Exhibit 10(l)
EMPLOYMENT AGREEMENT
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This Employment Agreement is entered into as of the 1/st/ day of July,
2000, by and between TXU Corp. f/k/a Texas Utilities Company, a Texas
corporation (the "Company") and Xxxxxxx X. XxXxxxx, an individual (the
"Employee").
RECITALS
WHEREAS, Employee currently serves the Company as Executive Vice President
and Chief Financial Officer, as well as the President of the Company's indirect
wholly-owned subsidiary, TXU Business Services Company ("Employer"); and
WHEREAS, the Company and Employer currently desire Employee to continue in
such capacity, and the parties desire to evidence their understanding and
agreement regarding the terms and conditions of Employee's continued employment,
all as set forth herein.
NOW, THEREFORE, the parties agree as follows.
1. Employment. The Company shall cause Employer to employ Employee.
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Employee hereby agrees to serve the Company and Employer, subject to the terms
and conditions set forth herein.
2. Term. This Employment Agreement shall commence as of the date first
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set forth above and, unless terminated earlier pursuant to the provisions
hereof, shall expire on June 30, 2003 ("Term").
3. Initial Title and Duties. Employee shall initially serve as Executive
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Vice President and Chief Financial Officer of the Company and as President of
Employer and shall perform such duties and tasks as he may be called upon by
Employer to perform from time to time. Employee will endeavor to promote the
business affairs and interests of Employer and will devote all of his working
time and attention to Employer.
4. Compensation.
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(a) Base Salary. As compensation for his services hereunder, Employee
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shall initially receive a base salary of $41,666.67 per month, payable in equal
installments at such periods as shall from time to time be established by
Employer as regular payroll periods. Employee's base salary shall be subject to
review and modification from time to time at the discretion of Employer;
provided that Employee's base salary may be increased, but not decreased, during
the Term.
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(b) Annual Bonus. Employee shall be entitled to receive incentive
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bonus awards subject to, and in accordance with the provisions of, the Company's
Annual Incentive Plan ("AIP").
(c) Restricted Stock Awards. Following, and in connection with, the
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executive officer annual review by the Organization and Compensation Committee
of the Board of Directors of the Company ("O&C Committee") in each year during
the Term, Employee shall be entitled to receive an award of at least 20,000
shares of restricted stock under the TXU Long-Term Incentive Compensation Plan
("LTICP"). Each such award shall be subject to terms, conditions and
restrictions comparable to those contained in contemporaneous awards granted to
comparably situated officers within the TXU Corp. System. In the event that no
awards of restricted stock are made under the LTICP at one or more of the above-
referenced times to any other officer or key employee, Employee shall, in lieu
of receiving an award of restricted stock, receive at such time(s) an award of a
type comparable to that awarded to other officers of similar rank having a value
reasonably comparable to an award of at least 20,000 shares of restricted stock
(taking into consideration performance targets and vesting periods applicable to
restricted stock awards heretofore granted under the LTICP, and assuming that
performance goals and targets would have been attained so that 100% of the
restricted stock would have become payable). In the event that no awards of any
type are awarded under the LTICP at one or more of the above-referenced times,
Employee will be entitled to receive at such time(s) cash in an amount equal to
the present value of an award of at least 20,000 shares of restricted stock
(taking into consideration performance targets and vesting periods applicable to
restricted stock awards heretofore granted under the LTICP and assuming that
performance goals and targets would have been attained so that 100% of the
restricted stock would have become payable).
(d) Employee Benefits. Employee shall be entitled to participate in
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all of the Company's employee benefit plans, programs, arrangements and fringe
benefit policies to the extent he is qualified to do so by virtue of his
employment with Employer, subject to the terms, conditions and limitations of
such plans, arrangements and policies, as they may be amended, altered or
terminated from time to time. For purposes of Employee's participation in
certain of the Company's executive compensation plans, Employee shall be deemed
to be a "corporate officer" of Employer.
