16

 

Fees
and Expenses.  The fees
of the arbitrators and the expenses incident to the arbitration proceedings
shall be borne equally by the parties to such arbitration.  All other expenses shall be borne by the
party incurring such expenses.

 

13.16                     Survival.  Sections 4.1, 4.2 and 9.5 and Articles 10
(Confidentiality), 11 (Representations; Disclaimer; Limitation of Liability),
12 (Indemnification), 13 (Miscellaneous) and any other parties’ other
obligations which by their nature extend beyond termination shall survive
termination and remain fully effective.

 

13.17                     No Waiver.  No failure or delay to act upon any default
or to exercise any right, power or remedy hereunder will operate as a waiver of
any such default, right, power or remedy.

 

13.18                     Language.  The English language form of this Agreement
shall control and determine its interpretation.

 

13.19                     Currency.  All payments specified by this agreement
shall be made in United States currency.

 

13.20                     Bankruptcy.  The parties acknowledge and agree that this
Agreement is a contract under which NCR is a licensor of intellectual property
as provided in Section 365(n) of title 11, United States Code (the
“Bankruptcy Code”).  NCR acknowledges
that if NCR, as a debtor in possession or a trustee in bankruptcy in a case
under the Bankruptcy Code (the “Bankruptcy Trustee”), rejects this Agreement,
VeriFone may elect to retain its rights under this Agreement as provided in
Section 365(n) of the Bankruptcy Code. 
Upon written request of VeriFone to NCR or the Bankruptcy Trustee, NCR
or such Bankruptcy Trustee will not interfere with the rights of VeriFone as
provided in this Agreement.

 

IN WITNESS WHEREOF, each
of the parties hereto has caused this Agreement to be executed by their
respective duly authorized officers or representatives.

 

 

	
  NCR Corporation

  	
   

  	
  VeriFone, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Greg Egan

  	
   

  	
   

  	
  By:

  	
  /s/ Barry
  Zwarenstein

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print:

  	
  Greg Egan

  	
   

  	
   

  	
  Print:

  	
  Barry
  Zwarenstein

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  VP Software

  	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date: 

  	
  1/14/05

  	
   

  	
   

  	
  Date: 

  	
  10/15/04

  	
   

  
									

 

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Exhibit 10.4  

 
 

COMCAST CORPORATION
  2002 DEFERRED COMPENSATION PLAN    
    

 
  ARTICLE 1—COVERAGE OF PLAN    
    

        1.1.    Background, Continuation and Freeze of Plan.    

        (a)   Comcast
Corporation, a Pennsylvania corporation, hereby amends and restates the Comcast Corporation 2002 Deferred Compensation Plan (the  "Plan"), effective February 24, 2004. The Plan was initially adopted
effective February 12, 1974 and was amended and restated effective
August 15, 1996, June 21, 1999, December 19, 2000, October 26, 2001, April 29, 2002, July 9, 2002, November 18, 2002, March 3, 2003,
December 1, 2003, January 30, 2004 and February 24, 2004. 

        (b)   In
order to preserve the favorable tax treatment available to deferrals that were made under the Plan before January 1, 2005 in light of the American Jobs
Creation Act of 2004 and the regulations issued by the Department of the Treasury thereunder (the "AJCA"), no Compensation may be deferred under the
Plan pursuant to an Initial Election after December 31, 2004, other than amounts that (i) were subject to an Initial Election before January 1, 2005, (ii) would, but for
such Initial Election, have been paid in 2005 and (iii) are treated as earned and vested as of December 31, 2004 under IRS Notice
2005-1. 

        (c)   Amounts
earned and vested prior to January 1, 2005 are and will remain subject to the terms and conditions of the Plan 

        1.2.    Plan Unfunded and Limited to Outside Directors and Select Group of Management or Highly Compensated
Employees.    The Plan is unfunded and is maintained primarily for the purpose of providing outside directors and a select group of management or highly compensated
employees the opportunity to defer the receipt of compensation otherwise payable to such outside directors and eligible employees in accordance with the terms of the Plan. 

 
 

ARTICLE 2—DEFINITIONS    
    

        2.1.    "Account" means the bookkeeping accounts established pursuant to Section 5.1 and maintained by the Administrator
in the names of the respective Participants, to which all amounts deferred and earnings allocated under the Plan shall be credited, and from which all amounts distributed pursuant to the Plan shall be
debited. 

        2.2.    "Active Participant" means: 

        (a)   Each
Participant who is in active service as an Outside Director; and 

        (b)   Each
Participant who is actively employed by a Participating Company as an Eligible Employee. 

        2.3.  "Administrator" means the Committee. 

        2.4.  "Affiliate" means, with respect to any Person, any other Person that, directly or indirectly, is in control of, is
controlled by, or is under common control with, such Person. For purposes of this definition, the term "control," including its correlative terms  "controlled by" and "under common control with," mean, with respect to any Person, the possession,
directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise. 

        2.5.  "Annual Rate of Pay" means, as of any date, an employee's annualized base pay rate. An employee's Annual Rate of Pay
shall not include sales commissions or other similar payments or awards. 

        2.6.  "Applicable Interest Rate" means: 

        (a)   Except
as otherwise provided in Sections 2.6(b) or (c), the Applicable Interest Rate means the interest rate that, when compounded daily pursuant to rules established by
the Administrator from time to time, is mathematically equivalent to 12% per annum, compounded annually. 

        (b)   Except
to the extent otherwise required by Section 10.2, effective for the period beginning as soon as administratively practicable following a Participant's
employment termination date to the date 

 

the
Participant's Account is distributed in full, the Administrator, in its sole discretion, may designate the term "Applicable Interest Rate" for such
Participant's Account to mean the lesser of (i) the rate in effect under Section 2.6(a) or (ii) the Prime Rate plus one percent. Notwithstanding the foregoing, the Administrator
may delegate its authority to determine the Applicable Interest Rate under this Section 2.6(b) to an officer of the Company or committee of two or more officers of the Company. 

        (c)   Except
to the extent otherwise required by Section 10.2, the Applicable Interest Rate for Severance Pay deferred pursuant to Article 3 shall be determined
by the Administrator, in its sole discretion, provided that the Applicable Interest Rate shall not be less than the lower of the Prime Rate or LIBOR, nor more than the rate specified in
Section 2.6(a). Notwithstanding the foregoing, the Administrator may delegate its authority to determine the Applicable Interest Rate under this Section 2.6(c) to an officer of the
Company. 

        2.7.  "Beneficiary" means such person or persons or legal entity or entities, including, but not limited to, an organization
exempt from federal income tax under section 501(c)(3) of the Code, designated by a Participant or Beneficiary to receive benefits pursuant to the terms of the Plan after such Participant's or
Beneficiary's death. If no Beneficiary is designated by the Participant or Beneficiary, or if no Beneficiary survives the Participant or Beneficiary (as the case may be), the Participant's Beneficiary
shall be the Participant's Surviving Spouse if the Participant has a Surviving Spouse and otherwise the Participant's estate, and the Beneficiary of a Beneficiary shall be the Beneficiary's Surviving
Spouse if the Beneficiary has a Surviving Spouse and otherwise the Beneficiary's estate. 

