Exhibit 10(a)8
AMENDED AND RESTATED
CHANGE IN CONTROL AGREEMENT
THIS AMENDED AND RESTATED CHANGE IN CONTROL AGREEMENT ("Agreement")
made and entered into by and between The Southern Company ("Southern"), Southern
Company Services, Inc. (the "Company") and Xx. X. Xxxxxx Xxxxxxx ("Xx. Xxxxxxx")
(hereinafter collectively referred to as the "Parties") is effective January 1,
2007. This Agreement amends and restates the Amended and Restated Change in
Control Agreement entered into by Xx. Xxxxxxx, Southern and the Company,
effective June 1, 2004.
WITNESSETH:
WHEREAS, Xx. Xxxxxxx is the Executive Vice President and General Counsel of
the Company;
WHEREAS, the Company wishes to provide to Xx. Xxxxxxx certain severance
benefits under certain circumstances following a change in control (as defined
herein) of Southern or the Company;
NOW, THEREFORE, in consideration of the premises, and the agreements of the
Parties set forth in this Agreement, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereby
agree as follows:
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ARTICLE 1 - DEFINITIONS.
For purposes of this Agreement, the following terms shall have the
following meanings:
1.1 "Annual Compensation" shall mean Xx. Xxxxxxx'x Base Salary plus Target
Bonus under the Company's Short Term Bonus Plan.
1.2 "Base Salary" shall mean Xx. Xxxxxxx'x highest annual base salary rate
during the twelve (12) month period immediately preceding the date the Change in
Control is Consummated.
1.3 "Beneficial Ownership" shall mean beneficial ownership within the
meaning of Rule 13d-3 promulgated under the Exchange Act.
1.4 "Benefit Index" shall mean the Xxxxxx Associates' Benefit Index(r), or
if such index is no longer available, cannot be used, or if pursuant to Section
1.5 hereof another Benefits Consultant has been chosen by the Compensation
Committee, such other comparable index utilized by the Benefits Consultant.
1.5 "Benefits Consultant" shall mean Xxxxxx Associates or such other
nationally recognized employee benefits consulting firm as shall be designated
in writing by the Compensation Committee upon the occurrence of a Preliminary
Change in Control that would result in a Subsidiary Change in Control.
1.6 "Board of Directors" shall mean the board of directors of the Company.
1.7 "Business Combination" shall mean a reorganization, merger or
consolidation of Southern or sale or other disposition of all or substantially
all of the assets of Southern.
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1.8 "Change in Control" shall mean,
(a) with respect to Southern, the occurrence of any of the following:
(i) The Consummation of an acquisition by any Person of
Beneficial Ownership of 20% or more of Southern's Voting Securities;
provided, however, that for purposes of this Section 1.8(a)(i) the
following acquisitions of Southern's Voting Securities shall not
constitute a Change in Control:
(A) any acquisition directly from Southern;
(B) any acquisition by Southern;
(C) any acquisition by any employee benefit plan (or related
trust) sponsored or maintained by Southern or any Southern
Subsidiary;
(D) any acquisition by a qualified pension plan or publicly
held mutual fund;
(E) any acquisition by an employee of Southern or a Southern
Subsidiary, or Group composed exclusively of such employees; or
(F) any Business Combination which would not otherwise
constitute a Change in Control because of the application of
clauses (A), (B) or (C) of Section 1.8(a)(iii);
(ii) A change in the composition of the Southern Board whereby
individuals who constitute the Incumbent Board cease for any reason to
constitute at least a majority of the Southern Board; or
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(iii) The Consummation of a Business Combination, unless,
following such Business Combination, all of the following three
conditions are met:
(A) all or substantially all of the individuals and entities
who held Beneficial Ownership, respectively, of Southern's Voting
Securities immediately prior to such Business Combination hold
Beneficial Ownership, directly or indirectly, of 65% or more of
the combined voting power of the Voting Securities of the
corporation surviving or resulting from such Business
Combination, (including, without limitation, a corporation which
as a result of such Business Combination holds Beneficial
Ownership of all or substantially all of Southern's Voting
Securities or all or substantially all of Southern's assets)
(such surviving or resulting corporation to be referred to as
"Surviving Company"), in substantially the same proportions as
their ownership, immediately prior to such Business Combination,
of Southern's Voting Securities;
(B) no Person (excluding any qualified pension plan,
publicly held mutual fund, Group composed exclusively of
Employees or employee benefit plan (or related trust) of
Southern, any Southern Subsidiary or Surviving Company) holds
Beneficial Ownership, directly or indirectly, of 20% or more of
the combined voting power of the then outstanding Voting
Securities of Surviving Company except to the extent that such
ownership existed prior to the Business Combination; and
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(C) at least a majority of the members of the board of
directors of Surviving Company were members of the Incumbent
Board on the date of the Preliminary Change in Control.
(b) with respect to the Company, the occurrence of any of the
following:
(i) The Consummation of an acquisition by any Person of
Beneficial Ownership of 50% or more of the combined voting power of
the then outstanding Voting Securities of the Company; provided,
however, that for purposes of this Section 1.8(b)(i), any acquisition
by Xx. Xxxxxxx, any other employee of Southern or a Southern
Subsidiary, or Group composed entirely of such employees, any
qualified pension plan, any publicly held mutual fund or any employee
benefit plan (or related trust) sponsored or maintained by Southern or
any Southern Subsidiary shall not constitute a Change in Control;
(ii) The Consummation of a reorganization, merger or
consolidation of the Company ("Company Business Combination"), in each
case, unless, following such Company Business Combination, Southern or
a Southern Subsidiary Controls the corporation surviving or resulting
from such Company Business Combination; or
(iii) The Consummation of the sale or other disposition of all or
substantially all of the assets of the Company to an entity which
Southern or a Southern Subsidiary does not Control ("Subsidiary Change
in Control").
1.9 "COBRA Coverage" shall mean any continuation coverage to which Xx.
Xxxxxxx or his dependents may be entitled pursuant to Code Section 4980B.
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1.10 "Code" shall mean the Internal Revenue Code of 1986, as amended.
1.11 "Common Stock" shall mean the common stock of Southern.
1.12 "Company" shall mean Southern Company Services, Inc., its successors
and assigns.
1.13 "Compensation Committee" shall mean the Compensation and Management
Succession Committee of the Southern Board.
1.14 "Consummation" shall mean the completion of the final act necessary to
complete a transaction as a matter of law, including, but not limited to, any
required approvals by the corporation's shareholders and board of directors, the
transfer of legal and beneficial title to securities or assets and the final
approval of the transaction by any applicable domestic or foreign governments or
governmental agencies.
1.15 "Control" shall mean, in the case of a corporation, Beneficial
Ownership of more than 50% of the combined voting power of the corporation's
Voting Securities, or in the case of any other entity, Beneficial Ownership of
more than 50% of such entity's voting equity interests.