(e) Provision for Company Automobile. Employee shall be entitled to
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participate in the Company's executive automobile policy on the same basis as
other executives of Employer subject to the terms and conditions of such
automobile policy as it may be amended, altered or terminated from time to time.
5. Severance Benefits. If Employee is terminated without Cause (as
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defined in Section 8 below) during the Term, Employee shall be entitled to
receive the compensation and benefits described in (a), (b), (c) and (d)
hereinbelow:
(a) A one-time cash severance payment, which shall be payable as soon
as reasonably practical following such termination, but in any event within ten
(10) business days thereafter, in an aggregate amount equal to the sum of the
following:
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(i) The greater of: (a) the amount of base salary (as in effect
on the date of the termination) plus annual incentive
awards (at the highest previous target level and assuming
performance satisfying a target payout) that Employee would
have received had he continued in the employment of
Employer hereunder through the expiration of the Term; or
(b) twelve months base salary (as in effect on the date of
the termination) plus Employee's target annual incentive
award for the year of the termination;
(ii) An amount equal to the sum of: (a) the value (as of the
date of termination) of all unvested and otherwise
unpayable restricted stock (or alternative) awards
previously granted to Employee under the LTICP (as if
performance criteria had been met to permit payment of 100%
of the award), and (b) the forfeited portion of Employee's
accounts under the TXU Deferred and Incentive Compensation
Plan ("DICP") and the TXU Salary Deferral Program ("SDP")
(valued in accordance with the relevant provisions of the
DICP and SDP, respectively);
(iii) Employer (or the Company) shall (a) to the extent such
benefits are not continued, or (b) Employee's termination
would constitute an Early Termination under the provisions
of the TXU Split-Dollar Life Insurance Program ("Split-
Dollar Life Insurance Program"), provide Employee with the
benefits contemplated under the Split-Dollar Life Insurance
Program, as in effect on the effective date of this
Agreement, as if the Participation Agreement between the
Company and Employee entered into under the Split-Dollar
Life Insurance Program continued in accordance with its
terms as in effect on the effective date of this Agreement
as if Employee's termination had not occurred.
(iv) An amount equal to the sum of: (a) matching contributions
which would have been made under the DICP and SDP had
Employee continued to defer salary under such plans at the
rate in effect as of the date of such termination for the
remainder of the Term, plus (b) the value of restricted
stock (or alternative) awards which had not theretofore
been made to Employee under paragraph 4(c) hereof (valued
on the basis of the assumption that the performance
criteria which would have been applicable to such awards
had been met so that 100% of the award(s) would have been
payable); and
(v) An amount equal to the difference between (a) the aggregate
required monthly premium for continuation coverage under
the Consolidated
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Omnibus Budget Reconciliation Act of 1985 ("COBRA") under
the TXU Medical (including prescription drugs), Dental and
Group Life Insurance Plans, and (b) the aggregate monthly
employee contribution rate in effect for Employee under
such plans immediately prior to such termination,
multiplied by eighteen (18).
(b) In addition to such special severance payment, Employee shall be
entitled to the following benefits:
(i) Employer (or the Company) shall pay on behalf of Employee,
or shall reimburse Employee for, the physician fees for one
physical examination of Employee under the general
parameters of the Company's executive physical program for
each year during the period equal to the greater of the
remainder of the Term or one (1) year following Employee's
termination; and
(ii) Employee shall, at Employer's (or the Company's) cost, be
entitled to financial planning services equivalent to
services available under the TXU executive financial
planning program during the period equal to the greater of
the remainder of the Term or twelve months following
Employee's termination.
