Document:

New Supplemental Retirement Plan with Dawn D. Bugbee dated April 3, 2006

    EXHIBIT
      10.2

    SUPPLEMENTAL
      RETIREMENT PLAN

     

    This
      is
      an Agreement, entered into as of the date set forth on the Summary Schedule
      (the
“Effective Date”), which is attached hereto and made a part hereof, and as
      amended from time to time thereafter, by and between GREEN MOUNTAIN POWER
      CORPORATION (hereinafter the “Company”) and the Executive named on the Summary
      Schedule (hereinafter the “Executive”).

    WHEREAS,
      the Executive has provided valuable services to the Company and the Company
      desires to retain the Executive’s valuable services and to aid in providing
      retirement and death benefits to the Executive and his
      beneficiaries;

    WHEREAS,
      the Executive is a highly compensated managerial employee;

    WHEREAS,
      the retirement and death benefits provided herein constitute an important and
      integral portion of the Executive’s financial and retirement planning;
      and

    NOW
      THEREFORE, the Company and the Executive in consideration of the terms and
      conditions set forth herein hereby mutually covenant and agree as
      follows:

    1.  Age
      65 Benefit.
      The
      Company will pay the Executive a benefit under this Paragraph if the Executive
      remains in the continuous employ of the Company from the Effective Date until
      the date the Executive attains age 65 and a Change in Control (as defined in
      Paragraph 3) has not occurred. The benefit payable under this Paragraph shall
      equal the Executive’s Accrued Benefit (determined in accordance with the Summary
      Schedule as of the Executive’s sixty-fifth birthday and payable as provided in
      this Paragraph). If the value of such
      Accrued Benefit
      is
      $1,000,000 or less, the benefit payable under this Paragraph shall be paid
      to
      the Executive in a single cash payment within thirty days after the Executive’s
      sixty-fifth birthday. If the value of such
      Accrued Benefit
      exceeds
      $1,000,000, the benefit payable under this Paragraph shall be paid as follows:
      (x)
      a single
      cash payment of $1,000,000 will be paid to the Executive within thirty days
      after the Executive’s sixty-fifth birthday and (y)
      the
      balance of the amount payable under this Paragraph, with interest determined
      in
      accordance with the Summary Schedule, shall be paid in equal or nearly equal
      monthly installments for five years beginning on the first day of the month
      coincident with or next following the Executive’s sixty-sixth birthday. If the
      Executive dies after attaining age 65 while in the continuous employ of the
      Company after the Effective Date, but before receiving all of the benefits
      payable under this Paragraph, the balance of such benefits shall be paid by
      the
      Company, on the schedule and in the form described above, to the beneficiaries
      named in the Summary Schedule. 

    2.  
      Termination
      Before Age 65.
      The
      Company will pay the Executive a benefit under this Paragraph if the Executive’s
      employment with the Company and its affiliates terminates (i) before the
      Executive attains age 65, (ii) before a Change in Control (as defined in
      Paragraph 3), (iii) for a reason other than cause (gross misconduct) and (iv)
      after the Executive has completed at least five Years of Service (as defined
      in
      the Summary Schedule). The benefit payable under this Paragraph shall equal
      the
      Executive’s Accrued Benefit (determined in accordance with the Summary Schedule
      as of the Executive’s termination and payable as provided in this Paragraph),
      but subject
      to an actuarial equivalence reduction using a
      five
      percent (5%) interest
      rate (with no mortality assumption) for
      each
      full year that the Executive’s termination date precedes the Executive’s
      sixty-fifth birthday unless the Executive has attained age 59 and completed
      10
      Years of Service as of the Executive’s termination date. If the value
      of
      such Accrued Benefit (after any reduction required by the preceding
      sentence)
      is
      $1,000,000 or less, the benefit payable under this Paragraph shall be paid
      to
      the Executive in a single cash payment on the first day of the month coincident
      with or next following the date that is six months after the Executive’s
      termination of employment. If the value
      of
      such Accrued Benefit (after any reduction required by the second preceding
      sentence)
      exceeds
      $1,000,000, the benefit payable under this Paragraph shall be paid as follows:
      (x)
      a single
      cash payment of $1,000,000 will be paid to the Executive on the first day of
      the
      month coincident with or next following the date that is six months after the
      Executive’s termination of employment and (y)
      the
      balance of the amount payable under this Paragraph, with interest determined
      in
      accordance with the Summary Schedule, shall be paid in equal or nearly equal
      monthly installments for five years beginning on the first day of the month
      coincident with or next following the anniversary of the Executive’s termination
      of employment. If the Executive dies after the commencement of benefit payments
      under this Paragraph but before receiving all of the benefits payable under
      this
      Paragraph, the balance of such benefits shall be paid by the Company, on the
      schedule and in the form described above, to the beneficiaries named in the
      Summary Schedule. If the Executive dies before the commencement of benefits
      under this Paragraph, before a termination of employment for cause (gross
      misconduct), before the Executive has attained age 65 and before a Change in
      Control but after completing at least five Years of Service (as
      defined in the Summary Schedule), then the benefits described in this Paragraph,
      computed as of the Executive’s death, shall be paid by the Company, on the
      schedule and in the form described above, to the beneficiaries named in the
      Summary Schedule.

