Document:

Exhibit 10.2

 

[Form of Executive Officer Noncompetition Agreement]

 

[Danaher letterhead]

 

NONCOMPETITION AGREEMENT

 

Danaher Corporation, an “at will” employer, believes that
recruiting and retaining the very best people to work in its highly competitive
businesses means treating them fairly, rewarding their contributions, and
thereby establishing a strong partnership for our collective well-being and
continued success.  Employment at Danaher
and its divisions typically provides associates with specialized and unique
knowledge and confidential information, which, if used in competition with
Danaher, would cause harm to Danaher.  As
such, it is reasonable to expect a commitment from our associates that protects
Danaher’s interests and therefore their own interests.  You are encouraged to read and sign this
Agreement in the spirit intended: our collective long-term growth and success.

 

Danaher Corporation, a Delaware corporation headquartered at 2099 Pennsylvania Avenue,
12th Floor, Washington, D.C. 20006 (“the Company” or
“Danaher”) and
                                      
who resides at
                                      (“the
Associate”) agree as follows:

 

1.                                       General.  The Company employs the
Associate and the Associate accepts employment to render services on behalf of
the Company, subject to the supervision and direction of the President of the
Company or his duly authorized designee. Said employment shall continue until
the date on which the employment relationship is terminated at the will of
either party.

 

2.                                       Noncompetition and nonsolicitation.

 

(a)                                  During the Associate’s employment with the
Company, the Associate shall not directly or indirectly:

 

(A)                              perform services of any nature or in any capacity
whatsoever for any business, person, or entity which is engaged in product
lines which compete with and/or which is in competition with Danaher or any
subsidiary of Danaher;

 

(B)                                engage in any product lines which compete with
Danaher or any subsidiary of Danaher;

 

(C)                                except on behalf of Danaher or any subsidiary
of Danaher, sell, offer to sell or solicit any orders for the purchase of any
products and/or services which are the same as or similar to those sold by
Danaher or any subsidiary of Danaher, to or from any customer, person or
entity; or

 

(D)                               otherwise perform any services, sell any products or
engage in any activities in any capacity whatsoever which are in competition
with Danaher or any subsidiary of Danaher.

 

(b)                                 For a 12-month period following the
termination of the Associate’s employment with the Company, whether the
termination is voluntary or involuntary, the Associate will not, directly or
indirectly, on behalf of himself or herself or for any entity, business or
person other than, Danaher or any subsidiary of Danaher:

 

(A)                              compete with Danaher anywhere in the United States
(the “Restricted Area”), or

 

 

(i)                                     accept employment (as a director, officer, employee, independent contractor,
representative, consultant, member or otherwise) with a business, entity
(including without limitation any business or entity started by the Associate)
or person that competes directly or indirectly with any product or service of the Company within the Restricted Area,

 

(ii)                                  provide any services similar to the services
the Associate provided to or on behalf of the Company, or any other advice or
consulting services, to a business, entity (including without limitation any
business or entity started by the Associate) or person that competes directly
or indirectly with any product or
service of the Company within the Restricted Area, or

 

(iii)                               invest in or otherwise hold any interest in (except for passive ownership of up to 3% of the outstanding
capital stock of any publicly traded corporation, so long as the Associate complies with clauses (i) and (ii) above), a business, entity (including
without limitation any business or entity started by the Associate) or person
that competes directly or indirectly with any product or service of the Company within the Restricted Area.

 

(B)           sell, offer to sell,
or solicit any orders for the purchase of, to or from any customer, any
products and/or services similar to those upon which or with which the
Associate worked, or about which the Associate acquired knowledge, while
employed by Danaher or any subsidiary of Danaher. For purposes of this
Agreement, the term “customer” means any person, business or entity, or any
person, business, or entity subject to the control of any such person, business
or entity, that during the 24 months immediately preceding termination of
Associate’s employment with the Company:

 

(i)            sought,
inquired about, or purchased any products or services of the Company or of any
Danaher entity for whom Associate worked during such 24 month period (the
Company and any such other Danaher entity or entities are referred to as the
“Employing Companies”);

 

(ii)           contacted any of the Employing
Companies for the purpose of seeking or purchasing any products or services of
any of the Employing Companies;

 

(iii)          was contacted by any of the Employing Companies for the
purpose of selling its products or services; and/or

 

(iv)          received a written and/or verbal
sales proposal from any of the Employing Companies.

 

(C)                                use, incorporate or otherwise create any
business entity or organization or domain name using, any name confusingly
similar to the name of Danaher Corporation or of any subsidiary of Danaher, or
any other name under which any of those entities does business.