(c) In addition to such severance payments and benefits, Employee
shall be entitled to additional retirement compensation ("Additional Retirement
Compensation") in an amount equal to the difference between: (i) the benefit
Employee is entitled to receive under the TXU Retirement Plan ("Retirement
Plan") and the TXU Second Supplemental Retirement Plan ("Supplemental Retirement
Plan"), and (ii) the amount of the retirement benefit Employee would have been
entitled to receive under the Retirement Plan and the Supplemental Retirement
Plan had Employee earned additional Accredited Service (as defined in the
Retirement Plan) through the expiration of the Term. The Additional Retirement
Compensation shall be payable in periodic installments in the form elected by
Employee with respect to benefits under the Retirement Plan. The amount of each
such periodic installment shall be determined by the actuary for the Retirement
Plan using reasonable actuarial assumptions substantially similar to those used
in connection with the determination of benefits payable under the Retirement
Plan. The Additional Retirement Compensation is not intended to meet the
qualification requirements of Section 401 of the Internal Revenue Code of 1986,
as amended ("Code"); however the Additional Retirement Compensation shall be
fully funded and payable under the rabbi trust established under the
Supplemental Retirement Plan.
(d) In the event that the foregoing payments, or any portion thereof,
constitute an "excess parachute payment" under Section 4999 of the Code, or any
successor provision, Employer (or the Company) shall, in addition to providing
the foregoing payments and benefits, pay Employee a tax gross-up cash payment(s)
in an amount agreed upon by Employee to be sufficient to fully offset the excise
tax which Employee is, or may be, required to pay as a result thereof. Such tax
gross-up
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payment shall be paid to Employee concurrently with the cash payments provided
for hereinabove; provided that if the amount of such tax gross-up payment cannot
be finally determined by such date, Employer shall pay Employee concurrently
with such other payments an estimate, determined in good faith by Employer, of
the minimum amount of the required tax gross-up payment. Thereafter, Employer
shall promptly (but in any event within forty-five (45) days of Employee's
termination) determine in good faith the total amount of the tax gross-up
payment and seek to obtain Employee's approval thereof. The remaining portion
of the tax gross-up payment shall be paid to Employee promptly after Employee
approves the total amount.
Notwithstanding any other provision of this Agreement seemingly to the
contrary, each of the benefits provided for in paragraph (b) above shall be
provided to Employee if and only to the extent that a similar type of benefit is
not provided to Employee through his subsequent employment with another
employer. Additionally, Employee shall not be entitled to any of the payments
or benefits provided for under this Section 5 if Employee's termination is for
Cause, or if the circumstances of Employee's termination entitle him to the
payments and benefits provided for in Section 6 below.
6. Change In Control.
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(a) If, during the Term: (i) Employee voluntarily terminates his
employment with Employer (or its successor) within six (6) months following a
Change in Control (as defined below), or (ii) Employee's employment is
terminated by Employer (or its successor) without Cause, or Employee terminates
his employment for Good Reason (as defined below), in either case within twenty-
four (24) months following a Change in Control Employee will be entitled to
receive the following payments and benefits which shall be paid as soon as
reasonably practical following such termination but in any event within ten (10)
business days thereafter:
(1) A one-time cash payment equal to three (3) times the
aggregate of Employee's annualized base salary in effect
immediately prior to the Change in Control plus Employee's
target annual incentive award for the year in which the
Change in Control occurs;
(2) Employer (or the Company) shall, to the extent such benefits
are not continued under the provisions of the Split-Dollar
Life Insurance Program, provide Employee with the benefits
contemplated under the Split-Dollar Life Insurance Program,
as in effect on the effective date of this Agreement, as if
the Participation Agreement between the Company and Employee
entered into under the Split-Dollar Life Insurance Program
continued in accordance with its terms as in effect on the
effective date of this Agreement as if Employee's
termination had not occurred.
