Document:

Exhibit 10.2

 

AMENDED AND RESTATED

CHANGE IN CONTROL SEVERANCE AGREEMENT

 

This amended and restated agreement (the “Agreement”)
is made as of the 14th day of December, 2005, by and between
CONSTELLATION ENERGY GROUP, INC. (the “Company”) and Mayo A. Shattuck III (the “Executive”).

 

WHEREAS, the Company and the Executive are parties to
a Change in Control Severance Agreement dated as of August 16, 2004 (the “Original
Agreement”);

 

WHEREAS, the Company and the Executive desire to amend
and restate the Original Agreement so that the Original Agreement will be
replaced in its entirety with this Agreement;

 

WHEREAS, the Company wishes to encourage the orderly
succession of management in the event of a Change in Control (as hereinafter
defined);

 

WHEREAS, the Company desires to maintain a severance
benefit for the Executive covering the period from the date of a Change in
Control until the end of the twenty—four month period following the date of a
Change in Control, to avoid the loss or the serious distraction of the
Executive to the detriment of the Company and its stockholders prior to and
during such period when the Executive’s undivided attention and commitment to
the needs of the Company would be particularly important;

 

WHEREAS, the Executive desires to devote the Executive’s
time and energy for the benefit of the Company and its stockholders and not to
be distracted as a result of a Change in Control.

 

NOW, THEREFORE, the parties agree as follows:

 

1.                                       Definitions.

 

1.1                                             Annual
Award Amount.  The term “Annual
Award Amount” means, as of the applicable date of determination, the average of
the two highest annual incentive awards under the Company’s annual incentive
plan (or the annual incentive plan maintained by a successor Company or a
Subsidiary) payable or actually paid under the terms of such annual incentive
plan for the performance year during which the date of determination occurs,
and in respect of the last four years to the Executive prior to the date of
determination; provided, however, that (a) if the Executive has not been
employed by the Company or a Subsidiary for a sufficient length of time to have
been eligible for payment of at least two annual incentive awards, deemed
target award payout shall be used for the one or two years for which the Executive
was not so eligible, except that the maximum payout shall be used for the
performance year in which the date of determination occurs; (b) for any
year during which an annual incentive award was paid or is payable to the
Executive that was prorated because of less than a year of plan participation,
such award shall be annualized, except that for the year in which the date of
determination occurs, the maximum payout shall be used; and (c) for any
year during which a guaranteed minimum annual incentive award amount was paid
or is payable to the Executive, such full (not prorated because

 

 

of less than a full year of plan participation) guaranteed annual
incentive amount shall be used for such year.

 

1.2                                             Board.  The term “Board” means the
Board of Directors of the Company.

 

1.3                                             Cause.  The term “Cause” means the
occurrence of any one or more of the following:

 

(a)                                  The Executive is
convicted of a felony involving moral turpitude or that involves the
misappropriation of property of the Company or a Subsidiary; or

 

(b)                                 The Executive
engages in conduct or activities that constitutes disloyalty to the Company or
a Subsidiary and such conduct or activities are materially damaging to the
property, business or reputation of the Company or a Subsidiary; or

 

(c)                                  The Executive
persistently fails or refuses to comply with any written direction of an
authorized representative of the Company other than a directive constituting an
assignment described in Section 1.7(a); or

 

(d)                                 The Executive
embezzles or knowingly, and with intent, unlawfully appropriates any corporate
opportunity of the Company or a Subsidiary.

 

A termination of the
Executive’s employment for Cause for purposes of this Agreement shall be
effected in accordance with the following procedures.  The Company shall give the Executive written
notice (“Notice of Termination for Cause”) of its intention to terminate the
Executive’s employment for Cause, setting forth in reasonable detail the
specific conduct of the Executive that it considers to constitute Cause and the
specific provision(s) of this Agreement on which it relies, and stating the
date, time and place of the Board Meeting for Cause.  The “Board Meeting for Cause” means a meeting
of the Board at which the Executive’s termination for Cause will be considered,
that takes place not less than ten (10) and not more than twenty (20)
business days after the Executive receives the Notice of Termination for
Cause.  The Executive shall be given an
opportunity, together with counsel, to be heard at the Board Meeting for
Cause.  The Executive’s Termination for
Cause shall be effective when and if a resolution is duly adopted at the Board
Meeting for Cause by a two—thirds vote of the entire membership of the Board,
excluding employee directors, stating that in the good faith opinion of the
Board, the Executive is guilty of the conduct described in the Notice of
Termination for Cause, and that conduct constitutes Cause under this Agreement.

 

Notwithstanding the
foregoing, no event described hereunder shall constitute Cause if such event is
a result of an isolated, insubstantial and inadvertent action that is not taken
in bad faith and that is remedied by the Executive within ten (10) days
after receipt of the Notice of Termination for Cause by the Executive from the
Company.

 

1.4                                             Change
in Control.  The term “Change
in Control” means the occurrence of any one of the following events:

 

(a)                                  individuals who,
on January 24, 2003, constitute the Board (the ‘‘Incumbent Directors”)
cease for any reason to constitute at least a majority of the Board,

 

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provided that any person
becoming a director subsequent to January 24, 2003, whose election or
nomination for election was approved by a vote of at least two—thirds of the
Incumbent Directors then on the 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 written objection to such nomination) shall be an
Incumbent Director; provided, however, that no individual
initially elected or nominated as a director of the Company as a result of an
actual or threatened election contest with respect to directors or as a result
of any other actual or threatened solicitation of proxies by or on behalf of
any person other than the Board shall be deemed to be an Incumbent Director;

 

(b)                                 any “person” (as
such term is defined in Section 3(a)(9) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”) and as used in
Sections 13(d)(3) and 14(d)(2) of the Exchange Act) is or becomes a “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 eligible to
vote for the election of the Board (the “Company
Voting Securities”); provided, however, that the event described in this paragraph (b) shall not be deemed
to be a Change in Control by virtue of any of the following acquisitions: (A) by
the Company or any Subsidiary, (B) by any employee benefit plan (or
related trust) sponsored or maintained by the Company or any Subsidiary, (C) by
any underwriter temporarily holding securities pursuant to an offering of such
securities, (D) pursuant to a Non—Qualifying Transaction (as defined in
paragraph (c)), or (E) pursuant to any acquisition by Executive or any
group of persons including Executive (or any entity controlled by Executive or
any group of persons including Executive);

 

(c)                                  there is consummated
a merger, consolidation, statutory share exchange or similar form of corporate
transaction involving the Company or any of its Subsidiaries (a “Business Combination”), unless immediately following
such Business Combination: (A) more than 60% of the total voting power of
(x) the corporation resulting from such Business Combination (the “Surviving Corporation”), or (y) if applicable, the
ultimate parent corporation that directly or indirectly has beneficial
ownership of at least 95% of the voting securities eligible to elect directors
of the Surviving Corporation (the “Parent
Corporation”), is represented by Company Voting Securities that were
outstanding immediately prior to such Business Combination (or, if applicable,
is represented by shares into which such Company Voting Securities were
converted pursuant to such Business Combination), and such voting power among
the holders thereof is in substantially the same proportion as the voting power
of such Company Voting Securities among the holders thereof immediately prior
to the Business Combination, (B) no person (other than any employee
benefit plan (or related trust) sponsored or maintained by the Surviving
Corporation or the Parent Corporation), is or becomes the beneficial owner,
directly or indirectly, of 20% or more of the total voting power of the
outstanding voting securities eligible to elect directors of the Parent
Corporation (or, if there is no Parent Corporation, the Surviving Corporation)
and

 

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(C) at least a majority
of the members of the board of directors of the Parent Corporation (or, if
there is no Parent Corporation, the Surviving Corporation) following the
consummation of the Business Combination were Incumbent Directors at the time of
the Board’s approval of the execution of the initial agreement providing for
such Business Combination (any Business Combination which satisfies all of the
criteria specified in (A), (B) and (C) above shall be deemed to be a “Non—Qualifying Transaction”); or

 

(d)                                 the stockholders
of the Company approve a plan of complete liquidation or dissolution of the
Company, or the consummation of a sale of all or substantially all of the
Company’s assets.

 

Notwithstanding the foregoing, a Change in Control of
the Company shall not be deemed to occur solely because any person acquires
beneficial ownership of more than 20% of the Company Voting Securities as a
result of the acquisition of Company Voting Securities by the Company which
reduces the number of Company Voting Securities outstanding; provided, that if
after such acquisition by the Company such person becomes the beneficial owner
of additional Company Voting Securities that increases the percentage of
outstanding Company Voting Securities beneficially owned by such person, a
Change in Control of the Company shall then occur.

 

1.5                                             Effective
Date.  The term “Effective Date” means
the first date during the term of this Agreement on which a Change in Control
occurs provided that the Executive is employed by the Company or a Subsidiary
on such date.  Anything in this Agreement
to the contrary notwithstanding, if the Executive’s employment with the Company
or a Subsidiary has terminated for any reason prior to the first date on which
a Change in Control occurs, this Agreement shall be null and void as of the
date of such termination of employment; provided, however, that if it is
reasonably demonstrated that such termination (i) was at the request of a
third party who has taken steps reasonably calculated to effect a Change in
Control, or (ii) otherwise arose in connection with or anticipation of a
Change in Control, then for all purposes of this Agreement the “Effective Date”
shall mean the date immediately prior to the date of such termination.

 

1.6                                             Eligible
to Retire.  The term “Eligible to Retire”
means an Executive who has met the eligibility requirements for retirement
under any Company or Subsidiary supplemental executive non—qualified defined
benefit retirement plan in which the Executive participated immediately prior
to the occurrence of a Qualifying Termination.

