CHANGE IN CONTROL SEVERANCE AGREEMENT
Exhibit
10.1.d
THIS
CHANGE IN CONTROL SEVERANCE AGREEMENT is entered into as of the ___ day of
_________, 2006, among Great Plains Energy Incorporated, a Missouri corporation,
("Great Plains Energy"), Strategic Energy, L.L.C., a Delaware limited liability
company, (the "Company") and Xxxxxx Xxxxx ("Executive").
WITNESSETH:
WHEREAS,
Executive is a valued employee of the Company; and
WHEREAS,
Great Plains Energy and the Company believes that it is in the best interests
of
the Company and its members (i) to provide assurance that the Company will
have
the continued service of Executive notwithstanding the possibility, threat
or
occurrence of a Change in Control (as defined in Section 1) of any Parent
Company (as defined in Section 1) or the Company, (ii) to diminish the
distraction to Executive that may arise by virtue of the personal uncertainties
and risks created by such a threatened or pending Change in Control, and (iii)
to encourage Executive's full attention and dedication to the Company currently
and in the event of a threatened or pending Change in Control; and
WHEREAS,
Great Plains Energy, the Company and Executive previously entered into a
severance agreement dated November 10, 2004, the "Prior Severance Agreement"
whereby the Company agreed to provide Executive with certain compensation and
perquisites following Executive's termination or constructive termination of
employment with the Company in connection with a change in control or potential
change in control of Great Plains Energy or the Company; and
WHEREAS,
Great Plains Energy, the Company and Executive agree that, in connection with
both parties entering into this Agreement, the Prior Severance Agreement shall
be terminated, rendered null and void, and all duties and rights conferred
upon
the parties thereto extinguished, and that such Prior Severance Agreement is
replaced in its entirety with the benefits, duties, terms and conditions set
forth in this Agreement;
NOW,
THEREFORE, in consideration of the premises and the mutual agreements contained
herein, the parties hereto agree as follows:
1. Certain
Definitions.
As used
in this Agreement, unless otherwise defined herein or unless the context
otherwise requires, the following terms shall have the following
meanings:
(a) Agreement.
"Agreement" means this Change in Control Severance Agreement as amended from
time to time.
(b) Beneficial
Owner.
"Beneficial Owner" shall have the same meaning as set forth in Rule 13d-3 of
the
Exchange Act.
(c) Board. "Board"
means the Board of Directors of Great Plains Energy.
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(d) Cause.
"Cause"
means (i) the material misappropriation of any of the Company's or any Parent
Company's funds, Confidential Information or property; (ii) the conviction
of,
or the entering of a guilty plea or plea of no contest with respect to, a
felony, or the equivalent thereof; (iii) commission of act of willful damage,
willful misrepresentation, willful dishonesty, or other willful conduct that
can
reasonably be expected to have a material adverse effect on the business,
reputation, or financial situation of the Company or any Parent Company; or
(iv)
gross negligence or willful misconduct in performance of Executive's duties;
provided, however, "cause" shall not exist under clause (iv), above, with
respect to an act or failure to act unless (A) Executive has been provided
written notice describing in sufficient detail the acts or failure to act giving
rise to the Company's assertion of such gross negligence or misconduct, (B)
been
provided a reasonable period to remedy any such occurrence and (C) failed to
sufficiently remedy the occurrence.
(e) Change
in Control.
"Change
in Control" means the occurrence of one of the following events, whether in
a
single transaction or a series of related transactions:
(1) With
respect to the Company:
(i) any
Person is or becomes the Beneficial Owner, directly or indirectly, of membership
interests of the Company (not including in the membership interests beneficially
owned by such Person any membership
interests acquired
directly from the Company or its affiliates other than in connection with the
acquisition by the Company or its affiliates of a business) representing 50%
or
more of the combined voting power of the Company's then outstanding membership
interests; or
(ii) the
consummation of a merger, consolidation, reorganization or similar corporate
transaction of the Company, whether or not the Company is the surviving entity
in such transaction, other than (A) a merger, consolidation, or reorganization
that would result in the voting interests of the Company outstanding immediately
prior thereto continuing to represent (either by remaining outstanding or by
being converted into voting interests of the surviving entity or any parent
thereof), at least 50% of the combined voting power of the voting interests
of
the Company or such surviving entity or any parent thereof outstanding
immediately after such merger, consolidation or reorganization, or (B) a merger,
consolidation or reorganization effected to implement a recapitalization of
the
Company (or similar transaction) in which no Person is or becomes the Beneficial
Owner, directly or indirectly, of interests of the Company (not including in
the
interests Beneficially Owned by such Person any interests acquired directly
from
the Company or its affiliates other than in connection with the acquisition
by
the Company or its affiliates of a business) representing 50% or more of the
then combined voting power of the Company's then outstanding membership
interests; or
(iii) the
members of the Company approve a plan of complete liquidation, a dissolution
of
the Company or an agreement for the sale or disposition by the Company of all
or
substantially all the Company's assets.
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Notwithstanding
the foregoing, no "Change in Control" shall be deemed to have occurred with
respect to the Company if there is consummated any transaction or series of
integrated transactions immediately following which the holders of the
membership interests of the Company immediately prior to such transaction or
series of transactions continue to have substantially the same proportionate
ownership in an entity which owns all or substantially all of the assets of
the
Company immediately following such transaction or series of
transactions.