 

3.                                       Nonpiracy.  During the Associate’s
employment and for a 12-month period following the termination of the Associate’s
employment with the Company, whether the termination is voluntary or
involuntary, the Associate will not directly or indirectly, on behalf of
himself or herself, or for any other entity, business, or person:

 

(1)                                  hire, entice, induce, solicit or attempt to
hire, entice, induce or solicit any employee of the Company to leave the
Company’s employ (or the employ of any subsidiary of the Company, as
applicable) or cause any employee of the Company to become employed in any
business that is directly or indirectly competitive with the Company for any
reason whatsoever,

 

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(2)                                  assist or encourage in any manner, including
without limitation through the providing of advice or information, any employee
of the Company to leave the Company’s employ (or the employ of any subsidiary
of the Company, as applicable), or

 

(3)                                  suggest or recommend in any manner, including
through the providing of advice or information, that any business, person or
entity hire, entice, induce, solicit, cause or attempt to hire, entice, induce
or solicit or cause any employee of the Company to leave the Company’s (or the
employ of any subsidiary of the Company, as applicable).

 

For
purposes of this Agreement, the term “employee of the Company” shall include
each person who as of the date of termination of the Associate’s employment is,
or at any time within the 6-month period preceding such date was, (1) employed
by Danaher or any of its subsidiaries whether on a full-time or part-time basis,
or (2) providing full-time services to, or working as an independent contractor
for, Danaher or any of its subsidiaries.

 

4.                                       Nondisclosure.

 

(a)                                  The Associate agrees with the Company that he
or she will not at any time during the Associate’s employment by the Company or
at any time after any termination of said employment, whether it be voluntary
or involuntary, except in performing his or her employment duties to the
Company or any affiliate of the Company under this Agreement, directly or
indirectly, use, disclose, or publish, or knowingly or negligently permit
others not so authorized to use, disclose, or publish, (1) any information,
data or other assets or property of the Company or any of its affiliates, in
whatever form, including without limitation the Danaher Business System and any
information relating to any current or former employee of the Company, or (2)
without limiting the foregoing, any Confidential Information that the Associate
may learn or become aware of, or may have learned or become aware of, because
of the Associate’s prior or continuing employment, ownership, or association
with the Company or any predecessors or affiliates thereof, or use, or
knowingly or negligently permit others not so authorized to use, any such
information in a manner detrimental to the interests of the Company or any
affiliates thereof.

 

(b)                                 The Associate agrees not to use in working
for the Company or any of its affiliates and not to disclose to the Company or
any affiliate thereof any trade secrets or other information the Associate does
not have the right to use or disclose and that the Company and its affiliates
are not free to use without liability of any kind.  The Associate agrees to inform the Company
promptly in writing of any patents, copyrights, trademarks, or other
proprietary or intellectual property rights known to the Associate that the
Company or any of its affiliates might violate because of information provided
by the Associate.

 

(c)                                  The Associate confirms that all assets and
properties of the Company and its affiliates, including without limitation
Confidential Information, is and must remain the exclusive property of the
Company or the relevant affiliate thereof. 
All such assets and property, including without limitation all office
equipment (including computers) the Associate receives from the Company or any
affiliate thereof in the course of the Associate’s employment and all business
records, business papers, and business documents the Associate keeps or
creates, whether on digital media or otherwise, in the course of the
Associate’s employment relating to the Company or any affiliate thereof, must
be and remain the assets and property of the Company or the relevant
affiliate.  Upon the termination of the
Associate’s employment with the Company, whether it be voluntary or
involuntary, whenever that termination of employment may occur, or upon the
Company’s request at any time, the Associate must promptly deliver to the
Company or to the relevant affiliate all such assets and property, including
without limitation any such office equipment (including computers) and any
Confidential Information or other records or documents (written or otherwise),
and any copies, excerpts, summaries or compilations of the foregoing, made by
the Associate or that came into the Associate’s possession during the
Associate’s employment.  The Associate
agrees that he or she will not retain any such assets or property, including
without limitation copies, excerpts, summaries, or compilations of the
foregoing information, records and documents.

 

3

 

(d)                                 “Confidential Information” includes, without
limitation, any matters protected under the Uniform Trade Secrets Act and any
information that neither the Company nor any of its affiliates has previously
disclosed to the public with respect to the present or future business of the
Company or of any of its affiliates, including their respective operations,
services, products, research, inventions, invention disclosures, discoveries,
drawings, designs, plans, processes, models, technical information, facilities,
methods, systems, trade secrets, copyrights, software, source code, object
code, patent applications, procedures, manuals, specifications, any other
intellectual property, confidential reports, price lists, pricing formulas,
customer lists, financial information (including the revenues, costs, or
profits associated with any products or services), Talent Reviews and
Organizational Plans, business plans, information regarding all or any portion
of the Danaher Business System, lease structure, projections, prospects,
opportunities or strategies, acquisitions or mergers, advertising or
promotions, personnel matters, legal matters,any other confidential or proprietary information, and any other
information not generally known outside the Company and its affiliates that may
be of value to the Company or any of its affiliates, but excludes any
information already properly in the public domain.  “Confidential Information” also includes,
without limitation, confidential and proprietary information and trade secrets
that third parties entrust to the Company or any of its affiliates in
confidence.

 

(e)                                  The Associate understands and agrees that the
rights and obligations set forth in this Nondisclosure
section will continue indefinitely and will survive termination of the
Associate’s employment with the Company.

