Document:

EXHIBIT 4.5

                                 CBS CORPORATION
                          1991 LONG-TERM INCENTIVE PLAN
                        (as amended as of July 28, 1999)

                                    ARTICLE I
                                     GENERAL

1.1      Purpose

         The purposes of the 1991 Long-Term Incentive Plan ("Plan") for eligible
employees of CBS Corporation (formerly known as Westinghouse Electric
Corporation) ("Corporation") and its Subsidiaries (the Corporation and its
Subsidiaries severally and collectively referred to in the Plan as the
"Company") are to foster and promote the long-term financial success of the
Company and materially increase stockholder value by (i) attracting and
retaining employees of outstanding ability, (ii) strengthening the Company's
capability to develop, maintain and direct a high performance team, (iii)
motivating employees, by means of performance-related incentives, to achieve
long-range performance goals, (iv) providing incentive compensation
opportunities competitive with those of other major companies and (v) enabling
employees to participate in the long-term growth and financial success of the
Company.

1.2      Administration

         (a) The Plan will be administered by a committee of the Board of
Directors of the Corporation ("Committee") which will consist of two or more
members. The members will be appointed by the Board of Directors, and any
vacancy on the Committee will be filled by the Board of Directors or in a manner
authorized by the Board.

         The Committee will keep minutes of its meetings and of any action taken
by it without a meeting. A majority of the Committee will constitute a quorum,
and the acts of a majority of the members present at any meeting at which a
quorum is present will be the acts of the Committee. Any action that may be
taken at a meeting of the Committee may be taken without a meeting if a consent
or consents in writing setting forth the action so taken is signed by all of the
members of the Committee. The Committee will make appropriate reports to the
Board of Directors concerning the operations of the Plan.

         (b) Subject to the limitations of the Plan, the Committee will have the
sole and complete authority: (i) to select in accordance with Section 1.3
persons who will participate in the Plan ("Participant" or "Participants")
(including the right to delegate authority to select Participants); (ii) to make
Awards and payments in such forms and amounts as it may determine, including the
right to delegate authority to make Awards within limits approved by the
Committee; (iii) to impose such limitations, restrictions, terms and conditions
upon such Awards as the Committee or its authorized delegates deems appropriate;
(iv) to interpret the Plan and the

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terms of any document relating to the Plan and to adopt, amend and rescind
administrative guidelines and other rules and regulations relating to the Plan;
(v) to amend or cancel an existing Award in whole or in part (including the
right to delegate authority to amend or cancel an existing Award in whole or in
part within limits approved from time to time by the Committee), except that the
Committee and its authorized delegates may not, unless otherwise provided in the
Plan, or unless the Participant affected thereby consents, take any action under
this clause that would adversely affect the rights of such Participant with
respect to the Award, and except that the Committee and its authorized delegates
may not take any action to amend any outstanding Option under the Plan in order
to decrease the Option Price under such Option or to cancel and replace any such
Option with an Option with a lower Option Price; and (vi) to make all other
determinations and to take all other actions necessary or advisable for the
interpretation, implementation and administration of the Plan. The Committee's
determinations on matters within its authority will be conclusive and binding
upon the Company and all other persons.

         (c) The Committee will act with respect to the Plan on behalf of the
Corporation and on behalf of any Subsidiary issuing stock under the Plan,
subject to appropriate action by the board of directors of any such Subsidiary.
All expenses associated with the Plan will be borne by the Corporation subject
to such allocation to its Subsidiaries and operating units as it deems
appropriate.

1.3      Selection for Participation

         Participants selected by the Committee or its authorized delegates must
be Eligible Persons as defined below. "Eligible Persons" are persons who are
employees of the Company ("Employee" or "Employees") or, in the event of death
while an Employee, his or her estate. Eligible Persons will also include
independent contractors of the Company as to an Award if the person is an
independent contractor at the time the Award is granted. In making this
selection and in determining the form and amount of Awards, the Committee may
give consideration to the functions and responsibilities of the Eligible Person,
his or her past, present and potential contributions to the Company and other
factors deemed relevant by the Committee.

1.4      Types of Awards under Plan

         Awards ("Awards") under the Plan may be in the form of any one or more
of the following: (i) Non-statutory Stock Options ("NSOs" or "Options"), as
described in Article II, (ii) Stock Appreciation Rights ("SARs") and Limited
Stock Appreciation Rights ("Limited Rights"), as described in Article III, (iii)
Performance Awards ("Performance Awards") as described in Article IV, and (iv)
Restricted Stock ("Restricted Stock") as described in Article V.

1.5      Shares Subject to the Plan

         Shares of stock issued under the Plan may be in whole or in part
authorized and unissued or treasury shares of the Corporation's common stock,
par value $1.00 ("Common Stock"), or "Formula Value Stock" as defined in Section
8.12(d) (Common Stock and Formula Value Stock

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severally and collectively referred to in the Plan as "Stock").

         The maximum number of shares of Stock which may be issued for all
purposes under the Plan will be 30,500,000, plus such additional shares as the
Board of Directors or the Committee may, from time to time, authorize by a
resolution or resolutions duly adopted by said Board of Directors or Committee.

         Except as otherwise provided below, any shares of Stock subject to an
Option or other Award which is canceled or terminates without having been
exercised will again be available for Awards under the Plan. Shares subject to
an option canceled upon the exercise of an SAR will not again be available for
Awards under the Plan except to the extent the SAR is settled in cash. To the
extent that an Award is settled in cash, shares of Stock subject to that Award
will again be available for Awards. Shares of Stock tendered by a Participant or
withheld by the Company to pay the exercise price of an Option or to satisfy the
tax withholding obligations of the exercise or vesting of an Award will be
available again for Awards under the Plan. Shares of Restricted Stock forfeited
to the Company in accordance with the Plan and the terms of the particular Award
will be available again for Awards under the Plan.

         No fractional shares will be issued, and the Committee will determine
the manner in which fractional share value will be treated.

                                   ARTICLE II
                                  STOCK OPTIONS

2.1      Award of Stock Options

         The Committee may, from time to time, subject to the provisions of the
Plan and such other terms and conditions as the Committee may prescribe, award
to any Participant Options to purchase Stock.

         The Committee may provide with respect to any option to purchase Stock
that, if the Participant, while an Eligible Person, exercises the option in
whole or in part using already-owned Stock, the Participant will, subject to
this Section 2.1 and such other terms and conditions as may be imposed by the
Committee, receive an additional option ("Reload Option"). The Reload Option
will be to purchase, at Fair Market Value as of the date the original option was
exercised, a number of shares of Stock equal to the number of whole shares used
by the Participant to exercise the original option. The Reload Option will be
exercisable only between the date of its grant and the date of expiration of the
original option.

         A Reload Option will be subject to such additional terms and conditions
as the Committee may approve, which terms may provide that the Committee may
cancel the Participant's right to receive the Reload Option and that the Reload
Option will be granted only if the Committee has not canceled such right prior
to the exercise of the original option. Such

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terms may also provide that, upon the exercise by a Participant of a Reload
Option while an Eligible Person, an additional Reload Option will be granted
with respect to the number of whole shares used to exercise the first Reload
Option.

2.2      Stock Option Agreements

         The award of an option will be evidenced by a written agreement ("Stock
Option Agreement") in such form and containing such terms and conditions as the
Committee may from time to time determine.

2.3      Option Price

         The purchase price of Stock under each Option ("Option Price") will not
be less than the Fair Market Value of such Stock on the date the Option is
awarded.

2.4      Exercise and Term of Options

         (a) Except as otherwise provided in the Plan, Options will become
exercisable at such time or times as the Committee may specify. The Committee
may at any time and from time to time accelerate the time at which all or any
part of the Option may be exercised.

         (b) The Committee will establish procedures governing the exercise of
options and will require that notice of exercise be given. Stock purchased on
exercise of an option must be paid for as follows: (1) in cash or by check
(acceptable to the Company in accordance with guidelines established for this
purpose), bank draft or money order payable to the order of the Company or (2)
if so provided by the Committee (i) through the delivery of shares of Stock
which are then outstanding and which have a Fair Market Value on the date of
exercise equal to the exercise price, (ii) by delivery of an unconditional and
irrevocable undertaking by a broker to deliver promptly to the Company
sufficient funds to pay the exercise price, or (iii) by any combination of the
permissible forms of payment.

2.5      Termination of Eligibility

         Unless the Committee provides otherwise: (a) in the event the
Participant is no longer an Eligible Person and ceased to be such as a result of
termination of service to the Company with the consent of the Committee or as a
result of his or her death, retirement or disability, each of his or her
outstanding Options will be exercisable by the Participant (or his or her legal
representative or designated beneficiary), to the extent that such Option was
then exercisable, at any time prior to an expiration date established by the
Committee at the time of award, but in no event after such expiration date; (b)
in the event an Award is made to the estate of a person who died while an
Employee, each outstanding Option held by such estate will be exercisable by the
estate (or the distributee of said estate) at any time prior to an expiration
date established by the Committee at the time of award; and (c) if the
Participant ceases to be an Eligible Person for any other reason, all of the
Participant's then outstanding Options will terminate immediately.

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                                   ARTICLE III
                  STOCK APPRECIATION RIGHTS AND LIMITED RIGHTS

3.1      Award of Stock Appreciation Right

         (a) An SAR is an Award entitling the recipient on exercise to receive
an amount, in cash or Stock or a combination thereof (such form to be determined
by the Committee), determined in whole or in part by reference to appreciation
in Stock value.

         (b) In general, unless otherwise provided by the Committee an SAR
entitles the Participant to receive, with respect to each share of Stock as to
which the SAR is exercised, the excess of the share's Fair Market Value on the
date of exercise over its Fair Market Value on the date the SAR was granted.

         (c) SARs may be granted in tandem with options granted under the Plan
("Tandem SARS") or independently of Options ("Independent SARs"). An SAR granted
in tandem with an NSO may be granted either at or after the time the option is
granted.

         (d) SARs awarded under the Plan will be evidenced by either a Stock
Option Agreement (when SARs are granted in tandem with an Option) or a separate
written agreement between the Company and the Participant in such form and
containing such terms and conditions as the Committee may from time to time
determine.

         (e) Except as otherwise provided herein or by the Committee, a Tandem
SAR will be exercisable only at the same time and to the same extent and subject
to the same conditions as the option related thereto is exercisable, and the
Committee may prescribe additional conditions and limitations on the exercise of
the SAR. The exercise of a Tandem SAR will cancel the related Option. Tandem
SARs may be exercised only when the Fair Market Value of Stock to which it
relates exceeds the Option Price.

         (f) Except as otherwise provided herein, an Independent SAR will become
exercisable at such time or times, and on such conditions, as the Committee may
specify, and the Committee may at any time accelerate the time at which all or
any part of the SAR may be exercised.

         The Committee may provide, under such terms and conditions as it may
deem appropriate, for the automatic grant of additional SARs upon the full or
partial exercise of an Independent SAR.

         Any exercise of an Independent SAR must be in writing, signed by the
proper person and delivered or mailed to the Company, accompanied by any other
documents required by the Committee.