1.16 "Economic Equivalent" or "Economic Equivalence" shall have the meaning
set forth in Section 1.23(f) hereof.
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1.17 "Employee Outplacement Program" shall mean the program established by
the Company from time to time for the purpose of assisting employees in finding
employment outside of the Company which provides for the following services: (a)
self assessment, career decision and goal setting; (b) job market research and
job sources; (c) networking and interviewing skills; (d) planning and
implementation strategy; (e) resume writing, job hunting methods and salary
negotiation; and (f) office support and job search resources.
1.18 "Company" shall mean Southern Company Services, Inc., its successors
and assigns.
1.19 "Company Business Combination" shall have the meaning set forth in
Section 1.8(b)(ii) hereof.
1.20 "Equity Based Bonus Plan" shall mean a plan or arrangement that
provides for the grant to participants of stock options, restricted stock, stock
appreciation rights, phantom stock, phantom stock appreciation rights or any
other similar rights the terms of which provide a participant with the potential
to receive the benefit of any increase in value of the underlying equity or
notional amount (e.g., number of phantom shares) from the date of grant through
a subsequent date.
1.21 "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.
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1.22 "Executive Employee" shall mean those employees of the Company of
Grade Xxxxx 00 or above.
1.23 "Good Reason" shall mean, without Xx. Xxxxxxx'x express written
consent, after written notice to the Company, and after a thirty (30) day
opportunity for the Company to cure, the continuing occurrence of any of the
events described in Subsections (a)(i), (b)(i), (c)(i), (d)(i) or (d)(ii) of
this Section 1.23. In the case of Xx. Xxxxxxx claiming benefits under this
Agreement upon a Subsidiary Change in Control, the foregoing notice and
opportunity to cure will be satisfied if Xx. Xxxxxxx provides to the
Compensation Committee a copy of his written offer of employment by the
acquiring company within thirty (30) days of such offer along with a written
explanation describing how the terms of such offer satisfy the requirements of
Subsections (a)(ii), (b)(ii), (c)(ii), (d)(iii) or (e) of this Section 1.23. The
Compensation Committee shall make a determination of whether such written offer
of employment satisfies the requirements of Sections 1.23(a)(ii), (b)(ii),
(c)(ii), (d)(iii) or (e) hereof upon consultation with the Benefits Consultant
and shall notify Xx. Xxxxxxx of its decision within thirty (30) days of receipt
of Xx. Xxxxxxx'x written offer of employment. Any dispute regarding the
Compensation Committee's decision shall be resolved in accordance with Article
III hereof.
(a) Inconsistent Duties.
(i) Change in Control. A meaningful and detrimental alteration in
Xx. Xxxxxxx'x position or in the nature or status of his
responsibilities from those in effect immediately prior to the Change
in Control.
(ii) Subsidiary Change in Control. In the event of a Subsidiary
Change in Control, Good Reason shall exist if Xx. Xxxxxxx is offered
employment with the acquiring employer with a job title, duties and
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status which are materially and detrimentally lower than Xx. Xxxxxxx'x
job title, duties and status in effect at the Company as of the date
the offer of employment is received.
(b) Reduced Compensation.
(i) Change in Control. A reduction of five percent (5%) or more
by the Company in any of the following amounts of compensation
expressed in subparagraphs (A), (B) or (C) hereof, except for a less
than ten percent (10%), across-the-board reduction in such
compensation amounts similarly affecting ninety-five percent (95%) or
more of the Executive Employees eligible for such compensation:
(A) Xx. Xxxxxxx'x Base Salary;
(B) the sum of Xx. Xxxxxxx'x Base Salary plus Target Bonus
under the Company's Short Term Bonus Plan, as in effect on the
day immediately preceding the day the Change in Control is
Consummated; or
(C) the sum of Xx. Xxxxxxx'x Base Salary plus Target Bonus
under the Company's Short Term Bonus Plan and Long Term Bonus
Plan plus the Target Bonus under the Company's Equity Based Bonus
Plan, each of which as in effect on the day immediately preceding
the day the Change in Control is Consummated.
(ii) Subsidiary Change in Control. In the event of a Subsidiary
Change in Control, Good Reason shall exist if Xx. Xxxxxxx is offered
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Base Salary, Target Bonus under the acquiring company's Short Term
Bonus Plan and Long Term Bonus Plan and Target Bonus under the
acquiring company's Equity Based Bonus Plan that, in the aggregate, is
less than ninety percent (95%) of Xx. Xxxxxxx'x Base Salary plus
Target Bonus under the Company's Short Term Bonus Plan and Long Term
Bonus Plan, plus Target Bonus under the Company's Equity Based Bonus
Plan, each of which as in effect on the day the offer of employment is
received;
(c) Relocation.
(i) Company. A change in Xx. Xxxxxxx'x work location to a
location more than fifty (50) miles from the facility where Xx.
Xxxxxxx was located on the day immediately preceding the day the
Change in Control is Consummated, unless such new work location is
within fifty (50) miles of Xx. Xxxxxxx'x principal place of residence
on the day immediately preceding the day the Change in Control is
Consummated. The acceptance, if any, by Xx. Xxxxxxx of employment by
the Company at a work location which is outside the fifty mile radius
set forth in this Section 1.23(c) shall not be a waiver of Xx.
Xxxxxxx'x right to refuse subsequent transfer by the Company to a
location which is more than fifty (50) miles from Xx. Xxxxxxx'x
principal place of residence on the day immediately preceding the day
the Change in Control is Consummated, and such subsequent
nonconsensual transfer shall be "Good Reason" under this Agreement;
(ii) Subsidiary Change in Control. In the case of a Subsidiary
Change in Control, Good Reason shall exist if Xx. Xxxxxxx'x work
location under the terms of the offer of employment from the acquiring
employer is more than fifty (50) miles from Xx. Xxxxxxx'x work
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location at the Company as of the date the offer of employment by the
acquiring employer is received.
(d) Benefits and Perquisites.
(i) Change in Control - Retirement and Welfare Benefits. The
taking of any action by the Company that would directly or indirectly
cause a Material Reduction in the Retirement and Welfare Benefits to
which Xx. Xxxxxxx is entitled under the Company's Retirement and
Welfare Benefit plans in which Xx. Xxxxxxx was participating on the
day immediately preceding the day the Change in Control is
Consummated.
(ii) Vacation and Paid Time Off. The failure by the Company to
provide Xx. Xxxxxxx with the number of paid vacation days or, if
applicable, paid time off days to which Xx. Xxxxxxx is entitled on the
basis of years of service with the Company in accordance with the
Company's normal vacation policy or the paid time off program
(whichever applicable) in effect on the day immediately preceding the
day the Change in Control is Consummated (except for across-the-board
vacation policy or paid time off program changes or policy or program
terminations similarly affecting at least ninety-five percent (95%) of
all Executive Employees of the Company).
