Document:

Exhibit 10(c)(vi)

 

 

CBS
Corporation

Terms
and Conditions of the Restricted Share Units

(Performance-Based with Time Vesting)

Granted
Under the 2004 Long-Term Management Incentive Plan

 

ARTICLE I

 

TERMS
OF PERFORMANCE-BASED RESTRICTED SHARE UNITS

 

Section 1.1  Grant of
Restricted Share Units.  CBS
Corporation, a Delaware corporation (the “Company”), has awarded the
Participant restricted share units (the “RSUs”) under the CBS
Corporation 2004 Long-Term Management Incentive Plan, as amended from time to
time (the “Plan”).  The RSUs have
been awarded to the Participant subject to the terms and conditions contained
in (A) the certificate for the grant of RSUs attached hereto (the “Restricted
Share Units Certificate”), (B) the terms and conditions contained
herein (the Restricted Share Units Certificate and the terms and conditions,
collectively, the “Certificate”) and (C) the Plan, the terms of
which are hereby incorporated by reference (the terms listed in (A), (B), and
(C), collectively, the “Terms and Conditions”).  A copy of the Plan has been or is being
provided to the Participant.  Capitalized
terms that are not otherwise defined herein have the meanings assigned to them
in the Restricted Share Units Certificate or the Plan.

 

Section 1.2  Terms of RSUs.

 

(a)           Vesting.  The
Committee shall establish a performance goal (the “Performance Goal”),
subject to adjustment pursuant to Section 2.2 hereof, for calendar year
[               ] (the “Performance Period”).  The RSUs shall vest in four installments on
the first, second, third and fourth anniversaries of the Date of Grant, with
42% of the RSUs vesting on the first and second anniversaries of the Date of
Grant, and 8% vesting on the third and fourth anniversaries of the Date of
Grant, subject to the Committee certifying that the Performance Goal
established for the RSUs for the Performance Period has been achieved.  Any fractional shares resulting from the
application of the foregoing vesting schedule will be aggregated and will vest
on whichever of the preceding vesting dates shall be determined by the Company
in accordance with its customary procedures. 
Notwithstanding anything to the contrary in Section 1.2(d) below,
in the event that the Committee determines that the Performance Goal
established for the RSUs for the Performance Period has not been achieved, the
RSUs will not vest, and will be immediately cancelled in their entirety and the
Participant’s rights with respect to such RSUs will cease.

 

(b)      Settlement.  On the date each installment of the RSUs vests,
that installment of the vested RSUs shall be payable in shares of Class B
Common Stock, which may be evidenced in such manner as the Committee in its
discretion shall deem appropriate, including, without limitation, book-entry
registration; provided, however, that such shares shall bear such
legends as the Committee, in its sole discretion, may determine to be necessary
or advisable. (The Company currently does not issue share certificates for the Class B
Common Stock.)  The Company will settle
vested RSUs by delivering the corresponding number of shares of Class B
Common Stock (less any shares withheld to satisfy withholding tax obligations)
to the

 

 

Participant’s
equity compensation account maintained with Smith Barney (or its successor as
service provider to the Company’s equity compensation plans). Following
settlement, the Participant may direct Smith Barney (or its successor) to sell
some or all of such shares, may leave such shares in such equity compensation
account or may transfer them to an account that the Participant maintains with
a bank or broker by following the instructions made available to the
Participant by the Company.