        2.8.  "Board" means the Board of Directors of the Company. 

        2.9.  "CCCHI" means Comcast Cable Communications Holdings, Inc., formerly known as AT&T Broadband Corp. 

        2.10. "Change of Control" means any transaction or series of transactions as a result of which any Person who was a Third
Party immediately before such transaction or series of transactions owns then-outstanding securities of the Company such that such Person has the ability to direct the management of the
Company, as determined by the Board in its discretion. The Board may also determine that a Change of Control shall occur upon the completion of one or more proposed transactions. The Board's
determination shall be final and binding. 

        2.11. "CHC" means Comcast Holdings Corporation, formerly known as Comcast Corporation. 

        2.12. "Code" means the Internal Revenue Code of 1986, as amended. 

        2.13. "Committee" means the Compensation Committee of the Board of Directors of the Company. 

        2.14. "Company" means Comcast Corporation, a Pennsylvania corporation, as successor to CHC, including any successor thereto
by merger, consolidation, acquisition of all or substantially all the assets thereof, or otherwise. 

        2.15. "Company Stock" means: 

        (a)   except
as provided in Section 2.15(b), Comcast Corporation Class A Special Common Stock, par value, $0.01, including a fractional share; and 

        (b)   with
respect to amounts credited to the Company Stock Fund pursuant to deferral elections by Outside Directors made pursuant to Section 3.1(a), Comcast
Corporation Class A Common Stock, par value $0.01, including a fractional share; 

and
such other securities issued by Comcast Corporation as may be subject to adjustment in the event that shares of either class of Company Stock are changed into, or exchanged for, a different number
or kind of shares of stock or other securities of the Company, whether through merger, consolidation, reorganization, recapitalization, stock dividend, stock split-up or other substitution
of securities of the Company. In such event, the Committee shall make appropriate equitable anti-dilution adjustments to the number and class of hypothetical shares of Company Stock
credited to Participants' Accounts under the Company Stock Fund. Any reference to the term "Company Stock" in the Plan shall be a reference to the
appropriate number and 

2

 

class
of shares of stock as adjusted pursuant to this Section 2.15. The Committee's adjustment shall be effective and binding for all purposes of the Plan. 

        2.16. "Company Stock Fund" means a hypothetical investment fund pursuant to which income, gains and losses are credited to a
Participant's Account as if the Account, to the extent deemed invested in the Company Stock Fund, were invested in hypothetical shares of Company Stock, and all dividends and other distributions paid
with respect to Company Stock were held uninvested in cash, and reinvested in additional hypothetical shares of Company Stock as of the next succeeding December 31 (to the extent the Account
continues to be deemed invested in the Company Stock Fund through such December 31), based on the Fair Market Value of the Company Stock for such December 31. 

        2.17. "Compensation" means: 

        (a)   In
the case of an Outside Director, the total remuneration payable in cash or payable in Company Stock (as elected by the Outside Director pursuant to the Comcast
Corporation 2003 Director Compensation Plan) for services as a member of the Board and as a member of any Committee of the Board; and 

        (b)   In
the case of an Eligible Employee, the total cash remuneration for services payable by a Participating Company, excluding sales commissions or other similar payments
or awards. 

        2.18. "Death Tax Clearance Date" means the date upon which a Deceased Participant's or a deceased Beneficiary's Personal
Representative certifies to the Administrator that (i) such Deceased Participant's or deceased Beneficiary's Death Taxes have been finally determined, (ii) all of such Deceased
Participant's or deceased Beneficiary's Death Taxes apportioned against the Deceased Participant's or deceased Beneficiary's Account have been paid in full and (iii) all potential liability for
Death Taxes with respect to the Deceased Participant's or deceased Beneficiary's Account has been satisfied. 

        2.19. "Death Taxes" means any and all estate, inheritance, generation-skipping transfer, and other death taxes as well as any
interest and penalties thereon imposed by any governmental entity (a "taxing authority") as a result of the death of the Participant or the
Participant's Beneficiary. 

        2.20. "Deceased Participant" means a Participant whose employment, or, in the case of a Participant who was an Outside
Director, a Participant whose service as an Outside Director, is terminated by death. 

        2.21. "Disabled Participant" means: 

        (a)   A
Participant whose employment or, in the case of a Participant who is an Outside Director, a Participant whose service as an Outside Director, is terminated by reason
of disability; 

        (b)   The
duly-appointed legal guardian of an individual described in Section 2.21(a) acting on behalf of such individual. 

        2.22. "Eligible Employee" means: 

        (a)   Each
employee of a Participating Company who, as of December 31, 1989, was eligible to participate in the Prior Plan. 

        (b)   Each
employee of a Participating Company who was, at any time before January 1, 1995, eligible to participate in the Prior Plan and whose Annual Rate of Pay is
$90,000 or more as of both (i) the date on which an Initial Election is filed with the Administrator and (ii) the first day of each calendar year beginning after December 31,
1994. 

        (c)   Each
individual who was an employee of an entity that was a Participating Company in the Plan as of June 30, 2002 and who has an Annual Rate of Pay of $125,000 as
of each of (i) June 30, 2002; (ii) the date on which an Initial Election is filed with the Administrator and (iii) the first day of each calendar year beginning after
December 31, 2002. 

        (d)   Each
employee of a Participating Company whose Annual Rate of Pay is $200,000 or more as of both (i) the date on which an Initial Election is filed with the
Administrator and (ii) the first day of the calendar year in which such Initial Election is filed. 

3

 

        (e)   Each
New Key Employee. 

        (f)    Each
employee of a Participating Company who (i) as of December 31, 2002, was an "Eligible Employee" within
the meaning of Section 2.34 of the AT&T Broadband Deferred Compensation Plan (as amended and restated, effective November 18, 2002) with respect to whom an account was maintained, and
(ii) for the period beginning on December 31, 2002 and extending through any date of determination, has been actively and continuously in service to the Company or an Affiliate. 

        (g)   Each
other employee of a Participating Company who is designated by the Committee, in its discretion, as an Eligible Employee. 

        2.23. "Fair Market Value"

        (a)   If
shares of Company Stock are listed on a stock exchange, Fair Market Value shall be determined based on the last reported sale price of a share on the principal
exchange on which shares are listed on the date of determination, or if such date is not a trading day, the next trading date. 

        (b)   If
shares of Company Stock are not so listed, but trades of shares are reported on the Nasdaq National Market, Fair Market Value shall be determined based on the last
quoted sale price of a share on the Nasdaq National Market on the date of determination, or if such date is not a trading day, the next trading date. 

        (c)   If
shares of Company Stock are not so listed nor trades of shares so reported, Fair Market Value shall be determined by the Committee in good faith. 

        2.24. "Former Eligible Employee" means an employee of a Participating Company who, as of any relevant date, does not satisfy
the requirements of an "Eligible Employee" but who previously met such requirements under the Plan or the Prior Plan. 