 

5.             Works-made-for-hire and
Intellectual Property.

 

(a)                                  The Associate agrees that all records (in
whatever media), written works, documents, papers, notebooks, drawings,
designs, technical information, source code, object code, algorithms,
processes, methods, ideas, formulas, inventions (whether patentable or not),
invention disclosures, discoveries, improvements, other copyrightable or
protected works, or any other intellectual property, developed, conceived,
acquired, created, authored, reduced to practice, from which derivative works
are prepared, made, invented, or discovered by the Associate (whether or not
during usual working hours, and whether individually or jointly with others)
that relate to, result from or are suggested by any work or task performed by
the Associate for or on behalf of the Company or any affiliate thereof, or that
arise from the use or assistance of the facilities, materials, personnel, or
Confidential Information of the Company or any affiliate thereof, or that
otherwise relate to the actual or anticipated research, development or business
of the Company or any affiliate thereof, will be and remain the absolute
property of the Company (or the relevant affiliate thereof), as will all the
worldwide patent, copyright, trademark, service mark and trade secret rights,
any associated registrations, applications, renewals, extensions,
continuations, continuations-in-part, requests for continued examination,
divisions, or reissues thereof or any foreign equivalents thereof, and all
other intellectual property rights relating to the foregoing (all items
referred to in this sentence are collectively referred to as the “Intellectual
Property”).  The Associate irrevocably
and unconditionally waives all rights, wherever in the world enforceable, that
vest in the Associate (whether before, on, or after the date of this Agreement)
in connection with any such Intellectual Property in the course of the
Associate’s employment with the Company, any affiliate thereof or any
predecessor of any of the foregoing.  The
Associate recognizes all such Intellectual Property constitutes “works made for
hire” for which the Company retains all rights, title, and interest to any
underlying rights, including copyright protections.  If
for any reason any such Intellectual Property is not deemed to be a “work made
for hire,” consistent with the undertakings below, the Associate hereby assigns
all rights, title and interest in any such Intellectual Property to the Company
(or the applicable affiliate thereof, as directed by the Company).

 

(b)                                 The Associate will promptly disclose, and
hereby grants, and assigns all rights, title, and interest in all Intellectual
Property, to the Company (or the applicable affiliate thereof, as specified by
the Company) for its or their sole use and benefit.  At all times, both during and after the
Associate’s employment by the Company, the Associate agrees to assist the
Company in taking the proper steps, including executing any required documents,
to obtain patents, copyrights or other legal protection for the Intellectual
Property and to assign such Intellectual Property and the rights to any
applications associated therewith to the Company, if the Company so desires,
but all at the Company’s direction and expense. 
At all times, both during and after the Associate’s employment by the
Company, the Associate agrees not to

 

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claim
any rights to any Intellectual Property as having been created, conceived or
acquired by the Associate prior to the Associate’s employment by the Company,
unless such Intellectual Property is identified on a sheet attached to this
Agreement and signed by the Associate as of the date of this agreement.

 

(c)                                  The Associate understands and agrees that the
rights and obligations set forth in this Works-made-for-hire
and Intellectual Property section will continue indefinitely
and will survive termination of the Associate’s employment with the Company,
whether the termination is voluntary or involuntary.

 

6.                                       Termination
Payment.  In consideration of the
Associate’s promises and commitments reflected in paragraphs 2, 3, 4, 5 and 15
herein, the Company agrees that if the Company terminates the Associate’s
employment “without cause” (as defined below) prior to termination of this
Agreement, the Associate shall be entitled to nine months salary (excluding
incentive compensation, bonus amounts, benefits and similar items) at the rate
in effect at the time of termination to be paid on the same schedule as if
Associate were still employed (the “Termination Payments”).  The Company will reduce the amount of any Termination
Payments for withholding and FICA taxes and any other withholdings and
contributions required by law.  If the
Company terminates the Associate for “cause,” or if the Associate terminates
his or her employment for any reason, the Associate shall not be entitled to
any Termination Payments.  The Associate
further acknowledges that a transfer to Danaher or a subsidiary of Danaher
shall in no event constitute a “termination” of any kind for purposes of
Sections 6 or 7 hereof.

 

(a)           For purposes of this
Agreement, termination “without cause” shall mean that the Company terminates
the Associate’s employment for any reason, including in a reduction-in-force,
other than for “cause.” “Cause” shall include the following, to be determined
in the reasonable judgment of the Company:

 

(i)            the
Associate’s fraud, misappropriation, embezzlement, willful misconduct or gross
negligence with respect to Danaher or any subsidiary thereof, or any other
action in willful disregard of the interests of Danaher or any subsidiary
thereof;

 

(ii)           the
Associate’s conviction of, or pleading guilty or no contest to (1) a felony,
(2) any misdemeanor (other than a traffic violation) with respect to his/her
employment, or (3) any other crime or activity that would impair his/her
ability to perform his/her duties or impair the business reputation of Danaher
or any subsidiary thereof;

 

(iii)          the Associate’s refusal or willful failure to adequately
perform any duties assigned to him/her;

 

(iv)          the
Associate’s willful failure or refusal to comply with Danaher standards,
policies or procedures, including without limitation Danaher’s Standards of
Conduct as amended from time to time;

 

(v)           the Associate’s material misrepresentation or breach of any
of his or her representations, obligations or agreements under this Agreement;

 

(vi)          the Associate’s death; or

 

(vii)         the
Associate’s incapacity due to physical or mental illness that results in
his/her absence from work on a full-time basis for twelve consecutive months.