(2) With
respect to Great Plains Energy:
(i) any
Person is or becomes the Beneficial Owner, directly or indirectly, of securities
of Great Plains Energy (not including in the securities beneficially owned
by
such Person any securities acquired directly from Great Plains Energy or its
affiliates other than in connection with the acquisition by Great Plains Energy
or its affiliates of a business) representing 35% or more of either the then
outstanding shares of common stock of Great Plains Energy or the combined voting
power of Great Plains Energy's then outstanding securities; or
(ii) the
following individuals cease for any reason to constitute a majority of the
number of directors then serving: individuals who, on the date hereof,
constitute the Board and any new director (other than a director whose initial
assumption of office is in connection with an actual or threatened election
contest, including but not limited to a consent solicitation, relating to the
election of directors of Great Plains Energy, as such terms are used in Rule
14a-11 of Regulation 14A under the Exchange Act) whose appointment or election
by the Board or nomination for election by Great Plains Energy's stockholders
was approved by a vote of at least two-thirds (2/3) of the directors then still
in office who either were directors on the date hereof or whose appointment,
election or nomination for election was previously so approved; or
(iii) the
consummation of a merger, consolidation, reorganization or similar corporate
transaction of Great Plains Energy, whether or not Great Plains Energy is the
surviving corporation in such transaction, other than (A) a merger,
consolidation, or reorganization that would result in the voting securities
of
Great Plains Energy outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity or any parent thereof), in combination with
the ownership of any trustee or other fiduciary holding securities under an
employee benefit plan of the Company, at least 60% of the combined voting power
of the voting securities of Great Plains Energy or such surviving entity or
any
parent thereof outstanding immediately after such merger, consolidation or
reorganization, or (B) a merger, consolidation or reorganization effected to
implement a recapitalization of Great Plains Energy (or similar transaction)
in
which no Person is or becomes the Beneficial Owner, directly or indirectly,
of
securities of Great Plains Energy (not including in the securities Beneficially
Owned by such Person any securities acquired directly from Great Plains Energy
or its affiliates other than in connection with the acquisition by Great Plains
Energy or its affiliates of a business) representing 20% or more of either
the
then outstanding shares of common stock of Great Plains Energy or the combined
voting power of Great Plains Energy's then outstanding securities; or
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(iv) the
occurrence of, or the stockholders of Great Plains Energy approve a plan of,
a
complete liquidation or dissolution of Great Plains Energy or an agreement
for
the sale or disposition by Great Plains Energy of all or substantially all
of
Great Plains Energy's assets, other than a sale or disposition by Great Plains
Energy of all or substantially all of Great Plains Energy 's assets to an
entity, at least 60% of the combined voting power of the voting securities
of
which are owned by Persons in substantially the same proportions as their
ownership of Great Plains Energy Company immediately prior to such
sale.
Notwithstanding
the foregoing, no "Change in Control" shall be deemed to have occurred if there
is consummated any transaction or series of integrated transactions immediately
following which the record holders of the common stock of Great Plains Energy
immediately prior to such transaction or series of transactions continue to
have
substantially the same proportionate ownership in an entity which owns all
or
substantially all of the assets of Great Plains Energy immediately following
such transaction or series of transactions.
(f) Change
in Control Period.
"Change
in Control Period" means the period commencing on the date hereof and ending
on
the second anniversary of such date; provided, however, that commencing on
a
date one year after the date hereof, and on each annual anniversary of such
date
(such date and each annual anniversary thereof being hereinafter referred to
as
the "Renewal Date"), the Change in Control Period shall be automatically
extended so as to terminate two years from such Renewal Date, unless at least
60
days prior to the Renewal Date the Company or Great Plains Energy shall give
notice to Executive that the Change in Control Period shall not be so extended;
provided, further that during any period of time when the Board or the governing
body of the Company has knowledge that any person has taken steps reasonably
calculated to effect a Change in Control, the Change in Control Period shall
automatically be extended (and may not terminate) until, in the opinion of
the
Board, such person has abandoned or terminated its efforts to effect a Change
in
Control.
(g) Company.
"Company" means Strategic Energy, L.L.C., a Delaware limited liability company,
and its successors and assigns.
(h) Confidential
Information.
"Confidential Information" means (1) any and all trade secrets concerning the
business and affairs of the
Company or any Parent Company,
product
specifications, data, know-how, formulae, algorithms, compositions, processes,
designs, sketches, photographs, graphs, drawings, samples, inventions and ideas,
past, current, and planned research and development, current and planned
manufacturing or distribution methods and processes, customer lists, current
and
anticipated customer requirements, price lists, market studies, business plans,
computer software and programs (including object code and source code), computer
software and database technologies, systems, structures, and architectures;
(2)
information concerning the business and affairs of the
Company or any Parent Company
(which
includes historical financial statements, financial projections and budgets,
historical and projected sales, capital spending budgets and plans, the names
and backgrounds of key personnel, personnel training and techniques and
materials); and (3) notes, analysis, compilations, studies, summaries, and
other
material prepared by or for the
Company or any Parent Company
containing or based, in whole or in part, or any information included in the
foregoing, whether reduced to writing or not and which has not become publicly
known or made generally available through no wrongful act of Executive or others
who were under confidentiality obligations as to the item or items
involved.
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(i) Date
of Termination.
"Date
of Termination" means (i) if Executive's employment is terminated by the Company
or any Parent Company for Cause, or by Executive for Good Reason, the date
of
receipt of the Notice of Termination or any later date permitted to be specified
therein, as the case may be, (ii) if Executive's employment is terminated by
the
Company or any Parent Company other than for Cause or Disability, the Date
of
Termination shall be the date on which the Company notifies Executive of such
termination, (iii) if Executive's employment is terminated by reason of death or
Disability, the Date of Termination shall be the date of death of Executive
or
the Disability Effective Date (as defined in Section 2(a)), as the case may
be
and (iv) if Executive's employment is terminated by Executive for other than
Good Reason, the Date of Termination shall be the date on which Executive
notifies the Company in writing of such termination or any later date permitted
to be specified therein, as the case may be.
(j) Disability
or Disabled.
The
term "Disability" or "Disabled" shall mean an individual (i) is unable to engage
in any substantial gainful activity by reason of any medically determinable
physical or mental impairment which can be expected to result in death or can
be
expected to last for a continuous period of not less than twelve (12) months
or
(ii) is, by reason of any medically determinable physical or mental impairment
which can be expected to result in death or can be expected to last for a
continuous period of not less than twelve (12) months, receiving income
replacement benefits for a period of not less than 3 months under an accident
or
health plan sponsored by the Company or any Parent Company.
(k) Effective
Date.
"Effective Date" means the first date on which a Change in Control occurs during
the Change in Control Period.
(l) Exchange
Act.
"Exchange Act" means the Securities Exchange Act of 1934, as amended from time
to time.
(m) Good
Reason.