        2.25. "Grandfathered Participant" means an Inactive Participant who, on or before December 31, 1991, entered into a
written agreement with the Company to terminate service to the Company or gives written notice of intention to terminate service to the Company, regardless of the actual date of termination of
service. 

        2.26. "Hardship" means a Participant's severe financial hardship due to an unforeseeable emergency resulting from a sudden
and unexpected illness or accident of the Participant, or, a sudden and unexpected illness or accident of a dependent (as defined by section 152(a) of the Code) of the Participant, or loss of
the Participant's property due to casualty, or other similar and extraordinary unforeseeable circumstances arising as a result of events beyond the control of the Participant. A need to send the
Participant's child to college or a desire to purchase a home is not an unforeseeable emergency. No Hardship shall be deemed to exist to the extent that the financial hardship is or may be relieved
(a) through reimbursement or compensation by insurance or otherwise, (b) by borrowing from commercial sources on reasonable commercial terms to the extent that this borrowing would not
itself cause a severe financial hardship, (c) by cessation of deferrals under the Plan, or (d) by liquidation of the Participant's other assets (including assets of the Participant's
spouse and minor children that are reasonably available to the Participant) to the extent that this liquidation would not itself cause severe financial hardship. For the purposes of the preceding
sentence, the Participant's resources shall be deemed to include those assets of his spouse and minor children that are reasonably available to the Participant; however, property held for the
Participant's child under an irrevocable trust or under a Uniform Gifts to Minors Act custodianship or Uniform Transfers to
Minors Act custodianship shall not be treated as a resource of the Participant. The Board shall determine whether the circumstances of the Participant constitute an
unforeseeable emergency and thus a Hardship within the meaning of this Section. Following a uniform procedure, the Board's determination shall consider any facts or conditions deemed necessary or
advisable by the Board, and the Participant shall be required to submit any evidence of the Participant's circumstances that the Board requires. The determination as to whether the Participant's
circumstances are a case of Hardship shall be based on the facts of each case; provided however, that all determinations as to Hardship shall be uniformly and consistently made according to the
provisions of this Section for all Participants in similar circumstances. 

4

 

        2.27. "Inactive Participant" means each Participant (other than a Retired Participant, Deceased Participant or Disabled
Participant) who is not in active service as an Outside Director and is not actively employed by a Participating Company. 

        2.28. "Income Fund" means a hypothetical investment fund pursuant to which income, gains and losses are credited to a
Participant's Account as if the Account, to the extent deemed invested in the Income Fund, were credited with interest at the Applicable Interest Rate. 

        2.29. "Initial Election" means a written election on a form provided by the Administrator, filed with the Administrator in
accordance with Article 3, pursuant to which an Outside Director or an Eligible Employee may: 

        (a)   Elect
to defer all or any portion of the Compensation payable for the performance of services as an Outside Director or as an Eligible Employee (including Severance Pay,
to the extent permitted with respect to an Eligible Employee pursuant to Section 3.2) following the time that such election is filed; and 

        (b)   Designate
the time of payment of the amount of deferred Compensation to which the Initial Election relates. 

        2.30. "Insider" means an Eligible Employee or Outside Director who is subject to the short-swing profit recapture rules of
section 16(b) of the Securities Exchange Act of 1934, as amended. 

        2.31. "LIBOR" means, for any calendar year, the interest rate that, when compounded daily pursuant to rules established by
the Administrator from time to time, is mathematically equivalent to the annual London Inter Bank Offered Rate (compounded annually), as published in the Eastern Edition of The
Wall Street Journal, on the last business day preceding the first day of such calendar year, and as adjusted as of the last business day preceding the first day of each
calendar year beginning thereafter. 

        2.32. "New Key Employee" means each employee of a Participating Company: 

        (a)   who
becomes an employee of a Participating Company and has an Annual Rate of Pay of $200,000 or more as of his employment commencement date, or 

        (b)   who
has an Annual Rate of Pay that is increased to $200,000 or more and who, immediately preceding such increase, was not an Eligible Employee. 

        2.33. "Normal Retirement" means: 

        (a)   For
a Participant who is an employee of a Participating Company immediately preceding his termination of employment, a termination of employment that is treated by the
Participating Company as a retirement under its employment policies and practices as in effect from time to time; and 

        (b)   For
a Participant who is an Outside Director immediately preceding his termination of service, his normal retirement from the Board. 

        2.34. "Outside Director" means a member of the Board, who is not an employee of a Participating Company. 

        2.35. "Participant" means each individual who has made an Initial Election, or for whom an Account is established pursuant to
Section 5.1, and who has an undistributed amount credited to an Account under the Plan, including an Active Participant, a Deceased Participant and an Inactive Participant. 

        2.36. "Participating Company" means: 

        (a)   The
Company; 

        (b)   CHC;

        (c)   Comcast
Cable Communications, LLC, and its subsidiaries; 

        (d)   Comcast
International Holdings, Inc.; 

        (e)   Comcast
Online Communications, Inc.; 

5

 

        (f)    Comcast
Business Communications, Inc.; 

        (g)   CCCHI
and its subsidiaries; 

        (h)   Comcast
Shared Services Corporation ("CSSC"), to the extent individual employees of CSSC or groups of CSSC employees,
categorized by their secondment, are designated as eligible to participate by the Committee or its delegate; and 

        (i)    Any
other entities that are subsidiaries of the Company as designated by the Committee in its sole discretion. 

        2.37. "Person" means an individual, a corporation, a partnership, an association, a trust or any other entity or
organization. 

        2.38. "Plan" means the Comcast Corporation 2002 Deferred Compensation Plan, as set forth herein, and as amended from time to
time. 

        2.39. "Prime Rate" means, for any calendar year, the interest rate that, when compounded daily pursuant to rules established
by the Administrator from time to time, is mathematically equivalent to the prime rate of interest (compounded annually) as published in the Eastern Edition of The Wall Street
Journal on the last business day preceding the first day of such calendar year, and as adjusted as of the last business day preceding the first day of each calendar year
beginning thereafter. 

        2.40. "Prior Plan" means the Comcast Corporation 1996 Deferred Compensation Plan, as in effect immediately preceding the
amendment, restatement and renaming of the Plan as the Comcast Corporation 2002 Deferred Compensation Plan. 

        2.41. "Retired Participant" means a Participant who has terminated service pursuant to a Normal Retirement. 

        2.42. "Severance Pay" means any amount that is payable in cash and is identified by a Participating Company as severance pay,
or any amount which is payable on account of periods beginning after the last date on which an employee (or former employee) is required to report for work for a Participating Company. 

        2.43. "Subsequent Election" means a written election on a form provided by the Administrator, filed with the Administrator in
accordance with Article 3, pursuant to which a Participant or Beneficiary may elect to defer (or, in limited cases, accelerate) the time of payment or to change the manner of payment of amounts
previously deferred in accordance with the terms of a previously made Initial Election or Subsequent Election. 