 

(c)      Dividend Equivalents.  Dividend Equivalents shall accrue on the RSUs
until the RSUs are vested, unless the Participant has elected to defer
settlement of such RSUs, in which case Dividend Equivalents shall accrue on the
RSUs until the date of such deferred settlement.  Dividend Equivalents will be subject to the
same vesting and forfeiture conditions as the underlying RSUs on which the
Dividend Equivalents were accrued.  The
Company shall maintain a bookkeeping account on behalf of the Participant to
record the amount of the Dividend Equivalents credited in respect of the Participant’s
RSUs and shall periodically credit the accrual of Dividend Equivalents to the
Participant’s account at such time and in such manner as determined by the
Committee, in its sole discretion. 
Accrued Dividend Equivalents that have been credited to the
Participant’s account shall be paid in cash through payroll (reduced by any
amounts withheld to satisfy withholding tax obligations) as soon as practicable
following the date the RSUs on which the Dividend Equivalents accrued are
settled or on such later date on which a regular cash dividend with respect to
any accrued Dividend Equivalents is paid on the Class B Common Stock.  Accrued Dividend Equivalents that have been
credited to the Participant’s account will not be paid with respect to any RSUs
that do not vest and are cancelled. 
Dividend Equivalents will not be credited with any interest or other
return between the date they accrue and the date they are paid to the
Participant.

 

(d)                   Termination of
Employment.

 

                                   (i)      If the Participant is a party to an
employment agreement with the Company or one of its Subsidiaries at the time of
a termination of employment that provides for different treatment from Section 1.2(d)(ii),
the terms of the Participant’s employment agreement will control.

 

(ii)              Otherwise, in
the event that the Participant’s employment with the Company or any of its
Subsidiaries ends for any reason before the RSUs have vested in accordance with
Section 1.2(a) hereof, the Participant shall forfeit all unvested
RSUs (and all unvested Dividend Equivalents accrued thereon) as of the date of
such termination of employment, unless the Committee determines otherwise.  A ‘‘termination of employment’’ occurs, for
purposes of the RSUs, when a Participant is no longer an employee of the
Company or any of its Subsidiaries for any reason, including, without
limitation, a reduction in force, a sale or divestiture or shut-down of the
business for which the Participant works, the Participant’s voluntary
resignation, the Participant’s termination with or without cause or the
Participant’s retirement, death or permanent disability.  Unless the Committee determines otherwise,
the employment of a Participant who works for a Subsidiary shall terminate, for
purposes of the RSUs, on the date on which the Participant’s employing company
ceases to be a Subsidiary.

 

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ARTICLE II

 

ADJUSTMENT OF AWARDS

 

Section 2.1  Effect of Certain Corporate Changes.   In the event of a
merger, consolidation, stock split, reverse stock split, dividend,
distribution, combination, reclassification, reorganization, split-up, spin-off
or recapitalization that changes the character or amount of the Class B
Common Stock or any other changes in the corporate structure, equity securities
or capital structure of the Company, the Committee shall make such adjustments,
if any, to the number and kind of securities subject to the RSUs, as it deems
appropriate. The Committee may, in its sole discretion, also make such other
adjustments as it deems appropriate in order to preserve the benefits or
potential benefits intended to be made available hereunder. Such determinations
by the Committee shall be conclusive and binding on all persons for all
purposes.

 

Section 2.2 Adjustment
of Performance Goal.  In the event
that, during the Performance Period, any merger, consolidation, combination,
reorganization, recapitalization, acquisition, divestiture, spin-off,
liquidation, dissolution, sale of assets, or other similar corporate
transaction or event, or any other extraordinary event, circumstance occurs
which has the effect, as determined by the Committee, in its sole discretion,
of distorting the Performance Goal, including, without limitation, changes in
accounting standards, the Committee may adjust or modify, as determined by the
Committee in its sole discretion, the 
calculation of the Performance Goal, to the extent necessary to prevent
reduction or enlargement of the award of the RSUs for such Performance Period
attributable to such transaction, circumstance or event. Such adjustments by
the Committee shall be conclusive and binding on all persons for all purposes.

 

ARTICLE III

 

DEFINITIONS

 

As
used herein, the following terms shall have the following meanings:

 

(a)      “Board” shall mean the
Board of Directors of the Company.

 

(b)      “Certificate” shall mean
the Restricted Share Units Certificate, together with the terms and conditions
contained herein.

 

(c)       “Class B Common
Stock” shall mean shares of Class B Common Stock, par value $0.001 per
share, of the Company.