(iii) Subsidiary Change in Control. In the event of a Subsidiary
Change in Control, Good Reason shall exist if Xx. Xxxxxxx is offered a
package of Retirement and Welfare Benefits by the acquiring employer
that is not Economically Equivalent, as determined under Sections
1.23(f) and (g) hereof.
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(e) Adoption of Severance Agreement. In the event of a Subsidiary
Change in Control, Good Reason shall exist if the offer of employment by
the acquiring employer does not include an agreement to enter into a
severance agreement substantially in the form of Exhibit B attached hereto.
(f) Economic Equivalence. For purposes of Section 1.23(d)(iii) above,
an acquiring employer's package of Retirement and Welfare Benefits shall be
considered Economically Equivalent if, in the written opinion of the
Benefits Consultant, the anticipated, employer-provided value of what Xx.
Xxxxxxx is expected to derive from the acquiring employer's Retirement and
Welfare Benefits is equal to or greater than ninety percent (90%) of such
value Xx. Xxxxxxx would have derived from the Company's Retirement and
Welfare Benefits using the Benefit Index.
(g) Benefit Index Guidelines. For purposes of Section 1.23(f) above,
the following guidelines shall be followed by the Company, the acquiring
employer and the Benefits Consultant in the performance of the Benefit
Index calculations:
(i) Upon a Preliminary Change in Control that if Consummated
would result in a Subsidiary Change in Control, the Company and the
acquiring employer shall provide to the Benefits Consultant the
applicable benefit plan provisions for the plan year in which the
Subsidiary Change in Control is anticipated to occur. Plan provisions
for the immediately preceding plan year may be provided if the
Benefits Consultant determines that there have been no changes to such
plans that would materially affect the determination of Economic
Equivalence. If the acquiring employer's relevant plan provisions have
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not previously been included in the Benefits Consultant's Benefit
Index database, the acquiring employer shall provide to the Benefits
Consultant such plan information as the Benefits Consultant shall
request in writing as soon as practicable following such request. The
Compensation Committees shall take such action as is reasonably
required to facilitate the transfer of such information from the
acquiring employer to the Benefits Consultant.
(ii) The standard Benefit Index assumptions for the plan year
from which the plan provisions are taken shall be used.
(iii) The Company shall provide to the Benefit Consultant actual
data for its Employees.
(iv) The determination of whether or not the acquiring employer's
Retirement and Welfare Benefits are Economically Equivalent to the
Retirement and Welfare Benefits provided to Xx. Xxxxxxx by the Company
shall be determined on an aggregate basis. All assessments shall
consider all benefits in total and no individual-by-individual,
plan-by-plan determination of Economic Equivalence shall be made.
1.24 "Group" shall have the meaning set forth in Section 14(d) of the
Exchange Act.
1.25 "Group Health Plan" shall mean the group health plan covering Xx.
Xxxxxxx, as such plan may be amended from time to time.
1.26 "Group Life Insurance Plan" shall mean the group life insurance plan
covering Xx. Xxxxxxx, as such plan may be amended from time to time.
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1.27 "Incumbent Board" shall mean those individuals who constitute the
Southern Board as of February 23, 2006, plus any individual who shall become a
director subsequent to such date whose election or nomination for election by
Southern's shareholders was approved by a vote of at least 75% of the directors
then comprising the Incumbent Board. Notwithstanding the foregoing, no
individual who shall become a director of the Southern Board subsequent to
February 23, 2006 whose initial assumption of office occurs as a result of an
actual or threatened election contest (within the meaning of Rule 14a-11 of the
Regulations promulgated under the Exchange Act) with respect to the election or
removal of directors or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Southern Board shall be a
member of the Incumbent Board.
1.28 "Long Term Bonus Plan" shall mean any bonus type plan or arrangement
designed to provide incentive based compensation to participants upon the
achievement of objective or subjective goals that measure performance over a
period of more than twelve months.
1.29 "Month of Service" shall mean any calendar month during which Xx.
Xxxxxxx has worked at least one (1) hour or was on approved leave of absence
while in the employ of the Company or any other Southern Subsidiary.
1.30 "Material Reduction" shall mean (i) any change in a retirement plan or
arrangement that has the effect of reducing the present value of the projected
benefits to be provided to Xx. Xxxxxxx by five percent (5%) or more, (ii) any
five percent (5%) or more reduction in medical, health and accident and
disability benefits as a percentage of premiums or premium equivalents in
accordance with the Company's prior practice as measured over a period of the
three previous plan years from the date the Change in Control is Consummated, or
(iii) any five percent (5%) or more reduction in employer matching funds as a
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percentage of employee contributions in accordance with the Company's prior
practice measured over a period of the previous three plan years from the date
the Change in Control is Consummated.
1.31 "Omnibus Plan" shall mean the Southern Company Omnibus Incentive
Compensation Plan, and the Design and Administrative Specifications duly adopted
thereunder, as in effect on the date a Change in Control is Consummated.
1.32 "Pension Plan" shall mean The Southern Company Pension Plan or any
successor thereto, as in effect on the date a Change in Control is Consummated.
1.33 "Performance Dividend Program" or "PDP" shall mean the Performance
Dividend Program under the Omnibus Plan or any replacement thereto, as in effect
on the date a Change in Control is Consummated.
1.34 "Performance Pay Program" or "PPP" shall mean the Performance Pay
Program under the Omnibus Plan or any replacement thereto, as in effect on the
date a Change in Control is Consummated.
1.35 "Person" shall mean any individual, entity or group within the meaning
of Section 13(d)(3) or 14(d)(2) of Exchange Act.
1.36 "Preliminary Change in Control" shall mean the occurrence of any of
the following as administratively determined by the Southern Committee.
(a) Southern or the Company has entered into a written agreement, such
as, but not limited to, a letter of intent, which, if Consummated, would
result in a Change in Control;
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(b) Southern, the Company or any Person publicly announces an
intention to take or to consider taking actions which, if Consummated,
would result in a Change of Control under circumstances where the
Consummation of the announced action or intended action is legally and
financially possible;
(c) Any Person achieves the Beneficial Ownership of fifteen percent
(15%) or more of the Common Stock; or
(d) The Southern Board or the Board of Directors has declared that a
Preliminary Change of Control has occurred.
1.37 "Retirement and Welfare Benefits" shall mean benefits provided by the
following types of plans and arrangements: pension plans, defined contribution
plans (matched savings, profit sharing, money purchase, ESOP, and similar plans
and arrangements), plans providing for death benefits while employed or retired
(life insurance, survivor income, and similar plans and arrangements), plans
providing for short-term disability benefits (including accident and sick time),
plans providing for long-term disability benefits, plans providing health-care
benefits (including reimbursements during active employment or retirement
related to expenses for medical, vision, hearing, dental, and similar plans and
arrangements).