 

1.7                                             Good
Reason.  The term “Good
Reason” means, without the Executive’s express written consent, the occurrence
after the Effective Date of any one or more of the following:

 

(a)                                  The assignment
to the Executive of duties materially inconsistent with the Executive’s
authorities, duties, responsibilities, and status (including offices, title and
reporting relationships) as an executive and/or officer of the Company or a
Subsidiary immediately prior to the Effective Date, or a material reduction or
alteration in the nature or status of the Executive’s authorities, duties, or
responsibilities from those in effect immediately prior to the Effective Date,

 

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(including as a type of such
reduction or alteration for an Executive who is an officer of a publicly traded
company immediately prior to the Effective Date, the Executive occupying the
same position or title but with a company whose stock is not publicly traded),
unless such act is remedied by the Company or such Subsidiary within 10
business days after receipt of written notice thereof given by the Executive;
or

 

(b)                                 A reduction by
the Company or a Subsidiary of the Executive’s base salary in effect immediately
prior to the Effective Date or as the same shall be increased from time to
time, unless such reduction is less than ten percent (10%) and it is either (i) replaced
by an incentive opportunity equal in value; or is (ii) consistent and
proportional with an overall reduction in management compensation due to
extraordinary business conditions, including but not limited to reduced
profitability and other financial stress (i.e., the base salary of the
Executive will not be singled out for reduction in a manner inconsistent with a
reduction imposed on other executives of the Company or such Subsidiary); or

 

(c)                                  The relocation
of the Executive’s office more than 50 miles from the Executive’s office
immediately prior to the Effective Date; or

 

(d)                                 Failure of the
Company or a Subsidiary (whichever is the Executive’s employer) to provide (i) the
Executive the opportunity to participate in all applicable incentive, savings
and retirement plans, practices, policies and programs of the Company or such
Subsidiary to the same extent as other senior executives (or, where applicable,
retired senior executives) of the Company or such Subsidiary, and (ii) the
Executive and/or the Executive’s family, as the case may be, the opportunity to
participate in, and receive all benefits under, all applicable welfare benefit
plans, practices, policies and programs provided by the Company or such
Subsidiary, including, without limitation, medical, prescription, dental,
disability, sick benefits, accidental death and travel insurance plans and
programs, to the same extent as other senior executives (or, where applicable,
retired senior executives) of the Company or such Subsidiary; or

 

(e)                                  Failure of the
Company or a Subsidiary (whichever is the Executive’s employer) to provide the
Executive such perquisites as the Company or such Subsidiary may establish from
time to time which are commensurate with the Executive’s position and at least
comparable to those received by other senior executives at the Company or such
Subsidiary; or

 

(f)                                    The aggregate
benefits provided to the Executive by the Company following a Change in Control
are materially less than the aggregate benefits made available to the Executive
immediately prior to such Change in Control; or

 

(g)                                 The failure by
the Company to comply with paragraph (c) of Section 14 of this
Agreement; or

 

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(h)                                 Any other substantial breach of this Agreement by
the Company that either is not taken in good faith or is not remedied by the
Company promptly after receipt of notice thereof from the Executive.

 

The Executive’s right to terminate employment for Good
Reason shall not be affected by the Executive’s incapacity due to physical or
mental illness.  The Executive’s
continued employment shall not constitute consent to, or a waiver of rights
with respect to, any circumstance constituting Good Reason herein; provided,
however, a termination of employment by the Executive for Good Reason for
purposes of this Agreement shall be effectuated by giving the Company written
notice (“Notice of Termination for Good Reason”) of the termination, at any
time during the Protection Period, setting forth in reasonable detail the
specific conduct of the Company that constitutes Good Reason and the specific
provision(s) of this Agreement on which the Executive relied.  Unless the parties agree otherwise, a
termination of employment by the Executive for Good Reason shall be effective
on the thirtieth (30th)  day following the date when the
Notice of Termination for Good Reason is given, unless the notice sets forth a
later date (which date shall in no event be later than sixty (60) days after
the notice is given); provided, however, that no event described hereunder
shall constitute Good Reason if such event is a result of an isolated,
insubstantial and inadvertent action that is not taken in bad faith and that is
remedied by the Company within ten (10) days after receipt of the Notice
of Termination for Good Reason by the Company from the Executive.  If the Company disputes the existence of Good
Reason, the burden of proof is on the Company to establish that Good Reason
does not exist.  If the Executive
continues to provide services to the Company after one of the events giving
rise to Good Reason has occurred, it will be in no way considered a waiver of
the Executive’s right to terminate his employment at any time during the
Protection Period for Good Reason in connection with such event.

 

1.8                                             Ineligible
to Retire.  The term “Ineligible to
Retire” means an Executive who has not met the eligibility requirements for
retirement under any Company or Subsidiary supplemental executive non—qualified defined benefit retirement plan in which the
Executive participated immediately prior to the occurrence of a Qualifying
Termination.

 

1.9                                             Qualifying
Termination.  The term “Qualifying
Termination” means

 

(a)                                  The occurrence
of any one or more of the following employment termination events during the
period beginning with the Effective Date and ending on the second anniversary
of such date, shall constitute a “Qualifying Termination”:

 

(i)                                     The Company’s
termination of the Executive’s employment without Cause (as defined in Section 1.3);
or

 

(ii)                                  The Executive’s
resignation for Good Reason (as defined in Section 1.7).

 

(b)                                 A Qualifying
Termination shall not include a termination of employment by reason of death,
disability, the Executive’s voluntary termination of employment without Good
Reason, or the Company’s termination of the Executive’s employment for Cause.

 

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1.10                                       Protection
Period.  The Term “Protection Period”
means the two (2) year period commencing on the Change in Control and
ending on the second anniversary of the Change in Control.

 

1.11                                       Subsidiary.  The term “Subsidiary” means any corporation
with respect to which the Company owns a majority of the outstanding shares of
common stock or has the power to vote or direct the voting of sufficient
securities to elect a majority of the directors.

 

2.                                       Severance Benefits for an Executive Ineligible to Retire.  Upon the occurrence of a Qualifying
Termination with respect to an Executive who is Ineligible to Retire:

 

(a)                                  Severance
Payment.  The Company
shall pay to the Executive an amount equal to three times the sum of (i) the
greater of (A) the Executive’s annual base salary as of immediately prior
to the occurrence of the Change of Control or (B) the Executive’s annual
base salary (as in effect on the date of the Qualifying Termination, not
reduced by any reduction described in Section 1.7(b) above) and (ii) the
greater of (A) the Annual Award Amount, determined with the date of the
Change of Control as the date of determination, or (B) the Annual Award
Amount, determined with the date of the Qualifying Termination as the date of
determination.  The payment shall be made
in a lump sum after the Qualifying Termination, and within approximately 10
business days after the Company
receives the executed agreement referred to in 2(e) below but in no case
prior to the expiration of any period during which the Executive is permitted
to revoke such agreement.

 

(b)                                 Supplemental
Retirement Benefits.  For purposes of determining
the Executive’s supplemental retirement
benefits which the Executive is entitled to under the Company’s supplemental
non-qualified retirement plan in which the Executive participated immediately
prior to the Qualifying Termination (or the supplemental retirement plan
maintained by a successor company or a Subsidiary), (i) the Executive’s
service percentage shall be computed by adding three years of executive-level
service to the Executive’s actual service; (ii) any minimum age and
service eligibility requirements for such benefits shall be waived and such
benefits shall be fully vested; (iii) Annual Award Amount shall be used to
compute such benefits in lieu of any other annual incentive award amount under
such plan and (iv) for purposes of computing the present value of the
benefit to be paid to the Executive at age 62, three years will be added to the
Executive’s age.  Notwithstanding the
foregoing, on a Qualifying Termination, the Executive will be entitled to
receive under the supplemental non-qualified retirement plan in which the
Executive participated immediately prior to the Qualifying Termination, an
amount equal to the greater of (i) the amount that would have been payable
under this Section 2(b) had the Qualifying Termination occurred on
the Change in Control or (ii) the amount payable under this Section 2(b) determined
as of the date of the Qualifying Termination.

 

(c)                                  Severance
Health Benefits.  Commencing upon a Qualifying Termination and
continuing through the third anniversary of such Qualifying Termination, the

 

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Executive
and/or the Executive’s family, as the case may be, shall receive all medical
and dental benefits and any life insurance coverage provided to active
employees of the Company, and such benefits shall be provided on an insured
basis. In addition, if the Executive has attained age fifty (50) as of his
Qualifying Termination (or would have attained age fifty (50) had he remained
employed through the period ending on the third anniversary of his Qualifying
Termination), the Company shall make available to the Executive insured medical
and dental benefits at prevailing retiree coverage rates (based on the
executive’s age and deemed service on the third anniversary of his Qualifying
Termination), beginning upon the third anniversary of the Executive’s
Qualifying Termination and lasting for the Executive’s life. The Executive must
elect retiree medical and dental coverage within five (5) years after the
third anniversary of his Qualifying Termination, in order to be entitled to the
benefit described in the second sentence of this paragraph, and will commence
receiving such coverage effective as soon as practicable after the date of such
election in accordance with the terms of the applicable retiree medical and
dental programs.

 

(d)                                 Outplacement.  For a 60-day period
commencing on the date of the Qualifying Termination, the Executive is entitled
to receive outplacement services from one or more organizations that are
offered by the Company from time to time, with such services capped at a
Company cost of $50,000.

 

(e)                                  Release.  The benefits described in this Section 2
are payable by the Company to the Executive only if after the date of the
Qualifying Termination, the Executive executes (and does not subsequently
revoke) in writing and submits to the Company a mutual release and waiver of
legal claims, including those against the Company and its Subsidiaries, in the
form attached hereto. Following receipt of the Executive’s signed mutual
release pursuant to this Agreement, the Company shall have ten (10) days
from the date such release becomes irrevocable to execute the release and
deliver a copy to the Executive.  If the
Company fails to execute such release within the time frame established by the
preceding sentence, the release shall be deemed to have been signed by the
Company and shall be fully enforceable by each party against the other.