    3.  Change
      in Control Benefit.
      The
      Company will pay the Executive a benefit under this Paragraph if the Executive
      remains in the continuous employ of the Company from the Effective Date until
      a
      Change in Control. The benefit payable under this Paragraph shall be paid in
      a
      single cash payment, as soon as practicable following the earlier of the first
      day of the month coincident with or next following the date that is six months
      after the Executive’s termination of employment or the Executive’s attainment of
      age 65. The benefit payable under this Paragraph shall be the value of
      the
      Executive’s Accrued Benefit (determined in accordance with the Summary Schedule
      as of the Executive’s termination date or sixty-fifth birthday, as applicable,
      but assuming that Executive had completed an additional two Years of
      Service).
      For
      purposes of this Agreement, the term “Change in Control” has the same definition
      as set forth in the Change of Control Agreement, dated April 3, 2006, between
      the Company and the Executive. If the Executive dies after becoming entitled
      to
      a benefit under this Paragraph but before such benefit is paid, the Company
      will
      pay the benefit under this Paragraph to the Executive’s beneficiaries named in
      the Summary Schedule. The timely payment of such lump sum benefit to the
      Executive (or the Executive’s beneficiaries named in the Summary Schedule, as
      applicable) shall be treated as compliance with the provisions of Paragraph
      10
      hereof.

    4.  Death
      Benefit.
      If the
      Executive dies before the commencement of benefits to the Executive pursuant
      to
      Paragraphs 1, 2 or 3 above, then the Company shall pay to the Executive’s
      beneficiaries an additional benefit of One Hundred Thousand Dollars
      ($100,000.00) which will be paid in a single cash payment within thirty days
      after the Executive’s death.

    5.  Disability;
      Leave of Absence.
      If the
      Executive shall become disabled within the meaning of the long-term disability
      plan of the Company and prior to retirement, the Executive shall be considered
      to be continuing in employment as an executive for as long as such disability
      exists, but not after age sixty-five. The Company may grant the Executive one
      or
      more leaves of absence during which time the Executive shall be considered
      to be
      in the employ of the Company for purposes of this Agreement.

    6.  Executives
      of Subsidiaries.
      For
      purposes of this Agreement, employment by the Company shall include employment
      by a wholly-owned subsidiary of the Company. The transfer of an Executive from
      the Company to any wholly-owned subsidiary of the Company, or from any
      wholly-owned subsidiary to the Company, or from one wholly-owned subsidiary
      to
      another shall not constitute a termination of such Executive’s employment by the
      Company under this Agreement.

    7.  Employment
      and Other Rights.
      This
      Agreement creates no rights whatsoever in the Executive to continue in the
      employ of the Company for any length of time, nor does it create any rights
      in
      the Executive or obligations on the part of the Company except as set forth
      herein.