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         (g) Except as otherwise provided herein or by the Committee, all SARs
will automatically be exercised on the last trading day prior to the expiration
date established by the Committee at the time of the award for the SAR, or, in
the case of a Tandem SAR, for the related Option, so long as exercise on such
date will result in a payment to the Participant.

         (h) Unless otherwise provided by the Committee, no SAR will become
exercisable or will be automatically exercised for six months following the date
on which it was granted.

         (i) At the time of award of an SAR, the Committee may limit the amount
of the payment that may be made to a Participant upon the exercise of the SAR.
The Committee may further determine that, if the amount to be received by a
Participant in any year is limited pursuant to this provision, payment of all or
a portion of the amount that is unpaid as a result of the limitation may be made
to the Participant at a subsequent time. No such limitation will require a
Participant to return to the Company any amount theretofore received by him or
her upon the exercise of an SAR.

         (j) Payment of the amount to which a Participant is entitled upon the
exercise of an SAR will be made in cash, Stock, or partly in cash and partly in
Stock, as the Committee may determine. To the extent that payment is made in
Stock, the shares will be valued at their Fair Market Value on the date of
exercise of the SAR.

         (k) Unless otherwise provided by the Committee, each SAR will expire on
a date determined by the Committee or earlier upon the occurrence of the first
of the following: (i) in the case of a Tandem SAR, termination of the related
option, (ii) expiration of a period of six months after the Participant's
ceasing to be an Eligible Person as a result of termination of service to the
Company with the consent of the Committee or as a result of his or her death,
retirement or disability, or (iii) the Participant ceasing to be an Eligible
Person for any other reason.

3.2      Limited Rights

         (a) The Committee may award Limited Rights pursuant to the provisions
of this Section 3.2 to the holder of an Option to purchase Common Stock granted
under the Plan (a "Related Option") with respect to all or a portion of the
shares subject to the Related Option. A Limited Right may be exercised only
during the period beginning on the first day following a Change in Control, as
defined in Section 7.2 of the Plan, and ending on the thirtieth day following
such date. Each Limited Right will be exercisable only to the same extent that
the Related Option is exercisable, and in no event after the termination of the
Related Option. In no event may a Limited Right be exercised during the first
six months after the date of grant of the Limited Right. Limited Rights will be
exercisable only when the Fair Market Value (determined as of the date of
exercise of the Limited Rights) of each share of Common Stock with respect to
which the Limited Rights are to be exercised exceeds the Option Price per share
of Common Stock subject to the Related option.

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         (b) Upon the exercise of Limited Rights, the Related Option will be
considered to have been exercised to the extent of the number of shares of
Common Stock with respect to which such Limited Rights are exercised. Upon the
exercise or termination of the Related Option, the Limited Rights with respect
to such Related Option will be considered to have been exercised or terminated
to the extent of the number of shares of Common Stock with respect to which the
Related Option was so exercised or terminated.

         (c) The effective date of the grant of a Limited Right will be the date
on which the Committee approves the grant of such Limited Right. Each grantee of
a Limited Right will be notified promptly of the grant of the Limited Right in
such manner as the Committee prescribes.

         (d) Upon the exercise of Limited Rights, the holder thereof will
receive in cash an amount equal to the product computed by multiplying (i) the
excess of (a) the higher of (x) the Minimum Price Per Share (as hereinafter
defined), or (y) the highest reported closing sales price of a share of Common
Stock on the New York Stock Exchange at any time during the period beginning on
the sixtieth day prior to the date on which such Limited Rights are exercised
and ending on the date on which such Limited Rights are exercised, over (b) the
Option Price per share of Common Stock subject to the Related Option, by (ii)
the number of shares of Common Stock with respect to which such Limited Rights
are being exercised.

         (e) For purposes of this Section 3.2, the term "Minimum Price Per
Share" will mean the highest gross price (before brokerage commissions and
soliciting dealers' fees) paid or to be paid for a share of Common Stock
(whether by way of exchange, conversion, distribution upon liquidation or
otherwise) in any Change in Control which is in effect at any time during the
period beginning on the sixtieth day prior to the date on which such Limited
Rights are exercised and ending on the date on which such Limited Rights are
exercised. For purposes of this definition, if the consideration paid or to be
paid in any such Change in Control will consist, in whole or in part, of
consideration other than cash, the Board will take such action, as in its
judgment it deems appropriate, to establish the cash value of such
consideration.

                                   ARTICLE IV
                               PERFORMANCE AWARDS

4.1      Nature of Performance Awards

         A Performance Award provides for the recipient to receive an amount in
cash or Stock or a combination thereof (such form to be determined by the
Committee) following the attainment of Performance Goals. Performance Goals may
be related to personal performance, corporate performance (including corporate
stock performance), departmental performance or any other category of
performance deemed by the Committee to be important to the success of the
Company. The Committee will determine the Performance Goals, the period or
periods during which performance is to be measured and all other terms and
conditions applicable to the Award.

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Regardless of the degree to which Performance Goals are attained, a Performance
Award will be paid only when, if and to the extent that the Committee determines
to make such payment.

4.2      Other Awards Subject to Performance Condition

         The Committee may, at the time any Award described in this Plan is
granted, impose the condition (in addition to any conditions specified or
authorized in the Plan) that Performance Goals be met prior to the Participant's
realization of any payment or benefit under the Award.

                                    ARTICLE V
                                RESTRICTED STOCK

5.1      Award of Restricted Stock

         The Committee may award to any Participant shares of Stock subject to
this Article V and such other terms and conditions as the Committee may
prescribe, such Stock referred to herein as "Restricted Stock."

         Each certificate for Restricted Stock will be registered in the name of
the Participant and deposited by him or her, together with a stock power
endorsed in blank, with the Corporation.

5.2      Restricted Stock Agreement

         Shares of Restricted Stock awarded under the Plan will be evidenced by
a written agreement in such form and containing such terms and conditions as the
Committee may determine.

5.3      Restriction Period

         At the time of award, there will be established for each Participant a
"Restriction Period" of such length as the Committee determines. The Restriction
Period may be waived by the Committee. Shares of Restricted Stock may not be
sold, assigned, transferred, pledged or otherwise encumbered, except as
hereinafter provided, during the Restriction Period. Subject to such restriction
on transfer, the Participant as owner of such shares of Restricted Stock will
have the rights of the holder of such Restricted Stock, except that the
Committee may provide at the time of the Award that any dividends or other
distributions paid on such Stock during the Restriction Period will be
accumulated and held by the Company and will be subject to forfeiture under
Section 5.4.

         Upon the expiration or waiver by the Committee of the Restriction
Period, the Corporation will redeliver to the Participant (or his or her legal
representative or designated beneficiary) the shares deposited pursuant to
Section 5.1.

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5.4      Termination of Eligibility

         Unless otherwise determined by the Committee, in the event the
Participant is no longer an Eligible Person and ceased to be such as a result of
termination of service to the Company with the consent of the Committee, or as a
result of his or her death, retirement or disability, the restrictions imposed
under this Article V will lapse with respect to such number of the shares
previously awarded to him or her as may be determined by the Committee. All
other shares of Restricted Stock previously awarded to him or her which are
still subject to restrictions, along with any dividends or other distributions
thereon that have been accumulated and held by the Company, will be forfeited,
and the Corporation will have the right to complete the blank stock power.

         Unless otherwise determined by the Committee, in the event the
Participant ceases to be an Eligible Person for any other reason, all shares of
Restricted Stock previously awarded to him or her which are still subject to
restrictions, along with any dividend or other distributions thereon that have
been accumulated and held by the Company, will be forfeited, and the Corporation
will have the right to complete the blank stock power.

                                   ARTICLE VI
                              DEFERRAL OF PAYMENTS

6.1      Deferral of Amounts

         If the Committee makes a determination to designate Awards or, from
time to time, groups or types of Awards, eligible for deferral hereunder, a
Participant may, subject to such terms and conditions and within such limits as
the Committee may from time to time establish, elect to defer the receipt of
amounts due to him or her under the Plan. Amounts so deferred are referred to
herein as "Deferred Amounts." The Committee may also permit amounts now or
hereafter deferred or available for deferral under any present or future
incentive compensation program or deferral arrangement of the Company to be
deemed Deferred Amounts and to become subject to the provisions of this Article.
Awards which are so deferred will be deemed to have been awarded in cash and the
cash deferred as Deferred Amounts.

         The period between the date on which the Participant's Deferred Amount
would have been payable absent deferral and the final payment of such Deferred
Amount will be referred to herein as the "Deferral Period."

6.2      Investment During Deferral Period

         Unless otherwise determined by the Committee, and subject to such
changes as the Committee may determine, the Deferred Amount will be treated
during the Deferral Period as if it were invested in putative convertible
debentures with a fixed interest rate, compounded annually, for the entire
Deferral Period. For purposes of determining the value of the Deferred

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Amount at the time of payment, each putative debenture will be deemed to be
convertible into Common Stock at a conversion rate computed by reference to the
Fair Market Value of the Common Stock on the last trading day prior to the
regular January meeting of the Board of Directors on or preceding the date of
deferral. Payment of Deferred Amounts may be made in cash, Stock, or partly in
cash and partly in Stock, in the Committee's sole discretion.

6.3      Participant Reports

         Annually, each Participant who has a Deferred Amount will receive a
report setting forth all of his or her then Deferred Amounts and the yield
thereon to date.

6.4      Payment of Deferred Amounts

         Payment of Deferred Amounts will be made at such time or times, and may
be in cash, Stock, or partly in cash and partly in Stock, as the Committee from
time to time determines. The limitations respecting the issuance of Stock or
other limitations on aggregate awards payable contained in the Annual
Performance Plan of the Corporation, Article XVI of the by-laws of the
Corporation, the 1974 Stock Option Plan, the 1979 Stock Option and Long-Term
Incentive Plan, the 1984 Long-Term Incentive Plan, the Plan and in any plan
hereafter adopted by the stockholders will be limitations applicable to the
payment of any Deferred Amounts under this Article VI.

6.5      Alternative Valuation Election

         Unless otherwise determined by the Committee, a Participant may, at a
time established by the Committee, but prior to such Participant's ceasing to be
an Eligible Person, elect to establish the ultimate payable value of each
Deferred Amount by reference to the Fair Market Value of the Common Stock as of
the day on which an alternate valuation election is received by the corporation
in accordance with procedures established by the Committee.

         Notwithstanding the establishment of the ultimate payable value
resulting from the alternate valuation election by the Participant, the yield
will continue as though no such election had been made and will continue to be
subject to the limitations set forth in Section 6.2, and Deferred Amounts and
the yield thereon will be paid as otherwise provided in this Article.