 

(f)                                    Benefits
Paid to Estate of Executive on Death. If the Executive dies after
providing the Company with Notice of Termination for Good Reason during the
Protection Period and a Good Reason event has occurred, any payments and benefits
due to him at the time of his death under this Agreement, shall be paid to his
estate in accordance with the same terms as described in the provisions of this
Agreement. Such benefits shall expressly include continuation of any severance
health benefits for which the Executive was eligible under Section 2(c) for
the Executive’s family.

 

3.                                       Severance Benefits for an Executive Eligible to Retire.  Upon the occurrence of a Qualifying
Termination with respect to an Executive who
is Eligible to Retire:

 

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(a)                                  Severance
Payment.  The Company shall pay to the
Executive an amount equal to the amount determined under Section 2(a) of
this Agreement.  The payment shall be
made in a lump sum after the Qualifying Termination, and within approximately
10 business days after the Company receives the executed agreement referred to
in Section 3(e) below, but in no case prior to the expiration of any
period during which the Executive is permitted to revoke such agreement.

 

(b)                                 Supplemental
Retirement Benefits.  For purposes of determining
the Executive’s supplemental retirement benefits which the Executive is
entitled to under the Company’s supplemental non-qualified retirement plan in
which the Executive participated immediately prior to the Qualifying
Termination (or the supplemental retirement plan maintained by a successor
company or a Subsidiary), (i) the Executive’s service percentage shall be
computed by adding three years of executive-level service to the Executive’s actual
service; (ii) Annual Award Amount shall be used to compute such benefits
in lieu of any other annual incentive award amount under such plan; and (iii) for
purposes of computing the present value of the benefit to be paid to the
Executive at age 62, three years will be added to the Executive’s age.   Notwithstanding the foregoing, on a
Qualifying Termination, the Executive will be entitled to receive under the
supplemental non-qualified retirement plan in which the Executive participated
immediately prior to the Qualifying Termination, an amount equal to the greater
of (i) the amount that would have been payable under this Section 3(b) had
the Qualifying Termination occurred on the Change in Control or (ii) the
amount payable under this Section 3(b) determined as of the date of
the Qualifying Termination.

 

(c)                                  Severance
Health Benefits.  Commencing upon a Qualifying Termination and
continuing through the third anniversary of such Qualifying Termination, the
Executive and/or the Executive’s family, as the case may be, shall receive all
medical and dental benefits and any life insurance coverage provided to active
employees of the Company, and such benefits shall be provided on an insured
basis.  In addition, if the Executive has
attained age fifty (50) as of his Qualifying Termination (or would have
attained age fifty (50) had he remained employed through the period ending on
the third anniversary of his Qualifying Termination), the Company shall make
available to the Executive insured medical and dental benefits at prevailing
retiree coverage rates (based on the executive’s age and deemed service on the
third anniversary of his Qualifying Termination), beginning upon the third
anniversary of the Executive’s Qualifying Termination and lasting for the
Executive’s life. The Executive must elect retiree medical and dental coverage
within five (5) years after the third anniversary of his Qualifying
Termination, in order to be entitled to the benefit described in the second
sentence of this paragraph, and will commence receiving such coverage effective
as soon as practicable after the date of such election in accordance with the
terms of the applicable retiree medical and dental programs.

 

(d)                                 Outplacement.  For a 60-day period commencing on the date of the Qualifying Termination, the Executive is entitled to receive outplacement
services from one

 

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or more organizations that are offered by the Company from time to time, with such services capped at
a Company cost of $50,000.

 

(e)                                  Release.  The benefits described in this Section 3
are payable by the Company to the Executive only if after the date of the
Qualifying Termination, the Executive executes (and does not subsequently
revoke) in writing and submits to the Company a mutual release and waiver of
legal claims, including those against the Company and its Subsidiaries, in the
form attached hereto. Following receipt of the Executive’s signed mutual
release pursuant to this Agreement, the Company shall have ten (10) days
from the date such release becomes irrevocable to execute the release and
deliver a copy to the Executive.  If the
Company fails to execute such release within the time frame established by the
preceding sentence, the release shall be deemed to have been signed by the
Company and shall be fully enforceable by each party against the other.

 

(f)                                    Benefits
Paid to Estate of Executive on Death. If the Executive dies after
providing the Company with Notice of Termination for Good Reason during the
Protection Period and a Good Reason event has occurred, any payments and
benefits due to him at the time of his death under this Agreement, shall be
paid to his estate in accordance with the same terms as described in the
provisions of this Agreement. Such benefits shall expressly include
continuation of any severance health benefits for which the Executive was
eligible under Section 3(c) for the Executive’s family.

 

4.                                       Grant of Replacement Options upon a Change in Control. Some or all of
the outstanding options to purchase common stock of the Company outstanding
under the Company’s equity compensation plans (the “Equity Plans”) as of the
occurrence of a Change in Control will be cashed-out in accordance with the
terms of the applicable plans in connection with any Change in Control (the “Cashed-Out
Options”).  As soon as practicable
following the occurrence of a Change in Control, the Company shall, subject to
shareholder approval, cause the applicable committee or committees
administering the Equity Plans to grant the Executive additional stock options
(the “Replacement Options”) to purchase common stock of the Company (or, if the
Company is not the surviving entity in connection with a Change in Control,
common stock of the surviving entity). 
The Replacement Options will (i) be granted on substantially the
same terms and conditions as the Cashed-Out Options (including provisions
related to the term), (ii) have an exercise price equal to the greater of (A) the
fair market value of the underlying common stock at the time of grant and (B) the
exercise price of the Cashed-Out Options to which they relate, as adjusted to
take into account the transaction or transactions that resulted in the Change
in Control, (iii) relate to the same number of shares as the Cashed-Out
Options (as adjusted to take into account the transaction or transactions that
resulted in the Change in Control), (iv) vest in accordance with the terms
of the schedule of the Cashed-Out Options to which they relate (excluding
any vesting that occurs as a result of such Change in Control and, for purposes
of determining the vesting schedule, the Replacement Options will be deemed to
have been granted at the time of grant of the Cashed-Out Options to which they
relate), and (v) will remain exercisable for the same period as the
Cashed-Out Options would have been exercisable had they not been terminated.
The Replacement Options shall vest in full as of a Qualifying Termination.  Notwithstanding anything to
the contrary set forth herein, the

 

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Replacement Options will not vest in connection with a subsequent
transaction (the “Subsequent Transaction”) following the Change in Control in
which such Replacement Options were granted (the “Initial Change in Control”)
that would constitute a Change in Control if such Subsequent Transaction merely
increases the percentage ownership of common stock of the Company held by the
person or entity whose initial acquisition of common stock of the Company
triggered the Initial Change in Control.

 

5.                                       Non-Exclusivity of Rights.  Nothing in this Agreement shall prevent or
limit the Executive’s continuing or future participation in any plan, program,
policy or practice provided by the Company or a successor company or a
Subsidiary (whichever is the Executive’s employer) for which the Executive may
qualify, nor shall anything in this Agreement limit or otherwise affect such
rights as the Executive may have under any contract or agreement with the
Company or a successor Company or such Subsidiary.  However, if the Executive receives severance
benefits under this Agreement, the Executive is not also entitled to any
benefit under any other severance plan, program, arrangement or agreement
maintained by the Company or a Subsidiary. 
Vested benefits and other amounts that the Executive is otherwise
entitled to receive under any incentive compensation (including, but not
limited to any restricted stock or stock option agreements), deferred
compensation and other benefit programs listed in Section 1.7(d), life
insurance coverage, or any other plan, policy, practice or program of, or any
contract or agreement with, the Company or a successor Company or such
Subsidiary on or after the date of the Qualifying Termination shall be payable
in accordance with the terms of each such plan, policy, practice, program,
contract or agreement, as the case may be, except as explicitly modified by
this Agreement.

 

6.                                       Full Settlement.  The Company’s obligation to
make the payments provided for in, and otherwise to perform its obligations
under, this Agreement shall not be affected by any set-off, counterclaim,
recoupment, defense or other claim, right or action that the Company may have
against the Executive or others.  In no
event shall the Executive be obligated to seek other employment or take any
other action by way of mitigation of the amounts payable to the Executive under
any of the provisions of this Agreement and, such amounts shall not be reduced,
regardless of whether the Executive obtains other employment.

 

7.                                       Certain Additional Payments by the Company.

 

(a)                                  Anything in this
Agreement to the contrary notwithstanding, in the event it shall be determined that any payment or distribution (including an
acceleration of vesting, or a lapse of restrictions on amounts otherwise
subject to vesting) by the Company to or for the benefit of the Executive (a “Payment”)
would be subject to the excise tax imposed by Section 4999 of the Internal
Revenue Code of 1986, as amended (the “Code”) or any interest or penalties are
incurred by the Executive with respect to such excise tax (such excise tax,
together with any such interest and penalties, are hereinafter collectively
referred to as the “Excise Tax”), then the Executive shall be entitled to
receive an additional payment (a “Gross—Up Payment”) in an amount such that
after payment by the Executive of all taxes (including any interest or
penalties imposed with respect to such taxes), including, without limitation,
any income taxes (and any interest and penalties imposed with respect thereon)
and Excise Tax imposed upon the Gross—Up Payment, the

 

11

 

Executive retains an amount
of the Gross—Up Payment equal to the Excise Tax imposed upon the Payment.