1.38 "Separation Date" shall mean the date on which Xx. Xxxxxxx'x
employment with the Company is terminated; provided, however, that solely for
purposes of Section 2.2(c) hereof, if, upon termination of employment with the
Company, Xx. Xxxxxxx is deemed to have retired pursuant to the provisions of
Section 2.3 hereof, Xx. Xxxxxxx'x Separation Date shall be the effective date of
his retirement pursuant to the terms of the Pension Plan.
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1.39 "Short Term Bonus Plan" shall mean any bonus type plan or arrangement
designed to provide incentive based compensation to participants upon the
achievement of objective or subjective goals that measure performance over a
period of twelve months or less.
1.40 "Southern" shall mean The Southern Company, its successors and
assigns.
1.41 "Southern Board" shall mean the board of directors of Southern.
1.42 "Southern Committee" shall mean the committee comprised of the
Chairman of the Southern Board, the Chief Financial Officer of Southern and the
General Counsel of Southern.
1.43 "Southern Subsidiary" shall mean any corporation or other entity
Controlled by Southern or another Southern Subsidiary.
1.44 "Subsidiary Change in Control" shall have the meaning set forth in
Section 1.8(b)(iii) hereof.
1.45 "Target Bonus" shall mean the amount of incentive compensation
expressed as either a percent of salary or pay, an expected dollar amount, the
number of awards granted or such other quantifiable measure to determine the
amount to be paid or awards granted under the terms of the respective Short Term
Bonus Plan, Long Term Bonus Plan or Equity Based Bonus Plan, as used by the
Company or respective acquiring employer to measure the market competitiveness
of its employee compensation programs.
1.46 "Termination for Cause" or "Cause" shall mean Xx. Xxxxxxx'x
termination of employment with the Company upon the occurrence of any of the
following:
(a) The willful and continued failure by Xx. Xxxxxxx to substantially
perform his duties with the Company (other than any such failure resulting
from Xx. Xxxxxxx'x Total Disability or from Xx. Xxxxxxx'x retirement or any
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such actual or anticipated failure resulting from termination by Xx.
Xxxxxxx for Good Reason) after a written demand for substantial performance
is delivered to him by the Southern Board, which demand specifically
identifies the manner in which the Southern Board believes Xx. Xxxxxxx has
not substantially performed his duties; or
(b) The willful engaging by Xx. Xxxxxxx in conduct that is
demonstrably and materially injurious to the Company, monetarily or
otherwise, including but not limited to any of the following:
(i) any willful act involving fraud or dishonesty in the course
of Xx. Xxxxxxx'x employment by the Company;
(ii) the willful carrying out of any activity or the making of
any statement by Xx. Xxxxxxx which would materially prejudice or
impair the good name and standing of the Company, Southern or any
other Southern Subsidiary or would bring the Company, Southern or any
other Southern Subsidiary into contempt, ridicule or would reasonably
shock or offend any community in which the Company, Southern or such
other Southern Subsidiary is located;
(iii) attendance by Xx. Xxxxxxx at work in a state of
intoxication or otherwise being found in possession at his workplace
of any prohibited drug or substance, possession of which would amount
to a criminal offense;
(iv) violation of the Company's policies on drug and alcohol
usage, fitness for duty requirements or similar policies as may exist
from time to time as adopted by the Company's safety officer;
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(v) assault or other act of violence by Xx. Xxxxxxx against any
person during the course of employment; or
(vi) Xx. Xxxxxxx'x indictment for any felony or any misdemeanor
involving moral turpitude.
No act or failure to act by Xx. Xxxxxxx shall be deemed "willful"
unless done, or omitted to be done, by Xx. Xxxxxxx not in good faith and
without reasonable belief that his action or omission was in the best
interest of the Company.
Notwithstanding the foregoing, Xx. Xxxxxxx shall not be deemed to have
been terminated for Cause unless and until there shall have been delivered
to him a copy of a resolution duly adopted by the affirmative vote of the
majority of the Southern Board at a meeting called and held for such
purpose (after reasonable notice to Xx. Xxxxxxx and an opportunity for him,
together with counsel, to be heard before the Southern Board), finding
that, in the good faith opinion of the Southern Board, Xx. Xxxxxxx was
guilty of conduct set forth in Section 1.46(a) or (b) hereof and specifying
the particulars thereof in detail.
1.47 "Total Disability" shall mean total disability under the terms of the
Pension Plan.
1.48 "Voting Securities" shall mean the outstanding voting securities of a
corporation entitling the holder thereof to vote generally in the election of
such corporation's directors.
1.49 "Waiver and Release" shall mean the Waiver and Release substantially
in the form of Exhibit A attached hereto.
1.50 "Year of Service" shall mean an Employee's Months of Service divided
by twelve (12) rounded to the nearest whole year, rounding up if the remaining
number of months is seven (7) or greater and rounding down if the remaining
number of months is less than seven (7). If an Employee has a break in his
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service with his Employing Company, he will receive credit under this Plan for
the service prior to the break in service only if the break in service was less
than five years and his service prior to the break exceeds the length of the
break in service.
ARTICLE II - SEVERANCE BENEFITS
2.1 Eligibility.
(a) Except as otherwise provided herein, if Xx. Xxxxxxx'x employment
is involuntarily terminated by the Company at any time during the two year
period following a Change in Control of Southern or the Company for reasons
other than Cause or if Xx. Xxxxxxx voluntarily terminates his employment
with the Company for Good Reason at any time during the two year period
following a Change in Control of Southern or the Company, he shall be
entitled to receive the benefits described in Section 2.2 hereof, subject
to the terms and conditions described in this Article II.
(b) Limits on Eligibility. Notwithstanding anything to the contrary
herein, Xx. Xxxxxxx shall not be eligible to receive benefits under this
Plan if Xx. Xxxxxxx :
(i) is not actively at work on his Separation Date, unless Xx.
Xxxxxxx is capable of returning to work within twelve (12) weeks of
the beginning of any leave of absence from work;
(ii) voluntarily terminates his employment with the Company for
other than Good Reason;
(iii) has his employment terminated by the Company for Cause;
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(iv) accepts the transfer of his employment to Southern, any
Southern Subsidiary or any employer that acquires all or substantially
all of the assets of Southern;
(v) accepts the transfer of his employment to any employer (or
its affiliate) that acquires all or substantially all of the assets of
a Southern Subsidiary or the Company and becomes an employee of any
such employer (or its affiliate) following such acquisition (provided,
however, that if Xx. Xxxxxxx would otherwise have been entitled to
severance benefits under this Agreement but for this Section
2.1(b)(v), Xx. Xxxxxxx shall be eligible for benefits under this
Agreement except for those outplacement, severance and welfare
benefits described in Sections 2.2(a), (b) and (c) hereof);
(vi) is involuntarily separated from service with the Company
after refusing an offer of employment by Southern or a Southern
Subsidiary, under circumstances where the terms of such offer would
not have amounted to Good Reason for voluntary termination of
employment from the Company by comparing each item of compensation and
benefits of such offer of employment as set forth in Section
1.23(a)(i), (b)(i), (c)(i), (d)(i) and (d)(ii) above, with such items
of compensation and benefits to which he is entitled at the Company as
of the day immediately preceding the day of such offer of employment;
(vii) refuses an offer of employment by an acquiring employer in
a Subsidiary Change in Control under circumstances where such offer
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does not provide Good Reason under the requirements of Section
1.23(a)(ii), (b)(ii), (c)(ii), (d)(iii) or (e) hereof.