"Good
Reason" means, without Executive's written consent any of the
following:
(i) Any
material and adverse reduction or material and adverse diminution in Executive's
position (including status, offices, titles and reporting requirements),
authority, duties or responsibilities held, exercised or assigned at any time
during the 90-day period immediately preceding the commencement of the Pre-CIC
Protected Period;
(ii) Any
reduction in Executive's annual base salary as in effect immediately preceding
the commencement of the Pre-CIC Protected Period or as the same may be increased
from time to time;
(iii) Any
reduction in benefits received by Executive under Company Plans (as defined
below) to less than the most favorable benefits provided to Executive by the
Company under Company Plans at any time during the 90-day period immediately
preceding the commencement of the Pre-CIC Protected Period. "Company Plans"
means, with respect to either the Company or any Parent Company, (1) all
incentive, savings and retirement plans, practices, policies and programs
sponsored or maintained by the Company, any Parent Company, or any affiliate
thereof, (2) all welfare benefit plans, practices, policies and programs
(including medical, prescription, dental, disability, salary continuance,
employee life, group life, accidental death and travel accident insurance plans
and programs) sponsored or maintained by the Company, any Parent Company, or
any
affiliate thereof, (3) expense reimbursement by the Company, any Parent Company,
or any affiliate thereof for all reasonable out-of-pocket employment expenses
incurred by Executive, (4) the provision of fringe benefits, and (5) the
provision of paid vacation time by the Company, any Parent Company, or any
affiliate thereof;
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(iv) Executive
being required by the Company to be based at any office or location that is
more
than 35 miles from the location where Executive was employed immediately
preceding the commencement of the Pre-CIC Protected Period; or
(v) Any
failure by the Company to require any successor (whether direct or indirect,
by
purchase, merger, consolidation or otherwise) to all or substantially all of
the
business and/or assets of the Company or Great Plains Energy to assume expressly
and agree to perform this Agreement in the same manner and to the same extent
that the Company would be required to perform it if no such succession had
taken
place, or any failure by any such successor after ten (10) days notice from
Executive to so perform under this Agreement.
Provided,
however, notwithstanding the occurrence of any of the events set forth above
in
this Section 1(m), Good Reason shall not include for the purpose of this
definition (1) an isolated, insubstantial and inadvertent action not taken
in
bad faith and which is remedied by the Company promptly after receipt of notice
thereof given by Executive, or (2) if occurring within the Pre-CIC Protected
Period, any reduction in Executive's base annual salary or reduction in benefits
received by Executive where such reduction is in connection with a company-wide
reduction in salaries or benefits.
(n) Notice
of Termination.
"Notice
of Termination" means a written notice of termination which (i) indicates the
specific termination provision in this Agreement relied upon, (ii) to the extent
applicable, sets forth in reasonable detail the facts and circumstances claimed
to provide a basis for termination of Executive's employment under the provision
so indicated and (iii) if the Date of Termination is other than the date of
receipt of such notice, specifies the termination date (which date shall be
not
more than fifteen (15) days after the giving of such notice), unless another
date is mutually agreed upon between Executive and the Company.
(o) Parent
Company.
"Parent
Company" means Great Plains Energy or any other company which is a direct or
indirect parent company of the Company.
(p) Person.
"Person" has the meaning given in Section 3(a)(9) of the Exchange Act, as
modified and used in Sections 13(d) and 14(d) thereof, except that such term
shall not include (1) Great
Plains Energy or any Parent Company,
(2) a
trustee or other fiduciary holding securities under an employee benefit plan
of
Great
Plains Energy or
any of
its subsidiaries, (3) an underwriter temporarily holding securities pursuant
to
an offering of such securities, or (4) a corporation owned, directly, or
indirectly, by the stockholders of Great
Plains Energy or any Parent Company in
substantially the same proportions as their ownership of stock of Great
Plains Energy or any Parent Company.
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(q) Post-Effective
Period.
"Post-Effective Period" means the period commencing on the Effective Date and
ending on the earlier of (i) the second anniversary of such date or (ii)
Executive's 70th
birthday.
(r) Pre-CIC
Protected Period.
"Pre-CIC Protected Period" means the period that is within the Change in Control
Period and begins when (A) the Company or any Parent Company enters into an
agreement, the consummation of which would result in the occurrence of a Change
in Control; (B) the Company, any Parent Company or any Person publicly announces
an intention to take or to consider taking actions which, if consummated, would
constitute a Change in Control; (C) any Person becomes the Beneficial Owner,
directly or indirectly, of voting securities of the Company or any Parent
Company representing 10% or more of the combined voting power of the Company's
or any Parent Company's then outstanding voting securities; or (D) the Board,
the members or the stockholders of the Company or any Parent Company adopts
a
resolution approving any of the foregoing or approving any Change in Control,
and ends upon the date the Change in Control transaction is either consummated,
abandoned or terminated (for this purpose, the Board shall have the sole and
absolute discretion to determine that a proposed transaction has been
abandoned).
2. Termination
of Employment During the Post-Effective Period.
(a) Death
or Disability.
Executive's employment shall terminate automatically upon Executive's death
or,
with written notice by the Company of its intention to terminate Executive's
employment, upon Executive's Disability. In such event, Executive's employment
with the Company shall terminate effective on the 90th day after receipt of
such
notice by Executive (the "Disability Effective Date"), provided that within
the
90 days after such receipt Executive shall not have returned to full-time
performance of Executive's duties.
(b) Cause.
The
Company may terminate Executive's employment at any time for Cause or without
Cause. Notwithstanding the foregoing, Executive shall not be deemed to have
been
terminated for Cause without (i) reasonable notice to Executive setting forth
the reasons for the Company's intention to terminate for Cause, (ii) an
opportunity for Executive, together with his counsel, to be heard before the
Board within fifteen (15) days of such notice, and (iii) delivery to Executive
of a Notice of Termination from the Board finding that, in the good faith
opinion of the Board, that Executive was guilty of conduct set forth in Section
1(d), and specifying the particulars thereof in reasonable detail.
(c) Executive
Resignation.
Executive's employment may be terminated at any time by Executive for Good
Reason or without Good Reason.
(d) Notice
of Termination.
Any
termination by the Company for Cause, or by Executive for Good Reason, shall
be
communicated by Notice of Termination to the other party hereto. The failure
by
Executive or the Company to set forth in the Notice of Termination any fact
or
circumstance that contributes to a showing of Good Reason or Cause shall not
waive any right of Executive or the Company hereunder or preclude Executive
or
the Company from asserting such fact or circumstance in enforcing Executive's
or
the Company's rights hereunder.
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3. Obligations
of the Company Upon Termination of Employment
(a) Post-Effective
Period Terminations Other Than for Cause, Death or Disability; Post-Effective
Period Executive Resignation.
If,
during the Post-Effective Period, the Company shall terminate Executive's
employment other than (I) for Cause or (II) on account of Executive's death
or
Disability, or Executive shall terminate employment for Good Reason, then all
shares of restricted stock granted under the Company's Long-Term Incentive
Plan
(the "LTIP") shall become fully vested and the Company shall pay to Executive,
in a lump-sum cash payment made within 30 days following the Date of
Termination, as compensation for services rendered to the Company, an amount
equal to the aggregate of the following amounts set forth below in Sections
3(a)(i) and (ii), and (iii), and provide to Executive the benefits provided
in
Section 3(a)(iv).