 

(b)                                 Subject to the
provisions of paragraph (c) of this Section 7, all determinations
required to be made under this Section 7, including whether and when a
Gross—Up Payment is required and the amount of
such Gross—Up Payment and the assumptions to be utilized in arriving at such
determination, shall be made by one of the
major internationally recognized certified public accounting firms (commonly
referred to, as of the date hereof, as a Big Four firm) designated by the
Executive and approved by the Company (which approval shall not be unreasonably
withheld) (the “Accounting Firm”), which shall provide detailed supporting
calculations both to the Company and the Executive within fifteen (15) business
days of the receipt of notice from the Executive that there has been a Payment,
or such earlier time as is requested by the Company.  In the event that the Accounting Firm is
serving as accountant or auditor for the individual, entity or group affecting
the change of control, the Executive shall designate another Big Four
accounting firm (subject to the approval of the Company, which approval shall
not be unreasonably withheld) to make the determinations required hereunder
(which accounting firm shall then be referred to as the Accounting Firm
hereunder).  All fees and expenses of the
Accounting Firm shall be borne solely by the Company.  Any Gross—Up Payment, as determined pursuant
to this Section 7, shall be paid by the Company to the Executive within
five (5) days of the receipt of the Accounting Firm’s determination.  Any determination by the Accounting Firm
shall be binding upon the Company and the Executive.  As a result of the uncertainty in the
application of Section 4999 of the Code at the time of the initial
determination by the Accounting Firm hereunder, it is possible that Gross—Up Payments
which will not have been made by the Company should have been made (“Underpayment”)
consistent with the calculations required to be made hereunder.  In the event that the Company exhausts its
remedies pursuant to paragraph (c) of this Section 7 and the
Executive thereafter is required to make a payment of any Excise Tax, the
Accounting Firm shall determine the amount of the Underpayment that has
occurred and any such Underpayment shall be promptly paid by the Company to or
for the benefit of the Executive.

 

(c)                                  The Executive
shall notify the Company in writing of any claim by the Internal Revenue
Service that, if successful, would require the payment by the Company of the
Gross—Up Payment.  Such notification
shall be given as soon as practicable but no later than ten (10) business
days after the Executive is informed in writing of such claim and shall
apprise the Company of the nature of such claim and the date on which such
claim is requested to be paid.  The
Executive shall not pay such claim prior to the expiration of the thirty (30)
day period following the date on which the Executive gives such notice to the
Company (or such shorter period ending on the date that any payment of taxes
with respect to such claim is due).  If
the Company notifies the Executive in writing prior to the expiration of such
period that it desires to contest such claim, the Executive shall:

 

12

 

(i)                                     give the Company
any information reasonably requested by the Company relating to such claim,

 

(ii)                                  take such action
in connection with contesting such claim as the Company shall reasonably
request in writing from time to time, including, without limitation, accepting
legal representation with respect to such claim by an attorney reasonably
selected by the Company,

 

(iii)                               cooperate with
the Company in good faith in order effectively to contest such claim, and

 

(iv)                              permit the
Company to participate in any proceedings relating to such claim;

 

PROVIDED, however, that the Company shall bear and
pay directly all costs and expenses (including additional interest and
penalties) incurred in connection with such contest and shall indemnify and
hold the Executive harmless, on an after—tax basis, for any Excise Tax or
income tax (including interest and penalties with respect thereto) imposed as a
result of such representation and payment of costs and expenses.  Without limitation on the foregoing
provisions of this paragraph (c) of Section 7, the Company shall
control all proceedings taken in connection with such contest and, at its sole
option, may pursue or forego any and all administrative appeals, proceedings,
hearings and conferences with the taxing authority in respect of such claim and
may, at its sole option, either direct the Executive to pay the tax claimed and
sue for a refund or contest the claim in any permissible manner, and the
Executive agrees to prosecute such contest to a determination before any
administrative tribunal, in a court of initial jurisdiction and in one or more
appellate courts, as the Company shall determine; PROVIDED, however, that if
the Company directs the Executive to pay such claim and sue for a refund, the
Company shall advance the amount of such payment to the Executive, on an
interest—free basis and shall indemnify and hold the Executive harmless, on an
after—tax basis, from any Excise Tax or income tax (including interest or
penalties with respect thereto) imposed with respect to such advance or with
respect to any imputed income with respect to such advance; and PROVIDED,
further, that any extension of the statute of limitations relating to payment
of taxes for the taxable year of the Executive with respect to which such
contested amount is claimed to be due is limited solely to such contested
amount.  Furthermore, the Company’s
control of the contest shall be limited to issues with respect to which a
Gross—Up Payment would be payable hereunder and the Executive shall be entitled
to settle or contest, as the case may be, any other issue raised by the
Internal Revenue Service or any other taxing authority.

 

(d)                                 If, after the
receipt by the Executive of an amount advanced by the Company pursuant to
paragraph (c) of this Section 7, the Executive becomes entitled to
receive any refund with respect to such claim, the Executive shall promptly
take all necessary action to obtain such refund and (subject to the Company’s
complying with the requirements of paragraph (c) of this Section 7)
upon receipt of such refund shall promptly pay to the Company the amount of
such refund (together with any interest paid or credited thereon after taxes
applicable thereto).

 

13

 

If after the receipt by the
Executive of an amount advanced by the Company pursuant to paragraph (c) of
this Section 7, a determination is made that the Executive shall not be entitled to any refund with respect to
such claim and the Company does not notify the Executive in writing of its
intent to contest such denial of refund prior to the expiration of thirty (30) days
after such determination, then such advance shall be forgiven and shall not be
required to be repaid and the amount of such advance shall offset, to the
extent thereof, the amount of Gross-Up Payment required to be paid.

 

8.                                       Certain Additional Agreements under Section 409A.

 

(a)                                  In the event the
payment of any amounts under this Agreement would be treated as non-qualified
deferred compensation under Section 409A of the Code, such payment will be
delayed for six (6) months after the date of the Executive’s Qualifying
Termination if required in order to avoid additional tax under Section 409A
of the Code. If the Executive dies within six (6) months following a
Qualifying Termination, any such delayed payments shall not be further delayed,
and shall be immediately payable to the Executive’s estate in accordance with
the applicable provisions of this Agreement.

 

(b)                                 The Company will
not take any action that would expose any payment or benefit to the Executive
under this Agreement or under any plan, arrangement or other agreement to the
additional tax imposed under Section 409A of the Code, unless (i) the
Company is obligated to take the action under an agreement, plan or arrangement
to which the Executive is a party, (ii) the Executive requests the action,
(iii) the Company advises the Executive in writing that the action may
result in the imposition of the additional tax and (iv) the Executive
subsequently requests the action in a writing that acknowledges that he will be
responsible for any effect of the action under Section 409A of the
Code.  The Company will hold the
Executive harmless for any action it may take in violation of this paragraph.

 

(c)                                  It is the
parties’ intention that the benefits and rights to which the Executive could
become entitled in connection with the termination of employment covered under
this Agreement comply with Section 409A of the Code.  If the Executive or the Company believes, at
any time, that any of such benefit or right does not so comply, he or it will
promptly advise the other party and will negotiate reasonably and in good faith
to amend the terms of such arrangement such that it complies (with the most
limited possible economic effect on the Executive and on the Company).

 

9.                                       Termination of Agreement.  This Agreement shall remain
in effect from the date hereof until the last day of the twenty-fourth calendar
month following the date of a Change in Control.  Further, upon a Qualifying Termination, this
Agreement shall continue until the Company or its successor shall have fully
performed all of its obligations thereunder with respect to the Executive, with
no future performance being possible. 
This Agreement may be terminated at any time by the Board with the
written consent of the Executive. 
Notwithstanding the foregoing,

 

14

 

this Agreement shall automatically terminate upon cessation of Executive’s
employment with the Company and its Subsidiaries prior to the Effective Date.

 

10.                                 Amendment of Agreement.  This Agreement may be amended
at any time by the Board with the written consent of the Executive.

 

11.                                 Construction.  Wherever any words are used
herein in the masculine gender they shall be construed as though they were also
used in the feminine gender in all cases where they would so apply, and
wherever any words are used herein in the singular form, they shall be
construed as though they were also used in the plural form in all cases where
they would so apply.

 

12.                                 Governing Law.  This Agreement shall be
governed by the laws of Maryland.

 

13.                                 Dispute Resolution.  The parties agree that any disputes, claims,
complaints or causes of action of any type or kind (including but not limited
to any disputes relating in any way to this Agreement) which the parties may
have between themselves shall be resolved by final and binding arbitration
using a single arbitrator from the American Arbitration Association pursuant to
its then existing commercial arbitration rules. The arbitration proceedings
shall be conducted in Baltimore, Maryland, unless the parties mutually agree in
writing to a different location. Prior to presiding over any such dispute, any
arbitrator shall be required to consent in writing that he or she shall reach a
final decision within four (4) months after a claim has been filed and
within sixty (60) days after final submission. Any award rendered in the
arbitration may be enforced in any court of competent jurisdiction. Pending the
resolution of any such claim or dispute, the Executive (and his beneficiaries)
shall continue to receive all payments and benefits due under this Agreement or
otherwise, except to the extent that the arbitrators otherwise provide.

 

14.                                 Successors and Assigns.

 

(a)          This Agreement
shall inure to the benefit of and be enforceable by the Executive’s legal representatives.

 

(b)         This Agreement shall inure to the benefit of and be binding upon
the Company and its successors and assigns.

 

(c)          The Company
shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business
and/or assets of the Company expressly to assume and agree to perform this
Agreement in the same manner and to the same extent that the Company would have
been required to perform it if no such succession had taken place.  As used in this Agreement, “Company” shall
mean both the Company as defined above and any such successor that assumes and
agrees to perform this Agreement, by
operation of law or otherwise.