 

(b)           Notwithstanding anything in this Section 6 to the
contrary, the Associate agrees that in the event of a breach by the Associate
of any of his/her covenants contained in Sections 2, 3, 4, 5 or 15 herein, in
addition to any and all other remedies available to the Company, (1) the
Associate shall return to the Company any Termination Payments theretofore
received, in addition to any other damages or remedies available to the
Company, and (2) the Company shall have no obligation to pay, and the Associate
shall have no right to receive, any and all unpaid or remaining Termination
Payments. Notwithstanding anything

 

5

 

to the contrary herein, to the extent a
court, governmental authority or other administrative body invalidates or
renders unenforceable all or any portion of the covenants contained in Sections
2, 3, 4, 5 or 15 herein, the parties hereto agree that the Termination Payments
otherwise payable (including any installments that have already been paid to
Associate) shall be reduced proportionally, up to and including eliminating the
Termination Payment in its entirety to the extent the Agreement is rendered
unenforceable in its entirety.

 

7.                                       Severance
Payment.  The Company agrees that if
the Company terminates the Associate’s employment “without cause” (as defined
in paragraph 6(a) above) prior to termination of this Agreement, the Associate
shall be entitled to severance pay of three months salary (excluding incentive
compensation, bonus amounts, benefits and similar items) at the rate in effect
at the time of termination to be paid on the same schedule as if the
Associate were still employed (the “Severance Payments”) provided the
Associate signs a release of all claims arising out of the Associate’s
employment, and discontinuance of employment, with Danaher and/or any subsidiaries
of Danaher to the extent applicable. 
Such release must be executed at the time of termination, and will be in
the format of the Company’s standard release in effect at the time of
termination (a copy of the current version is available for the Associate’s
review.)  The Severance Payments will
commence upon completion of the Termination Payments provided for in paragraph
6 above, if any.  The Company will reduce
the amount of any Severance Payments for withholding and FICA taxes and any
other withholdings and contributions required by law.  Notwithstanding anything in this
Section 7 to the contrary, the Associate agrees that in the event of a
breach by the Associate of any of his/her covenants contained in the
aforementioned release, in addition to any and all other remedies available to
the Company, (1) the Associate shall return to the Company any Severance
Payments theretofore received, in addition to any other damages or remedies
available to the Company, and (2) the Company shall have no obligation to pay,
and the Associate shall have no right to receive, any and all unpaid or
remaining Severance Payments.

 

8.                                       Enforceability.  It
is the intention of the parties that the provisions of the restrictive
covenants herein shall be enforceable to the fullest extent permissible under
applicable law, but the unenforceability (or modification to conform to such
law) of any provision or provisions hereof shall not render unenforceable, or
impair, the remainder thereof.  If any
provision or provisions hereof shall be deemed invalid or unenforceable, either
in whole or in part, this Agreement shall be deemed amended to delete or
modify, as necessary, the offending provision or provisions and to alter the
bounds thereof in order to render it valid and enforceable.

 

9.                                       Damages and Relief.  The
Associate acknowledges and agrees that damages are an inadequate remedy for any
breach of the terms and conditions set forth in Sections 2, 3, 4, 5 and 15 of
this Agreement and agrees that in the event of a breach of such paragraphs, the
Company may, with or without pursuing any remedy for damages, immediately
obtain and enforce an ex parte, preliminary and permanent injunction
prohibiting the Associate from violating this policy.  Further, in any civil action brought for a
breach of this Agreement, the Company shall be entitled to recover from the
Associate all reasonable attorneys’ fees, litigation expenses, and costs
incurred by the Company if the Company prevails in that action.

 

10.                                 Consideration.  The
Associate acknowledges and agrees that this Agreement is supported by the
Termination Payment provision set forth in Section 6 above without regard
to whether the Associate receives any or all of the Termination Payment. The
Associate further agrees that such consideration is fair, reasonable and
enforceable to its full extent; that the Associate was given adequate time to
consider this Agreement; that the Company has an important and legitimate
business interest that it is seeking to protect with this Agreement; and that
enforcement of this Agreement would not interfere with the interests of the
public.

 

11.                                 Governing Law.  This
Agreement shall be governed by and construed in accordance with the substantive
laws of
                                      without regard for the choice of law
provisions thereof.

 

12.                                 Termination.

 

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(a)                                  The Associate understands, acknowledges and
agrees that the obligations and restrictions imposed upon him/her under this
Agreement shall apply regardless of whether the termination of his/her
employment is voluntary or involuntary, with or without cause.