(i) A
cash
amount equal to the sum of (A) Executive's full annual base salary from the
Company and its affiliated companies through the Date of Termination, to the
extent not theretofore paid, (B) a bonus in an amount at least equal to the
average annualized incentive awards paid or payable pursuant to any
Company-sponsored annual incentive compensation plan, including by reason of
any
deferral under a Company-sponsored deferred compensation program, to Executive
by the Company and its affiliated companies during the five fiscal years of
the
Company (or if Executive shall have performed services for the Company and
its
affiliated companies for four fiscal years or less, the years during which
Executive performed services) immediately preceding the fiscal year in which
the
Change in Control (or the Date of Termination if benefits are payable pursuant
to Section 3(c)) occurs, multiplied by a fraction, the numerator of which is
the
number of days in the fiscal year in which the Date of Termination occurs
through the Date of Termination and the denominator of which is 365 or 366,
as
applicable, to the extent not theretofore paid, (C) any amount credited to
Executive under any deferred contribution nonqualified deferred compensation
plan sponsored by any Parent Company or the Company and any other compensation
previously deferred by Executive (together with any interest and earnings
thereon), in each case to the extent not theretofore paid, and (D) any accrued
unpaid vacation pay;
(ii) A
cash
amount equal to the performance bonus Executive would have received under the
LTIP with respect to all outstanding grants and assuming performance at
target;
(iii) a
cash
amount equal to (A) three (3) times Executive's highest annual base salary
from
the Company and its affiliated companies in effect during the twelve (12)-month
period prior to the Date of Termination, plus (B) three (3) times Executive's
average annualized annual incentive compensation awards, paid, or, but for
a
deferral under a Company-sponsored deferred compensation program, would have
been paid, to Executive by the Company and its affiliated companies during
the
five fiscal years of the Company (or if Executive shall have performed services
for the Company and its affiliated companies for four fiscal years or less,
the
years during which Executive performed services) immediately preceding the
fiscal year in which the Change in Control (or if benefits are payable pursuant
to Section 3(c), the Date of Termination) occurs; provided, however, that in
the
event there are fewer than thirty-six (36) whole months remaining from the
Date
of Termination to the date of Executive's 70th birthday, the amount calculated
in accordance with this Section 3(a)(iii) shall be reduced by multiplying such
amount by a fraction the numerator of which is the number of months, including
a
partial month (with a partial month being expressed as a fraction the numerator
of which is the number of days remaining in such month and the denominator
of
which is the number of days in such month), so remaining and the denominator
of
which is thirty-six (36) months; provided further, that any amount paid pursuant
to this Section 3(a)(iii) shall be paid in lieu of any other amount of severance
pay to be received by Executive upon termination of employment of Executive
under any severance plan, policy or arrangement of the Company;
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(iv) for
a
period of three (3) years commencing on the Date of Termination, the Company
or
the Parent Company shall provide Executive and Executive's dependents with
medical, accident, disability and life insurance coverage upon substantially
the
same terms and otherwise substantially to the same extent as such coverage
was
being provided to Executive and Executive's dependent(s) immediately prior
to
the Date of Termination. At the Company's or Parent Company's election, such
continuation coverage may be provided by (A) continuing such coverage under
the
Company's or Parent Company's existing welfare benefit plans, (B) with respect
to any group health care plan and for the applicable period permitted under
Code
Section 4980B(f)(2), Executive and/or Executive's dependent(s) being deemed
to
have elected to receive such coverage pursuant to a continuation election under
Code Section 4980B with the Company being obligated to pay for the entire
portion of the applicable COBRA premiums, (C) the Company purchasing an
individual policy (to the extent such a policy is reasonably available in the
marketplace) for Executive and/or Executive's dependent(s) providing
substantially similar coverage as offered under the Company's or Parent
Company's plan, or (D) any combination of the forgoing methods under (A), (B)
and (C) of this paragraph. Notwithstanding the foregoing sentence, if any of
the
medical, accident, disability or life insurance plans then in effect generally
with respect to other peer executives of the Company and its affiliated
companies would be more favorable to Executive, such plan coverage shall be
substituted for the analogous plan coverage provided to Executive immediately
prior to the Date of Termination, and the Company and Executive shall share
the
costs of such plan coverage in the same proportion as such costs were shared
immediately prior to the Date of Termination. The obligation of the Company
to
continue coverage of Executive and Executive's dependent(s) under such plans
and
in accordance with this paragraph shall cease at such time as Executive and
Executive's dependent(s) obtain comparable coverage under another plan,
including a plan maintained by a new employer. With respect to any Company
or
Parent Company group health care plan, any continuation coverage provided under
this paragraph shall be considered as alternative continuation coverage to
any
rights Executive or Executive's dependent(s) may have with respect to any other
group health plan continuation coverage required by Code Section 4980B or any
applicable state statute mandating health insurance continuation coverage.
Except to the extent required by law, upon termination of the coverage provided
for under this Section 3(a)(iv), Executive and/or Executive's dependent(s)
shall
have no further right to continuation of coverage under any group health plan
maintained by the Company or its affiliated companies.
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(b) Termination
for Cause, Disability, Death or Other than for Good Reason.
If at
any time during the Change in Control Period, Executive's employment shall
be
terminated for Cause, Executive's employment is terminated due to Executive's
death or Disability, or if Executive terminates employment other than for Good
Reason, this Agreement shall terminate without further obligation of the Company
to Executive other than (i) the obligation to pay to Executive his or her base
salary through the Date of Termination, any incentive bonus and other
compensation, payments and benefits for the most recently completed fiscal
year
and any accrued vacation pay, to the extent theretofore unpaid, which amounts
shall be paid to Executive in a lump sum in cash within thirty (30) days of
the
Date of Termination, and (ii) the obligation to pay to Executive all amounts
or
benefits to which Executive is entitled for the period prior to the Date of
Termination under any plan, program, policy, practice, contract or agreement
of
the Company (excluding amounts otherwise required to be paid under this Section
3(b)), at the time such amounts or benefits are due.
(c) Certain
Terminations during Pre-CIC Protected Period.
If,
during the Pre-CIC Protected Period, Executive’s employment is terminated by the
Company other than for Cause or Executive terminates his or her employment
for
Good Reason, then, Executive shall be entitled to receive the same benefits
he
or she would be entitled to receive under Section 3(a) if such termination
of
employment would have occurred during the Post-Effective Period. Any benefits
or
payments to be paid pursuant to this Section 3(c) shall be paid in a lump-sum
payment and, subject to Section 3(d), within thirty (30) days following the
termination of Executive's employment.
(d) Payments
to Executive Following Termination.
