Sample Business Contracts

Employment Agreement - Citigroup Inc. and John Reed

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  • 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.
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  • 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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July 20, 2000


Mr. John Reed
153 East 53rd Street
New York, New York 10043

Dear John:

As we discussed, I recommended to the Compensation Committee that they approve
Items 1 through 7 contained in my draft letter to you of June 15th, and they
have done so. The items listed below are the same as listed in the draft.

     1.   There would be a cash payment of $5 million which
          largely represents an allocated incentive bonus
          for this year. It is my thought that this would be
          paid promptly after being voted on by the
          Compensation Committee.

     2.   Your new SERP calculation yields an annual benefit
          of approximately $2,865,000 (subject to final
          determination by the actuaries), this number
          having now been calculated on the same basis as
          that of other senior Citicorp participants. The
          SERP calculation is inclusive of the above $5
          million cash payment.

     3.   The company would continue to provide the normal
          lawsuit indemnifications arising from company
          employment, and D & O coverage in reasonable size
          relating to your activities as an officer and
          director of the company.

     4.   The company would furnish financial planning
          services for up to five years in a reasonable


     5.   An office at Citigroup, secretarial support, and
          access to a car and driver would be provided to
          you for as long as you deem useful. In the event
          that at any point you choose not to maintain an
          office in New York City, you would be provided an
          office and secretarial support in a location of
          your choice to age 75.

     6.   If requested by the company to perform certain
          business functions in locations removed from this
          area or for business functions for which you have
          previously committed, you will be provided
          corporate aircraft.

     7.   The computer that you use at home would stay, if
          useful, or we would provide a new one if

In lieu of asking for any specific form of agreement relating to
non-competition, etc., we will simply accept your statement of intent, as
expressed to Fred Cook, and we would ask you to provide us a letter setting
forth that statement of intent.

In addition, as is customary, we would propose that the Company and you agree to
mutual general releases.

Please sign and return one of the attached copies.

                                        Accepted and Agreed:
                                        /s/ John S. Reed
                                        John S. Reed
                                        Date: July 20, 2000