                                   ARTICLE VII
                               CHANGES IN CONTROL

7.1      Effect of Change in Control

         (a) Pre-July 28, 1999 Awards and Deferrals. With respect to Awards made
or granted pursuant to the Plan prior to July 28, 1999 and with respect to
amounts deferred under the Plan prior to July 28, 1999, notwithstanding any
other provision of the Plan, upon the occurrence of a

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Change in Control, as defined in Section 7.2: (i) if so provided in the
respective Stock Option Agreements, as they may be amended from time to time,
Options and, subject to the exercise provisions of Section 3.2(a) of the Plan,
Limited Rights, but not SARs, outstanding and unexercised on the date of the
Change in Control will become immediately exercisable; (ii) all Performance
Awards will be deemed to have been earned on such basis as the Committee may
prescribe and then paid on such basis, at such time and in such form as the
Committee may prescribe, or deferred in accordance with the elections of
Participants; (iii) all Restricted Stock will be deemed to be earned and the
Restriction Period will be deemed expired on such terms and conditions as the
Committee may determine; and (iv) all amounts deferred under this Plan will be
paid to a trustee or otherwise on such terms as the Committee may prescribe or
permit.

         (b) Post-July 28, 1999 Awards and Deferrals. With respect to Awards
made or granted pursuant to the Plan on or after July 28, 1999 and with respect
to amounts deferred under the Plan on or after July 28, 1999, the occurrence of
a Change in Control, as defined in Section 7.2, will have no effect on such
outstanding Awards and deferrals pursuant to the Plan (i) unless, with respect
to an Option or a Limited Right, otherwise provided in the applicable Stock
Option Agreement, as it may be amended from time to time, or (ii) unless the
Committee or the Board determines otherwise.

7.2      Definition of Change in Control

         Unless otherwise provided in an agreement or other document governing
the respective Award or Deferred Amount, as it may be amended from time to time,
the term "Change in Control" means the occurrence of one or more of the
following events: (a) there shall be consummated (i) any consolidation or merger
of the Corporation in which the Corporation is not the continuing or surviving
corporation or pursuant to which shares of the Common Stock would be converted
into cash, securities or other property, other than a merger of the Corporation
in which the holders of Common Stock immediately prior to the merger have the
same proportionate ownership of common stock of the surviving corporation
immediately after the merger, or (ii) any sale, lease, exchange or other
transfer (in one transaction or a series of related transactions) of all, or
substantially all, of the assets of the Corporation, or (b) the stockholders of
the Corporation shall approve any plan or proposal for the liquidation or
dissolution of the Corporation, or (c) (i) any person (as such term is defined
in Section 13(d) of the Exchange Act), corporation or other entity shall
purchase any Common Stock of the Corporation (or securities convertible into
Common Stock) for cash, securities or any other consideration pursuant to a
tender offer or exchange offer, unless, prior to the making of such purchase of
Common Stock (or securities convertible into Common Stock), the Board shall
determine that the making of such purchase shall not constitute a Change in
Control, or (ii) any person (as such term is defined in Section 13(d) of the
Exchange Act), corporation or other entity (other than the Corporation or any
benefit plan sponsored by the Corporation or any of its subsidiaries) shall be
the "beneficial owner" (as such term is defined in Rule 13d-3 under the Exchange
Act), directly or indirectly, of securities of the Corporation representing
twenty percent or more of the combined voting power of the Corporation's then
outstanding securities ordinarily (and apart from any rights accruing under
special circumstances) having the right to vote in the election of directors
(calculated as

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provided in Rule 13d-3(d) in the case of rights to acquire any such securities),
unless, prior to such person so becoming such beneficial owner, the Board shall
determine that such person so becoming such beneficial owner shall not
constitute a Change in Control, or (d) at any time during any period of two
consecutive years, individuals who at the beginning of such period constituted
the entire Board shall cease for any reason to constitute at least a majority
thereof, unless the election or nomination for election of each new director
during such two-year period was approved by a vote of at least two-thirds of the
directors then still in office who were directors at the beginning of such
two-year period.

                                  ARTICLE VIII
                               GENERAL PROVISIONS

8.1      Non-Transferability

         No Option, Limited Right, SAR, Performance Award or share of Restricted
Stock or Deferred Amount under the Plan will be transferable other than by will,
by the applicable laws of descent and distribution, or, if permitted by the
Company, by transfer to a properly designated beneficiary in the event of death.
All Awards and Deferred Amounts will be exercisable or received during the
Participant's lifetime only by such Participant or his or her legal
representative. Any transfer contrary to this Section 8.1 will nullify the
option, Limited Right, SAR, Performance Award or share of Restricted Stock, and
any attempted transfer of a Deferred Amount contrary to this Section 8.1 will be
void and of no effect.

8.2      Beneficiaries

         The Committee may, but need not, establish or authorize the
establishment of procedures not inconsistent with Section 8.1 under which a
Participant may designate a beneficiary or beneficiaries to hold, exercise
and/or receive amounts due under an Award or with respect to Deferred Amounts in
the event of the Participant's death.

8.3      Adjustments Upon Changes in Stock

         If there is any change in the Stock of the Company, through merger,
consolidation, reorganization, recapitalization, stock dividend, stock split,
split up, dividend in kind or other change in the corporate structure or
distribution to the stockholders, appropriate adjustments may be made by the
Board of Directors of the Company (or if the Company is not the surviving
corporation in any such transaction, the board of directors of the surviving
corporation) in the aggregate number and kind of shares subject to the Plan, and
the number and kind of shares and the price per share subject to outstanding
Options or which may be issued under outstanding Performance Awards or Awards of
Restricted Stock. Appropriate adjustments may also be made by the Board of
Directors or the Committee in the terms of any Awards under the Plan to reflect
such changes and to modify any other terms of outstanding Awards on an equitable
basis, including modifications of performance targets and changes in the length
of Performance Periods.

                                      -12-
<PAGE>

8.4      Conditions of Awards

         (a) Unless the Committee determines otherwise, either by waiving the
condition(s) or by limiting or otherwise amending the condition(s) with respect
to any specified Award or group of Awards, the rights of a Participant with
respect to any Award received under this Plan will be subject to the conditions
that, until the Participant has fully received all payments, transfers and other
benefits under the Award, he or she will (i) not engage, either directly or
indirectly, in any manner or capacity as advisor, principal, agent, partner,
officer, director, employee, member of any association or otherwise, in any
business or activity which is at the time competitive with any business or
activity conducted by the Company and (ii) be available, unless he or she has
died, at reasonable times for consultations at the request of the Company's
management with respect to phases of the business with which he or she is or was
actively connected during his or her employment, but such consultations will not
(except in the case of a Participant whose active service was outside the United
States) be required to be performed at any place or places outside of the United
States of America or during usual vacation periods or periods of illness or
other incapacity. In the event that either of the above conditions is applicable
(or is applicable as modified by the Committee) and is not fulfilled, the
Participant will forfeit all rights to any unexercised option or SAR, or any
Performance Award or Stock held which has not yet been determined by the
Committee to be payable or unrestricted (and any unpaid amounts equivalent to
dividends or other distributions or amounts equivalent to interest relating
thereto) as of the date of the breach of condition. Any determination by the
Board of Directors of the Corporation, which will act upon the recommendation of
the Chief Executive Officer, that the Participant is, or has, engaged in a
competitive business or activity as aforesaid or has not been available for
consultations as aforesaid or, if the Committee has modified such condition(s)
with respect to the Participant's Award, that the Participant has not complied
with such condition(s) as modified by the Committee will be conclusive.

         (b) This Section 8.4 will not apply to Limited Rights.

8.5      Use of Proceeds

         All cash proceeds from the exercise of options will constitute general
funds of the Company.

8.6      Tax Withholding

         The Company will withhold from any cash payment made pursuant to an
Award an amount sufficient to satisfy all statutory federal, state and local
withholding tax requirements (the "withholding requirements").

         In the case of an Award pursuant to which Stock may be delivered, the
Committee will have the right to require that the Participant or other
appropriate person remit to the Company an

                                      -13-
<PAGE>

amount sufficient to satisfy the statutory withholding requirements, or make
other arrangements satisfactory to the Committee with regard to such
requirements, prior to the delivery of any Stock. If and to the extent that such
withholding is required, the Committee may permit the Participant or such other
person to elect at such time and in such manner as the Committee provides to
have the Company hold back from the shares to be delivered, or to deliver to the
Company, Stock having a value calculated to satisfy the statutory withholding
requirement. In the alternative, the Committee may, at the time of grant of any
such Award, require that the Company withhold from any shares to be delivered
Stock with a value calculated to satisfy applicable statutory tax withholding
requirements.

8.7      Non-Uniform Determinations

         The Committee's determinations under the Plan, including without
limitation, (i) the determination of the Participants to receive Awards, (ii)
the form, amount, timing and payment of such Awards, (iii) the terms and
provisions of such Awards and (iv) the agreements evidencing the same, need not
be uniform and may be made by it selectively among Participants who receive, or
who are eligible to receive, Awards under the Plan, whether or not such
Participants are similarly situated.

8.8      Leaves of Absence; Transfers

         The Committee will be entitled to make such rules, regulations and
determinations as it deems appropriate under the Plan with respect to any leave
of absence from the Company granted to a Participant. Without limiting the
generality of the foregoing, the Committee will be entitled to determine (i)
whether or not any such leave of absence will be treated as if the Participant
ceased to be an Employee and (ii) the impact, if any, of any such leave of
absence on Awards under the Plan. In the event a Participant transfers within
the Company, such Participant will not be deemed to have ceased to be an
Employee for purposes of the Plan.

8.9      General Restriction

         (a) Each Award under the Plan will be subject to the condition that, if
at any time the Committee determines that (i) the listing, registration or
qualification of shares of Stock upon any securities exchange or under any state
or federal law, (ii) the consent or approval of any government or regulatory
body or (iii) an agreement by the Participant with respect thereto, is necessary
or desirable, then such Award will not be consummated in whole or in part unless
such listing, registration, qualification, consent, approval or agreement has
been effected or obtained free from any conditions not acceptable to the
Committee.

         (b) Shares of Common Stock for use under the provisions of this Plan
will not be issued until they have been duly listed, upon official notice of
issuance, upon the New York Stock Exchange and such other exchanges, if any, as
the Board of Directors of the Corporation determines, and a registration
statement under the Securities Act of 1933 with respect to such shares has
become, and is, effective.

                                      -14-
<PAGE>

8.10     Effective Date

         The Plan will be deemed effective as of December 4, 1991.

         No Award may be granted under the Plan after the Plan is terminated
pursuant to Section 8.11, but Awards previously made may extend beyond that date
and Reload Options and additional Reload Options provided for with respect to
original options outstanding prior to that date may continue unless the
Committee otherwise provides and subject to such additional terms and conditions
as the Committee may provide, and the provisions of Article VI of the Plan will
survive and remain effective as to all present and future Deferred Amounts until
such later date as the Committee or the Board of Directors may determine.

         The adoption of the Plan will not preclude the adoption by appropriate
means of any other stock option or other incentive plan for employees and/or
independent contractors.

8.11     Amendment, Suspension and Termination of Plan

         The Board of Directors may at any time or times amend the Plan for any
purpose which may at the time be permitted by law, or may at any time suspend or
terminate the Plan as to any further grants of Awards.

8.12     Certain Definitions

         (a) Unless otherwise determined by the Committee, the terms
"retirement" and "disability" as used under the Plan will be construed by
reference to the provisions of the Westinghouse Pension Plan or other similar
plan or program of the Company applicable to a Participant.