    8.  Anti-Alienability
      Clause.
      Neither
      the Executive nor any beneficiary shall transfer, assign, pledge, mortgage
      or
      encumber any of the benefits and payments hereunder. The benefits shall not
      be
      subject to seizure, lien, judgment, alimony, levy, garnishment, or attachment.
      In the event that the Executive or any beneficiary shall attempt any of the
      acts
      described in this Paragraph, then the payment of installment payments or
      benefits by the Company shall immediately terminate.

    9.  No
      Effect on Other Plans.
      Nothing
      contained herein shall affect any right or privilege of the Executive with
      regard to other employee plans the Company has, or may have in the
      future.

    10.  Reorganization
      of the Company.
      In
      addition to those rights granted Executive under the Change of Control Agreement
      referenced in Paragraph 3, the Company agrees that it will not merge or
      consolidate with any other company, business, corporation, partnership, or
      organization, and that it will not permit any of its activities to be taken
      over
      unless and until the succeeding or continuing corporation expressly assumes
      all
      rights, duties, privileges and obligations herein set forth. In the event the
      Company fails to comply with this, provision, the Executive or Executive’s
      beneficiary, as the case may be, shall be entitled to benefits equal to the
      Executive’s Accrued Benefit (determined in accordance with the Summary Schedule
      as if the Executive had earned twenty Years of Service). If benefits are payable
      under the above-identified Change of Control Agreement, then the Executive
      shall
      be deemed to have satisfied all requirements for the full vesting of benefits
      under this Agreement on the day prior to termination of employment with the
      Company.

    11.  Unsecured
      Provisions.
      The
      rights of the Executive under this Agreement, and of any beneficiary shall
      be
      solely those of an unsecured creditor of the Company. Any asset acquired by
      the
      Company in connection with any obligation herein shall not be deemed to be
      held
      in trust for the Executive or beneficiary. All such assets remain general,
      un-pledged assets of the Company.

    12.  Communications.
      Any
      notice or communication shall be made in writing and addressed as the case
      may
      be to the principal offices of the Company and the principal residence of the
      Executive. Each party shall notify the other of a change of address of the
      principal office and principal residence.

    13.  Facility
      of Payment.
      If any
      installment or payment is required to be made by the Company under this
      Agreement to any person under a legal disability at the time, then the Company
      may, in its sole discretion, make the payment in any of the following
      ways:

    	A.  	
            Directly
              to the person.

          

     

    	B.  	
            To
              the legal representative of the person.

          

     

    	C.  	
            To
              some near relative of the person, said payment to be used for the latter’s
              benefit.

          

     

    	D.  	
            Directly
              for the payment of expenses relating to the health, maintenance, support
              and education of the person.

          

     

    Any
      such
      payment by the Company shall be a discharge of the obligation to make said
      payment. The Company shall not be liable for making the payment to any of the
      parties enumerated above.

    Arbitration.
      In the
      event of any dispute arising between the parties to this Agreement, the parties
      agree that such controversy shall be settled exclusively by arbitration in
      Burlington, Vermont, in accordance with the rules of the American Arbitration
      Association. Judgment may be entered on the arbitrator’s award in any court
      having jurisdiction. In the event that the Executive prevails and is awarded
      benefits or money damages by the arbitrator, such benefits or damages shall
      be
      equal to one hundred twenty-five (125%) of the benefits or damages otherwise
      due
      under this Agreement; however, if the arbitrator finds that the Company acted
      in
      good faith, such benefits or damages shall only be equal to one hundred percent
      (100%) of the amount due under this Plan.

    Attorney’s
      Fees.
      The
      Company shall pay the Executive or his beneficiaries all costs and expenses,
      including reasonable attorney’s fees and arbitration costs, incurred by them in
      reasonably exercising any of their rights hereunder, or in enforcing any terms,
      conditions, or provisions hereof.

    State
      Law.
      This
      Agreement shall be construed under the laws applicable to agreements made
      entirely within the State of Vermont.

    Revocability.
      This
      Agreement may be revoked or amended in whole or part only by writing signed
      by
      both parties hereto (except as set forth in Paragraph 18 below).