If (i)
Executive is a "specified employee," as defined in Code section
409A(a)(1)(B)(i), and (ii) Executive's employment is terminated, either by
Executive or by the Company, due to any reason other than Executive's death,
then, notwithstanding Sections 3(a) or 3(c) of this Agreement, Executive shall
not receive any payment pursuant to Sections 3(a) or 3(c) until the first
business day after six full months after Executive's Date of
Termination.
4. Section
280G Gross-Up.
(a) Except
as
provided for in Section 4(e) below and notwithstanding any other provision
in
this Agreement to the contrary, in the event it shall be determined that any
payment or distribution by the Company or its affiliated companies to or for
the
benefit of Executive (whether paid or payable or distributed or distributable
pursuant to the terms of this Agreement or otherwise, but determined without
regard to any additional payments required under this Section 4) (a "Payment")
would be subject to the excise tax imposed by Section 4999 of the Code, or
any
interest or penalties are incurred by Executive with respect to such excise
tax
(such excise tax, together with any such interest and penalties, are hereinafter
collectively referred to as the "Excise Tax"), then the Company shall pay to
Executive an additional payment (a "Gross-Up Payment") in an amount such that
after payment by Executive of all taxes (including any interest or penalties
imposed with respect to such taxes), including, without limitation, any income
taxes (except for any income tax under Section 409A of the Code), any interest
and penalties imposed with respect thereto, and Excise Tax imposed upon the
Gross-Up Payment, Executive retains an amount of the Gross-Up Payment equal
to
the Excise Tax imposed upon the Payments.
10
(b) Subject
to the provisions of Section 4(c), all determinations required to be made under
this Section 4, including whether and when a Gross-Up Payment is required and
the amount of such Gross-Up Payment and the assumptions to be utilized in
arriving at such determination, shall be made by an independent registered
public accounting firm selected by the Company that is not also the Company's
then current accounting firm for annual audit purposes (the "Accounting Firm")
which shall provide detailed supporting calculations both to the Company and
Executive within fifteen (15) business days of the receipt of notice from
Executive that there has been a Payment, or such earlier time as is requested
by
the Company. In the event that the Accounting Firm is serving as accountant
or
auditor for the individual, entity or group effecting the Change in Control,
Executive shall appoint another nationally recognized public accounting firm
to
make the determinations required hereunder (which accounting firm shall then
be
referred to as the Accounting Firm hereunder). All fees and expenses of the
Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment,
as
determined pursuant to this Section 4, shall be paid by the Company to Executive
within five (5) days of the receipt of the Accounting Firm's determination,
but
in no event later than the time set forth in Section 4(f), below. If the
Accounting Firm determines that no Excise Tax is payable by Executive, it shall
furnish Executive with a written opinion that failure to report the Excise
Tax
on Executive's applicable federal income tax return would not result in the
imposition of a negligence or similar penalty. Any determination by the
Accounting Firm shall be binding upon the Company and Executive. As a result
of
the uncertainty in the application of Section 4999 of the Code at the time
of
the initial determination by the Accounting Firm hereunder, it is possible
that
Gross-Up Payments which will not have been made by the Company should have
been
made ("Underpayment"), consistent with the calculations required to be made
hereunder. In the event that the Company exhausts its remedies pursuant to
Section 4(c) and Executive thereafter is required to make a payment of any
Excise Tax, the Accounting Firm shall determine the amount of the Underpayment
that has occurred and any such Underpayment shall be promptly paid by the
Company to or for the benefit of Executive.
(c) Executive
shall notify the Company in writing of any claim by the Internal Revenue Service
that, if successful, would require the payment by the Company of the Gross-Up
Payment. Such notification shall be given as soon as practicable but no later
than ten (10) business days after Executive is informed in writing of such
claim
and shall apprise the Company of the nature of such claim and the date on which
such claim is requested to be paid. Executive shall not pay such claim prior
to
the expiration of the thirty (30) day period following the date on which
Executive gives such notice to the Company (or such shorter period ending on
the
date that any payment of taxes with respect to such claim is due). If the
Company notifies Executive in writing prior to the expiration of such period
that it desires to contest such claim, Executive shall:
(i) give
the
Company any information reasonably requested by the Company relating to such
claim;
(ii) take
such
action in connection with contesting such claim as the Company shall reasonably
request in writing from time to time, including, without limitation, accepting
legal representation with respect to such claim by an attorney reasonably
selected by the Company;
11
(iii) cooperate
with the Company in good faith in order effectively to contest such claim;
and
(iv) permit
the Company to participate in any proceedings relating to such claim; provided,
however, that the Company shall bear and pay directly all costs and expenses
(including additional interest and penalties) incurred in connection with such
contest and shall indemnify and hold Executive harmless, on an after-tax basis,
for any Excise Tax or income tax (including interest and penalties with respect
thereto) imposed as a result of such representation and payment of costs and
expenses. Without limitation on the foregoing provisions of this Section 4(c),
the Company shall control all proceedings taken in connection with such contest
and, at its sole option, may pursue or forgo any and all administrative appeals,
proceedings, hearings and conferences with the taxing authority in respect
of
such claim and may, at its sole option, either direct Executive to pay the
tax
claimed and xxx for a refund or contest the claim in any permissible manner,
and
Executive shall prosecute such contest to a determination before any
administrative tribunal, in a court of initial jurisdiction and in one or more
appellate courts, as the Company shall determine; provided further, that if
the
Company desires Executive to pay such claim and xxx for a refund, the Company
shall, on Executive's behalf, pay such claim and on an after-tax basis reimburse
Executive from any Excise Tax or income tax (including interest or penalties
with respect thereto) imposed with respect to such payment and provided further,
that any extension of the statute of limitations relating to payment of taxes
for the taxable year of Executive with respect to which such contested amount
is
claimed to be due is limited solely to such contested amount. Furthermore,
the
Company's control of the contest shall be limited to issues with respect to
which a Gross-Up Payment would be payable hereunder and Executive shall be
entitled to settle or contest, as the case may be, any other issue raised by
the
Internal Revenue Service or any other taxing authority.
(d) If,
after
payment by the Company pursuant to Section 4(c), Executive becomes entitled
to
receive, and receives, any refund with respect to such claim, Executive shall
(subject to the Company's complying with the requirements of Section 4(c))
promptly pay to the Company the amount of such refund (together with any
interest paid or credited thereon after taxes applicable thereto). If, after
payment of an amount by the Company pursuant to Section 4(c), a determination
is
made that Executive shall not be entitled to any refund with respect to such
claim and the Company does not notify Executive in writing of its intent to
contest such denial of refund prior to the expiration of thirty (30) days after
such determination, then such payment shall offset, to the extent thereof,
the
amount of Gross-Up Payment required to be paid.