 

(b)                                 Unless the Associate is sooner terminated
pursuant to the terms of Section 6 of this Agreement, terminated by the
Company for cause or the Associate terminates his or her employment for any
reason, the Company shall upon prior written notice to the Associate have the
right to terminate this Agreement (1) on the second anniversary of this
Agreement and on every second anniversary thereafter, and (2) in connection
with any promotion of the Associate or transfer of the Associate to Danaher or
any subsidiary of Danaher; provided, that in connection with any such
termination the Company (or a subsidiary of Danaher, as applicable) shall offer
to the Associate an agreement containing terms substantially similar to the
terms set forth herein but taking into account the then-current status of the
applicable law.

 

(c)           Notwithstanding anything to the
contrary set forth herein, all of the Company’s obligations under this
Agreement shall terminate upon the earliest of the termination of the
Associate’s employment for cause, the Associate’s termination of his or her
employment for any reason, or the Company’s fulfillment of its obligations, if
any, as set forth in Sections 6 and 7 hereof.

 

13.           Amendment
and Waiver; Entire Agreement. This Agreement shall not be amended except by
a written instrument hereafter signed by the Company and the Associate. The
failure of the Company to enforce, or delay in enforcing, any term of this
Agreement shall not constitute a waiver of any rights or deprive the Company of
the right to insist thereafter upon strict adherence to that or any other term
of this Agreement, nor shall a waiver of any breach of this Agreement
constitute a waiver of any preceding or succeeding breach. No waiver of a right
under any provision of this Agreement shall be binding on the Company unless
made in writing and signed by the President of the Company. This Agreement
contains the entire understanding of Danaher and the Associate relating to the
subject matter hereof and supersedes all prior agreements and understandings
relating to the subject matter hereof between the Associate on the one hand and
Danaher and/or any current or former subsidiary of Danaher on the other hand,
including without limitation any similar agreement entered into prior to the
date hereof between the Associate on the one hand and Danaher and/or any
current or former subsidiary of Danaher on the other hand.

 

14.           Successors
and Assigns. This Agreement shall be binding upon the Associate and his/her
heirs, successors, assigns and personal representatives, and inure to the
benefit of the Company, its successors and its assigns. The Associate may not
assign any rights or duties under this Agreement; the Company may assign any or
all of its rights and/or duties herein to any subsidiary or subsidiaries of the
Company. The term “affiliate,” when used herein, shall not include any officers
or directors of the Company.

 

15.           Nondisparagement.
The Associate agrees that except as required under the law, the Associate will
refrain from making derogatory or disparaging written or oral comments
regarding the Company, any of its affiliates or any of their respective
products, services or personnel.

 

16.                                 Right of Set-Off. The Company shall have the right,
but not the obligation, to set off, in whole or in part, against any obligation
it owes to the Associate under this Agreement or under any release, amounts
owed to Danaher or any Danaher subsidiary by the Associate.

 

17.                                 Acknowledgment of Understanding; Livelihood. The Associate acknowledges that s/he has
read this Agreement in its entirety and understands all of its terms and
conditions, that s/he has had the opportunity to consult with legal counsel of
his/her choice regarding his/her agreement to the provisions contained herein,
that s/he is entering into this Agreement of his/her own free will, without
coercion from any source, and that s/he agrees to abide by all of the terms and
conditions herein contained. The Associate further acknowledges that in
consideration of the Associate’s right to terminate his/her employment with the
Company at any time for any reason, Associate agrees that s/he is employed by
the Company on an at-will basis.  Nothing
contained in this Agreement or elsewhere shall be construed as limiting the
effect of this paragraph.  The Associate
acknowledges that Associate’s knowledge, skills and abilities are sufficient

 

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to enable the Associate, in the event of the
termination of employment with the Company, to earn a satisfactory livelihood
without violating this Agreement.

 

	
  Associate:

  	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Company:

  	
  By:

  	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  	
   

  
								

 

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Schedule A to Exhibit 10.2
 

In accordance with Instruction 2 to Item 601(a)(4) of Regulation S-K,
each of the following executive officers have entered into a noncompetition
agreement that is substantially identical in all material respects to the form
of agreement attached as Exhibit 10.2, except as to the name of the executive,
date of execution and governing law:

 

Daniel L. Comas

Donald E. Doles

James H. Ditkoff

Philip W. Knisely

Robert S. Lutz

Daniel A. Pryor

Steven E. Simms

 

9Exhibit
10.1

 

 

	
   

  	
  July
  1, 2004

  

 

 

Sumner
M. Redstone

c/o
Viacom Inc.

1515
Broadway

New
York, New York 10036

 

 

Dear
Mr. Redstone:

 

Effective as of July 1, 2004 (the “Effective Date”), you will continue
to be employed as the Chief Executive Officer of Viacom Inc. (“Viacom”) and
serve as Chairman of the Board of Directors of Viacom (the “Board”) pursuant to
the terms of this letter agreement (the “Agreement”).