         (b) The term "Fair Market Value" as it relates to Common Stock means
the average of the high and low prices of the Common Stock as reported by the
Composite Tape of the New York Stock Exchange (or such successor reporting
system as the Committee may select) on the relevant date or, if no sale of the
Common Stock has been reported for that day, the average of such prices on the
next preceding day and the next following day for which there were reported
sales. The term "Fair Market Value" as it relates to Formula Value Stock will
mean the value determined by the Committee.

         (c) Unless otherwise determined by the Committee, the term "Subsidiary"
will mean, unless the context otherwise requires, any corporation (other than
the Corporation) in an unbroken chain of corporations beginning with the
corporation if each of the corporations other than the last corporation in such
chain owns stock possessing more than 50% of the voting power in one of the
other corporations in such chain.

                                      -15-
<PAGE>

         (d) "Formula Value Stock" means shares of a class or classes of stock
the value of which is derived from a formula established by the Committee which
reflects such financial measures as the Committee may determine. Such shares
will have such other characteristics as may be determined at time of their
authorization.

                                      -16-EXHIBIT 4.7

                                 CBS CORPORATION

                      DEFERRED COMPENSATION AND STOCK PLAN
                                  FOR DIRECTORS

                      (as amended as of February 24, 2000)

Section 1.        Introduction

         1.1 Establishment. CBS Corporation, a Pennsylvania corporation formerly
known as Westinghouse Electric Corporation (the "Company" or "CBS"), has
established the Deferred Compensation and Stock Plan for Directors, as amended
from time to time (the "Plan"), for those directors of the Company who are
neither officers (other than non-executive officers) nor employees of the
Company. The Plan provides, among other things, for the payment of specified
portions of the Annual Director's Fee and the Annual Board Chairman's Fee, if
applicable, in the form of Stock Options and Restricted Stock, the payment of
the Annual Committee Chair's Fee in the form of Restricted Stock, the granting
of Stock Options and Restricted Stock as additional Director compensation, and
the opportunity for the Directors to defer receipt of all or a part of their
cash compensation. Unless otherwise provided for herein, the term Company
includes CBS Corporation and its subsidiaries.

         1.2 Purposes. The purposes of the Plan are to encourage the Directors
to own shares of the Company's stock and thereby to align their interests more
closely with the interests of the other shareholders of the Company, to
encourage the highest level of Director performance, and to provide a financial
incentive that will help attract and retain the most qualified Directors.

Section 2.        Definitions

         2.1      Definitions. The following terms will have the meanings set
forth below:

          o       "Annual Board Chairman's Fee" means the annual amount (which
                  may be prorated) established from time to time by the Board as
                  the annual fee to be paid to the Board Chairman, if any, for
                  his or her services as Board Chairman.

          o       "Annual Committee Chair's Fee" means the annual amount (which
                  may be prorated for a Director serving as a committee chair
                  for less than a full year) established from time to time by
                  the Board as the annual fee to be paid to Directors for their
                  services as chairs of standing committees of the Board.

          o       "Annual Director's Fee" means the annual amount (which may be
                  prorated for a Director serving less than a full calendar
                  year, as in the case of a Director who will be retiring or not
                  standing for reelection at the annual meeting of shareholders
                  or a Director joining the Board (or otherwise first becoming a
                  Director) after the beginning of the year) established from
                  time to time by the Board as the annual fee to be paid to
                  Directors for their services as directors.

                                      -1-
<PAGE>

          o       "Attendance Percentage" for a Director with respect to a
                  particular Grant Year means the percentage of the aggregate of
                  all meetings of the Board and committees of which the Director
                  was a member held during the Grant Year (or, for Directors who
                  join the Board or otherwise first become Directors after the
                  beginning of the Grant Year, Directors who retire at the
                  annual meeting of shareholders (as described in the Company's
                  By-laws) held during the Grant Year, Directors who do not
                  stand for reelection at the annual meeting of shareholders
                  held during the Grant Year, or Directors who die during the
                  Grant Year, the aggregate of all such meetings held for the
                  portion of the Grant Year during which the Director served as
                  a director), excluding any meeting(s) not attended because of
                  illness, travel conditions, or other excused absences, which
                  were attended by the Director. Except as otherwise provided
                  below, in the event that a Director ceases to be a director at
                  any time during the Grant Year for any reason other than
                  retirement at the annual meeting of shareholders, not standing
                  for reelection at the annual meeting of shareholders, or
                  death, all meetings held during the Grant Year of the Board
                  and committees of which he was a member at the time of
                  termination of service will continue to be included as
                  meetings when calculating the Attendance Percentage.

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

          o       "Board Chairman" means the director who is the non-employee,
                  non-executive chairman of the Board, if any.

          o       "Cash Account" means the account established by the Company in
                  respect of each Director pursuant to Section 6.3(a) hereof and
                  to which deferred cash compensation has been or will be
                  credited pursuant to the Plan.

          o       "Cause" means any act of (i) fraud or intentional
                  misrepresentation or (ii) embezzlement, misappropriation or
                  conversion of assets or opportunities of the Company or any of
                  its direct or indirect majority-owned subsidiaries.

          o       "CBS" or "Company" means CBS Corporation, a Pennsylvania
                  corporation, and its successors.

          o       "CBS/Viacom Merger" means the merger of CBS Corporation and
                  Viacom Inc.

          o       "Change in Control" will have the meaning assigned to it in
                  Section 9.2 hereof.

          o       "Committee" means the Compensation Committee of the Board (or
                  any subcommittee thereof) or any successor committee
                  established by the Board, or any subcommittee thereof, in each
                  case consisting of two or more members each of whom is a
                  "non-employee director" as that term is defined by Rule 16b-3
                  under the Exchange Act, as such rule may be amended, or any
                  successor rule.

                                      -2-
<PAGE>

          o       "Common Stock Equivalent" means a hypothetical share of Stock
                  which will have a value on any date equal to the mean of the
                  high and low prices of the Stock as reported by the composite
                  tape of the New York Stock Exchange on that date, except as
                  otherwise provided under Section 9.1.

          o       "Common Stock Equivalent Award" means an award of Common Stock
                  Equivalents granted to a Director pursuant to Section 5 of the
                  Plan prior to its amendment as of April 26, 1995.

          o       "Debenture" means a hypothetical debenture of the Company that
                  has a face value of $100, bears interest at a rate equal to
                  the ten-year U.S. Treasury Bond rate (prior to January 1,
                  1995, the seven-year U.S. Treasury Bond rate) in effect the
                  week prior to the regular January meeting of the Board (or, if
                  no such meeting is held, the week prior to the first trading
                  day of the New York Stock Exchange in February) in the year in
                  respect of which deferred amounts are earned, and is
                  convertible into Stock at a conversion rate determined by
                  dividing $100 by the mean of the high and low prices of the
                  Stock as reported by the composite tape of the New York Stock
                  Exchange on the date the Debenture is credited to the Deferred
                  Debenture Account pursuant to Section 6.3 hereof.

          o       "Deferred Debenture Account" means the account established by
                  the Company pursuant to Section 6.3(c) hereof in respect of
                  each Director electing to defer cash compensation under the
                  Plan for 1997 and/or for an earlier year or years and to which
                  has been or will be credited Debentures and other amounts
                  pursuant to the Plan.

          o       "Deferred Stock Account" means the account established by the
                  Company in respect of each Director pursuant to Section 5.2
                  hereof and to which has been or will be credited Common Stock
                  Equivalents pursuant to the Plan.

          o       "Director" means a member of the Board who is neither an
                  officer nor an employee of the Company. For purposes of the
                  Plan, an employee is an individual whose wages are subject to
                  the withholding of federal income tax under Section 3401 of
                  the Internal Revenue Code, and an officer is an individual
                  elected or appointed by the Board or chosen in such other
                  manner as may be prescribed in the By-laws of the Company to
                  serve as such, other than a non-executive officer (such as the
                  Board Chairman).

          o       "Exchange Act" means the Securities Exchange Act of 1934, as
                  amended from time to time.

          o       "Fair Market Value" means the mean of the high and low prices
                  of the Stock as reported by the composite tape of the New York
                  Stock Exchange (or such successor reporting system as the
                  Committee may select) on the relevant date or, if no sale of
                  the Stock has been reported for that day, the average of such
                  prices on the next preceding day and the next following day
                  for which there were reported sales.

                                      -3-
<PAGE>

          o       "Grant Date" means, as to a Stock Option Award, the date of
                  grant pursuant to Section 7.1 and as to a Restricted Stock
                  Award, the date of grant pursuant to Section 8.1.

          o       "Grant Year" means, as to a particular award, the calendar
                  year in which the award was granted; provided, however, for
                  the year 2000, Grant Year will mean the calendar year 2000 or
                  the period from January 1, 2000 to and including the effective
                  date of the CBS/Viacom Merger, whichever is shorter.

          o       "Internal Revenue Code" means the Internal Revenue Code of
                  1986, as amended from time to time.

          o       "Option Vesting Date" will have the meaning assigned to it in
                  Section 7.2.

          o       "Restricted Stock" means shares of Stock awarded to a Director
                  pursuant to Section 8 and subject to certain restrictions in
                  accordance with the Plan.

          o       "Restricted Stock Award" means an award of shares of
                  Restricted Stock granted to a Director pursuant to Section 8
                  of the Plan.

          o       "Stock" means the common stock, $1.00 par value, of the
                  Company.

          o       "Stock Option" means a non-statutory stock option to purchase
                  shares of Stock for a purchase price per share equal to the
                  Exercise Price (as defined in Section 7.2(a)) in accordance
                  with the provisions of the Plan.

          o       "Stock Option Award" means an award of Stock Options granted
                  to a Director pursuant to Section 7 of the Plan.

          o       "Stock Option Value" means the value of a Stock Option for one
                  share of Stock on the relevant date as determined by the
                  Company.

          o       "Viacom" means Viacom Inc. and its successors.

         2.2      Gender and Number. Except when otherwise indicated by the
context, the masculine gender will also include the feminine gender, and the
definition of any term herein in the singular will also include the plural.

Section 3.         Plan Administration

                   (a) The Plan will be administered by the Committee. The
members of the Committee will be members of the Board appointed by the Board,
and any vacancy on the Committee will be filled by the Board or in a manner
authorized by the Board.

         The Committee will keep minutes of its meetings and of any action taken
by it without a meeting. A majority of the Committee will constitute a quorum,
and the acts of a majority of the

                                      -4-
<PAGE>

members present at any meeting at which a quorum is present will be the acts of
the Committee. Any action that may be taken at a meeting of the Committee may be
taken without a meeting if a consent or consents in writing setting forth the
action so taken is signed by all of the members of the Committee. The Committee
will make appropriate reports to the Board concerning the operations of the
Plan.

                   (b) Subject to the limitations of the Plan, the Committee
and/or the Board, will have the sole and complete authority: (i) to impose such
limitations, restrictions and conditions upon such awards as it deems
appropriate; (ii) to interpret the Plan and to adopt, amend and rescind
administrative guidelines and other rules and regulations relating to the Plan;
and (iii) to make all other determinations and to take all other actions
necessary or advisable for the implementation and administration of the Plan.
The Committee's or the Board's determinations on matters within its authority
will be conclusive and binding upon the Company and all other persons.