 

15.                                 Director & Officer Insurance and Indemnification.  During the
Protection Period and, upon a Qualifying Termination, for so long thereafter as
the Executive could be subject to liability, the Company shall keep in place a
directors’ and officers’ liability insurance policy (or policies) providing comprehensive
coverage to the Executive for claims relating to the Executive’s service as an
employee, officer, or director of the Company, on terms and conditions

 

15

 

no less favorable to the Executive (e.g., with respect to scope, amounts
and deductibles) provided to then-existing officers and directors of the
Company.  The Company shall indemnify the
Executive to the fullest extent permitted by the general laws of the State of
Maryland and shall provide indemnification expenses in advance to the extent
permitted thereby.  The Company will
follow the procedures required by applicable law in determining persons
eligible for indemnification and in making indemnification payments and
advances.   The indemnification and
advance of expenses provided by the Company pursuant to this Agreement shall
not be deemed exclusive of any other rights to which the Executive may be
entitled under any law (common or statutory), or any agreement, vote of
stockholders or disinterested directors or other provision that is consistent
with law, both as to action in his official capacity and as to action in
another capacity while holding office or while employed or acting as agent for
the Company, shall continue in respect of all events occurring while the
Executive was a director of or employed by the Company after the Executive has
ceased to be a director of or employed by the Company, and shall inure to the
benefit of the estate, heirs, executors and administrators of the Executive.

 

16.                                 Reimbursement of Legal Fees.  The Company will pay all reasonable fees and
expenses, if any (including without limitation, legal fees and expenses) that
are incurred by the Executive to enforce this Agreement and that result from a
breach of this Agreement by the Company.

 

17.                                 Notice.  Any notices, requests,
demands, or other communications provided for by this Agreement shall be
sufficient if in writing and if sent by registered or certified mail to the
Executive at the last address the Executive has filed in writing with the
Company, or in the case of the Company, to its principal offices.

 

18.                                 Severability.  The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or
enforceability of any other provision of this Agreement.  If any provision of this Agreement shall be
held invalid or unenforceable in part, the remaining portion of such provision,
together with all other provisions of this Agreement, shall remain valid and enforceable
and continue in full force and effect to the fullest extent consistent with
law.

 

19.                                 Withholding.  Notwithstanding any other
provision of this Agreement, the Company may withhold from amounts payable under this Agreement
all federal, state, local and foreign taxes that are required to be withheld by
applicable laws or regulations.

 

20.                                 Entire Agreement.  Unless otherwise specifically
provided in this Agreement, the Executive and the Company acknowledge that this
Agreement supersedes any other agreement between them or between the Executive
and the Company or a Subsidiary, concerning the subject matter hereof.

 

21.                                 Alienability.  The rights and benefits of
the Executive under this Agreement may not be anticipated, alienated or subject
to attachment, garnishment, levy, execution or other legal or equitable process
except as required by law.  Any attempt
by the Executive to anticipate, alienate, assign, sell, transfer, pledge,
encumber or charge the same shall be void. 
Payments hereunder shall not be considered assets of the Executive in
the event of insolvency or bankruptcy.

 

16

 

22.                                 Counterparts.  This Agreement may be
executed in several counterparts, each of which shall be deemed an original,
and said counterparts shall constitute but one and the same instrument.

 

17

 

IN WITNESS WHEREOF, the Executive has hereunto set the
Executive’s hand and, pursuant to the authorization of the Board, the Company
has caused this Agreement to be executed in its name on its behalf, all as of
the day and year first above written.

 

	
   

  	
  CONSTELLATION ENERGY
  GROUP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ E. Follin Smith

  
	
   

  	
   

  	
  E. Follin Smith

  
	
   

  	
   

  	
  Executive Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/Mayo A. Shattuck III

  
	
   

  	
  Mayo A. Shattuck III

  

 

18Exhibit 10.01

 

XCEL ENERGY INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

 

(As Adopted Effective January 1, 1998, and
Amended and Restated effective January 1,

2005)

 

 

XCEL ENERGY INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

 

Table of Contents

 

	
  ARTICLE I

  	
  GENERAL

  	
   

  
	
   

  	
   

  	
   

  
	
  Sec. 1.1

  	
  Name of Plan

  	
  1

  
	
  Sec. 1.2

  	
  Purpose

  	
  1

  
	
  Sec. 1.3

  	
  Effective Date

  	
  1

  
	
  Sec. 1.4

  	
  Company

  	
  1

  
	
  Sec. 1.5

  	
  Participating Employers

  	
  1

  
	
  Sec. 1.6

  	
  Construction and Applicable Law

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  Sec. 2.1

  	
  Accrual Percentage

  	
  2

  
	
  Sec. 2.2

  	
  Actuarial Equivalent

  	
  2

  
	
  Sec. 2.3

  	
  Beneficiary

  	
  2

  
	
  Sec. 2.4

  	
  Board

  	
  2

  
	
  Sec. 2.5

  	
  Change In Control

  	
  2

  
	
  Sec. 2.6

  	
  Committee

  	
  3

  
	
  Sec. 2.7

  	
  Final Average Compensation

  	
  3

  
	
  Sec. 2.8

  	
  Normal Retirement Benefit

  	
  4

  
	
  Sec. 2.9

  	
  Normal Retirement Date

  	
  4

  
	
  Sec. 2.10

  	
  Participant

  	
  4

  
	
  Sec. 2.11

  	
  Plan Year

  	
  4

  
	
  Sec. 2.12

  	
  PSCo SERP

  	
  4

  
	
  Sec. 2.13

  	
  Retirement Plan

  	
  4

  
	
  Sec. 2.14

  	
  SPS SERP

  	
  4

  
	
  Sec. 2.15

  	
  Successor Employer

  	
  4

  
	
  Sec. 2.16

  	
  Year of Vesting Service

  	
  4

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  PARTICIPATION

  	
   

  
	
   

  	
   

  	
   

  
	
  Sec. 3.1

  	
  Eligibility for Participation

  	
  4

  
	
  Sec. 3.2

  	
  Cessation of Participation

  	
  5

  
	
  Sec. 3.3

  	
  No Guarantee of Employment

  	
  5

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  BENEFITS

  	
   

  
	
   

  	
   

  	
   

  
	
  Sec. 4.1

  	
  Amount of Normal Retirement Benefit

  	
  5

  
	
  Sec. 4.2

  	
  Special Provisions for PSCo and SPS SERP
  Participation

  	
  5

  
	
  Sec. 4.3

  	
  Vesting of Benefit

  	
  6

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  FORM OF
  PAYMENT AND COMMENCEMENT DATE

  	
   

  
	
   

  	
   

  	
   

  
	
  Sec. 5.1

  	
  Normal Form

  	
  6

  
	
  Sec. 5.2

  	
  Reduction for Early Retirement

  	
  6

  
	
  Sec. 5.3

  	
  Optional Forms

  	
  6

  
	
  Sec. 5.4

  	
  Commencement Date

  	
  7

  
	
  Sec. 5.5

  	
  Disability Before Retirement

  	
  7

  
	
  Sec. 5.6

  	
  Death Prior to Termination of Employment

  	
  7

  
	
  Sec. 5.7

  	
  Death After Termination of Employment

  	
  7

  

 

i

 

	
  Sec. 5.8

  	
  Benefit Upon Change In Control

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  ADMINISTRATION

  	
   

  
	
   

  	
   

  	
   

  
	
  Sec. 6.1

  	
  Administration by the Committee

  	
  8

  
	
  Sec. 6.2

  	
  Withholding of Taxes

  	
  8

  
	
  Sec. 6.3

  	
  Unfunded and Unsecured Plan

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
  AMENDMENT
  AND TERMINATION

  	
   

  
	
   

  	
   

  	
   

  
	
  Sec. 7.1

  	
  Amendment

  	
  8

  
	
  Sec. 7.2

  	
  Termination of Plan

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  Sec. 8.1

  	
  Designation of Beneficiary

  	
  9

  
	
  Sec. 8.2

  	
  Benefits May Not Be Assigned or Alienated

  	
  9

  
	
  Sec. 8.3

  	
  Headings

  	
  9

  
	
  Sec. 8.4

  	
  Capitalized Definitions

  	
  9

  
	
  Sec. 8.5

  	
  Gender

  	
  9

  
	
  Sec. 8.6

  	
  Use of Compounds of Word “Here”

  	
  9

  
	
  Sec. 8.7

  	
  Construed as a Whole

  	
  9

  

 

ii

 

XCEL ENERGY INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

 

EXHIBIT A

PARTICIPATING EMPLOYERS

 

 

[This Page left Blank Intentionally]

 

 

XCEL ENERGY INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

 

ARTICLE I

 

GENERAL

 

Sec. 1.1                   Name
of Plan.  The name of this plan
is “Xcel Energy Inc. Supplemental Executive Retirement Plan” (referred to
hereinafter as the “Plan”).

 

Sec. 1.1.1                                           Background.
The Plan is a continuation of the Southwestern Public Service Company
Supplemental Retirement Income Plan (the “SPS SERP”), and the Public Service
Company of Colorado Supplemental Executive Retirement Plan (the “PSCo SERP”).
On January 1, 1998, following the creation of New Century Energies, Inc.
the above-two plans were combined to create the New Century Energies
Supplemental Executive Retirement Plan (the “NCE SERP”). Effective August 21,
2000 following the creation of Xcel Energy Inc., the NCE SERP was renamed and
became known as the Xcel Energy Inc. Supplemental Executive Retirement Plan.
This Plan is designed to amend and restate the PSCo SERP, the SPS SERP and the
NCE SERP, unless stated otherwise herein. 
On December 14, 2004, the Board directed that the Plan be amended
and restated to comply with the requirements of Section 409A of the
Internal Revenue Code. Those changes, along with various administrative and
ministerial changes, have been incorporated into this Plan effective January 1,
2005.

 

Sec. 1.2                   Purpose.  The Plan has been established to provide
supplemental retirement benefits and certain benefits upon disability or death
before retirement to certain select management or highly compensated employees
so that such employees may be retained and their productive efforts encouraged.