 

1.             Duties.  During your employment with Viacom, you will
perform such duties and have such responsibilities and authority as are set
forth hereunder:

 

As
Chairman and Chief Executive Officer of Viacom, you shall have all the rights,
powers, authority, functions, duties and responsibilities customarily
associated with such titles, and such additional rights, powers, authority,
functions, duties and responsibilities as the Board may assign to you from time
to time that are commensurate with your status as Chairman and Chief Executive
Officer.

 

2.             Compensation.  As
the sole compensation for services to be rendered by you in all capacities to
Viacom, its subsidiaries and affiliates, you will receive the following
compensation from Viacom.

 

(a)           Salary:  For all the services rendered by you in any
capacity hereunder, Viacom agrees to pay you the sum of Three Million Five
Hundred Thousand Dollars ($3,500,000) per annum (“Salary”), payable in
accordance with Viacom’s then effective payroll practices but no less
frequently than semi-monthly.

 

(b)           Deferred
Compensation:  In addition to your
Salary, you shall earn, with respect to each payroll period during your
employment with Viacom, additional amounts (“Deferred Compensation”), the
payment of which (together with the return thereon as provided in this
paragraph 2(b)), shall be deferred until January of the first calendar year
following the year in which you cease to be an “executive officer” of Viacom,
as defined by the rules and regulations of the Securities Exchange Commission
for purposes of the Securities Exchange Act of 1934, as amended, and payable at
that time or at such later date as shall be determined pursuant to paragraph
13.  The Deferred

 

 

 

Sumner M. Redstone

July 1, 2004

Page 2

 

 

Compensation for the six (6) month period from July 1, 2004 through
December 31, 2004 shall equal One Million Dollars ($1,000,000), based on an
annualized rate of Two Million Dollars ($2,000,000).  The annualized rate of Deferred Compensation
for each subsequent calendar year during your employment with Viacom shall be
increased by Three Hundred Thousand Dollars ($300,000) on each January 1st
during your employment with Viacom, commencing January 1, 2005.  Deferred Compensation shall be credited to a
bookkeeping account maintained by Viacom on your behalf, the balance of which
account shall periodically be credited (or debited) with deemed positive (or
negative) return calculated in the same manner, and at the same times, as the
deemed return on your account under the Viacom Excess 401(k) Plan for Senior
Executives (as such plan may be amended from time to time, the “Excess 401(k)
Plan”) is determined (it being understood and agreed that, if at any time
during which the Deferred Compensation remains payable, your account balance in
the Excess 401(k) Plan is distributed in full to you, your Deferred
Compensation account shall continue to be credited or debited with a deemed
return based on the investment portfolio in which your Excess 401(k) Plan
account was notionally invested immediately prior to its distribution).  Viacom’s obligation to pay the Deferred
Compensation (including the return thereon provided for in this paragraph 2(b))
shall be an unfunded obligation to be satisfied from the general funds of
Viacom.

 

(c)           Bonus Compensation.  In addition to your Salary and Deferred
Compensation, you shall be entitled to receive bonus compensation for each of
the calendar years during your employment with Viacom, determined and payable
as follows (“Bonus”):

 

(i)            Your
Bonus for each of the calendar years or portion thereof during your employment
with Viacom will be based upon achievement of the performance goal established
by the Viacom Compensation Committee for each calendar year and partial
calendar year performance period during your employment with Viacom and shall
be determined, in accordance with the Viacom Senior Executive Short-Term
Incentive Plan, as the same may be amended from time to time (the “Senior
Executive STIP”), which performance goal shall be no less favorable to you than
the performance goal used to determine the amount of bonus payable to any other
executive of Viacom who participates in the Senior Executive STIP.

 

(ii)           Your
Target Bonus for each of the calendar years or portion thereof during your
employment with Viacom shall be 200% of your Salary and Deferred Compensation
at the annualized rate in effect at the end of such period.  Your Bonus may be prorated for any partial
calendar year that you are employed by Viacom under this Agreement.

 

 

 

Sumner M. Redstone

July 1, 2004

Page 3

 

 

(iii)          Assuming
the performance goal pre-established by the Viacom Compensation Committee for
each calendar year or partial calendar year performance period during your
employment with Viacom has been achieved and certified by the Committee, the
Compensation Committee is entitled to use its negative discretion to reduce the
amount of the Bonus that you are entitled to receive for such performance
period.

 

(iv)          Your
Bonus for any calendar year during your employment with Viacom shall be payable
by February 28th of the following year.  For the avoidance of doubt, it is understood
that you will receive the Bonus to which you are entitled for each calendar
year in which you were employed, even if you are not employed on February 28th
of the following year or on the actual date on which bonuses are paid for such
year.

 

(v)           In
the event that the Senior Executive STIP is amended or terminated, you will be
given an opportunity under the amended or successor plan to earn bonus
compensation equivalent to the amount that you could have earned under this
paragraph 2(c) but subject to the same limitations.