 

(d)      “Code” shall mean the
U.S. Internal Revenue Code of l986, as amended, including any successor law
thereto and the rules and regulations promulgated thereunder.

 

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(e)      “Committee” shall mean the
Compensation Committee of the Board (or such other Committee(s) as may be
appointed or designated by the Board to administer the Plan).

 

(f)       “Date of Grant” shall be the
date set forth on the Restricted Share Units Certificate.

 

(g)      “Dividend Equivalent” shall
mean an amount in cash equal to the regular cash dividend that would have been
paid on the number of shares of Class B Common Stock underlying the RSUs.

 

(h)     “Fair Market Value” of a
share of Class B Common Stock on a given date shall be the 4:00 p.m.
(New York time) closing price on such date on the New York Stock Exchange or
other principal stock exchange on which the Class B Common Stock is then
listed, as reported by The Wall Street Journal (Northeast edition) or as
reported by any other authoritative source selected by the Company.

 

(i)     “Participant”
shall mean the employee named on the Restricted Share Units Certificate.

 

(j)       “Restricted Share Units
Certificate” shall have the meaning set forth in Section 1.1 hereof.

 

(k)     “Section 409A” shall
mean Section 409A of the Code and the rules, regulations and guidance
promulgated thereunder from time to time.

 

(l)     “Subsidiary” shall mean a
corporation (or a partnership or other enterprise) in which the Company owns or
controls, directly or indirectly, more than 50% of the outstanding shares of
stock normally entitled to vote for the election of directors (or comparable
equity participation and voting power).

 

(m)   “Terms and Conditions” shall
mean the Certificate, together with the Plan.

 

ARTICLE IV

 

MISCELLANEOUS

 

Section 4.1  No Rights to Grants or Continued
Employment.  Neither the Terms and
Conditions nor any action taken in accordance with such documents shall confer
upon the Participant any right to be employed by or to continue in the
employment of the Company or any Subsidiary, or to receive any future awards
under the Plan or any other plan of the Company or any Subsidiary or interfere
with or limit the right of the Company or any Subsidiary to modify the terms of
or terminate the Participant’s employment at any time for any reason.

 

Section 4.2  Restriction on Transfer.  RSUs may not be sold, transferred, assigned,
pledged or otherwise encumbered or disposed of; provided, however,
that the Committee may 

 

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permit transferability,
subject to any conditions and limitations that it may, in its sole discretion,
impose.

 

Section 4.3  Taxes. 
The Company or a Subsidiary, as appropriate, shall be entitled to
withhold from any RSUs that vest, and from any payment (including payment of
accrued dividends) made with respect to the RSUs or otherwise under the Plan to
the Participant or a Participant’s estate or any permitted transferee, an
amount sufficient to satisfy any U.S. federal, state, local and/or other tax
withholding requirements. The Company expects that, in order to satisfy such
requirements, it will (i) in connection with the vesting of any RSUs,
retain a portion of such shares, and (ii) in connection with the payment
any accrued cash dividends, retain a portion of the cash amount that would
otherwise be paid. As a condition to receiving this grant of RSUs, the
Participant has agreed to the foregoing actions to satisfy such tax withholding
requirements. Notwithstanding the foregoing, the Company may, in its discretion
and subject to such conditions as it may determine, require or permit the
Participant to satisfy such tax withholding requirements through some other
means (including without limitation by payment of a cash amount equal to the
amount of such tax withholding requirements or by delivery of Class B
Common Stock already owned by the Participant having a Fair Market Value equal
to the amount of such tax withholding requirements).

 

Section 4.4  Stockholder Rights; Unsecured Creditor
Status.  The grant of RSUs shall not
entitle the Participant or a Participant’s estate or any permitted transferee
to any rights of a holder of shares of Class B Common Stock, prior to the
time that the Participant, the Participant’s estate or the permitted transferee
shall become the registered or beneficial holder of the Class B Common
Stock underlying the RSUs.  Unless
otherwise determined by the Committee in its discretion, no adjustment shall be
made for dividends or distributions or other rights in respect of any shares of
Class B Common Stock for which the record date is prior to the date on
which the Participant, a Participant’s estate or any permitted transferee shall
become the registered or beneficial holder of such shares of Class B
Common Stock. RSUs constitute unsecured and unfunded obligations of the Company.
As a holder of RSUs, the Participant shall have only the rights of a general
unsecured creditor of the Company.