        2.44. "Surviving Spouse" means the widow or widower, as the case may be, of a Deceased Participant or a Deceased Beneficiary
(as applicable). 

        2.45. "Terminating Event" means either of the following events: 

        (a)   the
liquidation of the Company; or 

        (b)   a
Change of Control. 

        2.46. "Third Party" means any Person, together with such Person's Affiliates, provided that the term  "Third Party" shall not include the Company or an Affiliate of the
Company. 

6

 
 
 

ARTICLE 3—INITIAL AND SUBSEQUENT ELECTIONS    
    

	3.1.
	Elections.

        (a)   Initial Elections.    Each Outside Director and Eligible Employee shall have the right to defer all or any
portion of the Compensation (including bonuses, if any, and, in the case of Outside Directors, including any portion of an Outside Director's Compensation payable in the form of Company Stock) that he
would otherwise be entitled to receive in a calendar year by filing an Initial Election at the time and in the manner described in this Article 3; provided that Severance Pay shall be included
as "Compensation" for purposes of this Section 3.1 only to the extent permitted, and subject to such rules regarding the length of any initial
deferral period and subsequent deferral period, if any, established by the Administrator in its sole discretion. The Compensation of such Outside Director or Eligible Employee for a calendar year
shall be reduced in an amount equal to the portion of the Compensation deferred by such Outside Director or Eligible Employee for such calendar year pursuant to such Outside Director's or Eligible
Employee's Initial Election. Such reduction shall be effected on a pro rata basis from each periodic installment payment of such Outside Director's or Eligible Employee's Compensation for the calendar
year (in accordance with the general pay practices of the Participating Company), and credited, as a bookkeeping entry, to such Outside Director's or Eligible Employee's Account in accordance with
Section 5.1. Amounts credited to the Accounts of Outside Directors in the form of Company Stock shall be credited to the Company Stock Fund and credited with income, gains and losses in
accordance with Section 5.2(c). 

        (b)   Subsequent Elections.    Each Participant or Beneficiary shall have the right to elect to defer (or, in limited
cases, accelerate) the time of payment or to change the manner of payment of amounts previously deferred in accordance with the terms of a previously made Initial Election pursuant to the terms of the
Plan by filing a Subsequent Election at the time, to the extent, and in the manner described in this Article 3. 

        3.2.  Filing of Initial Election: General.    An Initial Election shall be made on the form provided by the
Administrator for this purpose. Except as provided in Section 3.3, no such Initial Election shall be effective unless it is filed with the Administrator on or before December 31 of the
calendar year preceding the calendar year to which the Initial Election applies; provided that an Initial Election with respect to Severance Pay shall not be effective unless it is filed within
30 days following the date of written notification to an Eligible Employee from the Administrator or its duly authorized delegate of such Eligible Employee's eligibility to defer Severance Pay. 

        3.3.  Filing of Initial Election by New Key Employees and New Outside Directors.

        (a)   New Key Employees.    Notwithstanding Section 3.1 and Section 3.2, a New Key Employee may elect
to defer all or any portion of his Compensation that he would otherwise be entitled to receive in the calendar year in which the New Key Employee was employed, beginning with the payroll period next
following the filing of an Initial Election with the Administrator and before the close of such calendar year by making and filing the Initial Election with the Administrator within 60 days of
such New Key Employee's date of hire or within 60 days of the date such New Key Employee first becomes eligible to participate in the Plan. Any Initial Election by such New Key Employee for
succeeding calendar years shall be made in accordance with Section 3.1 and Section 3.2. 

        (b)   New Outside Directors.    Notwithstanding Section 3.1 and Section 3.2, an Outside Director may
elect to defer all or any portion of his Compensation that he would otherwise be entitled to receive in the calendar year in which an Outside Director's election as a member of the Board becomes
effective (provided that such Outside Director is not a member of the Board immediately preceding such effective date), beginning with Compensation payable following the filing of an Initial Election
with the Administrator and before the close of such calendar year by making and filing the Initial Election with the Administrator within 60 days of the effective date of such Outside
Director's election. Any Initial Election by such Outside Director for succeeding calendar years shall be made in accordance with Section 3.1 and Section 3.2 

7

 

        3.4.  Calendar Years to which Initial Election May Apply.    A separate Initial Election may be made for each
calendar year as to which an Outside Director or Eligible Employee desires to defer all or any portion of such Outside Director's or Eligible Employee's Compensation. The failure of an Outside
Director or Eligible Employee to make an Initial Election for any calendar year shall not affect such Outside Director's or Eligible Employee's right to make an Initial Election for any other calendar
year. 

        (a)   Initial Election of Distribution Date.    Each Outside Director or Eligible Employee shall, contemporaneously
with an Initial Election, also elect the time of payment of the amount of the deferred Compensation to which such Initial Election relates; provided, however, that, subject to acceleration pursuant to
Section 3.5(e) or (f), Section 3.7, Section 7.1, 7.2, or Article 8, no distribution may commence earlier than January 2nd of the second calendar year beginning after
the date the Initial Election is filed with the Administrator, nor later than January 2nd of the eleventh calendar year beginning after the date the Initial Election is filed with the
Administrator. Further, each Outside Director or Eligible Employee may select with each Initial Election the manner of distribution in accordance with Article 4. 

        3.5.  Subsequent Elections.

        (a)   Active Participants.    Each Active Participant, who has made an Initial Election, or who has made a Subsequent
Election, may elect to change the manner of distribution or defer the time of payment of any part or all of such Participant's Account for a minimum of two and a maximum of ten additional years from
the previously-elected payment date, by filing a Subsequent Election with the Administrator on or before the close of business on June 30 of the calendar year preceding the calendar year in
which the lump-sum distribution or initial installment payment would otherwise be made. The number of Subsequent Elections under this Section 3.5(a) shall not be limited. 

        (b)   Inactive Participants.    The Committee may, in its sole and absolute discretion, permit an Inactive
Participant to make a Subsequent Election to change the manner of distribution, or defer the time of payment of any part or all of such Inactive Participant's Account for a minimum of two years and a
maximum of ten additional years from the previously-elected payment date, by filing a Subsequent Election with the Administrator on or before the close of business on June 30 of the calendar
year preceding the calendar year in which the lump-sum distribution or initial installment payment would otherwise be made. The number of Subsequent Elections under this
Section 3.5(b) shall be determined by the Committee in its sole and absolute discretion. 

        (c)   Surviving Spouses.

        (i)    General Rule.    A Surviving Spouse who is a Deceased Participant's Beneficiary may elect to change the manner
of distribution, or defer the time of payment, of any part or all of such Deceased Participant's Account the payment of which would be made neither within six (6) months after, nor within the
calendar year of, the date of such election. Such election shall be made by filing a Subsequent Election with the Administrator in which the Surviving Spouse shall specify the change in the manner of
distribution or the change in the time of payment, which shall be no less than two nor more than ten years from the previously-elected payment date, or such Surviving Spouse may elect to defer payment
until such Surviving Spouse's death. A Surviving Spouse may make a total of two (2) Subsequent Elections under this Section 3.5(c)(i), with respect to all or any part of the Deceased
Participant's Account. Subsequent Elections pursuant to this Section 3.5(c)(i) may specify different changes with respect to different parts of the Deceased Participant's Account. 