(viii) elects to receive the benefits of any other voluntary or
involuntary severance, separation or outplacement program, plan or
agreement maintained by the Company in lieu of benefits under this
Agreement; provided however, that the receipt of benefits under any
retention plan or agreement shall not be deemed to be the receipt of
benefits under any severance, separation or outplacement program for
purposes of this Agreement.
2.2 Severance Benefits. Upon the Company's receipt of an effective Waiver
and Release, Xx. Xxxxxxx shall be entitled to receive the following severance
benefits:
(a) Employee Outplacement Services. Xx. Xxxxxxx shall be eligible to
participate in the Employee Outplacement Program, which program shall not
be less than six (6) months duration measured from Xx. Xxxxxxx'x Separation
Date.
(b) Severance Amount. Xx. Xxxxxxx shall be paid in cash an amount
equal to three times his Annual Compensation (the "Severance Amount"). If
any portion of the Severance Amount constitutes an "excess parachute
payment" (as such term is defined under Code Section 280G ("Excess
Parachute Payment")), the Company shall pay to Xx. Xxxxxxx an additional
amount calculated by determining the amount of tax under Code Section 4999
that he otherwise would have paid on any Excess Parachute Payment with
respect to the Change in Control and dividing such amount by a decimal
determined by adding the tax rate under Code Section 4999 ("Excise Tax"),
the hospital insurance tax under Code Section 3101(b) ("HI Tax") and
federal and state income tax measured at the highest marginal rates
22
("Income Tax") and subtracting such result from the number one (1) (the
"280G Gross-up"); provided, however, that no 280G Gross-up shall be paid
unless the Severance Amount plus all other "parachute payments" to Xx.
Xxxxxxx under Code Section 280G exceeds three (3) times Xx. Xxxxxxx'x "base
amount" (as such term is defined under Code Section 280G ("Base Amount"))
by ten percent (10%) or more; provided further, that if no 280G Gross-up is
paid, the Severance Amount shall be capped at three (3) times Xx. Xxxxxxx'x
Base Amount, less all other "parachute payments" (as such term is defined
under Code Section 280G) received by Xx. Xxxxxxx, less one dollar (the
"Capped Amount"), if the Capped Amount, reduced by HI Tax and Income Tax,
exceeds what otherwise would have been the Severance Amount, reduced by HI
Tax, Income Tax and Excise Tax.
For purposes of this Section 2.2(b), whether any amount would
constitute an Excess Parachute Payment and any other calculations of tax,
e.g., Excise Tax, HI Tax, Income Tax, etc., or other amounts, e.g., Base
Amount, Capped Amount, etc., shall be determined by a nationally recognized
firm specializing in federal income taxes as selected by the Compensation
Committee, and such calculations or determinations shall be binding upon
Xx. Xxxxxxx, Southern and the Company.
(c) Welfare Benefit.
(i) Except as provided in Section 2.3 hereof, Xx. Xxxxxxx shall
be eligible to participate in the Company's Group Health Plan for a
period of six (6) months for each of Xx. Xxxxxxx'x Years of Service,
not to exceed a period of five (5) years, beginning on the first day
of the first month following Xx. Xxxxxxx'x Separation Date unless
23
otherwise specifically provided under such plan, upon Xx. Xxxxxxx'x
payment of both the Company's and Xx. Xxxxxxx'x premium under such
plan. Xx. Xxxxxxx shall also be entitled to elect coverage under the
Group Health Plan for his dependents who are participating in the
Group Health Plan on Xx. Xxxxxxx'x Separation Date (and for such other
dependents as may be entitled to coverage under the provisions of the
Health Insurance Portability and Accountability Act of 1996) for the
duration of Xx. Xxxxxxx'x extended medical coverage under this Section
2.2(c) to the extent such dependents remain eligible for dependent
coverage under the terms of the Group Health Plan.
(ii) The extended medical coverage afforded to Xx. Xxxxxxx
pursuant to this Section 2.2(c) as well as the premiums to be paid by
Xx. Xxxxxxx in connection with such coverage shall be determined in
accordance with the terms of the Group Health Plan and shall be
subject to any changes in the terms and conditions of the Group Health
Plan as well as any future increases in premiums under the Group
Health Plan. The premiums to be paid by Xx. Xxxxxxx in connection with
this extended coverage shall be due on the first day of each month;
provided, however, that if Xx. Xxxxxxx fails to pay his premium within
thirty (30) days of its due date, his extended coverage shall be
terminated.
(iii) Any Group Health Plan coverage provided under this Section
2.2(c) shall be a part of and not in addition to any COBRA Coverage
which Xx. Xxxxxxx or his dependent may elect. In the event that Xx.
Xxxxxxx or his dependent becomes eligible to be covered, by virtue of
re-employment or otherwise, by any employer-sponsored group health
24
plan or is eligible for coverage under any government-sponsored health
plan during the above period, coverage under the Company's Group
Health Plan available to Xx. Xxxxxxx or his dependent by virtue of the
provisions of this Article II shall terminate, except as may otherwise
be required by law, and shall not be renewed. It shall be the duty of
Xx. Xxxxxxx to inform the Company of his eligibility to participate in
any such health plan.
(iv) Except as otherwise provided in Section 2.3 hereof,
regardless of whether Xx. Xxxxxxx elects the extended coverage
described in Section 2.2(c) hereof, the Company shall pay to Xx.
Xxxxxxx a cash amount equal to the Company's and Xx. Xxxxxxx'x cost of
premiums for three (3) years of coverage under the Group Health Plan
and Group Life Insurance Plan, as such Plans were in effect as of the
date of the Change in Control.
(d) Stock Option Vesting. The provisions of this Section 2.2(d) shall
apply to any equity based awards under the Omnibus Plan, the defined terms
of which are incorporated in this Section 2.2(d) by reference.
(i) Any of Xx. Xxxxxxx'x Options and Stock Appreciation Rights
outstanding as of the Separation Date which are not then exercisable
and vested, shall become fully exercisable and vested; provided, that
in the case of a Stock Appreciation Right, if Xx. Xxxxxxx is subject
to Section 16(b) of the Exchange Act, such Stock Appreciation Right
shall not become fully vested and exercisable at such time if such
actions would result in liability to Xx. Xxxxxxx under Section 16(b)
of the Exchange Act, provided further that any such actions not taken
as a result of the rules under Section 16(b) of the Exchange Act shall
be effected as of the first date that such activity would no longer
25
result in liability under Section 16(b) of the Exchange Act.