                   (c) The Company will be the sponsor of the Plan. All expenses
associated with the Plan will be borne by the Company.

Section 4.         Stock Subject to the Plan

         4.1       Number of Shares. 600,000 shares of Stock are authorized
for issuance under the Plan in accordance with the provisions of the Plan,
subject to adjustment and substitution as set forth in this Section 4. This
authorization may be increased from time to time by approval of the Board and,
if such approval is required, by the shareholders of the Company. The Company
will at all times during the term of the Plan retain as authorized and unissued
Stock at least the number of shares from time to time required under the
provisions of the Plan, or otherwise assure itself of its ability to perform its
obligations hereunder.

         4.2       Other Shares of Stock. Any shares of Stock that are subject
to a Common Stock Equivalent Award, a Stock Option Award, a Restricted Stock
Award or a Debenture and which are forfeited, any shares of Stock that for any
other reason are not issued to a Director, and any shares of Stock tendered by a
Director to pay the Exercise Price of a Stock Option will automatically become
available again for use under the Plan if Rule 16b-3 under the Exchange Act, as
such rule may be amended, or any successor rule, and interpretations thereof by
the Securities and Exchange Commission or its staff permit such share
replenishment.

                                      -5-
<PAGE>

         4.3       Adjustments Upon Changes in Stock. If there is any change
in the Stock and/or in the corporate structure of the Company, through merger,
consolidation, division, share exchange, combination, reorganization,
recapitalization, stock dividend, stock split, spin-off, split up, dividend in
kind or other change in the corporate structure or distribution to the
shareholders, appropriate adjustments may be made by the Committee (or, if the
Company is not the surviving corporation in any such transaction, the board of
directors of the surviving corporation) in the aggregate number and kind of
shares subject to the Plan, and the number and kind of shares which may be
issued under the Plan. Appropriate adjustments may also be made by the Committee
in the terms of any awards or Debentures under the Plan to reflect such changes
and to modify any other terms of outstanding awards on an equitable basis as the
Committee in its discretion determines.

Section 5.         Common Stock Equivalent Awards

         5.1       Grants of Common Stock Equivalent Awards. Common Stock
Equivalents equal to a fixed number of shares of Stock were granted
automatically to Directors on a formula basis under Section 5.1 of the Plan
prior to its amendment as of April 26, 1995. All Common Stock Equivalents
granted pursuant to Section 5.1 prior to its amendment as of April 26, 1995 are
subject to adjustment as provided in Section 4.3.

         5.2       Deferred Stock Account. A Deferred Stock Account has been
established for each Director elected prior to the annual meeting of
shareholders held in 1995. The Deferred Stock Account consists of compensation
in the form of Common Stock Equivalents which have been awarded to the Director
hereunder by the Company plus Common Stock Equivalents credited to the Deferred
Stock Account in respect of dividends and other distributions on the Stock
pursuant to Sections 5.3 and 5.4.

         5.3       Hypothetical Investment. Compensation awarded hereunder in
the form of Common Stock Equivalents is assumed to be a hypothetical investment
in shares of Stock, and is subject to adjustment to reflect stock dividends,
splits and reclassifications and as otherwise set forth in Section 4.3.

         5.4       Hypothetical Dividends. Dividends and other distributions
on Common Stock Equivalents will be deemed to have been paid as if such Common
Stock Equivalents were actual shares of Stock issued and outstanding on the
respective record or distribution dates. Common Stock Equivalents will be
credited to the Deferred Stock Account in respect of cash dividends and any
other securities or property issued on the Stock in connection with
reclassifications, spin-offs and the like on the basis of the value of the
dividend or other asset distributed and the value of the Common Stock
Equivalents on the date of the announcement of the dividend or asset
distribution, all at the same time and in the same amount as dividends or other
distributions are paid or issued on the Stock. Such Common Stock Equivalents are
subject to adjustment as provided in Section 4.3. Fractional shares will be
credited to a Director's Deferred Stock Account cumulatively but the balance of
shares of Common Stock Equivalents in a Director's Deferred Stock Account will
be rounded to the next highest whole share for any payment to such Director
pursuant to Section 5.6.

                                      -6-
<PAGE>

         5.5       Statement of Account. A statement will be sent to each
Director as to the balance of his Deferred Stock Account at least once each
calendar year.

         5.6       Payment of Deferred Stock. Unless the Board or the
Committee determines otherwise, upon termination of services as a Director, the
balance of the Director's Deferred Stock Account will be paid to such Director
in Stock in January of the year following the year of termination of services as
a director or, as elected by such Director in writing, in five, ten or fifteen
consecutive annual installments beginning in January of the year following the
year of termination of services as a director, on the basis of one share of
Stock for each Common Stock Equivalent in such Director's Deferred Stock
Account. For purposes of this Section 5.6, if a CBS director becomes a Viacom
director on the effective date of the CBS/Viacom Merger, he or she will not be
deemed to have terminated service as a director until he or she terminates
service as a director of Viacom.

         5.7       Payments to a Deceased Director's Estate. In the event of a
Director's death before the balance of his or her Deferred Stock Account is
fully paid to the Director, payment of the balance of the Director's Deferred
Stock Account will then be made to the beneficiary properly designated by the
Director pursuant to Section 5.8, if any, or to his or her estate in the absence
of such a beneficiary designation, in the time and manner selected by the
Committee. The Committee may take into account the application of any duly
appointed administrator or executor of a Director's estate and direct that the
balance of the Director's Deferred Stock Account be paid to his or her estate in
the manner requested by such application.

         5.8       Designation of Beneficiary. A Director may designate a
beneficiary in the event of the Director's death in a form approved by the
Company.

Section 6.         Deferral of Compensation

         6.1       Amount of Deferral. A Director may elect to defer receipt
of all or a specified portion of the cash compensation otherwise payable to the
Director for services rendered to the Company in any capacity as a director.

         6.2       Manner of Electing Deferral. A Director will make elections
permitted hereunder by giving written notice to the Company in a form approved
by the Committee and in compliance with Section 6.4. The notice will include:
(i) the percentage of cash compensation to be deferred, which amount must be
stated in whole increments of five percent; and (ii) the time as of which
deferral is to commence.

         6.3       Accounts.

                   (a) Cash Account. A Cash Account has been or will be
established for each Director electing to defer hereunder. Each Cash Account
will be credited with the amounts deferred on the date such compensation is
otherwise payable and will be debited with the amount of any such compensation
forfeited in accordance with applicable Board policy.

                                      -7-
<PAGE>

                   (b) Interest. Deferred amounts in the Cash Account will
accrue interest from time to time as follows:

                       (1) Pre-1998. For deferred amounts credited to the Cash
                   Account prior to January 1, 1998 (including but not limited
                   to Annual Director's Fees for the calendar year 1997), such
                   deferred amounts will accrue interest from time to time at a
                   rate equal to the ten-year U.S. Treasury Bond rate (prior to
                   January 1, 1995, the seven-year U.S. Treasury Bond rate) in
                   effect the week prior to the regular January meeting of the
                   Board (or, if no such meeting is held, the week prior to the
                   first trading day of the New York Stock Exchange in February)
                   in the year in respect of which such deferred amounts are
                   earned until the last trading day of the New York Stock
                   Exchange prior to the regular January meeting of the Board
                   (or, if no such meeting is held, until the first trading day
                   of February) in the year following the year in respect of
                   which deferred amounts are earned, at which time such
                   deferred amounts, including interest, will be invested in
                   Debentures and credited to the Deferred Debenture Account.
                   Deferred amounts will be credited to the Deferred Debenture
                   Account only in $100 amounts. Fractional amounts of $100 will
                   remain in the Cash Account and continue to accrue interest.

                       (2) 1998 and Thereafter. For deferred amounts credited to
                   the Cash Account on or after January 1, 1998 (and any
                   fractional amounts remaining in the Cash Account from prior
                   deferrals), unless otherwise determined by the Board or the
                   Committee prior to the deferral date such deferred amounts
                   will accrue interest from time to time at the Interest Credit
                   Rate then in effect, compounded annually. The "Interest
                   Credit Rate" will be reset by the Company on an annual basis
                   in January of the year, and will equal the then current
                   one-year U.S. Treasury Bill rate or such other fixed rate as
                   the Committee may from time to time determine.

                   (c) Deferred Debenture Account. A Deferred Debenture Account
has been established for each Director electing to defer cash compensation
hereunder for the calendar year 1997 and/or for an earlier year or years.
Deferred amounts credited to the Cash Account prior to January 1, 1998 will be
invested in Debentures and credited to the Deferred Debenture Account at the
time and in the manner set forth in Section 6.3(b)(1). Deferred amounts credited
to the Cash Account on or after January 1, 1998 will not be invested in
Debentures but will remain in the Cash Account and accrue interest until payment
hereunder.

         6.4       Time for Electing Deferral. Any election to (i) defer cash
compensation, (ii) alter the portion of such amounts deferred, or (iii) revoke
an election to defer such amounts, must be made prior to the time such
compensation is earned by the Director and otherwise in compliance with any
deadline which the Company may from time to time impose and in the manner set
forth in Section 6.2.

         6.5       Payment of Deferred Amounts. Unless the Board or the
Committee determines otherwise, upon termination of services as a Director,
payments from a Deferred Debenture

                                      -8-
<PAGE>

Account and/or from a Cash Account will be made in five consecutive annual
installments beginning in the January following the Director's termination of
service or, if elected by such Director in writing, such payments may be made in
ten or fifteen consecutive annual installments or may be made in lump sum in the
January following the Director's termination of services. For purposes of this
Section 6.5, if a CBS director becomes a Viacom director on the effective date
of the CBS/Viacom Merger, he or she will not be deemed to have terminated
service as a Director until he or she terminates service as a director of
Viacom.

         Payments from a Deferred Debenture Account will consist of accumulated
interest on the Debentures (which amount will only be payable in cash) plus the
greater value of (i) the face value of the Debentures or (ii) the shares of
Stock into which the Debentures are convertible. In the event the value of the
payment is determined by the amount referred to in clause (i), payment will be
made in cash. In the event such value is determined by clause (ii), such payment
will be made in Stock, other than the value of fractional shares which will be
paid in cash.

         Payments from a Cash Account will consist of the deferred cash
compensation and accumulated interest in said account and will be made in cash.

         6.6       Payments to a Deceased Director's Estate. In the event of a
Director's death before the balance of his or her Cash Account or Deferred
Debenture Account is fully paid to the Director, payment of the balance of the
Cash Account or Deferred Debenture Account will then be made to the beneficiary
properly designated by the Director pursuant to Section 6.7, if any, or to his
or her estate in the absence of such a beneficiary designation, in the time and
manner selected by the Committee. The Committee may take into account the
application of any duly appointed administrator or executor of a Director's
estate and direct that the balance of the Director's Cash Account or Deferred
Debenture Account be paid to his or her estate in the manner requested by such
application.