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(3) A one-time cash payment equal to the aggregate of (a)
Employer matching contributions which would have been made
under the DICP and SDP had Employee continued to defer
salary under such plans at the rate in effect as of the
effective date of the Change in Control, for an additional
three years following the termination of employment, plus
(b) an amount equal to the value of restricted stock (or
alternative) awards which had not theretofore been made to
Employee under paragraph 4(c) hereof (valued on the basis of
the assumption that the performance criteria which would
have been applicable to such award(s) had been met so that
100% of the award would have been payable);
(4) A one-time cash payment equal to the aggregate of (a) the
value (as of the date termination) of all unvested and
otherwise unpayable restricted stock (or alternative) awards
previously granted to Employee under the LTICP (as if
performance criteria had been met to permit payment of 100%
of the award), and (b) the forfeited portion of Employee's
accounts under the DICP and SDP (valued in accordance with
the relevant provisions of the DICP and SDP, respectively);
(5) A one-time cash payment equal to the difference between (a)
the monthly COBRA premium for coverage under the TXU Medical
(including prescription drugs), Dental and Group Life
Insurance Plans, and (b) the monthly employee contribution
under such plans in effect for Employee immediately prior to
the termination, multiplied by eighteen (18);
(6) Employee shall, at Employer's (or the Company's) cost, be
entitled to financial planning services equivalent to
services available under the Company's executive financial
planning program for three years from the date of the
termination; and
(7) Employer (or the Company) shall pay on behalf of Employee,
or shall reimburse Employee for, the physician fees for one
physical examination of Employee per year for three years
from the date of the termination.
(b) In addition to such severance payments and benefits, Employee
shall be entitled to the Additional Retirement Compensation as calculated and
payable under the provisions of paragraph 5(c) above.
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(c) In the event that the foregoing payments, or any portion thereof,
constitute an "excess parachute payment" under Section 4999 of the Code, or any
successor provision, Employer (or the Company) shall, in addition to providing
the foregoing payments and benefits, pay Employee a tax gross-up cash payment(s)
in an amount agreed upon by Employee to be sufficient to fully offset the
excise tax which Employee is, or may be, required to pay as a result thereof.
Such tax gross-up payment shall be paid to Employee concurrently with the cash
payments provided for hereinabove; provided that if the amount of such tax
gross-up payment cannot be finally determined by such date, Employer shall pay
Employee concurrently with such other payments an estimate, determined in good
faith by Employer, of the minimum amount of the required tax gross-up payment.
Thereafter, Employer shall promptly (but in any event within forty-five (45)
days of Employee's termination) determine in good faith the total amount of the
tax gross-up payment and seek to obtain Employee's approval thereof. The
remaining portion of the tax gross-up payment shall be paid to Employee promptly
after Employee approves the total amount.
(d) For purposes of this Agreement, "Change in Control" shall mean a
change in control of the Company of a nature that would be required to be
reported in response to Item 1(a) of the Securities and Exchange Commission Form
8-K, as in effect on the date hereof, pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934, as amended ("Exchange Act"), or would have been
required to be so reported but for the fact that such event had been "previously
reported" as that term is defined in Rule 12b-2 of Regulation 12B under the
Exchange Act; provided that, without in any way limiting the foregoing, a Change
in Control shall be deemed to have occurred if any one or more of the following
events occurs: (i) any Person is or becomes the beneficial owner (as defined in
Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the
Company representing 20% or more of the combined voting power of the Company's
then outstanding securities having the right to vote at elections of directors
of the Company ("Voting Securities"); (ii) individuals who constitute the board
of directors of the Company on the effective date of this Agreement (the
"Incumbent Board") cease for any reason to constitute at least a majority
thereof, provided that any person becoming a director subsequent to the
effective date of this Agreement whose election, or nomination for election by
the Company's shareholders, was approved by at least three-quarters of the
Company's directors comprising the Incumbent Board (either by a specific vote or
by approval of the proxy statement of the Company in which such person is named
as a nominee for director, without objection to such nomination) shall, for
purposes of this clause (ii), be considered as though such person were a member
of the Incumbent Board; (iii) a recapitalization or reclassification of the
Voting Securities of Employer, which results in either (a) a decrease by 33% or
more in the aggregate percentage ownership of Voting Securities held by
Independent Shareholders (on a primary basis or on a fully diluted basis after
giving effect to the exercise of stock options and warrants), or (b) an increase
in the aggregate percentage ownership of Voting Securities held by non-
Independent Shareholders (on a primary basis or on a fully diluted basis after
giving effect to the exercise of stock options and warrants) to greater than
50%; (iv) all or substantially all of the assets of the Company are liquidated
or transferred to an unrelated party; or (v) the Company is a party to a merger,
consolidation, reorganization or similar transaction pursuant to which the
Company is not the surviving ultimate parent entity. For purposes of this
definition, the term "Person" shall mean and include any individual,
corporation, partnership, group,
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association or other "person", as such term is used in Section 14(d) of the
Exchange Act, other than the Company, a subsidiary of the Company or any
employee benefit plan(s) sponsored or maintained by the Company or any
subsidiary thereof, and the term "Independent Shareholder" shall mean any
shareholder of the Company except any employee(s) or director(s) of Employer or
any employee benefit plan(s) sponsored or maintained by the Company or any
subsidiary thereof.