(ii) The restrictions and deferral limitations applicable to any
of Xx. Xxxxxxx'x Restricted Stock and Restricted Stock Units as of the
Separation Date shall lapse, and such Restricted Stock and Restricted
Stock Units shall become free of all restrictions and limitations and
become fully vested and transferable.
(e) Performance Pay Program. The provisions of this Section 2.2(e)
shall apply to the Performance Pay Program under the Omnibus Plan, the
defined terms of which are incorporated in this Section 2.2(e) by
reference. Provided Xx. Xxxxxxx is not entitled to a Cash-Based Award under
the PPP, if the PPP is in place as of Xx. Xxxxxxx'x Separation Date and to
the extent Xx. Xxxxxxx is entitled to participate therein, Xx. Xxxxxxx
shall be entitled to receive cash in an amount equal to a prorated payout
of his Cash-Based Award under the PPP for the performance period in which
the Separation Date shall have occurred, at target performance under the
PPP and prorated by the number of months which have passed since the
beginning of the performance period until the Separation Date.
(f) Performance Dividend Program. The provisions of this Section
2.2(f) shall apply to the Performance Dividend Program, the defined terms
of which are incorporated in this Section 2.2(f) by reference. Provided Xx.
Xxxxxxx is not entitled to a Cash-Based Award under the PDP, if the PDP is
in place through Xx. Xxxxxxx'x Separation Date and to the extent Xx.
Xxxxxxx is entitled to participate therein, Xx. Xxxxxxx shall be entitled
26
to receive cash for each such Cash-Based Award under the PDP held as of
such date based on a payout percentage of the greater of 50% or actual
performance under the PDP for the performance period in which the
Separation Date shall have occurred, and the sum of the quarterly dividends
declared on the Common Stock in the performance year of and prior to the
Separation Date. For purposes of this Section 2.2(f), payout of each
Cash-Based Award under the PDP shall be based upon the performance
measurement period that would otherwise have ended on December 31st of the
year in which Xx. Xxxxxxx'x Separation Date occurs, all other remaining PPP
performance measurement periods shall terminate with respect to Xx. Xxxxxxx
and no payment to Xx. Xxxxxxx shall be made with respect thereto.
(g) Other Short Term Incentives Under the Omnibus Plan. The provisions
of this Section 2.2(g) shall apply to Performance Unit or Performance Share
awards under the Omnibus Plan. Provided Xx. Xxxxxxx is not otherwise
entitled to a Performance Unit/Share award under the Omnibus Plan, Xx.
Xxxxxxx shall be entitled to receive cash in an amount equal to a prorated
payout of the value of his Performance Units and/or Performance Shares for
the performance period in which the Separation Date shall have occurred, at
target performance and prorated by the number of months which have passed
since the beginning of the performance period until the Separation Date.
(h) Other Short-Term Incentive Plans. The provisions of this Section
2.2(h) shall apply to Xx. Xxxxxxx to the extent that he, as of the date of
the Change in Control, is a participant in any other "short term incentive
compensation plan" not otherwise previously referred to in this Section
2.2. Provided Xx. Xxxxxxx is not otherwise entitled to a plan payout under
27
any change in control provisions of such plans, if the "short term
incentive compensation plan" is in place through Xx. Xxxxxxx'x Separation
Date and to the extent Xx. Xxxxxxx is entitled to participate therein, Xx.
Xxxxxxx shall be entitled to receive cash in an amount equal to his award
under the Company's "short term incentive compensation plan" for the annual
performance period in which the Separation Date shall have occurred, at Xx.
Xxxxxxx'x target performance level and prorated by the number of months
which have passed since the beginning of the annual performance period
until the Separation Date. For purposes of this Section 2.2(h), the term
"short term incentive compensation plan" shall mean any incentive
compensation plan or arrangement adopted in writing by the Company which
provides for annual, recurring compensatory bonuses to participants based
upon articulated performance criteria, and which have been identified by
the Compensation Committee and listed on Exhibit B hereto, which may be
amended from time to time to reflect plan additions, terminations and
amendments.
(i) Pro rata Calculation. For purposes of calculating any pro rata
Cash-Based Awards under Section 2.2(e), (f), (g) and (h) hereof, a month
shall not be considered if the determining event occurs on or before the
14th day of the month, and a month shall be considered if the determining
event occurs on or after the 15th day of the month.
(j) No Duplicate Benefits. Notwithstanding anything in this Section
2.2 to the contrary, in the event that Xx. Xxxxxxx has received or is
entitled to receive a Cash-Based Award under the PPP or the PDP as
determined under the provisions of the Southern Company Change in Control
Benefits Protection Plan (the "BPP") for the Performance Period which
includes Xx. Xxxxxxx'x Separation Date, then the amount of any such
28
Cash-Based Award under this Plan shall be reduced dollar-for-dollar by any
such amount received or to be received under the BPP.
2.3 Coordination with Retiree Medical and Life Insurance Coverage.
Notwithstanding anything to the contrary above, if Xx. Xxxxxxx is otherwise
eligible to retire pursuant to the terms of the Pension Plan, he shall be deemed
to have retired for purposes of all employee benefit plans sponsored by the
Company of which Xx. Xxxxxxx is a participant. If Xx. Xxxxxxx is deemed to have
retired in accordance with the preceding sentence, he shall not be eligible to
receive the benefits described in Section 2.2(c) hereof if, upon his Separation
Date, Xx. Xxxxxxx becomes eligible to receive the retiree medical and life
insurance coverage provided to certain retirees pursuant to the terms of the
Pension Plan, the Group Health Plan and the Group Life Insurance Plan.
2.4 Payment of Benefits.
(a) Except as otherwise provided in Section 2.4(b) hereof, the total
amount payable under this Article II shall be paid to Xx. Xxxxxxx in one
(1) lump sum payment within two (2) payroll periods of the later of the
following to occur: (a) Xx. Xxxxxxx'x Separation Date, or (b) the tender to
the Company by Xx. Xxxxxxx of an effective Waiver and Release in the form
of Exhibit A attached hereto and the expiration of any applicable
revocation period for such waiver. In the event of a dispute with respect
to liability or amount of any benefit due hereunder, an effective Waiver
and Release shall be tendered at the time of final resolution of any such
dispute when payment is tendered by the Company.
(b) Notwithstanding anything to the contrary in Section 2.4(a) above,
if the Compensation Committee determines that it is necessary to delay any
payment under this Article II in order to avoid any tax liability pursuant
29
to Code Section 409A(a)(1), such payment shall be delayed for the period
set forth in Section 409A(a)(2)(B)(i) and such delayed payment shall bear a
reasonable rate of interest as determined by the Compensation Committee.
2.5 Benefits in the Event of Death. In the event of Xx. Xxxxxxx'x death
prior to the payment of all benefits due under this Article II, Xx. Xxxxxxx'x
estate shall be entitled to receive as due any amounts not yet paid under this
Article II upon the tender by the executor or administrator of the estate of an
effective Waiver and Release.
