DEFERRAL AGREEMENT John M. Hoskins
Exhibit
10.35
Xxxx
X. Xxxxxxx
The
TVA
Board of Directors, or their delegees, has approved your participation in TVA’s
Long-Term Deferred Compensation Plan (Plan) under the following
terms:
|
Duration
of deferral agreement
|
3
Years
|
|
First
compensation credit
|
$60,000
(10/01/2006)
|
|
Second
and third compensation credits
|
$60,000
each (10/01/07 & 10/01/08)
|
|
Total
credits over service period
|
$180,000
|
|
Expiration
date
|
09/30/2009
|
Please
read the following provisions carefully and indicate your approval by signing
at
the designated place below.
___________________________________________________________________________________________
As
a
participant in the Plan, I hereby agree to be bound by the following terms
and
conditions:
Annual
deferred compensation credits of $60,000 will be made to an account in my name
to cover a service period of three years, beginning on October 1, 2006 and
ending on September 30, 2009, provided that I remain employed by TVA through
September 30, 2009. Upon the expiration of this agreement,
the entire amount credited to my account, including interest or return as
provided below, will be paid to me in a lump sum unless I elect below to have
the credits transferred to an account in TVA’s Merit Incentive Supplemental
Retirement Income Plan (MISRIP).
I
understand that I must be an employee of TVA at the time of the expiration
of
this agreement, or no payments or transfers under the Plan will be made by
TVA,
and any credits to my account will be extinguished. However, in the
event that TVA terminates my employment during the term of this agreement
through no act or delinquency of my own, this agreement is terminated as of
the
date of my termination and no further credits will be made under it and any
credits in my account from this agreement, including interest or return as
provided below, at the time of termination will become vested. If I
elect below to have the balance of my account transferred to my TVA MISRIP
account, all credits from this agreement will be paid out to me in accordance
with my deferral election applicable to such credits or in accordance with
otherwise applicable IRS rules. If TVA terminates my employment for
cause prior to the expiration of this agreement, no payments will be made and
my
account balance will be extinguished. In the event of my
death during the term of this agreement, my account balance will be paid to
the
person identified on my beneficiary designation form or, in the absence of
such
designation, to my estate, in a manner permitted by applicable IRS
rules.
Interest
will be credited to the balance reflected in my deferral account on the same
basis as interest is calculated and credited under XXXXXX. In the
alternative, I may choose to have my balance adjusted based on the return of
the
funds I select under the same conditions as are contained in
MISRIP. I understand that I am solely responsible for the risk
associated with any return elections that I make.
The
Plan
may be amended or discontinued by the Board. If the Board elects to
discontinue the Plan, any credits to my account as of the date of termination
of
the Plan will be paid to me in accordance with applicable IRS
rules. I elect the following option for payment upon expiration of
this agreement:
X Balance
of account to be paid to me in a lump sum
______ Balance
of account to be transferred to TVA MISRIP account
I
understand that nothing contained in this agreement shall be construed as
conferring the right to continue in the employment of TVA as an executive or
in
any other capacity and that the payment election I have made is final (not
revocable).
/s/
Xxxx X.
Xxxxxxx
10/27/06
Xxxx
X.
Xxxxxxx Date
/s/
Xxxx X. Xxxx,
Xx.
10/30/06
Chief
Officer
Date