 

(d)           Long Term
Compensation.  In addition to your
Salary, Deferred Compensation and Bonus, you shall receive the following grants
of long-term compensation under the Viacom 2004 Long-Term Management Incentive
Plan (the “2004 LTMIP”) or a successor plan (together with Viacom’s 1994, 1997
and 2000 Long-Term Management Incentive Plans, collectively, the “LTMIP”):

 

(i)            Stock
Option Grants.  The Viacom
Compensation Committee awarded you, on July 1, 2004, grants under the 2004
LTMIP to purchase an aggregate of One Million Five Hundred Thousand (1,500,000)
shares of Viacom Class B Common Stock as follows:  (x) a grant of stock options to purchase Five
Hundred Thousand (500,000) shares of Viacom Class B Common Stock that will vest
on December 31, 2004; and (y) a grant of stock options to purchase One Million
(1,000,000) shares of Class B Common Stock that will vest in four (4) equal
installments on July 1, 2005, July 1, 2006, July 1, 2007 and July 1, 2008.  Each grant has a per share exercise price of
$35.51 (which is equal to the closing price of a share of Viacom Class B Common
Stock on the New York Stock Exchange on the July 1, 2004 date of grant).

 

 

Sumner M. Redstone

July 1, 2004

Page 4

 

 

(ii)           Restricted
Units.  The Viacom Compensation
Committee will award you four (4) grants under the LTMIP, each for 115,000
restricted share units (“Restricted Units”), during the first calendar quarter
of 2005, 2006, 2007 and 2008.  Each
Restricted Unit will correspond to one (1) share of Viacom Class B Common
Stock.  At the time of each grant, the
Compensation Committee will establish a performance goal requirement for such
award of Restricted Units for a performance period that will end no later than
December 31st of the year in which the grant is made.  The Compensation Committee shall establish
the same performance goal for each grant of Restricted Units that it
establishes for the Senior Executive STIP for the performance period during
which such grant of Restricted Units is awarded.  At the first Compensation Committee meeting
held after the end of each performance period during which Restricted Units
were awarded (which meeting is expected to be held in January), the
Compensation Committee will determine whether the performance goal for each
award of Restricted Units has been achieved. 
If the Committee certifies that the performance goal established for an
award of Restricted Units has been achieved, the award will vest and become
payable as described below.  If the
Compensation Committee finds that the goal established for any grant of
Restricted Units has not been achieved, the award will not vest and will be
cancelled.  The Restricted Units will be
payable only in shares of Class B Common Stock. 
Prior to the end of each calendar year during your employment with Viacom,
you will have an option to defer receipt of payment of the Restricted Units
that will be awarded during the following year; you can defer payment of such
Restricted Units as follows:  (x) for up
to ten (10) years after the Restricted Units vest for in-service distributions,
and (y) for up to three (3) years after the termination of your Viacom
employment for post-termination distributions. 
If a timely election to defer is not made for any award of Restricted
Units, payment of such Restricted Units will be made shortly after the
Restricted Units vest.  Notwithstanding
any of the foregoing, payment of each award of Restricted Units will be
deferred to the date determined in accordance with paragraph 13 if such date is
later than the date on which payment would otherwise be made.

 

3.             Benefits.

 

(a)           You shall be entitled
to participate in such medical, dental and life insurance, 401(k), pension and
other plans as Viacom may have or establish from time to time and in which any
other Viacom executives are eligible to participate.  The foregoing,

 

 

 

Sumner M. Redstone

July 1, 2004

Page 5

 

 

however, shall not be construed to require Viacom to establish any such
plans or to prevent the modification or termination of such plans once
established, and no such action or failure thereof shall affect this
Agreement.  In the event your benefits in
such plans are reduced or terminated and such reduction or termination was not
the result of a change in law, Viacom shall continue to provide you with
benefits equivalent to the benefits provided prior to any such reduction or
termination during your employment with Viacom. 
It is further understood and agreed that all benefits you may be
entitled to as an employee of Viacom shall be based upon your Salary plus
Deferred Compensation (as though it were Salary), as set forth in paragraphs
2(a) and (b), and not upon any bonus compensation due, payable or paid to you
hereunder, except where the benefit plan expressly provides otherwise.  You shall be entitled to four (4) weeks vacation.

 

(b)           Viacom shall provide you with no less than
Five Million Dollars ($5,000,000) of life insurance during your employment with
Viacom; provided, that the amount of such life insurance, and the terms
and conditions under which it is provided, shall be no less favorable than
those currently in effect for you.  You
shall have the right to assign the policy for such life insurance to your
spouse and/or issue or to a trust or trusts primarily for the benefit of your
spouse or issue.