(e) For purposes of this Agreement, "Good Reason" shall mean any one
or more of the following occurrences: (i) Employee's base salary as in effect
immediately prior to the Change in Control, or as it may be increased subsequent
to the Change in Control, is reduced; (ii) Employee's status or responsibilities
with Employer immediately prior to the Change in Control are materially reduced,
or Employee is assigned duties which are inconsistent with such status or
responsibilities, or Employee's business location is materially changed; (iii)
the Company (or its successor) fails to continue in effect any pension, health
care or executive compensation plan or arrangement in which Employee was
participating immediately prior to the Change in Control, or Employer or the
Company (or their successors) takes some action which materially reduces
Employee's benefits under any such plan or program, without (in either such
case) providing Employee with substantially similar benefits; or (iv) any
successor to the Company in connection with the Change in Control does not,
prior to the Change in Control, expressly assume this Agreement.
7. Definition of Cause. For purposes of this Agreement, the term "Cause"
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shall mean any one or more of the following: (a) the material breach by the
Employee of this Agreement; (b) Employee's breach of his fiduciary duty to
Employer and/or its shareholders in his capacity as an officer and/or director
of Employer; (c) any action or failure to act on the part of Employee which
results in material injury to the assets, business prospects or reputation of
Employer or any affiliate of Employer; (d) the appropriation of a material
business opportunity of Employer or any affiliate of Employer, including
attempting to secure or securing any personal profit in connection with any
transaction entered into on behalf of Employer; or (e) Employee's failure to
substantially perform his duties and responsibilities hereunder, including
without limitation Employee's breach of Employer's Code of Conduct or an express
employment policy of Employer.
8. Confidentiality and Nondisclosure.
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(a) Employee understands and agrees that he will be given
Confidential Information (as defined below) and Training (as defined below)
during his employment with Employer relating to the business of Employer and/or
its Affiliates (as defined below). Employee hereby expressly agrees to maintain
in strictest confidence and not to use in any way (including without limitation
in any future business relationship of Employee), publish, disclose or authorize
anyone else to use, publish or disclose in any way, any Confidential Information
relating in any manner to the business or affairs of Employer and/or its
Affiliates. Employee agrees further not to remove or retain any figures,
calculations, letters, documents, lists, papers, or copies thereof, which embody
Confidential Information of Employer and/or its Affiliates, and to return, prior
to Employee's termination of employment, any such information in Employee's
possession. If
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Employee discovers, or comes into possession of, any such information after his
termination he shall promptly return it to Employer. Employee acknowledges that
the provisions of this paragraph are consistent with Employer's Code of Conduct
with which Employee, as an employee of Employer, is bound.
(b) For purposes of this Agreement, "Confidential Information"
includes, but is not limited to, information in the possession of, prepared by,
obtained by, compiled by, or that is used by Employer or any of its Affiliates
or customers and (1) is proprietary to, about, or created by Employer or its
Affiliates or customers; (2) gives Employer or its Affiliates or customers some
competitive business advantage, the opportunity of obtaining such advantage, or
disclosure of which might be detrimental to the interest of Employer or its
Affiliates or customers; and (3) is not typically disclosed by Employer or its
Affiliates or customers, or known by persons who are not employed by Employer or
its Affiliates or customers. Without in any way limiting the foregoing and by
way of example, Confidential Information shall include: information not
generally available to the general public pertaining to Employer's business
operations such as financial and operational information and data, operational
plans and strategies, business and marketing strategies and plans for various
products and services, global operational planning, and acquisition and
divestiture planning.