 

(a)          An
individual who was a Participant in the NCE SERP on or after January 1,
1998, but who ceased participation prior to the Restatement Effective Date of
this Plan, shall have eligibility and benefits determined and paid pursuant to
the provisions of the NCE SERP, as in effect before this amendment and
restatement of the Plan.

 

(b) An
individual who was a participant in the PSCo SERP or the SPS SERP, but who
ceased participation therein prior to the Effective Date of the NCE SERP shall
have eligibility and benefits determined and paid pursuant to the provisions of
the PSCo SERP or the SPS SERP, whichever was applicable, as in effect on December 31,
1997.

 

Sec. 1.3                   Effective
Date.  The “Effective Date” of
the Plan is January 1, 1998.

 

Sec. 1.4                   Company.  For purposes of this Plan, “Company” means
Xcel Energy Inc., a Minnesota corporation, and any Predecessor or Successor Employer
thereof.

 

Sec. 1.5                   Participating
Employers.  The Company is a “Participating
Employer” in the Plan.  Any subsidiary of
the Company or other affiliated entity which along with the Company is a member
of a controlled group of corporations under Section 414(b) of the
Internal Revenue Code or a group of trades or businesses under common control
under Section 414(c) of the Internal Revenue code (an “Affiliate”)
shall become a Participating Employer in this Plan upon being so designated in
a written action by the Committee, effective as of the date specified by the
Committee, and as indicated on Exhibit A. 
Any Successor Employer to a Participating Employer shall also be a
Participating Employer, unless so designated by the Committee.  A Participating Employer shall cease to be
such effective as of the date 

 

 

the entity ceases to be
an Affiliate or as specified in a written action by the Committee; provided,
however, that such action shall not cause Participants employed by such
employer to forfeit vested benefits accrued prior to such date.

 

Sec. 1.6                   Construction
and Applicable Law.  The Plan is
intended to be an unfunded plan maintained primarily for the purpose of
providing deferred compensation for a select group of management or highly
compensated employees, within the meaning of Sections 201(2), 301(a)(3) and
401(a)(1) of the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”).  The Plan shall be
administered and construed consistent with said intent.  This Plan shall be governed and construed in
accordance with the laws of the State of Minnesota as applied to contracts
executed and to be wholly performed within said state to the extent that such
laws are not preempted by the laws of the United States of America.

 

ARTICLE II

 

DEFINITIONS

 

Sec. 2.1                   Accrual
Percentage. “Accrual Percentage” means the percentage (not in excess of
100%) of a Participant’s Normal Retirement Benefit that has accrued under this
Plan as of any date.  The Normal
Retirement Benefit shall accrue monthly over a period of 20 years commencing
from the Participant’s date of employment with the Participating Employers with
a portion equal to 1/240 of the total benefit accruing at the end of each month
during such 20-year period, provided the individual is employed by a Participating
Employer on the last day of said month. 
If an individual became a Participant on the Effective Date, the
Participant’s Accrual Percentage as of the Effective Date shall be based on a
period of employment that includes all service that was recognized on the day
before the Effective Date for purposes of determining the Participant’s benefit
under the PSCo SERP or the SPS SERP.  The
Committee may, in its sole discretion, specify in the notice of participation
that a particular Participant will be treated as having additional employment
with the Participating Employers for purposes of calculating the Participant’s
Accrual Percentage under this Section.

 

Sec. 2.2                   Actuarial
Equivalent.  “Actuarial
Equivalent” means a benefit of equivalent value determined by the Committee
upon advice of the actuary for the Retirement Plan using the actuarial factors
used for the corresponding type of calculation under the Retirement Plan, as
determined under Appendix C of the Retirement Plan as applicable based on the
corresponding formula under which the Participant’s benefit under the
Retirement Plan is calculated. Actuarial Equivalent lump sum values will be
based on the factors found in Section 4 of Appendix C for participants in
the Traditional Program, Section 5 of Appendix C for Participants in the
Pension Equity Program and Appendix E for Participants in the Account Balance
Program. Actuarial Equivalent annuity values will be based on the factors in Section 7
of Appendix C.

 

Sec. 2.3                   Beneficiary.  “Beneficiary” means the person or persons
designated as such pursuant to the provisions of Sec. 8.1.

 

Sec. 2.4                   Board.  “Board” means the Board of Directors of the
Company.

 

Sec. 2.5                   Change
In Control.  A “Change In Control”
is the occurrence of any of the events described in subsections (a) through
(d) below:

 

(a)                                  Change in Ownership.  When a person, or more than one person acting
as a group acquires stock that, together with stock already owned, possesses
more than 50% of the total fair market value or total voting power of the stock
of the Company.

 

2

 

(b)                                 Change in Effective Control.  Acquisition by any person, (or by
more than one person acting as a group taking into account all acquisitions of
such person or persons during the 12-month period ending on the date of the
most recent acquisition), of shares of thirty-five percent or more of the total
voting power of the outstanding stock of the Company

 

(c)                                  Change in Ownership of a Substantial Portion of a
Corporation’s Assets. A person or more than one person acting as a
group, acquires (or has acquired
during the 12-month period ending on the date of the most recent acquisition by
such person or persons) forty percent or more of the total gross fair market
value of the assets of the Company.

 

(d)                                 Change in Board Members. A majority of the members of the Board
is replaced during a 12-month period by directors who were not endorsed by a
majority of the members of the board prior to the appointment or election of
the new directors.

 

Notwithstanding the
above, any such Change in Control must be interpreted in accordance with the
regulations found in Prop. Treas. Reg. Section 1.409A-2(g)(5), or any
corresponding provisions of final regulations as adopted.

 

Sec. 2.6                   Committee. “Committee” means the Governance,
Compensation and Nominating Committee of the Board or any other committee as
may be appointed by the Board to administer the Plan.  However, no member of the Committee who is
also a Participant in this Plan may participate in or vote on any matter
involving the Plan.

 

Sec. 2.7                   Final
Average Compensation.  “Final
Average Compensation” means the average of the highest three calendar years of
Compensation to which the Participant is entitled from the Participating
Employers during the five calendar year period immediately preceding the
calendar year in which the Participant’s retirement or other separation from
service occurs (or the average of the years during such period in which the
Participant received Compensation, if the Participant received Compensation in
fewer than three such years).  For
purposes of this Section, the Participant’s “Compensation”
for a year is the Participant’s base pay from the Participating Employers as of
December 31st of that year, plus any bonus earned by the Participant for
that year regardless whether such bonus is paid in that year or in the next
year under the Company’s regular annual incentive plan or program (before any
reductions for pre-tax contributions under any Company 401(k) savings plan,
deferred compensation plan or other benefit plan, and before withholding of
taxes).

 

Sec. 2.8                   Normal
Retirement Benefit.  “Normal
Retirement Benefit” means the benefit calculated under Sec. 4.1.

 

Sec. 2.9                   Normal
Retirement Date.  “Normal
Retirement Date” means the first day of the calendar month coincident with or
next following the Participant’s attainment of age 62.

 

Sec. 2.10            Participant.  “Participant” means an individual defined as
such in Sec. 3.1.

 

Sec. 2.11            Plan
Year.  “Plan Year” means the 12-consecutive-month
period commencing January 1 and ending December 31.

 

3

 

Sec. 2.12            Predecessor
Plan.  “Predecessor Plan” means
either the Public Service Company of Colorado Supplemental Executive Retirement
Plan for Key Employees (the “PSCo SERP”) as in effect on August 1, 1997,
the Southwestern Public Service Company Supplemental Retirement Income Plan
(the “SPS SERP”) as in effect on August 1, 1997 and the New Century
Energies Supplemental Executive Retirement Plan (the “NCE SERP”) as in effect
on August 20, 2000, or all three combined.

 

Sec. 2.13            Restatement Effective Date.  “Restatement Effective Date”
is January 1, 2005.

 

Sec. 2.14            Retirement
Plan.  “Retirement Plan” means
the Xcel Energy Inc. Pension Plan, as it may be amended from time to time.

 

Sec. 2.15            Successor Employer.  “Successor Employer” means any entity that
succeeds to the business of the Company or another Participating Employer
through merger, consolidation, acquisition of all or substantially all of its
assets, or any other means.

 

Sec. 2.16            Year
of Vesting Service.  “Year of
Vesting Service” means, except as hereinafter provided, a Plan Year in which an
individual is a Participant in this Plan for all or a portion of the Plan Year,
measured in years and completed months as a Participant (with each completed
month expressed as one-twelfth of a year). 
In calculating Years of Vesting Service, an individual who becomes a
Participant as of the Effective Date shall receive retroactive credit for all
years of participation credited to the Participant for purposes of vesting
under the PSCo SERP or the SPS SERP prior to the Effective Date.
Notwithstanding the foregoing, from August 21, 2000 (date of creation of
Xcel Energy Inc.) until the Restatement Effective Date, Vesting Service was
measured in years and completed months as a Participant for the time such
Participant was an “officer” of the Company, and not for the time the
Participant was in the service in a capacity as something other than as an “officer”
of the Company. Effective on the Restatement Effective Date, Vesting Service
shall again be calculated according to a Participant’s full service (in either
an officer or non-officer capacity).

 

ARTICLE III

 

PARTICIPATION

 

Sec. 3.1                   Eligibility
for Participation.  A select
management or highly compensated employee of the Company or another
Participating Employer shall become a Participant in the Plan upon being
designated as such by the Committee, effective as of the date specified by the
Committee and subject to any additional conditions or limitations specified in
a written action by the Committee.