(e) Notwithstanding
Executive otherwise being eligible for a Gross-Up Payment under this Section
4,
if, excluding any Gross-Up Payment required to be made pursuant to this Section
4, the "parachute payment" made to Executive does not exceed three times
Executive's "base amount" by more than $1,000, then the payments and benefits
to
be paid or provided under this Agreement will be reduced to the minimum extent
necessary so that no portion of any payment or benefit to Executive, as so
reduced, constitutes an "excess parachute payment." For purposes of this Section
4(e), the terms "excess parachute payment," "parachute payment," and "base
amount" will have the meanings assigned to them by Section 280G of the Code.
The
determination of whether any reduction in such payments or benefits to be
provided under this Agreement is required pursuant to the preceding sentence
will be made at the expense of the Company by the Accounting Firm. The fact
that
Executive's right to payments or benefits may be reduced by reason of the
limitations contained in this Section 4(e) will not of itself limit or otherwise
affect any other rights of Executive other than pursuant to this Agreement.
In
the event that any payment or benefit intended to be provided under this
Agreement or otherwise is required to be reduced pursuant to this Section 4(e),
Executive will be entitled to designate the payments and/or benefits to be
so
reduced in order to give effect to this Section. The Company will provide
Executive with all information reasonably requested by Executive to permit
Executive to make such designation. In the event that Executive fails to make
such designation within 10 business days of the date of termination of
Executive's employment, the Company may effect such reduction in any manner
it
deems appropriate.
12
(f) Any
Gross-Up Payment made to Executive pursuant to this Section 4 shall be exempt
from Code Section 409A pursuant to the short-term deferral exception to Code
Section 409A. Absent further guidance from the United States Treasury
Department, the Internal Revenue Service or any judicial authority relating
to
the application of Section 409A to Section 280G Gross-Up Payments, Gross-Up
Payments pursuant to this Section 4 shall be made as follows:
(i) With
respect to any Gross-Up Payment that can be reasonably calculated as of the
time
of a Change in Control or shortly thereafter, such Gross-Up Payment shall be
made to Executive no later than March 15th of the calendar year following the
year in which the Change in Control occurs;
(ii) With
respect to any Gross-Up Payment that results from Executive becoming eligible
for benefits under this Agreement upon Executive's termination of employment,
such Gross-Up Payment shall be made to Executive no later than March 15th of
the
calendar year following the year in which the earlier of (A) the event giving
rise to Executive's Good Reason occurs or (B) Executive's termination of
employment; and
(iii) With
respect to any Gross-Up Payment that is required to be made to Executive
pursuant to Section 4(c), such Gross-Up Payment shall be made to Executive
no
later than March 15th of the calendar year following the year in which the
alleged obligation of Executive, as reflected by Executive's receipt of a claim
by the Internal Revenue Service, is received by Executive.
5. Non-exclusivity
of Rights.
Nothing
in this Agreement shall prevent or limit Executive's continuing or future
participation in any plan, program, policy or practice provided by the Company
or any Parent Company and for which Executive may qualify, nor shall anything
herein limit or otherwise affect such rights as Executive may have under any
contract or agreement with the Company or any Parent Company. Amounts that
are
vested benefits or that Executive is otherwise entitled to receive at or
subsequent to the Date of Termination under any plan, policy, practice or
program of or any contract or agreement with the Company shall be payable in
accordance with such plan, policy, practice or program or contract or agreement,
except as explicitly modified by this Agreement.
13
6. Full
Settlement; Resolution of Disputes.
(a) Except
where Executive's employment is terminated for Cause, the Company's obligation
to make any payments provided for in this Agreement and otherwise to perform
its
obligations hereunder shall not be affected by any set-off, counterclaim,
recoupment, defense or other claim, right or action which the Company may have
against Executive or others. In no event shall Executive be obligated to seek
other employment or take any other action by way of mitigation of the amounts
payable to Executive under any of the provisions of this Agreement and such
amounts shall not be reduced whether or not Executive obtains other employment.
Subject to Executive's agreement to repay certain fees and expenses as provided
below in Section 6(c), the Company shall pay promptly as incurred, to the full
extent permitted by law, all legal fees and expenses that Executive may
reasonably incur as a result of any dispute or contest (regardless of the
outcome thereof) by the Company, Executive or others of the validity or
enforceability of, or the existence of liability under, any provision of this
Agreement or any guarantee of performance thereof (including as a result of
any
contest by Executive about the amount of any payment pursuant to this
Agreement), plus in each case interest on any delayed payment at one hundred
twenty percent (120%) of the Federal Mid-Term Rate under Section 1274(d) of
the
Code.
(b) If
there
shall be any dispute or contest between the Company and Executive (i) in the
event of any termination of Executive's employment by the Company, whether
such
termination was for Cause, or (ii) in the event of any termination of employment
by Executive whether Good Reason existed, then the resolution of such dispute
or
contest shall be finally determined by arbitration, which may be initiated
by
either the Company or Executive, pursuant to the Federal Arbitration Act in
accordance with the rules then in force of the American Arbitration Association.
The arbitration proceedings shall take place in Pittsburgh, Pennsylvania or
such
other location as the parties in dispute hereafter may agree upon; and such
proceedings will be conducted in the English language and shall be governed
by
the laws of the State of Pennsylvania as such laws are applied to agreements
between residents of the State entered into and to be performed entirely within
the State. There shall be one arbitrator, as shall be agreed upon by the parties
in dispute, who shall be an individual skilled in the legal and business aspects
of the subject matter of this Agreement and of the dispute. In the absence
of
such agreement, each party in dispute shall select one arbitrator and the
arbitrators so selected shall select a third arbitrator. In the event the
arbitrators cannot agree upon the selection of a third arbitrator, such third
arbitrator shall be appointed by the American Arbitration Association at the
request of any of the parties in dispute. The arbitrators shall be individuals
skilled in the legal and business aspects of the subject matter of this
Agreement and of the dispute. The decision rendered by the arbitrator or
arbitrators shall be accompanied by a written opinion in support thereof. Such
decision shall be final and binding upon the parties in dispute without right
of
appeal, it being the intent of the parties that such decision, and, irrespective
of any contrary provision of the laws of the State respecting rights of appeal,
such decision may not be appealed. The burden of proving that Executive is
not
entitled to receive the amounts and the benefits contemplated by this Agreement
shall be on the Company.