    Amendment.
      Notwithstanding any other provision of this Agreement, in the event of a
      substantial change in the federal income tax laws affecting the economic
      viability of this Plan, the Board of Directors may amend the Plan by freezing
      the Executive’s salary level for purposes of this Plan at the level as of date
      of the amendment, provided, however, that this right to amend shall terminate
      upon a Change in Control.

    Whole
      Agreement.
      This
      writing contains the whole Agreement, with no other understandings or provisions
      other than what is contained herein.

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SUPPLEMENTAL
      RETIREMENT PLAN

     

    SUMMARY
      SCHEDULE

     

    1. Name
      of
      Executive:  Dawn
      D. Bugbee       

     

    2. Address:
       124
      South Bay Circle, Colchester, VT 05446     

     

    3. Date
      of
      Agreement: April
      3, 2006        

     

    
      	
              4.

            	
              Accrued
                Benefit: As of any date the Executive’s Accrued Benefit is equal to the
                amount determined by multiplying (i) 10 times (ii) 33% of the Executive’s
                Salary from the Company for the twelve months immediately before
                the
                termination date times (iii) a fraction. The numerator of the fraction
                is
                the Executive’s Years of Service (not to exceed twenty) and the
                denominator of the fraction is
                twenty.

            

    

     

    
      	
              5.

            	
              Year
                of Service: A year of service recognized for vesting purposes under
                the
                Company’s tax-qualified pension
                plan.

            

    

     

    6. Beneficiaries:
       Jesse
      Bugbee        

     

    
      	
              7.

            	
              Interest:
                Unpaid balance subject to installment payments will be credited with
                interest each month equal to one-twelfth of the average annual yield
                on
                Public Utility Bonds as reported by Moody’s Investors Service and
                published in the issue of “Moody’s Public Utility” that is published
                closest to the 15th
                day of the applicable month. The average annual yield shall reflect
                the
                Company’s debt rating on the date the Executive’s employment with the
                Company and its affiliates
                terminates.

            

    

     

    Executed
      this 3rd
      day of
      April, 2006.

    WITNESS:

    

    

    

    /s/
      Penny J. Collins     s/s
      Dawn D. Bugbee    

    (as
      to
      both)      Executive

    

    

    /s/
      Sharon L. Lucia     GREEN
      MOUNTAIN POWER CORPORATION

    (as
      to
      both)

                                   
      By: /s/
      Christopher L. Dutton   

     
                    Duly
      Authorized Agent

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ACKNOWLEDGMENT
      OF ARBITRATION

     

    The
      parties hereto understand that this Agreement contains an Agreement to
      arbitrate. After signing this document, the parties understand that they will
      not be able to bring a lawsuit concerning any dispute that may arise which
      is
      covered by the arbitration agreement, unless it involves a question of
      constitutional or civil rights. Instead, the parties agree to submit any such
      dispute to an impartial arbitrator.

     

    EXECUTED
      this 3rd
      day of
      April, 2006. 

    IN
      THE
      PRESENCE OF:

    

    

    /s/
      Penny J. Collins     /s/
      Dawn D. Bugbee    

    (as
      to
      both)      Executive

    

    

    /s/
      Sharon L. Lucia     GREEN
      MOUNTAIN POWER CORPORATION

    (as
      to
      both)

                                 
By:
/s/
      Christopher L. Dutton 

                         Duly
      Authorized Agent

    

    Form
      Approved: /s/
      Donald J. Rendall, Jr. 

    General
      CounselForm of Insurance Agreement

    EXHIBIT
      10.3

    FORM
      OF INSURANCE AGREEMENT

    

    This
      is
      an Agreement, entered into as of the date set forth on the Summary Schedule
      which is attached hereto and made a part hereof, by and between GREEN MOUNTAIN
      POWER CORPORATION (hereinafter "Company") and the Executive named in the Summary
      Schedule (hereinafter "Executive").

    WHEREAS,
      the Executive has provided valuable services to the Company and the Company
      desires to retain the Executive's valuable services and to provide the Executive
      and his beneficiaries with death benefits;

    WHEREAS,
      the Executive is a highly compensated managerial employee;

    WHEREAS,
      the benefits provided herein constitute an important and integral portion of
      the
      Executive's financial planning; and

    WHEREAS,
      in reliance on the availability of the benefits provided Executive herein,
      Executive has chosen to forego obtaining benefits from other
      sources.