2.6 Legal Fees. In the event of a dispute between Xx. Xxxxxxx and the
Company with regard to any amounts due hereunder, if any material issue in such
dispute is finally resolved in Xx. Xxxxxxx'x favor, the Company shall reimburse
Xx. Xxxxxxx'x legal fees incurred with respect to all issues in such dispute in
an amount not to exceed fifty thousand dollars ($50,000).
2.7 No Mitigation. Xx. Xxxxxxx shall have no duty or obligation to seek
other employment following his Separation Date and, except as otherwise provided
in Subsection 2.1(b) hereof, the amounts due Xx. Xxxxxxx hereunder shall not be
reduced or suspended if he accepts such subsequent employment.
2.8 Non-qualified Retirement and Deferred Compensation Plans. Subsequent to
a Change in Control, any claims by Xx. Xxxxxxx for benefits under any of the
Company's non-qualified retirement or deferred compensation plans shall be
resolved through binding arbitration in accordance with the procedures and
provisions set forth in Article III hereof and if any material issue in such
dispute is finally resolved in Xx. Xxxxxxx'x favor, the Company shall reimburse
Xx. Xxxxxxx'x legal fees in the manner provided in Section 2.6 hereof.
ARTICLE III - ARBITRATION
30
3.1 General. Any dispute, controversy or claim arising out of or relating
to the Company's obligations to pay severance benefits under this Agreement, or
the breach thereof, shall be settled and resolved solely by arbitration in
accordance with the Commercial Arbitration Rules of the American Arbitration
Association ("AAA") except as otherwise provided herein. The arbitration shall
be the sole and exclusive forum for resolution of any such claim for severance
benefits and the arbitrators' award shall be final and binding. The provisions
of this Article III are not intended to apply to any other disputes, claims or
controversies arising out of or relating to Xx. Xxxxxxx'x employment by the
Company or the termination thereof.
3.2 Demand for Arbitration. Arbitration shall be initiated by serving a
written notice of demand for arbitration to Xx. Xxxxxxx, in the case of the
Company, or to the Compensation Committee, in the case of Xx. Xxxxxxx.
3.3 Law and Venue. The arbitrators shall apply the laws of the State of
Georgia, except to the extent pre-empted by federal law, excluding any law which
would require the use of the law of another state. The arbitration shall be held
in Atlanta, Georgia.
3.4 Appointment of Arbitrators. Arbitrators shall be appointed within
fifteen (15) business days following service of the demand for arbitration. The
number of arbitrators shall be three. One arbitrator shall be appointed by Xx.
Xxxxxxx, one arbitrator shall be appointed by the Company, and the two
arbitrators shall appoint a third. If the arbitrators cannot agree on a third
arbitrator within thirty (30) business days after the service of demand for
arbitration, the third arbitrator shall be selected by the AAA.
3.5 Costs. The arbitration filing fee shall be paid by Xx. Xxxxxxx. All
other costs of arbitration shall be borne equally by Xx. Xxxxxxx and the
Company, provided, however, that the Company shall reimburse such fees and costs
31
in the event any material issue in such dispute is finally resolved in Xx.
Xxxxxxx'x favor and Xx. Xxxxxxx is reimbursed legal fees under Section 2.6
hereof.
3.6 Interim and Injunctive Relief. Nothing in this Article III is intended
to preclude, upon application of either party, any court having jurisdiction
from issuing and enforcing in any lawful manner such temporary restraining
orders, preliminary injunctions, and other interim measures of relief as may be
necessary to prevent harm to either party's interests or as otherwise may be
appropriate pending the conclusion of arbitration proceedings pursuant to this
Article III and nothing herein is intended to prevent any court from entering
and enforcing in any lawful manner such judgments for permanent equitable relief
as may be necessary to prevent harm to a party's interests or as otherwise may
be appropriate following the issuance of arbitral awards pursuant to this
Article III.
ARTICLE IV - TRANSFER OF EMPLOYMENT
4.1 Transfer of Employment. In the event that Xx. Xxxxxxx'x employment by
the Company is terminated during the two year period following a Change in
Control and Xx. Xxxxxxx accepts employment by Southern or a another Southern
Subsidiary, the Company shall assign this Agreement to Southern or such Southern
Subsidiary, Southern shall accept such assignment or cause such Southern
Subsidiary to accept such assignment, and such assignee shall become the
"Company" for all purposes hereunder.
ARTICLE V - MISCELLANEOUS
5.1 Funding of Benefits. Unless the Board of Directors in its discretion
determines otherwise, the amounts payable to Xx. Xxxxxxx under the this
Agreement shall not be funded in any manner and shall be paid by the Company out
32
of its general assets, which assets are subject to the claims of the Company's
creditors.
5.2 Withholding. There shall be deducted from the payment of any amount due
under this Agreement the amount of any tax required by any governmental
authority to be withheld and paid over by the Company to such governmental
authority for the account of Xx. Xxxxxxx.
5.3 Assignment. Neither Xx. Xxxxxxx nor his beneficiaries shall have any
rights to sell, assign, transfer, encumber, or otherwise convey the right to
receive the payment of any amount due hereunder, which payment and the rights
thereto are expressly declared to be nonassignable and nontransferable. Any
attempt to do so shall be null and void and of no effect.
5.4 Interpretation. This Agreement is intended to comply with the
provisions of Code Section 409A and the Treasury Regulations promulgated
thereunder in order to avoid any additional tax under Section 409A(a)(1). In the
event it is necessary to interpret the provisions of this Agreement for purposes
of its operation, such interpretation shall, to the extent possible, be
consistent with such intent.
5.5 Amendment and Termination. The Agreement may be amended or terminated
only by a writing executed by the parties.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement this
1st day of May, 2007.
THE SOUTHERN COMPANY
By: /s/Xxxxx X. Xxxxxxxxx
33
SOUTHERN COMPANY SERVICES, INC.
By: /s/Xxxxxxxx X. Xxxxxxx
XX. XXXXXXX
/s/G. Xxxxxx Xxxxxxx
G. Xxxxxx Xxxxxxx
34
Exhibit A
CHANGE IN CONTROL AGREEMENT
Waiver and Release
The attached Waiver and Release is to be given to Xx. X. Xxxxxx Xxxxxxx
upon the occurrence of an event that triggers eligibility for severance benefits
under the Change in Control Agreement, as described in Section 2.2 of such
Agreement.
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CHANGE IN CONTROL AGREEMENT
Waiver and Release
I, G. Xxxxxx Xxxxxxx, understand that I am entitled to receive the
severance benefits described in Article II of the Change in Control Agreement
(the "Agreement") if I execute this Waiver and Release ("Waiver"). I understand
that the benefits I will receive under the Agreement are in excess of those I
would have received from The Southern Company and Southern Company Services,
Inc. (collectively, the "Company") if I had not elected to sign this Waiver.