14
(c) In
the
event of such an arbitration and provided that Executive shall repay the
following amounts, fees and expenses if the final and binding decision of the
arbitrator(s) is that Executive's termination was for Cause or that Good Reason
did not exist for termination of employment by Executive, (i) the Company shall
advance to Executive all legal fees and expenses that Executive may reasonably
incur as a result of any such action, and (ii) if a final and binding decision
of the arbitrator(s) is not obtained by the six-month anniversary of the date
the Company or Executive first provided notice to the other party of the dispute
or contest (the "Dispute Notice"), the Company shall pay all amounts, and
provide all benefits, to Executive and/or Executive's family or other
beneficiaries, as the case may be, that the Company would be required to pay
or
provide pursuant to Sections 3(a) or 3(c) if such termination were by the
Company without Cause or by Executive with Good Reason. If
the
final and binding decision of the arbitrator(s) is that Executive's termination
was not for Cause or that Good Reason did exist for such termination by
Executive then, (I) if such decision is before the six-month anniversary of
the
receipt of the Dispute Notice, Executive shall receive all payments and benefits
contemplated by this Agreement, plus interest on any delayed payment or benefit
at one hundred twenty percent (120%) of the Federal Mid-Term Rate under Section
1274(d) of the Code
or (II)
if such decision is after the six-month anniversary of the receipt of the
Dispute Notice such that all payments and benefits contemplated by this
Agreement have already been paid, Executive shall receive interest (calculated
in the same manner as set forth above) for the six-month period the payments
and
provision of benefits were delayed. In no event may the arbitrator or
arbitrators award any other damages or award of any kind. Notwithstanding the
foregoing, nothing in this Agreement is intended to, or shall be construed
as,
affecting the rights and obligations of Executive and the Company to submit
any
dispute (other than such disputes contemplated by, and resolved in accordance
with Sections 6(b) and 6(c)) to the appropriate dispute resolution process
in
accordance with any applicable dispute resolution plan intended to provide
a
procedural mechanism, whether exclusive or non-exclusive, for the resolution
of
any and all disputes between the Company and its present or former
employees.
7. Restrictive
Covenants.
(a) Nondisclosure
of Confidential Information.
Executive shall hold in confidence for the benefit of the Company and any Parent
Company all Confidential Information. Executive will not disclose any
Confidential Information to any person or entity other than the Company or
any
Parent Company and those designated by them, either during or subsequent to
Executive's employment by the Company, nor will Executive use any Confidential
Information, except (i) in the regular course of Executive's employment by
the
Company, without the prior written consent of the Company or any Parent Company
or (ii) as may otherwise be required by law or legal process.
(b) Actions
Upon Termination; Assistance with Claims.
Upon
Executive's employment termination for whatever reason, Executive shall neither
take or copy nor allow a third party to take or copy, and shall deliver to
the
Company all property of the Company and any Parent Company, including, but
not
limited to, all Confidential Information regardless of the medium (i.e., hard
copy, computer disk, CD ROM) on which the information is contained. During
and after Executive's employment by the Company, Executive will provide
reasonable assistance to the Company and any Parent Company in the defense
of
any claims or potential claims that may be made or threatened to be made against
the Company or any Parent Company in any action, suit, or proceeding, whether
civil, criminal, administrative, or investigative ("Proceeding") and will
provide reasonable assistance to the Company and any Parent Company in the
prosecution of any claims that may be made by the Company or any Parent Company
in any Proceeding, to the extent that such claims may relate to Executive's
employment by the Company. For the avoidance of doubt, reasonable assistance
would not include Executive being required to provide information that could
reasonably result in criminal or civil charges or penalties being assessed
or
imposed against Executive in his individual capacity. Executive
shall, unless precluded by law, promptly inform the Company if Executive is
asked to participate (or otherwise become involved) in any Proceeding involving
such claims or potential claims. Executive shall also, unless precluded by
law,
promptly inform the Company if Executive is asked to assist in any investigation
(whether governmental or private) of the Company or any Parent Company (or
their
actions), regardless of whether a lawsuit has then been filed against the
Company or Parent Company with respect to such investigation. The Company shall
reimburse Executive for all of Executive's reasonable out-of-pocket expenses
associated with such assistance, including travel expenses and any attorneys'
fees and shall pay a reasonable per diem fee (equal to 1/250th of Executive's
annual salary rate at Executive's Date of Termination) for Executive's
services.
15
(c) Noncompetition.
As long
as Executive is employed by the Company and for a period of six (6) months
thereafter, Executive shall not, without the prior written consent of the
Company or any Parent Company, which in the case of termination will not be
unreasonably withheld, participate or engage in, directly or indirectly (as
an
owner, partner, employee, officer, director, independent contractor, consultant,
advisor or in any other capacity calling for the rendition of services, advice,
or acts of management, operation or control), any segment or division of a
business that, during Executive's employment, is in direct competition with
the
business conducted by the Company, any Parent Company or any of their affiliates
within the United States (hereinafter, the "Geographic Area"); provided,
however, that the foregoing shall not be construed to preclude Executive from
making any investments in any securities to the extent such securities are
traded on a national securities exchange or over-the-counter market and such
investment does not exceed five percent (5%) of the issued and outstanding
voting securities of such issuer.
(d) Nonsolicitation
of Employees.
During
Executive's employment and for a period of six (6) months thereafter, Executive
shall not, without the consent of the Company or any Parent Company, directly
or
indirectly solicit any current employee of the Company, any Parent Company
or
any of their affiliates to leave such employment and join or become affiliated
with any business that is in direct competition with the business conducted
by
the Company, the Parent Company, or any of their affiliates within the
Geographic Area.
(e) Mutual
Non-disparagement.
Executive shall refrain from making any statements about the Company, the Parent
Company, or their officers or directors that would disparage, or reflect
unfavorably upon the image or reputation of the Company, the Parent Company
or
any such officer or director. The Company and the Parent Company shall refrain
from making any statements about Executive that would disparage, or reflect
unfavorably upon the image or reputation of, Executive.
(f) Irreparable
Harm.
Executive acknowledges that: (i) Executive's compliance with this Section 7
is
necessary to preserve and protect the Confidential Information, and the goodwill
of the Company, the Parent Company and their affiliates as going concerns;
(ii)
any failure by Executive to comply with the provisions of this Section may
result in irreparable and continuing injury for which there may be no adequate
remedy at law; and (iii) in the event that Executive should fail to comply
with
the terms and conditions of this Section, the Company or any Parent Company
shall be entitled, in addition to such other relief as may be proper, to seek
all types of equitable relief (including, but not limited to, the issuance
of an
injunction and/or temporary restraining order) as may be necessary to cause
Executive to comply with this Section, to restore to the Company or the Parent
Company its property, and to make the Company and the Parent Company
whole.
16
(g) Unenforceability.