    NOW
      THEREFORE, the Company and the Executive in consideration of the terms and
      conditions set forth herein hereby mutually covenant and agree as
      follows:

    1. Insurance.
      The
      Company agrees to purchase a life insurance policy on the life of the Executive.
      The Company shall be the owner of the policy and shall be entitled to exercise
      all of the rights and privileges available under the terms of the policy, except
      as hereinafter provided. The Executive's beneficiaries shall be entitled to
      a
      death benefit as set forth on the Summary Schedule attached hereto and hereby
      made a part hereof. The Executive shall designate on the Summary Schedule the
      beneficiaries of the death benefit. The Executive may change the designated
      beneficiaries at any time by giving written notice to the Company.

    2.  Conditions.
      Upon the
      Executive's termination of employment with the Company, this Agreement shall
      automatically terminate and the Executive shall have no further rights hereunder
      except as provided in Section 7 below. If the Executive is no longer classified
      as an executive, the Company may terminate this Agreement in its sole
      discretion. If the Executive shall become disabled within the meaning of the
      long term disability plan of the Company and prior to termination of employment
      with the Company, the Executive shall be considered to be continuing in
      employment as an executive for as long as such disability exists, but not after
      age sixty-five, and the Executive's salary as referred to on the Summary
      Schedule shall be deemed to be the Executive's annual base compensation on
      the
      date of onset of the disability.

    The
      Executive agrees that he already has, or will, answer truthfully any questions
      or requests for information by an insurance company in connection with the
      issuance of a policy upon his life with the Company as the owner thereof. If
      the
      Executive fails to do so, or dies by suicide, and the liability of the insurer
      under said policy or policies, if any, is restricted to any degree as a result
      of such failure or suicide, then the Company shall be released from all of
      its
      obligations under this Agreement.

    3. Premiums.
      The
      premiums for the insurance policy shall be paid by the Company.

    4. Dividends.
      Any
      dividends payable with respect to the policy shall either (1) be applied by
      the
      Company to reduce its premiums hereunder, or (2) used to purchase additional
      paid-up insurance, at the Company's option.

    5. Interests
      of the Parties.
      Upon
      surrender of the aforementioned life insurance policy or upon termination of
      this Agreement prior to the death of the Executive, the Company shall be
      entitled to an amount equal to the cash value of the policy as of the next
      succeeding policy anniversary, plus any final and terminal dividend and refund
      of premium payable by the insurer, decreased by any indebtedness incurred by
      the
      Company against the policy.

    Upon
      the
      death of the Executive prior to a surrender of the policy or a termination
      of
      this Agreement, the Executive's beneficiaries shall be entitled to a death
      benefit payable in the amount set forth on the Summary Schedule attached hereto
      and hereby made a part hereof, which benefit shall be paid by the insurer
      directly to Executive's Beneficiaries. The Company shall be entitled to all
      other proceeds.

    6. Executives
      of Subsidiaries.
      For
      purposes of this Agreement, employment by the Company shall include employment
      by a wholly-owned subsidiary of the Company. The transfer of an Executive from
      the Company to any wholly-owned subsidiary of the Company, or from any
      wholly-owned subsidiary to the Company, or from one wholly-owned subsidiary
      to
      another shall not constitute a termination of such executive's employment by
      the
      Company under this Agreement.

    7. Termination.
      Except
      as provided in Section 2 above, this Agreement may not be terminated. Upon
      the
      Executive's pre-retirement termination of employment with the Company, the
      Executive may, within thirty days after termination, purchase the Company's
      interest in the policy by paying to the Company the aggregate amount of its
      interest in the policy as specified in Section 5 of this Agreement. On receipt
      of such amount, or its equivalent in other property reasonably acceptable to
      the
      Company, the Company shall execute an absolute assignment of the policy to
      the
      Executive, free and clear of all encumbrances. In all other circumstances,
      it is
      understood and agreed that the policy shall become the sole property of the
      Company, which may designate itself as beneficiary of the entire proceeds,
      surrender the policy for cash (which it shall be entitled to retain), or deal
      with it in any other manner that it sees fit.