         6.7       Designation of Beneficiary. A Director may designate a
beneficiary in the event of the Director's death in a form approved by the
Company.

Section 7.         Stock Option Awards

         7.1       Grants of Stock Option Awards.

                   (a) For calendar year 1995, Stock Options for a fixed number
of shares of Stock were granted automatically to Directors on a formula basis
under Section 7.1(a) of the Plan.

                   (b) For calendar year 1995, Stock Options for a fixed number
of shares of Stock were granted automatically on a formula basis under Section
7.1(b) of the Plan to Directors serving as chairs of standing committees of the
Board.

                   (c) For calendar years 1996 and 1997, Stock Options were
granted automatically under Section 7.1(c) of the Plan to Directors for
one-fourth of the value of their Annual Director's Fees.

                                      -9-
<PAGE>

                   (d) Annual Director's Fee Grants. Beginning with calendar
year 1998, unless otherwise determined by the Board or the Committee each
Director will receive 5/16ths (31.25%) of the value of his or her Annual
Director's Fee in the form of a Stock Option Award. Such Stock Options will be
granted automatically each year on the last Wednesday in January of such year to
each Director in office on such Grant Date.

         If a person joins the Board or otherwise first becomes a Director at
any time after the last Wednesday in January of a given calendar year (beginning
with 1998) but before the end of that calendar year, whether by action of the
shareholders of the Company or the Board or otherwise, unless otherwise
determined by the Board or the Committee such person upon becoming a Director
will be granted automatically 5/16ths (31.25%) of the value of his or her Annual
Director's Fee for that calendar year (which may be prorated) in the form of a
Stock Option Award on the last Wednesday of the calendar month in which such
person first becomes a Director (or in the next following calendar month if such
person first becomes a Director after the last Wednesday of the month). The
total number of shares of Stock subject to any such Stock Option Award will be
the number of shares determined by dividing the amount of the Annual Director's
Fee to be paid in the form of a Stock Option Award by the Stock Option Value on
the Grant Date, rounded up to the nearest whole share.

                   (e) Annual Board Chairman's Fee Grants. Beginning with
calendar year 1999, unless otherwise determined by the Board or the Committee,
the Board Chairman, if any, will receive 5/16ths (31.25%) of the value of his or
her Annual Board Chairman's Fee in the form of a Stock Option Award, and such
Stock Options will be granted automatically each year on the last Wednesday in
January of such year to the Board Chairman in office on such Grant Date, if any.

         If a director becomes Board Chairman at any time after the last
Wednesday in January of a given calendar year (beginning with calendar year
1999) but before the end of that calendar year, whether by action of the Board
or otherwise, unless otherwise determined by the Board or the Committee such
director upon so becoming the Board Chairman will be granted automatically
5/16ths (31.25%) of the value of his or her Annual Board Chairman's Fee for that
calendar year (which may be prorated) in the form of a Stock Option Award on the
last Wednesday of the calendar month in which such person first becomes Board
Chairman (or in the next following calendar month if such person first becomes
Board Chairman after the last Wednesday of the month). The total number of
shares of Stock subject to any such Stock Option Award will be the number of
shares determined by dividing the amount of the Annual Board Chairman's Fee to
be paid in the form of a Stock Option Award by the Stock Option Value on the
Grant Date, rounded up to the nearest whole share.

                   (f) Other Stock Option Grants. Beginning with calendar year
1999, the Board or the Committee may, from time to time, grant Stock Option
Awards to one or more Directors or to the Board Chairman for such number of
shares as the Board or the Committee may determine as additional compensation to
such Director or Directors or to such Board Chairman for their services as such.

                                      -10-
<PAGE>

                   (g) All Stock Options granted pursuant to Section 7.1 are
subject to adjustment as provided in Section 4.3.

         7.2       Terms and Conditions of Stock Options. Unless otherwise
determined by the Board or the Committee, Stock Options granted under the Plan
will be subject to the following terms and conditions:

                   (a) Exercise Price. Beginning with Stock Options granted in
calendar year 1998 and thereafter, the purchase price per share at which a Stock
Option may be exercised ("Exercise Price") will be equal to the Fair Market
Value of a share of Stock on the Grant Date. Notwithstanding anything herein to
the contrary, in no event may the Board or the Committee establish an Exercise
Price that is less than the Fair Market Value of a share of Stock on the Grant
Date.

         For Stock Options granted in 1995, 1996 and 1997, the Exercise Price
was determined as follows: on any Grant Date, (1) Stock Options for two-thirds
of the option shares granted on the Grant Date had an Exercise Price per share
equal to 100% of the Fair Market Value of a share of Stock on the Grant Date;
and (2) Stock Options for the remaining one-third of the option shares granted
on the Grant Date had an Exercise Price per share equal to 125% of the Fair
Market Value of a share of Stock on the Grant Date.

                   (b) Exercisability. Subject to the terms and conditions of
the Plan and of the agreement referred to in Section 7.2(j), a Stock Option may
be exercised in whole or in part upon notice of exercise to the Company: (1) as
to any Stock Option granted in calendar year 1995, commencing on the first day
after the Grant Date and until it terminates; and (2) as to any Stock Option
granted after January 1, 1996 that vests as provided in Section 7.2(c)(2),
7.2(c)(3) or 7.2(c)(4), commencing on January 1 of the calendar year next
following the Grant Year (the "Option Vesting Date") or, if so provided in the
relevant Stock Option Agreement, upon the occurrence of a Change in Control, if
earlier, and until it terminates. During a Director's lifetime, a Stock Option
may be exercised only by the Director or the Director's guardian or legal
representative. The Committee or the Board may at any time and from time to time
accelerate the time at which all or any part of a Stock Option may be exercised.

                   (c) Vesting of Stock Option Awards.

                   (1) Stock Options granted in calendar year 1995 vested
immediately on grant.

                   (2) Annual Director's Fee Grants. Except as otherwise set
forth in Section 7.1(c)(4), Stock Options granted as part of a Director's Annual
Director's Fee after January 1, 1996 will vest on the Option Vesting Date if the
Director has an Attendance Percentage of at least seventy-five percent (75%) for
the Grant Year. The Committee or the Board may at any time or from time to time
accelerate the vesting of all or any part of a Stock Option.

                                      -11-
<PAGE>

         In the event that a Director has an Attendance Percentage of less than
seventy-five percent (75%) for a Grant Year, Stock Options granted in that Grant
Year for a number of shares equal to the Director's Attendance Percentage for
that year multiplied by the total number of option shares granted for that year
(rounded up to the nearest whole share) will vest on the Option Vesting Date,
and Stock Options granted in that Grant Year as to the remaining option shares
will be forfeited and will terminate as of the Option Vesting Date.

                   (3) Annual Board Chairmen's Fee Grants and Other Grants.
Except as otherwise set forth in Section 7.1(c)(4), Stock Options granted as
part of an Annual Board Chairman's Fee, if any, or granted to a Director or to
the Board Chairman, if any, pursuant to Section 7.1(f) will vest on the Option
Vesting Date.

                   (4) Notwithstanding anything to the contrary herein, (i) in
the event that a director is removed for Cause from office as a director of the
Company (and/or, in the case of Stock Options granted to a director in his or
her capacity as Board Chairman, from office as Board Chairman, if applicable),
all outstanding Stock Options will be forfeited immediately as of the time the
grantee is so removed from office, (ii) if so provided in the relevant Stock
Option Agreement or if the Committee or the Board so determines with respect to
a Stock Option or Options, upon the occurrence of a Change in Control, all such
outstanding Stock Options will vest and become immediately exercisable, and
(iii) for any Director who, at the effective date of the CBS/Viacom Merger is
not a director of Viacom, Stock Options granted in calendar year 2000 as part of
such Director's Annual Director's Fee and Stock Options granted in calendar year
2000 to such Director, if any, pursuant to Section 7.1(f) will vest and become
immediately exercisable at the effective time of the CBS/Viacom Merger.

                   (d) Mandatory Holding of Stock. Except as otherwise provided
in Section 7.5 or Section 10 or unless waived by the Committee or the Board, any
Stock acquired on exercise of a Stock Option must be held by the grantee for a
minimum of: (1) three years from the date of exercise; (2) two years from the
date the grantee ceases to be a director of the Company; or (3) if so provided
in the relevant Stock Option Agreement or if the Committee or the Board so
determines with respect to a Stock Option or Options, until the occurrence of a
Change in Control, whichever first occurs (the "Option Shares Holding Period").
Notwithstanding the foregoing or anything to the contrary contained in any Stock
Option agreement, upon the effective time of the CBS/Viacom Merger, the Option
Shares Holding Period for any Stock acquired or to be acquired on exercise of a
Stock Option shall terminate.

                   (e) Option Term. The term of a Stock Option (the "Option
Term") will be the shorter of: (1) the period of ten years from its Grant Date;
(2) the period from the Grant Date until the Option Vesting Date for a Stock
Option that does not vest and is terminated on said date as provided in Section
7.2(c)(2), if applicable (or with respect to any portion of a Stock Option that
does not vest on the Option Vesting Date and is terminated as provided in
Section 7.2(c)(2), if applicable); (3) the period from the Grant Date until the
time the Stock Option is forfeited as provided in Section 7.2(c)(4)(i) in the
event a director is removed from office as a director of the Company and/or as
Board Chairman, if applicable, for Cause; or (4) the period from the Grant Date
until the date the Stock Option ceases to be exercisable as provided in Section
7.2(h).

                                      -12-
<PAGE>

                   (f) Payment of Exercise Price. Stock purchased on exercise of
a Stock Option must be paid for as follows: (1) in cash or by check (acceptable
to the Company), bank draft or money order payable to the order of the Company,
(2) through the delivery of shares of Stock which are then outstanding and which
have a Fair Market Value on the date of exercise equal to the Exercise Price per
share multiplied by the number of shares as to which the Stock Option is being
exercised (the "Aggregate Exercise Price"); (3) by delivery of an unconditional
and irrevocable undertaking by a broker to deliver promptly to the Company
sufficient funds to pay the Aggregate Exercise Price, or (4) by a combination of
the permissible forms of payment; provided, however, that any portion of the
Exercise Price representing a fraction of a share must be paid in cash and no
share of Stock held for less than six months may be delivered in payment of the
Aggregate Exercise Price.

                   (g) Rights as a Shareholder. The holder of a Stock Option
will not have any of the rights of a shareholder with respect to any shares of
Stock subject to the Stock Option until such shares are issued by the Company
following the exercise of the Stock Option.