        (ii)   Exception.    Notwithstanding the above Section 3.5(c)(i), a Subsequent Election may be made by a
Surviving Spouse within sixty (60) days of the Deceased Participant's death; provided, however, such election may only be made with respect to amounts which would not be paid under the Deceased
Participant's election as in effect on the date of the Deceased Participant's death until a date which is at least six (6) months from the Deceased Participant's date of death. Such election
shall be made by filing a Subsequent Election with the Administrator in which the Surviving Spouse shall specify the change in the manner of distribution or the change in the time of payment, which 

8

 

shall
be no less than two (2) nor more than ten (10) years from the previously-elected payment date, or such Surviving Spouse may elect to defer payment until such Surviving Spouse's
death. A Surviving Spouse may only make one (1) Subsequent Election under this Section 3.5(c)(ii) with respect to all or any part of the Deceased Participant's Account. Such
Surviving Spouse may, however, make one additional Subsequent Election under Section 3.5(c)(i) in accordance with the terms of Section 3.5(c)(i). The one (1) Subsequent
Election permitted under this Section 3.5(c)(ii) may specify different changes for different parts of the Deceased Participant's Account. 

        (d)   Beneficiary of a Deceased Participant Other Than a Surviving Spouse.

        (i)    General Rule.    A Beneficiary of a Deceased Participant (other than a Surviving Spouse) may elect to change
the manner of distribution, or defer the time of payment, of any part or all of such Deceased Participant's Account the payment of which would be made neither within six (6) months after, nor
within the calendar year of, the date of such election. Such election shall be made by filing a Subsequent Election with the Administrator in which the Beneficiary shall specify the change in the
manner of distribution or the change in the time of payment, which shall be no less than two (2) nor more than ten (10) years from the previously-elected payment date. A Beneficiary may
make one (1) Subsequent Election under this Section 3.5(d)(i), with respect to all or any part of the Deceased Participant's Account. Subsequent Elections pursuant to this
Section 3.5(d)(i) may specify different changes for different parts of the Deceased Participant's Account. 

        (ii)   Exception.    Notwithstanding the above Section 3.5(d)(i), a Subsequent Election may be made by a
Beneficiary within sixty (60) days of the Deceased Participant's death; provided, however, such election may only be made with respect to amounts which would not be paid under the Deceased
Participant's election as in effect on the date of the Deceased Participant's death until a date which is at least six (6) months from the Deceased Participant's date of death. Such election
shall be made by filing a Subsequent Election with the Administrator in which the Beneficiary shall specify the change in the manner of distribution or the change in the time of payment, which shall
be no less than two (2) nor more than ten (10) years from the previously-elected payment date. A Beneficiary may make one (1) Subsequent Election under this
Section 3.5(d)(ii) with respect to all or any part of the Deceased Participant's Account. Subsequent Elections pursuant to this Section 3.5(d)(ii) may specify different
changes for different parts of the Deceased Participant's Account. 

        (e)   Other Deferral and Acceleration by a Beneficiary.    Any Beneficiary (other than a Surviving Spouse who has
made a Subsequent Election under Section 3.5(c) or a Beneficiary who has made a Subsequent Election under Section 3.5(d)) may elect to change the manner of distribution from the manner
of distribution in which payment of a Deceased Participant's Account would otherwise be made, and 

        (i)    Defer
the time of payment of any part or all of the Deceased Participant's Account or deceased Beneficiary's Account for one additional year from the date a payment
would otherwise be made or begin (provided that if a Subsequent Election is made pursuant to this Section 3.5(e)(i), the Deceased Participant's Account or deceased Beneficiary's Account shall
be in all events distributed in full on or before the fifth anniversary of the Deceased Participant's or a deceased Beneficiary's death); or 

        (ii)   Accelerate
the time of payment of a Deceased Participant's Account or deceased Beneficiary's Account from the date or dates that payment would otherwise be made or
begin to the date that is the later of (A) six (6) months after the date of the Deceased Participant's or deceased Beneficiary's death and (B) January 2nd of the calendar
year beginning after the Deceased Participant's or deceased Beneficiary's death, provided that if a Subsequent Election is made pursuant to this Section 3.5(e)(ii), the Deceased Participant's
Account or deceased Beneficiary's Account shall be distributed in full on such accelerated payment date. 

9

  

A Subsequent Election pursuant to this Section 3.5(e) must be filed with the Administrator within one hundred and twenty (120) days following the Deceased Participant's or deceased
Beneficiary's death. One and only one Subsequent Election shall be permitted pursuant to this Section 3.5(e) with respect to a Deceased Participant's Account or deceased Beneficiary's Account,
although if such Subsequent Election is filed pursuant to Section 3.5(e)(i), it may specify different changes for different parts of the Account. 

        (f)    Disabled Participant.    A Disabled Participant (who has not been permitted to make a Subsequent Election under
Section 3.5(h)) may elect to change the form of distribution from the form of distribution that the payment of the Disabled Participant's Account would otherwise be made and may elect to
accelerate the time of payment of the Disabled Participant's Account from the date payment would otherwise be made to January 2nd of the calendar year beginning after the Participant became
disabled. A Subsequent Election pursuant to this Section 3.5(f) must be filed with the Administrator on or before the close of business on the later of (i) the June 30 following
the date the Participant becomes a Disabled Participant if the Participant becomes a Disabled Participant on or before May 1 of a calendar year; (ii) the 60th day following the date the
Participant becomes a Disabled Participant if the Participant becomes a Disabled Participant after May 1 and before November 2 of a calendar year or (iii) the December 31
following the date the Participant becomes a Disabled Participant if the Participant becomes a Disabled Participant after November 1 of a calendar year. 

        (g)   Retired Participant.    A Retired Participant (who has not been permitted to make a Subsequent Election under
Section 3.5(h)) may elect to change the form of distribution from the form of distribution that payment of the Retired Participant's Account would otherwise be made and may elect to defer the
time of payment of the Retired Participant's Account for a minimum of two additional years from the date payment would otherwise be made (provided that if a Subsequent Election is made pursuant to
this Section 3.5(g), the Retired Participant's Account shall be distributed in full on or before the fifth anniversary of the Retired Participant's Normal Retirement). A Subsequent Election
pursuant to this Section 3.5(g) must be filed with the Administrator on or before the close of business on the later of (i) the June 30 following the Participant's Normal
Retirement on or before May 1 or a calendar year, (ii) the 60th day following the Participant's Normal Retirement after May 1 and before November 2 of a calendar year or
(iii) the December 31 following the Participant's Normal Retirement after November 1 of a calendar year. 