    8. Definitions.
      The
      following terms as used in this Agreement mean:

     

    
      	 	
              A.

            	
              Premiums:
                The premiums provided for by the
                policy.

            

    

    
      	 	 	 

    

    
      	 	
              B.

            	
              Cash
                Value: The cash value, including guaranteed cash value and value
                of
                insurance additions purchased with dividends as defined in the
                policy.

            

    

    9. Successors
      and Assigns.
      All of
      the Company's rights under this Agreement will pass to and this Agreement will
      be binding upon its successors and assigns. All of the Executive's rights under
      this Agreement will pass to and this Agreement will be binding upon the
      Executive's heirs, beneficiaries, executors and administrators.

    10. Arbitration.
      In
      the
      event of any dispute arising between the parties to this Agreement, the parties
      agree that such controversy shall be settled exclusively by arbitration in
      Burlington, Vermont, in accordance with the rules of the American Arbitration
      Association. Judgment may be entered on the arbitrator's award in any court
      having jurisdiction. In the event that the Executive or his beneficiaries
      prevail and are awarded benefits or money damages by the arbitrator, such
      benefits or damages shall be equal to one hundred twenty-five percent (125%)
      of
      the amount otherwise due under this Agreement; however, if the arbitrator finds
      that the Company acted in good faith, such benefits or damages shall only be
      equal to one hundred percent (100%) of the amount due under this
      Agreement.

    11. Attorney's
      Fees. The
      Company shall pay the Executive or his beneficiaries all costs and expenses,
      including reasonable attorney's fees and arbitration costs, incurred by them
      in
      reasonably exercising any of their rights hereunder, or enforcing any terms,
      conditions, or provisions hereof.

    12. State
      Law. This
      Agreement shall be construed under the laws applicable to agreements made
      entirely within the State of Vermont.

    13. Whole
      Agreement.
      This
      writing contains the whole Agreement, with no other understandings or provisions
      other than what is contained herein.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ACKNOWLEDGEMENT
      OF ARBITRATION

    

    The
      parties hereto understand that this Agreement contains an Agreement to
      arbitrate. After signing this document, the parties understand that they will
      not be able to bring a lawsuit concerning any dispute that may arise which
      is
      covered by the arbitration agreement, unless it involves a question of
      constitutional or civil rights. Instead, the parties agree to submit any such
      dispute to an impartial arbitrator.

    EXECUTED
      as of this ___ day of     

    

    IN
      THE
      PRESENCE OF: 

    

                                                    

    (as
      to
      both)      Executive

    

                       GREEN
      MOUNTAIN POWER

    (as
      to
      both)      CORPORATION

     

                                By:       

                        Duly
      Authorized Agent

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    INSURANCE
      AGREEMENT

     

    SUMMARY
      SCHEDULE

    

    1. Name
      of Executive: 

    2. Address: 

    3. Date:
        

    4. Name
      of Insurance Company: 

    5. Policy
      Number: 

    6. Death
      Benefits: 

    7. Beneficiaries: 

     

    In
      the
      event there are no surviving beneficiaries, then the benefit shall be paid
      to
      the Executive's estate.

    

    Dated
      at
      Colchester, Vermont, this ___ day of      .

    

    WITNESS:

     

    
                                                      

      (as
        to
        both)      Executive

      

                        GREEN
        MOUNTAIN POWER

      (as
        to
        both)      CORPORATION

       

                                 By:       

                          Duly
        Authorized Agent

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    GROUP
      LIFE AGREEMENT

    

    In
      consideration for Green Mountain Power Corporation's execution of an Insurance
      Agreement with me, I hereby agree not to participate in any other Green Mountain
      Power Corporation group-life insurance programs and consent to the termination
      of any such participation as of the date insurance is obtained under the
      Insurance Agreement, except that I may participate in the Corporation's
      group-life insurance programs if I pay all premiums charged on account of such
      participation.

    

    Dated
          .

    

                                                            

    Executive

    

    

    Form
      Approved:      

    General
      Counsel

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