                   (h) Termination of Eligibility. If a grantee ceases to be a
director and/or ceases to be Board Chairman, if applicable, for any reason, any
outstanding Stock Options will be exercisable according to the following
provisions:

                   (1) If a grantee ceases to be a director and/or ceases to be
Board Chairman, if applicable, for any reason other than removal for Cause or
death, any outstanding Stock Options held by such grantee which are vested or
which thereafter vest will be exercisable by the grantee in accordance with
their terms at any time prior to the expiration of the Option Term;

                   (2) If a grantee is removed from office as a director of the
Company and/or as Board Chairman, if applicable, for Cause, any outstanding
vested Stock Options held by such grantee will be exercisable by the grantee in
accordance with their terms at any time prior to the earlier of (a) the time the
grantee is so removed from office and (b) the expiration of the Option Term; and

                   (3) Following the death of a grantee while a director and/or
while Board Chairman, if applicable, or after the grantee ceased to be a
director and/or ceased to be Board Chairman, if applicable, for any reason other
than removal for Cause, any Stock Options that are outstanding and exercisable
by such grantee at the time of death or which thereafter vest will be
exercisable in accordance with their terms by the person or persons entitled to
do so under the grantee's will, by a beneficiary properly designated by the
director in the event of death pursuant to Section 7.4, if any, or by the person
or persons entitled to do so under the applicable laws of descent and
distribution at any time prior to the earlier of (a) the expiration of the
Option Term and (b) two years after the date of death.

                   (i) Termination of Stock Option. A Stock Option will
terminate on the earlier of (1) exercise of the Stock Option in accordance with
the terms of the Plan, and (2) expiration of the Option Term as specified in
Sections 7.2(e) and 7.2(h).

                                      -13-
<PAGE>

                   (j) Stock Option Agreement. All Stock Options will be
confirmed by an agreement, or an amendment thereto, which will be executed on
behalf of the Company by the Chief Executive Officer, the President or any Vice
President and by the grantee.

                   (k) General Restrictions.

                   (1) The obligation of the Company to issue Stock pursuant to
Stock Options under the Plan will be subject to the condition that, if at any
time the Company determines that (a) the listing, registration or qualification
of shares of Stock upon any securities exchange or under any state or federal
law, or (b) the consent or approval of any government or regulatory body is
necessary or desirable, then such Stock will not be issued unless such listing,
registration, qualification, consent or approval has been effected or obtained
free from any conditions not acceptable to the Company.

                   (2) Shares of Stock for use under the provisions of this
Section 7 will not be issued until they have been duly listed, upon official
notice of issuance, upon the New York Stock Exchange and such other exchanges,
if any, as the Board may determine, and a registration statement under the
Securities Act of 1933 with respect to such shares has become, and is,
effective.

         Subject to the foregoing provisions of this Section 7.2 and the other
provisions of the Plan, any Stock Option granted under the Plan will be subject
to such restrictions and other terms and conditions, if any, as the Board and/or
the Committee may determine, in its or their discretion, and as are set forth in
the agreement referred to in Section 7.2(j), or an amendment thereto; provided,
however, that in no event will the Committee or the Board have any power or
authority which would cause transactions pursuant to the Plan to cease to be
exempt from the provisions of Section 16(b) of the Exchange Act pursuant to Rule
16b-3, as such rule may be amended, or any successor rule.

         7.3       Annual Statement. A statement will be sent to each Director
as to the status of his or her Stock Options at least once each calendar year.

         7.4       Designation of a Beneficiary. A Director may designate a
beneficiary to hold and exercise outstanding Stock Options in accordance with
the Plan in the event of the Director's death in a form approved by the Company.

         7.5       Holding Period Applicable to a Deceased Grantee's Estate.
As long as at least six months have elapsed since the Grant Date, a beneficiary
properly designated by the Director pursuant to Section 7.4, if any, or a person
holding a Stock Option under a deceased grantee's will or under the applicable
laws of descent or distribution, exercising a Stock Option in accordance with
Section 7.2(h) will not be subject to the Holding Period with respect to shares
of Stock received on exercise of a Stock Option.

Section 8.         Restricted Stock Awards.

         8.1       Grants of Restricted Stock Awards.

                                      -14-
<PAGE>

                   (a) Annual Director's Fee Grants. For calendar years 1996 and
1997, each Director received one-fourth of the value of his or her Annual
Director's Fee in the form of a Restricted Stock Award.

         Beginning with calendar year 1998, unless otherwise determined by the
Board or the Committee each Director will receive 5/16ths (31.25%) of the value
of his or her Annual Director's Fee in the form of a Restricted Stock Award, and
such Restricted Stock will be granted automatically each year on the last
Wednesday in January of such year to each Director in office on such Grant Date.

         If a person joins the Board or otherwise first becomes a Director at
any time after the last Wednesday in January of a given calendar year (beginning
with 1998) but before the end of that calendar year, whether by action of the
shareholders of the Company or the Board or otherwise, unless otherwise
determined by the Board or the Committee such person upon becoming a Director
will be granted automatically 5/16ths (31.25%) of the value of his or her Annual
Director's Fee for that calendar year (which may be prorated) in the form of a
Restricted Stock Award on the last Wednesday in the calendar month in which such
person first becomes a Director (or in the next following calendar month if said
person first becomes a Director after the last Wednesday of the month).

                   (b) Annual Committee Chair's Fee Grants. Beginning with
calendar year 1996, unless otherwise determined by the Board or the Committee
each Director who is the chair of a standing committee of the Board will receive
the full value of his or her Annual Committee Chair's Fee in the form of a
Restricted Stock Award, and such Restricted Stock will be granted automatically
each year immediately following the annual meeting of shareholders and the
organization meeting of the Board related to such annual meeting of
shareholders, beginning with the annual meeting of shareholders and related
organization meeting held in 1996, to each Director who is elected at such
organization meeting to serve as the chair of a standing committee of the Board.

         Beginning after the 1998 organization meeting of the Board, if a
Director is elected to serve as the chair of a standing committee of the Board
at any time after the organization meeting of the Board held in connection with
the annual meeting of shareholders for a given year but before the next
organization meeting of the Board is held, unless otherwise determined by the
Board or the Committee such Director will, upon so becomming a committee chair,
receive the value of his or her Annual Committee Chair's Fee for that year
(which may be prorated) in the form of a Restricted Stock Award on the later of:
(1) the last Wednesday in the calendar month in which such Director becomes a
standing committee chair (or in the next following calendar month if said
Director becomes a standing committee chair after the last Wednesday of the
month); and (2) January 27, 1999.

                   (c) Annual Board Chairman's Fee Grants. Beginning with
calendar year 1999, unless otherwise determined by the Board or the Committee,
the Board Chairman, if any, will receive 5/16ths (31.25%) of the value of his or
her Annual Board Chairman's Fee in the form of a Restricted Stock Award, and
such Restricted Stock will be granted automatically each year

                                      -15-
<PAGE>

on the last Wednesday in January of such year to the Board Chairman in office on
such Grant Date, if any.

         If a director becomes Board Chairman at any time after the last
Wednesday in January of a given calendar year (beginning with calendar year
1999) but before the end of that calendar year, whether by action of the Board
or otherwise, unless otherwise determined by the Board or the Committee such
director upon so becoming the Board Chairman will receive 5/16ths (31.25%) of
the value of his or her Annual Board Chairman's Fee for that year (which may be
prorated) in the form of a Restricted Stock Award on the last Wednesday in the
calendar month in which such director becomes the Board Chairman (or in the next
following calendar month if said director becomes Board Chairman after the last
Wednesday of the month.

                   (d) The total number of shares of Stock representing any such
Restricted Stock Award will be the number of shares determined by dividing the
amount of the Annual Director's Fee, the Annual Committee Chair's Fee or the
Annual Board Chairman's Fee, as the case may be, to be paid in the form of a
Restricted Stock Award by the Fair Market Value of a share of Stock on the Grant
Date, rounded up to the nearest whole share.

                   (e) Other Restricted Stock Grants. Beginning with calendar
year 1999, the Board or the Committee may, from time to time, grant Restricted
Stock Awards to one or more Directors or to the Board Chairman for such number
of shares of Restricted Stock as the Board or the Committee may determine as
additional compensation to such Director or Directors or to such Board Chairman
for their services as such.

                   (f) Restricted Stock granted pursuant to Section 8.1 is
subject to adjustment as provided in Section 4.3.

         8.2       Terms and Conditions of Restricted Stock. Unless otherwise
determined by the Board or the Committee, Restricted Stock granted under the
Plan will be subject to the following terms and conditions:

                   (a) Restriction Period. Restricted Stock will be subject to a
Restriction Period ("Restriction Period") beginning on the Grant Date and
continuing through December 31 of the calendar year in which the Grant Date
occurred.

                   (b) Vesting.

                   (1) Annual Director's Fee Grants. Except as set forth in
Section 8.2(b)(3), a Director's right to ownership in shares of Restricted Stock
granted to a Director pursuant to Section 8.1(a) will vest on the January 1
immediately following the expiration of the Restriction Period for such shares
(the "Restricted Stock Vesting Date") if the Director has an Attendance
Percentage of at least seventy-five percent (75%) for the Grant Year. The
Committee or the Board may at any time or from time to time waive the
Restriction Period or accelerate the vesting of shares of Restricted Stock.

                                      -16-
<PAGE>

         In the event that a Director has an Attendance Percentage of less than
seventy-five percent (75%) for a Grant Year, a number of shares of Restricted
Stock equal to the Director's Attendance Percentage for the Grant Year
multiplied by the total number of shares of Restricted Stock granted pursuant to
Section 8.1(a) during the Grant Year (rounded up to the nearest whole share)
will vest on the Restricted Stock Vesting Date and the remaining shares of
Restricted Stock granted pursuant to Section 8.1(a) during the Grant Year will
be forfeited as of the Restricted Stock Vesting Date.

                   (2) Annual Committee Chair's Fee Grants, Annual Board
Chairman's Fee Grants, and Other Grants. Except as set forth in Section
8.2(b)(3) below, a Director's right to ownership in shares of Restricted Stock
granted to a Director pursuant to Section 8.1(e), to a committee chair pursuant
to Section 8.1(b), or to the Board Chairman, if any, pursuant to Section 8.1(c)
will vest on the Restricted Stock Vesting Date.

                   (3) Notwithstanding anything to the contrary herein, (i) in
the event that a director is removed for Cause from office as a director of the
Company (and/or in the case of Restricted Stock granted to a director in his or
her capacity as Board Chairman, from office as Board Chairman, if applicable)
prior to the Restricted Stock Vesting Date, all of said Director's shares of
Restricted Stock that have not yet vested will be forfeited immediately as of
the time the grantee is so removed from office and the Company will have the
right to complete the blank stock power described below with respect to such
shares, (ii) if so provided in the relevant Restricted Stock Agreement or if the
Committee or the Board so determines with respect to a share or shares of
Restricted Stock, upon the occurrence of a Change in Control, all such shares of
Restricted Stock that have not yet vested will immediately vest, and (iii) for
any Director who, at the effective date of the CBS/Viacom Merger is not a
director of Viacom, Restricted Stock granted in calendar year 2000 pursuant to
section 8.1(e) or 8.2(b), if any, will at the effective time of the CBS/Viacom
Merger, immediately vest.