 

4.             Business
Expenses, Perquisites.  During your
employment with Viacom, you shall be reimbursed for such reasonable travel and
other expenses incurred in the performance of your duties hereunder on a basis
no less favorable than that provided by Viacom to any of its senior executives
but in any event on a basis no less favorable to you than had previously been
provided to you prior to the date of this Agreement.  You shall be entitled to receive all
perquisites made available by Viacom from time to time during your employment
with Viacom to any other senior executives of Viacom but in any event on a
basis no less favorable to you than had previously been provided to you prior
to the date of this Agreement.  Without
limiting the generality of the foregoing, you shall be entitled to (i) a car
allowance and insurance in accordance with Viacom’s policy and (ii) use of a
private airplane in accordance with Viacom policy on a basis no less favorable
than that provided by Viacom to any of its senior executives but in any event
on a basis no less favorable to you than had previously been provided to you
prior to the date of this Agreement. 
Viacom shall pay all fees and expenses of your counsel and other fees
and expenses which you may incur in an effort to establish entitlement to compensation
or other benefits under this Agreement in the event that you ultimately
prevail.

 

5.             Indemnification.

 

(a)           Viacom shall indemnify
and hold you harmless, to the maximum extent permitted by law and by the
Restated Certificate of Incorporation and/or the Bylaws of Viacom, against
judgments, fines, amounts paid in settlement of and reasonable expenses
incurred by you in connection with the defense of any action or proceeding (or
any appeal therefrom) in which you are a party by reason of your position as
Chief Executive Officer and Chairman of the Board or any other office you may
hold

 

 

 

Sumner M. Redstone

July 1, 2004

Page 6

 

 

with Viacom or its affiliates or by reason of any prior positions held
by you with Viacom or any of its affiliates or predecessors or for any acts or
omissions made by you in good faith in the performance of any of your duties as
an officer of Viacom.

 

(b)           To the extent that
Viacom maintains officers’ and directors’ liability insurance, you will be
covered under such policy subject to the exclusions and limitations set forth
therein.

 

6.             Notices.  All notices required to be given hereunder
shall be given in writing, by personal delivery or by mail at the respective
addresses of the parties hereto set forth above, or at such other address as
may be designated in writing by either party. Any notice given by mail shall be
deemed to have been given three days following such mailing.

 

7.             Assignment.  This is an Agreement for the performance of
personal services by you and may not be assigned by you or Viacom except that
Viacom may assign this Agreement to any affiliate of or any successor in
interest to Viacom, provided that such assignee assumes the obligations of
Viacom hereunder.

 

8.             New
York Law, Etc.  This Agreement and
all matters or issues collateral thereto shall be governed by the laws of the
State of New York applicable to contracts entered into and performed entirely
therein. Any action to enforce this Agreement shall be brought in the state or
federal courts located in the City of New York. 

 

9.             Termination
at Will.  This Agreement can be
terminated by either party at will upon notice to the other party, provided
that any termination is not intended, and shall not be construed, to affect
your rights in any compensation and benefits that have been granted or accrued
prior to such termination.

 

10.           Entire
Understanding.  This Agreement
contains the entire understanding of the parties hereto relating to the subject
matter herein contained, and can be changed only by a writing signed by both
parties hereto.

 

11.           Void
Provisions.  If any provision of this
Agreement, as applied to either party or to any circumstances, shall be
adjudged by a court to be void or unenforceable, the same shall be deemed
stricken from this Agreement and shall in no way affect any other provision of
this Agreement or the validity or enforceability of this Agreement.

 

12.           Supersedes
Previous Agreements.  Effective as of
the Effective Date, this Agreement shall supersede and cancel all prior
agreements relating to your employment by Viacom or any of its affiliates and
predecessors, including, without limitation, the letter agreement, effective as
of May 5, 2003, between Viacom and you. 
Notwithstanding the preceding sentence, this Agreement is not intended, and
shall not be

 

 

Sumner M. Redstone

July 1, 2004

Page 7

 

 

construed, to affect your rights in any compensation or benefits that
have been granted or accrued prior to the Effective Date.

 

13.           Deductions
and Withholdings, Payment of Deferred Compensation.  All amounts payable under this Agreement
shall be paid less deductions and income and payroll tax withholdings as may be
required under applicable law and any benefits and perquisites provided to you
under this Agreement shall be taxable to you as may be required under
applicable law.  Notwithstanding any
other provision of this Agreement to the contrary, no distribution of Deferred
Compensation, payment for any restricted share units or distribution of any
other deferred compensation shall be made sooner than the earliest date
permitted under the provisions of the Internal Revenue Code of 1986, as
amended, or the rules or regulations promulgated thereunder, as in effect on
the date of such payment, in order for such payment to be taxable at the time of
the distribution thereof.

 

If the foregoing correctly sets forth our
understanding, please sign, date and return all four (4) copies of this
Agreement and return it to the undersigned for execution on behalf of Viacom;
after this Agreement has been executed by Viacom and a fully executed copy
returned to you, it shall constitute a binding agreement between us.

 

 

 

	
   

  	
   

  	
  VIACOM
  INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:
  

  	
  /s/ MICHAEL D. FRICKLAS

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Michael
  D. Fricklas

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President, General Counsel and Secretary

  
						

 

 

	
  ACCEPTED
  AND AGREED:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ SUMNER M. REDSTONE

  	
   

  
	
  Sumner M. Redstone

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