If any
provision(s) of this Section 7 shall be found invalid or unenforceable, in
whole
or in part, then such provision(s) shall be deemed to be modified or restricted
to the extent and in the manner necessary to render the same valid and
enforceable, or shall be deemed excised from this Agreement, as the case may
require, and this Agreement shall be construed and enforced to the maximum
extent permitted by law, as if such provision(s) had been originally
incorporated herein as so modified or restricted, or as if such provision(s)
had
not been originally incorporated herein, as the case may be.
8. Successors.
(a) This
Agreement is personal to Executive and shall not be assignable by Executive
without the prior written consent of the Company otherwise than by will or
the
laws of descent and distribution. If Executive should die while any amounts
would still be payable to Executive hereunder if she or he had continued to
live, all such amounts, unless otherwise provided herein, shall be paid in
accordance with the terms of this Agreement to Executive's heirs or
representatives or, if there be no such designee, to Executive's
estate.
(b) This
Agreement shall inure to the benefit of and be binding upon the Company and
its
successors and assigns.
(c) The
Company will require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business
and/or assets of the Company to assume expressly and agree to perform this
Agreement in the same manner and to the same extent that the Company would
be
required to perform it if no such succession had taken place. As used in this
Agreement, "Company" shall mean the Company as hereinbefore defined and any
successor to its business and/or assets as aforesaid which assumes and agrees
to
perform this Agreement by operation of law, or otherwise.
9. Prohibition
of Payments by Regulatory Agencies.
Notwithstanding anything to the contrary contained in this Agreement, the
Company shall not be obligated to make any payment to Executive under this
Agreement if the payment would violate any rule, regulation or order of any
regulatory agency having jurisdiction over the Company or any of its
subsidiaries; provided, however, that the Company covenants to Executive that
it
will take all reasonable steps to obtain any regulatory agency approvals that
may be required in order to make payments to Executive as provided herein.
17
10. Miscellaneous.
(a) This
Agreement shall be governed by and construed in accordance with the laws of
the
Commonwealth of Pennsylvania without reference to principles of conflict of
laws. The captions of this Agreement are not part of the provisions hereof
and
shall have no force or effect. This Agreement may not be amended or modified
otherwise than by a written agreement executed by the parties hereto. This
Agreement supersedes all previous agreements relating to the subject matter
of
this Agreement, written or oral, between the parties hereto and contains the
entire understanding of the parties hereto including, but not limited to that
Prior Severance Agreement dated November 10, 2004, between Great Plains Energy,
the Company and Executive.
(b) All
notices and other communications hereunder shall be in writing and shall be
given by hand delivery to the other party or by registered or certified mail,
return receipt requested, postage prepaid, addressed as follows:
If
to the Company:
|
If
to Executive:
|
|
Strategic
Energy L.L.C.
|
Xxxxxx
Xxxxx
|
|
Attn:
General Counsel
|
Strategic
Energy L.L.C.
|
|
Xxx
Xxxxxxx Xxxxxx
|
Xxx
Xxxxxxx Xxxxxx
|
|
Xxxxxxxxxx,
Xxxxxxxxxxxx
|
Xxxxxxxxxx,
Xxxxxxxxxxxx
|
|
00000
|
15222
|
|
or
to
such other address as either party shall have furnished to the other in writing
in accordance herewith. Notice and communications shall be effective when
actually received by the addressee.
(c) The
invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provision of this Agreement,
which other provisions shall remain in full force and effect.
(d) This
Agreement is intended to meet the requirements of Section 409A of the Code
and
may be administered in a manner that is intended to meet those requirements
and
shall be construed and interpreted in accordance with such intent. To the extent
that any payment or benefit provided hereunder is subject to Section 409A of
the
Code, such payment or benefit shall be provided in a manner that will meet
the
requirements of Section 409A of the Code, including regulations or other
guidance issued with respect thereto, such that the payment or benefit shall
not
be subject to the excise tax applicable under Section 409A of the Code. Any
provision of this Agreement that would cause any payment or benefit to fail
to
satisfy Section 409A of the Code shall be amended (in a manner that as closely
as practicable achieves the original intent of this Agreement) to comply with
Section 409A of the Code on a timely basis, which may be made on a retroactive
basis, in accordance with regulations and other guidance issued under Section
409A of the Code. In the event additional regulations or other guidance is
issued under Section 409A of the Code or a court of competent jurisdiction
provides additional authority concerning the application of Section 409A with
respect to the payments described in Section 4 of the Agreement, then the
provisions of such Section shall be amended to permit such payments to be made
at the earliest time permitted under such additional regulations, guidance
or
authority that is practicable and achieves the original intent of this
Agreement.
18
(e) The
Company may withhold from any amounts payable under this Agreement such federal,
state or local taxes as shall be required to be withheld pursuant to any
applicable law or regulation.
(f) Executive's
or the Company's failure to insist upon strict compliance with any provision
of
this Agreement or the failure to assert any right Executive or the Company
may
have hereunder, including, without limitation, the right of Executive to
terminate employment for Good Reason, shall not be deemed to be a waiver of
such
provision or right or any other provision or right of this
Agreement.
(g) Executive
and the Company acknowledge that, except as may otherwise be provided under
any
other written agreement between Executive and the Company, the employment of
Executive by the Company is "at will" and, may be terminated by either Executive
or the Company at any time. Except as provided in Section 3(c), if prior to
the
Effective Date, Executive's employment with the Company terminates, then
Executive shall have no further rights under this Agreement.
(h) This
Agreement may be executed in any number of counterparts, each of which shall
be
deemed to be an original and all of which shall constitute one agreement that
is
binding upon each of the parties hereto, notwithstanding that all parties are
not signatories to the same counterpart.
11. Guarantee
of Payment.
Great
Plains Energy hereby guarantees to Executive, the payment of any and all amounts
that may be due Executive under this Agreement, and the performance and
discharge of all other obligations of the Company under this Agreement after
written demand has been delivered to the Company and the Company has refused
to
so pay or perform; provided, however, that Great Plains Energy's obligation
to
perform hereunder is subject to all the conditions to the obligations of the
Company to pay or perform under this Agreement and any rights of non-payment
or
non-performance that the Company may have (other than bankruptcy or
insolvency).
IN
WITNESS WHEREOF, each of Great Plains Energy, the Company and Executive has
executed this Agreement as of the day and year first above written.
GREAT
PLAINS ENERGY INCORPORATED
|
||
EXECUTIVE:
|
||
By:
|
||
Name:
|
Xxxxxx
Xxxxx
|
|
Title:
|
||
STRATEGIC
ENERGY, L.L.C.
|
||
By:
|
||
Name:
|
||
Title:
|
19