        (h)   Retired Participants and Disabled Participants.    The Committee may, in its sole and absolute discretion,
permit a Retired Participant or a Disabled Participant to make a Subsequent Election to change the form of distribution that the payment of the Retired Participant's account would otherwise be made or
to defer the time of payment of any part or all of such Retired or Disabled Participant's Account for a minimum of two years and a maximum of ten additional years from the previously-elected payment
date, by filing a Subsequent Election with the Administrator on or before the close of business on June 30 of the calendar year preceding the calendar year in which the lump-sum
distribution or initial installment payment would otherwise be made. The number of Subsequent Elections under this Section 3.5(h) shall be determined by the Committee in its sole and absolute
discretion. 

        (i)    Most Recently Filed Initial Election or Subsequent Election Controlling.    Subject to acceleration pursuant to
Section 3.5(e) or 3.5(f), Section 3.7 or Section 7.1, no distribution of the amounts deferred by a Participant for any calendar year shall be made before the payment date
designated by the Participant or Beneficiary on the most recently filed Initial Election or Subsequent Election with respect to each deferred amount. 

        3.6.  Distribution in Full Upon Terminating Event.    The Company shall give Participants at least thirty
(30) days notice (or, if not practicable, such shorter notice as may be reasonably practicable) prior to the anticipated date of the consummation of a Terminating Event. The Committee may, in
its discretion, provide in such notice that notwithstanding any other provision of the Plan or the terms of any Initial Election or Subsequent Election, upon the consummation of a Terminating Event,
the Account balance of each Participant shall be distributed in full and any outstanding Initial Elections or Subsequent Elections shall be revoked. 

10

 

        3.7.  Withholding and Payment of Death Taxes.

        (a)   Notwithstanding
any other provisions of this Plan to the contrary, including but not limited to the provisions of Article 3 and Article 7, or any Initial
or Subsequent Election filed by a Deceased Participant or a Deceased Participant's Beneficiary (for purposes of this Section, the "Decedent"), the
Administrator shall apply the terms of Section 3.7(b) to the Decedent's Account unless the Decedent affirmatively has elected, in writing, filed with the Administrator, to waive the application
of Section 3.7(b). 

        (b)   Unless
the Decedent affirmatively has elected, pursuant to Section 3.7(a), that the terms of this Section 3.7(b) not apply: 

        (i)    The
Administrator shall prohibit the Decedent's Beneficiary from taking any action under any of the provisions of the Plan with regard to the Decedent's Account other
than the Beneficiary's making of a Subsequent Election pursuant to Section 3.5; 

        (ii)   The
Administrator shall defer payment of the Decedent's Account until the later of the Death Tax Clearance Date and the payment date designated in the Decedent's
Initial Election or Subsequent Election; 

        (iii)  The
Administrator shall withdraw from the Decedent's Account such amount or amounts as the Decedent's Personal Representative shall certify to the Administrator as
being necessary to pay the Death Taxes apportioned against the Decedent's Account; the Administrator shall remit the amounts so withdrawn to the Personal Representative, who shall apply the same to
the payment of the Decedent's Death Taxes, or
the Administrator may pay such amounts directly to any taxing authority as payment on account of Decedent's Death Taxes, as the Administrator elects; 

        (iv)  If
the Administrator makes a withdrawal from the Decedent's Account to pay the Decedent's Death Taxes and such withdrawal causes the recognition of income to the
Beneficiary, the Administrator shall pay to the Beneficiary from the Decedent's Account, within thirty (30) days of the Beneficiary's request, the amount necessary to enable the Beneficiary to
pay the Beneficiary's income tax liability resulting from such recognition of income; additionally, the Administrator shall pay to the Beneficiary from the Decedent's Account, within thirty
(30) days of the Beneficiary's request, such additional amounts as are required to enable the Beneficiary to pay the Beneficiary's income tax liability attributable to the Beneficiary's
recognition of income resulting from a distribution from the Decedent's Account pursuant to this Section 3.7(b)(iv); 

        (v)   Amounts
withdrawn from the Decedent's Account by the Administrator pursuant to Sections 3.7(b)(iii) and 3.7(b)(iv) shall be withdrawn from the portions of
Decedent's Account having the earliest distribution dates as specified in Decedent's Initial Election or Subsequent Election; and 

        (vi)  Within
a reasonable time after the later to occur of the Death Tax Clearance Date and the payment date designated in the Decedent's Initial Election or Subsequent
Election, the Administrator shall pay the Decedent's Account to the Beneficiary. 

 
 

ARTICLE 4—MANNER OF DISTRIBUTION    
    

        4.1.  Manner of Distribution.

        (a)   Amounts
credited to an Account shall be distributed, pursuant to an Initial Election or Subsequent Election in either (i) a lump sum payment or
(ii) substantially equal annual installments over a five (5), ten (10) or fifteen (15) year period or (iii) substantially equal monthly installments over a period not
exceeding fifteen (15) years. Installment distributions payable in the form of shares of Company Stock shall be rounded to the nearest whole share. 

11

 

        (b)   Notwithstanding
any Initial Election or Subsequent Election or any other provision of the Plan to the contrary: 

        (i)    distributions
pursuant to Initial Elections or Subsequent Elections shall be made in one lump sum payment unless the portion of a Participant's Account subject to
distribution, as of both the date of the Initial Election or Subsequent Election and the benefit commencement date, has a value of more than $10,000; 

        (ii)   following
a Participant's termination of employment for any reason, if the amount credited to the Participant's Account has a value of $25,000 or less, the
Administrator may, in its sole discretion, direct that such amount be distributed to the Participant (or Beneficiary, as applicable) in one lump sum payment; provided, however, that this
Section 4.1(b)(ii) shall not apply to any amount credited to a Participant's Account until the expiration of the deferral period applicable under any Initial Election or Subsequent
Election in effect as of April 29, 2002. 

        4.2.    Determination of Account Balances for Purposes of Distribution.    The amount of any distribution made
pursuant to Section 4.1 shall be based on the balances in the Participant's Account on the date of distribution. For this purpose, the balance in a Participant's Account shall be calculated by
crediting income, gains and losses under the Company Stock Fund and Income Fund, as applicable, through the date immediately preceding the date of distribution. 

        4.3.    Plan-to-Plan Transfers.    The Administrator may delegate its authority to arrange for
plan-to-plan transfers as described in this Section 4.3 to an officer of the Company or committee of two or more officers of the Company. 

        (a)   The
Administrator may, with a Participant's consent, make such arrangements as it may deem appropriate to transfer the Company's obligation to pay benefits with respect
to such Participant which have not become payable under this Plan, to another employer, whether through a deferred compensation plan, program or arrangement sponsored by such other employer or
otherwise, or to another deferred compensation plan, program or arrangement sponsored by the Company or an Affiliate. Following the completion of such transfer, with respect to the benefit
transferred, the Participant shall have no further right to payment under this Plan. 

        (b)   Pursuant
to Q-A 19(c) of IRS Notice 2005-1, to the extent provided by the Committee or its
delegate, on or before December 31, 2005, a Participant may, with respect to all or any portion of his or her Account, make new payment elections as to the form and timing of payment of such
amounts as may be permitted under the Comcast Corporation 2005 Deferred Compensation Plan, provided that following the completion of such new payment election, such amounts shall not be treated as
grandfathered benefits under this Plan, but instead shall be treated as non-grandfathered benefits, subject to the rules of the Comcast Corporation 2005 Deferred Compensation Plan. 

