Sample Business Contracts

Employment Agreement - Westinghouse Electric Corp. and Fredric G. Reynolds

Employment Forms

  • Employment Agreement. Employers can customize an employment agreement that states the salary, benefits, working hours and other important provisions for their new or existing employee.
  • Consulting Agreement. Answer simple questions to build a contract with a consultant. Specify the services rendered, when payment is due, as well as IP rights.
  • Commission Agreement. Employers who compensate their sales employees based on commissions can prepare an agreement to reduce misunderstandings by specifying the base salary and how commissions are calculated.
  • Executive Employment Agreement. Companies may offer their business executives a contract that is different from the one provided to their regular employees. Executive employment agreements may be more complex because the compensation structure may include a combination of salary and commissions, provide for bonuses based on sales, stock or other financial targets, and include non-compete, confidentiality and severance provisions.
  • Sales Representative Contract. Independent sales representatives offer companies the potential to increase the sale of products or services without the burden of increasing headcount. Both parties should understand how commissions are calculated, when commissions will be paid, as well as how the representative will treat confidential information from the company and whether the representative may also sell a competing line of products or services.
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                                January 31, 1994

Mr. Fredric G. Reynolds
5400 Preston Oaks Road, Apt. 4035
Dallas, Texas   75240

Dear Fred,

         This letter confirms Westinghouse's offer of employment to you for the
position of Senior Vice President, Chief Financial Officer.

         Provisions of the offer are as follows:

         BASE SALARY - Your annualized base salary for 1994 will be $350,000
         paid in accordance with the regular payroll practices of the

         ANNUAL INCENTIVE AWARDS - You will be eligible to participate in the
         Corporation's annual incentive plan for executives. For this position,
         award opportunities typically range between $150,000 and $250,000.
         Awards are generally based on: 1) Westinghouse's financial performance
         against objectives, 2) Corporate Development's performance on strategic
         initiatives and 3) evaluation of individual contributions. For each of
         fiscal years 1994 and 1995, a minimum annual incentive award of
         $150,000 will be paid if you are actively employed by the Corporation
         at the time annual incentive payments are made in January 1995 and
         1996, respectively.

         LONG-TERM INCENTIVES - The Corporation will provide a one-time
         non-qualified stock option grant of 150,000 shares. The option price
         will be the fair market value, as defined in the plan, of Westinghouse
         common stock on the day the Management Compensation Policy Committee of
         the Board ("MCPC") authorizes the grant. The other option terms will be
         consistent with the standard Westinghouse stock option provisions of
         the options granted by the MCPC in May 1993 under the new plan,
         including a provision vesting the options after one year of employment
         from the grant date. In addition, an Equity Plus Grant will be made to
         you with a target value of $75,000 for the 1992-1994 performance cycle,
         subject to the measurements, terms and requirements applicable to
         grants to other executives in connection with the 1992-1994 Equity
         Plus Grants. You will have an opportunity to defer any amounts earned
         in accordance with the applicable deferral provisions (which currently
         provide for

<PAGE>   2

Mr. Fredric G. Reynolds
January 31, 1994
page -2-

         deferral of up to 100% of any amounts earned). Both of the above grants
         are subject to shareholder approval of the new long-term incentive

         You will also be eligible for long-term incentive grants applicable to
         your position. These grants are typically made in the second quarter of
         each year.

         EMPLOYEE BENEFITS - Westinghouse will reimburse you for the cost of
         COBRA coverage to extend your current health care plan for the three
         month waiting period until you and your eligible dependents are
         eligible to be covered by Westinghouse's plan.

         During your employment, the standard Westinghouse benefit programs
         (including pension, disability, life insurance, savings, relocation
         program) and perquisites applicable to this position will be extended
         to you.

         SEPARATION - If you are terminated for any reason, other than for gross
         misconduct, gross neglect of duties, or malfeasance, you will be
         entitled to receive each month after termination, for a period of
         twelve months, an amount equal to your then applicable monthly base
         salary, which will be in lieu of any other Westinghouse salary
         continuation programs. In addition, the Corporation would arrange for
         an outplacement service with a firm to be selected by Westinghouse.

         I'm pleased that you will be joining Westinghouse and am looking
forward to a long and successful association. I believe you will make an
important contribution to Westinghouse and that Westinghouse will be able to
provide you with opportunities that will fulfill your future career aspirations.

         Congratulations and welcome aboard!