 

Sec. 3.2                   Cessation
of Participation.  An employee
shall cease to be a Participant on the earliest of (i) the date he or she
ceases to be an employee of an employer that is a Participating Employer, (ii) the
date the Committee revokes his or her status as a Participant, or (iii) the
date he or she fails to meet the requirements of any regulations which may be
issued by the U.S. Department of Labor that define the phrase “select group of
management or highly compensated employees” under ERISA.  Service or earnings after the date the
individual ceases to be a Participant shall be disregarded for purposes of this
Plan, but the individual shall remain entitled to any benefits under this Plan
that have become vested prior to that date.

 

Sec. 3.3                   No
Guarantee of Employment. 
Participation in the Plan does not constitute a guarantee or contract of
employment with the Participating Employers. 
Such participation shall in no way 

 

4

 

interfere with any rights
the Participating Employers would have in the absence of such participation to
determine the duration of the employee’s employment with the Participating
Employers.

 

ARTICLE IV

 

BENEFITS

 

Sec. 4.1                   Amount
of Normal Retirement Benefit. 
Subject to the provisions of Sections 4.2 and 4.3 below, the Normal
Retirement Benefit under this Plan of a Participant who is vested under Sec.
4.3 shall be a monthly amount, calculated in the form of a 240-month certain
annuity with a 50% survivor benefit feature, equal to the amount determined in
subsection (a), less the amounts determined in subsections (b), (c), (d) and
(e)(but shall not be an amount less than zero):

 

(a)                                  One-twelfth
of 55% of the Participant’s Final Average Compensation multiplied by the
Participant’s Accrual Percentage.

 

(b)                                 The
monthly basic pension amount to which the Participant is entitled to receive
under the Retirement Plan in the form of a life-only annuity commencing on the
first day of the month following the later of (i) the Participant’s normal
retirement age under the Retirement Plan, or (ii) the date the Participant’s
retirement or other separation from service with the Participating Employers
occurs.  This amount shall be determined
without regard to the actual benefit paid under the Retirement Plan (and shall
not include or take into account the Retirement Plan’s “Retirement Spending
Account”, “Social Security Supplement” or any other ancillary or supplemental
benefit) or the actual distribution time or optional form of benefit
elected.  If the Participant’s benefit is
in the form of the “Cash Balance” feature under the Retirement Plan, and the
Participant had elected to have all or part of the Participant’s “Retirement
Program Credits” contributed to the Xcel Energy Inc. 401(k) Savings Plan, or
any predecessor or successor to such plan, then the monthly pension determined
under this subsection (b) shall be increased to reflect the amount to
which the Participant would have been entitled under the Retirement Plan if
such credits had instead been allocated to the Retirement Plan.

 

(c)                                  The
monthly basic pension amount to which the Participant is entitled to receive
under the Xcel Energy Inc. Nonqualified Pension Plan, due to Compensation
exceeding the limits outlined by Internal Revenue Code (“IRC”) Section 401(a)(17),
commencing on the first day of the month following the later of (i) the
Participant’s normal retirement age under the Retirement Plan, or (ii) the
date the Participant’s retirement or other separation from service with the
Participating Employers occurs.  This
amount shall be determined without regard to the actual benefit paid under the
Retirement Plan or the actual distribution time or optional form of benefit
elected.

 

(d)                                 The
monthly basic pension amount to which the Participant is entitled to receive
under the Xcel Energy Excess Benefit Plan, due to benefits exceeding the limits
outlined by IRC Section 415, commencing on the first day of the month
following the later of (i) the Participant’s normal retirement age under
the Retirement Plan, or (ii) the date the Participant’s retirement or
other separation from service with the Participating Employers occurs.  This amount shall be determined without
regard to the actual benefit paid under the Retirement Plan or Excess Benefit
Plan or the actual distribution time or optional form of benefit elected.

 

5

 

(e)                                  The
Actuarial Equivalent monthly benefit of the amount determined under Section 9(E) of
the NSP Deferred Compensation Plan (Restated and Amended Through January 1,
1992) (the “grandfathered incentive plan”), or any successor plan, commencing
on the first day of the month following the later of (i) the Participant’s
normal retirement age under the Retirement Plan, or (ii) the date the
Participant’s retirement or other separation from service with the
Participating Employers occurs.  This
amount shall be determined without regard to the actual benefit paid under the
Retirement Plan or the grandfathered incentive plan or the actual distribution
time or optional form of benefit elected

 

Sec. 4.2                   Special
Provisions for PSCo and SPS SERP Participation.  For Participants who participated in the PSCo
SERP or the SPS SERP on the day before the Effective Date, the Normal
Retirement Benefit under Sec. 4.1 shall not be less than the Actuarial
Equivalent (expressed in the form payable under Sec. 4.1) the accrued benefit
determined under the PSCo SERP or the SPS SERP (whichever covered the
Participant on the Effective Date), determined by assuming that the Participant
separated from service on May 1, 2000. 
However, whether the Participant is vested in such benefit shall be
determined pursuant to Sec. 4.3 of this Plan as of the date the Participant’s
actual separation from service occurs.

 

Sec. 4.3                   Vesting
of Benefit.  A Participant’s
Normal Retirement Benefit shall become vested upon the earlier of:

 

(a)                                  The
Participant’s completion of five (5) Years of Vesting Service.

 

(b)                                 The
Participant’s attainment of age 60.

 

Notwithstanding the
foregoing, the Participant shall not be vested in any benefit under this Plan
and the entire benefit shall be forfeited if the Participant’s employment is
terminated by his or her Participating Employer because of the Participant’s
fraud or dishonesty which has resulted in, or is likely to result in, material
economic damage to a Participating Employer, as determined in good faith by the
Committee.  The determination of the
Committee with respect to the Participant’s conduct shall be conclusive,
whether or not there are related judicial or other proceedings and without
regard to the outcome of any such proceeding. 
A Participant who is not vested under this Section on the date his
or her retirement or other separation from service occurs, shall not be
eligible to receive any benefit under this Plan.

 

ARTICLE V

 

FORM OF PAYMENT AND COMMENCEMENT DATE

 

Sec. 5.1                   Normal
Form.  In the event of the
Participant’s retirement or other separation from service (except for death or
disability) with the Participating Employers and all Affiliates therein on or
after attaining age 62, payment of the Participant’s vested Normal Retirement
Benefit shall commence as of the first day of the seventh month following the
date on which such retirement or other separation from service occurs, and will
be paid, except as provided in Section 5.2, in a lump sum. This lump sum
value will be the Actuarial Equivalent of the 240-month certain annuity, with a
50% survivor benefit as determined in Section 4.1. The Actuarial
Equivalent lump sum shall be based on the applicable interest and mortality
rates in effect at commencement of the benefit under this Plan.

 

Sec. 5.2                   Optional
Forms. Payment as an Actuarial Equivalent optional form of benefit to
the lump sum payable under Section 5.1 may be elected by the Participant.

 

6

 

Post-2004.                                           An
optional form of distribution payable on or after January 1, 2005 must
have been elected by the Participant at or prior to the time the Participant
became a Participant under the Plan (or, if later, January 1, 2005, and is
irrevocable). An Actuarial Equivalent life-only annuity and a joint and 50%
survivor annuity are the optional benefit forms available. For this purpose, a
joint and 50% survivor annuity shall mean an annuity payable for the lifetime
of the Participant and continuing thereafter for the lifetime of a contingent
annuitant named by the Participant, if surviving at the Participant’s death, in
a monthly amount equal to 50% of the amount that had been payable to the
Participant. Should the contingent annuitant die before payments to the
Participant have commenced, no alternative contingent annuitant can be named.

 

Sec. 5.3                   Reduction
for Early Retirement.  In the
event the Participant’s retirement or other separation from service (except for
death or disability) from the Participating Employers and all Affiliates
therein occurs prior to his or her attainment of age 62, the Normal Retirement
Benefit will be paid commencing on the first day of the month following the
later of (i) the date the Participant attains age 55, or (ii) the six
month anniversary of the date the separation from service occurred.  The payments shall be paid according to the
form of distribution elected by the Participant, as provided in Section 5.2,
or if no election is made, in a lump sum. 
The amount of the Participant’s Normal Retirement Benefit shall be
reduced by five-twelfths of one percent for each month by which the
commencement date precedes the first day of the month coinciding with or next
following the date the Participant will attain age 62.

 

Sec. 5.4                   Disability
Before Retirement.  If, while
employed by a Participating Employer, a Participant becomes totally and
permanently disabled, as determined by the Committee (or a delegate of the
Committee), , the Actuarial Equivalent of the monthly vested Normal Retirement
Benefit shall be paid in the form of a life-only annuity to the Participant
beginning on the first day of the month following the date of the Participant’s
disability, without any reduction for early commencement of the payments, and
shall continue for the life of such disabled Participant..  For purposes of this Section, “disabled” or “disability”
means, (i) a Participant’s inability to engage in any substantial gainful
activity, by reason of any medically determinable physical or mental impairment
that can be expected to result in death or to last for a continuous period of
not less than twelve months, or (ii)  the Participant has been receiving
short-term disability benefits from the Company for at least three months, as a
result of any medically determinable physical or mental impairment that is
expected to result in death or continue for at least twelve months..

 

Sec. 5.5                   Death
Prior to Termination of Employment.  If
a vested Participant dies while employed by a Participating Employer, the
Participant’s Beneficiary shall receive, beginning within a reasonable period
of time following the Participant’s death (but not later than the later of the
end of the calendar year in which death occurs or the 15th day of
the third month following death), a monthly payment equal to the Actuarial
Equivalent of 50% of the Participant’s Normal Retirement Benefit shall be
payable as a life-only annuity for the life of the Beneficiary.