 
 

ARTICLE 5—BOOK ACCOUNTS    
    

        5.1.    Deferred Compensation Account.    A deferred Compensation Account shall be established for each Outside
Director and Eligible Employee when such Outside Director or Eligible Employee becomes a Participant. Compensation deferred pursuant to the Plan shall be credited to the Account on the date such
Compensation would otherwise have been payable to the Participant. 

        5.2.    Crediting of Income, Gains and Losses on Accounts.    

        (a)    In General.    Except as otherwise provided in this Section 5.2, the Administrator shall credit income,
gains and losses with respect to each Participant's Account as if it were invested in the Income Fund. 

        (b)    Investment Fund Elections.    

        (i)    Except
for amounts credited to the Accounts of Participants who are Outside Directors who have elected to defer the receipt of Compensation payable in the form of
Company Stock, all amounts 

12

 

credited
to Participants' Accounts on and after July 9, 2002 shall be credited with income, gains and losses as if it were invested in the Income Fund. Each Participant who, as of
July 9, 2002, has all or any portion of his or her Account credited with income, gains and losses as if it were invested in the Company Stock Fund may direct, as of any business day, to have
all or any portion of the amount credited to the Company Stock Fund deemed transferred to the Income Fund, in accordance with procedures established by the Administrator from time to time. No portion
of the Participant's Account credited to the Income Fund may be deemed transferred to the Company Stock Fund. 

        (ii)   With
respect to amounts credited to Participants' Accounts through July 9, 2002, investment fund elections shall continue in effect until revoked or superseded.
Except for amounts credited to the Accounts of Participants who are Outside Directors who have elected to defer the receipt of Compensation payable in the form of Company Stock, all amounts credited
to Participants' Accounts on and after July 9, 2002 shall be deemed to be invested in the Income Fund. Except for amounts described in Section 5.2(c), notwithstanding any investment fund
election to the contrary, as of the valuation date (as determined under Section 4.2) for the distribution of all or any portion of a Participant's Account that is subject to distribution in the
form of installments described in Section 4.1(a) or (b), such Account, or portion thereof, shall be deemed invested in the Income Fund (and transferred from the Company Stock Fund to the Income
Fund, to the extent necessary) until such Account, or portion thereof, is distributed in full. 

        (iii)  Investment
fund elections under this Section 5.2(b) shall be effective as soon as practicable following the Participant's election, pursuant to procedures
established by the Administrator. An Active Participant may not make an investment fund election with respect to Compensation to be deferred for a calendar year. 

        (iv)  Except
for amounts described in Section 5.2(c), if a Participant ceases to continue in service as an Active Participant, then, notwithstanding any election to
the contrary, such Participant's Account shall be deemed invested in the Income Fund, effective as of the first day of any calendar year beginning after such Participant ceases to continue in service
as an Active Participant. 

        (c)    Outside Director Stock Fund Credits.    Amounts credited to the Accounts of Outside Directors in the form of
Company Stock shall be credited with income, gains and losses as if they were invested in the Company Stock Fund. No portion of such Participant's Account attributable to amounts credited after
December 31, 2002 to the Company Stock Fund may be deemed transferred to the Income Fund. Distributions of amounts credited to the Company Stock Fund with respect to Outside Directors' Accounts
after December 31, 2002 shall be distributable in the form of Company Stock, rounded to the nearest whole share. 

        (d)    Timing of Credits.    Compensation deferred pursuant to the Plan shall be deemed invested in the Income Fund on
the date such Compensation would otherwise have been payable to the Participant. Accumulated Account balances subject to an investment fund election under Section 5.2(b) shall be deemed
invested in the applicable investment fund as of the effective date of such election. The value of amounts deemed invested in the Company Stock Fund shall be based on hypothetical purchases and sales
of Company Stock at Fair Market Value as of the effective date of an investment election 

        5.3.    Status of Deferred Amounts.    Regardless of whether or not the Company is a Participant's employer, all
Compensation deferred under this Plan shall continue for all purposes to be a part of the general funds of the Company. 

        5.4.    Participants' Status as General Creditors.    Regardless of whether or not the Company is a Participant's
employer, an Account shall at all times represent a general obligation of the Company. The Participant shall be a general creditor of the Company with respect to this obligation, and shall not have a
secured or preferred position with respect to the Participant's Accounts. Nothing contained herein shall be deemed to create an escrow, trust, custodial account or fiduciary relationship of any kind.
Nothing contained herein shall be construed to eliminate any priority or preferred position of a Participant in a bankruptcy matter with respect to claims for wages. 

13

 
 
 

ARTICLE 6—NO ALIENATION OF BENEFITS; PAYEE DESIGNATION    
    

        Except as otherwise required by applicable law, the right of any Participant or Beneficiary to any benefit or interest under any of the provisions of this Plan
shall not be subject to encumbrance, attachment, execution, garnishment, assignment, pledge, alienation, sale, transfer, or anticipation, either by the voluntary or involuntary act of any Participant
or any Participant's Beneficiary or by operation of law, nor shall such payment, right, or interest be subject to any other legal or equitable process. However, subject to the terms and conditions of
the Plan, a Participant or Beneficiary may direct that any amount payable pursuant to an Initial Election or a Subsequent Election on any date designated for payment be paid to any person or persons
or legal entity or entities, including, but not limited to, an organization exempt from federal income tax under section 501(c)(3) of the Code, instead of to the Participant or Beneficiary.
Such a payee designation shall be provided to the Administrator by the Participant or Beneficiary in writing on a form provided by the Administrator, and shall not be effective unless it is provided
immediately preceding the time of payment. The Company's payment pursuant to such a payee designation shall relieve the Company and its Affiliates of all liability for such payment. 

 
 

ARTICLE 7—DEATH OF PARTICIPANT    
    

        7.1.    Death of Participant.    A Deceased Participant's Account shall be distributed in accordance with the last
Initial Election or Subsequent Election made by the Deceased Participant before the Deceased Participant's death, unless the Deceased Participant's Surviving Spouse or other Beneficiary timely elects
to accelerate or defer the time or change the manner of payment pursuant to Section 3.5. 

        7.2.    Designation of Beneficiaries.    Each Participant and Beneficiary shall have the right to designate one or
more Beneficiaries to receive distributions in the event of the Participant's or Beneficiary's death by filing with the Administrator a Beneficiary designation on the form provided by the
Administrator for such purpose. The designation of a Beneficiary or Beneficiaries may be changed by a Participant or Beneficiary at any time prior to such Participant's or Beneficiary's death by the
delivery to the Administrator of a new Beneficiary designation form. 

 
 

ARTICLE 8—HARDSHIP DISTRIBUTIONS    
    

        Notwithstanding the terms of an Initial Election or Subsequent Election, if, at the Participant's request, the Board determines that the Participant has incurred
a Hardship, the Board may, in its discretion, authorize the immediate distribution of all or any portion of the Participant's Account. 