(c) For purposes of this Agreement, "Training" includes, but is not
limited to, specialized and valuable training regarding Confidential
Information.
(d) For purposes of this Agreement, "Affiliate" shall mean any
person, or entity (or sub-unit of an entity) that, directly or indirectly
through one or more intermediaries, controls or is controlled by, or is under
common control with Employer.
9. Non-Compete and Non-Solicitation. Employee acknowledges and agrees
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that: (1) in order to perform his obligations and job duties for Employer,
Employee will gain Training and access to Confidential Information regarding
Employer and/or its Affiliates or customers; (2) use of such Confidential
Information in competition with Employer and/or its Affiliates or customers
would be detrimental to the business interests of Employer and/or its Affiliates
or customers; and (3) Employee would not have been allowed to gain access to
Confidential Information, or to provide the obligations and job duties
contemplated under this Agreement without his promises and agreements contained
in the following paragraph.
Employee agrees that, during his employment with Employer, and for a period
of one (1) year thereafter, Employee shall not, directly or indirectly, either
as an employee, employer, independent contractor, consultant, agent, principal,
partner, stockholder, officer, director, or in any other individual or
representative capacity, either for his own benefit or the benefit of any other
person or entity: (i) engage or participate in a business which competes in a
material manner with Employer or any of its Affiliates; (ii) contact, solicit or
attempt to solicit the business or patronage of any of Employer's (or
Affiliate's) customers, or prospective customers, or any person, firm,
corporation, company, partnership, association or entity which was contacted or
whose business was solicited, serviced or maintained by Employer (or its
Affiliates) during the term of Employee's employment
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with Employer; or (iii) solicit, recruit, induce, encourage or in any way cause
any employee of Employer (or an Affiliate) to terminate his/her employment with
Employer (or such Affiliate). Notwithstanding the foregoing, the restriction
provided in (i) above shall apply following the termination of this Agreement
only if Employee receives the payments and benefits provided for in Section 5 or
6 above.
10. Injunctive Relief. Because of the unique nature of the business to be
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conducted by Employer and its Affiliates and the Confidential Information
relating thereto, Employee acknowledges, understands and agrees that Employer
and/or its Affiliates will suffer immediate and irreparable harm if Employee
fails to comply with any of his obligations under Sections 8 and 9 of this
Agreement, and that monetary damages alone will be inadequate to compensate
Employer or its Affiliates for such breach. Accordingly, Employee agrees that
Employer and/or its Affiliates shall, in addition to any other remedies
available to it at law or in equity, be entitled to temporary, preliminary, and
permanent injunctive relief and specific performance to enforce the terms of
Sections 8 and 9 without the necessity of proving inadequacy of legal remedies
or irreparable harm or posting bond.
11. Deductions and Nonalienation of Benefits. Employee shall be required
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to pay promptly on demand, by payroll deduction or otherwise, the amount
required to be withheld by Employer for income and employment taxes in respect
of amounts paid under this Agreement. No right, benefit or payment hereunder
shall be subject to anticipation, alienation, sale, assignment, pledge,
encumbrance or charge, and any attempt to anticipate, alienate, sell, assign,
pledge, encumber or charge the same shall be null and void. No right, benefit
or payment hereunder shall in any manner be subject to, voluntarily or
involuntarily, the debts, contracts, liabilities or torts of Employee or be
otherwise subject to any execution, garnishment, attachment, insolvency,
bankruptcy or legal proceedings of any character or legal sequestration, levy or
sale. If Employee or any other beneficiary hereunder shall become bankrupt or
attempt to anticipate, alienate, sell, assign, pledge, encumber or charge any
right, benefit or payment hereunder, such right, benefit or payment may be
terminated at any time by Employer without liability or further obligation.