                   (c) Issuance of Shares. On or about the Grant Date, a
certificate representing the shares of Restricted Stock will be registered in
the Director's name and deposited by the Director, together with a stock power
endorsed in blank, with the Company. Subject to the transfer restrictions set
forth in Section 8.2(d) and to the last sentence of this Section 8.2(c), the
Director as owner of shares of Restricted Stock will have the rights of the
holder of such Restricted Stock during the Restriction Period. On the Restricted
Stock Vesting Date following expiration of the Restriction Period, vested shares
of Restricted Stock will be redelivered by the Company to the Director, and
non-vested shares of Restricted Stock will be forfeited and the Company will
have the right to complete the blank stock power with respect to such non-vested
shares; provided, however, with respect to shares of Restricted Stock granted in
1996 prior to shareholder approval of an amendment to the Plan on April 24,
1996, no certificates were issued, such shares were not issued and outstanding,
and the Directors did not have any of the rights of an owner of the shares until
the date such shareholder approval occurred.

                   (d) Transfer Restrictions; Mandatory Holding of Stock. Except
as otherwise provided in Section 8.5 or Section 10, shares of Restricted Stock
are not transferable during the Restriction Period. Once the Restriction Period
lapses and shares vest, except as otherwise

                                      -17-
<PAGE>

provided in Section 8.5 or Section 10 or unless waived by the Committee or the
Board, shares acquired as a Restricted Stock Award must be held by the grantee
for a minimum of: (1) three years from the Grant Date; (2) two years from the
date the grantee ceases to be a director of the Company; or (3) if so provided
in the relevant Restricted Stock Agreement or if the Committee or the Board so
determines with respect to a share or shares of Restricted Stock, until the
occurrence of a Change of Control, whichever first occurs (the "Restricted
Shares Holding Period"). Notwithstanding the foregoing or anything to the
contrary contained in any Restricted Stock agreement, upon the effective time of
the CBS/Viacom Merger, the Restricted Shares Holding Period for any Restricted
Stock acquired as a Restricted Stock Award shall terminate.

                   (e) Restricted Stock Agreement. All Restricted Stock Awards
will be confirmed by an agreement, or an amendment thereto, which will be
executed on behalf of the Company by the Chief Executive Officer, the President
or any Vice President and by the grantee.

                   (f) General Restriction.

                   (1) The obligation of the Company to issue shares of
Restricted Stock under the Plan will be subject to the condition that if, at any
time, the Committee determines that (a) the listing, registration or
qualification of shares of Restricted Stock upon any securities exchange or
under any state or federal law or (b) the consent or approval of any government
or regulatory body is necessary or desirable, then such Restricted Stock will
not be issued unless such listing, registration, qualification, consent or
approval has been effected or obtained free from any conditions not acceptable
to the Company.

                   (2) Shares of Stock for use under the provisions of this
Section 8 will not be issued until they have been duly listed, upon official
notice of issuance, upon the New York Stock Exchange and such other exchanges,
if any, as the Board may determine, and a registration statement under the
Securities Act of 1933 with respect to such shares has become, and is,
effective.

         Subject to the foregoing provisions of this Section 8.2 and the other
provisions of the Plan, any shares of Restricted Stock granted under the Plan
will be subject to such restrictions and other terms and conditions, if any, as
the Board or the Committee may be determine, in its discretion, and as are set
forth in the agreement referred to in Section 8.2(e), or an amendment thereto;
provided, however, that in no event will either the Committee or the Board have
any power or authority which would cause transactions pursuant to the Plan to
cease to be exempt from the provisions of Section 16(b) of the Exchange Act
under Rule 16b-3, as such rule may be amended, or any successor rule.

         8.3       Annual Statement. A statement will be sent to each Director
as to the status of his or her Restricted Stock at least once each calendar
year.

         8.4       Designation of a Beneficiary. A Director may designate a
beneficiary to hold shares of Restricted Stock in accordance with the Plan in
the event of the Director's death in a form approved by the Company.

                                      -18-
<PAGE>

         8.5       Holding Period Applicable to a Deceased Grantee's Estate.
As long as at least six months have elapsed since the Grant Date, a beneficiary
properly designated by the Director pursuant to Section 8.4 in the event of
death, if any, or a person holding shares of Restricted Stock under a deceased
grantee's will or under the applicable laws of descent or distribution, will not
be subject to the Restricted Shares Holding Period with respect to such shares
of Restricted Stock.

Section 9.         Change in Control

         9.1       Settlement of Compensation. In the event of a Change in
Control of the Company as defined herein: (a) with respect to awards and other
benefits made or granted pursuant to the Plan prior to July 28, 1999, to the
extent not already vested, all Stock Option Awards, Restricted Stock Awards and
other benefits hereunder will be vested immediately (provided, however, that
with respect to awards and other benefits made or granted pursuant to the Plan
on or after July 28, 1999, the occurrence of a Change in Control will have no
effect on such outstanding awards or benefits pursuant to the Plan unless
otherwise provided in an agreement governing the award or other benefit or
unless the Committee or the Board determines otherwise); and (b) the value of
all unpaid Common Stock Equivalents and deferred amounts (whether deferred
before or after July 28, 1999) will be paid in cash to PNC Bank, National
Association, the trustee pursuant to a trust agreement dated as of June 22,
1995, as amended from time to time, or any successor trustee, or otherwise on
such terms as the Committee may prescribe or permit. For purposes of this
Section 9.1: the value of unpaid Common Stock Equivalents and deferred amounts
will be equal to the sum of (i) the value of all Common Stock Equivalent Awards
then held in such Director's Deferred Stock Account (the value of which will be
based upon the highest price of the Stock as reported by the composite tape of
the New York Stock Exchange during the 30 days immediately preceding the Change
in Control), (ii) the value of the Director's Cash Account, and (iii) the
greater value of (x) the cash amount equal to the face value of the Debentures
in the Director's Deferred Debenture Account plus cash equal to accrued interest
on the Debentures or (y) the number of shares of Stock into which the Debentures
in the Director's Deferred Debenture Account are convertible (the value of which
will be based upon the highest price of the Stock as reported by the composite
tape of the New York Stock Exchange during the 30 days immediately preceding the
Change in Control), plus cash equal to accrued interest on the Debentures.

         9.2       Definition of Change in Control. A Change in Control will
mean the occurrence of one or more of the following events:

                   (a) there shall be consummated (i) any consolidation or
merger of the Company in which the Company is not the continuing or surviving
corporation or pursuant to which shares of the Company's Stock would be
converted into cash, securities or other property, other than a merger of the
Company in which the holders of the Company's Stock immediately prior to the
merger have the same proportionate ownership of common stock of the surviving
corporation immediately after the merger, or (ii) any sale, lease, exchange or
other transfer (in one transaction or a series of related transactions) of all,
or substantially all, of the assets of the Company; or

                                      -19-
<PAGE>

                   (b) the shareholders of the Company shall approve of any plan
or proposal for the liquidation or dissolution of the Company; or

                   (c) (i) any person (as such term is defined in Section 13(d)
of the Exchange Act), corporation or other entity shall purchase any Stock of
the Company (or securities convertible into the Company's Stock) for cash,
securities or any other consideration pursuant to a tender offer or exchange
offer, unless, prior to the making of such purchase of Stock (or securities
convertible into Stock), the Board shall determine that the making of such
purchase shall not constitute a Change in Control, or (ii) any person (as such
term is defined in Section 13(d) of the Exchange Act), corporation or other
entity (other than the Company or any benefit plan sponsored by the Company or
any of its subsidiaries) shall become the "beneficial owner" (as such term is
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company representing twenty percent or more of the combined
voting power of the Company's then outstanding securities ordinarily (and apart
from any rights accruing under special circumstances) having the right to vote
in the election of directors (calculated as provided in Rule 13d-3(d) in the
case of rights to acquire any such securities), unless, prior to such person so
becoming such beneficial owner, the Board shall determine that such person so
becoming such beneficial owner shall not constitute a Change in Control; or

                   (d) at any time during any period of two consecutive years,
individuals who at the beginning of such period constituted the entire Board
shall cease for any reason to constitute at least a majority thereof, unless the
election or nomination for election of each new director during such two-year
period is approved by a vote of at least two-thirds of the directors then still
in office who were directors at the beginning of such two-year period.

Section 10.        Assignability

         10.1      The right to receive payments or distributions hereunder
(including any "derivative security" issued pursuant to the Plan, as such term
is defined by the rules promulgated under Section 16 of the Exchange Act), any
shares of Restricted Stock granted hereunder during the Restriction Period, and
any Stock Options granted hereunder will not be transferable or assignable by a
Director other than by will, by the laws of descent and distribution, to a
beneficiary properly designated by the Director pursuant to the appropriate
section of the Plan in the event of death, if any, or pursuant to a domestic
relations order as defined by Section 414(p)(1)(B) of the Internal Revenue Code
or the rules thereunder that satisfies Section 414(p)(1)(A) of the Internal
Revenue Code or the rules thereunder.

         10.2      In addition, Stock acquired on exercise of a Stock Option
will not be transferable prior to the end of the applicable Option Shares
Holding Period, if any, set forth in Sections 7.2(d) and 7.5, and Stock acquired
as Restricted Stock will not be transferable prior to the end of the applicable
Restricted Shares Holding Period, if any, set forth in Sections 8.2(d) and 8.5,
in either case other than by will, by transfer to a beneficiary properly
designated by the Director pursuant to the appropriate section of the Plan in
the event of death, if any, by the applicable laws of descent and distribution,
or pursuant to a domestic relations order as defined by Section

                                      -20-
<PAGE>

414(p)(1)(B) of the Internal Revenue Code or the rules thereunder that satisfies
Section 414(p)(1)(A) of the Internal Revenue Code or the rules thereunder.

Section 11.        Retention; Withholding of Tax

         11.1      Retention. Nothing contained in the Plan or in any Stock
Option Award or Restricted Stock Award granted under the Plan will interfere
with or limit in any way the right of the Company to remove any director from
the Board or to remove the Board Chairman, if any, from office as such pursuant
to the Restated Articles of Incorporation and the By-laws of the Company, nor
confer upon any Director any right to continue in the service of the Company.

         11.2      Withholding of Tax. To the extent required by applicable
law and regulation, each Director must arrange with the Company for the payment
of any federal, state or local income or other tax applicable to any payment or
any delivery of Stock hereunder before the Company will be required to make such
payment or issue (or, in the case of Restricted Stock, deliver) such shares
under the Plan.

Section 12.        Plan Amendment, Modification and Termination

         The Board may at any time terminate, and from time to time may amend or
modify the Plan, provided, however, that no amendment or modification may become
effective without approval of the amendment or modification by the shareholders
if shareholder approval is required to enable the Plan to satisfy any applicable
statutory or regulatory requirements.

Section 13.        Requirements of Law

         13.1      Federal Securities Law Requirements. Implementation and
interpretations of, transactions pursuant to, the Plan will be subject to all
conditions required under Rule 16b-3, as such rule may be amended, or any
successor rule, to qualify such transactions for any exemption from the
provisions of Section 16(b) of the Exchange Act available under that rule, or
any successor rule.

         13.2      Governing Law. The Plan and all agreements hereunder will be
construed in accordance with and governed by the laws of the Commonwealth of
Pennsylvania.

Section 14.        Other Compensation

         Nothing contained in the Plan will be deemed to limit or restrict the
right of the Company to compensate directors for their services in any capacity
in whole or in part under separate compensation or deferral plans or programs
for directors or under other compensation arrangements.

                                      -21-

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