 

Sec. 5.6                   Death
After Termination of Employment.  If
a vested Participant dies after leaving the employ of the Participating
Employers, (either prior to benefit commencement or after benefits have
commenced), the Participant’s Beneficiary shall receive payments (if any are
due) determined 

 

7

 

according to a
Participant’s benefit distribution form in which the Participant’s benefit was
being or were to be paid, as the case may be. If payments had not begun to the
Participant at the time of death, payments to the Beneficiary shall commence as
soon as administratively feasible after the Participant’s death (but not later
than the later of the end of the calendar year in which death occurs or the 15th
day of the third month following death), except that if payment was to be made
to the Participant in a lump sum and the Participant dies prior to the payment,
the lump sum payment shall be paid to the Participant’s Beneficiary.

 

Sec. 5.7                   Benefit
Upon Change In Control.  If a
Participant’s retirement or other separation from service with the
Participating Employers and all of its Affiliates occurs within 24 months after
a Change In Control, notwithstanding any provision of this Plan to the
contrary, the Participant’s entire benefit hereunder shall be paid within 30
days following the sixth month anniversary of the separation from service in a
single lump sum that is the Actuarial Equivalent of the benefit to which the
Participant was otherwise entitled.

 

ARTICLE VI

 

ADMINISTRATION

 

Sec. 6.1     Administration by the Committee.  The Committee
shall administer the Plan, establish, adopt, or revise such rules and
provisions as it may deem necessary or advisable for the administration of the
Plan.  The Committee shall have full and
absolute discretionary authority to interpret the Plan and interpret and
resolve all factual situations, and the interpretations of the Committee shall
be conclusive. The Committee has delegated the day-to-day administrative duties
to the Total Compensation Group of the Company.

 

(a)                                  Original Claim. 
Any person may, if he or she so desires, file with the Committee a
written claim for benefits under this Plan. 
Within ninety (90) days after the filing of such a claim, the Committee
shall notify the claimant in writing whether the claim is upheld or denied in
whole or in part or shall furnish the claimant a written notice describing
specific special circumstances requiring a specified amount of additional time
(but not more than one hundred eighty (180) days from the date the claim was
filed) to reach a decision on the claim. 
If the claim is denied in whole or in part, the Committee shall state in
writing:

 

(1)                                  the
specific reasons for the denial;

 

(2)                                  the
specific references to the pertinent provisions of the Plan on which the denial
is based;

 

(3)                                  a
description of any additional material or information necessary for the
claimant to perfect the claim and an explanation of why such material or
information is necessary; and

 

(4)                                  an
explanation of the claims review procedure set forth in this section, including the time limits
applicable to such procedure, and a statement of the claimant’s right to bring
a civil action under ERISA section 502(a) following an adverse
determination on review.

 

8

 

(b)                                 Review of Denied Claim. 
Within sixty (60) days after receipt of notice that the claim has been
denied in whole or in part, the claimant may file with the Committee a written
request for a review and may, in conjunction therewith, submit written
comments, documents, records and other information relating to the claim.  Within sixty (60) days after the filing of such
a request for review, the Committee shall notify the claimant in writing
whether, upon review, the claim was upheld or denied in whole or in part or
shall furnish the claimant a written notice describing specific special
circumstances requiring a specified amount of additional time (but not more
than one hundred twenty (120) days from the date the request for review was
filed) to reach a decision on the request for review.  The Committee’s determination shall take into
account all comments, documents, records, and other information submitted by
the claimant relating to the claim, without regard to whether such information
was submitted or considered in the initial benefit determination.  If the claim is denied in whole or in part,
the Committee shall state in writing:

 

(1)                                  the
specific reasons for the denial;

 

(2)                                  the
specific references to the pertinent provisions of the Plan on which the denial
is based;

 

(3)                                  a
statement that the claimant is entitled to receive, upon request and free of
charge, reasonable access to, and copies of, all documents, records, and other
information relevant to the claimant’s claim for benefits; and

 

(4)                                  a
statement of the claimant’s right to bring an action under ERISA section 502(a).
No civil action may be brought against the Company, a Participating Employer
and/or the Plan later than twelve months from the Participant’s receipt of the
final claim denial letter on appeal.

 

(c)                                  General Rules

 

(1)                                  No
inquiry or question shall be deemed to be a claim or a request for a review of
a denied claim unless made in accordance with this claims procedure.  The Committee may require that any claim for
benefits and any request for a review of a denied claim be filed on forms to be
furnished by the Committee upon request.

 

(2)                                  All
decisions on original claims and all decisions on requests for a review of
denied claims shall be made by the Committee, except to the extent the
Committee has delegated its responsibilities under this claims procedure in
which case references in this Section 6.1 to the Committee shall be
treated as references to the Committee’s delegate.

 

(3)                                  All
benefit claim determinations shall include a review of the relevant portions of
the governing Plan documents and a review of any claims made by similarly
situated claimants.  The Committee may,
in its discretion, hold one or more hearings on a claim or a request for a
review of a denied claim.

 

(4)                                  A
claimant may be represented by a lawyer or other representative (at the
claimant’s own expense), but the Committee reserves the right to require the
claimant to furnish written authorization. 
A claimant’s representative shall be entitled, upon request, to copies
of all notices given to the claimant.

 

9

 

(5)                                  The
decision of the Committee on a claim and on a request for a review of a denied
claim shall be served on the claimant in writing.  If a decision or notice is not received by a
claimant within the time specified, the claim or request for a review of a
denied claim shall be deemed to have been denied.

 

(6)                                  In
connection with the review of a denied claim, the claimant or his or her
representative shall be provided, upon request and free of charge, reasonable
access to and copies of, all documents, records, and other information relevant
to the claimant’s claim for benefits.

 

Sec. 6.2                   Withholding
of Taxes.  The benefits payable
under this Plan shall be subject to the deduction of any federal, state, or
local income taxes, FICA, FUTA or other taxes that are required to be withheld
from such payments by applicable laws and regulations.

 

Sec. 6.3                   Unfunded
and Unsecured Plan.  The Plan is
an unfunded and unsecured nonqualified plan for federal income tax, ERISA and
Department of Labor purposes.  No
Participant or Beneficiary shall have any interest whatsoever in any specific
asset of the Company or Participating Employers.  To the extent that any Participant or
Beneficiary acquires a right to receive payments under this Plan, such right
shall be no greater than the right of any unsecured general creditor of the
Participating Employers.

 

ARTICLE VII

 

AMENDMENT AND TERMINATION

 

Sec. 7.1                   Amendment.  The Committee may amend the Plan at any time
(including retroactively) in whole or in part for any reason.  No amendment shall decrease the vested
benefits that have accrued under the Plan prior to the date of such amendment
based on earnings and service prior to such date, but the amendment may
decrease or eliminate future accruals.

 

Sec. 7.2                   Termination
of Plan.  The Committee may
terminate the Plan at any time.  After
such termination, no employee shall become a Participant, no further benefits
shall accrue under the Plan, and each Participant shall become 100% vested in
the benefit accrued prior to the date of termination.  All benefits accrued prior to termination of
the Plan must be distributed to Participants (or Beneficiaries in the event of
death) in a manner consistent with the Participant’s regular distribution
election and the terms of the Plan in effect prior to the date of Plan
termination, or in any event in a manner consistent with Section 409A of
the Code.

 

10

 

ARTICLE VIII

 

MISCELLANEOUS

 

Sec. 8.1                   Designation
of Beneficiary.  Each Participant
under the Plan may name any Beneficiary or Beneficiaries (who may be named
contingently or successively) to whom any benefit under the Plan otherwise due
to the Participant may be paid in case of the Participant’s death before
receiving any or all of such benefit. 
Any subsequent designation shall revoke all prior designations by the
same Participant.  If the Participant
does not designate a beneficiary, or if none of those designated are alive or
existing at the time the Beneficiary is identified as being eligible to receive
a benefit under the Plan, or if the person receiving benefits as the
beneficiary hereunder dies with no contingent beneficiary designated, the
Beneficiary shall be the Participant’s estate.

 

Sec. 8.2                   Benefits
May Not Be Assigned or Alienated. 
Neither a Participant nor any Beneficiary shall have the right to sell,
assign, transfer, encumber or otherwise convey any right to receive any payment
hereunder.  No part of the amounts
payable hereunder shall be subject to seizure or sequestration for the payment
of any debts or judgments owed by a Participant or any other person.
Notwithstanding the foregoing, this section shall not prevent the Company
from complying with a domestic relations order that the Company determines to
be enforceable against the Plan.

 

Sec. 8.3                   Headings.  Headings at the beginning of articles and
sections hereof are for convenience of reference, shall not be considered a
part of the text of the Plan, and shall not influence its construction.

 

Sec. 8.4                   Capitalized
Definitions.  Capitalized terms
used in the Plan shall have their meaning as defined in the Plan unless the
context clearly indicates to the contrary.

 

Sec. 8.5                   Gender.  Any references to the masculine gender
include the feminine and vice versa.

 

Sec. 8.6                   Use
of Compounds of Word “Here”.  Use
of the words “hereof”, “herein”, “hereunder”, or similar compounds of the word “here”
shall mean and refer to the entire Plan unless the context clearly indicates to
the contrary.

 

Sec. 8.7                   Construed
as a Whole.  The provisions of
the Plan shall be construed as a whole in such manner as to carry out the provisions
hereof and shall not be construed separately without relation to the context.

 

Sec. 8.8                   Payment Obligations of Participating Employers. It
is a condition of the Plan, and each Participant expressly agrees, that payment
of distributions from this Plan shall be made only by the Participating
Employer which last employed the Participant before payments commence,
provided, however, that each other employer shall reimburse the paying employer
for the period (if any) that the Participant was employed by such other
employer, in a manner as determined by the Company.

 

11

 

IN
WITNESS WHEREOF, the Company has caused this Plan to be
executed by its duly authorized officer this 14th day of December,
2005.

 

 

	
   

  	
  XCEL
  ENERGY INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   /s/
  Richard C. Kelly

  	
   

  
	
   

  	
   

  	
  Its Chief
  Executive Officer

  

 

12

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