12. Employer's Right to Modify Employee Benefit Plans. Nothing in this
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Agreement shall be construed as a limitation on the absolute right of Employer,
at any time and from time to time at its sole discretion, to amend or modify, in
whole or in part, or to terminate, any employee benefit plan, program or policy
sponsored or maintained by Employer; provided, however, that no such amendment
or termination shall eliminate or reduce the payments and benefits provided for
in Sections 5 and 6 hereof, it being understood that, if from and after the date
hereof, any plan or program referenced in Section 5 or 6 hereof is terminated or
amended and such termination or amendment would reduce the payments or benefits
provided for under Section5 or 6, such terminated or amended plan or program
shall, for purposes of calculating the payments and benefits under Section 5 or
6 hereof be deemed to be in effect as of the effective date of this Agreement.
Any plan or program which is specifically referenced herein shall be deemed to
include any successor plan or program or any similar plan or program adopted and
maintained by Employer to provide Employee with the same or similar benefits
provided for under such specifically referenced plan or program.
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13. Entire Agreement. This Agreement contains the complete understanding
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and agreement between the parties and supersedes any and all other agreements,
understandings, or communications of any kind, either oral or in writing,
between the parties hereto with respect to the subject matter hereof. Each
party to this Agreement acknowledges that no representations, inducements,
promises, or agreements, orally or otherwise, have been made by any party, or
anyone acting on behalf of any party, which are not embodied herein, and that no
other agreement, statement, or promise with respect to the subject matter of
this Agreement shall be valid or binding. Subject to the provisions of Section
5 and 6 hereof regarding certain payments and benefits upon a termination
satisfying the criteria set forth in such sections, nothing in this Agreement
shall be construed as conferring any right upon Employee to continued employment
by Employer. Any modification of this Agreement will be effective only if it is
in writing signed by both of the parties hereto.
14. Severability. If any provision in this Agreement is held by a court
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of competent jurisdiction to be invalid, void, or unenforceable, the remaining
provisions shall nevertheless continue in full force without being impaired or
invalidated in any way.
15. Survival. The parties hereby acknowledge and agree that certain
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provisions of this Agreement are, by their nature, intended to survive this
Agreement and the parties agree that all of such provisions shall survive
Employee's termination of employment, regardless of the reason for such
termination. Employee acknowledges and agrees that the covenants and
restrictions in Sections 8 and 9 of this Agreement are reasonable and necessary
due to the highly competitive, confidential and proprietary nature of the
services to be performed by Employee hereunder.
16. Successors. This Agreement shall be binding upon and inure to the
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benefit of Employee, his heirs, beneficiaries and personal representatives, and
Employer and any successor or assignee of Employer, but neither this Agreement,
nor any of the rights or obligations of either party hereunder may be assigned,
in whole or in part, except Employer may assign this Agreement to any affiliate
of Employer. Employee will seek to obtain the written acknowledgment and
assumption of this agreement by any successor of Employer prior to any
transaction or event pursuant to which such successor becomes the successor to
Employer. Whether or not such written acknowledgment and assumption is given,
this Agreement shall be binding on such successor and its assignees.
17. Notices. Any notices to be given hereunder by either party to the
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other may be effected by personal delivery in writing, by facsimile or by mail,
registered or certified, postage prepaid to the current address of the other
party with return receipt requested. Notices delivered personally or by
facsimile shall be deemed communicated as of actual receipt; mailed notices
shall be deemed communicated as of three (3) days after mailing.
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18. Governing Law. This Agreement shall be governed by and construed in
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accordance with the laws of the State of Texas.
EXECUTED effective as of the 1st day of July, 2000.
TXU CORP.
By: /s/ Xxxx Xxx
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Xxxx Xxx, Chairman of the Board
and Chief Executive
EMPLOYEE:
/s/ Xxxxxxx X. XxXxxxx
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Xxxxxxx X. XxXxxxx
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