I recognize that I may have a claim against the Company under the Civil
Rights Act of 1964 and 1991, the Age Discrimination in Employment Act, the
Rehabilitation Act of 1973, the Energy Reorganization Act of 1974, as amended,
the Americans with Disabilities Act or other federal, state and local laws.
In exchange for receiving the severance and welfare benefits under Article
II of the Agreement, I hereby voluntarily and irrevocably waive, release,
dismiss with prejudice, and withdraw all claims, complaints, suits or demands of
any kind whatsoever (whether known or unknown) which I ever had, may have, or
now have against The Southern Company, Southern Company Services, Inc., Alabama
Power Company, Georgia Power Company, Gulf Power Company, Mississippi Power
Company, Savannah Electric and Power Company, Southern Communications Services,
Inc. d/b/a Southern LINC, Southern Company Energy Solutions, L.L.C., Southern
Nuclear Operating Company, Inc., Southern Telecom, Inc., Southern Company
Management Development, Inc., and other current or former subsidiaries or
affiliates of The Southern Company and their past, present and future officers,
directors, employees, agents, insurers and attorneys (collectively, the
"Releasees"), arising from or relating to (directly or indirectly) my employment
or the termination of my employment or other events occurred as of the date of
execution of this Agreement, including but not limited to:
(a) claims for violations of Title VII of the Civil Rights Act of
1964, the Age Discrimination in Employment Act, the Fair Labor Standards
Act, the Civil Rights Act of 1991, the Americans With Disabilities Act, the
Equal Pay Act, the Family and Medical Leave Act, 42 U.S.C. ss. 1981, the
National Labor Relations Act, the Labor Management Relations Act, Executive
Order 11246, Executive Order 11141, the Rehabilitation Act of 1973, the
Xxxxxxxx-Xxxxx Act of 2002 or the Employee Retirement Income Security Act;
(b) claims for violations of any other federal or state statute or
regulation or local ordinance;
(c) claims for lost or unpaid wages, compensation, or benefits,
defamation, intentional or negligent infliction of emotional distress,
assault, battery, wrongful or constructive discharge, negligent hiring,
retention or supervision, fraud, misrepresentation, conversion, tortious
interference, breach of contract, or breach of fiduciary duty;
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(d) claims to benefits under any bonus, severance, workforce
reduction, early retirement, outplacement, or any other similar type plan
sponsored by the Company (except for those plans listed below); or
(e) any other claims under state law arising in tort or contract.
In signing this Agreement, I am not releasing any claims that may arise
under the terms of this Agreement or which may arise out of events occurring
after the date I execute this Agreement.
I am also not releasing claims to benefits that I am already entitled to
receive under The Southern Company Pension Plan, The Southern Company Employee
Stock Ownership Plan, The Southern Company Employee Savings Plan, The Southern
Company Omnibus Incentive Compensation Plan, The Southern Company Change in
Control Benefits Protection Plan or under any workers' compensation laws.
However, I understand and acknowledge that nothing herein is intended to or
shall be construed to require the Company to institute or continue in effect any
particular plan or benefit sponsored by the Company and the Company hereby
reserves the right to amend or terminate any of its benefit programs at any time
in accordance with the procedures set forth in such plans.
Nothing in this Agreement shall prohibit me from engaging in protected
activities under applicable law (including protected activities described in
Section 211 of the Energy Reorganization Act) or from communicating, either
voluntarily or otherwise, with any governmental agency concerning any potential
violation of the law.
I understand and agree for a period of two (2) years after the date I
execute this Agreement, I will regard and treat as strictly confidential all
valuable, non-public, competitively sensitive data and information relating to
the Releasees' business that is not generally known by or readily available to
Releasees' competitors and I will not for any reason, either directly or
indirectly, use, sell, lend, lease, distribute, license, transfer, assign, show,
disclose, disseminate, reproduce, copy, or otherwise communicate any such
information to any third party for my own benefit or for any purpose, other than
in accordance with the express, written instructions of the Company or
Releasees.
I further understand and agree that I will regard and treat as strictly
confidential all trade secrets of Releasees for as long as such items remain
trade secrets under applicable law and I will not for any reason, either
directly or indirectly, use, sell, lend, lease, distribute, license, transfer,
assign, show, disclose, disseminate, reproduce, copy, or otherwise communicate
any such trade secrets to any third party for my own benefit or for any purpose,
other than in accordance with the express, written instructions of the Company
or Releasees.
I further agree to keep confidential and not disclose the terms of this
Agreement, including, but not limited to, the benefits under the Agreement,
except to my spouse, attorneys or financial advisors (who must be informed of
and agree to be bound by the confidentiality provisions contained in this
Agreement before I disclose any information to them about this Agreement), or
where such disclosure is required by law.
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I agree to return to the Company prior to my last day of employment all
property of the Company, including but not limited to data, lists, information,
memoranda, documents, identification cards, credit cards, parking cards, keys,
computers, fax machines, beepers, phones, and files (including copies thereof).
I understand and agree that I will not seek re-employment as an employee,
leased employee or independent contractor with the Company or any Southern
Company subsidiary or affiliate during the twenty-four (24) month period
beginning immediately following my execution of this Agreement.
I have carefully read this agreement and I fully understand all of the
provisions of this Waiver.
I have been encouraged and advised in writing to seek advice from anyone of
my choosing regarding this Waiver (including my attorney, accountant or tax
advisor). Prior to signing this Waiver, I have been given the opportunity and
sufficient time to seek such advice.
I have had the opportunity to review and consider this Waiver for a period
of at least twenty-one (21) days before signing it.
I understand that I may revoke this Waiver at any time during the seven (7)
calendar day period after I sign this Waiver. In order to revoke this Waiver, I
must deliver written notification of such revocation to the Compensation
Committee. I understand that this Waiver is not effective until the expiration
of this seven (7) calendar day revocation period. I understand that upon the
expiration of such seven (7) calendar day revocation period this entire Waiver
will be binding upon me and will be irrevocable. Revocation of this Waiver will
not alter or change the termination of my employment by the Company.
In signing this Waiver, I am not relying on any representation or statement
(written or oral) not specifically set forth in this Waiver, the Agreement or by
the company or any of its representatives with regard to the subject matter,
basis, or effect of this Waiver or otherwise.
I was not coerced, threatened, or otherwise forced to sign this Waiver. I
am voluntarily signing and delivering this Waiver of my own free will.
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I understand that by signing this Waiver I am giving up rights I may have.
I understand I do not have to sign this Waiver.
IN WITNESS WHEREOF, the undersigned hereby executes this Waiver this ____
day of ________________, in the year _____.
---------------------------
G. Xxxxxx Xxxxxxx
Sworn to and subscribed to me this
___day of _________, ____
--------------------------
Notary Public
My Commission Expires:
---------------------------
(Notary Seal)
Acknowledged and Accepted by the Company.
By:
-----------------------------------
Date:
-----------------------------------
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