 

Section 4.5  No Restriction on Right of Company to
Effect Corporate Changes.  The Terms
and Conditions shall not affect in any way the right or power of the Company or
its stockholders to make or authorize any or all adjustments,
recapitalizations, reorganizations or other changes in the Company’s capital
structure or its business, or any merger or consolidation of the Company, or
any issue of stock or of options, warrants or rights to purchase stock or of
bonds, debentures, preferred or prior preference stocks whose rights are
superior to or affect the Class B Common Stock or the rights thereof or
which are convertible into or exchangeable for Class B Common Stock, or
the dissolution or liquidation of the Company, or any sale or transfer of all
or any part of its assets or business, or any other corporate act or
proceeding, whether of a similar character or otherwise.

 

5

 

Section 4.6  Section 409A.

 

(a)       The intent of the
parties is that payments and distributions under these Terms and Conditions
comply with Section 409A and, accordingly, to the maximum extent
permitted, these Terms and Conditions shall be interpreted to be in compliance
therewith.

 

(b)        Notwithstanding any
provision to the contrary in these Terms and Conditions, if the Participant is
deemed on the date of termination to be a “specified employee” (as determined
by the Company pursuant to Section 409A), and any portion of the
Participant’s RSUs constitute deferred compensation within the meaning of Section 409A,
then such payment or distribution shall not be made or provided (subject to the
last sentence hereof) prior to the earlier of (i) the expiration of the
six (6)-month period measured from the date of the Participant’s “separation
from service” (as such term is defined under Section 409A) or (ii) the
date of Participant’s death (the “Delay Period”). Upon the expiration of the Delay
Period, all payments and distributions delayed pursuant to this section shall
be paid or distributed to the Participant promptly subject to applicable
withholding, and any remaining payments and distributions due thereafter under
these Terms and Conditions shall be paid or distributed in accordance with the
dates specified for them herein.

 

(c)        In no event whatsoever
(including, but not limited to as a result of paragraph (a) or paragraph (b) above
or otherwise) shall the Company be liable for any tax, interest or penalties
that may be imposed on the Participant by Code Section 409A or any damages
for failing to comply with Section 409A or (a) or (b) above. The
Participant acknowledges that he or she has been advised to obtain independent
legal, tax or other counsel in connection with Code Section 409A.

 

Section 4.7  Interpretation.  In the event of any conflict between the
provisions of the Certificate (including the definitions set forth herein) and
those of the Plan, the provisions of the Plan will control.  Additionally, in the event of a conflict or
ambiguity between the provisions of the Certificate and the provisions of any
employment agreement that is in effect and applicable to the Participant with
respect to the RSUs, the provisions of such employment agreement shall be
deemed controlling to the extent such provisions are consistent with the
provisions of the Plan and are more favorable to the Participant than the
provisions of the Certificate.

 

Section 4.8  Breach of Covenants.  In the event that (i) the Participant is
party to an employment agreement or other agreement with the Company or one of
its Subsidiaries containing  restrictive
covenants relating to non-competition, no solicitation of employees, confidential
information or proprietary property, and (ii) the Committee makes a good
faith determination at any time that the Participant has committed a material
breach of any of such restrictive covenants during the one year period after
termination of the Participant’s employment with the Company or a Subsidiary
(regardless of the circumstances of the Participant’s termination of
employment), then (x) the Participant will be required to return to the
Company all shares of Class B Common Stock received by him or her as a
result of the vesting of the RSUs during the one year period prior to such
breach and the cash payment of related accrued dividends; provided, however,
to the extent that any such shares of Class B 

 

6

 

Common
Stock were sold by the Participant, the Participant shall remit to the Company
any proceeds realized on the sale of such shares of Class B Common Stock,
whether such sale occurred during the one year period prior to such breach or
any time after such breach occurs and (y) notwithstanding any provision of
the Certificate or any other agreement between the Company and the Participant,
including any agreement referenced in Section 1.2(d) hereof, under no
circumstances will any unvested RSUs vest following the Committee’s determination
that Participant has committed a material breach.