 
 

ARTICLE 9—INTERPRETATION    
    

        9.1.    Authority of Committee.    The Committee shall have full and exclusive authority to construe, interpret and
administer this Plan and the Committee's construction and interpretation thereof shall be binding and conclusive on all persons for all purposes. 

        9.2.    Claims Procedure.    If an individual (hereinafter referred to as the  "Applicant," which reference shall include the legal
representative, if any, of the individual) does not receive timely payment of benefits to which the
Applicant believes he is entitled under the Plan, the Applicant may make a claim for benefits in the manner hereinafter provided. 

        An
Applicant may file a claim for benefits with the Administrator on a form supplied by the Administrator. If the Administrator wholly or partially denies a claim, the
Administrator shall provide the Applicant with a written notice stating: 

        (a)   The
specific reason or reasons for the denial; 

        (b)   Specific
reference to pertinent Plan provisions on which the denial is based; 

        (c)   A
description of any additional material or information necessary for the Applicant to perfect the claim and an explanation of why such material or information is
necessary; and 

14

 

        (d)   Appropriate
information as to the steps to be taken in order to submit a claim for review. 

Written
notice of a denial of a claim shall be provided within 90 days of the receipt of the claim, provided that if special circumstances require an extension of time for processing the claim,
the Administrator may notify the Applicant in writing that an additional period of up to 90 days will be required to process the claim. 

        If
the Applicant's claim is denied, the Applicant shall have 60 days from the date of receipt of written notice of the denial of the claim to request a review of the denial of the
claim by the Administrator. Request for review of the denial of a claim must be submitted in writing. The Applicant shall have the right to review pertinent documents and submit issues and comments to
the Administrator in writing. The Administrator shall provide a written decision within 60 days of its receipt of the Applicant's request for review, provided that if special circumstances
require an extension of time for processing the review of the Applicant's claim, the Administrator may notify the Applicant in writing that an additional period of up to 60 days shall be
required to process the Applicant's request for review. 

        It
is intended that the claims procedures of this Plan be administered in accordance with the claims procedure regulations of the Department of Labor set forth in 29 CFR §
2560.503-1. 

        Claims
for benefits under the Plan must be filed with the Administrator at the following address: 

Comcast
Corporation

1500 Market Street

Philadelphia, PA 19102

Attention: General Counsel 

 
 

ARTICLE 10—AMENDMENT OR TERMINATION    
    

        10.1.    Amendment or Termination.    Except as otherwise provided by Section 10.2, the Company, by action of
the Board or by action of the Committee, shall have the right at any time, or from time to time, to amend or modify this Plan. The Company, by action of the Board, shall have the right to terminate
this Plan at any time. 

        10.2.    Amendment of Rate of Credited Earnings.    No amendment shall change the Applicable Interest Rate with
respect to the portion of a Participant's Account that is attributable to an Initial Election or Subsequent Election made with respect to Compensation earned in a calendar year and filed with the
Administrator before the date of adoption of such amendment by the Board. For purposes of this Section 10.2, a Subsequent Election to defer the payment of part or all of an Account for an
additional period after a previously-elected payment date (as described in Section 3.5) shall be treated as a separate Subsequent Election from any previous Initial Election or Subsequent
Election with respect to such Account. 

 
 

ARTICLE 11—WITHHOLDING OF TAXES    
    

        Whenever the Participating Company is required to credit deferred Compensation to the Account of a Participant, the Participating Company shall have the right to
require the Participant to remit to the Participating Company an amount sufficient to satisfy any federal, state and local withholding tax requirements prior to the date on which the deferred
Compensation shall be deemed credited to the Account of the Participant, or take any action whatever that it deems necessary to protect its interests with respect to tax liabilities. The Participating
Company's obligation to credit deferred Compensation to an Account shall be conditioned on the Participant's compliance, to the Participating Company's satisfaction, with any withholding requirement.
To the maximum extent possible, the Participating Company shall satisfy all applicable withholding tax requirements by withholding tax from other Compensation payable by the Participating Company to
the Participant, or by the Participant's delivery of cash to the Participating Company in an amount equal to the applicable withholding tax. 

15

 
 
 

ARTICLE 12—MISCELLANEOUS PROVISIONS    
    

        12.1.    No Right to Continued Employment.    Nothing contained herein shall be construed as conferring upon any
Participant the right to remain in service as an Outside Director or in the employment of a Participating Company as an executive or in any other capacity. 

        12.2.    Expenses of Plan.    All expenses of the Plan shall be paid by the Participating Companies. 

        12.3.    Gender and Number.    Whenever any words are used herein in any specific gender, they shall be construed as
though they were also used in any other applicable gender. The singular form, whenever used herein, shall mean or include the plural form, and vice
versa, as the context may require. 

        12.4.    Law Governing Construction.    The construction and administration of the Plan and all questions pertaining
thereto, shall be governed by the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), and other applicable federal law and, to the
extent not governed by federal law, by the laws of the Commonwealth of Pennsylvania. 

        12.5.    Headings Not a Part Hereof.    Any headings preceding the text of the several Articles, Sections,
subsections, or paragraphs hereof are inserted solely for convenience of reference and shall not constitute a part of the Plan, nor shall they affect its meaning, construction, or effect. 

        12.6.    Severability of Provisions.    If any provision of this Plan is determined to be void by any court of
competent jurisdiction, the Plan shall continue to operate and, for the purposes of the jurisdiction of that court only, shall be deemed not to include the provision determined to be void. 

 
 

ARTICLE 13—EFFECTIVE DATE    
    

        The effective date of this amendment and restatement of the Plan shall be February 16, 2005. 

        IN
WITNESS WHEREOF, COMCAST CORPORATION has caused this Plan to be executed by its officers thereunto duly authorized, and its corporate seal to be affixed hereto, as of the 16th day of
February, 2005. 

	 	 	COMCAST CORPORATION
	

 	
 	
BY:	

 
	 	 	 	

	

 	
 	

ATTEST:
	

 	
 	

16

QuickLinks

COMCAST CORPORATION 2002 DEFERRED COMPENSATION PLAN

ARTICLE 1—COVERAGE OF PLAN

ARTICLE 2—DEFINITIONS

ARTICLE 3—INITIAL AND SUBSEQUENT ELECTIONS

ARTICLE 4—MANNER OF DISTRIBUTION

ARTICLE 5—BOOK ACCOUNTS

ARTICLE 6—NO ALIENATION OF BENEFITS; PAYEE DESIGNATION

ARTICLE 7—DEATH OF PARTICIPANT

ARTICLE 8—HARDSHIP DISTRIBUTIONS

ARTICLE 9—INTERPRETATION

ARTICLE 10—AMENDMENT OR TERMINATION

ARTICLE 11—WITHHOLDING OF TAXES

ARTICLE 12—MISCELLANEOUS PROVISIONS

ARTICLE 13—EFFECTIVE DATE

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