 

Section 4.9  Governmental Regulations.  The RSUs shall be subject to all applicable rules and
regulations of governmental or other authorities.

 

Section 4.10  Headings.  The headings of articles and sections herein
are included solely for convenience of reference and shall not affect the
meaning of any of the provisions of the Terms and Conditions.

 

Section 4.11  Governing Law.  The Terms and Conditions and all rights
hereunder shall be construed in accordance with and governed by the laws of the
State of Delaware.

 

7Exhibit 10(h)

 

Summary of CBS Corporation
Compensation for Outside Directors

(Effective November 1, 2007)

 

Directors of CBS Corporation (the “Company”) who are not employees of
the Company or any of its subsidiaries (the “Outside Directors”) receive compensation
for their service as follows:

 

Cash Compensation

 

·                  An annual Board retainer of
$60,000, payable in equal installments quarterly in advance, plus a per meeting
attendance fee of $2,000; and

 

·                  The Chairs of the Audit,
Compensation and Nominating and Governance Committees each receive an annual
retainer of $20,000, payable in equal installments quarterly in advance, and
the members of those committees receive a per meeting attendance fee of $2,000.

 

Outside Directors may elect to defer their cash
compensation under the CBS Deferred Compensation Plan for Outside Directors, or
any successor plan.

 

Equity Compensation

 

Stock Options:

 

·                  an initial grant of 12,734
stock options to purchase shares of the Company’s Class B common stock on
the date the director first joins the Board or becomes an Outside Director,
which options vest one year from the date of grant; and

 

·                  an annual grant of 5,093
stock options to purchase shares of the Company’s Class B common stock on January 31st
of each year, which options vest in three equal annual installments, on the
first, second and third anniversaries of the date of grant.

 

The exercise price of the stock options is the
closing price of the Company’s Class B common stock on the New York Stock
Exchange (“NYSE”) on the date of grant.

 

Restricted Share Units (RSUs):

 

·                  an annual grant of RSUs on January 31st
of each year equal to $75,000 in value based on the closing price of the
Company’s Class B common stock on the NYSE on the date of grant, which
RSUs vest one year from the date of grant; and

 

·                  prorated RSU grants for
Outside Directors who join the Board following the date of the annual RSU
grant, but during the calendar year of the grant. Such grants will be made 5
business days following the date such Outside Director joins the Board, and
will be determined by multiplying $6,250 ($75,000 divided by 12) by the number
of months remaining in such calendar year from the date the Outside Director
joins the Board (counting the month of joining as a full month), divided by the
closing price of the 

 

 

Company’s Class B
common stock on the NYSE on the date of grant. 
Prorated RSU grants vest on the first anniversary of the date of grant
of the annual RSU grant that was awarded during the calendar year in which the
Outside Director received such prorated RSU grant.

 

RSUs are payable to Outside Directors in shares of
the Company’s Class B common stock upon vesting unless the Outside
Director elects to defer settlement of the RSUs to a future date.  Outside Directors are entitled to receive
dividend equivalents on the RSUs in the event the Company pays a regular cash
dividend on its Class B common stock. 
Dividend equivalents will accrue on the RSUs (including deferred RSUs)
in accordance with the RSU Plan for Outside Directors until the RSUs are
settled.

 

Other

 

Expenses:

 

Outside Directors are
reimbursed for expenses incurred in attending Board, committee and stockholder
meetings (including travel and lodging) in accordance with the Company’s normal
travel policies.

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